Discover Financial Services has reported its monthly credit card charge-off and delinquency statistics as of and for each of the twenty-four months ended. The ending loans for January 31, 2025, stood at $100.6 billion, a decrease from the previous month's $102.8 billion. The average loans for the same period were $101.4 billion, down from $102.4 billion in December 2024.
The net principal charge-off rate for January 31, 2025, was 5.48%, an increase from the previous month's 5.41%. Likewise, the delinquency rate (30 or more days) for the same period was 3.87%, slightly up from December 2024's 3.84%.
Comparing these figures to the same period in 2024, there has been a decrease in both the net principal charge-off rate and the delinquency rate. The net principal charge-off rate for January 31, 2024, was 5.23%, showing a decrease from the current period's 5.48%. Similarly, the delinquency rate (30 or more days) for the same period in 2024 was 4.02%, higher than the current period's 3.87%.
In addition, the ending loans for January 31, 2024, were reported at $101.0 billion, slightly higher than the current period's $100.6 billion. The average loans for the same period were $101.3 billion, also slightly higher than the current period's $101.4 billion.
These figures indicate that there has been a decrease in both the net principal charge-off rate and the delinquency rate when comparing the current period to the same period in 2024. This suggests an improvement in the credit performance of Discover Financial Services' total credit card portfolio over this time frame. As a result of these announcements, the company's shares have moved 3.1% on the market, and are now trading at a price of $195.97. If you want to know more, read the company's complete 8-K report here.
