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EARNINGS SUMMARY
(unaudited, in millions, except per share statistics)
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
Jun 30, 2021
Jun 30, 2022
Jun 30, 2021
EARNINGS SUMMARY
Interest Income $2,915 $2,736 $2,742 $2,674 $2,589 $326 13% $5,651 $5,235 $416 8% Interest Expense 305 257 259 269 290 15 5% 562 606 (44) (7%)
Net Interest Income 2,610 2,479 2,483 2,405 2,299 311 14% 5,089 4,629 460 10%
Discount/Interchange Revenue 1,133 955 1,042 988 937 196 21% 2,088 1,703 385 23% Rewards Cost 743 635 697 689 598 145 24% 1,378 1,123 255 23% Discount and Interchange Revenue, net 390 320 345 299 339 51 15% 710 580 130 22% Protection Products Revenue 42 44 36 43 43 (1) (2%) 86 86 - -% Loan Fee Income 142 140 131 121 105 37 35% 282 212 70 33% Transaction Processing Revenue 61 57 60 58 58 3 5% 118 109 9 8% Unrealized Gains/(Losses) on Equity Investments (169) (188) (139) (167) 729 (898) (123%) (357) 729 (1,086) (149%) Realized Gains/(Losses) on Equity Investments 127 26 1 - - 127 NM 153 - 153 NM Other Income 21 24 19 18 6 15 NM 45 29 16 55%
Total Non-Interest Income 614 423 453 372 1,280 (666) (52%) 1,037 1,745 (708) (41%)
Revenue Net of Interest Expense 3,224 2,902 2,936 2,777 3,579 (355) (10%) 6,126 6,374 (248) (4%)
Provision for Credit Losses 549 154 263 185 135 414 NM 703 (230) 933 NM
Employee Compensation and Benefits 515 500 499 483 498 17 3% 1,015 1,004 11 1% Marketing and Business Development 254 192 271 210 175 79 45% 446 329 117 36% Information Processing & Communications 121 125 125 121 145 (24) (17%) 246 254 (8) (3%) Professional Fees 189 177 230 198 187 2 1% 366 369 (3) (1%) Premises and Equipment 24 24 23 23 22 2 9% 48 46 2 4% Other Expense 120 112 164 155 195 (75) (38%) 232 301 (69) (23%)
Total Operating Expense 1,223 1,130 1,312 1,190 1,222 1 -% 2,353 2,303 50 2%
Income/ (Loss) Before Income Taxes 1,452 1,618 1,361 1,402 2,222 (770) (35%) 3,070 4,301 (1,231) (29%)
Tax Expense 341 376 294 311 524 (183) (35%) 717 1,010 (293) (29%) Net Income/ (Loss) $1,111 $1,242 $1,067 $1,091 $1,698 ($587) (35%) $2,353 $3,291 ($938) (29%)
Net Income/ (Loss) Allocated to Common Stockholders (^) $1,105 $1,205 $1,062 $1,055 $1,688 ($583) (35%) $2,309 $3,234 ($925) (29%)
Effective Tax Rate 23.5% 23.3% 21.6% 22.2% 23.6% 23.4% 23.5%
Net Interest Margin 10.94% 10.85% 10.81% 10.80% 10.68% 26 bps 10.89% 10.72% 17 bps Operating Efficiency 37.9% 38.9% 44.7% 42.9% 34.1% 380 bps 38.4% 36.1% 230 bps ROE 32% 37% 32% 33% 54% 35% 55%
ROCE 35% 39% 35% 35% 59% 37% 59% Capital Returned to Common Stockholders $742 $1,067 $895 $940 $649 $93 14% $1,809 $881 $928 105% Payout Ratio 67% 89% 84% 89% 38% 78% 27%
Ending Common Shares Outstanding 275 281 288 295 301 (26) (9%) 275 301 (26) (9%)
Weighted Average Common Shares Outstanding 279 285 291 298 304 (25) (8%) 282 305 (23) (8%)
Weighted Average Common Shares Outstanding (fully diluted) 279 285 292 298 304 (25) (8%) 282 305 (23) (8%)
PER SHARE STATISTICS Basic EPS $3.96 $4.23 $3.64 $3.54 $5.56 ($1.60) (29%) $8.19 $10.60 ($2.41) (23%) Diluted EPS $3.96 $4.22 $3.64 $3.54 $5.55 ($1.59) (29%) $8.18 $10.59 ($2.41) (23%) Common Dividends Declared Per Share $0.60 $0.50 $0.50 $0.50 $0.44 $0.16 36% $1.10 $0.88 $0.22 25% Common Stock Price (period end) $94.58 $110.19 $115.56 $122.85 $118.29 ($23.71) (20%) $94.58 $118.29 ($23.71) (20%) Book Value per share $50.00 $47.81 $46.50 $45.00 $43.72 $6.28 14% $50.00 $43.72 $6.28 14%
