發現金融 (DFS) 2025 Q1 法說會逐字稿

(Operator Instructions)

（操作員指示）

Good morning. My name is Margot, and I will be your operator today. At this time, I would like to welcome everyone to the first quarter 2025 Discover Financial Services earnings conference call. (Operator Instructions)

早安.我叫瑪格特，今天我將擔任您的接線生。現在，我歡迎大家參加 Discover Financial Services 2025 年第一季財報電話會議。（操作員指示）

Thank you, operator. I'll begin by referencing slide 2 of our earnings presentation, which you can find in the financial section of our investor relations website, investor relations.discover.com.

謝謝您，接線生。我將首先引用我們的收益報告的第二張幻燈片，您可以在我們的投資者關係網站 investor relations.discover.com 的財務部分找到它。

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，可能導致實際結果大不相同。

Please refer to our notices regarding forward-looking statements that appear in our first quarter 2025 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 2025 年第一季財報新聞稿和簡報中出現的前瞻性陳述的通知，以及我們年度報告和向美國證券交易委員會提交的其他文件中詳述的風險因素。

Our call today will include remarks from our Interim CEO and President, Michael Shepherd, and John Greene, our Chief Financial Officer. There will be no question and answer session following today's remarks.

我們今天的電話會議將包括我們的臨時執行長兼總裁 Michael Shepherd 和財務長約翰·格林 (John Greene) 的演講。今天的講話之後將不會有問答環節。

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。

Thank you, Erin. Good morning, and welcome to today's call. I'd like you to begin by providing a few brief comments about the merger with Capital One. Of course, we're very pleased to report that the Federal Reserve Board and the Office of the Comptroller of the Currency approved our merger with Capital One.

謝謝你，艾琳。早上好，歡迎參加今天的電話會議。首先，我想請您就與 Capital One 的合併發表一些簡短的評論。當然，我們非常高興地報告，聯準會委員會和貨幣監理署批准了我們與 Capital One 的合併。

These decisions follow the approval of the transaction by the Delaware State Bank Commissioner in December of last year and by our shareholders in February of this year with over 99% of the ballots cast voting in favor of the merger.The transaction is expected to close on May 18, 2025, subject to the satisfaction of the customary closing conditions.

這些決定是在去年 12 月特拉華州銀行專員批准該交易以及今年 2 月我們的股東以超過 99% 的投票贊成合併之後做出的。該交易預計將於 2025 年 5 月 18 日完成，但須滿足慣例成交條件。

We look forward to completing the merger and believe the combination of our two great companies will increase competition and payment networks, offer a wider range of products to our customers, increase the resources devoted to innovation and security, as well as bring meaningful benefits to our communities and shareholders.

我們期待完成合併，並相信兩家偉大公司的合併將增加競爭和支付網絡，為我們的客戶提供更廣泛的產品，增加用於創新和安全的資源，並為我們的社區和股東帶來有意義的利益。

Shifting focus to our recently reported quarterly results, Discover's financial performance remains strong in the first quarter. Earnings per share increased by 31% compared to last year, driven by a healthy net interest margin and good credit performance.

將焦點轉移到我們最近報告的季度業績上，Discover 的第一季財務表現仍然強勁。受健康的淨利差和良好的信貸表現推動，每股收益較去年同期增長 31%。

Discover customer behavior was stable, evidenced by spend, payment, and credit trends. The card 30+ day delinquency rate decreased by 18 basis points compared to last quarter, and the card net charge-off rate improved year over year. Consequently, our acquisition and underwriting strategies did not change materially during the quarter.

發現客戶行為穩定，從消費、支付和信用趨勢可以看出。信用卡30天以上拖欠率較上一季下降18個基點，信用卡淨沖銷率年減。因此，我們的收購和承保策略在本季沒有重大變化。

In light of increasing macroeconomic uncertainty, we are closely monitoring economic developments and consumer health. With that, I'll now ask John Greene to review our first quarter of financial results.

