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