RIVERWOODS, Ill.--(BUSINESS WIRE)--Discover Financial Services (NYSE: DFS - News) today reported net income for the second quarter of 2008 of $234 million, or $.48 per share, as compared to $209 million, or $.44 per share, in the second quarter of 2007. Reported results included income from continuing operations of $202 million, or $.42 per share, and $32 million from discontinued operations related to the company’s International Card segment.Second Quarter Highlights
Managed loans grew 2% to $47.8 billion; Discover Card sales grew 2% to $22.5 billion. Including non-credit card loans, the second quarter managed net charge-off rate was 4.99% and the managed over 30 days delinquency rate was 3.81%. The Third-Party Payments segment debit and credit volume grew 33% to $29.4 billion. Non-interest expenses decreased 3% from last year. The company completed the sale of the Goldfish business in the United Kingdom. The company agreed to acquire Diners Club International, with an expected closing in July.
“Despite the challenging economy, Discover delivered solid results this quarter,” said David Nelms, chief executive officer of Discover Financial Services. “We grew managed loans and revenues within our U.S. Card segment and maintained strong credit quality. We are also very pleased with the performance of our Third-Party Payments segment, which delivered record network volume of $29 billion, an increase of 33% from last year. With the pending acquisition and integration of Diners Club International, we expect to significantly improve our competitive position in this segment through global reach and by accelerating growth in our payments network revenues."
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