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Sep 30, 2024
Discover Q3 2024 Earnings Report
Discover's financial performance remained strong, driven by increased net interest margin, modest loan growth, and some credit improvement.
Key Takeaways
Discover Financial Services reported a net income of $965 million, or $3.69 per diluted share, for the third quarter of 2024. This represents an increase compared to the third quarter of 2023, where net income was $683 million, or $2.59 per diluted share.
Net income for the third quarter of 2024 was $965 million, or $3.69 per diluted share.
Digital Banking pretax income was $1.2 billion, an increase of $401 million year-over-year.
Total loans ended the quarter at $127.0 billion, up 4% year-over-year.
Payment Services volume was $100.5 billion, up 9% from the prior year period.
Revenue by Segment
Forward Guidance
Discover's financial performance remained strong, benefiting from increased net interest margin, modest loan growth, and some credit improvement.
Positive Outlook
- Increased net interest margin
- Modest loan growth
- Some credit improvement
- Completed the first of four student loan sale closings
- Continued to make good progress on risk management and compliance capabilities
Challenges Ahead
- Increased operating expenses
- Higher wage rates and employee retention awards
- Increased information processing costs due to technology investments
- Higher professional fees from recovery fees and merger and integration costs
- Recognition of private student loan net charge-off expenses
Historical Earnings Impact
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Avg. Return Before/After Earnings
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