Discover’s credit card outstandings continued strong in the third quarter rising 3.7% as Purchase Dollar Volume (PDV) rose 2.7%, year-on-year (YOY). While all other credit card metrics remained stable, overall net income for Q3/15 declined 5.0% YOY to $612 million.
Discover reported credit card end-of-period (EOP) outstandings rose 3.7% YOY for Q3/15 of $55.7 billion, compared to $54.9 billion for the second quarter and $53.7 billion for the year ago quarter. Average outstandings increased 4.1% YOY to $55.3 billion, compared to $54.0 billion for the second quarter and $53.1 billion for the year ago quarter.
PDV for the third quarter rose 2.7% YOY to $30.4 billion, compared to $30.0 billion for Q2/15 and $29.6 billion for Q3/14.
Gross Dollar Volume (GDV) increased 2.8% YOY to $33.0 billion, from $32.1 billion for Q3/14 and $32.3 billion in the prior quarter.
Delinquency (30+ days) increased to 1.65%, compared to 1.55% in the prior quarter, and 1.71% one-year ago.
Late-stage delinquency (90+ days) decrease 3 basis points (bps) from Q2/15 to 0.78%, and down 4 bps from one-year ago.
Net charge-offs declined to 2.04% for Q3/15 from the 2.28% in the prior quarter and from 2.16% in the year ago quarter.
The interest yield remained solid at 12.03% for Q3/15, compared to 12.04% in the prior quarter and 12.04% for Q3/14.
Discover noted Payment Services pretax income was $24 million in the quarter, down $4 million from the prior year. Payment Services transaction dollar volume was $46.0 billion, down 7% from the prior year. PULSE transaction dollar volume was down 11% year- over-year due to the loss of some volume from a large debit issuer. Network Partners volume was up $1.0 billion, or 47% from the prior year driven by AribaPay volume.
DISCOVER NET INCOME
3Q/04: $644 million
4Q/04: $404 million
1Q/05: $586 million
2Q/15: $599 million
3Q/15: $612 million
Source: Discover; CardData
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