Exhibit 99.2

Discover Financial Services
GAAP Basis
(unaudited, dollars in thousands,
except per share statistics)	Quarter Ended																					Nine Months Ended
	Aug 31, 2008			May 31, 2008			Feb 29, 2008			Nov 30, 2007			Aug 31, 2007			Aug 31, 2008 vs Aug 31, 2007						Aug 31, 2008			Aug 31, 2007			2008 vs 2007
Earnings Summary
Interest Income	$	681,692		$	612,063		$	662,802		$	659,676		$	674,864		$	6,828			1	%	$	1,956,557		$	1,924,726		$	31,831			2	%
Interest Expense		305,643			313,248			339,441			350,917			317,124			(11,481	)		(4	%)		958,332			872,353			85,979			10	%
Net Interest Income		376,049			298,815			323,361			308,759			357,740			18,309			5	%		998,225			1,052,373			(54,148	)		(5	%)
Other Income		875,121			844,892			975,544			952,500			804,047			71,074			9	%		2,695,557			2,424,182			271,375			11	%
Revenue Net of Interest Expense		1,251,170			1,143,707			1,298,905			1,261,259			1,161,787			89,383			8	%		3,693,782			3,476,555			217,227			6	%
Provision for Loan Losses		364,838			210,969			305,632			296,187			145,827			219,011			150	%		881,439			437,701			443,738			101	%
Employee Compensation and
Benefits		222,426			218,290			217,370			208,910			210,541			11,885			6	%		658,086			641,155			16,931			3	%
Marketing and Business
Development		137,928			132,038			141,553			155,976			153,786			(15,858	)		(10	%)		411,519			420,287			(8,768	)		(2	%)
Information Processing &
Communications		76,675			79,449			78,276			85,034			83,779			(7,104	)		(8	%)		234,400			245,019			(10,619	)		(4	%)
Professional Fees		82,775			81,392			73,672			94,380			88,111			(5,336	)		(6	%)		237,839			267,029			(29,190	)		(11	%)
Premises and Equipment		20,274			19,803			19,641			19,348			19,962			312			2	%		59,718			60,094			(376	)		(1	%)
Other Expense		72,469			75,853			71,831			73,082			69,705			2,764			4	%		220,153			207,899			12,254			6	%
Total Other Expense		612,547			606,825			602,343			636,730			625,884			(13,337	)		(2	%)		1,821,715			1,841,483			(19,768	)		(1	%)
Income (Loss) Before Income Taxes		273,785			325,913			390,930			328,342			390,076			(116,291	)		(30	%)		990,628			1,197,371			(206,743	)		(17	%)
Tax Expense		94,885			124,370			152,101			118,368			145,925			(51,040	)		(35	%)		371,356			443,146			(71,790	)		(16	%)
Income From Continuing Operations		178,900			201,543			238,829			209,974			244,151			(65,251	)		(27	%)		619,272			754,225			(134,953	)		(18	%)
Discontinued Operations, Net of Tax 1, 2		1,153			32,605			(157,615	)		(266,458	)		(41,911	)		43,064			103	%		(123,857	)		(109,111	)		(14,746	)		(14	%)
Net Income (Loss)  1, 2	$	180,053		$	234,148		$	81,214		$	(56,484	)	$	202,240		$	(22,187	)		(11	%)	$	495,415		$	645,114		$	(149,699	)		(23	%)
Effective Tax Rate From Continuing Operations		34.7	%		38.2	%		38.9	%		36.1	%		37.4	%								37.5	%		37.0	%
Balance Sheet Statistics 3
Total Assets	$	37,283,548		$	34,020,245		$	34,222,732		$	33,449,702		$	31,683,866		$	5,599,682			18	%	$	37,283,548		$	31,683,866		$	5,599,682			18	%
Total Equity	$	6,000,393		$	5,849,691		$	5,654,341		$	5,599,422		$	5,667,282		$	333,111			6	%	$	6,000,393		$	5,667,282		$	333,111			6	%
Total Tangible Equity	$	5,539,274		$	5,538,240		$	5,341,020		$	5,284,232		$	5,350,377		$	188,897			4	%	$	5,539,274		$	5,350,377		$	188,897			4	%
Tangible Equity/Total Owned Assets		14.9	%		16.3	%		15.6	%		15.8	%		16.9	%								14.9	%		16.9	%
ROE 1, 2		12	%		16	%		6	%		(4	%)		14	%								11	%		15	%
ROE from Continuing Operations		12	%		14	%		17	%		15	%		17	%								14	%		18	%
Allowance for Loan Loss (period end)	$	959,769		$	846,775		$	860,378		$	759,925		$	629,458		$	330,311			52	%	$	959,769		$	629,458		$	330,311			52	%
