RIVERWOODS, Ill.– Discover Financial Services reported a 19% drop in fourth quarter net income yesterday, as credit card charge-offs continued to rise.
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Net income for the fourth quarter was $352.1 million, down from $432.3 million a year-ago. This year’s fourth quarter results included a $285 million gain from the settlement of an antitrust lawsuit with Visa Inc. and MasterCard Inc.
The percentage of loans the company expects not to be repaid rose to 8.43% from 5.48%. The rate of loans 30 days or more past due edged up to 5.31% to 4.56%.
For the full fiscal year, Discover, fueled by the Visa and MasterCard settlement, earned $1.24 billion, compared with $927.8 million, in the previous year.
