Discover Financial Services Inc. (DFS) isn't yet repaying the government's investment in the company, chief executive David Nelms said Thursday.

"We do have a process we go through with regulators and the board" before the federal funds may be repaid, Nelms said during a Webcast of a discussion of the company's fiscal third-quarter results announced earlier Thursday.

While Discover is "feeling increasingly positive" about its ability to successfully sell stock and tap the debt markets in the most recent quarter, it has yet to go through the process that will pave the way for repaying the government, Nelms said.

Investors have taken comfort from Discover's transformation into a bank-holding company. With that status, Discover has participated in government-led efforts aimed at stabilizing the industry.

The company got $1.2 billion in March from the U.S. Treasury's Troubled Asset Relief Program in exchange for a stake in the company.

In July, at the time Discover commenced its $534 million stock offering, the company said it may use a portion of the funds to repay the government.

For the quarter ended Aug. 31, Discover posted net income of $577.5 million, or $1.07 a share, up from $180.1 million, or 37 cents a share, a year earlier.

The latest results include an after-tax gain of $287 million related to an antitrust settlement. The company will get another payment related to this settlement.

The company's shares recently traded at $16.04, up 72 cents, or 4.70%. The stock is within striking distance of its 52-week high of $17.70, reached last September.

Unlike most other card companies, which either issue plastic or process the transactions, Discover and bigger rival American Express Co. (AXP) do both. Therefore, in addition to the interest Discover earns on its credit-card loans, a chunk of its revenue comes from fees it charges banks and merchants, such as grocery stores or gas stations, to process card payments.

-By Aparajita Saha-Bubna, Dow Jones Newswires; 617-654-6729; aparajita.saha-bubna@dowjones.com