Increased borrowing and spending helps send Discover's 3Q profit up nearly 9 percent

Industries Associated Press

Discover Financial Services says its third-quarter net income increased nearly 9 percent to beat market expectations.

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The credit card issuer and lender's gains were made on increased credit card spending and overall lending.

Discover said Tuesday that its net income after preferred dividends rose to $630 million, or $1.37 per share. That compares with $579 million, or $1.20 per share, a year earlier. Revenue net of interest expense rose to $2.19 billion from $2.06 billion.

Analysts polled by FactSet expected earnings of $1.34 per share on revenue of $2.2 billion.

Shares of the Riverwoods, Illinois-based company ended regular trading up $1.68 to $64.38 and added 13 cents in extended trading following the report.