Discover Financial Services Announces $2.2 Billion Share Repurchase Program and Increases Quarterly Common Stock Dividend from $0.24 to $0.28 Per Share

Company Declares Quarterly Dividend for Preferred and Common Stock

RIVERWOODS, Ill.--()--Discover Financial Services (NYSE: DFS) announced today that its Board of Directors has approved a new $2.2 billion share repurchase program and increased the quarterly common stock dividend from $0.24 to $0.28 per share, in line with previously announced capital actions. The new share repurchase program expires on July 31, 2016, and may be terminated at any time. This is a five quarter share repurchase program and replaces the prior two-year $3.2 billion program. The company expects to make share repurchases from time to time subject to the company’s capital plan, market conditions and other factors, including legal and regulatory restrictions and required approvals.

The company’s Board of Directors declared a quarterly cash dividend on its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B, in the amount of $16.25 per share. The dividend equals $0.40625 per depositary share, each representing 1/40th interest in a share of the Series B Preferred Stock. The dividend will be payable on June 1, 2015, to the holders of record at the close of business on May 15, 2015.

The Board of Directors also declared a quarterly cash dividend of $0.28 per share of common stock payable on May 21, 2015, to holders of record at the close of business on May 7, 2015.

About Discover

Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover card, America's cash rewards pioneer, and offers private student loans, personal loans, home loans, checking and savings accounts, certificates of deposit and money market accounts through its direct banking business. It operates the Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in more than 185 countries and territories. For more information, visit www.discover.com/company.

Contacts

Discover Financial Services
Investor Contact:
Bill Franklin
Investor Relations
224-405-1902
williamfranklin@discover.com
or
Media Contact:
Jon Drummond
Public Relations
224-405-1888
jondrummond@discover.com

Contacts

Discover Financial Services
Investor Contact:
Bill Franklin
Investor Relations
224-405-1902
williamfranklin@discover.com
or
Media Contact:
Jon Drummond
Public Relations
224-405-1888
jondrummond@discover.com