Note: See Glossary of Financial Terms for definitions of financial terms
Quarter Ended Six Months Ended June 30, 2022 vs. June 30, 2021 2022 vs. 2021
BALANCE SHEET STATISTICS
(unaudited, in millions)
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
Jun 30, 2021
BALANCE SHEET SUMMARY
Assets
Cash and Investment Securities $17,007 $15,620 $18,236 $20,762 $25,209 ($8,202) (33%)
Total Loan Receivables 99,301 93,471 93,684 89,542 87,674 11,627 13%
Allowance for Credit Losses (6,757) (6,647) (6,822) (6,861) (7,026) 269 4%
Net Loan Receivables 92,544 86,824 86,862 82,681 80,648 11,896 15%
Premises and Equipment, net 984 984 983 987 986 (2) -%
Goodwill and Intangible Assets, net 255 255 255 256 256 (1) -%
Other Assets 3,810 3,729 3,906 3,858 3,886 (76) (2%)
Total Assets $114,600 $107,412 $110,242 $108,544 $110,985 $3,615 3%
Liabilities & Stockholders' Equity
Certificates of Deposits 1 13,543 13,518 14,391 14,931 15,732 (2,189) (14%) Savings, Money Market, and Other Deposits 1, 2^ 49,655 50,185 47,548 47,035 46,823 2,832 6% Total Direct to Consumer Deposits 1, 2^ $63,198 $63,703 $61,939 $61,966 $62,555 $643 1% Brokered Deposits and Other Deposits 13,214 8,779 10,454 10,596 11,921 1,293 11%
Deposits 76,412 72,482 72,393 72,562 74,476 1,936 3%
Securitized Borrowings 3 9,099 7,715 9,539 9,064 9,145 (46) (1%) Other Borrowings 3 10,886 9,417 10,688 9,452 10,205 681 7%
Borrowings 19,985 17,132 20,227 18,516 19,350 635 3%
Accrued Expenses and Other Liabilities 4,439 4,365 4,214 4,203 3,988 451 11%
Total Liabilities 100,836 93,979 96,834 95,281 97,814 3,022 3%
Total Equity 13,764 13,433 13,408 13,263 13,171 593 5%
Total Liabilities and Stockholders' Equity $114,600 $107,412 $110,242 $108,544 $110,985 $3,615 3%
LIQUIDITY
Liquidity Portfolio $16,204 $14,910 $14,959 $19,946 $23,201 ($6,997) (30%)
Private Asset-backed Securitizations 3,500 3,750 3,500 4,000 4,000 (500) (13%)
Federal Home Loan Bank Borrowing Capacity 12 1,505 150 1,341 1,209 (1,197) (99%)
Federal Reserve Discount Window 4 36,463 34,393 34,254 32,719 32,328 4,135 13%
Undrawn Credit Facilities 4 39,975 39,648 37,904 38,060 37,537 2,438 6%
Total Liquidity $56,179 $54,558 $52,863 $58,006 $60,738 ($4,559) (8%)
Note: See Glossary of Financial Terms for definitions of financial terms
Quarter Ended June 30, 2022 vs. June 30, 2021
(^1) Includes Affinity relationships
(^2) Savings, Money Market, and Other Deposits and reflects both interest-bearing and non-interest bearing direct to consumer deposits
(^3) Includes short-term and long-term borrowings
(^4) Excludes investments pledged to the Federal Reserve, which is included within the liquidity portfolio
AVERAGE BALANCE SHEET
(unaudited, in millions)
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
Jun 30, 2021
AVERAGE BALANCES
Assets
Cash and Investment Securities $14,409 $15,028 $17,309 $20,623 $26,784 ($12,375) (46%)
Restricted Cash 40 774 1,164 571 897 (857) (96%)
Credit Card Loans 75,917 73,042 71,865 69,416 67,420 8,497 13% Private Student Loans 10,164 10,381 10,094 9,932 9,993 171 2% Personal Loans 6,981 6,909 6,923 6,900 6,884 97 1% Other Loans 2,674 2,359 2,213 2,108 1,999 675 34%
Total Loans 95,736 92,691 91,095 88,356 86,296 9,440 11%
Total Interest Earning Assets 110,185 108,493 109,568 109,550 113,977 (3,792) (3%)
