Discover Financial Services Stock Trading Flat As Total Loans Surge 9%

Discover Financial Services (NYSE:DFS) shares were flat after hours following the company’s latest quarterly earnings report, which saw its total loans value grow.

Discover Financial Services

The financial services company announced net income of $666 million for its first quarter of fiscal 2018, or $1.82 per diluted share. The figure was ahead of the company’s year-ago net income of $564 million, or $1.43 per diluted share, plus the company had a first-quarter return on equity of 25%.

Discover Financial Services added that its total loans for the period were up by 9% compared to the year-ago quarter, marking a $6.9 billion increase that brought its total to $82.7 billion. The company’s credit card loans grew $5.8 billion, or 10% year-over-year, to $65.6 billion as Discover card sales reached a volume of $30.9 billion.

The company’s total net charge-off rate, excluding purchased credit-impaired (PCI) loans, was up by 48 basis points from the year-ago quarter to 3.17%, with the total 30+ day delinquency rate excluding PCI loans surging by 26 points year-over-year to 2.23%.

Discover Financial Services’ consumer deposits were up by $4.2 billion, or 11%, compared to the year-ago quarter, reaching $41.3 billion. The company’s Payment Services transaction dollar volume was $56.1 billion, a 19% gain compared to the year-ago quarter.

“Our performance this quarter was characterized by robust loan and revenue growth reflecting the strength of the Discover franchise as we continued to invest in product and service enhancements,” said David Nelms, chairman and CEO of Discover.

DFS stock was up about 0.7% during regular trading hours but were trading flat after the bell Thursday.

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