RIVERWOODS, Ill.--(BUSINESS WIRE)--Mar. 20, 2014--
In conjunction with the Federal Reserve’s release of the Dodd-Frank Act
stress test (DFAST) results, Discover Financial Services (NYSE: DFS)
today announced the following proposed capital actions it included as
part of the capital plan the company submitted to the Federal Reserve
under the 2014 Comprehensive Capital Analysis and Review (CCAR). The
proposed capital actions include an increase in the company’s next
quarterly dividend from $0.20 to $0.24 per share of common stock and
share repurchases of up to $1.6 billion during the four quarters ending
March 31, 2015.
The proposed capital actions in Discover’s capital plan are subject to
the receipt of a non-objection from the Federal Reserve on March 26,
2014. In addition, dividends are subject to approval of our board
of directors and the timing and amount of share repurchases will be
subject to our capital plan, market conditions and other factors,
including legal and regulatory restrictions and required approvals.
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 home
loans, private student loans, personal loans, home equity 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.
This press release contains forward-looking statements. You are
cautioned not to place undue reliance on forward-looking statements,
which speak only as of the date on which they are made, which reflect
management’s estimates, projections, expectations or beliefs at that
time, and which are subject to significant risks and uncertainties that
may cause actual results to differ materially. The amount and timing of
any future dividends and share repurchases are subject to the discretion
of the company’s board of directors and will depend upon the company’s
results of operations, financial condition, cash requirements, future
prospects, market conditions, capital requirements, applicable law and
regulations (including federal securities laws and federal banking
regulations) and other factors, and may be subject to regulatory
approval or conditions. Additional factors impacting dividends and share
repurchases can be found in "Business - Supervision and Regulation",
“Risk Factors” 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 December 31. 2013, which is available at
the SEC's internet site (www.sec.gov).
Source: Discover Financial Services
Discover Financial Services
Investors:
Bill Franklin,
224-405-1902
williamfranklin@discover.com
or
Media:
Jon
Drummond, 224-405-1888
jondrummond@discover.com