Thursday, December 20, 2012

Discover Financial Services 4Q net income rises

(AP) ? Discover's fourth-quarter net income rose 6 percent as more customers paid off credit card balances on time and it wrote off fewer unpaid balances.

For the period ended Nov. 30, the credit-card issuer and payments-network operator earned $541 million, or $1.07 per share. That compares with $513 million, or 95 cents per share, a year earlier.

Analysts expected earnings of $1.12 per share.

Shares of Discover Financial Services, based in Riverwoods, Ill., fell more than 2 percent in premarket trading Thursday.

Revenue climbed 11 percent to $2 billion, after interest expense. Wall Street forecast $1.96 billion.

The rate at which Discover wrote off unpaid credit card balances dropped to a historic low of 2.29 percent.

The delinquency rate on credit-card loans over 30 days past due improved as well.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2012-12-20-Earns-Discover%20Financial/id-cc886a14b48e4c23adbf1241c3409db5

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