Change in Loan Loss Reserves	$	112,994		$	(13,603	)	$	100,453		$	130,467		$	(15,243	)	$	128,237		NM			$	199,844		$	(74,458	)	$	274,302		NM
Reserve Rate		4.41	%		4.28	%		4.16	%		3.65	%		3.28	%		113		bps				4.41	%		3.28	%		113		bps
Interest-only Strip Receivable (period end)	$	408,649		$	447,994		$	468,059		$	400,313		$	353,091		$	55,558			16	%	$	408,649		$	353,091		$	55,558			16	%
Net Revaluation of Retained Interests	$	(33,513	)	$	(44,473	)	$	74,997		$	37,475		$	(23,905	)	$	(9,608	)		40	%	$	(2,989	)	$	13,870		$	(16,859	)		(122	%)
Per Share Statistics
Basic EPS 1, 2	$	0.38		$	0.49		$	0.17		$	(0.12	)	$	0.42		$	(0.04	)		(10	%)	$	1.03		$	1.35		$	(0.32	)		(24	%)
Basic EPS from Continuing Operations	$	0.38		$	0.42		$	0.50		$	0.44		$	0.51		$	(0.13	)		(25	%)	$	1.29		$	1.57		$	(0.28	)		(18	%)
Diluted EPS 1, 2	$	0.37		$	0.48		$	0.17		$	(0.12	)	$	0.42		$	(0.05	)		(12	%)	$	1.03		$	1.35		$	(0.32	)		(24	%)
Diluted EPS from Continuing Operations	$	0.37		$	0.42		$	0.50		$	0.44		$	0.51		$	(0.14	)		(27	%)	$	1.28		$	1.57		$	(0.29	)		(18	%)
Stock Price (period end)	$	16.45		$	17.15		$	15.09		$	17.37		$	23.14		$	(6.69	)		(29	%)	$	16.45		$	23.14		$	(6.69	)		(29	%)
Book Value	$	12.51		$	12.20		$	11.80		$	11.72		$	11.87		$	0.64			5	%	$	12.51		$	11.87		$	0.64			5	%
Ending Shares Outstanding (000's)		479,764			479,346			479,127			477,688			477,328			2,436			1	%		479,764			477,328			2,436			1	%
Weighted Average Shares Outstanding (000's)		479,618			479,270			478,518			477,567			477,272			2,346			0	%		479,138			477,248			1,890			0	%
Weighted Average Shares Outstanding (fully diluted) (000's)		484,128			483,753			481,744			477,567			480,071			4,057			1	%		483,325			478,278			5,047			1	%
Loan Receivables 3
Total Loans - Owned	$	21,767,483		$	20,502,063		$	21,042,681		$	20,831,117		$	19,170,450		$	2,597,033			14	%	$	21,767,483		$	19,170,450		$	2,597,033			14	%
Average Total Loans - Owned	$	21,053,804		$	19,890,330		$	21,523,606		$	19,405,775		$	19,812,392		$	1,241,412			6	%	$	20,820,031		$	20,127,794		$	692,237			3	%
Interest Yield		11.41	%		10.40	%		10.34	%		10.51	%		11.20	%		21		bps				10.72	%		10.80	%		(8	)	bps
Net Principal Charge-off Rate		4.76	%		4.49	%		3.83	%		3.43	%		3.23	%		153		bps				4.36	%		3.39	%		97		bps
Delinquency Rate (over 30 days)		3.58	%		3.54	%		3.63	%		3.26	%		2.81	%		77		bps				3.58	%		2.81	%		77		bps
Delinquency Rate (over 90 days)		1.73	%		1.81	%		1.82	%		1.51	%		1.31	%		42		bps				1.73	%		1.31	%		42		bps
Transactions Processed on Networks (000's)
Discover Network		388,504			370,596			378,912			378,438			384,335			4,169			1	%		1,138,012			1,107,928			30,084			3	%
PULSE Network		713,791			703,404			621,072			611,518			593,866			119,925			20	%		2,038,267			1,673,543			364,724			22	%
Total		1,102,295			1,074,000			999,984			989,956			978,201			124,094			13	%		3,176,279			2,781,471			394,808			14	%
Volume
PULSE Network	$	28,364,575		$	27,830,403		$	24,783,895		$	23,035,361		$	22,372,106		$	5,992,469			27	%	$	80,978,873		$	63,201,047		$	17,777,826			28	%
Third-Party Issuers		1,711,617			1,603,006			1,545,943			1,458,959			1,492,568			219,049			15	%		4,860,566			4,021,146			839,420			21	%
Diners Club International 4		5,226,984			-			-			-			-			5,226,984		NM				5,226,984			-			5,226,984		NM
Total Third-Party Payments		35,303,176			29,433,409			26,329,838			24,494,320			23,864,674			11,438,502			48	%		91,066,423			67,222,193			23,844,230			35	%
Discover Network - Proprietary 5		25,117,321			23,621,519			24,074,331			23,482,095			24,411,714			705,607			3	%		72,813,171			70,312,405			2,500,766			4	%
Total	$	60,420,497		$	53,054,928		$	50,404,169		$	47,976,415		$	48,276,388		$	12,144,109			25	%	$	163,879,594		$	137,534,598		$	26,344,996			19	%

