Best credit cards for weddings in 2025 Learn more Chase Freedom Unlimited® Annual fee $0 Welcome offer Earn a $200 bonus after you spend $500 in your first 3 months Introductory Purchases APR 0% Intro APR on Purchases for 15 months Ongoing Purchases APR 18.99% - 28.49% Variable Introductory Balance Transfer APR 0% Intro APR on Balance Transfers for 15 months Ongoing Balance Transfer APR 18.99% - 28.49% Variable Rewards rate Enjoy 5% cash back on travel purchased through Chase Travel℠3% cash back on dru ...

Group 1 - Capital One's acquisition of Discover for $35 billion has been finalized, creating the largest credit card issuer in the U.S. by loan volume [1] - The merger is expected to enhance product offerings and consumer experiences by combining the strengths of both companies [2] - The acquisition was approved by regulatory bodies, including the Federal Reserve and the Office of the Comptroller of the Currency [3] Group 2 - Concerns were raised by Democratic lawmakers regarding the potential negative impact of the acquisition on consumers and small businesses [4] - The lawmakers argued that merchants would be forced to accept terms dictated by Capital One due to its dominant market position [5] - The merger is anticipated to provide Capital One with increased scale and capabilities, allowing it to compete more effectively against Visa and Mastercard [6] Group 3 - Capital One aims to build a competitive payments network through this acquisition, enhancing its position in the payments industry [7] - In a separate development, Capital One has agreed to settle a lawsuit for $455 million related to misleading interest rate promises on its savings accounts [7]

Summary of Key Points from the Conference Call Industry Overview - **Healthcare Sector**: Anticipation of an Executive Order on drug pricing expected next week, with a probability of over 70% for the implementation of Most Favored Nation (MFN) pricing to reduce the disparity between US and international drug prices [3][9] - **Transportation and Logistics**: Expected reduction in shipments due to tariffs, but supply chain disruptions may provide some offset. Favorable outlook for specific companies like XPO, NSC, and CP, while UPS and SAIA appear oversold [4] Company-Specific Insights - **Alphabet Inc. (GOOGL)**: Notable shift in search dynamics with the first-ever decline in Safari searches, raising concerns about AI search potentially replacing traditional search methods. However, long-term monetization of AI is expected to ramp up [2][27] - **Microsoft Corporation (MSFT)**: Azure reported a 35% year-over-year revenue growth, with a 34% increase in backlog, outperforming Amazon's AWS and Google's GCP. Combined cloud backlog growth of 33% indicates strong core demand despite AI capacity constraints [5][27] - **Tesla, Inc. (TSLA)**: Focus on Robotaxi and affordable model launches, but concerns over tariffs and execution risks contribute to share price volatility [6][27] - **Walmart Inc. (WMT)**: Anticipated Q1 sales are expected to be in line or slightly better, but caution is advised due to product mix and potential impacts on EBIT growth [5][27] - **Capital One Financial Corporation (COF)**: Continued performance exceeding expectations, with FY27 EPS estimates raised to approximately $25. Merger synergies of $2.7 billion expected to phase in from Q2 [7][27] - **MP Materials**: Potential factory closures in the US due to the absence of rare earth magnet flows from China, impacting industries such as aerospace and electric vehicles [7][27] - **GeneDx**: Management confidence in over 30% volume growth for NICU genetic diagnostics this year, with a compelling valuation at 4x projected 2026 revenues [8][27] Market Dynamics - **Quant Strategy**: Increasing EPS risk indicated by Q1 earnings beats and misses, with the Mag 7 model yielding a cumulative long-short return of 10.5% since its launch [2] - **Russell Rebalance**: Notable buy/sell pressure on specific stocks leading into the June 27 rebalance, with BAM, FLUT, and HWM among the top gainers, while SSB and HQY are under pressure [4] Additional Considerations - **Tariffs and Supply Chain**: The impact of tariffs on shipments and the potential for redirected flows to mitigate some negative effects [4] - **AI and Search Trends**: The evolving landscape of search engines and the implications of AI on traditional search methods [2] This summary encapsulates the critical insights and data points from the conference call, providing a comprehensive overview of the current state of the healthcare and technology sectors, along with specific company performances and market dynamics.

