Discover Financial rises after Q3 profit surge

Discover Financial Services

17/10/2024 16:09

** Shares of U.S. consumer lender Discover Financial  DFS.N 
rise ~1.5% to $149.76 in morning trading 
    ** DFS reported a 43% jump in Q3 profit after market close
on Wednesday, helped by higher interest income 
    ** It said net interest income, or the difference between
what a lender earns as interest on loans and pays on deposits,
rose 10% in Q3 versus a year earlier
    ** Provisions for credit losses - the capital banks set
aside to cover loans that may not be repaid - decreased by $229
million in the quarter 
    ** DFS CEO Michael Shepherd said it benefited from net
interest margin expansion, modest loan growth and some credit
improvement in Q3 
    ** Total loans rose 4% in the quarter, while revenue climbed
10% to $4.45 bln 
    ** Including session moves, stock up ~33% YTD

 (Reporting by Manya Saini in Bengaluru)
 ((Manya.Saini@thomsonreuters.com))