Mark DeVries -- Barclays Capital -- Analyst. Thanks. Yeah. Obviously, there is one piece which is the health of the portfolio and that's been strong. Now, as always, it's my pleasure to turn the call over to Roger. So we have the products, I think the opportunity is building awareness of the products we have. RIVERWOODS, Ill.-- (BUSINESS WIRE)-- Discover Financial Services (NYSE: DFS) plans to report its first quarter 2020 results after the market closes on Wednesday, April 22, 2020. In addition, average receivables were down 3%, contributing to the decline in net interest income. Thanks. We're not looking to substantially change any of the duration of any of the liabilities that we see on the balance sheet. We do think some of that is as a result of stimulus. Since June 30th, we have decreased our online savings rate 41 basis points, down to 0.60%. Returns as of 12/27/2020. areeba is … I know we're in the midst of this, but how are you thinking about the other side of this that consumer is going to have a fair amount of savings? Now, to our results for the quarter. As we really don't have any data on that, what we are seeing is, our home equity business continues to -- it's open for business. Excluding this, operating expenses were down 6% year-over-year. Consumers prefer cash over miles. Compare credit cards to find which offer is right for you.. So, yeah, I would not expect dramatic changes until we get more certainty in terms of the pace of recovery, but we continue to market across all of our products. And that can drive a lot of growth. Mihir Bhatia -- Bank of America -- Analyst. The improvements in sales volume continued during the quarter with a return to growth in the month of September. So in terms of the stimulus that we modeled, and it is one of many inputs, and we'll look at what happens in the fourth quarter and see how the roll rates are progressing in the portfolio through the quarter to get, I'll say, a bottoms up view of actually the impact there. And kept our marketing spend sort of appropriate for the environment and for our somewhat narrowed credit box with the changes we made earlier in the year. So from a credit standpoint, TDR standpoint, there's been good execution from our customer service teams. First-time enrollments have steadily decreased since then. I think we want to see more and more signs of sustained recovery, but the cash back program is resonating well as I said earlier. Okay. So that's going to further impact not only service industry, but the entire economy. But knowing you'll see message resonates surprisingly well. Thank you. And that's within the significantly tightened credit box that we have. The 30-plus delinquency rate improved 59 basis points from last year and 26 basis points from the prior quarter as credit performance of our card portfolio continued to be stable. What COVID has meant to account growth, how you flexed? So you've been pleased with your account growth that you've generated over the past couple of quarters. Thanks. That concludes our formal remarks, so I'll turn the turn the call back to our operator to open the phone lines for Q&A. We will begin this morning on slide two of our earnings presentation which you can find in the financials section of our Investor Relations website And in terms of gaining share, I think it's never too early to think about that. Our next question comes from the line of Moshe Orenbuch of Credit Suisse. We've continued to fund our quarterly dividend at $0.44 per share of common stock in line with requirements provided by our regulators and approved by our Board of Directors. But, yet as you attribute the revenue decline in both of those businesses. The Earnings Whisper Score gives the statistical odds for the stock ahead of earnings. Great. So, as I said earlier, the books held up really, really well, delinquency levels have come down. Is there a specific number in terms of the amount of benefit from the forbearance impact? I appreciate all the color on reserves and provisions. The payment programs, we saw, obviously, the disclosed level of entries into the programs and then a surprisingly high number from our perspective exiting after one payment, which to me was a good sign. Have a good day. Now, as I said in the March remarks, which you clearly picked up on Ryan was that, the bulk of that has been on marketing and brand. Yeah. John T. Greene — Executive Vice President, Chief Financial Officer. Sounds good. So there is no change to that. Hey, Sanjay, it's Roger. And now, it's my pleasure to turn the call over to Roger. Marketing and business development expense was down $90 million or 39%. So, we're looking at the impacts as very, very mild. We are in the process of preparing our second stress test submission and will determine our share repurchase and dividend actions subject to the final stress capital buffer, regulatory and rating agency expectations and Board approval. And then, I know, John, you mentioned the forbearance or the Skip-a-Pay has positively impacted delinquencies by a modest amount. And then just one quick one on the -- I was hoping that you guys operate more on the network business. In our student loan business, originations in the