UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 
Form 8-K

 
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): December 17, 2009

 
DISCOVER FINANCIAL SERVICES
(Exact name of registrant as specified in its charter)

 
 
Commission File Number: 001-33378

Delaware	 	36-2517428	
(State or other jurisdiction
of incorporation)	 	(IRS Employer
Identification No.)	

2500 Lake Cook Road, Riverwoods, Illinois 60015
(Address of principal executive offices, including zip code)

(224) 405-0900
(Registrant’s telephone number, including area code)

N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 
 
Item 2.02.                      Results of Operations and Financial Condition.
 
On December 17, 2009, Discover Financial Services (the “Company”) released financial information with respect to the quarter and year ended November 30, 2009. A copy of the press release containing this information is attached hereto as Exhibit 99.1 and incorporated herein by reference. In addition, a copy of the Company's Financial Data Supplement for the quarter and year ended November 30, 2009 is attached hereto as Exhibit 99.2 and incorporated herein by reference.
 
The information contained in this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, is furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly stated by specific reference in such filing.

Item 9.01.                      Financial Statements and Exhibits.
  
(d) Exhibits
 	 	 	
Exhibit No.	 	Description	
 
99.1	 	 
Press Release of the Company dated December 17, 2009 containing financial information for the quarter and year ended November 30, 2009
 	
99.2	 	Financial Data Supplement of the Company for the quarter and year ended November 30, 2009	

 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 	 	DISCOVER FINANCIAL SERVICES	
 	 	 	
Dated: December 17, 2009	 	By:	 	/s/ D. Christopher Greene	
 	 	 	 	Name:  D. Christopher Greene	
 	 	 	 	Title:  Vice President, Assistant General Counsel
and Assistant Secretary	

 
EXHIBIT INDEX

Exhibit No.	 	Description	
 
99.1	 	 
Press Release of the Company dated December 17, 2009 containing financial information for the quarter and year ended November 30, 2009
 	
99.2	 	Financial Data Supplement of the Company for the quarter and year ended November 30, 2009	

Exhibit 99.1

 
 
DISCOVER FINANCIAL SERVICES REPORTS FOURTH QUARTER RESULTS:
NET INCOME OF $371 MILLION AND EARNINGS PER SHARE OF $0.63

Riverwoods, IL, Dec. 17, 2009 - Discover Financial Services (NYSE: DFS) today reported income for the quarter and year ended Nov. 30, 2009 as follows:

 	 	Continuing  Operations	 	Discontinued Operations	 	Net Income	 	
 	 	Earnings	Diluted EPS	 	Earnings	 	Earnings	Diluted EPS	 	
 	 	(millions)	 	 	(millions)	 	(millions)	 	 	
 	4Q09	$371	$0.63	 	-	 	$371	$0.63	 	
 	4Q08	$444	$0.92	 	($12)	 	$432	$0.89	 	
 	 	 	 	 	 	 	 	 	 	
 	2009	$1,294	$2.42	 	-	 	$1,294	$2.42	 	
 	2008	$1,063	$2.20	 	($135)	 	$928	$1.92	 	

Fourth quarter income from continuing operations was $371 million, down 16% from the fourth quarter of 2008.  After-tax income related to the Visa/MasterCard antitrust litigation settlement included in continuing after-tax earnings was approximately $285 million and $535 million in the fourth quarter of 2009 and 2008, respectively.

Full year income from continuing operations was $1.3 billion, up 22% from last year.  Income from continuing operations for full year 2009 and 2008 included $1.2 billion and $535 million (after-tax), respectively, related to the litigation settlement.

Fourth Quarter Highlights

·  	Managed 1 loans remained at approximately $51 billion.  The student loan portfolio grew $513 million in the quarter while credit card loans decreased $670 million.	

·  	The fourth-quarter managed net charge-off rate rose to 8.43% and the over 30 days delinquency rate rose to 5.31%.	

·  	Discover Card sales volume declined 1% from the prior year to $22 billion.	

·  	Third-Party Payments segment volume was $33 billion, a 2% decrease from the prior year.	

1   All references to financial information presented on a managed basis assume that loans that have been securitized were not sold and present financial information regarding these loans in a manner similar to the presentation of financial information regarding loans that have not been sold. Management believes it is useful for investors to consider the credit performance of the entire managed loan portfolio to understand the quality of loan originations and the related credit risks inherent in the owned portfolio and retained interests in securitization.  For more information, and a detailed reconciliation, see the schedule titled “Reconciliation of GAAP to Managed Data” attached to this press release.

·  	Deposit balances originated through direct-to-consumer and affinity relationships were $12.6 billion, an increase of $2.4 billion from the prior quarter.	

·  	Discover Bank issued $700 million of subordinated notes, increasing the company’s total regulatory capital.	

“Discover's results this quarter reflect stronger than expected credit performance and our on-going investments to strengthen the Discover franchise,” said David Nelms, Discover’s chairman and chief executive officer.  “We were very pleased with the stability of our sales volume, our expanded merchant acceptance and the continued growth of our direct-to-consumer banking business.  For the full year we were profitable even excluding the antitrust settlement proceeds, and are closing out 2009 with strong capital levels and a strong foundation that positions us well for future growth.”

Segment Results (Managed Basis):

U.S. Card

Pretax income was $575 million in the fourth quarter of 2009 as compared to $646 million for the fourth quarter of 2008.

Managed loans ended the quarter at $51 billion, essentially flat compared to the prior year, as lower cardmember payments and growth in both student and personal loans were largely offset by lower balance transfer activity and sales volume.  Sales volume declined 1% compared to the prior year, reflecting lower gas prices and a general decline in consumer spending. Balance transfer volume declined 66% from the prior year as the company reduced its marketing of promotional rate balance transfer offers.

Net yield on loan receivables was 9.37%, an increase of 82 basis points from the prior year and a decrease of 53 basis points from the prior quarter.  The net yield increased from the prior year as the rate on credit card balances declined less than the cost of funds, primarily due to higher interest rates on standard balances and a reduction in promotional rate balances.  The net yield decreased from the prior quarter reflecting the impact of a decline in higher rate balances related to the implementation of the CARD Act, an increase in lower rate student loan balances and an increase in the liquidity reserve.

The managed net charge-off rate increased to 8.43% for the fourth quarter of 2009, up 295 basis points and 4 basis points from the prior year and the prior quarter, respectively.  The over 30 days delinquency rate on managed loans was 5.31%, up 75 basis points from the prior year and 21 basis points from the prior quarter. The increase in both the net charge-off rate and delinquency rate was due to higher levels of consumer bankruptcies and unemployment partially offset by a higher mix of student loans.  The managed net charge-off rate for the first quarter of 2010 is expected to be between 8.4% and 8.9%.

Provision for loan losses decreased $117 million, or 11%, from the prior year due to a lower reserve build, partially offset by higher net charge-offs.  The allowance for loan losses increased $383 million from the prior year, but decreased $75 million from the prior quarter.  The increase from the prior year reflects a 199 basis point increase in the reserve rate, partially offset by a $1.6 billion decrease in on-balance sheet loans primarily related to securitization activity.  The decrease from the prior quarter reflects a $1.9 billion decline in the level of on-balance sheet loans in the quarter as a result of securitization activities partially offset by a 25 basis point increase in the reserve rate.

 
Other income includes $472 million and $864 million in litigation settlement proceeds in the fourth quarter of 2009 and 2008, respectively.  Excluding the settlement proceeds, other income increased $82 million from the prior year, primarily due to the revaluation of the interest-only strip receivable.  The fourth quarter 2009 includes a $38 million unfavorable revaluation of the interest-only strip receivable compared to a $116 million unfavorable revaluation in the fourth quarter 2008.
 
Expenses were down $18 million, or 3% from the prior year, reflecting the impact of cost containment initiatives, partially offset by costs associated with the global expansion initiative of $13 million and a $9 million charge related to a facility closure.  The fourth quarter of 2008 included a $39 million benefit due to curtailment of the company’s pension plan.

Third-Party Payments

Pretax income of $24 million in the quarter was up $3 million from the prior year. Revenues were up $6 million reflecting an increase in transactions on the PULSE network, lower incentive payments and higher fee revenues.  Expenses were up $2 million including a higher level of international marketing investments, partially offset by the impact of cost containment initiatives.

Third-Party Payments dollar volume for the fourth quarter of $33 billion was down 2% from the prior year.  However, the number of transactions on the PULSE network increased 5% to 677 million, due to increased transactions from new and existing clients, partially offset by the loss of volume from one large financial institution.

Capital Markets Activity

During the quarter, the company’s wholly-owned subsidiary, Discover Bank, raised approximately $700 million through a subordinated debt issuance, increasing tier 2 regulatory capital.  In addition, the company’s securitization trust issued $1.3 billion of asset-backed securities through the TALF program.

Dividends

The company’s board declared a cash dividend of $0.02 per share of common stock, payable on Jan. 21, 2010, to stockholders of record at the close of business on Dec. 31, 2009.

Adoption of Statement of Financial Accounting Standards No. 166 and 167

The company adopted Statement of Financial Accounting Standards No. 166 and 167 on Dec. 1, 2009, which requires the consolidation of its credit card securitization trusts.  At adoption, the company added approximately $21.1 billion of assets, including a $2.1 billion addition to loan loss reserves, and approximately $22.4 billion of liabilities to its balance sheet.  The net impact of the new accounting is a reduction to stockholders’ equity of $1.3 billion.  The company estimates its pro-forma total and tier 1 regulatory capital ratios after adoption would be 16.0% and 13.3%, respectively.

 
Conference Call and Webcast Information

The company will host a conference call to discuss its fourth quarter results on Thursday, Dec. 17, 2009, at 10 a.m. Central time.  Interested parties can listen to the conference call via a live audio webcast at http://investorrelations.discoverfinancial.com.

About Discover

Discover Financial Services (NYSE: DFS) is a leading credit card issuer and electronic 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 student and personal loans, as well as savings products such as certificates of deposit and money market accounts. Its payments 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 www.discoverfinancial.com.
 
Contacts:
 
Investors:
Craig Streem, 224-405-3575
craigstreem@discover.com
 
Media:
Jon Drummond, 224-405-1888
jondrummond@discover.com

A financial summary follows. Financial, statistical, and business related information, as well as information regarding business and segment trends, is included in the financial supplement filed as Exhibit 99.2 to the company’s Form 8-K filed today with the Securities and Exchange Commission (“SEC”). Both the earnings release and the financial supplement are available online at the SEC’s website ( http://www.sec.gov ) and the company’s website (http://investorrelations.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. Actual results may differ materially from those set forth in the forward-looking statements. These 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.  The following factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements: the actions and initiatives of current and potential competitors; our ability to manage credit risks and securitize our receivables; changes in economic variables, such as the availability of consumer credit, the housing market, energy costs, the number and size of personal bankruptcy filings, the rate of unemployment and the levels of consumer confidence and consumer debt; the level and volatility of equity prices, commodity prices and interest rates, currency values, investments, other market fluctuations and other market indices; the availability and cost of funding and capital; access to U.S. equity, debt and deposit markets; the ability to manage our liquidity risk; the impact of rating agency actions; losses in our investment portfolio; the ability to increase or sustain Discover card usage or attract new cardmembers and introduce new products or services; our ability to attract new merchants and maintain relationships with current merchants; our ability to successfully achieve interoperability among our networks and maintain relationships with network participants; material security breaches of key systems; unforeseen and catastrophic events; our reputation; the potential effects of technological changes; the effect of political, economic and market conditions and geopolitical events; unanticipated developments relating to lawsuits, investigations or similar matters; the impact of current, pending and future legislation, regulation and regulatory and legal actions, including new laws and rules limiting or modifying certain credit card practices, new laws and rules affecting securitizations, and legislation related to government programs to stabilize the financial markets; changes to accounting rules or the interpretations thereof; our ability to attract and retain employees; our ability to protect our intellectual property; the impact of any potential future acquisitions; investor sentiment; resolution of our dispute with Morgan Stanley; and the restrictions on our operations resulting from financing transactions.
 
Additional factors that could cause the company’s results to differ materially from those described in the forward-looking statements can be found under “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 November 30, 2008 and Quarterly Reports on Form 10-Q for the quarters ended February 28, 2009, May 31, 2009, and August 31, 2009, which are filed with the SEC and available at the SEC's internet site (http://www.sec.gov).

