Morgan Stanley Reports Discover Card Results

Morgan Stanley announced quarterly earnings results this morning for the quarter ending May 31, 2005 -- including results for its Credit Services unit which is primarily made up of Discover Card. Financial details were included in the Financial Supplement (PDF).

Discover reported 45.9 million accounts of which 19.3 million were active. Transaction volume increased 4 percent year over year to $25.4 billion and 314 million transactions for the first quarter at an average ticket of $80.89. Merchant, cardmember and other fees were $486 million, up 4 percent.

Managed credit card loans remained flat at $46.8 billion while net interest income fell $108 million due to a narrower interest rate spread. Average receivables per active account were $2,426, up 4 percent. Payment volume per active account was $1,306, up 8 percent. Net credit chargeoffs were the best in four years declining to 4.94 percent from 6.48 percent.

Credit Services also reported 452 million Pulse PIN debit transactions for the quarter.