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Sep 30, 2020

Discover Q3 2020 Earnings Report

Discover reported net income for Q3 2020, demonstrating resilience amidst economic challenges.

Key Takeaways

Discover Financial Services reported a net income of $771 million, or $2.45 per diluted share, for the third quarter of 2020, slightly higher than the $770 million reported for the same period in 2019. The results reflect solid credit performance and the benefits of actions taken to mitigate credit risk and align expenses.

Net income increased slightly year-over-year to $771 million.

Diluted EPS increased to $2.45, up from $2.36 in the prior year.

Total loans decreased by 4% year-over-year, ending the quarter at $88.7 billion.

Payment Services volume increased by 11% year-over-year, driven by growth in PULSE and Network Partners.

Total Revenue
$2.71B
Previous year: $2.9B
-6.4%
EPS
$2.45
Previous year: $2.36
+3.8%
Cash and Equivalents
$9.51B
Previous year: $6.08B
+56.6%
Free Cash Flow
$1.24B
Previous year: $758M
+64.0%
Total Assets
$124B
Previous year: $111B
+12.2%

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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.