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Jun 30, 2020

Discover Q2 2020 Earnings Report

Discover reported a net loss for Q2 2020 due to increased credit loss provisions.

Key Takeaways

Discover Financial Services reported a net loss of $368 million, or ($1.20) per diluted share, for the second quarter of 2020, compared to a net income of $753 million, or $2.32 per diluted share, for the second quarter of 2019. The results included a $1.3 billion addition to the allowance for credit losses.

Net loss of $368 million, or ($1.20) per diluted share.

Total revenue net of interest expense decreased by 7% year-over-year to $2,662 million.

Direct Banking pretax loss of $484 million, $1.4 billion lower than the prior year.

Payment Services pretax income was $23 million, down $23 million year-over-year.

Total Revenue
$2.66B
Previous year: $2.85B
-6.7%
EPS
-$1.2
Previous year: $2.32
-151.7%
Cash and Equivalents
$15.1B
Previous year: $10.3B
+46.8%
Free Cash Flow
$1.49B
Previous year: $1.51B
-1.1%
Total Assets
$114B
Previous year: $111B
+2.8%

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Forward Guidance

Discover did not provide specific forward guidance in the press release. The company's outlook is subject to significant risks and uncertainties, including the ongoing COVID-19 pandemic and its impact on the economy and financial markets.