Discover Financial Services 4Q net income rises

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Associated Press

Posted on December 20, 2012 at 10:00 AM

Updated Thursday, Dec 20 at 10:02 AM

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.

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