Total Revenue

Down ~3%

Total Revenue in Q1 2025 fell from $5,671 million in Q1 2024 to $5,494 million, mainly reflecting a modest decline in its key driver, Digital Banking revenue, which decreased from $5,539 million to $5,357 million. " " " " This slight contraction suggests that while overall business volume remains strong, some market or pricing factors may have dampened revenue growth compared to the previous period.

Digital Banking Revenue

Modest Decline

Digital Banking revenue experienced a decrease from $5,539 million in Q1 2024 to $5,357 million in Q1 2025, contributing directly to the overall revenue drop. The decline indicates that despite its prominence as the core revenue stream, shifts in customer engagement or competitive pressures may have led to lower loan origination and fee volumes compared to the prior period. " "

Net Income

+257%

Net Income surged from $308 million in Q1 2024 to $1,104 million in Q1 2025, a dramatic 257% increase. This robust improvement is attributed to a combination of higher net interest income (an increase of $71 million), significant reductions in the provision for credit losses (a decrease of $253 million), and effective cost management that more than offset the rise in operating expenses. " "

Basic Earnings Per Share

Increase to $4.25

Basic EPS jumped from $1.10 in Q1 2024 to $4.25 in Q1 2025, mirroring the sizeable net income expansion. The EPS improvement results from both the increased profitability and relatively efficient management of shares outstanding, thereby translating earnings growth into a more pronounced per-share metric. " "

Long-term Borrowings

–29%

Long-term borrowings declined sharply by 29%, falling from $20,475 million in Q1 2024 to $14,538 million in Q1 2025. This notable deleveraging reflects a continuation of the company’s strategy observed in FY 2024 to reduce reliance on debt—driven by earlier moves such as the reduction in securitized debt and the sale of portfolios, setting a lower borrowing baseline for the current period. " "

Stockholders’ Equity

+29%

Stockholders’ Equity increased from $14,720 million in Q1 2024 to $18,963 million in Q1 2025 (approximately +29%), largely due to the strong retention of higher net income and reinvestment in the business. This robust equity growth underscores improved profitability and effective capital management relative to the lower base from the prior period. " "

Loan Growth

FY 2025

Expected to align more closely with pre-pandemic norms "

Not provided "

no current guidance

Sales and New Account Generation

FY 2025

Anticipated to play a larger role in driving growth "

Not provided "

no current guidance

Net Interest Margin

FY 2025

Expected to remain relatively consistent with the Q4 2024 level, though there may be some margin pressure due to increased new account generation "

Not provided "

no current guidance

Deposit Rates and Funding Mix

FY 2025

Declining deposit rates and an improved funding mix are expected to mitigate margin pressure "

Not provided "

no current guidance

Net Charge-Offs

FY 2025

Previously expected to peak and plateau, but a downward trend is beginning to be observed "

Not provided "

no current guidance

Financial Performance and Profitability

Q4 2024, Q3 2024, and Q2 2024 emphasized strong earnings, expanding net income, improved margins and EPS growth. " " " "

Q1 2025 reports robust performance with increased EPS (up 31%), growing net income (+30%), improved net interest margin and lower credit reserve balances. " "

Consistently strong performance with bullish sentiment maintained and further margin expansion in Q1.

Credit Performance and Metrics

Across Q4, Q3, and Q2 2024 discussions detailed mixed trends: rising net charge-offs in some quarters, improved delinquency rates in others, and active adjustments to reserve balances. " " "

Q1 2025 reflects stable metrics with a slight increase in net charge-offs (4.99%), improved card delinquency trends, and reduced reserve balances. " "

Stable credit profile with modest improvements in delinquency measures despite minor upticks in charge-offs.

Operating Expenses and Cost Management

Q4 2024, Q3 2024, and Q2 2024 showed notable increases driven largely by compensation, technology, and integration & compliance costs (ranging from 4% to 23% rises year-over-year). " " "

Q1 2025 shows minimal expense growth (only a 1% increase) with targeted increases in compensation and technology, while other expenses were reduced significantly. "

Moderation in expense growth indicating improved cost management relative to prior periods.

Discover Card Sales Decline and Consumer Spending Trends

Q4, Q3, and Q2 2024 consistently noted a decline in card sales (around 3%) attributed to credit tightening and cautious consumer behavior, though holiday sales and stabilized payment rates were observed in Q4. " " "

Q1 2025 reports a slightly less severe decline (2% drop) with stable customer spending, spend, payment and credit patterns remaining steady. " "

Slight easing in the downward trend in card sales with overall neutral consumer sentiment.

Strategic Initiatives (Sale of Student Loan Portfolio & Merger with Capital One)

Q2 2024 through Q4 2024 detailed the initiation and progress of the student loan sale (with gains and phased closings) and merger planning with Capital One, along with merger-related costs and regulatory milestones. " " " "

Q1 2025 emphasizes the impact of the student loan sale on margin expansion (115 bp improvement, adjusted net charge-offs) and confirms advanced merger steps (regulatory approvals, final earnings call signalling the end of current reporting). " "

Continued strategic transformation with accelerated integration and significant future impact on business operations.

Regulatory Risks and Internal Controls

Q2, Q3, and Q4 2024 provided extensive detail on compliance issues including card misclassification charges, increased regulatory reserves, settlement agreements, and efforts to improve internal controls. " " " "

Q1 2025 does not mention regulatory risks or changes to internal controls, focusing instead on forward-looking performance metrics. "

Reduced emphasis suggests that prior regulatory challenges may be resolving as focus shifts to merger completion and operational performance.

Loan Growth Expectations

Q2 2024 projected a low single-digit decline (when factoring the student loan sale), Q3 2024 estimated low to mid-single digit growth, and Q4 2024 expected growth to return closer to pre-pandemic norms. " "

Q1 2025 states total loans increased by 1% (adjusting for the student loan sale) while personal loans remained flat, reflecting a conservative underwriting stance. "

Stable yet cautious direction with minimal overall loan growth and continued conservative credit standards.

Earnings Call Format Changes

Q2, Q3, and Q4 2024 each noted that there would be no Q&A sessions post-remarks, with Investor Relations available for questions. " " "

Q1 2025 also confirms the no Q&A format following remarks from leadership. "

Consistently maintained format across periods, reflecting a stable communication approach.