Discover Financial Services (NYSE:DFS) stock was down on Wednesday despite a positive earnings report for the fourth quarter of 2016.
Discover Financial Services earnings report for the fourth quarter of 2016 included earnings per share of $1.40. This is an increase over the company’s earnings per share of $1.14 from the same time last year. It also beat out Wall Street’s earnings per share estimate for the quarter by two pennies.
Revenue reported by Discover Financial Services in the fourth quarter of the year was $2.36 billion. DFS reported revenue of $2.21 billion during the fourth quarter of 2015. Analysts were expecting the company to report revenue of $2.34 billion.
Net income reported by Discover Financial Services was $563 million for the fourth quarter of 2016. The company’s net income from the same time last year was $500 million.
During the fourth quarter of 2016, Discover Financial Services saw total loans grow by 7% to $77.3 billion. Credit cards loans grew by 6% to $61.5 billion during this time. Personal loans were up 18% and private student loans were up 2%.
Discover Financial Services also saw card sales volume increase by 3% in the fourth quarter when compared to the same time in the year prior. This has card sales volume increasing to $32.49 billion from $31.67 billion in the fourth quarter of 2015.
“We delivered robust revenue growth in the fourth quarter with a solid operating efficiency ratio,” David Nelms, Chairman and CEO of Discover Financial Services, said in a statement. “While the seasoning of loans from the past several years of growth continued to drive provisions, overall credit performance remained healthy.”
DFS stock was down 1% as of Wednesday afternoon.