Discover earnings slip as it builds reserves for potential loan losses

Discover Financial Services saw third-quarter profits fall 7 percent as the Riverwoods-based financial services company set aside more money for potentially bad debts.

It earned $593 million, or $1.20 a share, in the latest period, compared with $637 million, or $1.24 a share, a year earlier. That missed the $1.21 average estimate of 22 analysts surveyed by Bloomberg.

Results were released after the close of the stock market.

Discover set aside $333 million for potential loan losses in the quarter, compared with only $136 million a year earlier. Such provisions come right off the bottom line.

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