Expenses were up $33 million, or 4%, from the prior year primarily due to higher information processing expense, increased headcount and higher other expense, partially offset by lower professional fees.
Payment Services pretax income was $26 million in the quarter, down $6 million from the prior year. Revenue decreased $2 million from the prior year primarily due to lower transaction processing revenue for PULSE.
Payment Services dollar volume was $49.8 billion for the fourth quarter of 2013, down 1% from the prior year. PULSE transaction dollar volume was flat year-over-year.Dividends The Board of Directors of the company declared a quarterly cash dividend on its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B, in the amount of $16.25 per share. The dividend equals $0.40625 per depositary share, each representing 1/40th interest in a share of the Series B Preferred Stock. The dividend will be payable on March 3, 2014, to the holders of record at the close of business on February 14, 2014. The Board of Directors also declared a quarterly cash dividend of $0.20 per share of common stock payable on February 20, 2014, to holders of record at the close of business on February 6, 2014. Share Repurchases During the fourth quarter of 2013, the company repurchased approximately 7 million shares of common stock for $345 million. Shares of common stock outstanding declined by 1% from the prior quarter. Conference Call and Webcast Information The company will host a conference call to discuss its fourth quarter results on Thursday, January 23, 2014, at 4:00 p.m. Central time. Interested parties can listen to the conference call via a live audio webcast at http://investorrelations.discoverfinancial.com. About Discover Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover card, America's cash rewards pioneer, and offers home loans, private student loans, personal loans, home equity loans, checking and savings accounts, certificates of deposit and money market accounts through its direct banking business. It operates the Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in more than 185 countries and territories. For more information, visit www.discover.com/company. A financial summary follows. Financial, statistical, and business related information, as well as information regarding business and segment trends, is included in the financial supplement filed as Exhibit 99.2 to the company's Current Report on Form 8-K filed today with the Securities and Exchange Commission (“SEC”). Both the earnings release and the financial supplement are available online at the SEC's website ( http://www.sec.gov) and the company's website ( http://investorrelations.discoverfinancial.com). This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, which speak to our expected business and financial performance, among other matters, contain words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” and similar expressions. Such statements are based upon the current beliefs and expectations of the company's management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. These forward-looking statements speak only as of the date of this press release, and there is no undertaking to update or revise them as more information becomes available.