 
Discover Financial Services	 	 	 	 	 	 	 	 	 	 	 	
Managed Basis 1	 	 	 	 	 	 	 	 	 	 	 	
(unaudited, dollars in thousands)	 	 	 	 	 	 	 	 	 	 	
 	 	Quarter Ended	 	 	Year Ended	 	
 	 	Nov 30, 2009	 	 	Aug 31, 2009	 	 	Nov 30, 2008	 	 	Nov 30, 2009	 	 	Nov 30, 2008	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings Summary 1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Income 1	 	$	1,585,690	 	 	$	1,664,081	 	 	$	1,682,267	 	 	$	6,461,072	 	 	$	6,545,829	 	
Interest Expense 1	 	 	403,298	 	 	 	392,642	 	 	 	602,450	 	 	 	1,648,420	 	 	 	2,356,919	 	
Net Interest Income 1	 	 	1,182,392	 	 	 	1,271,439	 	 	 	1,079,817	 	 	 	4,812,652	 	 	 	4,188,910	 	
Other Income 1, 2	 	 	984,372	 	 	 	1,116,765	 	 	 	1,287,213	 	 	 	3,917,675	 	 	 	2,953,096	 	
Revenue Net of Interest Expense 1	 	 	2,166,764	 	 	 	2,388,204	 	 	 	2,367,030	 	 	 	8,730,327	 	 	 	7,142,006	 	
Provision for Loan Losses 1	 	 	989,009	 	 	 	924,427	 	 	 	1,105,971	 	 	 	4,358,341	 	 	 	3,068,604	 	
Total Other Expense	 	 	578,507	 	 	 	523,838	 	 	 	594,082	 	 	 	2,222,096	 	 	 	2,415,797	 	
Income Before Income Taxes 2	 	 	599,248	 	 	 	939,939	 	 	 	666,977	 	 	 	2,149,890	 	 	 	1,657,605	 	
Tax Expense	 	 	228,560	 	 	 	362,485	 	 	 	223,336	 	 	 	855,554	 	 	 	594,692	 	
Income From Continuing Operations 2	 	 	370,688	 	 	 	577,454	 	 	 	443,641	 	 	 	1,294,336	 	 	 	1,062,913	 	
Discontinued Operations, Net of Tax 3	 	 	-	 	 	 	-	 	 	 	(11,306	)	 	 	-	 	 	 	(135,163	)	
Net Income 2,3	 	$	370,688	 	 	$	577,454	 	 	$	432,335	 	 	$	1,294,336	 	 	$	927,750	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income Available to Common Stockholders	 	$	352,054	 	 	$	559,387	 	 	$	432,335	 	 	$	1,241,081	 	 	$	927,750	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Pre-tax Income, U.S. Card 2	 	$	575,477	 	 	$	912,800	 	 	$	646,427	 	 	$	2,043,346	 	 	$	1,576,194	 	
Pre-tax Income, Third Party Payments	 	$	23,771	 	 	$	27,139	 	 	$	20,550	 	 	$	106,544	 	 	$	81,411	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Per Share Statistics	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted EPS from Continuing Operations 2, 4	 	$	0.63	 	 	$	1.07	 	 	$	0.92	 	 	$	2.42	 	 	$	2.20	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Statistics 5	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets - Managed 1	 	$	72,978,435	 	 	$	67,794,309	 	 	$	65,620,476	 	 	$	72,978,435	 	 	$	65,620,476	 	
Total Equity	 	$	8,466,755	 	 	$	8,386,202	 	 	$	5,915,823	 	 	$	8,466,755	 	 	$	5,915,823	 	
Total Loans - Managed 1	 	$	50,860,372	 	 	$	50,903,845	 	 	$	51,095,278	 	 	$	50,860,372	 	 	$	51,095,278	 	
Average Total Loans - Managed 1	 	$	50,590,846	 	 	$	50,971,056	 	 	$	50,707,090	 	 	$	51,140,614	 	 	$	49,011,148	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Key Ratios	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Return on Managed Loan Receivables 1	 	 	2.94	%	 	 	4.49	%	 	 	3.52	%	 	 	2.53	%	 	 	2.17	%	
Managed Interest Yield 1	 	 	12.34	%	 	 	12.73	%	 	 	12.65	%	 	 	12.36	%	 	 	12.61	%	
Net Yield on Managed Loan Receivables 1	 	 	9.37	%	 	 	9.90	%	 	 	8.56	%	 	 	9.41	%	 	 	8.55	%	
Managed Net Principal Charge-off Rate 1	 	 	8.43	%	 	 	8.39	%	 	 	5.48	%	 	 	7.77	%	 	 	5.01	%	
Reserve Rate	 	 	7.44	%	 	 	7.19	%	 	 	5.45	%	 	 	7.44	%	 	 	5.45	%	
Reserve Rate (excluding guaranteed student loans) 6	 	 	7.87	%	 	 	7.45	%	 	 	5.48	%	 	 	7.87	%	 	 	5.48	%	
Managed Delinquency Rate (over 30 days) 1	 	 	5.31	%	 	 	5.10	%	 	 	4.56	%	 	 	5.31	%	 	 	4.56	%	
Managed Delinquency Rate (over 90 days) 1	 	 	2.78	%	 	 	2.60	%	 	 	2.17	%	 	 	2.78	%	 	 	2.17	%	

Total Discover Card Volume	 	$	23,335,440	 	 	$	23,955,402	 	 	$	25,318,553	 	 	$	95,592,170	 	 	$	105,734,055	 	
Discover Card Sales Volume	 	$	21,903,694	 	 	$	22,768,927	 	 	$	22,025,264	 	 	$	87,460,552	 	 	$	92,239,779	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Volume	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
PULSE Network	 	$	24,667,926	 	 	$ 	28,051,978	 	 	$ 	25,033,235	 	 	$ 	109,302,121	 	 	$ 	106,012,108	 	
Third-Party Issuers	 	 	1,522,269	 	 	 	1,446,308	 	 	 	1,538,013	 	 	 	5,671,555	 	 	 	6,398,579	 	
Diners Club International 7	 	 	7,172,809	 	 	 	6,465,990	 	 	 	7,457,893	 	 	 	26,172,977	 	 	 	12,685,690	 	
Total Third-Party Payments	 	 	33,363,004	 	 	 	35,964,276	 	 	 	34,029,141	 	 	 	141,146,653	 	 	 	125,096,377	 	
Discover Network - Proprietary 8	 	 	22,712,600	 	 	 	23,579,434	 	 	 	22,875,272	 	 	 	90,688,997	 	 	 	95,688,443	 	
Total	 	$	56,075,604	 	 	$	59,543,710	 	 	$	56,904,413	 	 	$	231,835,650	 	 	$	220,784,820	 	

1.	 	These numbers are on a managed basis. Managed basis assumes that loans that have been securitized were not sold and presents financial information regarding  these loans in a manner similar to the presentation of financial information regarding loans that have not been sold. See Reconciliation of GAAP to Managed Data Schedule.	
 	 	 	
2.	 	The quarters ended November 30, 2008, August 31, 2009 and November 30, 2009 include $864 million pre-tax (estimated $535 million after-tax), $472 million pre-tax  (estimated $287 million after-tax), and $472 million pre-tax (estimated $285 million after-tax) respectively, and the years ended November 30, 2008 and November 30, 2009  include $864 million pre-tax (estimated $535 million after-tax) and $1.9 billion (estimated $1.2 billion after-tax) respectively related to the Visa/Mastercard antitrust litigation settlement.	
 	 	 	
3.	 	The year ended November 30, 2008 includes a loss from discontinued operations, net of tax, of $135 million consisting of a $166 million loss related to the sale of the Goldfish  business partially offset by $31 million of income related to the Goldfish business operations.	
 	 	 	
4.	 	Earnings per share is based on net income available to common stockholders. Net income available to common stockholders equals net income less dividends and accretion  of discount on shares of preferred stock.	
 	 	 	
5.	 	Based on continuing operations except for equity. Equity includes $1.2 billion of preferred stock and $7.3 billion of common equity as of November 30, 2009.	
 	 	 	
6.	 	Reserve Rate (excluding guaranteed student loans), a non-GAAP measure, represents the allowance for loan losses as a percentage of total loans excluding guaranteed  student loans. The Company believes that a reserve rate excluding the government guaranteed portion of student loans is a more meaningful valuation to investors of the  portion of the portfolio that has a risk of loss. For a corresponding reconciliation of loans excluding the guaranteed portion of student loans to a GAAP financial measure,  see Reconciliation of GAAP to Managed Data schedule.	
 	 	 	
7.	 	Volume is derived from data provided by licensees for Diners Club branded cards issued outside of North America and is subject to subsequent revision or amendment.	
 	 	 	
8.	 	Gross proprietary sales volume on the Discover Network.	

 
DISCOVER FINANCIAL SERVICES	
 	
RECONCILIATION OF GAAP TO MANAGED DATA	

The following presents a reconciliation for certain information disclosed above. The data below is presented on both a "managed" loan basis and as reported under generally accepted accounting principles ("owned" loan basis). Managed loan data assumes that the company's securitized loan receivables have not been sold and presents the results of securitized loan receivables in the same manner as the company's owned loans. The company operates its business and analyzes its financial performance on a managed basis. Accordingly, underwriting and servicing standards are comparable for both owned and securitized loans. The company believes that managed loan information is useful to investors because it provides information regarding the quality of loan origination and credit performance of the entire managed portfolio and allows investors to understand the related credit risks inherent in owned loans and retained interests in securitizations. Managed loan data is also relevant because the company services the securitized and owned loans, and the related accounts, in the same manner without regard to ownership of the loans. In addition, investors often request information on a managed basis which provides a more meaningful comparison to industry competitors.	
 	
Reserve rate (excluding guaranteed student loans), a non-GAAP financial measure, represents the allowance for loan losses as a percentage of total loans excluding guaranteed student loans. A reconciliation of total loans, a GAAP financial measure, to loans excluding the guaranteed portion of student loans is shown below. A portion of the Company's student loans are 97% guaranteed by the federal government under the Federal Family Education Loan Program. These guaranteed student loans carry little default risk and therefore, are reserved at a significantly lower rate than the remaining portfolio. Management believes that a reserve rate excluding the government guaranteed portion of student loans is a more meaningful valuation to investors of the portion of the portfolio that has a risk of loss.	
 
