Discover Financial Services has recently released its 2017 third-quarter result with an EPS of $1.59 which has exceeded the estimated data of4%. It generally increased by 2% if to compare in a year-over-year basis.

The financial institution’s revenue net of interest expenses climbed by 9.7% to $2.5 billion year-over-year for the said quarter. The top lined beat the estimated data of 35%.

Operational Figures

Consumer deposits added 10% to $38.7 billion in a year-over-year basis. Interest expenses of $426 million soared by 18.7%, predominantly attributable to the change in funding mix and complex market prices.

Total other expenses improved by 6% to $948 million as a result of the higher employee compensation and benefits, Marketing and Business Development expenses and Information Processing & Communications fees reported the period.

Segment Data

The pre-tax income of the direct banking segment debilitated by 7% to $831 million. This was for the reason that higher provision for loan losses and operating expenses more than offset higher net interest income.

Total loans improved 9% in a year-over-year basis to $80.4 billion as the Credit card loans added 9% to $63.5 billion.


 Modern credit methods including Square, Visa, MasterCard, American Express and Discover II

As for the Personal loans, the data improved by 18% as the private student loans soared by 2%. It climbed by 11% if to exclude the purchased student loans. This is all in comparison with the previous year’s data.

Net interest income had a result of a 12% rise to $2 billion from the previous year’s data. This was supported by loan growth and a higher net interest margin. Net interest margin had a 10.28% result which is a 28 basis points improvement.

In other figures, total other income dwindled by 2% to $475 million year over year as it was supported by higher rewards expense. Provision for loan losses of $675 million improved by 64.8% from the preceding year’s data attributable to the higher net charge-offs and a larger reserve build.

Payment Services segment’s pretax income of the company was at $36 million in the said quarter – an increase of 20% from last year’s data as it was principally driven by higher transaction processing revenues and interchange revenues.

Payment Services transaction dollar volume for the period was at $51.6 billion. This was an increase 16% from the year-over-year data. More so, PULSE transaction dollar volume added 17% from the year’s figures.

Furthermore, Diners Club International volume had a 9% growth from the figures posted in the same quarter of last year. It was reported to have been driven by the constant strength of newer franchise relations. Network Partners volume augmented by 15%, pushed by AribaPay’s performance.

Trading Performance


Discover experienced a decline after releasing its earnings results on Wednesday. However, it did recover afterwards by added 1.54 points to 2.36% generally. Since most of the data were considered a beat, it is possible that it may trend further soon.

The Relative Strength Index last performed at 61.24 – a dramatic increase from the previous data of 54.44.

Lastly, the Coppock Curve flatlined in its recent trades while still being on the positive region. It was last seen at 2.68 which would recommend a buy for the stock.

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