1 The quarter ended May 31, 2008 includes income from discontinued operations, net of tax of $32.6 million consisting of a $21 million gain related to disposition of the Goldfish business and income of $12 million related to the Goldfish business operations.  The quarter ended February 29, 2008 includes a loss from discontinued operations, net of tax of $158 million consisting of a $172 million loss related to reflecting the Goldfish business as held for sale and income of $14 million related to the Goldfish business operations.

2 The quarter ended November 30, 2007 includes a $391 million pre-tax ($279 million after-tax) non-cash impairment charge related to the company's Goldfish business.

3 Based on Continuing Operations except equity and ROE.  Equity is based on company's equity.

4 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.

5 Gross proprietary sales volume on the Discover Network.

1

Discover Financial Services
Managed Basis 1
(unaudited, dollars in thousands)
	Quarter Ended																					Nine Months Ended
	Aug 31, 2008			May 31, 2008			Feb 29, 2008			Nov 30, 2007			Aug 31, 2007			Aug 31, 2008 vs Aug 31, 2007						Aug 31, 2008			Aug 31, 2007			2008 vs 2007
Earnings Summary
Interest Income	$	1,638,250		$	1,572,697		$	1,652,615		$	1,667,418		$	1,626,808		$	11,442			1	%	$	4,863,562		$	4,711,256		$	152,306			3	%
Interest Expense		534,887			550,629			668,953			750,638			703,024			(168,137	)		(24	%)		1,754,469			1,990,490			(236,021	)		(12	%)
Net Interest Income		1,103,363			1,022,068			983,662			916,780			923,784			179,579			19	%		3,109,093			2,720,766			388,327			14	%
Other Income		536,997			492,207			636,679			633,014			510,525			26,472			5	%		1,665,883			1,586,762			79,121			5	%
Revenue Net of Interest Expense		1,640,360			1,514,275			1,620,341			1,549,794			1,434,309			206,051			14	%		4,774,976			4,307,528			467,448			11	%
Provision for Loan Losses		754,028			581,537			627,068			584,722			418,349			335,679			80	%		1,962,633			1,268,674			693,959			55	%
Employee Compensation and
Benefits		222,426			218,290			217,370			208,910			210,541			11,885			6	%		658,086			641,155			16,931			3	%
Marketing and Business
Development		137,928			132,038			141,553			155,976			153,786			(15,858	)		(10	%)		411,519			420,287			(8,768	)		(2	%)
Information Processing &
Communications		76,675			79,449			78,276			85,034			83,779			(7,104	)		(8	%)		234,400			245,019			(10,619	)		(4	%)
Professional Fees		82,775			81,392			73,672			94,380			88,111			(5,336	)		(6	%)		237,839			267,029			(29,190	)		(11	%)
Premises and Equipment		20,274			19,803			19,641			19,348			19,962			312			2	%		59,718			60,094			(376	)		(1	%)
Other Expense		72,469			75,853			71,831			73,082			69,705			2,764			4	%		220,153			207,899			12,254			6	%
Total Other Expense		612,547			606,825			602,343			636,730			625,884			(13,337	)		(2	%)		1,821,715			1,841,483			(19,768	)		(1	%)
Income (Loss) Before Income Taxes		273,785			325,913			390,930			328,342			390,076			(116,291	)		(30	%)		990,628			1,197,371			(206,743	)		(17	%)
Tax Expense		94,885			124,370			152,101			118,368			145,925			(51,040	)		(35	%)		371,356			443,146			(71,790	)		(16	%)
