Discover 2015 Annual Report Download - page 77
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loans, as well as a decrease in PCI student loan balances. Interest expense increased during the year ended December
31, 2015 as compared to the year ended December 31, 2014 primarily due to increases in unsecured debt to fund
loan growth.
For the Year Ended December 31, 2014 compared to the Year Ended December 31, 2013
Net interest margin increased for the year ended December 31, 2014 as compared to the year ended December
31, 2013 primarily driven by an increase in the yield on total loan receivables combined with lower interest rates on
funding. The increase in loan receivable yields was driven by higher interest rates and growth in non-promotional
revolving balances, partially offset by a decline in higher rate balances along with growth in credit card promotional
balances.
Interest income increased during the year ended December 31, 2014 as compared to the year ended December
31, 2013 primarily due to higher average balances of credit card loans, personal loans and private student loans
resulting from growth across these products. The increase was also attributable to higher yields on credit card loans and
PCI student loans, partially offset by a decrease in yield on personal loans along with a decrease in PCI student loan
balances.
Interest expense was relatively flat during the year ended December 31, 2014 as compared to the year ended
December 31, 2013, as lower interest expense on deposits attributable to lower yields was offset by higher interest
expense resulting from increase in borrowings.