Discover Financial Services (DFS, Financial) (DFS - $118.29 – NYSE) is the nancial holding company that o ers the Discovercredit card, operates the on-line Discover Bank, and provides student loans. Shares responded favorably to strong rst quarter earnings results. ese were mostly driven by the company’s ability to reserve some of the enormous credit reserves it built up in 2020. us far, lenders have seen much better credit performance in this economic slowdown because of the government’s massive stimulus programs. With those scheduled to taper o in the coming quarters, Discover is well positioned to grow its loan balances while maintaining very healthy capital and reserves. Some of this is likely to come back to shareholders in the form of dividends and share buybacks.
From Keeley Asset Management Corp (Trades, Portfolio)'s Mid Cap Dividend Value Fund second-quarter letter.
