Sept 27 Credit card company Discover Financial
Services' third-quarter profit fell marginally as it
increased legal expenses and set aside more money to cover bad
Profit fell to $627 million, or $1.21 per share, compared
with $649 million, or $1.18 per share, a year earlier.
Provision for loan losses rose 26 percent to $126 million.
Discover's large loan portfolio is spurring the increase in
provisions even as its bad debts have fallen to historical lows.
Only 1.79 percent of its loans were delinquent at August
end, down marginally from 1.83 percent at the end of July.
Earlier this month, Discover said its banking unit would pay
about $200 million to cardholders who bought certain
credit-protection products over the phone, as part of an
enforcement action by the Consumer Financial Protection Bureau.