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Bulletin: Discover Financial Services Inc. Ratings Unchanged Following Third-Quarter Results Sep 11
Standard & Poors, Sep 2011
Abstract
TORONTO (Standard & Poor's) Sept. 23, 2011--Standard & Poor's Ratings Services said today that its ratings on Discover Financial Services Inc. (Discover; BBB-/Stable/--) remain unaffected following the company's strong third-quarter results, which were consistent with expectations. Net income was $649 million, up 8% from the previous quarter. Improved earnings were primarily attributable to a substantial 43% drop in loan-loss provisioning. Credit card receivables/sales volume increased modestly from the prior quarter. The net interest margin improved 11 basis points (bps) sequentially to 9.26%, as the company continued to benefit from low cost funding. Credit performance improved significantly in the quarter. This was reflected by the net charge-off rate declining further (by 99 bps) to 3.43%, and early delinquencies easing 33 bps...
Companies mentioned in this report are: Discover Financial Services Inc.
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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