(Reuters) -Capital One Financial ( COF ) reported a rise in second-quarter adjusted profit on Tuesday, as the consumer lender was helped by a boost in interest income on its credit card debt and higher fee income. 

Shares of the company, which have gained nearly 22% in 2025, rose 2.5% after the bell. 

Consumer spending displayed underlying resilience in the April to June quarter, as many consumers curtailed discretionary spending amid inflationary pressures fueled by uncertainties over U.S. President Trump's trade policies, while maintaining steady outlays on essential goods and services.

However, companies such as Capital One are shielded from economic volatility and ensuing industry weakness because of their credit card business. Interest rates on credit card debt are significantly higher than those on mortgages and other kinds of loans.

Capital One became the biggest U.S. credit card issuer by balances after its acquisition of Discover Financial was completed midway through the second quarter, following more than a year of regulatory to-and-fro.

The McLean, Virginia-based company's net interest income - the difference between what it makes on loans and pays out on deposits - rose 32.5% to $10 billion in the quarter.

Capital One's quarterly non-interest income, which primarily consists of interchange income, net of reward expenses, service charges and other customer-related fees, rose nearly 27% to $2.50 billion. 

However, as consumers pull back on discretionary spending due to high borrowing costs, companies have resorted to building a bigger buffer to help shield themselves from potential loan defaults. 

The company's loan loss provisions stood at $11.43 billion in the second quarter, compared to $3.91 billion a year earlier. Net charge-offs, or debts that are unlikely to be recovered, jumped 16% to $3.06 billion in the period, the company said.

Capital One's adjusted net income available to common stockholders was $2.77 billion, or $5.48 per share, in the three months ended June 30, from $1.21 billion, or $3.14 per share, a year earlier.