RESERVE IMPACT: Discover Financial Services reported an 8 percent annual drop in net income for the third quarter, as the lender and credit card issuer set aside more funds to cover potential loan losses.
THE NUMBERS: Discover posted a profit after paying preferred dividends of $579 million, or $1.20 per share, for the July-September period. Revenue net of interest expense rose 3 percent to $2.06 billion.
LOAN & SPENDING GROWTH: Sales volume for Discover's namesake credit card rose 3 percent, while card loans rose 4 percent. Overall loans, including private education and personal loans, increased 5 percent.