Allowance for Credit Losses (6,644) (6,818) (6,847) (7,020) (7,342) 698 10%
Other Assets 5,874 6,248 6,379 6,430 5,971 (97) (2%)
Total Assets $109,415 $107,923 $109,100 $108,960 $112,606 ($3,191) (3%)
Liabilities & Stockholders' Equity
Non-Interest-bearing Direct to Consumer Deposits 1 1,136 1,090 1,016 959 977 159 16%
Certificates of Deposits 1 13,391 14,035 14,606 15,373 16,109 (2,718) (17%) Savings, Money Market, and Other Deposits 1 48,504 47,426 46,213 45,907 46,020 2,484 5% Interest-bearing Direct to Consumer Deposits 1 $61,895 $61,461 $60,819 $61,280 $62,129 ($234) -% Brokered Deposits and Other Deposits 10,031 9,157 9,834 10,691 11,915 (1,884) (16%)
Total Interest-bearing Deposits 71,926 70,618 70,653 71,971 74,044 (2,118) (3%)
Securitized Borrowings 2 8,262 7,739 9,119 8,292 10,305 (2,043) (20%) Other Borrowings 2 9,325 10,099 9,721 9,556 10,211 (886) (9%)
Total Interest-bearing Liabilities 89,513 88,456 89,493 89,819 94,560 (5,047) (5%)
Other Liabilities & Stockholders' Equity 18,766 18,377 18,591 18,182 17,069 1,697 10%
Total Liabilities and Stockholders' Equity $109,415 $107,923 $109,100 $108,960 $112,606 ($3,191) (3%)
AVERAGE YIELD
Assets
Cash and Investment Securities 1.46% 1.09% 1.01% 0.95% 0.78% 68 bps
Restricted Cash 0.41% 0.02% 0.03% 0.03% 0.02% 39 bps
Credit Card Loans 12.81% 12.59% 12.50% 12.53% 12.52% 29 bps Private Student Loans 7.74% 7.41% 7.37% 7.36% 7.41% 33 bps Personal Loans 11.84% 12.09% 12.36% 12.61% 12.76% (92) bps Other Loans 5.47% 5.60% 5.39% 5.41% 5.59% (12) bps
Total Loans 12.00% 11.80% 11.75% 11.79% 11.79% 21 bps
Total Interest Earning Assets 10.61% 10.23% 9.93% 9.68% 9.11% 150 bps
AVERAGE RATES
Liabilities and Stockholders' Equity
Certificates of Deposits 1 1.04% 1.02% 1.07% 1.19% 1.32% (28) bps
Savings, Money Market, and Other Deposits 1 0.68% 0.50% 0.42% 0.42% 0.42% 26 bps
Interest-bearing Direct to Consumer Deposits 1 0.75% 0.62% 0.58% 0.61% 0.65% 10 bps Brokered Deposits and Other Deposits 2.28% 2.03% 2.16% 2.28% 2.35% (7) bps
Total Interest-bearing Deposits 0.97% 0.80% 0.80% 0.86% 0.92% 5 bps
Securitized Borrowings 2 1.87% 1.29% 1.09% 1.10% 1.01% 86 bps Other Borrowings 2 3.97% 3.75% 3.75% 3.78% 3.66% 31 bps
Total Interest-bearing Liabilities 1.36% 1.18% 1.15% 1.19% 1.23% 13 bps
Net Interest Margin 10.94% 10.85% 10.81% 10.80% 10.68% 26 bps
Net Yield on Interest Earning Assets 9.50% 9.27% 8.99% 8.71% 8.09% 141 bps
Quarter Ended June 30, 2022 vs. June 30, 2021
(^1) Includes Affinity relationships
(^2) Includes short-term and long-term borrowings
Note: See Glossary of Financial Terms for definitions of financial terms
LOAN STATISTICS
(unaudited, in millions)
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
Jun 30, 2021
Jun 30, 2022
Jun 30, 2021
TOTAL LOAN RECEIVABLES
Ending Loans 1 $99,301 $93,471 $93,684 $89,542 $87,674 $11,627 13% $99,301 $87,674 $11,627 13%
Average Loans 1 $95,736 $92,691 $91,095 $88,356 $86,296 $9,440 11% $94,221 $87,096 $7,125 8%
Interest Yield 12.00% 11.80% 11.75% 11.79% 11.79% 21 bps 11.90% 11.87% 3 bps
Gross Principal Charge-off Rate 2.76% 2.64% 2.36% 2.50% 3.20% (44) bps 2.70% 3.32% (62) bps
Net Principal Charge-off Rate 1.80% 1.61% 1.37% 1.46% 2.12% (32) bps 1.71% 2.30% (59) bps
Delinquency Rate (30 or more days) 1.63% 1.64% 1.55% 1.40% 1.34% 29 bps 1.63% 1.34% 29 bps
Delinquency Rate (90 or more days) 0.70% 0.72% 0.66% 0.58% 0.63% 7 bps 0.70% 0.63% 7 bps
