Discover Financial Services has announced a
net income of $1.7bn for the nine months to end-August – compared
with just $415m for the same period last year.
Pre-tax income more than tripled to
$2.7bn.
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Net interest income for the year increased by
5% from a year ago.
The net interest margin seeing an rose by
11bps increase to 9.21%.
David Nelms, chairman and CEO of Discover
said:
“We achieved record results again this quarter
as a result of further improvements in credit performance and
record sales volume.”
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By GlobalDataTotal Discover card volume soared by 10%
year-on-year to 81.1bn in the nine months to end-August, while
total Discover card sales volume increased by 8% to $75.1bn.
Provisions for loan losses slumped by 75%
year-on-year to $694m with the credit card delinquency rate
reaching a record low of 2.43%.
The slump in delinquency rates follows a
general trend in the US, where national credit card delinquencies
reached a near-record low of 0.6% BY WHEN.
The card network generated a $2.6bn pre-tax
income from direct banking in the nine months to the end of August
– more than four times the amount it posted for the same period
last year.
Pre-tax income from payment services soared
13% year-on-year to $124m.
Total transactions processed on the company’s
networks, Discover and PULSE, amounted to $4.2bn, representing a
16% increase from a year ago.
Discover had total assets of 65.7bn at the end
of August, 9% higher than last year.
