Q3 2024 Earnings Summary
Reported on Jan 4, 2025
Pre-Earnings Price$171.33Open (Dec 23, 2024)
Post-Earnings Price$176.58Last close (Dec 24, 2024)
Price Change
$5.25(+3.06%)
- Strong financial performance in Q3 2024, with net income of $965 million, up 41% from the prior year, driven by revenue growth and net interest margin expansion.
- Credit performance in line with expectations with net charge-offs plateauing, and net charge-offs in card declining 27 basis points sequentially, outperforming seasonality.
- Progress on strategic initiatives, including the sale of the private student loan portfolio (recognizing a $70 million gain in the quarter) and preparations for the merger with Capital One advancing well.
- Discover card sales were down 3% compared to the prior year, indicating a decline in customer spending or market share .
- Operating expenses increased by $238 million or 16% year-over-year, which could pressure profitability if revenue growth doesn't keep pace .
- Loan growth expectations have been revised down to low to mid-single digits, suggesting slower growth prospects .