Finance
Discover Slumps as Profit Plunges 62% Amid Compliance Costs Pain
- Operating expenses climbed 18%, more than analysts expected
- Risk and compliance matters are seen adding to costs this year
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Discover Financial Services posted a 62% drop in fourth-quarter profit as the company continued to grapple with the fallout from compliance and risk-management lapses that led to the resignation of its chief executive officer last year. The company’s shares tumbled.
Net income for the three months through December totaled $388 million, or $1.54 a share, the credit-card lender said in a statement after the close of trading Wednesday. That missed the $2.52 average estimate of analysts in a Bloomberg survey.