Discover Slumps as Profit Plunges 62% Amid Compliance Costs Pain

Discover Financial Services posted a 62% drop in fourth-quarter profit as the company continued to grapple with the fallout from compliance and risk-management lapses that led to the resignation of its chief executive officer last year. The company’s shares tumbled.

Net income for the three months through December totaled $388 million, or $1.54 a share, the credit-card lender said in a statement after the close of trading Wednesday. That missed the $2.52 average estimate of analysts in a Bloomberg survey.

Shares of Discover slumped 6.9% to $101.19 at 10:12 a.m. in New York, their biggest decline in intraday trading in ...