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Sep 30, 2022
Discover Q3 2022 Earnings Report
Discover reported strong third quarter results driven by robust loan growth, net interest margin, and credit metrics.
Key Takeaways
Discover Financial Services reported a net income of $1.0 billion, or $3.54 per diluted share, for the third quarter of 2022. The results reflect a disciplined approach to credit management and the strength of the company's digital banking and payments model.
Net income was $1.0 billion, or $3.54 per diluted share.
Total loans ended the quarter at $104.9 billion, up 17% year-over-year.
Net interest margin was 11.05%, up 25 basis points versus the prior year.
Payment Services volume was $84.1 billion, up 10% year-over-year.
Discover
Discover
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.
Positive Outlook
- The company's ability to manage its expenses.
- The company's ability to successfully achieve card acceptance across its networks and maintain relationships with network participants and merchants.
- The company's ability to sustain its card, private student loan and personal loan growth.
- The company’s ability to increase or sustain Discover card usage or attract new customers.
- The company's ability to manage its credit risk, market risk, liquidity risk, operational risk, compliance and legal risk, and strategic risk.
Challenges Ahead
- The effect of the coronavirus disease 2019 pandemic and measures taken to mitigate the pandemic, including their impact on our credit quality and business operations as well as their impact on general economic and financial markets.
- 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.
- Difficulty obtaining regulatory approval for, financing, closing, transitioning, integrating or managing the expenses of acquisitions of or investments in new businesses, products or technologies.