Company Receives Non-Objection from Federal Reserve with Respect to
Proposed Capital Actions Through June 30, 2016
RIVERWOODS, Ill.--(BUSINESS WIRE)--Mar. 11, 2015--
Discover Financial Services (NYSE: DFS) today announced that the Board
of Governors of the Federal Reserve System notified Discover that it has
no objections to the capital actions through June 30, 2016 as set forth
in the company’s capital plan. The plan includes an increase in the
company’s next quarterly dividend from $0.24 to $0.28 per share of
common stock and share repurchases of up to $2.2 billion during the five
quarters ending June 30, 2016.
“We are pleased to again announce plans to increase our dividend and to
continue our equity buyback program. The strength of our capital
position and business outlook should allow us to repurchase
approximately $1.7 billion of our shares in 2015,” said David Nelms,
chairman and chief executive officer of Discover.
The board of directors is scheduled to approve the dividend increase and
a new share repurchase program that is consistent with the planned
capital actions at its April meeting. The company’s planned new
repurchase program will replace the existing program.
The timing and exact amount of repurchases will be consistent with the
company’s capital plan and will be based on market conditions and other
factors, subject to legal or regulatory restrictions and approvals.
The results of Discover’s company-run stress test conducted in
accordance with the Dodd-Frank Wall Street Reform and Consumer
Protection Act, including Discover’s estimates of pre-provision net
revenue, other revenue, loan and other losses, net income before taxes
and regulatory capital ratios for both Discover Financial Services and
Discover Bank, as well as additional information on the methodologies
used in conducting the stress test, may be found on the Investor
Relations page of Discover’s corporate website at www.discover.com/company
under Regulatory Disclosures.
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.
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, 2014, 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