Citi Raises Q2 Estimates On Discover Financial Services To $0.73

According to Citi, Discover Financial Services DFS Q2 estimate is raised to $0.73. Citi said that it is raising its Q2 est to $0.73 to reflect better credit (consensus is $0.69). “As of Q1, mgt noted their 10.2% TCE/TMA vs. their long-term 8% target, which left them with $1.4 B of excess capital. We project this pool to further increase as TCE/TMA peaks at 10.7% in Q2. To begin to deploy a portion of the excess capital, DFS announced a $1 B share buyback on June 16th. Given their strong capital position, we'd except fairly active repurchases until loan growth meaningfully picks up.” Discover Financial Services closed yesterday at $23.67.