Discover Financial Posts Strong Q2 Profits Driven by Higher Interest Income

The credit card issuer reports a 70% increase in quarterly profit, boosted by elevated interest rates and strategic asset sales.

Discover Financial's Q2 net income surged to $1.52 billion, or $6.06 per share, from $895 million, or $3.54 per share, the previous year.
Net interest income rose by 11% year-over-year to $3.52 billion, driven by higher average receivables and net interest margin expansion.
The company reduced its provision for credit losses to $739 million from $1.31 billion a year ago, reflecting improved credit performance.
Discover announced the sale of its student loan portfolio to Carlyle and KKR for up to $10.8 billion, aligning with its strategic focus.
Capital One's proposed $35 billion acquisition of Discover aims to create the largest U.S. credit card issuer by balances and the sixth-largest bank by assets.