使用警語：中文譯文來源為 Google 翻譯，僅供參考，實際內容請以英文原文為主
Operator
Operator
Good morning.
早安.
My name is Madison, and I will be your conference operator today.
我叫麥迪遜，今天我將擔任您的會議主持人。
At this time, I would like to welcome everyone to the fourth quarter 2024 Discover Financial Services earnings conference call.
現在，我歡迎大家參加 Discover Financial Services 2024 年第四季財報電話會議。
(Operator Instructions) Thank you.
（操作員指示）謝謝。
I would now like to turn the call over to Mrs. Erin Stieber.
現在我想將電話轉給 Erin Stieber 女士。
Please go ahead.
請繼續。
Erin Stieber - IR
Erin Stieber - IR
Thank you, operator.
謝謝您，接線生。
I'll begin by referencing slides 2 and 3 of our earnings presentation, which you can find in the Financials section of our Investor Relations website, investorrelations.discover.com.
我將首先引用我們收益報告的第 2 和第 3 張投影片，您可以在我們的投資者關係網站 investorrelations.discover.com 的財務部分找到。
Our discussion today contains certain forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially.
我們今天的討論包含某些前瞻性陳述，這些陳述受風險和不確定性的影響，可能會導致實際結果大不相同。
Please refer to our notices regarding forward-looking statements that appear in our fourth quarter 2024 earnings press release and presentation as well as the risk factors detailed in our annual report and other filings with the SEC.
請參閱我們 2024 年第四季收益新聞稿和報告中關於前瞻性陳述的通知，以及我們的年度報告和向美國證券交易委員會提交的其他文件中詳細說明的風險因素。
Our call today will include remarks from our Interim CEO and President, Michael Shepherd; and John Greene, our Chief Financial Officer.
我們今天的電話會議將包括臨時執行長兼總裁 Michael Shepherd 的演講；以及我們的財務長約翰·格林 (John Greene)。
There will be no question-and-answer session following today's remarks.
今天的發言後將不會有問答環節。
However, the Investor Relations team will be available for any inquiries.
不過，投資者關係團隊將隨時解答您的任何問題。
It is now my pleasure to turn the call over to Michael.
現在我很高興將電話轉給麥可。
J. Michael Shepherd - Interim Chief Executive Officer, President, Director
J. Michael Shepherd - Interim Chief Executive Officer, President, Director
Thank you, Erin.
謝謝你，艾琳。
Good morning, and welcome to today's call. 2024 was a good and transformative year for Discover.
早上好，歡迎參加今天的電話會議。 2024 年對 Discover 來說是一個美好又改變的一年。
When assuming the role of Interim CEO last April, I shared that our top goals were operating the company profitably and safely, continuing to strengthen our risk management and compliance, sustaining our commitment to outstanding customer service, and preparing for the successful completion of our merger with Capital One. I'm happy to report today that we have made considerable progress on each of these goals.
去年四月擔任臨時執行長時，我曾表示，我們的首要目標是確保公司盈利且安全運營，繼續加強風險管理和合規性，堅持提供卓越客戶服務的承諾，並為成功完成與 Capital One 的合併做好準備。今天我很高興地報告，我們在每個目標上都取得了長足的進展。
We reported net income of $4.5 billion for the full year 2024, and earnings per share of $17.72, reflecting several factors.
我們報告 2024 年全年淨收入為 45 億美元，每股收益為 17.72 美元，這反映了幾個因素。
On a full year basis, we grew average loans, expanded our deposit base and benefited from a higher net interest margin.
從全年來看，我們的平均貸款增加了，存款基礎擴大了，並受益於更高的淨利差。
We also successfully completed the sale of our private student loan portfolio, which provided financial benefits and streamlined our business model.
我們也成功完成了私人學生貸款組合的出售，這為我們帶來了財務利益並簡化了我們的業務模式。
As we anticipated in our commentary, delinquency formation and net charge-offs began to improve.
正如我們在評論中預期的那樣，拖欠形成和淨沖銷開始改善。
And despite a modest slowdown in US card sales, overall network volume increased, driven by growth in our PULSE business, and demonstrating the strength of our payments network.
儘管美國信用卡銷售略有放緩，但在 PULSE 業務成長的推動下，整體網路規模仍有所成長，這也彰顯了我們支付網路的實力。
We continue to invest heavily in risk management and compliance in 2024, and we are seeing meaningful improvements in our programs.
2024 年，我們將繼續大力投資風險管理和合規性，並且我們的計劃正在取得顯著的進步。
Additionally, we've made progress on meeting regulatory requirements and toward fully resolving the card misclassification matter.
此外，我們在滿足監管要求和全面解決卡片錯誤分類問題方面取得了進展。
Throughout the pursuit of these goals, we remain steadfast in our commitment to customers and employees, evidenced by the customer satisfaction and workplace award recognitions we have received.