Discover Financial Services	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of GAAP to Managed Data	 	 	 	 	 	 	 	 	 	 	 	
(unaudited, dollars in thousands)	 	 	 	 	 	 	 	 	 	
 	 	Quarter Ended	 	 	Year Ended	 	
 	 	Nov 30, 2009	 	 	Aug 31, 2009	 	 	Nov 30, 2008	 	 	Nov 30, 2009	 	 	Nov 30, 2008	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	$	638,086	 	 	$	833,217	 	 	$	736,006	 	 	$	3,145,080	 	 	$	2,692,563	 	
Securitization Adjustments	 	 	947,604	 	 	 	830,864	 	 	 	946,261	 	 	 	3,315,992	 	 	 	3,853,266	 	
Managed Basis	 	$	1,585,690	 	 	$	1,664,081	 	 	$	1,682,267	 	 	$	6,461,072	 	 	$	6,545,829	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	$	314,158	 	 	$	304,401	 	 	$	329,672	 	 	$	1,251,284	 	 	$	1,288,004	 	
Securitization Adjustments	 	 	89,140	 	 	 	88,241	 	 	 	272,778	 	 	 	397,136	 	 	 	1,068,915	 	
Managed Basis	 	$	403,298	 	 	$	392,642	 	 	$	602,450	 	 	$	1,648,420	 	 	$	2,356,919	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	$	323,928	 	 	$	528,816	 	 	$	406,334	 	 	$	1,893,796	 	 	$	1,404,559	 	
Securitization Adjustments	 	 	858,464	 	 	 	742,623	 	 	 	673,483	 	 	 	2,918,856	 	 	 	2,784,351	 	
Managed Basis	 	$	1,182,392	 	 	$	1,271,439	 	 	$	1,079,817	 	 	$	4,812,652	 	 	$	4,188,910	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	$	1,253,559	 	 	$	1,315,960	 	 	$	1,568,901	 	 	$	4,840,595	 	 	$	4,264,458	 	
Securitization Adjustments	 	 	(269,187	)	 	 	(199,195	)	 	 	(281,688	)	 	 	(922,920	)	 	 	(1,311,362	)	
Managed Basis	 	$	984,372	 	 	$	1,116,765	 	 	$	1,287,213	 	 	$	3,917,675	 	 	$	2,953,096	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue Net of Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	$	1,577,487	 	 	$	1,844,776	 	 	$	1,975,235	 	 	$	6,734,391	 	 	$	5,669,017	 	
Securitization Adjustments	 	 	589,277	 	 	 	543,428	 	 	 	391,795	 	 	 	1,995,936	 	 	 	1,472,989	 	
Managed Basis	 	$	2,166,764	 	 	$	2,388,204	 	 	$	2,367,030	 	 	$	8,730,327	 	 	$	7,142,006	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision for Loan Losses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	$	399,732	 	 	$	380,999	 	 	$	714,176	 	 	$	2,362,405	 	 	$	1,595,615	 	
Securitization Adjustments	 	 	589,277	 	 	 	543,428	 	 	 	391,795	 	 	 	1,995,936	 	 	 	1,472,989	 	
Managed Basis	 	$	989,009	 	 	$	924,427	 	 	$	1,105,971	 	 	$	4,358,341	 	 	$	3,068,604	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	$	46,010,146	 	 	$	42,698,290	 	 	$	39,892,382	 	 	$	46,010,146	 	 	$	39,892,382	 	
Securitization Adjustments	 	 	26,968,289	 	 	 	25,096,019	 	 	 	25,728,094	 	 	 	26,968,289	 	 	 	25,728,094	 	
Managed Basis	 	$	72,978,435	 	 	$	67,794,309	 	 	$	65,620,476	 	 	$	72,978,435	 	 	$	65,620,476	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Loans	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	$	23,625,084	 	 	$	25,489,809	 	 	$	25,216,611	 	 	$	23,625,084	 	 	$	25,216,611	 	
Securitization Adjustments	 	 	27,235,288	 	 	 	25,414,036	 	 	 	25,878,667	 	 	 	27,235,288	 	 	 	25,878,667	 	
Managed Basis	 	$	50,860,372	 	 	$	50,903,845	 	 	$	51,095,278	 	 	$	50,860,372	 	 	$	51,095,278	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Loans - GAAP Basis	 	$	23,625,084	 	 	$	25,489,809	 	 	$	25,216,611	 	 	$	23,625,084	 	 	$	25,216,611	 	
Less: Guaranteed portion of student loans	 	 	1,274,453	 	 	 	889,963	 	 	 	152,135	 	 	 	1,274,453	 	 	 	152,135	 	
Total Loans excluding guaranteed portion of student loans	 	$	22,350,631	 	 	$	24,599,846	 	 	$	25,064,476	 	 	$	22,350,631	 	 	$	25,064,476	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Total Loans	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	$	23,835,598	 	 	$	26,380,203	 	 	$	22,945,494	 	 	$	26,552,574	 	 	$	21,348,493	 	
Securitization Adjustments	 	 	26,755,248	 	 	 	24,590,853	 	 	 	27,761,596	 	 	 	24,588,040	 	 	 	27,662,655	 	
Managed Basis	 	$	50,590,846	 	 	$	50,971,056	 	 	$	50,707,090	 	 	$	51,140,614	 	 	$	49,011,148	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Return on Loan Receivables	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	 	6.24	%	 	 	8.68	%	 	 	7.78	%	 	 	4.87	%	 	 	4.98	%	
Securitization Adjustments	 	 	5.56	% 	 	 	9.32	% 	 	 	6.43	% 	 	 	5.26	% 	 	 	3.84	%	
Managed Basis	 	 	2.94	%	 	 	4.49	%	 	 	3.52	%	 	 	2.53	%	 	 	2.17	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Yield	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	 	10.25	%	 	 	12.10	%	 	 	11.36	%	 	 	11.31	%	 	 	10.89	%	
Securitization Adjustments	 	 	14.21	%	 	 	13.40	%	 	 	13.71	%	 	 	13.49	%	 	 	13.93	%	
Managed Basis	 	 	12.34	%	 	 	12.73	%	 	 	12.65	%	 	 	12.36	%	 	 	12.61	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Yield on Loan Receivables	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	 	5.45	%	 	 	7.95	%	 	 	7.12	%	 	 	7.13	%	 	 	6.58	%	
Securitization Adjustments	 	 	12.87	%	 	 	11.98	%	 	 	9.76	%	 	 	11.87	%	 	 	10.07	%	
Managed Basis	 	 	9.37	%	 	 	9.90	%	 	 	8.56	%	 	 	9.41	%	 	 	8.55	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Principal Charge-off Rate	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	 	7.98	%	 	 	8.05	%	 	 	5.25	%	 	 	7.45	%	 	 	4.59	%	
Securitization Adjustments	 	 	8.83	%	 	 	8.77	%	 	 	5.68	%	 	 	8.12	%	 	 	5.32	%	
Managed Basis	 	 	8.43	%	 	 	8.39	%	 	 	5.48	%	 	 	7.77	%	 	 	5.01	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Delinquency Rate (over 30 days)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	 	4.92	%	 	 	4.86	%	 	 	4.35	%	 	 	4.92	%	 	 	4.35	%	
Securitization Adjustments	 	 	5.65	%	 	 	5.35	%	 	 	4.77	%	 	 	5.65	%	 	 	4.77	%	
Managed Basis	 	 	5.31	%	 	 	5.10	%	 	 	4.56	%	 	 	5.31	%	 	 	4.56	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Delinquency Rate (over 90 days)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	 	2.58	%	 	 	2.46	%	 	 	2.06	%	 	 	2.58	%	 	 	2.06	%	
Securitization Adjustments	 	 	2.95	%	 	 	2.74	%	 	 	2.27	%	 	 	2.95	%	 	 	2.27	%	
Managed Basis	 	 	2.78	%	 	 	2.60	%	 	 	2.17	%	 	 	2.78	%	 	 	2.17	%	