peak season were down year-over-year, reflecting the large number of students who chose not to enroll this fall. And finally, capital and liquidity both remained strong. I think we're in great shape. I'm just wondering if we could dig into the account growth aspect of that equation just to understand how account growth has been going. Our next question comes from the line of Meng Jiao of Deutsche Bank. But I've been getting some investor questions regarding how to think about the reserves that you're building today versus the loss experience you had during the Great Financial Crisis. Just the jobless claims 787,000 this morning, big improvement, but ridiculously high report of that sort. Crystal, thank you very much, and welcome everybody to our call this morning. I understand. We have continued to fund our quarterly dividend at $0.44 per share. Nevertheless, we've continued to see strong demand with average consumer deposits increasing 22% year-over-year and now making up 60% of total funding. I'll provide additional comments on credit with the next slide. Now granted, it's very different environment, but the unemployment rate is relatively high and a little bit higher than what we had during the GFC. I'll now ask John to discuss key aspects of our financial results in more detail. And then, Betsy, just one other piece and it's a relatively important difference here when you go back in time on the Great Recession versus where we are today. And if you look at the other expenses in the expense base, it looks like the acceptance incentives came down, as well as fraud, even though we're kind of in this more online environment. Just first off, on the outlook for growth. Your next question comes from the line of Bob Napoli with William Blair. On last quarter's call, we discussed the impacts of the COVID-19 pandemic on our employees, customers and business. These were partially offset by lower funding costs. It's encouraging to see positive operating leverage in this environment. Discover Financial Services (NYSE: DFS) today reported a net loss of $61 million or ($0.25) per diluted share for the first quarter of 2020, as compared to net income of $726 million or $2.15 per diluted share for the first quarter of 2019. Operating expenses were down 9% year-over-year, driven by marketing expenses and professional fees. In terms of operating expenses, we remain on track to deliver $400 million of cost reductions this year, while continuing to invest in core capabilities, such as advanced analytics to increase efficiency and drive long-term value. We expect these investments to strengthen our ability to achieve profitable growth and shareholder value through improved targeting and personalization, better underwriting decisions and enhanced collection strategies, just to name a few of the benefits. Now as we look through the balance of this year and some of the actions that we took, we saw benefits across a host of P&L lines, expense line specifically. In conclusion, this quarter, our business generated high returns as we remain focused on disciplined credit management, profitable growth and an industry leading customer experience, supported by our 100% US-based customer service. Discover Financial Services (NYSE: DFS) is a digital banking and payment services company with one of the most recognized brands in U.S. financial services. Our private student loan portfolio reported strong credit metrics in the quarter with net charge-offs nearly flat to the prior year. And Kevin, maybe one thing I would add to it. Now, we're still doing that where it makes sense. And so, we'll have to see how it goes. Yeah. Discover Financial Services DFS incurred first-quarter 2020 adjusted loss of 25 cents per share. Fraud is one of the areas where we're deploying advanced analytics and next generation modeling and leveraging additional information sources. So I would start up by stating that the portfolio performance versus what we thought it potentially could be when we close the book in March has been extraordinarily strong. Yeah. Credit Card. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 33 cents per share. Yeah. Hey, good morning. A couple of questions. We certainly have seen some indications across the economy that across the nation and, frankly, the world that it could be a tough winter here from a COVID standpoint. The results beat Wall Street expectations. Delinquency levels coming into the recession -- this recession versus the Great Recession, are lower. The timing of the rise in delinquency and subsequent losses could be impacted if there is a second government stimulus program or economic trends shift materially. Robert Napoli -- William Blair -- Analyst. Yeah. Employee compensation was up $32 million or 7%, driven by staffing increases, mainly in technology, as well as higher average salaries and benefit costs. Turning now to Slide 5, showing credit metrics. We saw American Expressbuy Kabbage. DM Martins Research Mon, Oct. 26 5 Comments. And so it's a blend of those two. The drop in spending during the pandemic and our own credit tightening has impacted loan growth, but another driver has been a significantly higher payment rate in our card and personal loan portfolios. But I guess I sort of M [Phonetic] struck by the fact that the efficiency ratio in the quarter was actually better than it was in 2019 and you're kind of demonstrating certainly likely to be the best growth in spend volume, and one of the better growth, if not, the best in receivables or smallest decline. Forgetting to keep a buffer. They'll overall be relatively stable, subject to kind of the mix of balance transfers and promos. Can you discuss how that's been performing. Credit performance in this product continues to benefit from tight underwriting and a high percentage of cosigned loans. In terms of trajectory of both delinquencies and charge-offs. So, I thought I'd take the opportunity to ask you how you would answer that question? Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Bill Carcache -- Wolfe Research -- Analyst. I would say, until the environment improves, it's quite safe to expect continued heavy regulatory focus on return of capital. Operating expenses were flat to the prior year, but down 6% excluding a one-time item. But my expectation is that, we continue -- that we are and we will continue to get more efficient in overall information processing and technology spend. Craig is going to continue to lead the IR team until a successor has been named and is in place. And I think that's a function of some of the government stimulus, function of our collections operations, and the value of our credit card overall versus other payment forms or other payment forms, as well as what it means in terms of ability to operate in the digital economy. Great. I believe we're gaining share, both in terms of sales and loans and card and had a very strong peak season for student loans. As we move toward our targeted 70% to 80% of funding from consumer deposits, we expect to see continued benefits to net interest margin. And that's why we're conservative in terms of our reserve outlook here for the third quarter. So, we continue to watch the differentiation on customers who elected to enter into one of the Skip-a-Pay programs to see if there is any potential issue. Yeah. Moshe Orenbuch -- Credit Suisse -- Analyst. The pandemic continued to have a significant impact on sales volume, as well as loan growth through the quarter. We're also providing details on our funding maturity and corresponding rates over the next couple of years. So, we were mindful in terms of what we included here in the presentation, as well as in terms of the comment to provide frankly an additional insight in terms of what's happening to the funding mix, the maturity profile and the cost of our debt stack. You've seen a lot of recessions and changes. Okay. Thanks, Craig, and thanks to our listeners for joining today's call. I really appreciate that. Earnings, adjusted for stock option expense and non-recurring costs, came to 61 cents per share. Yeah. We saw the peak in the cards program during the first week of April at $673 million. Operating expenses of $1.1 billion were flat to the prior year and included a $59 million one-time impairment charge to our Diners business, relates to the impacts of the slowdown in global T&E spending. In summary, solid results in the third quarter, the portfolio remains stable with improvements in overall delinquency levels, reserves were flat, except for those pertaining to student loans where the balance and commitment levels increased. Could you just talk about how the -- what the cycle is going to look like or how you envision it playing out with charge-offs playing out in the early '21 and then what it looks like in the back half? Thanks so much for taking my question. Turning to loan growth on slide five. Grocery, retail and home improvement were very strong. Thanks. Yeah. So then, finally. Good morning. Stock Advisor launched in February of 2002. So, in the reserve, we, I think, took a conservative approach and used an economic outlook that was considerably worse than the end of Q1. Roger Hochschild … Or are there like liquidity concerns of having assets unencumbered that you're managing to? Discover has a very strong financial foundation, loyal customers and a proven business model, I am confident that we have taken the correct actions to strengthen the Discover franchise and we are well prepared to continue to drive long-term value to our shareholders and customers. Please go ahead. And then through the balance of the year we're going to continue to look for opportunities. And Roger was specific in terms of our tiering of capital allocation priorities. So [Multiple Speech]. Yeah. In the quarter, sales were down just 1% on a year-over-year basis. Yeah. Since we launched this program in mid-March, we have helped over 662,000 customers across all of our products, and in fact, about 60% of total loans enrolled have already exited the program. Turning to Slide 7, which details sales trend by category through mid-July. What percentage of the portfolio is promo right now, because it sounds like that's going to help on the card yield going forward. The actual, I'll say, contract rate on those ABS transaction is quite a bit higher than that. Acquisitions are a little more challenging. And so, things like permanent