trending Market Intelligence /marketintelligence/en/news-insights/trending/JJmJAuqGMZ9Qbeq0cCaeqQ2 content esgSubNav
In This List

Discover net income rises YOY in Q4'16

Blog

Banking Essentials Newsletter: June Edition, Part - 2

Blog

Insight Weekly: Fed's policy stance; overdrafts under scrutiny; energy stocks rally

Case Study

A Chinese Bank Strengthens its Credit Risk Assessments

Blog

Latin American and Caribbean Market Considerations Blog Series: Focus on LGD


Discover net income rises YOY in Q4'16

Discover Financial Services reported fourth-quarter 2016 net income allocated to common stockholders of $550 million, or $1.40 per share, up from $488 million, or $1.14 per share, in the fourth quarter of 2015.

The S&P Capital IQ consensus GAAP EPS estimate for the quarter was $1.38.

Revenue, net of interest expense, was $2.36 billion, compared with $2.21 billion in the year-ago quarter. Total expenses were down 5% compared with the prior-year quarter.

Net interest income was $1.89 billion, up from $1.73 billion a year ago. In the direct banking segment, the net interest margin was 10.07%, compared with 9.75% in the year-ago quarter.

The provision for loan losses was $578 million, higher than the $484 million allocated in the fourth quarter of 2015. The total net charge-off rate, excluding purchased credit-impaired loans, was 2.39%, 28 basis points higher than the previous year. The higher net charge-off rate was behind the higher loan loss provision, the company said.

The delinquency rate for credit card loans more than 30 days past due was 2.04%, 32 basis points higher than in the prior-year quarter.

For the full year, net income allocated to common shareholders was $2.34 billion, or $5.77 per share, up from $2.25 billion, or $5.13 per share, in 2015.

The S&P Capital IQ consensus GAAP EPS estimate for 2016 was $5.74.

Revenue, net of interest expense, was $9.10 billion, compared with $8.74 billion in 2015. Net interest income was $7.22 billion, up from $6.68 billion in the prior year. Provisions for loan losses totaled $1.86 billion, up from $1.51 billion.

The total net charge-off rate, excluding purchased credit-impaired loans, was 2.24% in 2016, up from 2.12% in 2015.