鑑於宏觀經濟不確定性日益增加，我們正在密切關注經濟發展和消費者健康狀況。現在，我將請約翰·格林回顧我們第一季的財務表現。

Thank you, Michael. I'll start with our summary financial results on slide 4. In the first quarter, we reported net income of $1.1 billion, which was up 30% from the prior year. Provision expense declined by $253 million reflecting a reduction in our credit reserve balance and lower net charge-offs. Net interest income increased by $71 million from continued net interest margin expansion.

謝謝你，麥可。我將從投影片 4 上的財務表現總結開始。第一季度，我們的淨收入為 11 億美元，比上年增長 30%。撥備支出減少了 2.53 億美元，反映了我們的信貸準備金餘額減少和淨沖銷額下降。由於淨利差持續擴大，淨利息收入增加了 7,100 萬美元。

Let's review the details beginning with revenue on slide 5. Our net interest margin ended the quarter at 12.18%, up 115 basis points from the prior year, and up 22 basis points sequentially. Over the past year, margin expansion has been driven by the student loan sale, a lower card promotional balance mix, and a reduction in consumer deposit pricing.

讓我們從幻燈片 5 上的收入開始回顧一下詳細資訊。本季末，我們的淨利差為 12.18%，比上年同期上升 115 個基點，比上一季上升 22 個基點。在過去的一年裡，利潤率的擴大受到學生貸款銷售、較低的信用卡促銷餘額組合以及消費者存款價格的降低的推動。

Quarter over quarter, the main driver was lower deposit cost. Card receivables were relatively stable, down 0.5% year over year from modestly lower sales. The payment rate increased 10 basis points from last year and was sequentially flat.

與上一季相比，主要驅動因素是存款成本下降。信用卡應收帳款相對穩定，由於銷售額略有下降，較去年同期下降 0.5%。支付率較去年同期增加10個基點，與上一季持平。

Discover card sales were down 2% compared to the prior year. The declining card sales was from past credit tightening actions. Personal loan balances were flat. Although demand remains robust, our conservative underwriting posture and increased competition has slowed the pace of new originations.

與前一年相比，Discover 卡銷售額下降了 2%。信用卡銷售額的下降是由於過去的信貸緊縮措施造成的。個人貸款餘額持平。儘管需求依然強勁，但我們保守的核保態度和日益激烈的競爭減緩了新業務的發展速度。

Total loans after, adjusting for the student loan sale, increased 1% from last year. Average consumer deposits were up 6% year over year and 1% sequentially. We grew direct-to-consumer deposit balances by $2 billion in the quarter while reducing average deposit rates by 22 basis points. Direct-to-consumer deposits now account for 74% of total funding.

經學生貸款出售調整後的貸款總額比去年增加了 1%。平均消費者存款年增 6%，季增 1%。本季度，我們的直接面向消費者的存款餘額增加了 20 億美元，同時平均存款利率降低了 22 個基點。直接面向消費者的存款目前佔總融資額的 74%。

Looking at other revenue on slide 6. Non-interest income increased $20 million or 3%, driven by an increase in net discount and interchange revenue. The rewards rate was 140 basis points in the period, an increase of 1 basis point, driven by higher spend in the 5% category, which was largely offset by lower cashback match. Sequentially, the rewards rate was up 5 basis points from changes in the promotional category.

查看幻燈片 6 上的其他收入。非利息收入增加了 2000 萬美元，即 3%，這得益於淨折扣和交換收入的增加。該期間的獎勵率為 140 個基點，增加了 1 個基點，這主要是由於 5% 類別的支出增加所致，但這在很大程度上被較低的現金返還匹配所抵消。連續，獎勵率因促銷類別的變化而上升了 5 個基點。

Moving to expenses on slide 7. Total operating expenses were up $19 million or 1% year over year. Looking at our major expense categories. Compensation costs increased $64 million or 10%, primarily due to higher wages and benefits and proactive employee retention actions.

轉到投影片 7 上的費用。總營運費用年增 1,900 萬美元，即 1%。查看我們的主要支出類別。薪資成本增加了 6,400 萬美元，即 10%，主要原因是薪資和福利增加以及積極主動的員工保留措施。

Information processing increased $17 million or 10% as a result of technology investments related to software and increased systems usage. And other expenses decreased $59 million from a $45 million reduction in anticipated civil penalties and a $20 million decline in legal fees.

