Business

Discover Financial 1Q net income rises 2 pct

Posted April 23, 2013 9:00 am

Riverwoods-based 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, Ill.-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.

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