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News Summary: Discover posts lower 3Q profit

The Associated Press

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.