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Discover Financial fourth-quarter profit jumps on lower loan loss provisions

Discover Financial Services reported a significant increase in its fourth-quarter profit for 2024, with net income rising to $388 million, or $1.54 per share, from $245 million, or 92 cents per share, in the same quarter of the previous year. This 58% jump in profit was primarily driven by a reduction in loan loss provisions, which decreased to $1.38 billion from $1.90 billion. Despite this, the company faced challenges such as a 12% increase in operating expenses to $1.7 billion, largely due to higher employee compensation, marketing, and professional fees. Additionally, Discover's total revenue saw a slight decline of 1% to $4.19 billion, influenced by a drop in net interest income by 2% to $3.43 billion, although non-interest income rose by 11% to $761 million. The company also noted a slight increase in net charge-offs, with credit card charge-offs rising to 4.11% from 3.42% a year earlier.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/finance/discover-financial-fourth-quarter-profit-jumps-lower-loan-loss-provisions-2025-01-22/ ]