Discover Financial Services - DFS STOCK NEWS

Discover has appointed Kelly Welsh as incoming interim chief legal officer, general counsel and head of corporate and public affairs. Welsh, who brings over 35 years of senior leadership experience, joins the executive management committee as the company approaches its merger with Capital One. He succeeds Hope Mehlman, who is departing at the end of November. Welsh's extensive background includes serving as General Counsel of the U.S. Department of Commerce and executive roles at Northern Trust and Ameritech. He holds degrees from Harvard College, University of Sussex, and Harvard Law School.

Discover Global Network has released its 2024 Payments State of the Union study, revealing key insights into the payments ecosystem. The study highlights that 73% of consumers used instant payments in the last 90 days, with 82% interested in real-time bill payments. Security remains paramount, with 51% of consumers prioritizing personal information security.

Merchants are increasingly focusing on payments, with 61% viewing it as highly strategic for competitive differentiation. Fraud prevention (75%) and providing diverse payment options (75%) are important for merchant success. Fintechs identify consumers (49%) and merchants (39%) as key growth opportunities, with 93% emphasizing the importance of instant payments.

Discover Financial Services reported strong Q3 2024 results with net income of $965 million or $3.69 per diluted share, up 41% and 42% year-over-year respectively. Total revenue net of interest expense increased 10% to $4,453 million. The company's performance benefited from increased net interest margin, modest loan growth, and some credit improvement.

Key highlights include:

• Total loans up 4% YoY to $127.0 billion
• Credit card loans up 3% YoY to $100.5 billion
• Net interest margin expanded to 11.38%, up 43 basis points YoY
• Total net charge-off rate increased to 4.86%, up 134 basis points YoY
• Digital Banking pretax income increased by $401 million YoY
• Payment Services volume up 9% to $100.5 billion

The Board of Directors declared a quarterly cash dividend of $0.70 per share of common stock.

Discover has achieved its goal of creating 1,000 active jobs in Chicago's Chatham area, fulfilling a 3-year commitment to the city's South Side. Over 85% of these employees live within a five-mile radius of the Customer Care Center, which opened in April 2021. Nearly 500 employees have received promotions, showcasing Discover's dedication to internal advancement and local workforce development.

To celebrate this milestone, Discover hosted community events, including a donut giveaway with local shop Dat Donut and a Shine Bright Career and Community Day for local students. The company has made significant economic investments in Chatham, spending over $3 million with diverse local restaurants, $1 million with local vendors, and $8 million with Black-owned contractors. The Shine Bright Community Center has hosted over 900 events with 50,000 attendees and partnered with more than 350 nonprofit organizations.

Discover Financial Services (NYSE: DFS) has announced its plans to release its Third quarter 2024 earnings report after the market closes on Wednesday, October 16, 2024. The company will follow this with a conference call on Thursday, October 17, 2024, at 7:00 a.m. Central Time to discuss the results, outlook, and related matters.

The earnings release will be available on Discover's Investor Relations website. The conference call will be to prepared remarks and will be accessible to the general public via a live audio webcast on the same website. An audio replay of the call will also be made available on the website following the call.

Discover® Global Network's 2024 Payment State of the Union study reveals key insights into the commercial payments landscape in Asia-Pacific (APAC). The study found that 91% of APAC businesses prioritize fraud prevention services, while the appeal for Virtual Card Numbers (VCNs) is growing.

Key findings include:

• 61% of APAC businesses are actively investing or open to investing in commercial payment solutions
• 92% prioritize business travel expense management
• 53% don't currently offer or use VCNs, but 29% plan to invest or are in the discovery phase
• Top challenges include lack of visibility across expense types (35%) and difficulties tracking/managing expenses (34%)

The study highlights the ongoing digital transformation of commercial payments in APAC, with businesses focusing on expense management, security, and fraud prevention features.

The 2024 PULSE Debit Issuer Study, commissioned by Discover Financial Services' PULSE debit network, reveals a rise in the use of debit cards among U.S. consumers. Key findings include an increase in the total number of debit cards, transactions, and annual spend per active card in 2023. Active cardholders averaged 34.6 transactions per month, with 46.89% of transactions being card-not-present (CNP) and 38% of debit cards loaded into mobile wallets. The average debit ticket size was $46.89, with an annual spend per active card at $17,274. Mobile devices accounted for 7% of all debit transactions, and issuers plan to introduce digital instant-issuance capabilities. The study also notes challenges such as a pending reduction in Regulation II's interchange cap, increased competition, and the impact of real-time payments growth.

Discover Financial Services has been recognized as a 2024 Best Place to Work for People with Disabilities, earning a perfect score of 100 on the Disability Equality Index for the fourth consecutive year. This achievement highlights Discover's commitment to creating an inclusive workplace environment.

Key initiatives include:

• Eight employee resource groups (ERGs), including Strive for Disability Empowerment with over 1,600 members worldwide
• Neurodivergent Connections Hiring Program, welcoming seven new neurodivergent employees in 2023
• Universal Design Advisory Board to enhance accessibility for internal and external customers
• Updated career site with improved accessibility features
• Educational events and panel discussions on disability inclusion and mental health

These efforts demonstrate Discover's ongoing commitment to fostering a diverse, equitable, and inclusive culture for all employees.

A new Discover Personal Loans survey reveals that 80% of Americans experience financial anxiety, with 34% reporting moderate to severe levels. Key findings include:

1. Top financial stressors: inflation (58%), everyday expenses (49%), state of the economy (45%), and current income level (38%).

2. Debt concerns: 30% cite debt as a cause of stress, with 84% having credit card debt and 55% having medical or home loan debt.

3. Financial unpreparedness: Many Americans feel ill-equipped to handle job loss (64%), caregiver expenses (63%), or unexpected expenses over $5,000 (60%).

4. Generational differences: Misconceptions about managing debt and reasons for avoiding personal loans vary across generations.

The survey highlights the need for financial education and awareness of available tools to manage debt and unexpected expenses.