Discover Financial Services on April 22 reported first quarter net revenue of $2.08 billion, up 4.5 percent from $1.99 billion during the same period last year. Net income was $631 million, down 6.2 percent from $673 million.
The company’s stock price closed at $56.67, down slightly from Monday’s $56.77 closing price.
Discover Card sales volume for the first quarter ended March 31 totaled $25.7 billion, up 3.4 percent from $24.86 billion during the same periods a year earlier.
In terms of network sales volume, Pulse Network volume reached $41.9 billion, up 5 percent from $39.9 billion; Diners Club, $6.5 billion, down 1.5 percent from $6.6 billion; network partners, $2.4 billion, up 9.1 percent from $2.2 billion; and Discover Network-Proprietary, $26.5 billion, up 3.1 percent from $25.7 billion.
Network transactions processed by Discover Network totaled $461 million, up 4.3 percent from $442 million, while Pulse volume totaled $1.04 billion, up 2 percent from $1.02 billion.
The net principal charge-off rate (based on total receivables) for the quarter was 2.32 percent, down from 2.36 percent a year earlier..
Average credit card loans were $51.3 billion, up 4.1 percent from $49.3 billion. The credit card loans delinquency rate over 30 days past due was 1.72 percent, down from 1.77 percent. The credit card loans delinquent over 90 days was 0.87 percent, down from 0.91 percent.
"Our results this quarter reflect a solid start for 2014, as we delivered strong card loan growth that was near the top of our targeted range while maintaining excellent credit performance and continuing to grow other lending products as well,” said David Nelms, Discover chairman and CEO, said in the company’s earnings release.
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