Exhibit 99.2
 
Discover Financial Services	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(unaudited, dollars in thousands, except per	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
share statistics)	 	Quarter Ended	 	 	 	 	 	Year Ended	 	 	 	 	 	 	 	
 	 	Nov 30,
2009	 	 	Aug 31,
2009	 	 	May 31,
2009	 	 	Feb 28,
2009	 	 	Nov 30,
2008	 	 	Nov 30, 2009
vs Nov 30, 2008	 	 	Nov 30,
2009	 	 	Nov 30,
2008	 	 	2009 vs 2008	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings Summary	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	$	638,086	 	 	$	833,217	 	 	$	857,984	 	 	$	815,793	 	 	$	736,006	 	 	$	(97,920	)	 	(13	%)	 	$	3,145,080	 	 	$	2,692,563	 	 	$	452,517	 	 	17	%	
Interest Expense	 	 	314,158	 	 	 	304,401	 	 	 	320,005	 	 	 	312,720	 	 	 	329,672	 	 	 	(15,514	)	 	(5	%)	 	 	1,251,284	 	 	 	1,288,004	 	 	 	(36,720	)	 	(3	%)	
Net Interest Income	 	 	323,928	 	 	 	528,816	 	 	 	537,979	 	 	 	503,073	 	 	 	406,334	 	 	 	(82,406	)	 	(20	%)	 	 	1,893,796	 	 	 	1,404,559	 	 	 	489,237	 	 	35	%	
Other Income   1	 	 	1,253,559	 	 	 	1,315,960	 	 	 	1,081,120	 	 	 	1,189,956	 	 	 	1,568,901	 	 	 	(315,342	)	 	(20	%)	 	 	4,840,595	 	 	 	4,264,458	 	 	 	576,137	 	 	14	%	
Revenue Net of Interest Expense	 	 	1,577,487	 	 	 	1,844,776	 	 	 	1,619,099	 	 	 	1,693,029	 	 	 	1,975,235	 	 	 	(397,748	)	 	(20	%)	 	 	6,734,391	 	 	 	5,669,017	 	 	 	1,065,374	 	 	19	%	
Provision for Loan Losses	 	 	399,732	 	 	 	380,999	 	 	 	643,861	 	 	 	937,813	 	 	 	714,176	 	 	 	(314,444	)	 	(44	%)	 	 	2,362,405	 	 	 	1,595,615	 	 	 	766,790	 	 	48	%	
Employee Compensation and Benefits	 	 	191,516	 	 	 	208,528	 	 	 	208,151	 	 	 	219,488	 	 	 	187,306	 	 	 	4,210	 	 	2	%	 	 	827,683	 	 	 	845,392	 	 	 	(17,709	)	 	(2	%)	
Marketing and Business Development	 	 	113,851	 	 	 	77,814	 	 	 	102,922	 	 	 	111,433	 	 	 	119,382	 	 	 	(5,531	)	 	(5	%)	 	 	406,020	 	 	 	530,901	 	 	 	(124,881	)	 	(24	%)	
Information Processing & Communications	 	 	72,192	 	 	 	67,679	 	 	 	74,441	 	 	 	74,897	 	 	 	81,543	 	 	 	(9,351	)	 	(11	%)	 	 	289,209	 	 	 	315,943	 	 	 	(26,734	)	 	(8	%)	
Professional Fees	 	 	92,910	 	 	 	83,746	 	 	 	74,550	 	 	 	70,123	 	 	 	111,645	 	 	 	(18,735	)	 	(17	%)	 	 	321,329	 	 	 	349,484	 	 	 	(28,155	)	 	(8	%)	
Premises and Equipment	 	 	18,282	 	 	 	18,437	 	 	 	18,223	 	 	 	18,072	 	 	 	20,676	 	 	 	(2,394	)	 	(12	%)	 	 	73,014	 	 	 	80,394	 	 	 	(7,380	)	 	(9	%)	
Other Expense	 	 	89,756	 	 	 	67,634	 	 	 	82,341	 	 	 	65,110	 	 	 	73,530	 	 	 	16,226	 	 	22	%	 	 	304,841	 	 	 	293,683	 	 	 	11,158	 	 	4	%	
Total Other Expense	 	 	578,507	 	 	 	523,838	 	 	 	560,628	 	 	 	559,123	 	 	 	594,082	 	 	 	(15,575	)	 	(3	%)	 	 	2,222,096	 	 	 	2,415,797	 	 	 	(193,701	)	 	(8	%)	
Income Before Income Taxes   1	 	 	599,248	 	 	 	939,939	 	 	 	414,610	 	 	 	196,093	 	 	 	666,977	 	 	 	(67,729	)	 	(10	%)	 	 	2,149,890	 	 	 	1,657,605	 	 	 	492,285	 	 	30	%	
Tax Expense	 	 	228,560	 	 	 	362,485	 	 	 	188,810	 	 	 	75,699	 	 	 	223,336	 	 	 	5,224	 	 	2	%	 	 	855,554	 	 	 	594,692	 	 	 	260,862	 	 	44	%	
Income From Continuing Operations   1	 	 	370,688	 	 	 	577,454	 	 	 	225,800	 	 	 	120,394	 	 	 	443,641	 	 	 	(72,953	)	 	(16	%)	 	 	1,294,336	 	 	 	1,062,913	 	 	 	231,423	 	 	22	%	
Discontinued Operations, Net of Tax   2	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(11,306	)	 	 	11,306	 	 	100	%	 	 	-	 	 	 	(135,163	)	 	 	135,163	 	 	100	%	
Net Income   1, 2	 	$	370,688	 	 	$	577,454	 	 	$	225,800	 	 	$	120,394	 	 	$	432,335	 	 	$	(61,647	)	 	(14	%)	 	$	1,294,336	 	 	$	927,750	 	 	$	366,586	 	 	40	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income Available to Common Stockholders 1, 2 , 3	 	$	352,054	 	 	$	559,387	 	 	$	209,246	 	 	$	120,394	 	 	$	432,335	 	 	$	(80,281	)	 	(19	%)	 	$	1,241,081	 	 	$	927,750	 	 	$	313,331	 	 	34	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effective Tax Rate From Continuing Operations	 	 	38.1	%	 	 	38.6	%	 	 	45.5	%	 	 	38.6	%	 	 	33.5	%	 	 	 	 	 	 	 	 	 	39.8	%	 	 	35.9	%	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Statistics 4	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets	 	$	46,010,146	 	 	$	42,698,290	 	 	$	41,518,288	 	 	$	40,606,518	 	 	$	39,892,382	 	 	$	6,117,764	 	 	15	%	 	$	46,010,146	 	 	$	39,892,382	 	 	$	6,117,764	 	 	15	%	
Tangible Assets	 	$	45,559,089	 	 	$	42,245,313	 	 	$	41,063,390	 	 	$	40,149,699	 	 	$	39,433,642	 	 	$	6,125,447	 	 	16	%	 	$	45,559,089	 	 	$	39,433,642	 	 	$	6,125,447	 	 	16	%	
Total Equity	 	$	8,466,755	 	 	$	8,386,202	 	 	$	7,415,640	 	 	$	5,999,351	 	 	$	5,915,823	 	 	$	2,550,932	 	 	43	%	 	$	8,466,755	 	 	$	5,915,823	 	 	$	2,550,932	 	 	43	%	
Total Common Equity	 	$	7,308,689	 	 	$	7,231,463	 	 	$	6,263,661	 	 	$	5,999,351	 	 	$	5,915,823	 	 	$	1,392,866	 	 	24	%	 	$	7,308,689	 	 	$	5,915,823	 	 	$	1,392,866	 	 	24	%	
Total Common Equity/Total Assets	 	 	15.9	%	 	 	16.9	%	 	 	15.1	%	 	 	14.8	%	 	 	14.8	%	 	 	 	 	 	 	 	 	 	15.9	%	 	 	14.8	%	 	 	 	 	 	 	 	
Total Common Equity/Net Loans - Owned	 	 	33.4	%	 	 	30.6	%	 	 	24.6	%	 	 	22.9	%	 	 	24.8	%	 	 	 	 	 	 	 	 	 	33.4	%	 	 	24.8	%	 	 	 	 	 	 	 	
ROE   1, 2	 	 	17	%	 	 	28	%	 	 	12	%	 	 	8	%	 	 	29	%	 	 	 	 	 	 	 	 	 	17	%	 	 	16	%	 	 	 	 	 	 	 	
ROE from Continuing Operations   1	 	 	17	%	 	 	28	%	 	 	12	%	 	 	8	%	 	 	30	%	 	 	 	 	 	 	 	 	 	17	%	 	 	18	%	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance for Loan Loss (period end)	 	$	1,757,899	 	 	$	1,832,360	 	 	$	1,986,473	 	 	$	1,878,942	 	 	$	1,374,585	 	 	$	383,314	 	 	28	%	 	$	1,757,899	 	 	$	1,374,585	 	 	$	383,314	 	 	28	%	
Change in Loan Loss Reserves	 	$	(74,461	)	 	$	(154,113	)	 	$	107,531	 	 	$	504,357	 	 	$	414,816	 	 	$	(489,277	)	 	(118	%)	 	$	383,314	 	 	$	614,660	 	 	$	(231,346	)	 	(38	%)	
Reserve Rate	 	 	7.44	%	 	 	7.19	%	 	 	7.24	%	 	 	6.70	%	 	 	5.45	%	 	 	199	 	 	bps	 	 	 	7.44	%	 	 	5.45	%	 	 	199	 	 	bps	 	
Interest-only Strip Receivable (period end)	 	$	117,579	 	 	$	162,252	 	 	$	94,670	 	 	$	198,536	 	 	$	300,120	 	 	$	(182,541	)	 	(61	%)	 	$	117,579	 	 	$	300,120	 	 	$	(182,541	)	 	(61	%)	
Net Revaluation of Retained Interests	 	$	(37,771	)	 	$	68,880	 	 	$	(92,954	)	 	$	(98,242	)	 	$	(116,335	)	 	$	78,564	 	 	68	%	 	$	(160,087	)	 	$	(119,324	)	 	$	(40,763	)	 	(34	%)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Per Share Statistics	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic EPS   1, 2, 5	 	$	0.65	 	 	$	1.09	 	 	$	0.43	 	 	$	0.25	 	 	$	0.90	 	 	$	(0.25	)	 	(28	%)	 	$	2.46	 	 	$	1.94	 	 	$	0.52	 	 	27	%	
Basic EPS from Continuing Operations 1, 5	 	$	0.65	 	 	$	1.09	 	 	$	0.43	 	 	$	0.25	 	 	$	0.92	 	 	$	(0.27	)	 	(29	%)	 	$	2.46	 	 	$	2.22	 	 	$	0.24	 	 	11	%	
Diluted EPS   1, 2, 5	 	$	0.63	 	 	$	1.07	 	 	$	0.43	 	 	$	0.25	 	 	$	0.89	 	 	$	(0.26	)	 	(29	%)	 	$	2.42	 	 	$	1.92	 	 	$	0.50	 	 	26	%	
Diluted EPS from Continuing Operations   1, 5	 	$	0.63	 	 	$	1.07	 	 	$	0.43	 	 	$	0.25	 	 	$	0.92	 	 	$	(0.29	)	 	(32	%)	 	$	2.42	 	 	$	2.20	 	 	$	0.22	 	 	10	%	
Common Stock Price (period end)	 	$	15.46	 	 	$	13.75	 	 	$	9.56	 	 	$	5.73	 	 	$	10.23	 	 	$	5.23	 	 	51	%	 	$	15.46	 	 	$	10.23	 	 	$	5.23	 	 	51	%	
Book Value	 	$	15.59	 	 	$	15.45	 	 	$	15.40	 	 	$	12.46	 	 	$	12.32	 	 	$	3.27	 	 	27	%	 	$	15.59	 	 	$	12.32	 	 	$	3.27	 	 	27	%	
Ending Common Shares Outstanding (000's)	 	 	542,922	 	 	 	542,749	 	 	 	481,676	 	 	 	481,459	 	 	 	479,987	 	 	 	62,935	 	 	13	%	 	 	542,922	 	 	 	479,987	 	 	 	62,935	 	 	13	%	
Weighted Average Common Shares Outstanding (000's)	 	 	542,826	 	 	 	513,098	 	 	 	481,636	 	 	 	480,497	 	 	 	479,931	 	 	 	62,895	 	 	13	%	 	 	504,550	 	 	 	479,335	 	 	 	25,215	 	 	5	%	
Weighted Average Common Shares Outstanding (fully diluted) (000's)	 	 	555,066	 	 	 	520,579	 	 	 	484,965	 	 	 	485,043	 	 	 	484,558	 	 	 	70,508	 	 	15	%	 	 	511,803	 	 	 	483,470	 	 	 	28,333	 	 	6	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loan Receivables   4	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Loans - Owned	 	$	23,625,084	 	 	$	25,489,809	 	 	$	27,441,514	 	 	$	28,034,208	 	 	$	25,216,611	 	 	$	(1,591,527	)	 	(6	%)	 	$	23,625,084	 	 	$	25,216,611	 	 	$	(1,591,527	)	 	(6	%)	
Less: Allowance for Loan Loss (period end)	 	 	1,757,899	 	 	 	1,832,360	 	 	 	1,986,473	 	 	 	1,878,942	 	 	 	1,374,585	 	 	 	383,314	 	 	28	%	 	 	1,757,899	 	 	 	1,374,585	 	 	 	383,314	 	 	28	%	
Net Loans - Owned	 	$	21,867,185	 	 	$	23,657,449	 	 	$	25,455,041	 	 	$	26,155,266	 	 	$	23,842,026	 	 	$	(1,974,841	)	 	(8	%)	 	$	21,867,185	 	 	$	23,842,026	 	 	$	(1,974,841	)	 	(8	%)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Total Loans - Owned	 	$	23,835,598	 	 	$	26,380,203	 	 	$	28,257,484	 	 	$	27,733,143	 	 	$	22,945,494	 	 	$	890,104	 	 	4	%	 	$	26,552,574	 	 	$	21,348,493	 	 	$	5,204,081	 	 	24	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Yield	 	 	10.25	%	 	 	12.10	%	 	 	11.54	%	 	 	11.24	%	 	 	11.36	%	 	 	(111	)	 	bps	 	 	 	11.31	%	 	 	10.89	%	 	 	42	 	 	bps	 	
Net Principal Charge-off Rate	 	 	7.98	%	 	 	8.05	%	 	 	7.53	%	 	 	6.34	%	 	 	5.25	%	 	 	273	 	 	bps	 	 	 	7.45	%	 	 	4.59	%	 	 	286	 	 	bps	 	
Delinquency Rate (over 30 days)	 	 	4.92	%	 	 	4.86	%	 	 	4.87	%	 	 	5.04	%	 	 	4.35	%	 	 	57	 	 	bps	 	 	 	4.92	%	 	 	4.35	%	 	 	57	 	 	bps	 	
Delinquency Rate (over 90 days)	 	 	2.58	%	 	 	2.46	%	 	 	2.60	%	 	 	2.57	%	 	 	2.06	%	 	 	52	 	 	bps	 	 	 	2.58	%	 	 	2.06	%	 	 	52	 	 	bps	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Transactions Processed on Networks (000's)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Discover Network	 	 	387,350	 	 	 	390,643	 	 	 	366,315	 	 	 	369,647	 	 	 	377,356	 	 	 	9,994	 	 	3	%	 	 	1,513,955	 	 	 	1,515,368	 	 	 	(1,413	)	 	(0	%)	
PULSE Network	 	 	676,817	 	 	 	753,201	 	 	 	762,175	 	 	 	686,527	 	 	 	644,045	 	 	 	32,772	 	 	5	%	 	 	2,878,720	 	 	 	2,682,312	 	 	 	196,408	 	 	7	%	
Total	 	 	1,064,167	 	 	 	1,143,844	 	 	 	1,128,490	 	 	 	1,056,174	 	 	 	1,021,401	 	 	 	42,766	 	 	4	%	 	 	4,392,675	 	 	 	4,197,680	 	 	 	194,995	 	 	5	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Volume	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
PULSE Network	 	$	24,667,926	 	 	$	28,051,978	 	 	$	29,128,044	 	 	$	27,454,173	 	 	$	25,033,235	 	 	$	(365,309	)	 	(1	%)	 	$	109,302,121	 	 	$	106,012,108	 	 	$	3,290,013	 	 	3	%	
Third-Party Issuers	 	 	1,522,269	 	 	 	1,446,308	 	 	 	1,340,532	 	 	 	1,362,446	 	 	 	1,538,013	 	 	 	(15,744	)	 	(1	%)	 	 	5,671,555	 	 	 	6,398,579	 	 	 	(727,024	)	 	(11	%)	
Diners Club International 6	 	 	7,172,809	 	 	 	6,465,990	 	 	 	6,240,604	 	 	 	6,293,574	 	 	 	7,457,893	 	 	 	(285,566	)	 	(4	%)	 	 	26,172,977	 	 	 	12,685,690	 	 	 	13,486,805	 	 	106	%	
Total Third-Party Payments	 	 	33,363,004	 	 	 	35,964,276	 	 	 	36,709,180	 	 	 	35,110,193	 	 	 	34,029,141	 	 	 	(666,619	)	 	(2	%)	 	 	141,146,653	 	 	 	125,096,377	 	 	 	16,049,794	 	 	13	%	
Discover Network - Proprietary 7	 	 	22,712,600	 	 	 	23,579,434	 	 	 	21,972,596	 	 	 	22,424,367	 	 	 	22,875,272	 	 	 	(162,672	)	 	(1	%)	 	 	90,688,997	 	 	 	95,688,443	 	 	 	(4,999,446	)	 	(5	%)	
Total	 	$	56,075,604	 	 	$	59,543,710	 	 	$	58,681,776	 	 	$	57,534,560	 	 	$	56,904,413	 	 	$	(829,291	)	 	(1	%)	 	$	231,835,650	 	 	$	220,784,820	 	 	$	11,050,348	 	 	5	%	

