Discover Financial Reports 70% Profit Surge Driven by Increased Interest Income

Reported 3 months ago

Discover Financial Services announced a remarkable 70% increase in its second-quarter profit, largely attributable to rising interest income amid a high-rate environment. The company reported a net profit of $1.52 billion, or $6.06 per share, compared to $895 million, or $3.54 per share, from the same period last year. This surge was supported by a nearly 11% rise in net interest income to $3.52 billion and a decrease in provisions for credit losses. Additionally, Discover has plans to sell a portfolio of student loans for up to $10.8 billion, and Capital One aims to invest $265 billion if its acquisition of Discover proceeds.

Source: YAHOO

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