Discover reports Q2 credit loss provision $739M vs. $1.3B

The company states: “Provision for credit losses of $739 million decreased $566 million from the prior year quarter driven by an $869 million private student loan reserve release and a $281 million lower reserve build, partially offset by a $598 million increase in net charge-offs. The total net charge-off rate was 4.83%, up 161 basis points from the prior year period and down 9 basis points from the prior quarter reflecting continued seasoning of recent vintages. The credit card net charge-off rate was 5.55%, up 187 basis points from the prior year period and down 11 basis points from the prior quarter. The 30+ day delinquency rate for credit card loans was 3.69%, up 83 basis points year-over-year and down 14 basis points from the prior quarter. The Personal loan net charge-off rate of 3.98% was up 170 basis points from the prior year and down 4 basis points from the prior quarter. Private Student loans net charge-off rate was 1.85%, up 60 basis points from the prior year and up 27 basis points from the prior quarter.”