* 4th-quarter net income rises to $588 mln from $530 mln
* Earnings per share $1.23 vs analysts' estimate $1.18
* Total loans up 5 pct, credit card loans up 4 pct
* Shares up 2 pct after the bell
Jan 23 Credit card issuer Discover Financial
Services reported a better-than-expected 11 percent rise
in quarterly profit as more consumers used cards to make
The company's stock rose almost 2 percent in trading after
American Express Co, which reported strong quarterly
results earlier this month, and Discover have benefited from
increased consumer spending.
Spending was helped in the 2013 holiday season by higher
U.S. retail sales, which rose 3.8 percent, according to data
released by the National Retail Federation last week.
Discover's total loans rose 5 percent, while credit card
loans increased 4 percent in the in the fourth quarter ended
Card sales volume grew 3 percent to $29.53 billion.
Net income allocated to common stockholders rose to $588
million, or $1.23 per share, from $530 million, or $1.06 per
share, a year earlier.
Revenue net of interest expense rose 6 percent to $2.13
Analysts on average expected earnings of $1.18 on revenue of
$2.10 billion, according to Thomson Reuters I/B/E/S.
Net interest income rose about 10 percent to $1.57 billion.
Delinquency rate for credit card loans over 30 days fell 7
basis points to 1.72 percent, while net charge-off fell 22 basis
points to 2.09 percent.
Shares of Discover, which has a market capitalization of
about $25 billion, closed at $52.40 on the New York Stock
Exchange on Thursday.