Discover Financial Services reported that its third -quarter profit increased by 43%year -on -year.This growth is mainly promoted by the increase in net interest incomeBangalore Stock Exchange. Net interest income reached 3.66 billion US dollars, an increase of 10%over the same period last year.
As one of the major credit card issuers in the United States, Discover Financial has benefited from the Federal Reserve ’s interest rate hikes to control inflation over the past four years, thereby increasing their interest income.However, the recent interest rate cut for the Bank of the United States may affect the interest income of banks and credit card companies in the next few quarters.Hyderabad Wealth Management
In addition to increased interest income, Discover Financial also benefits from the reduction of credit loss reserve.As of the quarter of September 30, the credit loss reserve fell to 1.47 billion US dollars, lower than the previous about $ 1.7 billion.
The company’s net profit soared to $ 928 million, that is, $ 3.69 per share, in contrast, the net profit reported in the same period last year was $ 647 million, that is, $ 2.59 per share.
While financial growth, Discover is in the process of the $ 35 billion acquisition proposal proposed by Capital One, which was announced in February.At present, the transaction is facing consumer legal challenges and has been strictly reviewed by some legislators.
Discover Financial, headquartered in Riverwoods, Illinois, continues to operate in these development. Its latest financial performance reflects the company’s strong quarterly season under the impact of favorable interest income trends and reducing potential loan loss reserve.Surat Wealth Management
Reuters contributes to this article.
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