Discover Financial Services has seen "incredibly strong" overall consumer spending despite inflation concerns, CFO John Greene highlighted at a conference June 15.

Along with strong portfolio performance, credit metrics continue to be better than anticipated coming into 2022, Greene said.

Delinquency rates and sales figures have also remained strong, Greene said. Sales figures are averaging around 18% so far in the second quarter.

The current level of charge-offs continues to indicate a slow pace of normalization. Discovery Financial expects charge-offs to be at the lower end of its earlier projection of 2.2% to 2.4% for the whole year.

The credit quality remains strong driven by a robust job market. Greene referred to "onshoring," or bringing jobs back to the U.S., while defense spending is also ramping up and will likely create more jobs. Despite record inflation and the Federal Reserve taking steps to keep it at bay, Greene sees a favorable environment for the remainder of the year. Greene believes that the Fed's rate hikes and quantitative tightening are unlikely to be correlated to losses for Discover.

The company is targeting a prime revolver customer segment as its primary driver, the CFO said. "That means there is plenty of daylight between making their payments and having kind of payment shock as a result of interest rate increases."