[Part I FINANCIAL INFORMATION](index=3&type=section&id=Part%20I%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Q1 2025 financial statements report net income of $1.1 billion and diluted EPS of $4.25, with total assets at $147.9 billion Condensed Consolidated Statements of Financial Condition (Balance Sheet) | (dollars in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$147,914** | **$147,640** | | Net loan receivables | $109,295 | $112,795 | | Total deposits | $108,220 | $107,009 | | Long-term borrowings | $14,538 | $16,253 | | **Total Liabilities** | **$128,951** | **$129,714** | | **Total Stockholders' Equity** | **$18,963** | **$17,926** | Condensed Consolidated Statements of Income | (dollars in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net interest income | $3,558 | $3,487 | | Provision for credit losses | $1,244 | $1,497 | | Total other income | $693 | $673 | | Total other expense | $1,563 | $1,544 | | **Net income** | **$1,104** | **$851** | | **Diluted EPS** | **$4.25** | **$3.25** | Condensed Consolidated Statements of Cash Flows | (dollars in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,132 | $1,843 | | Net cash provided by investing activities | $3,006 | $358 | | Net cash (used for) provided by financing activities | ($802) | $514 | | **Net increase in cash, cash equivalents and restricted cash** | **$4,336** | **$2,715** | [Note 1: Background and Basis of Presentation](index=9&type=section&id=1.%20Background%20and%20Basis%20of%20Presentation) Discover, a digital banking and payment company, is proceeding with a $35.3 billion merger with Capital One, expected to close by May 2025 - On February 19, 2024, Discover entered into a merger agreement with Capital One Financial Corporation in an all-stock transaction valued at **$35.3 billion**[28](index=28&type=chunk) - The merger with Capital One received all required regulatory approvals as of April 18, 2025, and is expected to close on or around May 18, 2025[29](index=29&type=chunk) - The company completed the sale of its private student loan portfolio during the fourth quarter of 2024[27](index=27&type=chunk) [Note 3: Loan Receivables](index=13&type=section&id=3.%20Loan%20Receivables) Total loan receivables decreased to $117.4 billion, with a $215 million allowance release due to improved credit quality and seasonal declines Loan Receivables Composition (in millions) | Loan Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Credit card loans | $99,027 | $102,786 | | Personal loans | $10,096 | $10,314 | | Home loans | $8,223 | $7,963 | | **Total loan receivables** | **$117,403** | **$121,118** | | Allowance for credit losses | ($8,108) | ($8,323) | | **Net loan receivables** | **$109,295** | **$112,795** | Allowance for Credit Losses Roll-Forward (Q1 2025, in millions) | Description | Amount | | :--- | :--- | | Balance at Dec 31, 2024 | $8,323 | | Provision for credit losses | $1,244 | | Net charge-offs | ($1,459) | | **Balance at Mar 31, 2025** | **$8,108** | - The **$215 million** release in the allowance for credit losses was primarily driven by a seasonal decline in receivables and improved credit quality in the credit card portfolio, partially offset by changes in macroeconomic forecasts[52](index=52&type=chunk) Delinquency Rates (30+ Days Past Due) | Loan Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Credit card loans | 3.66% | 3.84% | | Personal loans | 1.68% | 1.69% | | Home loans | 1.22% | 1.23% | [Note 11: Capital Adequacy](index=25&type=section&id=11.%20Capital%20Adequacy) DFS and Discover Bank met all Basel III capital requirements as of March 31, 2025, with DFS reporting a 14.7% CET1 ratio Capital Ratios as of March 31, 2025 | Ratio | Entity | Actual | Minimum Requirement | Well-Capitalized Requirement | | :--- | :--- | :--- | :--- | :--- | | **CET1 Capital Ratio** | DFS | 14.7% | ≥4.5% | N/A | | | Discover Bank | 11.9% | ≥4.5% | ≥6.5% | | **Total Capital Ratio** | DFS | 17.1% | ≥8.0% | ≥10.0% | | | Discover Bank | 14.1% | ≥8.0% | ≥10.0% | | **Tier 1 Leverage Ratio** | DFS | 12.8% | ≥4.0% | N/A | | | Discover Bank | 9.7% | ≥4.0% | ≥5.0% | - The company's three-year phase-in for the regulatory capital impact of the Current Expected Credit Losses (CECL) methodology ended on December 31, 2024[105](index=105&type=chunk) [Note 13: Litigation and Regulatory Matters](index=29&type=section&id=13.