Discover Finl Svcs - DFS STOCK NEWS

Discover Financial Services (DFS) reported Q4 2024 net income of $1.3 billion ($5.11 per diluted share), a 253% increase from $366 million ($1.45 per diluted share) in Q4 2023. Total revenue net of interest expense grew 14% to $4.759 billion. Total loans decreased 6% year-over-year to $121.1 billion, while credit card loans grew 1% to $102.8 billion.

The company's Digital Banking segment posted pretax income of $1.6 billion, with net interest margin expanding to 11.96%. The total net charge-off rate increased to 4.64%, up 53 basis points year-over-year. Card yield improved to 16.22%, up 59 basis points from the prior year. Payment Services pretax income rose 37% to $74 million, with payment volume reaching $102 billion.

Notable developments include the completion of the student loan sale, resulting in a $381 million gain, and the announcement of a pending merger with Capital One.

InterPayments, a leader in compliant managed surcharge solutions, has appointed Roger Hochschild, former CEO and president of Discover Financial Services (NYSE: DFS), to its board of directors. Hochschild brings over 35 years of payments expertise, including a 25-year tenure at Discover and experience as chief administrative and strategic officer at Morgan Stanley.

As Discover's CEO, Hochschild managed all operations and direct banking services, working extensively with merchants, software platforms, and payment processors. InterPayments positions itself as a 'payments facilitator' providing seamless compatibility with payment systems and offering the only surcharge service that indemnifies against state/provincial, federal, and card network noncompliance.

Discover Financial Services (NYSE: DFS) has announced it will release its fourth quarter 2024 financial results after market close on Wednesday, January 22, 2025. The company will host a conference call to discuss the results on Thursday, January 23, 2025, at 7:00 a.m. Central Time. The call will be to prepared remarks and will be accessible via live audio webcast through Discover's Investor Relations website. An audio replay will be available on the website after the call.

Capital One (NYSE: COF) has received approval from the Delaware State Bank Commissioner on December 18, 2024, for its planned acquisition of Discover Financial Services (NYSE: DFS) and its subsidiary Discover Bank. The transaction is expected to close in early 2025, pending stockholder approvals from both companies and regulatory approvals from the Federal Reserve System and the Office of the Comptroller of the Currency.

The acquisition, first announced in February 2024, includes a $265 billion community benefits plan announced in July 2024, developed with community groups. The plan includes $35 million in grants to Delaware-based nonprofits and maintains Discover's Sussex County branch presence.

Capital One (NYSE: COF) and Discover Financial Services (NYSE: DFS) have announced special stockholder meetings scheduled for February 18, 2025, where shareholders will vote on Capital One's proposed acquisition of Discover. The record date for stockholder voting eligibility is set for December 27, 2024.

Capital One's meeting will be held at their McLean, Virginia campus at 10:00 a.m. ET, while Discover's meeting will take place at their Riverwoods, Illinois location at 9:00 a.m. CT. Following the effectiveness of Capital One's Form S-4 registration statement, both companies will distribute a joint proxy statement and prospectus to eligible stockholders.

Discover's national survey reveals that 54% of U.S. consumers plan to make financial resolutions for 2025. The top financial goals include saving more (42%), earning more (35%), and spending less (35%). However, 94% of Americans anticipate challenges, with inflation (47%), unexpected expenses (39%), and economic conditions (38%) being primary concerns.

While 52% plan to budget in 2025, only 36% created a budget in 2024. Among those who budgeted in 2024, 22% stuck to it, reporting feelings of accomplishment (46%) and preparedness (38%). Looking ahead, most Americans are cautiously optimistic about their finances, with 45% expecting their situation to remain stable and 36% anticipating improvement. Younger generations show higher optimism, with 44% of Gen Zers and 45% of Millennials expecting better financial situations in 2025.

Discover has been named a 2025 Best Place to Work in IT by Foundry's Computerworld, marking its twenty-first year on the list. Discover ranks no. 27 among large organizations with over 5,000 employees. This recognition is based on a comprehensive questionnaire covering benefits, career development, DEI, future of work, training, and retention, and is vetted by industry experts.

Jason Strle, EVP and CIO at Discover, emphasized the company's commitment to fostering an innovative environment and supporting tech talent through various programs, including the Discover Technology Academy (DTA), mentorship opportunities, and an external eminence program. The focus on AI has increased demand for skills in AI, data analytics, and cloud, which Discover aims to meet through upskilling and training opportunities.

Discover's submission highlighted the benefits of DTA and its commitment to DEI. Technologists can join employee resource groups, serve on the IT DEI Council, and participate in volunteer initiatives. Discover is currently hiring engineers in cybersecurity, data, DevOps, infrastructure, and software. For more information, visit discover.com/careers.

Discover Financial Services (DFS) received an NYSE notice on November 19, 2024, for failing to file its Q3 2024 10-Q report timely. The company announced it will restate financial statements due to card product misclassification issues dating back to 2007. The restatement follows SEC staff disagreement with DFS's accounting approach and will affect financial statements from 2022-2024. The correction involves reallocating approximately $600 million from Q1 2024 expenses to prior period revenue errors, with total liability reaching approximately $1,047 million. DFS expects to complete the restatement filings before year-end, impacting its pending merger with Capital One.

Telered and Discover Global Network have announced a strategic alliance that will integrate Panama's Sistema Clave system with Discover's global network. This partnership will enable Sistema Clave users to access over 70 million acceptance locations and 1.8 million ATMs worldwide. Conversely, Discover Global Network cardholders will gain access to Telered merchants in Panama.

The alliance will maintain Sistema Clave's traditional advantages while adding contactless technology and digital wallet integration. For Panama merchants, this opens opportunities to serve 345 million cardholders from Discover Network, Diners Club, PULSE, and other strategic alliances. The implementation, known as Proyecto Clave 2.0, will be developed over one year across three stages: processing infrastructure adaptation, new card issuance, and merchant/ATM enablement.