Discover Financial profit falls 33 pct on higher loan reserves

Wed Jan 21, 2015 4:29pm EST
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Jan 21 (Reuters) - Credit card issuer Discover Financial Services Inc reported a 33 percent drop in quarterly profit as it set aside more money to cover bad loans.

The company's net income allocated to common shareholders fell to $392 million, or 87 cents per share, in the fourth quarter ended Dec. 31, from $588 million, or $1.23 per share, a year earlier.

Revenue, net of interest expense, fell 4.3 percent to $2.04 billion.

Discover increased its provision for loan losses by 29 percent to $457 million. (Reporting By Sudarshan Varadhan in Bengaluru; Editing by Simon Jennings)