Discover Financial Profit Tops Estimates, Revenue Misses

(RTTNews) - Discover Financial Services (DFS) on Wednesday reported second-quarter net earnings of $586 million or $1.33 per share compared with $630 million or $1.35 per share last year.

Revenues, net of interest expense, for the quarter were $2.175 billion, an increase of $3 million from a year ago.

Analysts polled by Thomson Reuters estimated earnings of $1.32 per share on revenues of $2.220 billion for the quarter. Analysts' estimates typically exclude special items.

Provision for loan losses decreased to $306 million from $360 million last year.

Other expenses were higher at $927 million versus $797 million a year ago.

Total loans grew 4.8% from the prior year to $69 billion, Discover said.

"We once again generated solid loan growth amid heightened competition, marking more than four years of quarterly card receivables growth," said CEO David Nelms. "Our results benefited from strong credit results with both overall charge-off and delinquency rates declining versus last year."