LOS ANGELES (AP) — Discover Financial Services says its third-quarter net income fell 8 percent, as the lender set aside more funds to cover potential loan losses.
The earnings just missed Wall Street expectations, sending shares down 5 percent in after-market trading on Monday.
Discover said Monday that it posted a profit after paying preferred dividends of $579 million, or $1.20 per share, in the three months ended Sept. 30.
That compares with net income of $631 million, or $1.24 per share, in the same months a year earlier.
Revenue net of interest expense rose 3 percent to $2.06 billion.
Analysts polled by FactSet expected earnings of $1.21 per share on $2.06 billion in revenue.
Riverwoods, Ill.-based Discover, best known for its namesake credit card, is the sixth-largest U.S. credit-card issuer.