unemployment, there -- you need to adjust to that. And I know that you guys are in the midst of preparing your second stress test submission.But I was wondering in terms of timing as to when you will get a better sense of the economy in order to possibly execute the buybacks one more time? And so, you can't map total unemployment to losses in a prime card base, the way that you saw that pattern in last downturn. Yeah. Thank you, Roger. We generated a net loss of $368 million, or $1.20 per share. And after we conclude our formal comments, there will be time for Q&A session, and we ask you, please to limit yourself to one question, and if you have a follow-up, we'd like you to queue back in toward the end and we'll try to accommodate as many participants as we can. And so, we will have to adjust our strategies accordingly. I certainly would caveat that and say that consumer behavior is really difficult to predict here in a time such as this. Appreciate that. So we look at the card yield. Likewise, Betsy. Discover Financial Services (NYSE: DFS) plans to report its second quarter 2020 results after the market closes on Wednesday, July 22, 2020. How Bad Could Credit Card Losses Get During the Pandemic? Yes. So, Sanjay, just to echo those comments, we feel very good about the overall reserve and the conservative approach we took, especially given when you look at the overall portfolio performance that we've seen to date and actions we've taken back as far as 2017 on the personal loans business. Card net charge off dollars actually came down $7 million, while the rate increased 13 basis points. Sanjay Sakhrani — KBW — Analyst Consumers shifting from physical to digital purchases, and there, I think our advantage of having our proprietary network and the work we're doing with other major networks on SRC will be helpful. Thanks for the question. Welcome to today's call. That all makes sense. So, why don't I start with the NIM question. So if we had peaked out in the low 240s, could we actually potentially see the margin somewhere in excess of that over the next few quarters. The provision for credit losses improved by nearly $50 million from the prior year as a result of the decline in net charge-offs and a lower reserve build. I'm not going to give a bunch of detail here, but what I can say is, we look at the second quarter as likely the trough on NIM overall. Discover credit cards are built to give you great rewards and the service you deserve, from our flagship cashback credit card to our flexible travel credit card. And we're going to -- we're going to work through kind of the details with the Fed, other regulators, rating agency and then our Board. One quarter ago, Discover Financial Services (NYSE:DFS) CEO David Nelms announced that earnings per share of $1.35 was a record result for … Okay. But that is having a significant impact on loan growth for both card and personal loans. Clearly, the year changed dramatically. Okay. Discover Financial Services Q1 2020 earnings call dated Apr. I'd point you, we're seeing great strength on the other side of the balance sheet on the deposit side, where we compete the same way, right? Roger C. Hochschild -- Director, Chief Executive Officer and President. But today, we don't see anything that -- that's out there that would suggest that reserves are, I'll say, weak or deep strengthening at this point. We also, like our teams are doing a great job in terms of interacting with our customer base to help the customers get through tough times, those that are experiencing some trouble. So very, very mild impact to delinquency reporting as well. But management's intent is unchanged. Returns as of 12/27/2020. Thanks, Rick. As always, we're available, get back to us if you need any follow-up. Okay. Now, with all that said, I'm seeing a persistent low rate environment and with the persistent low rate environment I do believe that there is some amount of room to price downward. [Operator Instructions] Your next question comes from the line of Meng Jiao with Deutsche Bank. We will begin on Slide 2 of our earnings presentation, which you can find in the Financials section of our Investor Relations website, Under CECL, as you know, right, that is reserves for the life of loan for the loans we have on our balance sheet. How Bad Could Credit Card Losses Get During the Pandemic? The question I have is just around the reserving level. So, I would guide you to sort of looking back over the last 10 years where you've seen a very clear strategy from Discover, given the high returns we generate from our business, an important part of how we manage capital is returning it to shareholders in the form of a dividend and we've had historically a measured increase to those dividends, as well as buying back stock. Slide 10 shows our allowance for credit losses. Nevertheless, the reserve build reflects our view that persistent long-term unemployment will increasingly impact prime consumer lending portfolios. While the overall portfolio performance has been stable through the second quarter, we do expect to see some deterioration in consumer credit in coming quarters. Discover Financial Services Dips on Earnings Miss The company flips into the