Capital One reported $3.5 billion in net income, up 17% from the prior quarter

Capital One $COF Financial reported third-quarter net income of $3.5 billion, equal to $5.61 for each diluted common share, on Tuesday. That compares with profit of $3.0 billion, or $4.73 a share, in the second quarter and $3.2 billion, or $4.83 a share, in the year-earlier third quarter.

Adjusted net income, a non-GAAP measure, was $6.69 per diluted share, the company said. The adjusting items were $483 million in acquisition amortization expenses, $338 million in Discover $DFS integration expenses and $47 million in Brex integration expenses, all before tax. They reduced earnings by $0.60, $0.42 and $0.06 per share, respectively.

Total net revenue rose 3% from the second quarter to $16.3 billion. Total non-interest expense fell 2% to $8.9 billion, with marketing expense down 4% and operating expense down 2%. Pre-provision earnings came in at $7.5 billion, a 10% gain. Net interest margin was 8.41%, up 40 basis points.

The provision for credit losses was $2.9 billion, down $73 million. Net charge-offs were $3.1 billion, and the company released $225 million from its loan loss reserves.

Loans held for investment at the end of the quarter totaled $462.5 billion, up $5.4 billion, or 1%. Credit card loans rose $952 million to $276.4 billion, consumer banking loans rose 4% to $94.0 billion and commercial banking loans rose 1% to $92.1 billion. Total deposits ended the quarter at $480.7 billion, down $3.6 billion, or 1%. The common equity Tier 1 capital ratio was 13.8% as of Sept. 30.

"The Discover integration continues to go well and we're making good progress on delivering the expected synergies," Richard D. Fairbank, Capital One's founder, chairman and chief executive officer, said in a statement. "We continue to invest to deliver sustained growth and value creation over the long-term."

Capital One will discuss the results on a conference call at 5:00 p.m. ET on Tuesday. A webcast replay will remain accessible via Capital One's website until Nov. 3.