Discover remains profitable in 2nd-quarter
CHARLOTTE, N.C. — Discover Financial Services says it managed to remain profitable during its fiscal second quarter, thanks to a payment from a lawsuit settlement.
The credit card lender said Thursday its earnings available to common shareholders slipped to $209.2 million, or 43 cents per share, during the quarter ended May 31. That’s down from $234.1 million, or 48 cents per share, a year earlier.
The latest results were bolstered by an estimated $295 million after taxes related to a settlement of an antitrust lawsuit with Visa Inc. and MasterCard Inc.
As with other credit card lenders, Riverwoods, Ill.-based Discover continues to face mounting card losses as more customers fall behind on payments. During the quarter it tripled its loan-loss reserves.