Income From Continuing Operations		178,900			201,543			238,829			209,974			244,151			(65,251	)		(27	%)		619,272			754,225			(134,953	)		(18	%)
Discontinued Operations, Net of Tax 2, 3		1,153			32,605			(157,615	)		(266,458	)		(41,911	)		43,064			103	%		(123,857	)		(109,111	)		(14,746	)		(14	%)
Net Income (Loss) 2, 3	$	180,053		$	234,148		$	81,214		$	(56,484	)	$	202,240		$	(22,187	)		(11	%)	$	495,415		$	645,114		$	(149,699	)		(23	%)
Balance Sheet Statistics 4
Total Assets	$	65,632,825		$	62,148,577		$	61,937,501		$	60,591,475		$	59,688,962		$	5,943,863			10	%	$	65,632,825		$	59,688,962		$	5,943,863			10	%
Total Equity 5	$	6,000,393		$	5,849,691		$	5,654,341		$	5,599,422		$	5,667,282		$	333,111			6	%	$	6,000,393		$	5,667,282		$	333,111			6	%
Total Tangible Equity 5	$	5,539,274		$	5,538,240		$	5,341,020		$	5,284,232		$	5,350,377		$	188,897			4	%	$	5,539,274		$	5,350,377		$	188,897			4	%
Tangible Equity/Net Managed Receivables		11.2	%		11.8	%		11.5	%		11.1	%		11.4	%								11.2	%		11.4	%
Tangible Equity/Total Managed Assets		8.4	%		8.9	%		8.6	%		8.7	%		9.0	%								8.4	%		9.0	%
Net Yield on Loan Receivables		8.95	%		8.57	%		8.10	%		7.76	%		7.80	%		115		bps				8.54	%		7.75	%		79		bps
Return on Loan Receivables		1.45	%		1.69	%		1.97	%		1.78	%		2.06	%		(61	)	bps				1.70	%		2.15	%		(45	)	bps
Loan Receivables 4
Total Loans - Managed	$	50,427,305		$	47,841,491		$	47,500,410		$	48,180,436		$	47,444,107		$	2,983,198			6	%	$	50,427,305		$	47,444,107		$	2,983,198			6	%
Average Total Loans - Managed	$	49,019,083		$	47,472,077		$	48,863,166		$	47,381,471		$	47,016,472		$	2,002,611			4	%	$	48,449,945		$	46,758,044		$	1,691,901			4	%
Managed Interest Yield		12.67	%		12.41	%		12.70	%		12.84	%		12.75	%		(8	)	bps				12.59	%		12.59	%		0		bps
Managed Net Principal Charge-off Rate		5.20	%		4.99	%		4.33	%		3.85	%		3.66	%		154		bps				4.84	%		3.83	%		101		bps
Managed Delinquency Rate (over 30 days)		3.85	%		3.81	%		3.90	%		3.58	%		3.16	%		69		bps				3.85	%		3.16	%		69		bps
Managed Delinquency Rate (over 90 days)		1.88	%		1.96	%		1.96	%		1.67	%		1.48	%		40		bps				1.88	%		1.48	%		40		bps
Credit Card Volume	$	28,611,680		$	25,596,794		$	26,207,028		$	26,159,776		$	27,171,729		$	1,439,951			5	%	$	80,415,502		$	80,461,042		$	(45,540	)		(0	%)
Credit Card Sales Volume	$	24,601,611		$	22,457,651		$	23,155,253		$	22,588,639		$	23,527,999		$	1,073,612			5	%	$	70,214,515		$	67,673,917		$	2,540,598			4	%
Segment - Income Before Income Taxes
U.S. Card	$	245,241		$	309,123		$	375,403		$	320,751		$	380,637		$	(135,396	)		(36	%)	$	929,767		$	1,168,002		$	(238,235	)		(20	%)
Third-Party Payments		28,544			16,790			15,527			7,591			9,439			19,105		NM				60,861			29,369			31,492			107	%
Total	$	273,785		$	325,913		$	390,930		$	328,342		$	390,076		$	(116,291	)		(30	%)	$	990,628		$	1,197,371		$	(206,743	)		(17	%)

1 Managed basis assumes loans that have been securitized were not sold and presents earnings and statistical information on these loans in a manner similar to the way loans that have not been sold are presented.  See Reconciliation of GAAP to Managed Data schedule.

