More card use, increased transaction value and fewer defaults caused profits for Discover Financial Services to rocket to $593 million in the three-month period ending on May 31. That was up from just $185 million in the same quarter last year.
Discover profits rose largely as a result of far fewer defaults suffered by the company. In all, the number of charged off accounts slipped to just 5.01 percent of all balances – worth about $577 million. That’s down from the previous year’s totals of 8.56 percent and more than $1 billion in losses.
In addition, Discover saw the value of transactions it processed rise 18 percent to $71.62 billion in the quarter. The total number of those purchases also rose 25 percent.
All of the nation’s top six credit card lenders have enjoyed increased profits in recent quarters thanks to consumers making more conscientious efforts to pay their bills on time.