Discover Financial Services said its first-quarter profit surged 36 percent, bolstered by a 7 percent jump in Discover card transactions and record low delinquencies and charge-offs.
Discover Financial Services has expanded its franchise agreement with Diners Club Ecuador (DCE) to include issuance of Discover cards in Ecuador, marking the first time that Discover cards will be issued outside the United States.
The biggest U.S. credit card companies saw mixed results in defaults and customer late payments in January, but the overall trend in credit quality remains on a positive trend and well below peak crisis levels.
Record loan growth and declining delinquencies lifted Discover Financial Services to a net income of $513 million for the fourth quarter ending Nov. 30, a 47 percent jump from $350 million for the same period of 2010. The issuer of the Discover card beat expectations, boosted by a total loan growth of 17 percent to a record $57.3 billion
The term “cash back” has helped revitalize rewards programs and promotions in the aftermath of financial reform laws, and credit card issuers hope it’s the buzzword to snag shoppers as the holiday season looms.
Discover Financial Services, issuer of the Discover Card, today reported net income for its fiscal third quarter of $261 million, improved credit performance by customers and 5 percent higher sales volume compared to a year ago.
Small business confidence dropped sharply on Discover’s national index in August, with 62 percent of owners seeing the economy as worsening and 55 expecting unfavorable conditions for their own business.
American Express ranked highest in customer satisfaction for the fourth straight year, as overall satisfaction with credit cards edged upward, according to J.D. Power and Associates.
Discover Student Loans, a division of the financial services more widely known for its credit card, said today it is reducing its lowest eligible interest rate to 3.75 percent.
Discover’s index that measures small business confidence dipped to 86.1 in June from 87.4 last month, as concerns mount over cash flow issues and the outlook over the economy declines. Small business owners reporting temporary cash flow issues jumped to 51 percent in June, up from 45 percent in May – the highest since January.