Discover Financial Services said its profit rose 4.4% in the third quarter as it posted loan growth along with a higher delinquency rate.

Total loans at the credit-card company rose 5% to $73.6 billion. In January, Chief Executive David Nelms set a target to increase total loans by between 4% and 6% in 2016.

Credit loans rose 4% to $58 billion, while Discover card sales volume rose 1%. Personal loans increased 16%.

Overall, Discover earned $639 million, or $1.56 a share, up from $612 million, or $1.38 a share, a year earlier. Revenue net of interest expense increased 5.2% to $2.3 billion. Analysts expected earnings of $1.47 a share on revenue of $2.27 billion.

Discover, which previously reported some charge-off and delinquency metrics in a securities filing, said the delinquency rate for credit card loans over 30 days past due was 1.87%, up 22 basis points from a year earlier.

Provision for loan losses was $445 million, up $113 million from the prior year.

Shares were flat at $56.14 in after-hours trading.

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

October 25, 2016 19:15 ET (23:15 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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