Discover Financial quarterly profit jumps on higher interest income

Discover Financial Services (DFS.N), opens new tab on Wednesday reported a 70% rise in second-quarter profit, as a high-rate environment helped the U.S. credit issuer earn more in interest income.

The company’s shares rose 4.7% to $148 in after-hours trading.

Credit card-focused lenders have outperformed the broader industry this year, benefiting from gains in interest income. Companies like Discover get shielded from market volatility in mortgages as customers do pay higher amount of interest amount on their credit cards.