2 The quarter ended May 31, 2008 includes income from discontinued operations, net of tax of $32.6 million consisting of a $21 million gain related to disposition of the Goldfish business and income of $12 million related to the Goldfish business operations.  The quarter ended February 29, 2008 includes a loss from discontinued operations, net of tax of $158 million consisting of a $172 million loss related to reflecting the Goldfish business as held for sale and income of $14 million related to the Goldfish business operations.

3 The quarter ended November 30, 2007 includes a $391 million pre-tax ($279 million after-tax) non-cash impairment charge related to the company's Goldfish business.

4 Based on Continuing Operations.  Equity is based on company's equity.

5 Balance on a GAAP and Managed basis is the same.

2

Discover Financial Services
U.S. Card Segment
Managed Basis 1
(unaudited, dollars in thousands)
	Quarter Ended																					Nine Months Ended
	Aug 31, 2008			May 31, 2008			Feb 29, 2008			Nov 30, 2007			Aug 31, 2007			Aug 31, 2008 vs Aug 31, 2007						Aug 31, 2008			Aug 31, 2007			2008 vs 2007
Earnings Summary
Interest Income	$	1,637,588		$	1,572,164		$	1,651,987		$	1,666,768		$	1,626,214		$	11,374			1	%	$	4,861,739		$	4,709,530		$	152,209			3	%
Interest Expense		534,870			550,629			668,951			750,638			703,024			(168,154	)		(24	%)		1,754,450			1,990,471			(236,021	)		(12	%)
Net Interest Income		1,102,718			1,021,535			983,036			916,130			923,190			179,528			19	%		3,107,289			2,719,059			388,230			14	%
Other Income		482,311			455,074			602,411			603,709			481,060			1,251			0	%		1,539,796			1,497,367			42,429			3	%
Revenue Net of Interest Expense		1,585,029			1,476,609			1,585,447			1,519,839			1,404,250			180,779			13	%		4,647,085			4,216,426			430,659			10	%
Provision for Loan Losses		754,028			581,537			627,068			584,722			418,349			335,679			80	%		1,962,633			1,268,674			693,959			55	%
Total Other Expense		585,760			585,949			582,976			614,366			605,264			(19,504	)		(3	%)		1,754,685			1,779,750			(25,065	)		(1	%)
Income (Loss) Before Income Taxes	$	245,241		$	309,123		$	375,403		$	320,751		$	380,637		$	(135,396	)		(36	%)	$	929,767		$	1,168,002		$	(238,235	)		(20	%)
Net Yield on Loan Receivables		8.95	%		8.56	%		8.09	%		7.76	%		7.79	%		116		bps				8.54	%		7.75	%		79		bps
Pretax Return on Loan Receivables		1.99	%		2.59	%		3.09	%		2.72	%		3.21	%		(122	)	bps				2.55	%		3.33	%		(78	)	bps
Loan Receivables
Total Loans	$	50,427,305		$	47,841,491		$	47,500,410		$	48,180,436		$	47,444,107		$	2,983,198			6	%	$	50,427,305		$	47,444,107		$	2,983,198			6	%
Average Total Loans	$	49,019,083		$	47,472,077		$	48,863,166		$	47,381,471		$	47,016,472		$	2,002,611			4	%	$	48,449,945		$	46,758,044		$	1,691,901			4	%
Managed Interest Yield		12.67	%		12.41	%		12.70	%		12.84	%		12.75	%		(8	)	bps				12.59	%		12.59	%		0		bps
Managed Net Principal Charge-off Rate		5.20	%		4.99	%		4.33	%		3.85	%		3.66	%		154		bps				4.84	%		3.83	%		101		bps
Managed Delinquency Rate (over 30 days)		3.85	%		3.81	%		3.90	%		3.58	%		3.16	%		69		bps				3.85	%		3.16	%		69		bps
Managed Delinquency Rate (over 90 days)		1.88	%		1.96	%		1.96	%		1.67	%		1.48	%		40		bps				1.88	%		1.48	%		40		bps
Credit Card Loans
Credit Card Loans - Managed	$	49,348,507		$	47,124,842		$	47,014,539		$	47,929,242		$	47,352,098		$	1,996,409			4	%	$	49,348,507		$	47,352,098		$	1,996,409			4	%
Average Credit Card Loans - Managed	$	48,168,124		$	46,857,480		$	48,487,812		$	47,251,899		$	46,926,260		$	1,241,864			3	%	$	47,835,442		$	46,665,329		$	1,170,113			3	%
Managed Interest Yield		12.70	%		12.43	%		12.72	%		12.85	%		12.76	%		(6	)	bps				12.62	%		12.60	%		2		bps
Managed Net Principal Charge-off Rate		5.28	%		5.05	%		4.37	%		3.85	%		3.67	%		161		bps				4.90	%		3.83	%		107		bps
Managed Delinquency Rate (over 30 days)		3.92	%		3.85	%		3.93	%		3.59	%		3.16	%		76		bps				3.92	%		3.16	%		76		bps
Managed Delinquency Rate (over 90 days)		1.92	%		1.99	%		1.98	%		1.68	%		1.48	%		44		bps				1.92	%		1.48	%		44		bps
Total Credit Card Volume	$	28,611,680		$	25,596,794		$	26,207,028		$	26,159,776		$	27,171,729		$	1,439,951			5	%	$	80,415,502		$	80,461,042		$	(45,540	)		(0	%)
Sales Volume	$	24,601,611		$	22,457,651		$	23,155,253		$	22,588,639		$	23,527,999		$	1,073,612			5	%	$	70,214,515		$	67,673,917		$	2,540,598			4	%

