Revenue net of interest expense increased $67 million, up 3% from the prior year due to loan growth and lower funding costs.Net interest margin was 9.65%, up 26 basis points from the prior year. The increase in net interest margin from the prior year reflects decreased funding costs partially offset by lower loan yield. Credit card yield was 12.00%, a decrease of 14 basis points from the prior year. The decline in credit card yield from the prior year reflects an increase in promotional rate balances and a decline in higher rate balances, partially offset by lower interest charge-offs. Interest expense as a percent of total loans decreased 39 basis points from the prior year as the company continued to take advantage of available low rate funding.
Discover Financial Services Reports Third Quarter Net Income Of $593 Million Or $1.20 Per Diluted Share
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