Discover Financial Services reported card
sales volumes of $24 billion in the third quarter, up 5 percent,
its fourth consecutive quarter of year-on-year growth.
Net income generated for these three months
was reported at $261 million, a 55% decrease from the same period
last year. However, the third quarter of 2009 was boosted $287
million by the Visa/MasterCard antitrust litigation settlement.
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Discover reported an improvement in credit
performance as net charge-offs came down to $102 million from the
second quarter and the net charge-off rate stands at 7.18%
Loans that are delinquent for 30 days or more
came down by $180 million during the third quarter and this led to
a $187 million release of loan loss reserves.
“The ongoing improvement in the outlook for
credit performance of our card members has enabled us to accelerate
investments for long-term profitable growth, said David Nelms,
chairman and chief executive officer of Discover.
On September 17th 2010 Discover
announced that it has reached an agreement to acquire The Student
Loan Corporation for $600 or 30$ per share.
