RIVERWOODS, Ill. – Discover Financial Services yesterday reported a loss of $104 million for its fiscal first quarter, compared to a $120 million net for the same period last year when the card company booked a $475 million payment from MasterCard Inc. and Visa Inc. to settle an antitrust lawsuit.
Revenues for the first quarter rose 5% to $22 billion.
Results for the first quarter of 2010 included a pre-tax addition to loan loss reserves of $305 million.
Discover said it has received regulatory approval to redeem $1.2 billion of preferred stock it issued to the U.S. Treasury under the TARP Capital Purchase Program. To pay for the redemption, Discover Bank will issue $350 million of tier 2 qualifying capital in the form of subordinated debt. The subordinated debt offering is expected to be completed during the second quarter, subject to market conditions.
