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’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’s U.S. end-of-period (EOP) credit card loans grew 5.5% year-on-year (YOY) and continues to outpace the top Visa and MasterCard issuers. Since 2009, Discover has experienced sequential growth at a compound annual growth rate (CAGR) of 5.5%, exceeded only by Capital One among the top ten issuers.
Discover’s U.S. Purchase Dollar Volume (PDV) is growing 4.7% annually. slower than its peer group, however Discover is outpacing the top Visa and MasterCard in outstandings growth. RAM Research forecasts Q1/15 U.S. PDV will slightly exceed $27 billion.
Discover continues to outpace the top Visa and MasterCard issuers with solid growth in fourth quarter outstandings. However, Discover’s gross dollar volume (GDV) rose 4.4% to $33.2 billion, below the average for the Big 4 Visa and MasterCard issuers.
Discover’s Payment Services dollar volume was $80.2 billion for the third quarter of 2014, up 4% from the prior year. PULSE transaction dollar volume was up 3% year-over-year.
Discover continues to outpace the four top Visa and MasterCard issuers with solid growth in third quarter outstandings. However, Discover’s gross dollar volume (GDV) rose 5.9% to $31.7 billion, below the Big 4 Visa and MasterCard issuers.
Online money transfer company Optimal Payments Plc said it expects to beat its forecast for the full-year after robust sales at its high-margin Neteller e-wallet business drove first-half pretax profit up 78 percent. The company’s shares rose as much as 7.8 percent to 510 pence in early trade on the London Stock Exchange on Wednesday. Pretax profit jumped to $27.5 million for the six months ended June 30, from $15.5 million a year ago.
Discover’s Payment Services dollar volume was $50.9 billion for the second quarter of 2014, up 3% from the prior year. PULSE transaction dollar volume was up 4% year-over-year.
Discover bests the four top Visa and MasterCard issuers with solid growth in outstandings. However, Discover’s gross dollar volume (GDV) rose 6% to $31.7 billion, compared to $28.1 billion in Q1/14 and $29.7 billion in Q2/13. Volume growth was lackluster compared to the Big 4 Visa and MasterCard issuers.
The PULSE network remains the key driver of payments transaction volume for Discover Financial Services (DFS), growing 5% year-on-year (Y/Y) in the first quarter (Q1/2014) to $41.9 billion, representing 54% of Discover’s network total volume. Overall, DFS’ network volume is up 4% Y/Y to $77.38 billion. The most robust payments business for DFS is its Network Partners segment, up 6% Y/Y in Q1/2014, followed by the Proprietary segment, up 3%. However, DFS continues to struggle with its Diners Club international segment, which slipped down 2% Y/Y in Q1/2014.
Discover reported net income of $631 million for 1Q/14, as compared to $673 million in 1Q/13. The company’s return on equity for the first quarter of 2014 was 23%. Revenue net of interest expense was up $86 million, or 4%, from the prior year to $2.1 billion. Total loans grew $3.5 billion, or 6%, from…