Discover Financial Services	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Managed Basis 8	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(unaudited, dollars in thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Quarter Ended	 	 	 	 	 	Year Ended	 	 	 	 	 	 	 	
 	 	Nov 30,
2009	 	 	Aug 31,
2009	 	 	May 31,
2009	 	 	Feb 28,
2009	 	 	Nov 30,
2008	 	 	Nov 30, 2009
vs Nov 30, 2008	 	 	Nov 30,
2009	 	 	Nov 30,
2008	 	 	2009 vs 2008	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings Summary	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	$	1,585,690	 	 	$	1,664,081	 	 	$	1,607,452	 	 	$	1,603,849	 	 	$	1,682,267	 	 	$	(96,577	)	 	(6	%)	 	$	6,461,072	 	 	$	6,545,829	 	 	$	(84,757	)	 	(1	%)	
Interest Expense	 	 	403,298	 	 	 	392,642	 	 	 	414,063	 	 	 	438,417	 	 	 	602,450	 	 	 	(199,152	)	 	(33	%)	 	 	1,648,420	 	 	 	2,356,919	 	 	 	(708,499	)	 	(30	%)	
Net Interest Income	 	 	1,182,392	 	 	 	1,271,439	 	 	 	1,193,389	 	 	 	1,165,432	 	 	 	1,079,817	 	 	 	102,575	 	 	9	%	 	 	4,812,652	 	 	 	4,188,910	 	 	 	623,742	 	 	15	%	
Other Income   1	 	 	984,372	 	 	 	1,116,765	 	 	 	893,081	 	 	 	923,457	 	 	 	1,287,213	 	 	 	(302,841	)	 	(24	%)	 	 	3,917,675	 	 	 	2,953,096	 	 	 	964,579	 	 	33	%	
Revenue Net of Interest Expense	 	 	2,166,764	 	 	 	2,388,204	 	 	 	2,086,470	 	 	 	2,088,889	 	 	 	2,367,030	 	 	 	(200,266	)	 	(8	%)	 	 	8,730,327	 	 	 	7,142,006	 	 	 	1,588,321	 	 	22	%	
Provision for Loan Losses	 	 	989,009	 	 	 	924,427	 	 	 	1,111,232	 	 	 	1,333,673	 	 	 	1,105,971	 	 	 	(116,962	)	 	(11	%)	 	 	4,358,341	 	 	 	3,068,604	 	 	 	1,289,737	 	 	42	%	
Employee Compensation and Benefits	 	 	191,516	 	 	 	208,528	 	 	 	208,151	 	 	 	219,488	 	 	 	187,306	 	 	 	4,210	 	 	2	%	 	 	827,683	 	 	 	845,392	 	 	 	(17,709	)	 	(2	%)	
Marketing and Business Development	 	 	113,851	 	 	 	77,814	 	 	 	102,922	 	 	 	111,433	 	 	 	119,382	 	 	 	(5,531	)	 	(5	%)	 	 	406,020	 	 	 	530,901	 	 	 	(124,881	)	 	(24	%)	
Information Processing & Communications	 	 	72,192	 	 	 	67,679	 	 	 	74,441	 	 	 	74,897	 	 	 	81,543	 	 	 	(9,351	)	 	(11	%)	 	 	289,209	 	 	 	315,943	 	 	 	(26,734	)	 	(8	%)	
Professional Fees	 	 	92,910	 	 	 	83,746	 	 	 	74,550	 	 	 	70,123	 	 	 	111,645	 	 	 	(18,735	)	 	(17	%)	 	 	321,329	 	 	 	349,484	 	 	 	(28,155	)	 	(8	%)	
Premises and Equipment	 	 	18,282	 	 	 	18,437	 	 	 	18,223	 	 	 	18,072	 	 	 	20,676	 	 	 	(2,394	)	 	(12	%)	 	 	73,014	 	 	 	80,394	 	 	 	(7,380	)	 	(9	%)	
Other Expense	 	 	89,756	 	 	 	67,634	 	 	 	82,341	 	 	 	65,110	 	 	 	73,530	 	 	 	16,226	 	 	22	%	 	 	304,841	 	 	 	293,683	 	 	 	11,158	 	 	4	%	
Total Other Expense	 	 	578,507	 	 	 	523,838	 	 	 	560,628	 	 	 	559,123	 	 	 	594,082	 	 	 	(15,575	)	 	(3	%)	 	 	2,222,096	 	 	 	2,415,797	 	 	 	(193,701	)	 	(8	%)	
Income Before Income Taxes   1	 	 	599,248	 	 	 	939,939	 	 	 	414,610	 	 	 	196,093	 	 	 	666,977	 	 	 	(67,729	)	 	(10	%)	 	 	2,149,890	 	 	 	1,657,605	 	 	 	492,285	 	 	30	%	
Tax Expense	 	 	228,560	 	 	 	362,485	 	 	 	188,810	 	 	 	75,699	 	 	 	223,336	 	 	 	5,224	 	 	2	%	 	 	855,554	 	 	 	594,692	 	 	 	260,862	 	 	44	%	
Income From Continuing Operations   1	 	 	370,688	 	 	 	577,454	 	 	 	225,800	 	 	 	120,394	 	 	 	443,641	 	 	 	(72,953	)	 	(16	%)	 	 	1,294,336	 	 	 	1,062,913	 	 	 	231,423	 	 	22	%	
Discontinued Operations, Net of Tax   2	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(11,306	)	 	 	11,306	 	 	100	%	 	 	-	 	 	 	(135,163	)	 	 	135,163	 	 	100	%	
Net Income   1, 2	 	$	370,688	 	 	$	577,454	 	 	$	225,800	 	 	$	120,394	 	 	$	432,335	 	 	$	(61,647	)	 	(14	%)	 	$	1,294,336	 	 	$	927,750	 	 	$	366,586	 	 	40	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance Sheet Statistics 4	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets	 	$	72,978,435	 	 	$	67,794,309	 	 	$	64,846,824	 	 	$	63,231,657	 	 	$	65,620,476	 	 	$	7,357,959	 	 	11	%	 	$	72,978,435	 	 	$	65,620,476	 	 	$	7,357,959	 	 	11	%	
Tangible Managed Assets	 	$	72,527,378	 	 	$	67,341,332	 	 	$	64,391,926	 	 	$	62,774,838	 	 	$	65,161,736	 	 	$	7,365,642	 	 	11	%	 	$	72,527,378	 	 	$	65,161,736	 	 	$	7,365,642	 	 	11	%	
Total Equity 9	 	$	8,466,755	 	 	$	8,386,202	 	 	$	7,415,640	 	 	$	5,999,351	 	 	$	5,915,823	 	 	$	2,550,932	 	 	43	%	 	$	8,466,755	 	 	$	5,915,823	 	 	$	2,550,932	 	 	43	%	
Total Common Equity 9	 	$	7,308,689	 	 	$	7,231,463	 	 	$	6,263,661	 	 	$	5,999,351	 	 	$	5,915,823	 	 	$	1,392,866	 	 	24	%	 	$	7,308,689	 	 	$	5,915,823	 	 	$	1,392,866	 	 	24	%	
Tangible Common Equity 10	 	$	6,857,632	 	 	$	6,778,486	 	 	$	5,808,763	 	 	$	5,542,532	 	 	$	5,457,083	 	 	$	1,400,549	 	 	26	%	 	$	6,857,632	 	 	$	5,457,083	 	 	$	1,400,549	 	 	26	%	
Total Common Equity/Tangible Managed Assets 11	 	 	10.1	%	 	 	10.7	%	 	 	9.7	%	 	 	9.6	%	 	 	9.1	%	 	 	 	 	 	 	 	 	 	10.1	%	 	 	9.1	%	 	 	 	 	 	 	 	
Tangible Common Equity/Tangible Managed Assets 10, 12	 	 	9.5	%	 	 	10.1	%	 	 	9.0	%	 	 	8.8	%	 	 	8.4	%	 	 	 	 	 	 	 	 	 	9.5	%	 	 	8.4	%	 	 	 	 	 	 	 	
Tangible Common Equity/Net Loans - Managed 10	 	 	14.0	%	 	 	13.8	%	 	 	11.8	%	 	 	11.3	%	 	 	11.0	%	 	 	 	 	 	 	 	 	 	14.0	%	 	 	11.0	%	 	 	 	 	 	 	 	
Tangible Common Equity per share 10	 	$	12.63	 	 	$	12.49	 	 	$	12.06	 	 	$	11.51	 	 	$	11.37	 	 	$	1.26	 	 	11	%	 	$	12.63	 	 	$	11.37	 	 	$	1.26	 	 	11	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Yield on Managed Loan Receivables	 	 	9.37	%	 	 	9.90	%	 	 	9.26	%	 	 	9.11	%	 	 	8.56	%	 	 	81	 	 	bps	 	 	 	9.41	%	 	 	8.55	%	 	 	86	 	 	bps	 	
Return on Managed Loan Receivables 1	 	 	2.94	%	 	 	4.49	%	 	 	1.75	%	 	 	0.94	%	 	 	3.52	%	 	 	(58	)	 	bps	 	 	 	2.53	%	 	 	2.17	%	 	 	36	 	 	bps	 	
Reserve Rate (excluding guaranteed student loans) 13	 	 	7.87	%	 	 	7.45	%	 	 	7.36	%	 	 	6.78	%	 	 	5.48	%	 	 	238	 	 	bps	 	 	 	7.87	%	 	 	5.48	%	 	 	238	 	 	bps	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loan Receivables 4	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Loans - Managed	 	$	50,860,372	 	 	$	50,903,845	 	 	$	51,032,382	 	 	$	50,888,704	 	 	$	51,095,278	 	 	$	(234,906	)	 	(0	%)	 	$	50,860,372	 	 	$	51,095,278	 	 	$	(234,906	)	 	(0	%)	
Less: Allowance for Loan Loss (period end)	 	 	1,757,899	 	 	 	1,832,360	 	 	 	1,986,473	 	 	 	1,878,942	 	 	 	1,374,585	 	 	 	383,314	 	 	28	%	 	 	1,757,899	 	 	 	1,374,585	 	 	 	383,314	 	 	28	%	
Net Loans - Managed	 	$	49,102,473	 	 	$	49,071,485	 	 	$	49,045,909	 	 	$	49,009,762	 	 	$	49,720,693	 	 	$	(618,220	)	 	(1	%)	 	$	49,102,473	 	 	$	49,720,693	 	 	$	(618,220	)	 	(1	%)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Total Loans - Managed	 	$	50,590,846	 	 	$	50,971,056	 	 	$	51,132,761	 	 	$	51,877,845	 	 	$	50,707,090	 	 	$	(116,244	)	 	(0	%)	 	$	51,140,614	 	 	$	49,011,148	 	 	$	2,129,466	 	 	4	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Managed Interest Yield	 	 	12.34	%	 	 	12.73	%	 	 	12.19	%	 	 	12.17	%	 	 	12.65	%	 	 	(31	)	 	bps	 	 	 	12.36	%	 	 	12.61	%	 	 	(25	)	 	bps	 	
Managed Net Principal Charge-off Rate	 	 	8.43	%	 	 	8.39	%	 	 	7.79	%	 	 	6.48	%	 	 	5.48	%	 	 	295	 	 	bps	 	 	 	7.77	%	 	 	5.01	%	 	 	276	 	 	bps	 	
Managed Delinquency Rate (over 30 days)	 	 	5.31	%	 	 	5.10	%	 	 	5.08	%	 	 	5.25	%	 	 	4.56	%	 	 	75	 	 	bps	 	 	 	5.31	%	 	 	4.56	%	 	 	75	 	 	bps	 	
Managed Delinquency Rate (over 90 days)	 	 	2.78	%	 	 	2.60	%	 	 	2.73	%	 	 	2.69	%	 	 	2.17	%	 	 	61	 	 	bps	 	 	 	2.78	%	 	 	2.17	%	 	 	61	 	 	bps	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Discover Card Volume	 	$	23,335,440	 	 	$	23,955,402	 	 	$	24,336,751	 	 	$	23,964,577	 	 	$	25,318,553	 	 	$	(1,983,113	)	 	(8	%)	 	$	95,592,170	 	 	$	105,734,055	 	 	$	(10,141,885	)	 	(10	%)	
Discover Card Sales Volume	 	$	21,903,694	 	 	$	22,768,927	 	 	$	21,494,174	 	 	$	21,293,757	 	 	$	22,025,264	 	 	$	(121,570	)	 	(1	%)	 	$	87,460,552	 	 	$	92,239,779	 	 	$	(4,779,227	)	 	(5	%)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Segment - Income Before Income Taxes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
U.S. Card 1	 	$	575,477	 	 	$	912,800	 	 	$	387,902	 	 	$	167,167	 	 	$	646,427	 	 	$	(70,950	)	 	(11	%)	 	$	2,043,346	 	 	$	1,576,194	 	 	$	467,152	 	 	30	%	
Third-Party Payments	 	 	23,771	 	 	 	27,139	 	 	 	26,708	 	 	 	28,926	 	 	 	20,550	 	 	 	3,221	 	 	16	%	 	 	106,544	 	 	 	81,411	 	 	 	25,133	 	 	31	%	
Total 1	 	$	599,248	 	 	$	939,939	 	 	$	414,610	 	 	$	196,093	 	 	$	666,977	 	 	$	(67,729	)	 	(10	%)	 	$	2,149,890	 	 	$	1,657,605	 	 	$	492,285	 	 	30	%	

