From Dow Jones & Company:

Shares of Discover Financial Services fell after hours following the company’s report of fourth-quarter profit that missed expectations. The credit-card giant said it has set aside more money to cover potentially tougher conditions for consumers. The company’s provision for credit losses was at $1.9 billion, up from $1 billion from the same quarter of 2022. Net charge-offs were up and the company’s total net charge-off rate was 4.11% in the fourth quarter. Discover’s net income was $388 million, down from $1.03 billion in the same quarter of 2022. Shares fell 6% after hours. The company reported the results as Wall Street awaits more clarity from the Federal Reserve. In November, Discover said it would explore selling off its student-loan portfolio. Last month, Discover appointed Michael Rhodes as its new chief executive, effective March 6. The company’s previous CEO resigned in August. Discover’s shares are up 6% over the past 12 months, while the S&P 500 is up 20.5% over that period.



Read more: Discover shares drop as company sets aside an extra $1 billion to guard against souring credit