Capital One Financial Corp at Barclays Global Financial Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Terry Ma - Barclays Services Corp - Analyst : Okay, great. So turning to credit. Delinquencies in the domestic card for both legacy Capital One and legacy Discover declined for eight straight months year over year. So where are we on credit? And as we look forward, how long can this improving year-over-year trajectory continue for?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. That's helpful color. Maybe we'll just touch on auto for a second. Delinquencies there have been declining year-over-year. Capital One was one of the earlier ones to tighten. So what are you seeing in auto credit now? And how do you approach kind of growth and underwriting going forward? And how does tariffs kind of impact your thinking on auto?

Question: Terry Ma - Barclays Services Corp - Analyst : Okay, got it. Maybe we'll switch gears and talk about the Discover acquisition. The network opportunity is the key benefit of the deal. You targeted $175 billion of debit and credit volume to kind of move over and you've identified revenue synergies from that. So can you just update us on how that process is coming along? And what is the expected completion date for that volume on migration? And then looking out longer term, how should investors think about the timeline to start moving over the rest of cost credit volumes?

Question: Terry Ma - Barclays Services Corp - Analyst : Okay. Got it. That's helpful. So let's touch on integration. There was a lot of focus on the last earnings call around the acquisition and integration expenses. You called out those expenses were going to be somewhat higher than the initial $2.8 billion guide. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 6:00PM, COF.N - Capital One Financial Corp at Barclays Global Financial Services Conference So first, any way to kind of quantify what that means. And then on the synergy side, you guided to $1.3 billion of operating expense synergies and $100 million of marketing synergies. How are those tracking to date?

Question: Terry Ma - Barclays Services Corp - Analyst : Okay. Got it. So as we look out longer term, how do we think about the cost and timeframe of the incremental investment opportunities that you, Rich, talked about on the last earnings call?

Question: Terry Ma - Barclays Services Corp - Analyst : Great. Helpful color. So let's turn to earnings power. You had initially guided to 15% adjusted EPS accretion by 2027 when you first announced the deal. On the second-quarter earnings call, you indicated the power of the combined entity is consistent with what was assumed at deal announcement. So how should investors interpret those two comments and think about the earnings power of the business?

Question: Terry Ma - Barclays Services Corp - Analyst : Okay. And maybe this is a good point to just pause for the 2 ARS questions I have. I think the first one is queued up already, so you can just register your responses. Capital One will earn adjusted EPS of what in 2027? First Choice, $21 and $24 per share, $24 to $27 per share, three $27 to $30 per share or four, $30-plus per share. So 42% are at $24 to $27 per share and 33% at $27 to $30 per share. So next question. And then over the next year, would you expect your position in Cap One to increase, decrease or three, stay the same? So pretty bullish 50% increase, 42% stay the same. So pretty good signal. Let's maybe just talk about capital. So Capital One is in a position of excess capital at 14% CET1. It's been a few months since you closed the acquisition. So maybe, Andrew, can you update us on the latest thoughts on target capital levels and timing of capital return?

Question: Terry Ma - Barclays Services Corp - Analyst : Great. That was helpfulis in a very good place. You ask, you know, where does it go from here? I just think we see the, in some ways probably the delayed charge-off effect running its course. I'm not, but the other thing is we really have to have a watchful eye on the uh issues of inflation uh and, uh you know, tariffs and uh some of the sort of job creation issues that I would hesitate to \We have about three minutes left. I'll just open it up to questions from the audience, if there are any. We have one in the front over here. Unidentified Participant You talked about looking to raise international acceptance of Discover. I think domestic acceptance is 99% plus. Can you tell us where international acceptance is now and where you hope to get it in, say, three years and how much that might cost? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 6:00PM, COF.N - Capital One Financial Corp at Barclays Global Financial Services Conference

Question: Terry Ma - Barclays Services Corp - Analyst : Okay. I think we're right out of time. So thank you.