Annual Meeting of Shareholders. May 2, 2018

Transcription

1 Annual Meeting of Shareholders May 2, 2018

2 Notice The following slides are part of a presentation by Discover Financial Services (the "Company") and are intended to be viewed as part of that presentation. No representation is made that the information in these slides is complete. Company financial data presented herein is based on a calendar year. For historical calendar year financial data, see the Company's Annual Report on Form 10-K for the year ended December 31, The presentation 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 risks and uncertainties that may cause actual results to differ materially. For a discussion of certain risks and uncertainties that may affect the future results of the Company, please see "Special Note Regarding Forward-Looking Statements," "Risk Factors," "Business Competition," "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 December 31, 2017, which is available on the Company s website and the SEC s website. The Company does not undertake to update or revise forward-looking statements as more information becomes available. We own or have rights to use the trademarks, trade names and service marks that we use in conjunction with the operation of our business, including, but not limited to: Discover, PULSE, Cashback Bonus, Discover Cashback Checking, Discover it, Freeze It SM, Discover Network and Diners Club International. All other trademarks, trade names and service marks included in this presentation are the property of their respective owners. 2

3 Discover: Our Foundation VISION To be the leading direct bank and payments partner. MISSION To help people spend smarter, manage debt better and save more so they achieve a brighter financial future. VALUES Doing the right thing Innovation Simplicity Collaboration Openness Volunteerism Enthusiasm Respect 3

4 2017 Results Body Strong Card loan growth and credit performance 9% growth YOY in ending total receivables 2.7% total net charge-off rate Record originations in banking products $1.6Bn student loan originations/commitments $4.4Bn personal loan originations Payments network growth Two new partnerships Vietnam and Turkey 14% growth in PULSE network volume 10% increase in Diners Club volume Strong returns and significant capital deployment 19% Return on Equity 8% of stock repurchased for $2.1Bn 7 straight years of dividend increases 4

5 2017 Accomplishments 2017 Launched Accomplishments free Social Security number alerts Introduced new student loan resources Enhanced checking rewards and expanded into broad market Expanded Discover cardmember access to digital wallets 5

6 Awards and Recognition Customer Experience Innovation/Technology Employee Satisfaction Highest in Customer Satisfaction among Mobile Credit Card Apps 1 (1) Discover received the highest numerical score among Mobile Credit Card Apps in J.D. Power s 2017 U.S. Credit Card App Satisfaction Study SM, based on 2,735 total responses from 9 companies in the segment measuring experiences and perceptions of customers, surveyed April

7 NYSE Bell Ringing Ceremony: June 29,

8 Our Progress: Loans $48 Bn $84 Bn Consumer Deposits $3Bn $3 Bn $39 Bn Network Volume $186 Bn $336 Bn Acceptance Locations 7MM 42 MM Net Income $0.6 Bn $2.1 Bn 2007 data is as of fiscal year ending November 30,

9 Stock Price Performance 2007YE 2008YE 2009YE 2010YE 2011YE 2012YE 2013YE 2014YE 2015YE 2016YE 2017YE Stock Price Performance 500 DFS vs. S&P 500 Financials Index DFS SP500 Financials Source: S&P Global Market Intelligence; price change relative to price on 12/31/07, includes data through 12/31/

10 Creating the Future of Banking Personalized, secure experience Proprietary, branded payments network VISION To be the leading direct bank and payments partner. Convenient, efficient, available on any device Leading customer service and loyalty 10

11 Annual Meeting of Shareholders May 2, 2018