Discover Financial Services(DFS) PYMNTS.com·2024-10-17 19:29Merger and Integration Progress - Capital One continues to lead merger-related activities with applications under regulatory review and integration planning advancing well [1] - Discover Financial Services' third-quarter earnings results indicate the acquisition by Capital One is on track [1] Consumer Behavior and Spending Trends - Payments volumes decreased by 4% to 82.6 billion, driven by higher debit transaction volumes [1] - Card receivables grew 3% year over year due to a lower payment rate, offset by decreased sales volume [1] - Payment rates declined 1% from last year but remain 0.7% above pre-pandemic levels [1] - Consumers exhibit cautious behavior, with slower and stable spending patterns as households adjust to inflation and manage budgets [2] Debt Consolidation and Credit Performance - Personal loans increased 9% year over year, driven by strong demand for debt consolidation [3] - Total company-wide charge-offs were 4.9%, up 1.3% year over year [3] - Credit card net charge-off rate was 5.28%, with 30+ day delinquency rate at 3.84%, up 0.43% year over year [3] - Personal loan net charge-off rate rose to 4.01%, up 1.4 basis points from the prior year [3] - The company tightened its net charge-off expectations to 4.9%-5%, down from the previous range of 4.9%-5.2% [3] - Loan growth is expected to decline by low- to mid-single-digit percentages, revised from low-single-digit percentage points [3] Market Reaction - Discover shares rose 2% in intraday trading following the earnings call [4]