1 Managed basis assumes loans that have been securitized were not sold and presents earnings and statistical information on these loans in a manner similar to the way loans that have not been sold are presented.  See Reconciliation of GAAP to Managed Data schedule.

3

Discover Financial Services
Third-Party Payments Segment
(unaudited, dollars in thousands)
	Quarter Ended															Nine Months Ended
	Aug 31, 2008		May 31, 2008		Feb 29, 2008		Nov 30, 2007		Aug 31, 2007		Aug 31, 2008 vs Aug 31, 2007					Aug 31, 2008		Aug 31, 2007		2008 vs 2007
Earnings Summary
Interest Income	$	662	$	533	$	628	$	650	$	594	$	68		11	%	$	1,823	$	1,726	$	97		6	%
Interest Expense		17		-		2		-		-		17		100	%		19		19		-		0	%
Net Interest Income		645		533		626		650		594		51		9	%		1,804		1,707		97		6	%
Other Income		54,686		37,133		34,268		29,305		29,465		25,221		86	%		126,087		89,395		36,692		41	%
Revenue Net of Interest Expense		55,331		37,666		34,894		29,955		30,059		25,272		84	%		127,891		91,102		36,789		40	%
Provision for Loan Losses		-		-		-		-		-		-		0	%		-		-		-		0	%
Total Other Expense		26,787		20,876		19,367		22,364		20,620		6,167		30	%		67,030		61,733		5,297		9	%
Income (Loss) Before Income Taxes	$	28,544	$	16,790	$	15,527	$	7,591	$	9,439	$	19,105	NM			$	60,861	$	29,369	$	31,492		107	%
Volume
PULSE Network	$	28,364,575	$	27,830,403	$	24,783,895	$	23,035,361	$	22,372,106	$	5,992,469		27	%	$	80,978,873	$	63,201,047	$	17,777,826		28	%
Third-Party Issuers		1,711,617		1,603,006		1,545,943		1,458,959		1,492,568		219,049		15	%		4,860,566		4,021,146		839,420		21	%
Diners Club International 1		5,226,984		-		-		-		-		5,226,984	NM				5,226,984		-		5,226,984	NM
Total Third-Party Payments	$	35,303,176	$	29,433,409	$	26,329,838	$	24,494,320	$	23,864,674	$	11,438,502		48	%	$	91,066,423	$	67,222,193	$	23,844,230		35	%
Transactions Processed on PULSE Network (000's)		713,791		703,404		621,072		611,518		593,866		119,925		20	%		2,038,267		1,673,543		364,724		22	%

1 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.

4

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 assume 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.

