American card issuer Discover Financial Services has posted a net income of $575m or $1.35 per diluted share for the first quarter of 2016, a dip of 1.87% versus $586m or $1.28 per diluted share a year ago.
The firm’s credit card loans grew 4% to $55.6b for the quarter ended 31 March 2016, while the card sales volume increased 4% from the last year.
The payment services unit of Discover Financial reported pre-tax income of $32m, an increase of $5m from the prior year.
Payment Services transaction dollar volume was $45bn, a decline of 10% from the previous year, while PULSE transaction dollar volume dipped 15% year-over-year due to the loss of volume from a large debit issuer.
Discover chairman and CEO David Nelms said: "We made progress on our priorities this quarter, most notably accelerating loan growth into our target range. We continue to focus on generating strong returns while prudently managing credit and effectively deploying capital."