Discover Financial Services(DFS) - 2024 Q4 - Annual Results

Financial Performance - Net income for Q4 2024 increased by 253% to $1.291 billion compared to Q4 2023[1] - Total revenue net of interest expense for 2024 grew by 13% to$ 17.910 billion compared to 2023[1] - Basic EPS increased by 252% to $5.11 in Q4 2024 compared to Q4 2023[1] - Total non-interest income grew by 59% to$ 1.129 billion in Q4 2024 compared to Q4 2023[1] - Digital Banking segment's net interest income increased by 5% to $3,630 million in Q4 2024 compared to Q4 2023[7] - Non-interest income in the Digital Banking segment surged by 68% to$ 1,001 million in Q4 2024[7] - Total revenue net of interest expense for Digital Banking grew by 14% to $4,631 million in Q4 2024[7] - Payment Services segment's non-interest income rose by 9% to$ 128 million in Q4 2024[7] Loan and Credit Metrics - Total loan receivables decreased by 6% to $121.118 billion in Q4 2024 compared to Q4 2023[2] - Total Loans decreased by 4% to$ 120,764 million in Dec 31, 2024 compared to Dec 31, 2023[4] - Credit Card Loans increased by 1% to $101,059 million in Dec 31, 2024 compared to Dec 31, 2023[4] - Private Student Loans decreased by 86% to$ 1,458 million in Dec 31, 2024 compared to Dec 31, 2023[4] - Credit card loans ending balance increased by 1% to $102,786 million in Q4 2024 compared to$ 102,259 million in Q4 2023[5] - Private student loans were fully divested, resulting in a 100% decrease to $0 in Q4 2024 compared to$ 10,352 million in Q4 2023[6] - Personal loans ending balance increased by 5% to $10,314 million in Q4 2024 compared to$ 9,852 million in Q4 2023[6] - Net principal charge-off rate for personal loans increased by 146 bps to 4.06% in 2024 compared to 2.60% in 2023[6] - Gross principal charge-off rate increased by 163 bps to 5.80% in 2024 compared to 4.17% in 2023[5] - Net principal charge-off dollars increased by 46% to $5,911 million in 2024 compared to$ 4,042 million in 2023[5] - Delinquency rate (30 or more days) remained stable at 3.48% in 2024 compared to 3.45% in 2023[5] Liquidity and Capital - Total liquidity increased by 18% to $81.993 billion in Q4 2024 compared to Q4 2023[2] - Total equity increased by 26% to$ 17.926 billion in Q4 2024 compared to Q4 2023[2] - Total Common Equity increased by 28% to $16,870 million in Dec 31, 2024 compared to Dec 31, 2023[3] - Total Risk Based Capital Ratio improved to 16.5% in Dec 31, 2024 from 13.2% in Dec 31, 2023[3] - Tangible Common Equity (TCE) stood at$ 16,615 million at the end of Q4 2024[12] - Tangible Common Equity per share was $66.10 at the end of Q4 2024[12] Interest and Margin Metrics - Net interest margin improved by 31 basis points to 11.38% in 2024[1] - Net Interest Margin improved to 11.96% in Dec 31, 2024 from 10.98% in Dec 31, 2023[4] - Net Yield on Interest-earning Assets increased to 9.57% in Dec 31, 2024 from 9.30% in Dec 31, 2023[4] - Total Interest-bearing Deposits increased by 2% to$ 106,720 million in Dec 31, 2024 compared to Dec 31, 2023[4] Asset and Liability Metrics - Total assets decreased by 3% to $147.640 billion in Q4 2024 compared to Q4 2023[2] - Tangible Assets decreased by 3% to$ 147,385 million in Dec 31, 2024 compared to Dec 31, 2023[3] - Cash and Investment Securities grew by 32% to $29,724 million in Dec 31, 2024 compared to Dec 31, 2023[4] - Average loans increased by 6% to$ 125,638 million in 2024 compared to $118,311 million in 2023[5] Credit Loss Provisions - Provision for credit losses decreased by 37% to$ 1.202 billion in Q4 2024 compared to Q4 2023[1] - Provision for credit losses in Digital Banking decreased by 37% to $1,202 million in Q4 2024[7] Payment Services and Transactions - Total transactions processed on networks increased by 5% to 3,440 million in Q4 2024[7] - PULSE Network volume grew by 7% to$ 84,900 million in Q4 2024[7] - Total payment services volume increased by 4% to $102,416 million in Q4 2024[7] - Discover Card sales volume decreased by 3% to$ 212,251 million in 2024 compared to $217,914 million in 2023[5]