Core Insights - Discover Financial Services reported a 30% year-over-year increase in net income for the first quarter, reaching $1.1 billion, attributed to strong net interest margin and positive credit trends [1] - The net interest margin improved by 115 basis points to 12.18%, primarily due to lower funding costs [2] - The provision for credit losses decreased by $253 million year-over-year to $1.2 billion, supported by a favorable reserve change of $190 million and a $97 million reduction in net charge-offs [2] Credit Performance - Credit card net charge-offs and delinquency rates showed improvement year-over-year, while personal loan net charge-offs remained stable quarter-over-quarter [3] - Total loan net charge-offs met expectations, with delinquency rates reflecting a downward trend [3] Merger Developments - The earnings release coincided with the announcement that Capital One received regulatory approvals to complete its merger with Discover, expected to close around May 18 [4] - Capital One's CEO stated that the merger will create a leading consumer banking and payments platform [5]