RIVERWOODS – Discover Financial Services says its second-quarter net income fell 10 percent as the company freed up less money from reserves set aside to cover customers' unpaid bills.

But the delinquency rate for loans over 30 days past due declined sharply as credit-card users improved at making timely payments.

Discover earned $532 million, or $1 per share, for the three months ended May 31. That compares with $593 million, or $1.09 per share, a year ago. Analysts polled by FactSet expected profit of 99 cents per share.