 

Discover Financial Services	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
U.S. Card Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Managed Basis 8	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(unaudited, dollars in thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Quarter Ended	 	 	 	 	 	Year Ended	 	 	 	 	 	 	
 	 	Nov 30,
2009	 	 	Aug 31,
2009	 	 	May 31,
2009	 	 	Feb 28,
2009	 	 	Nov 30,
2008	 	 	Nov 30, 2009
vs Nov 30, 2008	 	 	Nov 30,
2009	 	 	Nov 30,
2008	 	 	2009 vs 2008	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings Summary	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	$	1,585,612	 	 	$	1,663,886	 	 	$	1,607,114	 	 	$	1,603,362	 	 	$	1,680,925	 	 	$	(95,313	)	 	(6	%)	 	$	6,459,974	 	 	$	6,542,664	 	 	$	(82,690	)	 	(1	%)	
Interest Expense	 	 	403,266	 	 	 	392,592	 	 	 	414,002	 	 	 	438,338	 	 	 	602,386	 	 	 	(199,120	)	 	(33	%)	 	 	1,648,198	 	 	 	2,356,836	 	 	 	(708,638	)	 	(30	%)	
Net Interest Income	 	 	1,182,346	 	 	 	1,271,294	 	 	 	1,193,112	 	 	 	1,165,024	 	 	 	1,078,539	 	 	 	103,807	 	 	10	%	 	 	4,811,776	 	 	 	4,185,828	 	 	 	625,948	 	 	15	%	
Other Income 1	 	 	924,499	 	 	 	1,055,529	 	 	 	834,630	 	 	 	863,223	 	 	 	1,234,100	 	 	 	(309,601	)	 	(25	%)	 	 	3,677,881	 	 	 	2,773,896	 	 	 	903,985	 	 	33	%	
Revenue Net of Interest Expense	 	 	2,106,845	 	 	 	2,326,823	 	 	 	2,027,742	 	 	 	2,028,247	 	 	 	2,312,639	 	 	 	(205,794	)	 	(9	%)	 	 	8,489,657	 	 	 	6,959,724	 	 	 	1,529,933	 	 	22	%	
Provision for Loan Losses	 	 	989,009	 	 	 	924,427	 	 	 	1,111,232	 	 	 	1,333,673	 	 	 	1,105,971	 	 	 	(116,962	)	 	(11	%)	 	 	4,358,341	 	 	 	3,068,604	 	 	 	1,289,737	 	 	42	%	
Total Other Expense	 	 	542,359	 	 	 	489,596	 	 	 	528,608	 	 	 	527,407	 	 	 	560,241	 	 	 	(17,882	)	 	(3	%)	 	 	2,087,970	 	 	 	2,314,926	 	 	 	(226,956	)	 	(10	%)	
Income Before Income Taxes   1	 	$	575,477	 	 	$	912,800	 	 	$	387,902	 	 	$	167,167	 	 	$	646,427	 	 	$	(70,950	)	 	(11	%)	 	$	2,043,346	 	 	$	1,576,194	 	 	$	467,152	 	 	30	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Yield on Managed Loan Receivables	 	 	9.37	%	 	 	9.90	%	 	 	9.26	%	 	 	9.11	%	 	 	8.55	%	 	 	82	 	bps	 	 	 	9.41	%	 	 	8.54	%	 	 	87	 	bps	 	
Pretax Return on Managed Loan Receivables   1	 	 	4.56	%	 	 	7.10	%	 	 	3.01	%	 	 	1.31	%	 	 	5.13	%	 	 	(57	)	bps	 	 	 	4.00	%	 	 	3.22	%	 	 	78	 	bps	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loan Receivables	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Loans - Managed	 	$	50,860,372	 	 	$	50,903,845	 	 	$	51,032,382	 	 	$	50,888,704	 	 	$	51,095,278	 	 	$	(234,906	)	 	(0	%)	 	$	50,860,372	 	 	$	51,095,278	 	 	$	(234,906	)	 	(0	%)	
Average Total Loans - Managed	 	$	50,590,846	 	 	$	50,971,056	 	 	$	51,132,761	 	 	$	51,877,845	 	 	$	50,707,090	 	 	$	(116,244	)	 	(0	%)	 	$	51,140,614	 	 	$	49,011,148	 	 	$	2,129,466	 	 	4	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Managed Interest Yield	 	 	12.34	%	 	 	12.73	%	 	 	12.19	%	 	 	12.17	%	 	 	12.65	%	 	 	(31	)	bps	 	 	 	12.36	%	 	 	12.61	%	 	 	(25	)	bps	 	
Managed Net Principal Charge-off Rate	 	 	8.43	%	 	 	8.39	%	 	 	7.79	%	 	 	6.48	%	 	 	5.48	%	 	 	295	 	bps	 	 	 	7.77	%	 	 	5.01	%	 	 	276	 	bps	 	
Managed Delinquency Rate (over 30 days)	 	 	5.31	%	 	 	5.10	%	 	 	5.08	%	 	 	5.25	%	 	 	4.56	%	 	 	75	 	bps	 	 	 	5.31	%	 	 	4.56	%	 	 	75	 	bps	 	
Managed Delinquency Rate (over 90 days)	 	 	2.78	%	 	 	2.60	%	 	 	2.73	%	 	 	2.69	%	 	 	2.17	%	 	 	61	 	bps	 	 	 	2.78	%	 	 	2.17	%	 	 	61	 	bps	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Credit Card Loans	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Credit Card Loans - Managed	 	$	47,465,590	 	 	$	48,135,639	 	 	$	48,903,632	 	 	$	49,011,177	 	 	$	49,692,974	 	 	$	(2,227,384	)	 	(4	%)	 	$	47,465,590	 	 	$	49,692,974	 	 	$	(2,227,384	)	 	(4	%)	
Average Credit Card Loans - Managed	 	$	47,429,775	 	 	$	48,641,890	 	 	$	49,108,321	 	 	$	50,254,235	 	 	$	49,420,412	 	 	$	(1,990,637	)	 	(4	%)	 	$	48,854,822	 	 	$	48,229,519	 	 	$	625,303	 	 	1	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Managed Interest Yield	 	 	12.75	%	 	 	12.99	%	 	 	12.37	%	 	 	12.28	%	 	 	12.72	%	 	 	3	 	bps	 	 	 	12.59	%	 	 	12.65	%	 	 	(6	)	bps	 	
Managed Net Principal Charge-off Rate	 	 	8.81	%	 	 	8.63	%	 	 	7.99	%	 	 	6.61	%	 	 	5.59	%	 	 	322	 	bps	 	 	 	8.00	%	 	 	5.07	%	 	 	293	 	bps	 	
Managed Delinquency Rate (over 30 days)	 	 	5.60	%	 	 	5.31	%	 	 	5.23	%	 	 	5.41	%	 	 	4.66	%	 	 	94	 	bps	 	 	 	5.60	%	 	 	4.66	%	 	 	94	 	bps	 	
Managed Delinquency Rate (over 90 days)	 	 	2.94	%	 	 	2.72	%	 	 	2.82	%	 	 	2.78	%	 	 	2.22	%	 	 	72	 	bps	 	 	 	2.94	%	 	 	2.22	%	 	 	72	 	bps	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Discover Card Volume	 	$	23,335,440	 	 	$	23,955,402	 	 	$	24,336,751	 	 	$	23,964,577	 	 	$	25,318,553	 	 	$	(1,983,113	)	 	(8	%)	 	$	95,592,170	 	 	$	105,734,055	 	 	$	(10,141,885	)	 	(10	%)	
Discover Card Sales Volume	 	$	21,903,694	 	 	$	22,768,927	 	 	$	21,494,174	 	 	$	21,293,757	 	 	$	22,025,264	 	 	$	(121,570	)	 	(1	%)	 	$	87,460,552	 	 	$	92,239,779	 	 	$	(4,779,227	)	 	(5	%)	

 

Discover Financial Services	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Third-Party Payments Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(unaudited, dollars in thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Quarter Ended	 	 	 	 	 	Year Ended	 	 	 	 	 	 	 	
 	 	Nov 30,
2009	 	 	Aug 31,
2009	 	 	May 31,
2009	 	 	Feb 28,
2009	 	 	Nov 30,
2008	 	 	Nov 30, 2009
vs Nov 30, 2008	 	 	Nov 30,
2009	 	 	Nov 30,
2008	 	 	2009 vs 2008	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings Summary	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	$	78	 	 	$	195	 	 	$	338	 	 	$	487	 	 	$	1,342	 	 	$	(1,264	)	 	(94	%)	 	$	1,098	 	 	$	3,165	 	 	$	(2,067	)	 	(65	%)	
Interest Expense	 	 	32	 	 	 	50	 	 	 	61	 	 	 	79	 	 	 	64	 	 	 	(32	)	 	(50	%)	 	 	222	 	 	 	83	 	 	 	139	 	 	167	%	
Net Interest Income	 	 	46	 	 	 	145	 	 	 	277	 	 	 	408	 	 	 	1,278	 	 	 	(1,232	)	 	(96	%)	 	 	876	 	 	 	3,082	 	 	 	(2,206	)	 	(72	%)	
Other Income	 	 	59,873	 	 	 	61,236	 	 	 	58,451	 	 	 	60,234	 	 	 	53,113	 	 	 	6,760	 	 	13	%	 	 	239,794	 	 	 	179,200	 	 	 	60,594	 	 	34	%	
Revenue Net of Interest Expense	 	 	59,919	 	 	 	61,381	 	 	 	58,728	 	 	 	60,642	 	 	 	54,391	 	 	 	5,528	 	 	10	%	 	 	240,670	 	 	 	182,282	 	 	 	58,388	 	 	32	%	
Provision for Loan Losses	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	NM	 	 	 	-	 	 	 	-	 	 	 	-	 	 	NM	 	
Total Other Expense	 	 	36,148	 	 	 	34,242	 	 	 	32,020	 	 	 	31,716	 	 	 	33,841	 	 	 	2,307	 	 	7	%	 	 	134,126	 	 	 	100,871	 	 	 	33,255	 	 	33	%	
Income Before Income Taxes	 	$	23,771	 	 	$	27,139	 	 	$	26,708	 	 	$	28,926	 	 	$	20,550	 	 	$	3,221	 	 	16	%	 	$	106,544	 	 	$	81,411	 	 	$	25,133	 	 	31	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Volume	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
PULSE Network	 	$	24,667,926	 	 	$	28,051,978	 	 	$	29,128,044	 	 	$	27,454,173	 	 	$	25,033,235	 	 	$	(365,309	)	 	(1	%)	 	$	109,302,121	 	 	$	106,012,108	 	 	$	3,290,013	 	 	3	%	
Third-Party Issuers	 	 	1,522,269	 	 	 	1,446,308	 	 	 	1,340,532	 	 	 	1,362,446	 	 	 	1,538,013	 	 	 	(15,744	)	 	(1	%)	 	 	5,671,555	 	 	 	6,398,579	 	 	 	(727,024	)	 	(11	%)	
Diners Club International 6	 	 	7,172,809	 	 	 	6,465,990	 	 	 	6,240,604	 	 	 	6,293,574	 	 	 	7,457,893	 	 	 	(285,566	)	 	(4	%)	 	 	26,172,977	 	 	 	12,685,690	 	 	 	13,486,805	 	 	106	%	
Total Third-Party Payments	 	$	33,363,004	 	 	$	35,964,276	 	 	$	36,709,180	 	 	$	35,110,193	 	 	$	34,029,141	 	 	$	(666,619	)	 	(2	%)	 	$	141,146,653	 	 	$	125,096,377	 	 	$	16,049,794	 	 	13	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Transactions Processed on PULSE Network (000's)	 	 	676,817	 	 	 	753,201	 	 	 	762,175	 	 	 	686,527	 	 	 	644,045	 	 	 	32,772	 	 	5	%	 	 	2,878,720	 	 	 	2,682,312	 	 	 	196,408	 	 	7	%	

1   The quarters ended November 30, 2008, February 28, 2009, May 31, 2009, August 31, 2009 and November 30, 2009 include $864 million pre-tax (estimated $535 million after-tax), $475 million pre-tax (estimated  $297 million after-tax), $473 million pre-tax (estimated $295 million after-tax), $472 million pre-tax (estimated $287 million after-tax), and $472 million (estimated $285 million after-tax), respectively related  to the Visa/Mastercard anti-trust litigation settlement.	
 	