Gross Principal Charge-off Dollars $659 $603 $543 $556 $688 ($29) (4%) $1,262 $1,435 ($173) (12%)
Net Principal Charge-off Dollars $429 $368 $313 $325 $456 ($27) (6%) $797 $993 ($196) (20%)
Net Interest and Fee Charge-off Dollars $92 $87 $70 $72 $101 ($9) (9%) $179 $219 ($40) (18%)
Loans Delinquent 30 or more days $1,621 $1,537 $1,451 $1,258 $1,172 $449 38% $1,621 $1,172 $449 38%
Loans Delinquent 90 or more days $694 $678 $618 $522 $550 $144 26% $694 $550 $144 26%
Allowance for Credit Loss (period end) $6,757 $6,647 $6,822 $6,861 $7,026 ($269) (4%) $6,757 $7,026 ($269) (4%)
Reserve Change Build/ (Release) 2 $110 ($175) ($39) ($165) ($321) $431 ($65) ($1,200) $1,
Reserve Rate 6.80% 7.11% 7.28% 7.66% 8.01% (121) bps 6.80% 8.01% (121) bps
CREDIT CARD LOANS
Ending Loans $79,237 $73,783 $74,369 $70,320 $68,886 $10,351 15% $79,237 $68,886 $10,351 15%
Average Loans $75,917 $73,042 $71,865 $69,416 $67,420 $8,497 13% $74,487 $68,068 $6,419 9%
Interest Yield 12.81% 12.59% 12.50% 12.53% 12.52% 29 bps 12.70% 12.62% 8 bps
Gross Principal Charge-off Rate 3.10% 3.00% 2.63% 2.83% 3.69% (59) bps 3.05% 3.80% (75) bps
Net Principal Charge-off Rate 2.01% 1.84% 1.50% 1.65% 2.45% (44) bps 1.93% 2.63% (70) bps
Delinquency Rate (30 or more days) 1.76% 1.77% 1.66% 1.48% 1.43% 33 bps 1.76% 1.43% 33 bps
Delinquency Rate (90 or more days) 0.80% 0.83% 0.76% 0.66% 0.73% 7 bps 0.80% 0.73% 7 bps
Gross Principal Charge-off Dollars $587 $541 $477 $495 $620 ($33) (5%) $1,128 $1,283 ($155) (12%)
Net Principal Charge-off Dollars $381 $331 $272 $289 $412 ($31) (8%) $712 $886 ($174) (20%)
Loans Delinquent 30 or more days $1,392 $1,305 $1,232 $1,040 $983 $409 42% $1,392 $983 $409 42%
Loans Delinquent 90 or more days $633 $613 $562 $467 $504 $129 26% $633 $504 $129 26%
Allowance for Credit Loss (period end) $5,307 $5,120 $5,273 $5,298 $5,409 ($102) (2%) $5,307 $5,409 ($102) (2%)
Reserve Change Build/ (Release) 2 $187 ($153) ($25) ($111) ($231) $418 $34 ($1,082) $1,
Reserve Rate 6.70% 6.94% 7.09% 7.54% 7.85% (115) bps 6.70% 7.85% (115) bps
Total Discover Card Volume $57,384 $49,379 $53,983 $50,389 $48,049 $9,335 19% $106,763 $88,383 $18,380 21%
Discover Card Sales Volume $53,860 $46,329 $51,308 $47,613 $45,460 $8,400 18% $100,189 $83,204 $16,985 20%
Rewards Rate 1.37% 1.36% 1.35% 1.44% 1.31% 6 bps 1.37% 1.34% 3 bps
Note: See Glossary of Financial Terms for definitions of financial terms
Quarter Ended Six Months Ended Jun 30, 2022 vs. Jun 30, 2021 2022 vs. 2021
(^1) Total Loans includes Home Equity and other loans
(^2) Excludes any build/release of the liability for expected credit losses on unfunded commitments as the offset is recorded in accrued expenses and other liabilities in the Company's condensed consolidated statements of financial condition
SEGMENT RESULTS AND VOLUME STATISTICS
(unaudited, in millions)
Jun 30, 2022
Mar 31, 2022
Dec 31, 2021
Sep 30, 2021
Jun 30, 2021
Jun 30, 2022
Jun 30, 2021
DIGITAL BANKING
Interest Income $2,915 $2,736 $2,742 $2,674 $2,589 $326 13% $5,651 $5,235 $416 8% Interest Expense 305 257 259 269 290 15 5% 562 606 (44) (7%)
Net Interest Income 2,610 2,479 2,483 2,405 2,299 311 14% 5,089 4,629 460 10%
Non-Interest Income 557 486 497 447 458 99 22% 1,043 837 206 25%
Revenue Net of Interest Expense 3,167 2,965 2,980 2,852 2,757 410 15% 6,132 5,466 666 12%
Provision for Credit Losses 549 154 263 185 135 414 NM 703 (230) 933 NM
