WASHINGTON (dpa-AFX) - Discover Financial Services (DFS) reported second-quarter net income of $616 million or $1.47 per share compared to $599 million or $1.33 per share for the second quarter of 2015. The company noted that its net income included a non-recurring tax benefit of $44 million which contributed $0.11 to earnings per share. On average, 23 analysts polled by Thomson Reuters expected the company to report profit per share of $1.42 for the quarter. Analysts' estimates typically exclude special items.
Total loans ended the quarter at $71.9 billion, up 4% compared to the prior year. Credit card loans ended the quarter at $57.2 billion, up 4% from the prior year.
Net interest income increased 7%, from the prior year, driven by loan growth and higher net interest margin. Other income decreased 15% from the prior year. Revenue Net of Interest Expense was $2.22 billion compared to $2.17 billion, a year ago. Analysts expected revenue of $2.23 billion for the quarter.
David Nelms, chairman and CEO of Discover, stated: 'During the second quarter, we achieved loan growth within our target range and delivered strong profitability. We also announced plans to increase our dividend and share repurchases, which we expect will result in one of the highest total yields among CCAR banks over the next four quarters.'
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