2   The year ended November 30, 2008 includes a loss from discontinued operations, net of tax, of $135 million consisting of a $166 million loss related to the sale of the Goldfish business partially offset by $31 million  of income related to the Goldfish business operations.	
 	
3   Net income available to common stockholders equals net income less dividends and accretion of discount on shares of preferred stock.	
 	
4    Based on continuing operations except equity and ROE. Equity includes $1.2 billion of preferred stock and $7.3 billion of common equity as of November 30, 2009.	
 	
5    Earnings per share is based on net income available to common stockholders.	
 	
6    Volume is derived from data provided by licensees for Diners Club branded cards issued outside of North America and is subject to subsequent revision or amendment.	
 	
7   Gross proprietary sales volume on the Discover Network.	
 	
8   Managed basis assumes that loans that have been securitized were not sold and presents financial information regarding these loans in a manner similar to the presentation of financial information regarding loans that  have not been sold. See Reconciliation of GAAP to Managed Data schedule.	
 	
9   Balance on a GAAP and Managed basis is the same.	
 	
10 Tangible common equity ("TCE"), a non-GAAP financial measure, represents common equity less goodwill and intangibles. The Company believes TCE is a more meaningful valuation 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 Managed Data schedule.	
 	
11 Represents total common equity divided by total managed assets less goodwill and intangibles.	
 	
12 Represents total common equity less goodwill and intangibles divided by total managed assets less goodwill and intangibles.	
 	
13 Reserve Rate (excluding guaranteed student loans), a non-GAAP measure, represents the allowance for loan losses as a percentage of total loans excluding guaranteed student loans. The Company believes that a  reserve rate excluding the government guaranteed portion of student loans is a more meaningful valuation to investors of the portion of the portfolio that has a risk of loss. For a corresponding reconciliation of loans  excluding the guaranteed portion of student loans to a GAAP financial measure, see Reconciliation of GAAP to Managed Data schedule.	
 	
14 Securitization Adjustments present the effect of loan securitization by recharacterizing as securitization income the portions of the following items that relate to the securitized loans: interest income,  interest expense, provision for loan losses, discount and interchange revenue and loan fee revenues. Securitization income is reported in other income.	

 

 
DISCOVER FINANCIAL SERVICES	
 	
RECONCILIATION OF GAAP TO MANAGED DATA	

 	
The following pages present a reconciliation for certain information disclosed in the financial data supplement.	
 	
The data is presented on both a "managed" loan basis and as reported under generally accepted accounting principles ("owned" loan basis). Managed loan data assumes that the company's securitized loan receivables have not been sold and presents the results of securitized loan receivables in the same manner as the company's owned loans. The company operates its business and analyzes its financial performance on a managed basis. Accordingly, underwriting and servicing standards are comparable for both owned and securitized loans. The company believes that managed loan information is useful to investors because it provides information regarding the quality of loan origination and credit performance of the entire managed portfolio and allows investors to understand the related credit risks inherent in owned loans and retained interests in securitizations. Managed loan data is also relevant because the company services the securitized and owned loans, and the related accounts, in the same manner without regard to ownership of the loans. In addition, investors often request information on a managed basis which provides a more meaningful comparison to industry competitors.	

Tangible common equity ("TCE"), a non-GAAP financial measure, represents common equity less goodwill and intangibles.  A reconcilation of TCE to common equity, a GAAP financial measure, is shown on the pages that follow.  Other financial services companies may also use TCE and definitions may vary, so we advise users of this information to exercise caution in comparing TCE of different companies.  TCE, TCE as a percentage of tangible managed assets, TCE as a percentage of net managed loans and TCE per share are included because management believes that common equity excluding goodwill and intangibles is a more meaningful valuation to investors of the true net asset value of the company.	

Reserve rate (excluding guaranteed student loans), a non-GAAP financial measure, represents the allowance for loan losses as a percentage of total loans excluding guaranteed student loans. A reconciliation of total loans, a GAAP financial measure, to loans excluding the guaranteed portion of student loans is shown on the pages that follow. A portion of the Company's student loans are 97% guaranteed by the federal government under the Federal Family Education Loan Program. These guaranteed student loans carry little default risk and therefore, are reserved at a significantly lower rate than the remaining portfolio. Management believes that a reserve rate excluding the government guaranteed portion of student loans is a more meaningful valuation to investors of the portion of the portfolio that has a risk of loss.	

 

Discover Financial Services	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of GAAP to Managed Data 8	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(unaudited, dollars in thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Quarter Ended	 	 	Year Ended	 	
 	 	Nov 30, 2009	 	 	Aug 31, 2009	 	 	May 31, 2009	 	 	Feb 28, 2009	 	 	Nov 30, 2008	 	 	Nov 30, 2009	 	 	Nov 30, 2008	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	$	638,086	 	 	$	833,217	 	 	$	857,984	 	 	$	815,793	 	 	$	736,006	 	 	$	3,145,080	 	 	$	2,692,563	 	
Securitization Adjustments 14	 	 	947,604	 	 	 	830,864	 	 	 	749,468	 	 	 	788,056	 	 	 	946,261	 	 	 	3,315,992	 	 	 	3,853,266	 	
Managed Basis	 	$	1,585,690	 	 	$	1,664,081	 	 	$	1,607,452	 	 	$	1,603,849	 	 	$	1,682,267	 	 	$	6,461,072	 	 	$	6,545,829	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	$	314,158	 	 	$	304,401	 	 	$	320,005	 	 	$	312,720	 	 	$	329,672	 	 	$	1,251,284	 	 	$	1,288,004	 	
Securitization Adjustments	 	 	89,140	 	 	 	88,241	 	 	 	94,058	 	 	 	125,697	 	 	 	272,778	 	 	 	397,136	 	 	 	1,068,915	 	
Managed Basis	 	$	403,298	 	 	$	392,642	 	 	$	414,063	 	 	$	438,417	 	 	$	602,450	 	 	$	1,648,420	 	 	$	2,356,919	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Interest Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	$	323,928	 	 	$	528,816	 	 	$	537,979	 	 	$	503,073	 	 	$	406,334	 	 	$	1,893,796	 	 	$	1,404,559	 	
Securitization Adjustments	 	 	858,464	 	 	 	742,623	 	 	 	655,410	 	 	 	662,359	 	 	 	673,483	 	 	 	2,918,856	 	 	 	2,784,351	 	
Managed Basis	 	$	1,182,392	 	 	$	1,271,439	 	 	$	1,193,389	 	 	$	1,165,432	 	 	$	1,079,817	 	 	$	4,812,652	 	 	$	4,188,910	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	$	1,253,559	 	 	$	1,315,960	 	 	$	1,081,120	 	 	$	1,189,956	 	 	$	1,568,901	 	 	$	4,840,595	 	 	$	4,264,458	 	
Securitization Adjustments	 	 	(269,187	)	 	 	(199,195	)	 	 	(188,039	)	 	 	(266,499	)	 	 	(281,688	)	 	 	(922,920	)	 	 	(1,311,362	)	
Managed Basis	 	$	984,372	 	 	$	1,116,765	 	 	$	893,081	 	 	$	923,457	 	 	$	1,287,213	 	 	$	3,917,675	 	 	$	2,953,096	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue Net of Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	$	1,577,487	 	 	$	1,844,776	 	 	$	1,619,099	 	 	$	1,693,029	 	 	$	1,975,235	 	 	$	6,734,391	 	 	$	5,669,017	 	
Securitization Adjustments	 	 	589,277	 	 	 	543,428	 	 	 	467,371	 	 	 	395,860	 	 	 	391,795	 	 	 	1,995,936	 	 	 	1,472,989	 	
Managed Basis	 	$	2,166,764	 	 	$	2,388,204	 	 	$	2,086,470	 	 	$	2,088,889	 	 	$	2,367,030	 	 	$	8,730,327	 	 	$	7,142,006	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Provision for Loan Losses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	$	399,732	 	 	$	380,999	 	 	$	643,861	 	 	$	937,813	 	 	$	714,176	 	 	$	2,362,405	 	 	$	1,595,615	 	
Securitization Adjustments	 	 	589,277	 	 	 	543,428	 	 	 	467,371	 	 	 	395,860	 	 	 	391,795	 	 	 	1,995,936	 	 	 	1,472,989	 	
Managed Basis	 	$	989,009	 	 	$	924,427	 	 	$	1,111,232	 	 	$	1,333,673	 	 	$	1,105,971	 	 	$	4,358,341	 	 	$	3,068,604	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	$	46,010,146	 	 	$	42,698,290	 	 	$	41,518,288	 	 	$	40,606,518	 	 	$	39,892,382	 	 	$	46,010,146	 	 	$	39,892,382	 	
Securitization Adjustments	 	 	26,968,289	 	 	 	25,096,019	 	 	 	23,328,536	 	 	 	22,625,139	 	 	 	25,728,094	 	 	 	26,968,289	 	 	 	25,728,094	 	
Managed Basis	 	$	72,978,435	 	 	$	67,794,309	 	 	$	64,846,824	 	 	$	63,231,657	 	 	$	65,620,476	 	 	$	72,978,435	 	 	$	65,620,476	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Tangible Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	$	45,559,089	 	 	$	42,245,313	 	 	$	41,063,390	 	 	$	40,149,699	 	 	$	39,433,642	 	 	$	45,559,089	 	 	$	39,433,642	 	
Securitization Adjustments	 	 	26,968,289	 	 	 	25,096,019	 	 	 	23,328,536	 	 	 	22,625,139	 	 	 	25,728,094	 	 	 	26,968,289	 	 	 	25,728,094	 	
Managed Basis	 	$	72,527,378	 	 	$	67,341,332	 	 	$	64,391,926	 	 	$	62,774,838	 	 	$	65,161,736	 	 	$	72,527,378	 	 	$	65,161,736	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Common Equity	 	$	7,308,689	 	 	$	7,231,463	 	 	$	6,263,661	 	 	$	5,999,351	 	 	$	5,915,823	 	 	$	7,308,689	 	 	$	5,915,823	 	
   Less: Goodwill	 	 	255,421	 	 	 	255,421	 	 	 	255,421	 	 	 	255,421	 	 	 	255,421	 	 	 	255,421	 	 	 	255,421	 	
   Less: Intangibles	 	 	195,636	 	 	 	197,556	 	 	 	199,477	 	 	 	201,398	 	 	 	203,319	 	 	 	195,636	 	 	 	203,319	 	
Tangible Common Equity	 	$	6,857,632	 	 	$	6,778,486	 	 	$	5,808,763	 	 	$	5,542,532	 	 	$	5,457,083	 	 	$	6,857,632	 	 	$	5,457,083	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Common Equity/Tangible Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	 	16.0	%	 	 	17.1	%	 	 	15.3	%	 	 	14.9	%	 	 	15.0	%	 	 	16.0	%	 	 	15.0	%	
Securitization Adjustments	 	 	27.1	%	 	 	28.8	%	 	 	26.8	%	 	 	26.5	%	 	 	23.0	%	 	 	27.1	%	 	 	23.0	%	
Managed Basis	 	 	10.1	%	 	 	10.7	%	 	 	9.7	%	 	 	9.6	%	 	 	9.1	%	 	 	10.1	%	 	 	9.1	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Tangible Common Equity/Tangible Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	 	15.1	%	 	 	16.0	%	 	 	14.1	%	 	 	13.8	%	 	 	13.8	%	 	 	15.1	%	 	 	13.8	%	
Securitization Adjustments	 	 	25.4	%	 	 	27.0	%	 	 	24.9	%	 	 	24.5	%	 	 	21.2	%	 	 	25.4	%	 	 	21.2	%	
Managed Basis	 	 	9.5	%	 	 	10.1	%	 	 	9.0	%	 	 	8.8	%	 	 	8.4	%	 	 	9.5	%	 	 	8.4	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Common Equity/Net Loans	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	 	33.4	%	 	 	30.6	%	 	 	24.6	%	 	 	22.9	%	 	 	24.8	%	 	 	33.4	%	 	 	24.8	%	
Securitization Adjustments	 	 	26.8	%	 	 	28.5	%	 	 	26.6	%	 	 	26.3	%	 	 	22.9	%	 	 	26.8	%	 	 	22.9	%	
Managed Basis	 	 	14.9	%	 	 	14.7	%	 	 	12.8	%	 	 	12.2	%	 	 	11.9	%	 	 	14.9	%	 	 	11.9	%	

