Discover Financial Services (NYSE:DFS) reported its second-quarter financial results on Wednesday. Here's a look at the key figures from the report.
The Details: Discover reported GAAP earnings of $6.06 per share, beating the estimate of $3.07 per share, and quarterly Net Interest Income (NII) of $3.524 billion.
Net interest income for the quarter increased by $347 million, or 11% year-over-year, driven by higher average receivables and net interest margin expansion. Net interest margin was 11.17%, up 11 basis points versus the prior year.
Card yield was 15.99%, up 85 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. Interest expense as a percent of total loans increased 71 basis points from the prior year period, primarily driven by higher funding costs.
Digital Banking pretax income of $1.8 billion for the quarter was $694 million higher than the prior year period reflecting a lower provision for credit losses and increased revenue net of interest expense partially offset by increased operating expenses.
Total loans ended the quarter at $127.6 billion, up 8% year-over-year, and up 1% sequentially. Credit card loans ended the quarter at $100.1 billion, up 7% year-over-year. Personal loans increased $1.2 billion, or 13%. Private student loans were down 1%, and were classified as held-for-sale as of June 30, 2024.
The total net charge-off rate was 4.83%, up 161 basis points from the prior year period and down 9 basis points from the prior quarter reflecting continued seasoning of recent vintages.
"Discover's fundamental operating performance remains very good, as shown by our loan growth, margin expansion and higher non-interest revenue in the quarter," said Michael Shepherd, Discover's Interim CEO and President.
"Additionally, we advanced several critical initiatives including entering into an agreement to sell our student loan assets, favorably resolving litigation in our Payment Services segment, and entering into a class action settlement agreement for the card misclassification matter."
Discover will host a conference call to discuss its second-quarter results at 8:00 a.m. ET Thursday morning.
DFS Price Action: According to Benzinga Pro, Discover Financial shares are up 5.01% after-hours at $148.49 at the time of publication Wednesday.
Discover Financial Services(紐約證券交易所代碼:DFS)週三公佈了第二季度財務業績。以下是報告中的關鍵數據。
詳情:Discover公佈的每股GAAP收益爲6.06美元,超過預期的每股3.07美元,季度淨利息收入(NII)爲35.24億美元。
受平均應收賬款增加和淨利率擴大的推動,本季度的淨利息收入增加了3.47億美元,同比增長了11%。淨利率爲11.17%,比上年增長11個點子。
信用卡收益率爲15.99%,較上年增長85個點子,這主要是由較低的促銷餘額組合和較低的還款率所推動,但部分被較高的利息扣除所抵消。利息支出佔貸款總額的百分比比上年同期增加了71個點子,這主要是由於融資成本的上漲。
數字銀行本季度稅前收入爲18億美元,比上年同期增長6.94億美元,這反映了信貸損失準備金的減少以及扣除利息支出的收入增加,部分被運營支出的增加所抵消。
本季度末貸款總額爲1276億美元,同比增長8%,環比增長1%。本季度末信用卡貸款爲1001億美元,同比增長7%。個人貸款增加了12億美元,增長了13%。私人學生貸款下降了1%,截至2024年6月30日被歸類爲待售貸款。
總淨扣除率爲4.83%,比上年同期上升161個點子,比上一季度下降9個點子,這反映了近年來的持續改善。
Discover臨時首席執行官兼總裁邁克爾·謝潑德表示:“正如我們在本季度的貸款增長、利潤擴張和非利息收入的增加所表明的那樣,Discover的基本經營業績仍然非常好。”
“此外,我們還推進了多項關鍵舉措,包括簽訂出售學生貸款資產的協議,有利地解決支付服務領域的訴訟,以及就信用卡錯誤分類問題達成集體訴訟和解協議。”
Discover將於美國東部時間週四上午8點舉行電話會議,討論其第二季度業績。
DFS價格走勢:根據Benzinga Pro的數據,截至週三發佈時,Discover Financial股價盤後上漲5.01%,至148.49美元。