Discover Financial's profit grows 11 percent in 4Q

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Associated Press

Posted on January 23, 2014 at 3:01 PM

Updated Thursday, Jan 23 at 3:02 PM

LOS ANGELES (AP) — Discover Financial Services says its fourth-quarter net income jumped 11 percent, 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 percent 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 percent from a year earlier.

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

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