CAPITAL ONE FINANCIAL CORP

Table 5 displays the components of non-interest expense for the second quarter and first six months of 2026 and 2025.

Table 5: Non-Interest Expense

(1)Includes expenses of $94 million and $76 million related to our deferred compensation plan investments for the second quarter and first six months of 2026, respectively, and expenses of $57 million and $41 million related to our deferred compensation plan investments for the second quarter and first six months of 2025, respectively. These amounts have corresponding offsets from investments in other non-interest income.

Non-interest expense increased by $2.1 billion to $9.0 billion inthe second quarter of 2026 compared tothe second quarter of 2025 and increased by $4.6 billion to $17.5 billion in the first six months of 2026 compared to the first six months of 2025 primarily driven by the addition of Discover and higher acquisition amortization expenses.

Integration Expenses

Discover integration expenses remained substantially flat at $298 million in the second quarter of 2026 compared to the second quarter of 2025. Discover integration expenses increased by $304 million to $713 million in the first six months of 2026 compared to the first six months of 2025 primarily driven by higher salaries and associate benefits, which are included within operating expense in our consolidated statements of income and within the Other category for business segment results. Since the announcement of the Transaction in the first quarter of 2024, we have incurred $2.1 billion of Discover integration expenses as of June 30, 2026.

In the second quarter and first six months of 2026, we incurred $96 million of integration expenses related to the Brex acquisition, primarily driven by salaries and associate benefits and professional services, which are included within operating expense in our consolidated statements of income and within Domestic Card for business segment results.

Income Taxes

We recorded an income tax expense of $798 million (20.9% effective income tax rate) and $1.3 billion (20.2% effective income tax rate) in the second quarter and first six months of 2026, respectively, compared to an income tax benefit of $1.7 billion (28.1% effective income tax rate) and $1.3 billion (31.9% effective income tax rate) in the second quarter and first six months of 2025, respectively. The difference in our tax provision and effective tax rate was primarily driven by the $8.8 billion initial allowance for credit losses for loans acquired in the Discover acquisition in the second quarter of 2025.

Our effective tax rate on income from continuing operations varies between periods due 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.