COF: May Monthly Credit Data - Consistent Credit and Growth Trends

Research evidence excerpt

COF: May Monthly Credit Data - Consistent Credit and Growth Trends

EQUITY RESEARCH QUICK TAKE

RBC Capital Markets, LLC

Jon G. Arfstrom (Associate Director of U.S.

Research)

Karl Shepard, CFA (Analyst)

Taylor Irwin, CFA (Associate)

June 15, 2026

Capital One Financial Corp.

May Monthly Credit Data - Consistent Credit and Growth Trends

NYSE: COF | USD 184.73 | Sector Perform | Price Target USD 235.00

Sentiment: Neutral

Capital One reported May monthly balances, charge-offs, and delinquency metrics on a consolidated basis for domestic credit

cards, which includes the Discover portfolio due to the May 2025 closing of the acquisition. The company also reported monthly

data for their auto portfolio.

Core card credit metrics remain stable. May domestic credit card net charge-offs were 4.82% and decreased 12 bps from 4.94% in

the prior month and decreased 88 bps from 5.70% (standalone COF) in the year ago month. May domestic credit card delinquencies

were 3.33% and decreased 11 bps from 3.44% in the prior month and decreased 52 bps from 3.85% (standalone COF) in the

year ago month. Overall, we see this month’s credit results as reflecting improving trends, with some typical seasonality impacts.

Although the combination of the two portfolios makes some comparisons and analysis more challenging, we generally see the

portfolio as showing improvement on a year-over-year basis and we are encouraged by the credit trends. We are also comfortable

with the near-term expectations and management has recently indicated they see credit as now tracking with typical seasonality

or a slightly better.

Auto credit metrics also remain stable. May auto net charge-offs were 1.45% and increased 25 bps from 1.20% in the prior month

and increased 41 bps from 1.04% in the year ago month.