Discover Financial Services recently reported quarterly earnings of $600 million, or $1.09 per share, more than doubling its profits.
Highlights from Discover’s second quarter report include a report that card sales are up by nine percent and that total loans increased by five percent. The delinquency rate for credit card loans reached a record low and transaction volume for the segment were $46 billion, an increase of 24 percent from the prior year.
Craig Streem, a vice president and head of investor relations at Discover, discussed the results on Thursday during a second quarter earnings conference call.
Streem said two items stood out to him.
“First, our 30-plus-day delinquency rate for the card portfolio reached 2.79 percent, the lowest level at any point in our 25 year history,” Streem said. “And second, Discover Card receivables grew almost $650 million from the first quarter.”
Discover’s growth contrasted with the lagging revenue reported earlier this year at the biggest United States lenders, including Bank of America and JPMorgan Chase, which are to report second-quarter results next month, the New York Times reports.
“While the U.S. economy has yet to show significant strengthening, we are confident that we can continue to achieve profitable growth in all of our lending businesses, complemented by the contribution from our payments activities,” Discover CEO David Nelms said.