Discover leaned heavily on rewards to drive new card acquisitions and sales growth in the fourth quarter, but suffered a double whammy of rising reward costs and higher charge-offs, causing it to miss analyst earnings expectations.
Delinquencies, which are on the rise across financial services, clouded an otherwise solid quarter for Discover Financial Services.
The Pennsylvania company said it expects the digital bank to become profitable by the end of this year.
An improved net interest margin helped offset a slight decrease in fee income at the Wisconsin company.
With SBA lending at a standstill, many small businesses can't access the capital they need to create and retain jobs, Stephen Steinour says.
The Dallas company boosted its loan-loss provision in the fourth quarter to cover deteriorating leveraged loans, causing it to miss profit estimates.
The surge in new lending at the Pasadena, Calif., company offset rising deposit costs and sluggish fee-income growth.
The New York company will add $504 million of asset-based and equipment-finance loans as part of the acquisition.
The Boston company reported a quarterly profit despite mortgage headwinds and lost SBA revenue tied to the partial government shutdown.
The Florida bank sold $344 million of taxi-medallion and other loans in the fourth quarter, saying it was positioning itself for the future.
