Q3 EPS of $3.54, trailing the $3.72 consensus, fell from $3.96 in the prior quarter and was unchanged from the year-ago quarter. The Q/Q decline in earnings came as the credit card issuer increased its provision for credit losses to $773M, more than the $673M Visible Alpha consensus, from $549M in Q2 and from $588M in Q3 2021.
Q3 net interest income of $2.84B exceeded the Visible Alpha consensus of $2.78B and climbed from $2.61B in Q2 and $2.41B in Q3 2021.
Discover (DFS) posted non-interest income of $636M in the most recent quarter, vs. $614M in the prior quarter and $372M in the year-ago quarter.
Operating expenses were $1.39B vs. $1.22B in Q2 and $1.19B in Q3 2021.
Discover Card sales volume of $54.8B increased from $53.9B in Q2.
Average credit card loans of $81.4B climbed from $75.9B in Q2.
Net charge-off rate of 1.71% vs. 1.80% in the prior quarter and 1.46% in Q3 2021.