Discover Financial Services (DFS) Reports First Quarter Results; To Repay Funds Received Under TARP

Discover Financial Services (NYSE: DFS) said on Tuesday that it has received approval from regulators to redeem $1.2 billion worth of preferred stock, which was issued under the TARP. The company will also issue $350 million in subordinated debt before it repays TARP money.

Discover also reported its first-quarter results on Tuesday. The company reported a loss of $103.5 million, or $0.22 per share in its first-quarter, compared with a $120.4 million, or $0.25 per share profit it reported last year. Discover saw a 5% growth in credit-card sales in the quarter. Net charge-offs in the quarter were 8.51%.

Discover Financial Services shares closed 0.66% higher at $15.30 on Tuesday. Shares were down by 1.50% to $15.07 in after-hours trading at 5.43 p.m. in New York.