Discover Financial Services (DFS) Q1 2023 Earnings Call Transcript

Discover Financial Services (NYSE:DFS) Q1 2023 Earnings Conference Call April 20, 2023 8:00 AM ET

Company Participants

Eric Wasserstrom - Head of Investor Relations

Roger Hochschild - Chief Executive Officer

John Greene - Chief Financial Officer

Conference Call Participants

Sanjay Sakhrani - KBW

Moshe Orenbuch - Credit Suisse

Bob Napoli - William Blair

Rick Shane - JPMorgan

Jeff Adelson - Morgan Stanley

Dominick Gabriele - Oppenheimer

Mark DeVries - Barclays

Operator

Good morning. My name is Chelsea, and I will be your conference operator today. At this time, I would like to welcome everyone to the First Quarter 2023 Discover Financial Services Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.

I will now turn the call over to Mr. Eric Wasserstrom, Head of Investor Relations. Sir, please go ahead.

Eric Wasserstrom

Thank you, Chelsea, and good morning, everyone. Welcome to this morning's call. I'll begin on slide two of our earnings presentation, which you can find in the financial section of our Investor Relations website, investorrelations.discover.com.

Our discussion today contains certain forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially. Please refer to our notices regarding forward-looking statements that appear in our first quarter earnings press release and presentation.

Our call today will include remarks from our CEO, Roger Hochschild; and John Greene, our Chief Financial Officer. After we conclude our formal comments, there will be time for a question-and-answer session. During the Q&A session, you’ll be permitted to ask one question followed by one follow-up question. After your follow-up questions, please return to the queue.

Now, it's my pleasure to turn the call over to Roger.

Roger Hochschild

Thanks, Eric, and thanks to our listeners for joining today's call. I'll begin by commenting on some of the recent events in the banking industry, review our highlights for the quarter, and then John will take you through the details of our first quarter results and our updated perspectives on 2023.

This past quarter include the failure of two large banks, an event that catalyzed more widespread stress in some segments of the banking system and raised questions about the funding models and embedded portfolio losses of multiple banks.

In contrast, our strong results underscore how our model, with its diversified funding, trusted brand, focus on prime consumer lending and conservative risk management positions us to succeed through a range of operating conditions.