 

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Reconciliation of GAAP to Managed Data 8	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(unaudited, dollars in thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 Quarter Ended	 	 	 	Year Ended	 	
 	 	 	Nov 30, 2009	 	 	 	Aug 31, 2009	 	 	 	May 31, 2009	 	 	 	Feb 28, 2009	 	 	 	Nov 30, 2008	 	 	 	Nov 30, 2009	 	 	 	Nov 30, 2008	 	
Tangible Common Equity/Net Loans	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	 	31.4	%	 	 	28.7	%	 	 	22.8	%	 	 	21.2	%	 	 	22.9	%	 	 	31.4	%	 	 	22.9	%	
Securitization Adjustments	 	 	25.2	%	 	 	26.7	%	 	 	24.6	%	 	 	24.3	%	 	 	21.1	%	 	 	25.2	%	 	 	21.1	%	
Managed Basis	 	 	14.0	%	 	 	13.8	%	 	 	11.8	%	 	 	11.3	%	 	 	11.0	%	 	 	14.0	%	 	 	11.0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Book Value	 	$	15.59	 	 	$	15.45	 	 	$	15.40	 	 	$	12.46	 	 	$	12.32	 	 	$	15.59	 	 	$	12.32	 	
  Less: Goodwill	 	 	(0.47	)	 	 	(0.47	)	 	 	(0.53	)	 	 	(0.53	)	 	 	(0.53	)	 	 	(0.47	)	 	 	(0.53	)	
  Less: Intangibles	 	 	(0.36	)	 	 	(0.36	)	 	 	(0.41	)	 	 	(0.42	)	 	 	(0.42	)	 	 	(0.36	)	 	 	(0.42	)	
  Less: Preferred Stock	 	 	(2.13	)	 	 	(2.13	)	 	 	(2.40	)	 	 	0.00	 	 	 	0.00	 	 	 	(2.13	)	 	 	0.00	 	
Tangible Common Equity per share	 	$	12.63	 	 	$	12.49	 	 	$	12.06	 	 	$	11.51	 	 	$	11.37	 	 	$	12.63	 	 	$	11.37	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loan Receivables	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Loans	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	$	23,625,084	 	 	$	25,489,809	 	 	$	27,441,514	 	 	$	28,034,208	 	 	$	25,216,611	 	 	$	23,625,084	 	 	$	25,216,611	 	
Securitization Adjustments	 	 	27,235,288	 	 	 	25,414,036	 	 	 	23,590,868	 	 	 	22,854,496	 	 	 	25,878,667	 	 	 	27,235,288	 	 	 	25,878,667	 	
Managed Basis	 	$	50,860,372	 	 	$	50,903,845	 	 	$	51,032,382	 	 	$	50,888,704	 	 	$	51,095,278	 	 	$	50,860,372	 	 	$	51,095,278	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Loans - GAAP Basis	 	$	23,625,084	 	 	 	25,489,809	 	 	 	27,441,514	 	 	$	28,034,208	 	 	$	25,216,611	 	 	$	23,625,084	 	 	$	25,216,611	 	
  Less: Guaranteed portion of student loans	 	 	1,274,453	 	 	 	889,963	 	 	 	448,648	 	 	 	334,847	 	 	 	152,135	 	 	 	1,274,453	 	 	 	152,135	 	
Total Loans excluding guaranteed portion of student loans	 	$	22,350,631	 	 	$	24,599,846	 	 	$	26,992,866	 	 	$	27,699,361	 	 	$	25,064,476	 	 	$	22,350,631	 	 	$	25,064,476	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Total Loans	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	$	23,835,598	 	 	$	26,380,203	 	 	$	28,257,484	 	 	$	27,733,143	 	 	$	22,945,494	 	 	$	26,552,574	 	 	$	21,348,493	 	
Securitization Adjustments	 	 	26,755,248	 	 	 	24,590,853	 	 	 	22,875,277	 	 	 	24,144,702	 	 	 	27,761,596	 	 	 	24,588,040	 	 	 	27,662,655	 	
Managed Basis	 	$	50,590,846	 	 	$	50,971,056	 	 	$	51,132,761	 	 	$	51,877,845	 	 	$	50,707,090	 	 	$	51,140,614	 	 	$	49,011,148	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Yield	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	 	10.25	%	 	 	12.10	%	 	 	11.54	%	 	 	11.24	%	 	 	11.36	%	 	 	11.31	%	 	 	10.89	%	
Securitization Adjustments	 	 	14.21	%	 	 	13.40	%	 	 	13.00	%	 	 	13.24	%	 	 	13.71	%	 	 	13.49	%	 	 	13.93	%	
Managed Basis	 	 	12.34	%	 	 	12.73	%	 	 	12.19	%	 	 	12.17	%	 	 	12.65	%	 	 	12.36	%	 	 	12.61	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Yield on Loan Receivables	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	 	5.45	%	 	 	7.95	%	 	 	7.55	%	 	 	7.36	%	 	 	7.12	%	 	 	7.13	%	 	 	6.58	%	
Securitization Adjustments	 	 	12.87	%	 	 	11.98	%	 	 	11.37	%	 	 	11.13	%	 	 	9.76	%	 	 	11.87	%	 	 	10.07	%	
Managed Basis	 	 	9.37	%	 	 	9.90	%	 	 	9.26	%	 	 	9.11	%	 	 	8.56	%	 	 	9.41	%	 	 	8.55	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Principal Charge-off Rate	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	 	7.98	%	 	 	8.05	%	 	 	7.53	%	 	 	6.34	%	 	 	5.25	%	 	 	7.45	%	 	 	4.59	%	
Securitization Adjustments	 	 	8.83	%	 	 	8.77	%	 	 	8.11	%	 	 	6.65	%	 	 	5.68	%	 	 	8.12	%	 	 	5.32	%	
Managed Basis	 	 	8.43	%	 	 	8.39	%	 	 	7.79	%	 	 	6.48	%	 	 	5.48	%	 	 	7.77	%	 	 	5.01	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Delinquency Rate (over 30 days)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	 	4.92	%	 	 	4.86	%	 	 	4.87	%	 	 	5.04	%	 	 	4.35	%	 	 	4.92	%	 	 	4.35	%	
Securitization Adjustments	 	 	5.65	%	 	 	5.35	%	 	 	5.32	%	 	 	5.52	%	 	 	4.77	%	 	 	5.65	%	 	 	4.77	%	
Managed Basis	 	 	5.31	%	 	 	5.10	%	 	 	5.08	%	 	 	5.25	%	 	 	4.56	%	 	 	5.31	%	 	 	4.56	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Delinquency Rate (over 90 days)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	 	2.58	%	 	 	2.46	%	 	 	2.60	%	 	 	2.57	%	 	 	2.06	%	 	 	2.58	%	 	 	2.06	%	
Securitization Adjustments	 	 	2.95	%	 	 	2.74	%	 	 	2.88	%	 	 	2.83	%	 	 	2.27	%	 	 	2.95	%	 	 	2.27	%	
Managed Basis	 	 	2.78	%	 	 	2.60	%	 	 	2.73	%	 	 	2.69	%	 	 	2.17	%	 	 	2.78	%	 	 	2.17	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Credit Card Loans	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Credit Card Loans	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	$	20,230,302	 	 	$	22,721,603	 	 	$	25,312,764	 	 	$	26,156,681	 	 	$	23,814,307	 	 	$	20,230,302	 	 	$	23,814,307	 	
Securitization Adjustments	 	 	27,235,288	 	 	 	25,414,036	 	 	 	23,590,868	 	 	 	22,854,496	 	 	 	25,878,667	 	 	 	27,235,288	 	 	 	25,878,667	 	
Managed Basis	 	$	47,465,590	 	 	$	48,135,639	 	 	$	48,903,632	 	 	$	49,011,177	 	 	$	49,692,974	 	 	$	47,465,590	 	 	$	49,692,974	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Credit Card Loans	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	$	20,674,527	 	 	$	24,051,037	 	 	$	26,233,044	 	 	$	26,109,533	 	 	$	21,658,816	 	 	$	24,266,782	 	 	$	20,566,864	 	
Securitization Adjustments	 	 	26,755,248	 	 	 	24,590,853	 	 	 	22,875,277	 	 	 	24,144,702	 	 	 	27,761,596	 	 	 	24,588,040	 	 	 	27,662,655	 	
Managed Basis	 	$	47,429,775	 	 	$	48,641,890	 	 	$	49,108,321	 	 	$	50,254,235	 	 	$	49,420,412	 	 	$	48,854,822	 	 	$	48,229,519	 	

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Reconciliation of GAAP to Managed Data 8	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(unaudited, dollars in thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 Quarter Ended	 	 	 	 Year Ended	 	
 	 	 	 Nov 30, 2009	 	 	 	 Aug 31, 2009	 	 	 	 May 31, 2009	 	 	 	 Feb 28, 2009	 	 	 	 Nov 30, 2008	 	 	 	 Nov 30, 2009	 	 	 	 Nov 30, 2008	 	
Interest Yield	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	 	10.86	%	 	 	12.56	%	 	 	11.81	%	 	 	11.39	%	 	 	11.45	%	 	 	11.69	%	 	 	10.92	%	
Securitization Adjustments	 	 	14.21	%	 	 	13.40	%	 	 	13.00	%	 	 	13.24	%	 	 	13.71	%	 	 	13.49	%	 	 	13.93	%	
Managed Basis	 	 	12.75	%	 	 	12.99	%	 	 	12.37	%	 	 	12.28	%	 	 	12.72	%	 	 	12.59	%	 	 	12.65	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Principal Charge-off Rate	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	 	8.77	%	 	 	8.48	%	 	 	7.88	%	 	 	6.58	%	 	 	5.47	%	 	 	7.87	%	 	 	4.73	%	
Securitization Adjustments	 	 	8.83	%	 	 	8.77	%	 	 	8.11	%	 	 	6.65	%	 	 	5.68	%	 	 	8.12	%	 	 	5.32	%	
Managed Basis	 	 	8.81	%	 	 	8.63	%	 	 	7.99	%	 	 	6.61	%	 	 	5.59	%	 	 	8.00	%	 	 	5.07	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Delinquency Rate (over 30 days)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	 	5.52	%	 	 	5.27	%	 	 	5.15	%	 	 	5.32	%	 	 	4.55	%	 	 	5.52	%	 	 	4.55	%	
Securitization Adjustments	 	 	5.65	%	 	 	5.35	%	 	 	5.32	%	 	 	5.52	%	 	 	4.77	%	 	 	5.65	%	 	 	4.77	%	
Managed Basis	 	 	5.60	%	 	 	5.31	%	 	 	5.23	%	 	 	5.41	%	 	 	4.66	%	 	 	5.60	%	 	 	4.66	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Delinquency Rate (over 90 days)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	 	2.92	%	 	 	2.70	%	 	 	2.77	%	 	 	2.73	%	 	 	2.16	%	 	 	2.92	%	 	 	2.16	%	
Securitization Adjustments	 	 	2.95	%	 	 	2.74	%	 	 	2.88	%	 	 	2.83	%	 	 	2.27	%	 	 	2.95	%	 	 	2.27	%	
Managed Basis	 	 	2.94	%	 	 	2.72	%	 	 	2.82	%	 	 	2.78	%	 	 	2.22	%	 	 	2.94	%	 	 	2.22	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Return on Loan Receivables	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Basis	 	 	6.24	%	 	 	8.68	%	 	 	3.17	%	 	 	1.76	%	 	 	7.78	%	 	 	4.87	%	 	 	4.98	%	
Securitization Adjustments	 	 	5.56	%	 	 	9.32	%	 	 	3.92	%	 	 	2.02	%	 	 	6.43	%	 	 	5.26	%	 	 	3.84	%	
Managed Basis	 	 	2.94	%	 	 	4.49	%	 	 	1.75	%	 	 	0.94	%	 	 	3.52	%	 	 	2.53	%	 	 	2.17	%