Stocks Analysis by ValueWalk (Dave Kovaleski) covering: Discover Financial Services, Capital One Financial Corporation. Read ValueWalk (Dave Kovaleski)'s latest article on Investing.com
Discover stock was surging after earnings were released on Wednesday after the market closed and was up 4% on Thursday, though it has since shed some of those gains to trade up 0.25%.
That is not a given, however. The merger would create a combined credit card and banking giant, combining Discover, the fourth largest payment processor, with Capital One, one of the largest banks and credit card issuers. The proposed transaction will surely face intense regulatory scrutiny. So, with credit card rates high during this time of high interest rates, it is generating lots of net interest income. Net interest income jumped 11% in the quarter, year-over-year, to $3.5 billion. And that was aided by an 8% increase in loan balances to $128 billion.
In the second quarter, provisions for credit losses were just $739 million, well below the $1.3 billion set aside in Q2 of 2023 and the $1.5 billion in the first quarter of this year. Also, the 30+ day delinquency rate for credit card loans was 3.69%, which is 83 basis points higher than Q2 2023, but 14 basis points than Q1 2024.
Capital One Financial Corporation
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Dave Portnoy Defends Taylor Swift After Dave Grohl's Apparent JabDave Portnoy is a big fan of Dave Grohl ... but he can't wrap his head around why the Foo Fighters front man would pick a fight with Taylor Swift.
Read more »
Stocks making the biggest moves after hours: United Airlines, Discover Financial Services, Kinder Morgan and moreThese are the stocks posting the largest moves in extended trading.
Read more »
Researchers discover potential mole reversal therapy in rare conditionResearchers have designed a new genetic therapy that could alleviate debilitating giant moles in a rare skin condition.
Read more »
Bask in Discover LA's new guide to our ‘sun'-derful Beach CitiesSummer is going to summer soon; let's head for Southern California's fantastic sand-adjacent towns.
Read more »
Why relationships at work matter for your career, health, and happiness.Discover how investing in positive relationships at work can transform your career and well-being.
Read more »
Boeing CEO Dave Calhoun Says Company Has Retaliated Against WhistleblowersBoeing CEO Dave Calhoun says the company has a history of retaliating against whistleblowers.
Read more »