Capital One Financial Corp at Morgan Stanley US Financials, Payments & CRE Conference Transcript

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

Question: Jeffrey Adelson - Morgan Stanley - Analyst : Let's get it underway. So a big question on everybody's mind, Rich. You just closed the Discover deal three weeks ago. Now that you've been able to finally dig in, are you as excited as you were when you first announced the deal about six months ago? And maybe you can give us an update on the strategic vision of the combined companies and how that looks as you sit here today.

Question: Jeffrey Adelson - Morgan Stanley - Analyst : Still excited about the deal. Synergies are still on track here. Any sort of early learnings as you look into the hood here? And as it relates to your network aspirations, the debit side makes a lot of sense, but you've also said you want to be more surgical on the credit card and international side. So, what's your strategic approach going to look like on the international side? What's the time line to think about? And how much investment spend? Or how should we be thinking about the spend that's required to do that?

Question: Jeffrey Adelson - Morgan Stanley - Analyst : And as it relates to moving away from the network as it relates to the card issuing side, you talked about wanting to retain Discover as a brand here, but how are you thinking about potentially repositioning that product, that marketing and the go-to-market there? How do we think about the overlap between your existing base?

Question: Jeffrey Adelson - Morgan Stanley - Analyst : And one area you've been able to make strong inroads in recently is premium card, top of the market credit card. How do you do so well compared to the competition, making inroads there? And how does owning a network maybe accelerate that journey from here?

Question: Jeffrey Adelson - Morgan Stanley - Analyst : That's great. I mean I think we could spend the entire time talking about the deal here and the benefits, but maybe let's switch a little bit and focus on the consumer here. So about 1.5 years ago, you were one of the first to call out stabilizing consumer credit trends. More recently, this trend has turned into outright improvement. We've heard more recently of some uncertainty out there and the confidence data, you have tariffs out there. Can you maybe just tie it all together and talk about what you're seeing from the consumer?

Question: Jeffrey Adelson - Morgan Stanley - Analyst : One other topic on tariffs is auto and used car pricing. So you talked a lot order about a pull forward in auto purchases here. The consumers are trying to get ahead of that, but that's also a meaningful benefit to your back book. So how do we balance that against maybe the affordability impacts and the forward look and how that is driving your decision to lean in here? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. JUNE 10, 2025 / 6:30PM, COF.N - Capital One Financial Corp at Morgan Stanley US Financials, Payments & CRE Conference

Question: Jeffrey Adelson - Morgan Stanley - Analyst : Okay. Great. Maybe we can get Jeff involved a little bit here. So stress tests are coming out in a few weeks. Can you talk a little bit more about the submission you've made? Was that pro forma for the deal? And how should we be thinking about the opportunity to return capital? Is your right target capital level 11% CET1? What's the time line, et cetera, to get down there?

Question: Jeffrey Adelson - Morgan Stanley - Analyst : Okay. Great. Pretty clear. And Rich, one last question for you. Technology AI, I know this is near and dear to your heart. So how important is AI as a part of the Capital One culture? What use cases of AI have you implemented so far internally? Can you give us any examples of how your advanced tech is giving you an edge in real-time credit monitoring, things like that?

Question: Jeffrey Adelson - Morgan Stanley - Analyst : Rich, we could talk all day about AI, but I think we have to end it here. So thank you for joining us. Rich and Jeff. Appreciate it. .