Positive credit trends contribute to “solid first Discover Lowers Provision for Credit Losses Amid ‘Positive Credit Trends’. quarter financial performance” at Discover Financial Services, Discover Interim CEO and President Michael Shepherd said in a Wednesday (April 23) earnings release.
The digital banking and payment services company saw its net income leap 30% year over year in the first quarter to reach $1.1 billion, according to the release.
Shepherd said Discover’s
Financial performance benefite from “strong net interest margin and positive credit trends.”
The company’s net interest margin rose by australia phone number data 115 basis points compare with the previous year and reache 12.18%, according to the release.
The rise in net interest margin was “primarily driven by lower funding costs,” according to a presentation release Wednesday.
Discover’s good credit performance was highlighte by a reserve release and lower net charge-offs, per the presentation.
The company’s provision for
Credit losses decrease $253 million from the same quarter last year, dropping to $1.2 billion, according to the earnings release.
Credit card net charge-offs and delinquency rates improve year over year, according to the presentation. Personal loan net charge-offs outdated themes and plugins were up year over year, but were stable quarter over quarter, as were delinquencies.
This earnings release came days after the clean email Friday (April 18) announcement that Capital One receive the regulatory approvals necessary to complete the merger with Discover and that the merger is now expecte to close around May 18, subject to customary closing conditions.
“These results reflect our good
Execution and the strength of our business model,” Shepherd said in the release. “We are please that Capital One has receive all require approvals and look forward to completing our merger.”
The companies said Friday that they receive approvals from the Federal Reserve Board and the Office of the Comptroller of the Currency, meaning they had received all required regulatory approvals for the propose acquisition.
Capital One CEO Richard Fairbank said Tuesday (April 22) that the combine entity will create a “leading consumer banking and payments platform.”