在追求這些目標的過程中，我們始終堅定不移地履行對客戶和員工的承諾，我們所獲得的客戶滿意度和工作場所獎項認可就證明了這一點。
Each of these successes positions us well for our pending merger.
每一次成功都為我們即將進行的合併做好了良好的準備。
Capital One received approval of the merger from the Delaware State Bank Commissioner and our definitive merger proxy has been transmitted to shareholders in connection with the upcoming shareholder votes.
第一資本銀行已獲得特拉華州銀行專員對此合併的批准，並且我們的最終合併代理人已在即將舉行的股東投票中發送給股東。
Integration planning efforts are progressing well in preparation for a smooth transition.
整合規劃工作進展順利，為平穩過渡做好了準備。
We continue to firmly believe the merger will advance our company's shared mission to help our customers meet their financial goals, support the communities in which we operate, and create value for our shareholders.
我們始終堅信，合併將推進我們公司的共同使命，幫助我們的客戶實現他們的財務目標，支持我們所在的社區，並為我們的股東創造價值。
With that, I'll now ask John Greene to provide an update on our fourth quarter financial results.
現在，我將請約翰·格林 (John Greene) 介紹我們第四季度的財務業績。
John Greene - Chief Financial Officer, Executive Vice President
John Greene - Chief Financial Officer, Executive Vice President
Thank you, Michael.
謝謝你，麥可。
I'll start with our summary financial results on slide 5.
我將從投影片 5 上的財務表現總結開始。
In the fourth quarter, we reported net income of $1.3 billion versus $366 million in the same period last year.
第四季度，我們報告的淨收入為 13 億美元，而去年同期為 3.66 億美元。
These results were driven by three main factors.
這些結果是由三個主要因素推動的。
First, provision expense declined by $707 million.
首先，撥備支出減少了7.07億美元。
This was largely from a reduction in our credit reserve balance compared to a reserve build one year ago.
這主要是因為我們的信貸儲備餘額與一年前相比有所減少。
Second, as Michael mentioned, we successfully completed the sale of our student loan portfolio, which resulted in a gain of $381 million.
第二，正如麥可所提到的，我們成功完成了學生貸款組合的出售，收益達 3.81 億美元。
The transaction in total provided an earnings benefit of $1.3 billion, including the reserve reduction of $869 million recognized in the second quarter.
這筆交易總計帶來了 13 億美元的獲利收益，其中包括第二季確認的 8.69 億美元的儲備減少。
And third, net interest income grew $162 million from continued net interest margin expansion.
第三，由於淨利差持續擴大，淨利息收入增加了 1.62 億美元。
In connection with finalizing the merger proxy, we restated financial results for the periods dated back to 2021, reflecting a reclassification of amounts related to the card tiering accrual.
在最終確定合併代理時，我們重述了 2021 年以來的財務業績，反映了與卡分級應計相關金額的重新分類。
Furthermore, an independent review identified approximately $60 million of incremental charges related to the card product misclassification and we increased our accrual for potential regulatory penalties by $90 million in the third quarter, both are incorporated in our revised results.
此外，獨立審查發現與卡產品錯誤分類相關的增量費用約為 6000 萬美元，並且我們在第三季度將潛在監管罰款的應計費用增加了 9000 萬美元，這兩項都已納入我們的修訂結果中。
Accounting for these updates, the cumulative impact on equity was a decrease of $151 million.
考慮到這些更新，對股權的累積影響減少了 1.51 億美元。
Earnings for 2024 increased by $441 million.
2024 年收益增加 4.41 億美元。
Back to the detailed results beginning with revenue on slide 6.
回到第 6 張投影片上從收入開始的詳細結果。
Our net interest margin ended the quarter at 11.96%, up 98 basis points from the prior year and up 58 basis points sequentially.
本季末，我們的淨利差為 11.96%，較上年同期上升 98 個基點，較上一季上升 58 個基點。
Margin expansion was driven by product mix, investment of sales proceeds, and a lower card promotional balance mix.
利潤率的擴大是由產品組合、銷售收益的投資以及較低的卡片促銷餘額組合所推動的。
Card receivables increased 1% year-over-year due to a slightly lower payment rate, partially offset by a decrease in sales volume.
由於付款率略有下降，卡應收帳款年增 1%，但部分被銷售量的下降所抵銷。
The payment rate declined around 10 basis points from last year, was down 20 basis points sequentially, and is approximately 90 basis points above pre-pandemic levels.
支付率較去年下降約 10 個基點，較上一季下降 20 個基點，比疫情前的水準高出約 90 個基點。
Over the past several quarters, payment rates have stabilized.
過去幾個季度，支付率已經穩定下來。
Discover card sales were down 3% compared to the prior year.
