Discover remains profitable in 2nd quarter

By Associated Press
June 18, 2009 | Comments (0)

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Discover Financial Services says it managed to remain profitable during its fiscal second quarter, thanks to a payment from a lawsuit settlement.

The credit card lender said Thursday its earnings available to common shareholders slipped to $209.2 million, or 43 cents per share, during the quarter ended May 31. That's down from $234.1 million, or 48 cents per share, a year earlier.

The latest results were bolstered by an estimated $295 million after taxes related to a settlement of an antitrust lawsuit with Visa Inc. and MasterCard Inc.

As with other credit card lenders, Riverwoods, Illinois-based Discover continues to face mounting card losses as more customers fall behind on payments. During the quarter it tripled its loan-loss reserves.

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