Discover’s credit card outstandings continued growth in the fourth quarter (4Q/15) rising 3.2% as Purchase Dollar Volume (PDV) rose 1.8%, year-on-year (YOY).
While all other credit card metrics remained stable, overall net income for 4Q/15 soared 24.0% YOY to $500 million.
Discover reported credit card end-of-period (EOP) outstandings rose 3.2% YOY for 4Q/15 of $57.9 billion, compared to $55.7 billion for the third quarter and $51.8 billion for the year ago quarter.
Average outstandings increased 3.3% YOY to $56.1 billion, compared to $55.3 billion for the third quarter and $54.2 billion for the year ago quarter.
PDV for the fourth quarter rose 2.6% YOY to $31.7 billion, compared to $30.4 billion for 3Q/15 and $30.9 billion for 4Q/14.
Gross Dollar Volume (GDV) increased 1.8% YOY to $33.8 billion, compared to $33.0 billion for 3Q/15 and $33.2 billion for 4Q/14.
Delinquency (30+ days) increased to 1.72%, compared to 1.65% in the prior quarter, and 1.73% one-year ago.
Late-stage delinquency (90+ days) increased 7 basis points (bps) from 3Q/15 to 0.85%, and flat from one-year ago.
Net charge-offs increased to 2.18% for 4Q/15 from 2.04% in the prior quarter and from 2.26% in the year ago quarter.
The interest yield rose to 12.20% for 4Q/15, compared to 12.03% in the prior quarter and 12.08% for Q3/14.
DISCOVER NET INCOME
4Q/04: $404 million
1Q/05: $586 million
2Q/15: $599 million
3Q/15: $612 million
4Q/15: $500 million
Discover noted Payment Services pretax income was $21 million in the quarter, up $19 million from the prior year as the prior year included a $21 million charge from a fair value adjustment related to Diners Club Italy being classified as held-for-sale.
Payment Services transaction dollar volume was $45.9 billion, down 10% from the prior year. PULSE transaction dollar volume was down 14% year-over-year due to the loss of volume from a large debit issuer. Network Partners volume was up $1.0 billion, or 45%, from the prior year driven by AribaPay volume.
For a complete archive of more than 60,000 articles published since 1995 search the CardFlash.com library.