Discover’s credit card outstandings continued strong in the second quarter rising 4.2% as Purchase Dollar Volume (PDV) rose 2.4%, year-on-year (YOY). While all other credit card metrics remained stable, overall net income for Q2/15 declined 7.0% YOY to $699 million.
Discover reported credit card outstandings for Q2/15 of $54.9 billion, compared to $53.5 billion for the first quarter and $52.7 billion for the year ago quarter.
PDV for the second quarter totaled $30.0 billion, compared to $29.3 billion for Q2/14 and $26.4 billion for Q1/15.
Gross Dollar Volume (GDV) rose 1.9% YOY to $32.3 billion, from $31.7 for Q2/14 and $28.7 billion in the prior quarter.
Delinquency (30+ days) declined to 1.55%, compared to 1.64% in the prior quarter, and 1.63% one-year ago.
Late-stage delinquency (90+ days) decreased 11 basis points (bps) from Q1/15 to 0.75%, and down 5 bps from one-year ago.
Net charge-offs declined to 2.28% from the 2.40% in the prior quarter and from 2.33% in the year ago quarter.
Discover noted Payment Services pretax income was $28 million in the quarter, down $3 million from the prior year. Payment Services dollar volume was $47.5 billion, down 7% from the prior year. PULSE transaction dollar volume was down 10% year-over-year due to the loss of some volume from a large debit issuer. Network Partners volume was up $919 million, or 35% from the prior year driven by AribaPay volume.
DISCOVER NET INCOME
2Q/04: $644 million
3Q/04: $644 million
4Q/04: $404 million
1Q/05: $586 million
2Q/15: $599 million
Source: Discover; CardData
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