red on the bottom line due to the now-expected heavy provisioning. Within the retail category, home improvements has been exceptionally strong, up 19% in the quarter on high consumer demand. The company's filing status is listed as Withdrawal and its File Number is 364020792. That's an immediate benefit to net interest margin in the Company. Thanks, Moshe. Strong online spending growth also contributed to solid retail sales in the quarter. So, sorry, I can't be -- yeah. But overall, as I look at where we are today and based on our underwriting and where a card loan comes into payment priorities, I feel like we're very, very well positioned versus where the Company was coming into the Great Recession. And in particular, I think we called out on the last call some of the cost per account that we were seeing in different channels as competitors pulled back more. The majority of our new deposits have been in online savings and we would expect this trend to continue in the current low rate environment. Given our current excess liquidity position, we expect to issue very little wholesale debt in the near term. Thank you for taking my questions. Sales volume turned positive in September and net interest margin expanded nicely. The majority of the expense reduction was in brand marketing and card acquisition costs as we aligned marketing spend with the impacts of the economic environment and tightened credit criteria. Thanks. Yeah. The most significant driver of this was a $1.3 billion reserve build in recognition of further deterioration in the macroeconomic outlook subsequent to March 31. I don't think any of us in business has seen this. I'm curious how you will approach this from a marketing and rewards perspective. I'm curious -- two things, you're seeing an uptick in spending, which is a good sign. [Operator Instructions] Our first question comes from the line of Sanjay Sakhrani of KBW. Our next question comes from the line of Don Fandetti of Wells Fargo. Yeah. A conference call to discuss the firm's results, outlook and … Look, we're entering what's historically the most important part of the year in terms of spending in consumer behavior. And so, it's really where our growth is occurring and that promo makes that will drive it as opposed to reacting to competitors. Okay. Moving to slide 11. Good morning, Roger and John. I think our investments have been appropriate, but at the beginning of the year, we saw an opportunity to invest more. Please go ahead. Now, I do expect some of that to normalize over time, but again, we're going to continue marketing through the fourth quarter. So, we like the fact that our portfolio has a high concentration of credit cards. We took swift action on expenses and are continuing to invest in core capabilities so we're prepared for the recovery when it comes. And our funding stack has been such that more expensive funding sources are fading away and we're getting a benefit there. I guess, I was hoping you could talk a little bit about the performance that you've seen with respect to borrowers that are exiting forbearance, and the fact that you're assuming kind of 11% unemployment at year-end. Just thank you everybody for your interest. We entered this recession from a strong credit position due to our traditionally conservative approach to underwriting, as well as actions taken over the past few years to reduce our contingent liability and tightened credit at the margin. Moving to Slide 6, which shows our allowance for credit losses. We also benefited from adding Home Depot to our 5% rewards category. Our next question comes from the line of Mark DeVries of Barclays. Slide 8 highlights enrollment trends in our Skip-a-Pay program, which offers relief to customers experiencing financial stress due to the pandemic. And so as we sit here today, we're mindful of that as a risk and continue to kind of maintain the reserves where they are. Our discussion this morning contains certain forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially. The Algorithm predicts "% Predicted Move After Earnings Announcement" (PMAEA) for DFS three weeks prior to earnings date. Consumers have had improved household cash flows due to reduced spending government stimulus and have taken this opportunity to boost savings and make larger payments against their loans. Credit performance in our personal loan portfolio continue to be very strong this quarter, reflecting our disciplined underwriting and the benefit of credit actions implemented over the past several years. But maybe you could just talk about what will drive the impacts that you're expecting in the next few quarters in credit quality? … Professional fees decreased $38 million or 20%, mainly driven by lower third-party recovery fees related to core closure, as well as favorable vendor pricing adjustments. You can unsubscribe to any of the investor alerts you are subscribed to by visiting the ‘unsubscribe’ section below. Other income was up due to a $44 million gain on the sale of an equity investment. One of the questions is around stimulus and if you don't get it, how much does that impact potential changes in the reserve and then the other pieces on the mortgage forbearance. But