Discover Financial Services has reported a net income of $720m for the third quarter of 2018.

These results highlight a 20% increase compared to $602m in the corresponding year ago period.

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The card company’s credit card loans grew 9% to $69.3bn during the quarter. Furthermore, its card sales volume increased to $35.8bn from $32.1bn a year ago.

For the quarter ended 30 September 2018, the company’s total card volume was $39.4bn.

The firm reported 13.06% card yield, a rise of 23 basis points from the prior year. The increase has been attributed to prime rate growth, partly offset by portfolio mix change and higher interest charge-offs.

According to Discover Financial Q3 results, the firm’s payment services division recorded a pre-tax income of $44m, an increase of $8m compared to last year.

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Payment Services transaction dollar volume grew 14% year-on-year to $58.7bn, while Diners Club volume rose 5% over the last year. Discover said the Diners Club growth was due to continued strength of new franchise relationships.

Discover CEO and president Roger Hochschild said: “Consistent execution against our strategic priorities enabled us to deliver strong loan and revenue growth once again this quarter.

“By leveraging the strength of the Discover business model, in combination with our disciplined approach to credit, we continued to generate profitable growth and exceptional returns.”