Discover Financial posts lower 4Q profit as one-time charges offset growth in card lending

Industries Associated Press

Discover Financial Services says its fourth-quarter net income tumbled 33 percent as the credit card issuer and lender booked hefty one-time charges.

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Shares fell 3.5 percent in extended trading to $58.70.

The Riverwoods, Illinois-based company said Wednesday that net income after paying preferred dividends fell to $392 million, or 87 cents per share, for the three months ended Dec. 31. yaThat compares with net income of $588 million, or $1.23 per share, a year earlier.

Excluding the impact of the one-time charges, Discover's earnings amounted to $1.19 per share. Analysts polled by FactSet expected earnings of $1.30 per share.

Revenue, net of interest expense, declined 4 percent, to $2.04 billion from $2.13 billion. Analysts predicted $2.2 billion.

Total loans, which include mortgages, climbed 6.4 percent.