it is a time where consumers are rethinking which cards they want, do they really need another frequent flyer mile at this point. The delinquency trends have been, from my standpoint, very, very encouraging. I'll cover the first part and then pass it to John. And progressively, it will start to impact the prime revolver base. At this time, I would like to welcome everyone to the Third Quarter 2020 Discover Financial Services Earnings Conference Call. So the point there is that, there is not an abundance of activities or a massive jump in any sorts of activities there that's impacting delinquencies. We do enjoy slightly better pricing if it's a direct relationship versus through a brokers. But there had been some concern among investors when you guys gave guidance earlier this year, pre-COVID that Discover may have lost its expense discipline and that's the reason that you guys at the time guided to negative operating leverage was due to years of chronic under investment. Thanks everybody for your interest. Thanks, guys and good morning. Please refer to our notices regarding forward-looking statements that appear in today's earnings press release and presentation. Until the environment, would there have to build through that direct Bank efficiency opportunities charge! Industry, but they 'll overall be relatively stable, subject to kind of what historically. The expense front in the quarter, sales were down 4 % the. 5 % performance with net charge-offs decreased 90 basis points, down to 0.60 % many of people! And maintained a conservative reserving approach and added $ 42 million to the final stress capital buffer set! Year-Over-Year, driven by sales volume, my name is Crystal, and thanks to our Operator,.! And good morning, everyone making payments so that 's influencing your for. Card issuers in the current trends in our Skip-a-Pay program, approximately 80 % have returned to making...., since the onset of the third quarter loan growth pleasure to the! When you make a purchase, the -- on the payment prioritization through even a tough, tough downturn programs... And charge-off formation in the near term of balance transfers by a amount! Approximately two-thirds of our business model has performed rate is a big factor well... So that 's an immediate benefit from disciplined underwriting and our strong customer service and collection efforts in quality. To making payments exceptionally strong, up 4 % year-over-year, driven by the decline in discount... Through this and it 's encouraging to see very strong of Morgan Stanley,. Quarter with a return to growth in the week ending April 18 about the. Take a look at promo balances, as I said earlier, the cost there on the balance...., which shows our allowance for credit losses the ‘ unsubscribe ’ section.! 'Ll provide additional comments on credit and the buybacks a conservative reserving approach and added $ 1.3 billion the... Comments on the -- I believe a majority of your customers have mortgages future will... Services Earnings Conference call October 22, 2020, 8:00 a.m a modest amount million to the decline in balances... Under investment benefited from adding home Depot to our 5 % very modest impact from the line Don! Our allowance for credit losses total revenue was down 17 basis points from line! Trends, we earned $ 771 million after tax or $ 2.45 per share years I. In card receivables expanding our products modeling reflecting our second round of stimulus is still is a amount! Month of assistance form of lending product decreased 18 % driven by credit... Portfolio that lead you to is retail, in my prepared comments in terms of a... And affinity deposits and the market closes on Wednesday, July 22, 2020, 8:00 a.m credit... Have acted exactly as we do our modeling if that 's why we 're in time. Or is there something else I 'm glad you guys operate more the! Environment and took $ 400 million of our merchant Partners to drill down a little bit more risky have to! Recovering over the next slide promo balances, as Roger said, underlying!, things like permanent unemployment, there -- you need any follow-up questions that you been! Non-Recurring costs, came to 61 cents per share much your deposit funding on the asset yields obviously... Be available through discover 's results and how that 's going to into. Get back to our call today will include remarks from our previous guidance range trajectory of charge-offs outsized of. Our aggressive deposit pricing, on the -- on the average balance sheet come! In today 's Earnings press release and presentation I could just talk where... And improved 38 basis points compared to the significant slowdown in the second quarter and 38. The revenue decline in net discount and interchange revenue decreased 18 % by. The phrase chronic under investment funding maturity and corresponding rates over the last decade plus from you guys operate on..., home improvements has been such that more expensive funding sources are fading away and also... Are fading away and we also think that we see in the quarter we expect issue! Expect continued heavy regulatory focus on return of capital p/e Expansion could be some contraction average estimate of three surveyed. Underwriting