與前一年相比，Discover 卡銷售額下降了 3%。
The decline in card sales is primarily due to credit tightening actions, which began in 2022.
信用卡銷售額的下降主要歸因於 2022 年開始的信貸緊縮措施。
Holiday sales were strong and we currently see an opportunity to increase new account acquisition in the coming year.
假日銷售強勁，我們目前看到了來年增加新帳戶獲取的機會。
This is expected to provide a modest boost to 2025 sales with more substantial benefits expected in 2026.
預計這將對 2025 年的銷售額產生適度推動作用，並預計 2026 年將帶來更實質的收益。
Personal loans were up 5% from the prior year.
個人貸款比上年增加5%。
Demand remains strong and we continue to take a conservative approach to underwriting.
需求依然強勁，我們持續採取保守的核保方式。
Total loans after adjusting for the student loan sale increased 3%.
調整學生貸款銷售後的總貸款增加了 3%。
Average consumer deposits were up 10% year-over-year and 2% sequentially.
平均消費者存款年增 10%，較上季成長 2%。
Deposit growth, driven by industry-leading products, customer experience, and our value proposition has enabled us to improve our funding mix.
在行業領先產品、客戶體驗和我們的價值主張的推動下，存款成長使我們能夠改善我們的融資組合。
Direct-to-consumer deposits now account for 72% of total funding, bringing us within our targeted range of 70% to 80%.
直接面向消費者的存款目前佔總資金的 72%，使我們達到了 70% 至 80% 的目標範圍。
We continue to manage deposit balances to meet our liquidity needs and anticipate a through-the-cycle beta of around 70%.
我們將繼續管理存款餘額以滿足我們的流動性需求，並預計整個週期的貝塔係數約為 70%。
Looking at other revenue on slide 7.
請參閱幻燈片 7 上的其他收入。
Noninterest income increased $417 million or 59%.
非利息收入增加 4.17 億美元，增幅 59%。
Other income increased as a result of the successful student loan exit.
由於成功償還學生貸款，其他收入增加。
Net discount and interchange revenue was up $45 million due to increased cashback debit volume and lower rewards.
由於現金返還借記量增加和獎勵減少，淨折扣和交換收入增加了 4500 萬美元。
The rewards rate was 135 basis points in the period, a decrease of 2 basis points driven by lower cashback match, which was largely offset by an increase in 5% rewards.
該期間的獎勵率為 135 個基點，由於現金返還匹配減少而下降了 2 個基點，但這在很大程度上被 5% 的獎勵增加所抵消。
Sequentially, the reward rate is down 9 basis points from changes in the promotional category.
與促銷類別的變化相比，獎勵率連續下降了 9 個基點。
Moving to expenses on slide 8.
轉到投影片 8 上的費用。
Total operating expenses were up $67 million or 4% year-over-year.
總營運費用比去年同期增加 6,700 萬美元，增幅 4%。
Looking at our major expense categories, compensation costs increased $146 million or 23%, primarily due to higher wages and benefits and proactive employee retention actions.
從我們的主要支出類別來看，薪酬成本增加了 1.46 億美元，增幅為 23%，這主要是由於工資和福利提高以及積極主動的員工保留措施。
Marketing costs declined $73 million in the quarter due to timing of broad market advertising.
由於廣泛市場廣告的時機選擇，本季行銷成本下降了 7,300 萬美元。
Information processing increased as a result of technology investments and a $22 million write-off pertaining to our student loan infrastructure.
由於技術投資和與學生貸款基礎設施相關的 2,200 萬美元註銷，資訊處理能力有所提高。
Professional fees were up $51 million or 16%.
專業費用上漲了 5,100 萬美元，漲幅為 16%。
This increase was driven by approximately $44 million of merger and integration costs and loan sale expenses.
這一增長主要源於約 4,400 萬美元的合併與整合成本以及貸款銷售費用。
We recognized $588 million of risk management and compliance expense in addition to card misclassification cost and $118 million of merger and integration expense in 2024.
除了卡片錯誤分類成本外，我們還確認了 5.88 億美元的風險管理和合規費用，以及 2024 年 1.18 億美元的合併和整合費用。
Moving to credit performance on slide 9.
轉到投影片 9 上的信用表現。
Total net charge-offs were 4.64%, 53 basis points higher than the prior year and down 22 basis points from the prior quarter.
總淨沖銷率為 4.64%，較上年高 53 個基點，較上一季下降 22 個基點。
On a full year basis, net charge-offs ended at 4.8%, slightly better than our guided range.
從全年來看，淨沖銷率為 4.8%，略高於我們的預期範圍。
In card, net charge-offs declined 25 basis points from the prior quarter, and the 30-plus day delinquency rate was flat.
在信用卡方面，淨沖銷額較上一季下降了 25 個基點，30 天以上的拖欠率持平。
This marks the third consecutive quarter that card net charge-off rate has declined.
