Growth in loans, decline in loan-loss reserves boost Discover Financial's 4Q profit - InfoNews

Current Conditions

Clear
-1.9°C

Growth in loans, decline in loan-loss reserves boost Discover Financial's 4Q profit

In this Tuesday, Jan. 21, 2014, photo a Discover sign hangs on the door of a business in Robinson Township, Pa. Discover reports quarterly earnings on Thursday, Jan. 23, 2014. (AP Photo/Gene J. Puskar)
January 23, 2014 - 1:53 PM

LOS ANGELES, Calif. - Discover Financial Services says its fourth-quarter net income jumped 11 per cent, as users of its namesake credit card and other loan services stepped up borrowing and the company set aside less money to cover potential loan losses.

The lender said Thursday that its profit after paying preferred dividends was $588 million, or $1.23 per share, in the three months ended Nov. 30. That compares with $530 million, or $1.06 per share, in the prior-year quarter.

Revenue net of interest expense grew about 6 per cent to $2.13 billion, up from $2.02 billion.

Analysts polled by FactSet expected earnings of $1.17 per share on $2.1 billion in revenue.

Total loans grew 5 per cent from a year earlier.

Shares of Riverwoods, Ill.-based Discover rose 1.2 per cent in after-market trading.

News from © The Associated Press, 2014
The Associated Press

  • Popular kelowna News
  • Comments
  • New mountain highway proposed between Red Deer and Kamloops
    An Alberta development group is pitching the idea of a new highway linking central Alberta to B.C. cutting through the mountains and a section of Banff National Park. The Central Alberta Eco
  • Kamloops firefighter back at work after co-workers saved his life
    Four months after his co-workers saved his life, a Kamloops firefighter is back at work. Mike Silva has been working with Kamloops Fire Rescue for 15 years and was enjoying some time off in
  • Pier 1 closing all of its stores in Canada
    Pier 1 Imports, Inc. announced today that it has entered into bankruptcy protection and is pursuing a sale. The retailer  commenced voluntary Chapter 11 proceedings in the U.S. Bankrupt
  • West Kelowna's Bull Mountain glistens for its close-up
    It’s not a secret that West Kelowna’s family ski hill is getting infused with new life. Bull Mountain Adventure Park is being built on the remnants of Crystal Mountain Resort, an
  • Vernon family captures mesmerizing melting ice
    A Vernon family was on their way home from Kelowna when they made a pit stop after noticing a beautiful scene along Wood Lake. Matthew Royal and his daughters noticed how “cool”
View Site in: Desktop | Mobile