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Stock impact report

Discover Financial profit jumps on lower loss provision and higher interest income [Yahoo! Finance]

Capital One Financial Corporation (COF) 
Last capital one financial corporation earnings: 4/23 04:05 pm Check Earnings Report
Company Research Source: Yahoo! Finance
Interest rates on credit card debt are significantly higher than those on mortgages and other loans, shielding consumer finance companies like Discover from pullback on discretionary spending amid economic uncertainty. While a low unemployment rate of 4.2% and a 3.8% annual wage growth in March offered some relief, executives of large banks have warned that U.S. consumer spending faces huge risks if the upheaval sparked by the tit-for-tat trade policy persists. Discover's provision for credit losses fell 17% to $1.24 billion in the quarter ended March 31 from about $1.50 billion in the year-ago period. The company reported net interest income of $3.56 billion for the first quarter, up over 2% from the same quarter last year. Net interest margin, a key gauge of profitability, expanded 115 basis points to 12.18% helped by Discover's sale of its student loan portfolio to Carlyle and KKR in July 2024, the company said. Capital One Financial, whose $35.3 billion all-stock deal to Show less Read more
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