Discover Financial Services on Thursday reported higher earnings for its fiscal fourth quarter, as users of its namesake credit card stepped up purchases and the company wrote off fewer unpaid balances.
Even so, the company’s results fell short of Wall Street expectations.
Discover, the nation’s sixth-largest credit card issuer, said total loans, credit card loans and Discover card sales volume increased 6 percent in the quarter. Discover card sales volume increased to $26.5 billion, while credit card loans at the end of the quarter totaled $49.6 billion. Nationwide the rate of credit card payments at least 90 days overdue edged up in the third quarter to 0.75 percent, according to credit reporting agency TransUnion.