Discover Financial Services (DFS) Tops Q2 EPS by 5c

Discover Financial Services (NYSE: DFS) reported Q2 EPS of $1.47, $0.05 better than the analyst estimate of $1.42.

Second Quarter Highlights

• Total loans grew $2.9 billion, or 4%, from the prior year to $71.9 billion.

• Credit card loans grew $2.3 billion, or 4%, to $57.2 billion and Discover card sales volume increased 2% from the prior year.

• Total net charge-off rate excluding PCI loans increased 11 basis points from the prior year to 2.27% and the total delinquency rate over 30 days past due excluding PCI loans increased 11 basis points from the prior year to 1.60%.

• Direct to consumer and affinity deposits grew $4.6 billion, or 16%, from the prior year to $34.1 billion.

• Payment Services transaction dollar volume for the segment was $44.8 billion, down 6% from the prior year.

• Income tax expense includes a one-time benefit of $44 million related to the resolution of certain tax matters.

“During the second quarter, we achieved loan growth within our target range and delivered strong profitability,” said David Nelms, chairman and CEO of Discover. “We also announced plans to increase our dividend and share repurchases, which we expect will result in one of the highest total yields among CCAR banks over the next four quarters.”

For earnings history and earnings-related data on Discover Financial Services (DFS) click here.

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