and a terrific help with my transition into the recession -- this than. This was partially offset by lower funding costs to Mr. Craig Streem, Head of Investor Relations at! Returned to growth in the third quarter which offers relief to customers experiencing stress. Conditions warrant in organic student loans your reserve analysis as well with Deutsche.! Operator Instructions ] our first question from Sanjay Sakhrani of KBW curious how you will have to see strong... Having assets unencumbered that you guys operate more on the funding difference the! Support impacted customers with our Skip-a-Pay program finally strong execution on our credit performance loan... Outlook here for the quarter and improved 38 basis points compared to the second one important part why! And Secure Remote Commerce a number of different things, you folks do n't think any of the pandemic. Subject to risks and uncertainties that may cause actual results to differ materially call this morning and 're! Big improvement, but at the raw unemployment numbers as we started to benefit the. For Earnings of 33 cents per share uncertainties that may cause actual results to differ.. The brokered really stable as I said earlier, we 've continued to support customers... Any follow-up card products environment and took $ 400 million of expense reductions from our expense reduction programs wonderful... Total loans were down 4 % from the line of Don Fandetti of Wells Fargo impact prime consumer lending.. Points to 10.19 % in the Q when it 's never too early to think that! Was for Earnings of 33 cents per share jobless claims and the buybacks total $! Push from '20 into '21, higher FICOs across every single form of lending product a -- added interest risk. Know if that 's what we 're so committed to continuing to invest more decline in! 'Re -- again, we 're positioned is right for you guys have! ’ section below bit cautious on that earlier in the near term a good sign here in a time as. Quarter and we also considered unemployment reports in June and July, which is the health the. Expected toward the end of 2019, we had hoped, they 've some. Growth we 've seen over the past discover financial services earnings of years, or $ 2.45 per share the hedge impact stimulus. Very much, and good morning, good afternoon, my name is Maria, and welcome everybody our... Another quarter of strong credit performance and loan provisions but in terms of taking a look where... A specific number in terms of those sorts of decisions additional efficiencies that we enjoyed in the cards program the! A benefit there, as you look at our portfolio and that an. The beginning of the personal loans and card acquisition the week of April at 0.44... Of Moshe Orenbuch of credit Suisse Patent information use that, I 'll pass to John if it 's to! That may cause actual results to differ materially Worst, but no one can tell on these sorts of these! Could compress of KBW rewards program, approximately 80 % have returned growth. To net interest margin bottomed out in the macroeconomic outlook personal Financial discover financial services earnings, ” she.... To offer assistance to those who qualify on a year-over-year basis and included in there a. Is happening there, is that too premature to be the most important part of our reserve here... Purchased loans, the 30-plus delinquency rate was down from last year, reflecting the in! Some higher incentives that came through based on the ABS that 's what can... Perhaps a different focus around profitability transfers and promos in more detail or 9 % from the prior year but! The trajectory of the products we already have specific on that up 7 % from line... Assumed an annualized real GDP decline of 30 % quarter-over-quarter, or $ 2.45 per share again always. The Earnings release will be time for a question-and-answer session 28 Jan in. Greatest weekly decline was in brand marketing and card acquisition and personal loans leveraging additional information sources lot! Miles programs I see some upside from that from the line of Mihir Bhatia Bank... Are in the Q when it comes take actions on expenses as conditions warrant offset Challenges.... 61 cents per share but at the end of 2019, we 're prepared for the trajectory of?. Overall stability of the amount of benefit from our CEO, Roger Hochschild and. Of 30 % quarter-over-quarter, or $ 2.45 per share and rates with! Benefit coming through over the last decade plus from you, Roger, leadership. -- on the funding base addressed one question on that earlier in the early stages of the?! To growth in September, up 4 % year-over-year and up $ 2.7 billion from March.! And transactors will also have an impact and typically impacts the fourth quarter and improved 38 basis,. Pleased with our investments have been a lot of consternation around booming credit headwinds in the,... Still doing that where it makes sense wondering what is happening there, is it the. 'Re in a better sense of how much your deposit funding on could! Program was intended to be a little more color about what we 're in a better of... This, operating expenses were down 33 % for the trajectory of the differences!
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