Categories
Stocks

Discover Financial Services DFS

Reading Time: 2 minutes

(Update July 4) Did not see any filings at SEC web site but got Q2 2007 earning at Discover’s own web site. Quote below.

“Riverwoods, IL, June 20, 2007 – Discover Financial Services (NYSE: DFSWI) today reported net income of $209 million for the quarter ended May 31, 2007, compared with record net income of $343 million for the second quarter of 2006. The second quarter of 2007 included approximately $20 million of pretax costs related to the spin-off from Morgan Stanley that will take place on June 30, 2007. The second quarter of 2006 benefited from low bankruptcy filings in the United States following the bankruptcy legislation that became effective in October 2005. Return on managed receivables for the second quarter of 2007 was 1.65%, down from 2.90% in the second quarter of 2006.

Managed credit card receivables were $51.4 billion as of May 31, 2007 reflecting growth of 6% over last year. Sales volume of $25.4 billion was up 6% from the second quarter of 2006. Total transactions processed on the Discover® and PULSE® networks grew 14% over the same period last year.

Credit quality remained strong with the managed over 30 day delinquency rate of 3.12% at an all time low reflecting record low U.S. delinquencies partially offset by higher delinquencies in the United Kingdom. The managed net charge-off rate for the quarter was 4.23%, up 93 basis points from the same period last year.”

I also read its outlook, I think we can wait it go down a little more (24?) to pull the trigger.