Discover Financial Services reported this morning pre-tax profits of $202 million for 3Q/07, a 16% decline over the year ago quarter. However, managed loans rose 4% year-on-year to $51.9 billion. Credit card sales volume also rose 4% to a record $26.8 billion. The managed credit card net charge-off rate declined to 3.95%, 28 basis points lower than the second quarter. But, the managed credit card 30+ day delinquency rate was 3.30%, up 18 basis points from last quarter’s record low level. The firm also reported that transaction volume across the Discover and PULSE Networks rose 17% over last year. For its U.S. cards, pretax income was $387 million, unchanged from 3Q/06 and driven by an increase in interest income related to higher average receivables and an increase in interest yield, partially offset by higher interest expense resulting from increased funding costs and increased borrowings due in part to Discover’s spin-off from Morgan Stanley; a decrease in other income due, in part, to lower new securitization activity and an unfavorable revaluation of the interest-only strip receivable; and higher marketing and business development expenses, as well as spin-off related costs of $5 million in the third quarter, partially offset by lower other expenses. For complete details on Discover’s third quarter performance, visit CardData ([www.carddata.com]).