CAPITAL ONE FINANCIAL CORP
For the period ended Mar 31, 2026. Filed May 7, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 7, 2026
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Non-Interest Expense
Table 5 displays the components of non-interest expense for the first quarters of 2026 and 2025.
Table 5: Non-Interest Expense
| Three Months Ended March 31, | ||
|---|---|---|
| (Dollars in millions) | 2026 | 2025 |
| Operating expense: | ||
| Salaries and associate benefits(1) | $3,671 | $2,546 |
| Occupancy and equipment | 867 | 615 |
| Professional services | 585 | 437 |
| Communications and data processing | 496 | 399 |
| Amortization of intangibles | 492 | 16 |
| Other non-interest expense: | ||
| Bankcard, regulatory and other fee assessments | 182 | 65 |
| Collections | 244 | 108 |
| Other | 430 | 514 |
| Total other non-interest expense | 856 | 687 |
| Total operating expense | $6,967 | $4,700 |
| Marketing | 1,497 | 1,202 |
| Total non-interest expense | $8,464 | $5,902 |
(1)Includes benefits of $18 million and $16 million related to our deferred compensation plan investments for the first quarters of 2026 and 2025, respectively. These amounts have corresponding offsets from investments in other non-interest income.
Non-interest expense increased by $2.6 billion to $8.5 billion inthe first quarter of 2026 compared to the first quarter of 2025 primarily driven bythe addition of Discover, amortization of the intangibles recognized in the Transaction and higher Discover integration expenses.
Discover integration expenses increased by $305 million to $415 million in the first quarter of 2026 primarily driven by higher salaries and associate benefits, which are included within operating expense in our consolidated statements of income. Since the announcement of the Transaction in the first quarter of 2024, we have incurred $1.8 billion of Discover integration expenses as of March 31, 2026.
| 14 | Capital One Financial Corporation (COF) |
Income Taxes
We recorded an income tax expense of $518 million (19.2% effective income tax rate) and $325 million (18.8% effective income tax rate) in the first quarters of 2026 and 2025, respectively. Our effective tax rate on income from continuing operations varies between periods due, in part, to the impact of changes in pre-tax income and changes in tax credits, tax-exempt income and non-deductible expenses relative to our pre-tax earnings.
We provide additional information on items affecting our income taxes and effective tax rate in “Part II—Item 8. Financial Statements and Supplementary Data—Note 16—Income Taxes” in our 2025 Form 10-K.
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