Discover Financial's profit falls 8 percent in 3Q

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Associated Press

Posted on October 21, 2013 at 4:02 PM

LOS ANGELES (AP) — Discover Financial Services says its third-quarter net income fell 8 percent, as the lender set aside more funds to cover potential loan losses.

The earnings just missed Wall Street expectations, sending shares down 5 percent in after-market trading on Monday.

Discover said Monday that it posted a profit after paying preferred dividends of $579 million, or $1.20 per share, in the three months ended Sept. 30.

That compares with net income of $631 million, or $1.24 per share, in the same months a year earlier.

Revenue net of interest expense rose 3 percent to $2.06 billion.

Analysts polled by FactSet expected earnings of $1.21 per share on $2.06 billion in revenue.

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

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