Discover Financial's Profit Plunges 62% Amid Stock Tumble and Rising Delinquency
Discover Financial Services reported a 62% decrease in fourth-quarter profit, attributing the decline to compliance and risk-management issues that led to the resignation of its CEO. The company's shares fell as it grappled with increased operating expenses and a projected $500 million cost to address compliance issues in the coming year. Discover also announced plans to sell its student-loan business and named a new CEO as it anticipates minimal loan growth and a slight decrease in net interest margin for 2024.