Revenue net of interest expense increased $115 million, up 6% from the prior year due to loan growth and net interest margin expansion.Net interest income increased $141 million, or 10%, from the prior year, benefiting from loan growth, lower interest expense and higher loan yield. Net interest margin was 9.82%, up 42 basis points from the prior year. The increase in net interest margin from the prior year reflects decreased funding costs and higher loan yield. Credit card yield was 12.08%, an increase of 6 basis points from the prior year. The increase in credit card yield from the prior year reflects lower interest charge-offs and a modestly higher portion of customers revolving balances. Interest expense as a percent of total loans decreased 34 basis points from the prior year as the company continued to take advantage of available low rate funding.
Discover Financial Services Reports Fourth Quarter Net Income Of $602 Million Or $1.23 Per Diluted Share
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