financetom
Business
financetom
/
Business
/
Discover Reports Better-Than-Expected Q3 Results, Higher Delinquency Rates YOY: Details
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Discover Reports Better-Than-Expected Q3 Results, Higher Delinquency Rates YOY: Details
Oct 17, 2024 1:59 PM

Discover Financial Services ( DFS ) reported its third-quarter financial results after Wednesday's closing bell. Here's a look at the details from the report. 

The Details: Discover reported quarterly earnings of $3.69 per share, which beat the analyst consensus estimate of $3.44. Quarterly revenue came in at $4.453 billion, which beat the analyst consensus estimate of $4.346 billion and is a 10.11% increase over sales of $4.044 billion from the same period last year.

The company reported third-quarter 30 or more days delinquency rates of 3.84%, up from 3.41% from the same quarter last year and 90 or more days delinquency rates of 1.87%, up from 1.57%.

Read Next:  Amazon Analyst Expects Q3 Earnings With Revenue Growth, Margin Expansion, Relative Stable E-Commerce Demand

Digital Banking pretax income of $1.2 billion for the quarter was $401 million higher than the prior year period, reflecting increased revenue net of interest expense and a lower provision for credit losses partially offset by increased operating expenses.

Total loans ended the quarter at $127.0 billion, up 4% year-over-year and down 1% sequentially. Credit card loans ended the quarter at $100.5 billion, up 3% year-over-year. Personal loans increased $879 million, or 9%. Private student loans were down 19% driven by the first closing of the private student loan portfolio sale.

Net interest income for the quarter increased $333 million, or 10% year-over-year, driven by higher average receivables and net interest margin expansion.

Net interest margin was 11.38%, up 43 basis points versus the prior year.

Card yield was 16.23%, up 80 basis points from the prior year primarily driven by a lower promotional balance mix and lower payment rates, partially offset by higher interest charge-offs.

Payment Services pretax income of $84 million was largely flat year-over-year. Payment Services volume was $100.5 billion, up 9% from the prior year period.

Discover Network volume was down 4% reflecting a slowdown in Discover card sales volume.

PULSE dollar volume was up 14% driven by increased debit transaction volume.

Diners Club volume was up 7% year-over-year reflecting strength across most regions.

“Discover’s financial performance remained strong in the third quarter, benefiting from increased net interest margin, modest loan growth, and some credit improvement,” said Michael Shepherd, Discover’s Interim CEO and President. “We are pleased to have completed the first of four student loan sale closings, which will simplify our business. Additionally, we continued to make good progress on our risk management and compliance capabilities.”

DFS Price Action: According to Benzinga Pro, Discover Financial shares are down 0.64% after-hours at $146.58 at the time of publication Wednesday.

Read Also: 

Tesla’s Optimus Robots Were Remotely Assisted By Humans At ‘We, Robot’ Event

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Japan's union group Rengo announces biggest wage hikes on record
Japan's union group Rengo announces biggest wage hikes on record
Mar 22, 2024
TOKYO (Reuters) -Japanese firms have agreed to raise pay by 5.25% this year, the biggest rise under comparable data since 2013, the country's largest union group Rengo confirmed on Friday. The results of the closely-watched wage negotiations are announced in several stages, in which the blue-chip firms are first to wrap up their talks in mid-March. The second announcement on...
Hutchmed Begins Registration Stage for Phase 2/3 Trial of Investigational Autoimmune Disorder Drug
Hutchmed Begins Registration Stage for Phase 2/3 Trial of Investigational Autoimmune Disorder Drug
Mar 22, 2024
05:04 AM EDT, 03/22/2024 (MT Newswires) -- Hutchmed ( HCM ) said late Thursday it has started the registration stage for a phase 2/3 clinical trial of investigational drug sovleplenib for adult patients with warm antibody autoimmune hemolytic anemia in China. The move follows positive data from the proof-of-concept phase 2 stage of the trial and a consultation with the...
Cathie Wood's ARK Invest scoops up nearly 10,000 Reddit shares in debut
Cathie Wood's ARK Invest scoops up nearly 10,000 Reddit shares in debut
Mar 22, 2024
(Reuters) - Popular investor Cathie Wood's ARK Invest bought nearly 10,000 shares of Reddit ( RDDT ) in the social media platform's strong market debut on Thursday, an email from the asset manager showed. A total of 9,982 shares of the loss-making company was added to ARK Next Generation Internet ETF ( ARKW ) and ARK Fintech Innovation ETF (...
Once a beacon of stability, Vietnam to name third president in a year
Once a beacon of stability, Vietnam to name third president in a year
Mar 22, 2024
HANOI, March 22 (Reuters) - Communist-ruled Vietnam is seeking its third president in little more than a year after the resignation of Vo Van Thuong, who was only elected last year after the sudden dismissal of his predecessor. With accumulated foreign direct investment higher than its gross domestic product, Vietnam's stability is crucial to multinationals with large operations in the...
Copyright 2023-2025 - www.financetom.com All Rights Reserved