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DFS Services, a subsidiary of $DFS, has entered into an agreement with National Payments Corporation of Vietnam to form a strategic alliance. The collaboration facilitates acceptance of Global Cards of National Payments on the Discover Global Network, outside of Vietnam. It also allows member banks of Discover to issue NAPAS Global Cards.
$DFS announced that cardmembers and Discover Bank customers who own an iPhone X can take advantage of Face ID to sign in to the Discover Mobile app. The feature offers app users a secure mobile log-in experience that requires no more than glancing at the device. Face ID on iPhone X uses the TrueDepth camera system for secure authentication.
Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) signed an agreement to become the issuer of Diners Club cards in Vietnam. This expands its existing acquiring relationship with Diners Club International Ltd., a business unit of $DFS. This agreement will focus on expanding VietinBank’s card issuing portfolio in Vietnam.
Financial services firm $DFS announced a $2.75Bil share repurchase program. The five-quarter program replaces the previous five-quarter $2.5Bil program, and expires on October 31, 2018. The company also declared a cash dividend of $0.35 per share on its common stock, payable on September 7, 2017, to shareholders of record as of August 24, 2017.
$DFS received no objections from the Federal Reserve with respect to proposed capital actions through June 30, 2018. The plan includes an increase in its next quarterly dividend from $0.30 to $0.35 per share and share repurchases of up to $2.23Bil during the four quarters ending June 30, 2018.
$DFS said its cardmembers can now make payments in the United States using Samsung Pay on the latest Samsung Galaxy smartphones and wearables. Samsung Pay works at payment terminals that use both Magnetic Secure Transmission (MST) and Near Field Communication (NFC) technology.
Financial services firm $DFS has launched a hiring initiative to fill more than 200 open positions in its Phoenix location, including full-time positions in customer service, collections and fraud. The customer care center provides customer service, banking, marketing services and support functions for Discover and Discover Network customers.
Discover Global Network, part of $DFS, entered into an agreement with Desjardins Group to expand acceptance in Canada. Merchants that have business relationships with Desjardins are now able to accept cards that run on the Discover Global Network, including Discover, Diners Club and alliance partner cards.
Direct Banking pretax income for $DFS was $824MM in 1Q17, down 7% from the prior year as higher provision for loan losses and lower other income more than offset higher net interest income. Payment Services pretax income jumped 37% to $44MM, primarily driven by a reserve release related to a Diners Club International licensee.
In 1Q17, credit card loans for $DFS grew 7% to $59.8Bil and Discover card sales volume increased 6%. Consumer deposits gained 13% from the prior year to $37.1Bil. Payment Services transaction dollar volume was $47.1Bil, up 5%. Provision for loan losses was at $594MM, up by $171MM from a year ago.
$DFS reported a net income of $564MM or $1.43 per diluted share for 1Q17, compared to $575MM or $1.35 per diluted share a year ago. Net interest income rose 8% to $1.89Bil. Net interest margin was 10.07%, up 13 basis points from the prior year. Total loans ended the quarter at $75.8Bil, up 8%.
$DFS' card and personal loans finished 2016 with a strong 4Q16 accelerating total loan growth to almost 7% over the prior year. Card balances were driven by increased sales, which were up 3%, a higher revolve rate on merchandise sales and higher promotional balances. Personal loans grew 18% over the prior year. Student loans grew 2%.