Discover Financial Services reports mixed Q1 results as earnings fall short

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Discover Financial Services reports mixed Q1 results as earnings fall short

earnings of $1.10 per share on revenue of $4.21 billion. Analysts polled by Investing.com anticipated EPS of $2.95 on revenue of $4.07B.The net charge-off rate, a measure of loan portfolio performance, rose 220 basis points to 4.92% versus the prior year period, driven"by continued seasoning of recent vintages with higher delinquency trends," the company said. A higher net charge-off rate typically signals that a lender is experiencing a higher level of loan losses.

The company set aside more cash for bad loans, or increased its provisions for credit losses to $1.50B from $1.10B a year earlier. The quarterly results come as the company looks to wrap up its $35B merger with Capital One later this year or early next year.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events.

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