5

Discover Financial Services
Reconciliation of GAAP to Managed Data 1
(unaudited, dollars in thousands)
	Quarter Ended															Nine Months Ended
	Aug 31, 2008			May 31, 2008			Feb 29, 2008			Nov 30, 2007			Aug 31, 2007			Aug 31, 2008			Aug 31, 2007
Interest Income
GAAP Basis	$	681,692		$	612,063		$	662,802		$	659,676		$	674,864		$	1,956,557		$	1,924,726
Securitization Adjustments 1		956,558			960,634			989,813			1,007,742			951,944			2,907,005			2,786,530
Managed Basis	$	1,638,250		$	1,572,697		$	1,652,615		$	1,667,418		$	1,626,808		$	4,863,562		$	4,711,256
Interest Expense
GAAP Basis	$	305,643		$	313,248		$	339,441		$	350,917		$	317,124		$	958,332		$	872,353
Securitization Adjustments		229,244			237,381			329,512			399,721			385,900			796,137			1,118,137
Managed Basis	$	534,887		$	550,629		$	668,953		$	750,638		$	703,024		$	1,754,469		$	1,990,490
Net Interest Income
GAAP Basis	$	376,049		$	298,815		$	323,361		$	308,759		$	357,740		$	998,225		$	1,052,373
Securitization Adjustments		727,314			723,253			660,301			608,021			566,044			2,110,868			1,668,393
Managed Basis	$	1,103,363		$	1,022,068		$	983,662		$	916,780		$	923,784		$	3,109,093		$	2,720,766
Other Income
GAAP Basis	$	875,121		$	844,892		$	975,544		$	952,500		$	804,047		$	2,695,557		$	2,424,182
Securitization Adjustments		(338,124	)		(352,685	)		(338,865	)		(319,486	)		(293,522	)		(1,029,674	)		(837,420	)
Managed Basis	$	536,997		$	492,207		$	636,679		$	633,014		$	510,525		$	1,665,883		$	1,586,762
Revenue Net of Interest Expense
GAAP Basis	$	1,251,170		$	1,143,707		$	1,298,905		$	1,261,259		$	1,161,787		$	3,693,782		$	3,476,555
Securitization Adjustments		389,190			370,568			321,436			288,535			272,522			1,081,194			830,973
Managed Basis	$	1,640,360		$	1,514,275		$	1,620,341		$	1,549,794		$	1,434,309		$	4,774,976		$	4,307,528
Provision for Loan Losses
GAAP Basis	$	364,838		$	210,969		$	305,632		$	296,187		$	145,827		$	881,439		$	437,701
Securitization Adjustments		389,190			370,568			321,436			288,535			272,522			1,081,194			830,973
Managed Basis	$	754,028		$	581,537		$	627,068		$	584,722		$	418,349		$	1,962,633		$	1,268,674
Total Assets
GAAP Basis	$	37,283,548		$	34,020,245		$	34,222,732		$	33,449,702		$	31,683,866		$	37,283,548		$	31,683,866
Securitization Adjustments		28,349,277			28,128,332			27,714,769			27,141,773			28,005,096			28,349,277			28,005,096
Managed Basis	$	65,632,825		$	62,148,577		$	61,937,501		$	60,591,475		$	59,688,962		$	65,632,825		$	59,688,962
Tangible Equity/Total Assets
GAAP Basis		14.9	%		16.3	%		15.6	%		15.8	%		16.9	%		14.9	%		16.9	%
Securitization Adjustments		19.5	%		19.7	%		19.3	%		19.5	%		19.1	%		19.5	%		19.1	%
Managed Basis		8.4	%		8.9	%		8.6	%		8.7	%		9.0	%		8.4	%		9.0	%
Loan Receivables
Total Loans
GAAP Basis	$	21,767,483		$	20,502,063		$	21,042,681		$	20,831,117		$	19,170,450		$	21,767,483		$	19,170,450
Securitization Adjustments		28,659,822			27,339,428			26,457,729			27,349,319			28,273,657			28,659,822			28,273,657
Managed Basis	$	50,427,305		$	47,841,491		$	47,500,410		$	48,180,436		$	47,444,107		$	50,427,305		$	47,444,107
Average Total Loans
