Discover Financial Services(US:DFS)2025-01-23 13:50Financial Performance - The company's 2024 net income reached $4.5 billion, with a diluted EPS of $17.72 and a return on equity of 28%[8] - In 4Q24, net income was $1.3 billion, resulting in a diluted EPS of $5.11[8] - Revenue net of interest expense increased by 14% to $4.8 billion, driven by higher non-interest income, including a $381 million gain from the private student loan sale[12] - Net interest income increased by $162 million year-over-year, primarily due to margin expansion[18, 20] Key Metrics & Trends - Card receivables grew by an average of 6% in 2024, while ending consumer deposits increased by 8%[8] - Total network volume increased by 6%[8] - The net interest margin (NIM) on loans was 11.96%, up 58 bps quarter-over-quarter, mainly due to product mix and investment of student loan sale proceeds[14] - Total loan growth reached $102.8 billion in 4Q24[14] - The Common Equity Tier 1 (CET1) capital ratio increased to 14.1% due to the student loan sale and core earnings generation[30] Expenses & Credit Quality - Operating expenses increased by $67 million, or 4%, due to higher employee compensation, professional fees, and information processing costs[12] - The company's operating efficiency was 39%, a decrease of 380 bps[23] - Credit card net charge-offs improved, while delinquencies remained stable[24]