Total Operating Expense 1,186 1,092 1,259 1,151 1,092 94 9% 2,278 2,139 139 6%
Income/ (Loss) Before Income Taxes $1,432 $1,719 $1,458 $1,516 $1,530 ($98) (6%) $3,151 $3,557 ($406) (11%)
Net Interest Margin 10.94% 10.85% 10.81% 10.80% 10.68% 26 bps 10.89% 10.72% 17 bps
Pretax Return on Loan Receivables 5.99% 7.52% 6.35% 6.81% 7.11% (112) bps 6.74% 8.24% (150) bps
Allowance for Credit Loss (period end) $6,757 $6,647 $6,822 $6,861 $7,026 ($269) (4%) $6,757 $7,026 ($269) (4%)
Reserve Change Build/ (Release) $110 ($175) ($39) ($165) ($321) $431 ($65) ($1,200) $1,
PAYMENT SERVICES
Interest Income $- $- $- $- $- $- NM $- $- $- NM Interest Expense - - - - - - NM - - - NM
Net Interest Income - - - - - - NM - - - NM
Non-Interest Income 57 (63) (44) (75) 822 (765) (93%) (6) 908 (914) (101%)
Revenue Net of Interest Expense 57 (63) (44) (75) 822 (765) (93%) (6) 908 (914) (101%)
Provision for Credit Losses - - - - - - NM - - - NM
Total Operating Expense 37 38 53 39 130 (93) (72%) 75 164 (89) (54%)
Income/ (Loss) Before Income Taxes $20 ($101) ($97) ($114) $692 ($672) (97%) ($81) $744 ($825) (111%)
TRANSACTIONS PROCESSED ON NETWORKS
Discover Network 916 831 914 868 799 117 15% 1,747 1,477 270 18%
PULSE Network 1,524 1,399 1,508 1,415 1,399 125 9% 2,923 2,709 214 8%
Total 2,440 2,230 2,422 2,283 2,198 242 11% 4,670 4,186 484 12%
NETWORK VOLUME
PULSE Network $62,992 $59,836 $64,787 $59,872 $62,855 $137 -% $122,828 $123,254 ($426) -%
Network Partners 11,532 10,683 11,233 10,377 9,468 2,064 22% 22,215 19,097 3,118 16%
Diners Club International 1 8,381 7,176 7,367 6,547 6,126 2,255 37% 15,557 12,023 3,534 29%
Total Payment Services 82,905 77,695 83,387 76,796 78,449 4,456 6% 160,600 154,374 6,226 4%
Discover Network - Proprietary 55,838 48,129 53,197 49,360 47,201 8,637 18% 103,967 86,403 17,564 20%
Total $138,743 $125,824 $136,584 $126,156 $125,650 $13,093 10% $264,567 $240,777 $23,790 10%
Note: See Glossary of Financial Terms for definitions of financial terms
Quarter Ended Six Months Ended June 30, 2022 vs. June 30, 2021 2022 vs. 2021
(^1) Volume is derived from data provided by licencees for Diners Club branded cards issued outside of North America and is subject to subsequent revision or amendment
- Total Risk Based Capital Ratio^ represents total capital divided by risk-weighted assets
- Tier 1 Capital Ratio^ represents tier 1 capital divided by risk-weighted assets
- Tier 1 Leverage Ratio^ represents tier 1 capital divided by average total assets
- Common Equity Tier 1 Capital Ratio^ represents common equity tier 1 capital divided by risk weighted assets
Credit Related Terms
Net Principal Charge-off Rate represents net principal charge-off dollars (annualized) divided by average loans for the reporting period (total or respective product loans, as appropriate)
Earnings and Shareholder Return Terms
Volume Terms
Delinquency Rate (30 or more days) represents loans delinquent thirty days or more divided by ending loans (total or respective product loans, as appropriate)
DISCOVER FINANCIAL SERVICES - GLOSSARY OF FINANCIAL TERMS
Balance Sheet & Regulatory Capital Terms
Liquidity Portfolio represents cash and cash equivalents (excluding cash-in-process) and other investments
Regulatory Capital Ratios are preliminary
Tangible Assets represents total assets less goodwill and intangibles
