Discover Financial Services has reported its monthly credit card charge-off and delinquency statistics for the past twenty-four months, showing changes in key metrics.
The ending loans for August 2024 stood at $100.6 billion, a slight increase from the $100.5 billion reported in July 2024. However, this is part of a trend of increasing ending loans over the past year, as in August 2023, the ending loans were reported at $96.9 billion.
The average loans for August 2024 were $100.4 billion, also showing a slight increase from the previous month. This is in line with the trend of increasing average loans over the past year, as in August 2023, the average loans were reported at $96.0 billion.
The net principal charge-off rate for August 2024 was reported at 5.22%, showing a slight decrease from the 5.28% reported in July 2024. However, this is part of a trend of increasing net principal charge-off rates over the past year, as in August 2023, the rate was reported at 4.16%.
The delinquency rate (30 or more days) for August 2024 was reported at 3.79%, showing a slight increase from the 3.73% reported in July 2024. This is part of a trend of increasing delinquency rates over the past year, as in August 2023, the rate was reported at 3.15%.
The data also shows a consistent increase in both ending and average loans from 2022 to 2023, as well as a consistent decrease in net principal charge-off rates and delinquency rates over the same period.
These figures indicate a consistent trend of increasing loans and worsening credit quality over the past year for Discover Financial Services. Today the company's shares have moved 1.6% to a price of $131.33. For more information, read the company's full 8-K submission here.