%20Litigation%20and%20Regulatory%20Matters) The company addresses a $1.246 billion card product misclassification liability, with $250 million in regulatory penalties and ongoing SEC investigation - The counterparty restitution liability for the card product misclassification was **$1.246 billion** as of March 31, 2025[135](index=135&type=chunk)[136](index=136&type=chunk) - In April 2025, the FDIC and Federal Reserve assessed combined civil money penalties of **$250 million** related to the card product misclassification, fully accrued as of September 30, 2024[136](index=136&type=chunk) - The company is cooperating with an SEC investigation into the card product misclassification matter and believes additional losses are probable but cannot be reasonably estimated at this time[137](index=137&type=chunk) - The estimated range of reasonably possible losses for all legal and regulatory proceedings, in excess of accrued amounts, is up to **$60 million** as of March 31, 2025[128](index=128&type=chunk) [Note 16: Segment Disclosures](index=38&type=section&id=16.%20Segment%20Disclosures) The Digital Banking segment reported $1.35 billion in Q1 2025 pre-tax income, while Payment Services generated $91 million Segment Income Before Income Taxes (in millions) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Digital Banking | $1,353 | $1,037 | | Payment Services | $91 | $82 | | **Total** | **$1,444** | **$1,119** | - The Digital Banking segment includes Discover-branded credit cards, personal loans, home loans, and deposit products[170](index=170&type=chunk) - The Payment Services segment includes the PULSE network, Diners Club, and the Network Partners business[170](index=170&type=chunk) [Note 18: Subsequent Events](index=40&type=section&id=18.%20Subsequent%20Events) Subsequent events include $250 million in regulatory penalties assessed in April 2025 and the Capital One merger receiving final regulatory approval - On April 16, 2025, the FDIC assessed a **$150 million** penalty, and on April 18, 2025, the Federal Reserve assessed a **$100 million** penalty, both fully accrued as of September 30, 2024[175](index=175&type=chunk) - On April 18, 2025, the Federal Reserve and the OCC approved the pending merger with Capital One[176](index=176&type=chunk) [Management's Discussion and Analysis (MD&A)](index=41&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A highlights a 30% net income increase to $1.1 billion, driven by lower credit loss provisions, improved loan quality, and strong liquidity Q1 2025 vs Q1 2024 Performance Summary | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income | $1.1B | $851M | +30% | | Diluted EPS | $4.25 | $3.25 | +31% | | Provision for Credit Losses | $1.24B | $1.50B | -17% | | Net Interest Income | $3.56B | $3.49B | +2% | - The increase in net income was primarily driven by a lower provision for credit losses and decreased interest expense, partially offset by lower interest income from a smaller average loan portfolio[214](index=214&type=chunk)[217](index=217&type=chunk) - The company has paused share repurchases through the completion of the merger with Capital One, in accordance with the merger agreement[289](index=289&type=chunk)[306](index=306&type=chunk) [Regulatory Environment and Developments](index=42&type=section&id=Regulatory%20Environment%20and%20Developments) The company navigates evolving regulatory changes, including Basel III and long-term debt requirements, with capital plan adjustments due to the Capital One merger - Proposed amendments to Basel III rules could significantly revise risk-based capital requirements for banks with assets over **$100 billion**, including DFS[186](index=186&type=chunk) - A separate proposal would require DFS to maintain minimum levels of outstanding long-term debt[187](index=187&type=chunk) - Due to the pending merger with Capital One, the company resubmitted its capital plan and must receive prior approval from the Federal Reserve for capital distributions[190](index=190&type=chunk)[282](index=282&type=chunk) [Critical Accounting Estimates](index=47&type=section&id=Critical%20Accounting%20Estimates) Allowance for credit losses is a critical estimate, with sensitivity analysis showing a $487 million increase under the most adverse economic scenario - The allowance for credit losses is a critical accounting estimate due to the significant judgment involved, particularly in selecting macroeconomic forecasts[207](index=207&type=chunk)[209](index=209&type=chunk) - The Q1 2025 allowance was based on a macroeconomic forecast projecting a weighted average unemployment rate peaking at **4.88%** in Q2 2026 and real GDP growth of **1.69%** in 2025[230](index=230&type=chunk) - Sensitivity analysis indicates that using the most adverse economic scenario would increase the allowance for credit losses by approximately **$487 