Discover Financial Services announced recently that it made 349.6 million dollars in the fourth quarter of this year, according to a report by Dow Jones Newswires. This is largely the result of consumers to both increase their use of credit cards, and because they were more conscientious in paying their monthly bills.
The figure of $ 349.6 million was still down compared to the same period last year, when Discover said it made 352.5 million dollars, the report said. However, this figure also included a profit of $ 285 million was the result of an antitrust settlement with Visa and MasterCard. That industry experts beat ‘predictions by a wide margin.
The profit increase is that the company saw its process segment of credit card sales by 6 percent increase over the same quarter in 2009, the report said. This marked the fourth consecutive quarter in which the company has experienced growth year-over-year sales volumes. Meanwhile, the company also saw its support drop offs of credit card division to 6.58 percent from 8.43 percent during the same three months last year and 7.18 percent third quarter, the report said. Arrears have also declined significantly.
In recent months, many consumers said they would use their credit cards less frequently, not more, especially during the holiday season. Recent polls indicate that only 16 percent of Americans will use these accounts as the primary means of making a gift purchase in December.