Tangible Common Equity ("TCE") , a non-GAAP financial measure, represents total common equity less goodwill and intangibles. The Company believes TCE is a meaningful measure to investors of the net asset value of the Company. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of GAAP to Non-GAAP Data
Tangible Common Equity/Net Loans , a non-GAAP measure, represents TCE divided by total loans less the allowance for credit losses (period end)
Tangible Common Equity per Share , a non-GAAP measure, represents TCE divided by ending common shares outstanding
Tangible Common Equity/Tangible Assets , a non-GAAP measure, represents TCE divided by total assets less goodwill and intangibles
Undrawn Credit Facilities represents asset-backed conduit funding facilities and Federal Reserve discount window (excluding investments pledged to the Federal Reserve, which are included within the liquidity investment portfolio)
Pretax Return on Loan Receivables represents income before income taxes (annualized) divided by total average loans for the period
Delinquency Rate (90 or more days) represents loans delinquent ninety days or more divided by ending loans (total or respective product loans, as appropriate)
Gross Principal Charge-off Rate represents gross principal charge-off dollars (annualized) divided by average loans for the reporting period (total or respective product loans, as appropriate)
Reserve Rate represents the allowance for credit losses divided by total loans (total or respective product loans, as appropriate)
Book Value per share represents total equity divided by ending common shares outstanding
Capital Returned to Common Stockholders represents common stock dividends declared and treasury share repurchases, excluding common stock issued under employee benefit plans and stock based compensation
Earnings Per Share represents net income allocated to common stockholders divided by the weighted average common shares outstanding
Interest Yield represents interest income on loan receivables (annualized) divided by average loans for the reporting period (total or respective product loans, as appropriate)
Net Income Allocated to Common Stockholders represents net income less preferred stock dividends and income allocated to participating securities
Net Interest Margin represents net interest income (annualized) divided by average total loans for the period
Net Yield on Interest Earning Assets represents net interest income (annualized) divided by average total interest earning assets for the period
Operating Efficiency represents total operating expense divided by revenue net of interest expense
Discover Network Proprietary Volume represents gross Discover Card sales volume on the Discover Network
Payout Ratio represents capital returned to common stockholders divided by net income allocated to common stockholders
Return on Common Equity represents net income available for common stockholders (annualized) divided by average total common equity for the reporting period
Return on Equity represents net income (annualized) divided by average total equity for the reporting period
Rewards Rate represents Credit Card rewards cost divided by Discover Card sales volume
Discover Card Sales Volume represents Discover card activity related to sales net of returns
Discover Card Volume represents Discover card activity related to sales net of returns, balance transfers, cash advances and other activity
