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The news comes with the U.S. stock market closed Monday for President’s Day.
In January, Discover announced that net income in its fourth quarter dropped 62% and shares are down 2% year-to-date. The company’s provision for credit losses rose by $1.0 billion compared to the previous year, reaching $1.9 billion. This increase was fueled by a $305 million higher reserve build in the current quarter and a $717 million uptick in net charge-offs.
Merger talks between the two companies are ongoing and there is no guarantee that a deal will be consummated, the report added.
Neither Capital One nor Discover immediately responded to Bloomberg’s requests for comment.