million**[211](index=211&type=chunk) [Loan Quality](index=51&type=section&id=Loan%20Quality) Loan quality improved in Q1 2025, with credit card net charge-off rates decreasing to 5.47% and delinquency rates falling to 3.66% Net Charge-off Rates (Annualized) | Loan Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Credit card loans | 5.47% | 5.66% | | Personal loans | 4.21% | 4.02% | Delinquency Rates (30+ Days) | Loan Type | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Credit card loans | 3.66% | 3.84% | | Personal loans | 1.68% | 1.69% | - The provision for credit losses decreased to **$1.24 billion** in Q1 2025 from **$1.53 billion** in Q1 2024 (excluding unfunded commitments adjustment), driven by improved credit quality in the credit card portfolio[228](index=228&type=chunk)[233](index=233&type=chunk) [Liquidity and Capital Resources](index=55&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $84.6 billion in total sources and a 14.7% CET1 ratio, pausing share repurchases due to the merger Liquidity Sources (in billions) | Source | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Liquidity portfolio (Cash, Investments) | $30.2 | $27.3 | | Private asset-backed securitizations (undrawn) | $3.5 | $3.5 | | FHLB of Chicago (undrawn) | $4.9 | $4.7 | | Federal Reserve discount window (undrawn) | $46.0 | $46.5 | | **Total Liquidity Sources** | **$84.6** | **$82.0** | - Primary funding sources include **$92.4 billion** in direct-to-consumer deposits and **$15.8 billion** in brokered deposits[243](index=243&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.70 per common share**, but Discover common stockholders are expected to receive the Capital One dividend instead due to the expected merger closing date[286](index=286&type=chunk) - Share repurchases have been paused through the completion of the merger with Capital One[289](index=289&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=64&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate risk, with a 100 basis point rate increase estimated to raise net interest income by $52 million Estimated 12-Month Impact on Net Interest Income from a Parallel Rate Shift | Basis Point Change | At March 31, 2025 ($M) | At Dec 31, 2024 ($M) | | :--- | :--- | :--- | | +100 | $52 | $52 | | -100 | ($50) | ($25) | - The company's primary market risk exposure is from changes in interest rates, which affect net interest income[291](index=291&type=chunk) - The company uses interest rate swaps to manage the repricing characteristics of its assets and liabilities[293](index=293&type=chunk) [Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[300](index=300&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter[301](index=301&type=chunk) [Part II OTHER INFORMATION](index=67&type=section&id=Part%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=67&type=section&id=Item%201.%20Legal%20Proceedings) Legal proceedings are detailed in Note 13 of the condensed consolidated financial statements - For a description of legal proceedings, see Note 13: Litigation and Regulatory Matters to the condensed consolidated financial statements[304](index=304&type=chunk) [Risk Factors](index=67&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from the prior Annual Report on Form 10-K - No material changes to risk factors were reported for the period[305](index=305&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=67&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Share repurchases are paused due to the Capital One merger, with 144,509 shares withheld for employee tax obligations - Share repurchases have been paused through the completion of the merger with Capital One[306](index=306&type=chunk) Employee Transactions (Q1 2025) | Description | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Employee transactions (tax withholding) | 144,509 | $200.78 | [Other Information](index=67&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No directors or executive officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter[312](index=312&type=chunk)

Core Insights - Discover Financial Services has received regulatory approval for its acquisition by Capital One Financial and reported strong quarterly financial results [1][2] - Discover's stock price increased by over 13% week to date following these developments [1] Financial Performance - For the first quarter of 2025, Discover reported total net revenue of $4.25 billion, a 2% increase year-over-year [3] - GAAP net income rose by 30% to slightly over $1.1 billion, translating to earnings of $4.25 per share [3] - Both revenue and net income figures exceeded consensus analyst estimates, with net revenue expected at $4.23 billion and GAAP net income at $3.35 per share [4] Management Commentary - Interim CEO Michael Shepherd attributed the strong performance to a robust net interest margin and positive credit trends [4] Future Outlook - Following the acquisition approval, significant movement in Discover's shares is not anticipated until the deal closes on May 18, with the focus shifting to how Capital One integrates Discover into its operations [4]

