Discover's income dips in second quarter

RIVERWOODS - Discover Financial Services reported net income of $1.1 billion, or $3.96 per diluted share, for its fiscal year second quarter, as compared to a net income of $1.7 billion, or $5.55 per diluted share, for the second quarter of 2021.

Credit card loans ended the quarter at $79.2 billion, up 15% year-over-year. Personal loans increased $280 million, or 4%, and private student loans increased $210 million, or 2%, year-over-year, Discover said.

During the second quarter, the company repurchased approximately 5.8 million shares of common stock for $601 million. Shares of common stock outstanding declined by 2.0% from the prior quarter.

"Amid evolving macroeconomic conditions, credit performance remains particularly strong, as delinquencies are stable and losses are rising modestly, reflecting slower than expected credit normalization," said Roger Hochschild, CEO and president of Discover. "The health of our customers and the strength of our integrated digital banking and payments model gives us confidence that we remain well positioned to generate substantial shareholder value through a range of economic environments."