Digital Transactions Authoritative, insightful and timely information for payments professionals
Discover Financial Services posted single-digit growth rates for both its Pulse and Discover network units in the fourth quarter of 2022.
Discover on Thursday said volume on its Discover Network was $58.1 million in the quarter, a 9.2% increase from $453.2 million in the year-ago quarter. Pulse, Discover’s debit network, had $66.8 million in volume, up 3.1% from $64.8 million in the 2021 fourth quarter.
The fourth quarter was the strongest for Pulse, which had $59.8 million in volume in the 2022 first quarter, followed by $63 million in the second and $63.4 million in the third.
Sales volume on the Discover Card was $55.7 million in the quarter, up 8.6% from $51.3 million a year prior.
By segment, its digital-banking segment, which includes lending, posted $1.3 billion in net income in the quarter, down 13.3% from $1.5 billion in the 2021 fourth quarter. That surpasses Discover’s payment-services segment’s quarterly net income of $37 million last year. It posted a $97 million loss in the fourth quarter of 2021.
Overall, Discover posted $1 billion in net income for the quarter, down 9% from $1.1 billion a year ago. “Our outstanding results in 2022 were driven by record loan growth and margin expansion, factors that should sustain strong revenue growth into next year,” Roger Hochschild, Discover president and chief executive, said in a statement.