Core Insights - Discover reported stable consumer financial habits and improving credit metrics in Q1, including lower 30+ day delinquency rates [1][4] - The acquisition by Capital One is expected to enhance competition in payment networks and expand product offerings [2][3] Financial Performance - Discover's first-quarter earnings showed improving credit metrics, increased debit spending, and higher deposits ahead of the Capital One acquisition [2] - PULSE network volumes increased by 3% to $81.3 billion, driven by growth in debit spending [3] - Card sales were down 2% year over year, with sales volume at $49.3 billion [6][7] - Ending loan balances in the card business were $99 billion, down from $102.8 billion in the previous quarter [6] Consumer Behavior - Discover's customer behavior was stable, evidenced by spending, payment, and credit trends [4] - The 30+ day delinquency rate decreased by 0.18% compared to the previous quarter [4] Provision and Charge-offs - Discover's provision expense declined by $253 million, indicating a stable credit performance [5] - Personal loan balances remained flat at $10.1 billion, with net charge-offs at 4.21% [7] Deposits and Funding - Average consumer deposits increased by 6% year over year and 1% sequentially, with direct-to-consumer deposits growing by $2 billion [8] - Direct-to-consumer deposits now account for 74% of total funding [8] Segment Performance - The Diners Club segment showed robust growth, with volumes at $12 billion, up 18% year over year, driven by expansion in India and Israel [8]

Financial Performance - Discover Financial Services reported a 31% year-over-year increase in earnings per share for Q1 2025 [4][12] - Net income reached $1.1 billion, reflecting a 30% increase from the previous year [4][12] - The net interest margin improved to 12.18%, up 115 basis points year-over-year and 22 basis points sequentially [4][12] Credit and Loan Metrics - Card receivables decreased by 0.5% year-over-year, while Discover Card sales fell by 2% compared to the prior year [4][12] - Total net charge-offs were 4.99%, which is 7 basis points higher than the previous year and up 35 basis points from the prior quarter [4][12] - The thirty-plus day delinquency rate improved compared to the previous quarter, indicating stable credit performance [5][12] Deposits and Funding - Average consumer deposits increased by 6% year-over-year and 1% sequentially, with direct-to-consumer deposit balances growing by $2 billion [4][12] - Direct-to-consumer deposits now account for 74% of total funding, while average deposit rates were reduced by 22 basis points [12] Merger with Capital One - The merger with Capital One is expected to close on May 18, 2025, following approvals from regulatory bodies and shareholders [10][12] - Due to the merger timing, Discover shareholders will receive dividends declared on Capital One shares instead of Discover's own dividends [6][12] Operational Expenses - Total operating expenses increased by 1% year-over-year, with compensation costs rising by 10% due to higher wages and benefits [12] - Information processing expenses also increased by 10% due to technology investments [12] Capital Ratios - The Common Equity Tier 1 Ratio stood at 14.7%, up 60 basis points compared to the prior quarter, indicating strong capital levels [12]

Core Viewpoint - Discover Financial Services (DFS) reported strong first-quarter 2025 results, with adjusted earnings per share of $4.25, exceeding estimates by 28.8% and showing a 31% year-over-year increase [1] Financial Performance - Revenues, net of interest expenses, reached $4.3 billion, a 2% year-over-year increase, surpassing the consensus estimate by 0.7% [1] - Interest income decreased by 3% year over year to $4.8 billion, missing the estimate of $5 billion, while interest expense fell 15% year over year to $1.2 billion, lower than the estimate of $1.4 billion [3] - Non-interest income grew by 3% year over year to $693 million, beating the consensus estimate of $691.2 million but falling short of the estimate of $708.1 million [3] - Total operating expenses were $1.6 