Discover’s credit card outstandings continued strong in the first quarter rising 5.1% as Purchase Dollar Volume (PDV) rose 2.7%, year-on-year (YOY). While all other credit card metrics remained stable, overall net income for Q1/15 declined 7.1% YOY to $586 million.
Discover reported credit card outstandings for Q1/15 of $53.5 billion, compared to $56.1 billion for the fourth quarter and $50.9 billion for the year ago quarter.
PDV for the first quarter totaled $26.4 billion, compared to $25.7 billion for Q1/14 and $30.9 billion for Q4/14.
Gross Dollar Volume (GDV) rose 2.1% YOY to $28.7 billion, from $28.1 for Q1/14 and $33.2 billion in the prior quarter.
Delinquency (30+ days) declined to 1.64%, compared to 1.73% in the prior quarter, and 1.72% one-year ago.
Late-stage delinquency (90+ days) increased 1 basis points (bps) from Q4/14 to 0.86%, and down 1 bps from one-year ago.
Discover noted during the first quarter, a payment processing change was implemented which had the effect of contributing favorably to the delinquencies of certain accounts. These changes partially contributed to the decline in the delinquency rate.
Net charge-offs rose to 2.40% from the 2.26% in the prior quarter and from 2.32% in the year ago quarter.
The interest yield declined 9 bps from the year ago quarter to 12.05% and down 3 bps from 4Q/14.
1Q/04: $631 million
2Q/04: $644 million
3Q/04: $644 million
4Q/04: $404 million
1Q/05: $586 million
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