Finance
Discover Financial Profit Dives 68% as Compliance Costs Bite
- Lender is waiting for approvals to be acquired by Capital One
- Operating expenses rose 67% from year earlier to $2.31 billion
The acquisition of Capital One Financial Corp. is expected to be completed late this year or in early 2025.
Photographer: Angus Mordant/BloombergThis article is for subscribers only.
Discover Financial Services, the lender that agreed to be acquired by Capital One Financial Corp. in the year’s biggest announced deal, posted a sharp drop in first-quarter profit as it worked to address compliance and risk-management deficiencies.
Net income plunged 68% to $308 million, or $1.10 a share, for the three months through March, Riverwoods, Illinois-based Discover said Wednesday in a statement. That missed the $2.96 average estimate of analysts in a Bloomberg survey.