Discover Financial Services Reports Fourth Quarter Net Income of $387 Million

Discover Financial Services (NYSE: DFS) today reported net income of $387 million or $0.99 per diluted share for the fourth quarter of 2017, as compared to $563 million or $1.40 per diluted share for the fourth quarter of 2016. The company’s return on equity for the fourth quarter of 2017 was 14%. Net income included non-recurring charges of $189 million resulting from actions taken by the company in connection with the Tax Cuts and Jobs Act (“Tax Act”). These charges had the effect of reducing diluted earnings per share by $0.52.

Fourth Quarter Highlights
• Total loans grew $7.0 billion (9%) from the prior year to $84.2 billion.
• Credit card loans grew $5.8 billion (9%) to $67.3 billion, on Discover card sales volume of $35.3 billion.
• Total net charge-off rate excluding PCI loans increased 53 basis points from the prior year to 2.92% and the total 30+ day delinquency rate excluding PCI loans increased 23 basis points from the prior year to 2.20%.
• Consumer deposits grew $3.4 billion (9%) from the prior year to $39.4 billion.
• Payment Services transaction dollar volume was $54.0 billion, up 17% from the prior year.
• Income tax expense includes a one-time adjustment of $179 million to reflect the impact of the Tax Act.

“Our earnings in the fourth quarter and full year were driven by strong loan and revenue growth across our businesses, the result of continued execution of our strategy,” said David Nelms, chairman and CEO of Discover. “As we move forward in 2018, this strong momentum, enhanced by the favorable economic environment, should position us well for sustained growth, strong ROE and continued return of excess capital to shareholders. While the new tax law impacted the current quarter, I am excited about the opportunity it provides to further invest in growth, our people and our communities.”
details at:  https://investorrelations.discover.com/newsroom/press-releases/press-release-details/2018/Discover-Financial-Services-Reports-Fourth-Quarter-Net-Income-of-387-Million-or-099-Per-Diluted-Share/default.aspx

Related Posts

Study: ‘Porch piracy’ concerns on the rise

Retailers and consumers aren’t the only ones who think the holiday season is the “most wonderful time of the year.” With consumers stepping up the frequency of online shopping this holiday season, thieves are getting more brazen, and ready to pilfer home deliveries. And they have been honing their craft, as nearly one in five (19%) of homeowners in the United States were the victim of a package theft in the last year, according to a study from connected home security provider Ring. One in two homeowners (26%) receive a delivery at least once a week, and 24% receive packages multiple times a week. Yet, 73% of homeowners said carriers leave the deliveries on their front porch — in clear view of passers-by, especially criminals. Click Read More below for additional information.

News Corporation Reports Third Quarter Results for Fiscal 2022

Fiscal 2022 Third Quarter Key Financial Highlights *Revenues in the quarter were $2.49 billion, a record for third quarter revenue and a 7% increase compared to $2.34 billion in the prior year *Net income in the quarter was $104 million, an 8% increase compared to $96 million in the prior year *Total Segment EBITDA in the quarter was $358 million, a 20% increase compared to $298 million in the prior year, and includes $15 million of one-time transaction costs

Grainger Reports Results For The 2017 Third Quarter

Grainger reported results for the 2017 third quarter ended September 30, 2017. Sales of $2.6 billion increased 2 percent versus the third quarter of 2016. There were 63 selling days in the 2017 third quarter, one fewer than the 2016 third quarter. On a daily basis, sales increased 3 percent versus the prior year. Net earnings for the quarter of $162 million were down 13 percent versus $186 million in 2016. Earnings per share of $2.79 decreased 9 percent versus $3.05 in 2016. "Our U.S. business had strong volume in the quarter driven by our strategic pricing initiatives and an improving demand environment. We saw a solid response from digital marketing activities that began in mid-August, particularly from our mid-sized customers. We continued to streamline our portfolio with the divestiture of a noncore U.S. specialty business, which affected sales in the quarter," said Chairman and Chief Executive Officer DG Macpherson. "Our single channel online businesses continued their strong sales growth and improved profitability. Our Canadian business continues to be challenged as we execute our turnaround strategy. Click Read More below for additional information.
Back To Top
×Close search
Search