trending Market Intelligence /marketintelligence/en/news-insights/trending/x_8nxyqpzlzgvreronbs4q2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Discover ups dividend as Fed board approves capital plan; earnings rise YOY

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

Street Talk Episode 67 - Veteran investor tabs Mick Mulvaney to help with latest financial stock-focused fund

Street Talk Episode 65 - Deferral practices trap US bank portfolios in purgatory


Discover ups dividend as Fed board approves capital plan; earnings rise YOY

Discover Financial Services reported second-quarter net income allocated to common shareholders of $663 million, or $1.91 per share, an increase from $532 million, or $1.40 per share, in the prior-year period.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was $1.89.

Revenue, net of interest expense, was $2.60 billion, compared with $2.42 billion in the same period a year earlier. Total loans grew by 9% to $84.8 billion over the prior-year quarter.

Net interest income totaled $2.13 billion for the quarter, up from $1.94 billion in the second quarter of 2017. The net interest margin in the company's direct banking unit was 10.21%, which was up 10 basis points from the prior-year period.

Discover's direct banking unit posted pretax income of $837 million for the period, up slightly from $831 million a year earlier. The company attributed the increase to higher net interest income, largely offset by an increase in the provision for loan losses and higher operating expenses.

Expenses for the direct banking business rose year over year by $72 million in the quarter. The company cited higher employee compensation and marketing costs as the drivers for the increased expenses.

The provision for loan losses was $742 million during the quarter, compared with the $640 million allocated in the prior-year quarter. Discover's net principal charge-off rate, excluding purchased credit-impaired loans, was 3.18% for the quarter, compared with 2.79% in the year-ago period.

The company's delinquency rate for credit card loans more than 30 days past due was 2.16%, up from 2.00% in the second quarter of 2017.

The company also said that the Board of Governors of the Federal Reserve System had no objections to its planned capital actions through June 30, 2019. This includes an increase in its quarterly dividend to 40 cents per share from 35 cents per share previously and share buybacks of up to $1.85 billion during the four quarters ended June 30, 2019.