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Sep 30, 2023

Discover Q3 2023 Earnings Report

Discover reported strong revenue and receivables growth, with net income impacted by higher credit loss provisions.

Key Takeaways

Discover Financial Services reported a net income of $683 million, or $2.59 per diluted share, for Q3 2023, compared to $1.0 billion, or $3.56 per diluted share, for Q3 2022. The results reflect strong growth in revenues, receivables, and deposits, while credit performance is in line with expectations.

Total loans reached $122.7 billion, a 17% increase year-over-year.

Total revenue, net of interest expense, was $4.044 billion, up 17% year-over-year.

The total net charge-off rate was 3.52%, an increase of 181 basis points year-over-year.

Digital Banking pretax income was $803 million, a decrease of $471 million compared to the prior year.

Total Revenue
$4.04B
Previous year: $3.48B
+16.2%
EPS
$2.59
Previous year: $3.54
-26.8%
Gross Profit
$4.04B
Cash and Equivalents
$9.19B
Previous year: $10B
-8.1%
Free Cash Flow
$2.31B
Previous year: $1.54B
+50.1%
Total Assets
$143B
Previous year: $122B
+17.7%

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Forward Guidance

No specific forward guidance was provided in the press release.