State and Nation Business

Discover Financial 1Q net income rises 2 pct

RIVERWOODS – Discover Financial Services says its first-quarter net income rose 2 percent, boosted by loan growth.

Discover posted a profit after paying preferred dividends of $659 million, or $1.33 per share, up from $644 million, or $1.21 per share, in the same quarter last year.

Analysts, on average, expected $1.13 per share, according to FactSet.

Revenue net of interest expense increased 10 percent to $1.99 billion. The company credited loan growth, revenue from Discover Home Loans, which was launched in June 2012, and lower funding costs.

Total loans increased 7 percent to $60.4 billion. Credit card loans increased 5 percent to $48.7 billion.

Riverwoods-based Discover, best known for its namesake credit card, is the sixth-largest U.S. credit-card issuer.

Shares rose 3.3 percent, or $1.45, to $45.06 in morning trading.

Loading more

Digital Access

Digital Access
Access nwherald.com from all your digital devices and receive breaking news and updates from around the area.

Home Delivery

Home Delivery
Local news, prep sports, Chicago sports, local and regional entertainment, business, home and lifestyle, food, classified and more! News you use every day! Daily, weekend and Sunday packages.

Text Alerts

Text Alerts
Stay connected to us wherever you are! Get breaking news updates along with other area information sent to you as a text message to your wireless device.

Email Newsletters

Email Newsletters
We'll deliver news & updates to your inbox. Plan your weekend and catch up on the news with our newsletters.