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Mar 31, 2023
Discover Q1 2023 Earnings Report
Discover reported solid results for Q1 2023, marked by receivables growth and record deposit inflows, amidst credit normalization and strategic investments.
Key Takeaways
Discover Financial Services reported a net income of $1.0 billion, or $3.58 per diluted share, for the first quarter of 2023. The results reflect continued receivables growth and record deposit inflows, with credit normalizing as expected. The company's strong funding and capital enabled investments for growth and significant capital return to shareholders.
Net income was $1.0 billion, or $3.58 per diluted share.
Total loans reached $112.7 billion, a 21% increase year-over-year.
Payment Services volume increased by 10% year-over-year.
The Board of Directors approved a new $2.7 billion share repurchase program.
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Discover Revenue by Segment
Revenue by Segment
Payment Services Revenue
CapyFin.com 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. Such statements are based upon the current beliefs and expectations of the company's management and are subject to significant risks and uncertainties.
Positive Outlook
- Our ability to manage our expenses
- Our ability to successfully achieve card acceptance across our networks and maintain relationships with network participants and merchants
- Our ability to sustain and grow our private student loan, personal loan and home loan products
- Difficulty obtaining regulatory approval for, financing, closing, transitioning, integrating or managing the expenses of acquisitions of or investments in new businesses, products or technologies
- Our ability to manage our credit risk, market risk, liquidity risk, operational risk, legal and compliance risk and strategic risk
Challenges Ahead
- Changes in economic variables, such as the availability of consumer credit, the housing market, energy costs, the number and size of personal bankruptcy filings, the rate of unemployment, the levels of consumer confidence and consumer debt and investor sentiment
- The impact of current, pending and future legislation, regulation, supervisory guidance and regulatory and legal actions, including, but not limited to, those related to accounting guidance, tax reform, financial regulatory reform, consumer financial services practices, anti-corruption and funding, capital and liquidity
- The actions and initiatives of current and potential competitors
- The availability and cost of funding and capital
- Access to deposit, securitization, equity, debt and credit markets