GAAP Basis	$	21,053,804		$	19,890,330		$	21,523,606		$	19,405,775		$	19,812,392		$	20,820,031		$	20,127,794
Securitization Adjustments		27,965,279			27,581,747			27,339,560			27,975,696			27,204,080			27,629,914			26,630,250
Managed Basis	$	49,019,083		$	47,472,077		$	48,863,166		$	47,381,471		$	47,016,472		$	48,449,945		$	46,758,044
Interest Yield
GAAP Basis		11.41	%		10.40	%		10.34	%		10.51	%		11.20	%		10.72	%		10.80	%
Securitization Adjustments		13.61	%		13.86	%		14.56	%		14.45	%		13.88	%		14.00	%		13.94	%
Managed Basis		12.67	%		12.41	%		12.70	%		12.84	%		12.75	%		12.59	%		12.59	%
Net Principal Charge-off Rate
GAAP Basis		4.76	%		4.49	%		3.83	%		3.43	%		3.23	%		4.36	%		3.39	%
Securitization Adjustments		5.54	%		5.34	%		4.73	%		4.14	%		3.97	%		5.21	%		4.16	%
Managed Basis		5.20	%		4.99	%		4.33	%		3.85	%		3.66	%		4.84	%		3.83	%
Delinquency Rate (over 30 days)
GAAP Basis		3.58	%		3.54	%		3.63	%		3.26	%		2.81	%		3.58	%		2.81	%
Securitization Adjustments		4.06	%		4.01	%		4.11	%		3.82	%		3.40	%		4.06	%		3.40	%
Managed Basis		3.85	%		3.81	%		3.90	%		3.58	%		3.16	%		3.85	%		3.16	%
Delinquency Rate (over 90 days)
GAAP Basis		1.73	%		1.81	%		1.82	%		1.51	%		1.31	%		1.73	%		1.31	%
Securitization Adjustments		2.00	%		2.07	%		2.08	%		1.79	%		1.60	%		2.00	%		1.60	%
Managed Basis		1.88	%		1.96	%		1.96	%		1.67	%		1.48	%		1.88	%		1.48	%
Credit Card Loans
Credit Card Loans
GAAP Basis	$	20,688,685		$	19,785,414		$	20,556,810		$	20,579,923		$	19,078,441		$	20,688,685		$	19,078,441
Securitization Adjustments		28,659,822			27,339,428			26,457,729			27,349,319			28,273,657			28,659,822			28,273,657
Managed Basis	$	49,348,507		$	47,124,842		$	47,014,539		$	47,929,242		$	47,352,098		$	49,348,507		$	47,352,098
Average Credit Card Loans
GAAP Basis	$	20,202,845		$	19,275,733		$	21,148,252		$	19,276,203		$	19,722,180		$	20,205,528		$	20,035,079
Securitization Adjustments		27,965,279			27,581,747			27,339,560			27,975,696			27,204,080			27,629,914			26,630,250
Managed Basis	$	48,168,124		$	46,857,480		$	48,487,812		$	47,251,899		$	46,926,260		$	47,835,442		$	46,665,329
Interest Yield
GAAP Basis		11.45	%		10.40	%		10.35	%		10.53	%		11.22	%		10.73	%		10.82	%
Securitization Adjustments		13.61	%		13.86	%		14.56	%		14.45	%		13.88	%		14.00	%		13.94	%
Managed Basis		12.70	%		12.43	%		12.72	%		12.85	%		12.76	%		12.62	%		12.60	%
Net Principal Charge-off Rate
GAAP Basis		4.92	%		4.63	%		3.90	%		3.44	%		3.24	%		4.47	%		3.40	%
Securitization Adjustments		5.54	%		5.34	%		4.73	%		4.14	%		3.97	%		5.21	%		4.16	%
Managed Basis		5.28	%		5.05	%		4.37	%		3.85	%		3.67	%		4.90	%		3.83	%
Delinquency Rate (over 30 days)
GAAP Basis		3.72	%		3.63	%		3.69	%		3.28	%		2.80	%		3.72	%		2.80	%
Securitization Adjustments		4.06	%		4.01	%		4.11	%		3.82	%		3.40	%		4.06	%		3.40	%
Managed Basis		3.92	%		3.85	%		3.93	%		3.59	%		3.16	%		3.92	%		3.16	%
Delinquency Rate (over 90 days)
GAAP Basis		1.81	%		1.87	%		1.86	%		1.53	%		1.31	%		1.81	%		1.31	%
Securitization Adjustments		2.00	%		2.07	%		2.08	%		1.79	%		1.60	%		2.00	%		1.60	%
Managed Basis		1.92	%		1.99	%		1.98	%		1.68	%		1.48	%		1.92	%		1.48	%

1 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.

6