這標誌著信用卡淨核銷率連續第三個季度下降。
The 2023 card vintage is maturing and is now expected to modestly outperform the 2022 vintage.
2023 年的信用卡年份日益成熟，目前預計其表現將略優於 2022 年的信用卡年份。
We are seeing improvements across the portfolio.
我們看到整個投資組合都在改善。
Personal loan net charge-offs and delinquencies continue to be within historical norms.
個人貸款淨沖銷和拖欠率繼續保持在歷史正常水平之內。
Increases reflect the seasoning of recent growth.
成長體現了近期經濟成長的成熟。
Our view on the consumer has not changed.
我們對消費者的看法沒有改變。
We continue to observe a stable consumer supported by wage growth and a resilient labor market, providing a foundation for sales and credit headed into 2025.
我們持續觀察到，在薪資成長和勞動市場彈性的支持下，消費市場保持穩定，為2025年的銷售和信貸奠定了基礎。
Turning to the allowance for credit losses on slide 10.
轉向第 10 頁的信貸損失準備金。
Our credit reserve balance decreased $189 million from the prior quarter.
我們的信用儲備餘額較上一季減少了 1.89 億美元。
The reserve rate was 6.87%, down 31 basis points driven by our credit performance, improvement in household net worth, and an increase in seasonal transactor balances.
準備率為 6.87%，下降了 31 個基點，原因是我們的信貸表現、家庭淨資產的提高以及季節性交易者餘額的增加。
Absent seasonal balances, the reserve rate would have declined by about 20 basis points.
如果沒有季節性餘額，準備金利率將下降約20個基點。
In terms of the macroeconomic outlook, our expectations for unemployment and GDP are relatively unchanged from last quarter.
在宏觀經濟前景方面，我們對失業率和GDP的預期與上季相比相對沒有變化。
We now assume peak unemployment of 4.7%, up 10 basis points.
我們現在假設失業率高峰為 4.7%，上升 10 個基點。
Our GDP forecast remains in the 1% to 3% range.
我們對 GDP 的預測仍在 1% 至 3% 的範圍內。
Looking at slide 11.
看第 11 張投影片。
Our common equity Tier 1 ratio for the period was 14.1%, up 160 basis points compared to the prior quarter supported by the student loan sale and core earnings generation.
本期間我們的普通股一級資本比率為 14.1%，較上一季上升 160 個基點，這得益於學生貸款銷售和核心盈利的推動。
We declared a quarterly cash dividend of $0.70 per share of common stock.
我們宣布每股普通股派發 0.70 美元的季度現金股利。
Concluding on slide 12.
在投影片 12 上結束。
Given the pending merger, we will not provide numerical guidance.
鑑於合併即將進行，我們不會提供數位指導。
However, I'd like to provide some insights on trends for 2025.
不過，我想對 2025 年的趨勢提供一些見解。
We anticipate loan growth to align more closely with pre-pandemic norms.
我們預期貸款成長將與疫情前的常態更加接近。
Tailwinds from declining payment rates appear to have largely subsided.
支付率下降帶來的利好似乎已基本消退。
Sales and new account generation should play a larger role in driving growth than in the recent past.
銷售和新帳戶開發應該在推動成長方面發揮比過去更大的作用。
We expect net interest margin to remain relatively consistent with the fourth quarter level, although an increase in new account generation may create some margin pressure in the back half of the year.
我們預計淨利差將與第四季度的水平保持相對一致，儘管新帳戶數量的增加可能會在下半年帶來一些利潤率壓力。
Mitigating factors include declining deposit rates and our improved funding mix.
緩解因素包括存款利率下降和融資組合改善。
We have not contemplated any significant changes to our expense base prior to merger approval.
在合併批准之前，我們沒有考慮對我們的費用基礎進行任何重大變更。
Previously, we had shared the expectation for net charge-offs to peak and plateau.
此前，我們曾預期淨沖銷額將達到高峰並穩定下來。
We are beginning to see a downward trend.
我們開始看到下降趨勢。
To summarize, our strong fourth quarter results brought an excellent close to 2024.
總而言之，我們強勁的第四季業績為 2024 年帶來了完美的結束。
In 2025, we will continue to invest in actions that drive sustainable, long-term value, and prepare for the consummation of our pending merger with Capital One.
2025 年，我們將繼續投資於推動永續、長期價值的行動，並為與 Capital One 完成合併做好準備。
This concludes our remarks.
我們的發言到此結束。
I'll turn the call back over to the operator.
我會把電話轉回給接線生。
Operator
Operator
Today's call has ended.
今天的通話已經結束。
The Discover Investor relations team will be available for questions.
Discover 投資人關係團隊將解答您的問題。
Thank you for joining you.
感謝您的加入。
May now disconnect.
現在可以編輯。