FILE – This Monday, Sept. 24, 2012, file photo shows a Discover logo in the window at the entrance of a shop in Cambridge, Mass. Discover Financial reported quarterly financial results on Tuesday, July 22, 2014. (AP Photo/Steven Senne, File)
LOS ANGELES (AP) — Discover Financial Services says its second-quarter net income grew 7 percent as credit card spending and overall loans increased versus a year earlier.
The lender said Tuesday that its profit after paying preferred dividends rose to $630 million, or $1.35 per share, for the three months ended June 30. That compares with net income of $588 million, or $1.20 per share, a year earlier.
Revenue net of interest expense rose 6 percent to $2.17 billion from $2.04 billion.
Analysts polled by FactSet expected earnings of $1.30 per share on $2.16 billion in revenue.
Credit card loans and sales volume both increased 6 percent from a year earlier. Total loans jumped 7 percent.
Riverwoods, Illinois-based Discover, best known for its namesake credit card, also operates payment services and direct banking businesses.
