Discover Financial Services - DFS STOCK NEWS

Discover Financial Services (NYSE: DFS) reported net income of $1.5 billion or $6.06 per diluted share for Q2 2024, a 70% increase from Q2 2023. Total revenue net of interest expense grew 17% to $4,538 million. Total loans increased 8% to $127.6 billion, with credit card loans up 7% to $100.1 billion. The total net charge-off rate rose to 4.83%, up 161 basis points year-over-year. Digital Banking pretax income increased by $694 million, while Payment Services pretax income grew by $207 million. The company declared dividends for its preferred and common stock.

Capital One Financial (NYSE: COF) has announced a $265 billion community benefits plan over five years as part of its proposed acquisition of Discover Financial Services (NYSE: DFS). This plan, developed in partnership with leading community groups, is twice as large as any previous bank acquisition commitment.

Key components include:

• $44 billion in community development financing
• $600 million for Community Development Financial Institutions
• $575 million in philanthropy
• $200 billion in consumer lending to low- and moderate-income (LMI) consumers or LMI communities
• $15 billion in small business lending
• $5 billion in anticipated spending with diverse suppliers

The plan aims to expand economic opportunity for underserved consumers, increase access to financial products and services, and support community development initiatives.

Carlyle and KKR have agreed to acquire a $10.1 billion prime student loan portfolio from Discover Financial Services. The acquisition, led by Carlyle's Credit Strategic Solutions team and KKR's asset-based finance strategy, showcases their expertise in private student loans and asset-backed finance. This transaction allows Discover to simplify its operations and business mix.

The deal is expected to close by the end of 2024, subject to customary conditions. Monogram , a Carlyle portfolio company, will manage the portfolio, while Firstmark Services, a Nelnet subsidiary, will service the loans. This strategic move highlights the evolving lending landscape and the increasing role of private markets in providing flexible solutions to financial institutions.

The Army & Air Force Exchange Service has announced a collaboration with Discover Global Network to expand the acceptance of the MILITARY STAR card on military installations starting September. This collaboration will allow the card to be accepted by more on-installation merchants, including concessionaires, name-brand restaurants, and third-party vendors. The Exchange Credit Program will retain control and ownership of the card. The partnership aims to enhance the Quality of Life for military communities by offering more secure payment options with EMV chip technology and additional functionalities like tap-to-pay and mobile wallet capabilities. In 2023, the Exchange Credit Program created $439 million in value for the military community. The card will still offer benefits like 10% off first-day purchases and 5 cents off every gallon of gas at Express fuel locations.

Today, Discover announced Balance+, a new feature for its Cashback Debit Checking account, aimed at addressing customer concerns over overdraft fees. Balance+ offers fee-free overdraft coverage of up to $200 on debit card transactions.

To qualify, account holders must maintain a positive balance and receive a monthly direct deposit of at least $200 for the past two months.

Balance+ complements Discover's existing Overdraft Protection, which covers checks, online bill payments, and ACH transfers, ensuring comprehensive coverage for various transaction types.

Additional enhancements to Cashback Debit include fee-free cash deposits at Walmart, seamless direct deposit setup, and secure external account linking. The account also offers 1% cash back on up to $3,000 in monthly debit card purchases and access to over 60,000 fee-free ATMs.

Discover aims to provide a worry-free banking experience and continues to improve its offerings to better serve its customers.

Discover Financial Services (NYSE: DFS) announced it will release its Second Quarter 2024 earnings results after the market closes on Wednesday, July 17, 2024. The earnings details will be accessible via Discover's Investor Relations website. Additionally, a conference call to discuss the results and future outlook is scheduled for Thursday, July 18, 2024, at 7:00 a.m. Central Time. The call will include prepared remarks and can be accessed through a live audio webcast available on Discover's Investor Relations website. An audio replay of the call will also be available post-event.

Discover Global Network and Network for Electronic Transfers (NETS) have activated their 2022 strategic agreement, enhancing card acceptance in Singapore. The collaboration enables Discover Global Network's cards, including Discover®, Diners Club International®, and Network Alliance cards, to be used at over 130,000 acceptance points across Singapore. This includes key segments like food and beverage, retail, convenience stores, and supermarkets.

NETS' CEO Lawrence Chan emphasized the partnership's role in offering a comprehensive digital payment solution for merchants. Discover’s Chris Winter highlighted the agreement's contribution to their Asia-Pacific expansion, noting a 34% spend growth in the region in 2023. The agreement follows similar collaborations with payment providers in Australia and China, further broadening Discover cardholders' payment options in the region.

Discover Global Network's 2024 Payment State of the Union (PSOU) study highlights the importance of diverse payment options for merchants, with 94% considering payments a strategic priority. The study, conducted with 451 Research, reveals that 85% of consumers avoid businesses with poor payment experiences. Key findings include 61% of merchants viewing payments as a competitive differentiator and 53% prioritizing diverse digital payment options to drive conversions. In-store purchases are rebounding, with 43% of discretionary income projected to be spent in-store in 2024, up from 39% in 2023. Tap-to-pay mobile payments are seen as a important future driver, with 73% of consumers comfortable using it. Discover will present these findings at Money 20/20 Europe on June 4, 2024.

Discover Home Loans conducted a survey revealing that 84% of U.S. homeowners are affected by high interest rates when considering buying a new home, causing many to opt for renovations instead. The survey also highlighted changes in financing options and renovation trends among different generations.