|
Discover ended the quarter with $56.3 billion in loans, up 9 percent from a year earlier, but down 1.8 percent from the fourth quarter. The share of credit card balances that were at least 30 days past due was 2.22, down 137 basis points from a year earlier and 17 basis points from the fourth quarter. The rate at which Discover wrote off credit card balances as unpaid declined to 3.07 percent in the quarter, down 289 basis points from the prior-year quarter and down 17 points from the fourth quarter. The economic shakeout of the last few years has left credit cards in the hands of more affluent consumers who are better able to pay their bills in full each month, while those with lower credit scores and presumably less ability to pay are now less likely to use credit. Tighter underwriting standards also have pushed loss rates lower. Discover set aside a $152 million provision for loan losses, down 64 percent from a year earlier. As a result of the improved payment behavior, Discover released $226 million from its reserves set aside to cover bad loans. Shares ended regular trading down 22 cents at $31.64. The stock slipped another 36 cents to $31.28 in extended trading after the company released its earnings results.
[Associated
Press;
Copyright 2012 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries
Community |
Perspectives
|
Law & Courts |
Leisure Time
|
Spiritual Life |
Health & Fitness |
Teen Scene
Calendar
|
Letters to the Editor