Discover Financial Services

The move figures to generate more low-cost funding for the firm’s consumer lending businesses without sacrificing substantial revenue.

Some of the biggest industry moves in May and early June were not executive promotions, but rather departures.

The large credit card issuers are becoming more selective about who they are extending credit to and how much they are willing to lend, their CEOs said Tuesday.

Mark Graf, who joined the Riverwoods, Ill.-based credit card issuer in 2011, will participate in the search for his successor.

Thirty-day delinquency rates, a harbinger of future write-offs, also increased at all seven of the largest U.S. card issuers in the first quarter.

The company's credit card business has been outpacing industrywide loan growth. In the first quarter, results were also aided by higher loan yields.

Though banks are generating more revenue from interchange and annual fees, those gains have been offset by declines in income from cash advances and late fees.

At banks of all sizes — from the $7.2 billion-asset WSFS Financial to the $373 billion-asset Capital One — marketing budgets ballooned in the fourth quarter.

Discover leaned heavily on rewards to drive new card acquisitions and sales growth in the fourth quarter, but suffered a double whammy of rising reward costs and higher charge-offs, causing it to miss analyst earnings expectations.

Delinquencies, which are on the rise across financial services, clouded an otherwise solid quarter for Discover Financial Services.