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Great Places to Work & Acquisition Impact

Key financial assumptions • Standalone Modeled Forecasts Capital • Loan Credit Marks Fair Value Marks • Goodwill and Intangibles Acquisition and Integration Expenses • Consensus estimates for Capital One in 2024/2025 and extrapolated 2026+ • • • Consensus estimates for Discover in 2024/2025 and extrapolated 2026+, with two adjustments: о Assumes the exit of student lending in 2024 о Assumes 2024 charge-offs are consistent with consensus and that 2025 charge-offs are similar to 2024 before improving over time Anticipate 13.9% pro forma combined CET1 at close; Discover to suspend share repurchases through closing Assumes consensus pro forma CET1 of 12.5% in 2026+ $8.6 billion (7.3% of Discover loans), equal to Discover allowance at close¹ о $2.9 billion or 33% allocated to purchase credit deteriorated (PCD) о $5.7 billion or 67% allocated to non-PCD PCD credit mark will be established as an allowance through purchase accounting Non-PCD credit mark accreted into earnings over an estimated 2-3 years • $7.3 billion loan rate mark amortizing over an estimated 2-3 years • • • $0.2 billion of other rate marks amortizing over the lives of the related instruments (securities, time deposits, and long-term debt) $10.1 billion purchased credit card relationships or 10.0% of Discover card receivables; to be amortized on an accelerated basis over 7 years $0.3 billion core deposit intangible or 0.6% of Discover core deposits $3.5 billion of goodwill • $2.8 billion pre-tax . Substantially all expected to be incurred within approximately 2 years of closing Note: 1) Net of acquired loans previously charged off by Discover Source: Capital One management 21
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