Discover Financial Services reported net income of $1.1 billion or $4.25 per diluted share for the first quarter of 2025, as compared to a net income of $851 million or $3.25 per diluted share for the first quarter of 2024. “Discover’s solid first quarter financial performance benefited from a strong net interest margin and positive credit trends,” said Michael Shepherd, Discover’s Interim CEO and President. “These results reflect our good execution and the strength of our business model. We are pleased that Capital One has received all required approvals and look forward to completing our merger.” Digital Banking pretax income of $1.4 billion for the quarter was $316 million higher than the prior year period reflecting a lower provision for credit losses and increased revenue net of interest expense partially offset by increased operating expenses. Total loans ended the quarter at $117.4 billion, down 7% year-over-year as a result of the student loan sale, and down 3% sequentially due to seasonal trends. Adjusting for the sale, total loans were up 1% versus the prior year period. Credit card loans and Personal loans ended the quarter relatively flat compared to last year at $99.0 billion and $10.1 billion, respectively. Payment Services pretax income of $91 million was up $9 million year-over-year, or 11% primarily due to volume growth in PULSE and Diners Club as well as lower expenses. Payment Services volume was $96 billion, down 4% from the prior year period. PULSE dollar volume was up 3% driven by increased debit transaction volume. Diners Club volume was up 18% year-over-year reflecting strength in India and Israel, and Network Partners volume decreased 73% from the prior year reflecting the anticipated exit of a partner.
- Discover Network volume was down 1% reflecting a modest slowdown in Discover card sales
- PULSE volume was up 3% due to an increase in debit transaction volume
- Diners Club volume was up 18% YOY driven by growth in India and Israel
- Network Partners was down 73% YOY reflecting the anticipated exit of a partner