billion, up 1% year over year, but lower than the estimate of $1.8 billion [4] - Net income climbed 30% year over year to $1.1 billion [4] Segment Performance Digital Banking - Pretax income in the Digital Banking segment increased by 30% year over year to $1.4 billion, exceeding both the consensus estimate of $1.06 billion and the estimate of $1.04 billion [5] - Provision for credit losses decreased by 17% year over year to $1.2 billion [5] - Total loans decreased by 7% year over year to $117.4 billion, with net interest income increasing by 2% year over year to $3.56 billion [6] Payment Services - The Payment Services segment reported a pretax income of $91 million, an 11% year-over-year increase, surpassing the consensus estimate of $83.5 million but missing the estimate of $99 million [7] - Payment Services volume declined by 4% year over year to $96 billion, with PULSE dollar volume growing by 3% and Diners Club volume advancing by 18% [8] Financial Position - As of March 31, 2025, total assets were $147.9 billion, a 0.2% increase from the end of 2024 [9] - The liquidity portfolio amounted to $30.2 billion, improving by 10.7% from December 31, 2024 [9] - Total liabilities decreased by 0.6% to $129 billion, while total equity increased by 5.8% to $19 billion [10] Merger and Dividend Update - Capital One Financial Corporation secured regulatory approvals for its merger with DFS, expected to close around May 18, 2025 [11] - A quarterly cash dividend of 70 cents per share was sanctioned, payable on June 5, 2025, but DFS shareholders may not receive this dividend due to the merger [11] 2025 Guidance - Management anticipates loan growth to follow pre-pandemic trends, with net interest margin expected to remain consistent with the fourth-quarter 2024 level of 11.96% [12]

Financial Data and Key Metrics Changes - Net income for Q1 2025 was $1.1 billion, a 30% increase from the prior year [8] - Earnings per share increased by 31% compared to last year, driven by a healthy net interest margin and good credit performance [6] - Provision expense declined by $253 million, reflecting a reduction in credit reserve balance and lower net charge offs [8] - Net interest margin ended the quarter at 12.18%, up 115 basis points from the prior year [9] Business Line Data and Key Metrics Changes - Card receivables were down 5% year over year due to modestly lower sales [9] - Discover card sales decreased by 2% compared to the prior year, attributed to past credit tightening actions [10] - Personal loan balances remained flat, with robust demand but slowed new originations due to conservative underwriting and increased competition [10] - Non-interest income increased by $20 million or 3%, driven by an increase in net discount and interchange revenue [12] Market Data and Key Metrics Changes - Average consumer deposits were up 6% year over year and 1% sequentially [11] - Direct to consumer deposit balances grew by $2 billion in the quarter, now accounting for 74% of total funding [11] - The thirty plus day delinquency rate decreased by 18 basis points compared to last quarter [7] Company Strategy and Development Direction - The merger with Capital One has been approved by regulatory bodies and is expected to close on May 18, 2025, which is anticipated to enhance competition in payment networks and broaden product offerings [5][6] - The company aims to increase resources devoted to innovation and security through the merger [6] Management Comments on Operating Environment and Future Outlook - Management is closely monitoring economic developments and consumer health amid increasing macroeconomic uncertainty [7] - The company has not provided an update on 2025 trends due to the upcoming merger [16] Other Important Information - The common equity Tier one ratio for the period was 14.7%, up 60 basis points compared to the prior quarter [15] - A quarterly cash dividend of $0.70 per share was declared, but shareholders will receive dividends from Capital One post-merger [16] Summary of Q&A Session - There was no question and answer session following the remarks [4]

Exhibit 99.3 1Q25 Financial Results April 23, 2025 2 1Q25 Highlights 3 • 1Q25 net income of $1.1Bn; diluted EPS of $4.25, and return on equity of 24% • Financial performance remains solid ◦ Revenue growth from margin expansion ◦ Good credit performance highlighted by a reserve release and lower net charge-offs ◦ Strong capital position; CET1 ratio of 14.7% • Prudently managing our business ◦ Customer trends are stable ◦ Monitoring economic developments • Secured all necessary approvals for our pending merge ...