Declares Regular Quarterly Dividend of $0.10 Per Share
Company Receives Non-Objection from the Federal Reserve as to its
Capital Plan Including Proposed Capital Actions through March 31, 2013
RIVERWOODS, Ill.--(BUSINESS WIRE)--Mar. 13, 2012--
Discover Financial Services (NYSE:DFS) today announced that its board of
directors has approved a new share repurchase program, authorizing the
company to purchase up to $2 billion of its common stock. The program
expires on March 22, 2014, and may be terminated at any time. The share
repurchase program replaces the prior $1 billion program that had $575
million of remaining authorization.
The company’s board also declared a cash dividend of $0.10 per share of
common stock, payable on April 19, 2012, to stockholders of record at
the close of business on April 5, 2012.
“We are pleased to announce the increase in our authorized share
repurchase program and the continuation of our dividend to common
shareholders, which increased by 67 percent last quarter,” said David
Nelms, chairman and chief executive officer of Discover. “These actions
reflect the strength of our capital position and its resiliency across a
range of potential economic scenarios, including the supervisory stress
scenario prescribed by the Federal Reserve Board’s 2012 Capital Plan
Review. We believe our capital plan leaves us well positioned for
continued growth and responsible returns of capital to shareholders
while maintaining significant opportunistic flexibility.”
The company expects to make share repurchases from time to time based on
market conditions and other factors, subject to legal or regulatory
restrictions.
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
operates the Discover card, America's cash rewards pioneer, and offers
personal and student loans, online savings accounts, certificates of
deposit and money market accounts through its Discover Bank subsidiary.
Its payment businesses consist of 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 http://www.discoverfinancial.com.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements are based upon the current beliefs and expectations of the
company's management and are subject to significant risks and
uncertainties. The declaration and payment of future dividends, as well
as the amount thereof, are subject to the discretion of our board of
directors. The amount and size of any future dividends and share
repurchases will depend upon the company’s results of operations,
financial condition, capital levels, cash requirements, future prospects
and other factors. In addition, banking laws and regulations and the
company’s banking regulators may limit the company’s ability to pay
dividends and make share repurchases. For example, the company’s ability
to make capital distributions, including paying dividends or
repurchasing shares, is subject to the Federal Reserve’s annual review
and non-objection of the company’s capital plan. In certain
circumstances, the company may not be able to make a capital
distribution, such as a dividend or share repurchase, unless the Federal
Reserve has approved such distribution. Further, current or future
regulatory initiatives may require the company to hold more capital in
the future. There can be no assurance that we will declare and pay any
dividends or repurchase any shares of our common stock in the future.
The forward-looking statements speak only as of the date of this press
release, and there is no undertaking to update or revise them as more
information becomes available. Additional factors impacting dividends
and share repurchases can be found in "Business - Supervision and
Regulation" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in the company's annual report on
Form 10-K for the year ended November 30, 2011, which is available at
the SEC's internet site (www.sec.gov).
Source: Discover Financial Services
Discover Financial Services
Investor
Contact:
Craig Streem
Investor Relations
224-405-3575
craigstreem@discover.com
or
Media
Contact:
Jon Drummond
Media Relations
224-405-1888
jondrummond@discover.com