RIVERWOODS, Ill. (AP) — Discover's fourth-quarter net income rose 6 percent as more customers paid off credit card balances on time and it wrote off fewer unpaid balances.
For the period ended Nov. 30, the credit-card issuer and payments-network operator earned $541 million, or $1.07 per share. That compares with $513 million, or 95 cents per share, a year earlier.
Analysts expected earnings of $1.12 per share.
Shares of Discover Financial Services, based in Riverwoods, Ill., fell more than 2 percent in premarket trading Thursday.
Revenue climbed 11 percent to $2 billion, after interest expense. Wall Street forecast $1.96 billion.
The rate at which Discover wrote off unpaid credit card balances dropped to a historic low of 2.29 percent.
The delinquency rate on credit-card loans over 30 days past due improved as well.