Discover Financial Services posted a 4.5% increase in
first-quarter net interest income, as total loans and credit-card
loans both grew from the year earlier.
Results were in line with Wall Street expectations.
Total loans grew 5.9% from the prior-year period to $67.6
billion. Credit-card loans rose 5.1% to $53.5 billion.
For the latest quarter, Discover reported a profit of $586
million, down 7.1% from the $631 million in the year-earlier
period. On a per-share basis, earnings were $1.28 a share, down
from $1.31 a share. The return on equity was 21%.
Revenue of net interest expenses grew to $2.17 billion, from
$2.08 billion a year ago.
Analysts polled by Thomson Reuters had projected earnings of
$1.27 a share on revenue of $2.17 billion.
Expenses increased 13% from the year before, due to costs
associated with anti-money-laundering programs, and higher legal
reserves.
Write to Angela Chen at angela.chen@dowjones.com
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