由於與軟體相關的技術投資和系統使用率的提高，資訊處理增加了 1700 萬美元，即 10%。其他費用減少了 5,900 萬美元，其中預期民事罰款減少 4,500 萬美元，法律費用減少 2,000 萬美元。

Moving to credit performance on slide 8. Total net charge-offs were 4.99%, 7 basis points higher than the prior year, and up 35 basis points from the prior quarter. Excluding the impact of the student loan sale, the net charge-off rate would have been down 24 basis points year over year.

轉到投影片 8 上的信用表現。總淨沖銷率為 4.99%，比前一年高 7 個基點，比上一季高 35 個基點。如果不計學生貸款出售的影響，淨沖銷率將年減 24 個基點。

In card, net charge offs increased 44 basis points from the prior quarter, primarily driven by normal seasonal trends. The 30+ day delinquency rate continued to improve, declining in the quarter after plateauing in the second half of 2024.

在信用卡方面，淨沖銷額較上一季增加了 44 個基點，主要受正常季節性趨勢的影響。30 天以上的拖欠率持續改善，在 2024 年下半年達到穩定水準後，本季有所下降。

Personal loan, net charge offs, and delinquencies were stable compared to the last quarter. Delinquency formation, vintage performance, and portfolio trends remained positive.

與上一季相比，個人貸款、淨沖銷和拖欠情況保持穩定。拖欠形成、歷史表現和投資組合趨勢仍然保持積極。

Turning to the allowance for credit losses on slide 9. Our credit reserve balance decreased $215 million from the prior quarter. The reserve rate was relatively unchanged at 6.91%, up 4 basis points.

前往第 9 張投影片上的信貸損失準備金。我們的信貸儲備餘額較上一季減少了 2.15 億美元。存款準備率基本維持不變，為6.91%，上升4個基點。

Looking at slide 10. Our Common Equity Tier 1 ratio for the period was 14.7%, up 60 basis points compared to the prior quarter driven by core earnings generation, partially offset by the impact of the final Cecil phase in which reduced capital by approximately 43 basis points.

看投影片 10。本期間我們的普通股一級資本比率為 14.7%，較上一季度上升 60 個基點，主要受核心盈利推動，但部分抵消了最後階段塞西爾資本減少約 43 個基點的影響。

We declared a quarterly cash dividend of $0.70 per share of common stock because the planned closing of the merger with Capital One is May 18. We expect that holders of the Discover's common stock will not receive any Discover dividend. But will instead receive any dividend declared on shares of Capital One Common stock if they are holders of record of Capital One stock as of the applicable record date. As it relates to 2025 trends, we have elected not to provide an update due to our upcoming merger.

我們宣布每股普通股派發 0.70 美元的季度現金股息，因為與 Capital One 的合併計劃於 5 月 18 日完成。我們預計 Discover 普通股持有人將不會收到任何 Discover 股息。但如果他們在適用的記錄日期之前是 Capital One 股票的記錄持有人，則他們將獲得 Capital One 普通股股票宣布的任何股息。由於與 2025 年趨勢相關，我們決定不提供更新，因為我們即將進行合併。

In summary, our fundamental performance in the first quarter was strong, underscored by our robust net interest margin, strong credit performance, and healthy capital and liquidity levels.

綜上所述，我們第一季的基本表現強勁，這得益於我們強勁的淨利差、強勁的信貸表現以及健康的資本和流動性水平。

Given the recent merger approval and anticipated closing date, this is likely Discover Financial Services' final earnings call. I want to take this opportunity to thank the covering analysts and our shareholders for your support over the years, and for your support of our merger with Capital One. We wish you all the best. With that, I'll turn the call back over to the operator.

鑑於最近的合併批准和預計的截止日期，這很可能是 Discover Financial Services 的最後一次收益電話會議。我想藉此機會感謝各位分析師和我們的股東多年來的支持，以及對我們與 Capital One 合併的支持。我們祝福您一切順利。說完這些，我就把電話轉回接線生。

Today's call has ended. Thank you for joining. You may now disconnect.

今天的通話已經結束。感謝您的加入。您現在可以斷開連線。