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Mar 31, 2022

Discover Q1 2022 Earnings Report

Discover reported a decrease in net income and diluted EPS for Q1 2022, while total loans increased.

Key Takeaways

Discover Financial Services reported a net income of $1.2 billion, or $4.22 per diluted share, for the first quarter of 2022, compared to $1.6 billion, or $5.04 per diluted share, for the first quarter of 2021. The company saw growth in total loans and continued strong credit performance.

Net income for Q1 2022 was $1.2 billion, or $4.22 per diluted share, down from $1.6 billion, or $5.04 per diluted share, in Q1 2021.

Total loans ended the quarter at $93.5 billion, up 8% year-over-year.

The Board of Directors approved a new $4.2 billion share repurchase program.

The Board of Directors increased the quarterly dividend by 20% to $0.60 per share.

Total Revenue
$2.9B
Previous year: $2.8B
+3.8%
EPS
$4.22
Previous year: $5.04
-16.3%
Cash and Equivalents
$9.63B
Previous year: $20.3B
-52.7%
Free Cash Flow
$1.68B
Previous year: $1.47B
+14.7%
Total Assets
$107B
Previous year: $114B
-5.7%

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Forward Guidance

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, which speak to our expected business and financial performance, among other matters, contain words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” and similar expressions.

Positive Outlook

  • The company expects to make share repurchases from time to time subject to the company’s capital plan
  • The company expects to make share repurchases subject to market conditions
  • The company expects to make share repurchases subject to legal and regulatory restrictions
  • The company expects to make share repurchases subject to required approvals
  • The company routinely evaluates and may pursue acquisitions of or investments in businesses, products, technologies, loan portfolios or deposits

Challenges Ahead

  • The effect of the coronavirus disease 2019 pandemic and measures taken to mitigate the pandemic
  • Changes in economic variables, such as the availability of consumer credit, the housing market, energy costs
  • The impact of current, pending and future legislation, regulation, supervisory guidance, and regulatory and legal actions
  • The actions and initiatives of current and potential competitors
  • The company's ability to manage its expenses