Exhibit



DISCOVER FINANCIAL SERVICES																											Exhibit 99.2
EARNINGS SUMMARY
(unaudited, in millions, except per share statistics)
	Quarter Ended																				Twelve Months Ended
	Dec 31, 2015			Sep 30, 2015			Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Dec 31, 2015 vs. Dec 31, 2014					Dec 31, 2015			Dec 31, 2014			2015 vs. 2014
EARNINGS SUMMARY
Interest Income		$2,061			$2,008			$1,947			$1,929			$1,974			$87		4	%		$7,945			$7,596			$349		5	%
Interest Expense	329			323			311			300			302			27			9	%	1,263			1,134			129			11	%
Net Interest Income	1,732			1,685			1,636			1,629			1,672			60			4	%	6,682			6,462			220			3	%
Discount/Interchange Revenue	635			614			612			536			620			15			2	%	2,397			2,333			64			3	%
Rewards Cost	372			326			314			268			517			(145		)	(28	%)	1,280			1,354			(74		)	(5	%)
Discount and Interchange Revenue, net	263			288			298			268			103			160			155	%	1,117			979			138			14	%
Protection Products Revenue	60			62			68			71			75			(15		)	(20	%)	261			314			(53		)	(17	%)
Loan Fee Income	87			87			80			81			86			1			1	%	335			334			1			0	%
Transaction Processing Revenue	38			39			40			42			46			(8		)	(17	%)	159			182			(23		)	(13	%)
Other Income	25			27			53			80			55			(30		)	(55	%)	185			206			(21		)	(10	%)
Total Other Income	473			503			539			542			365			108			30	%	2,057			2,015			42			2	%

Revenue Net of Interest Expense	2,205			2,188			2,175			2,171			2,037			168			8	%	8,739			8,477			262			3	%

Provision for Loan Losses	484			332			306			390			457			27			6	%	1,512			1,443			69			5	%

Employee Compensation and Benefits	333			337			326			331			314			19			6	%	1,327			1,242			85			7	%
Marketing and Business Development	196			168			199			182			216			(20		)	(9	%)	745			735			10			1	%
Information Processing & Communications	87			84			90			88			88			(1		)	(1	%)	349			346			3			1	%
Professional Fees	170			160			153			127			128			42			33	%	610			450			160			36	%
Premises and Equipment	24			24			23			24			24			0			0	%	95			92			3			3	%
Other Expense	123			109			136			121			162			(39		)	(24	%)	489			475			14			3	%
Total Other Expense	933			882			927			873			932			1			—	%	3,615			3,340			275			8	%

Income Before Income Taxes	788			974			942			908			648			140			22	%	3,612			3,694			(82		)	(2	%)
Tax Expense	288			362			343			322			244			44			18	%	1,315			1,371			(56		)	(4	%)
Net Income		$500			$612			$599			$586			$404			$96		24	%		$2,297			$2,323			($26	)	(1	%)

Net Income Allocated to Common Stockholders		$488			$599			$586			$573			$392			$96		24	%		$2,246			$2,270			($24	)	(1	%)

Effective Tax Rate	36.5		%	37.2		%	36.4		%	35.5		%	37.7		%						36.4		%	37.1		%

Net Interest Margin	9.75		%	9.62		%	9.63		%	9.69		%	9.76		%	(1		)	bps		9.68		%	9.81		%	(13		)	bps
Operating Efficiency	42.3		%	40.3		%	42.6		%	40.2		%	45.8		%	(345		)	bps		41.4		%	39.4		%	200			bps
ROE	18		%	22		%	21		%	21		%	14		%						21		%	21		%

Ending Common Shares Outstanding	422			430			437			445			449			(27		)	(6	%)	422			449			(27		)	(6	%)
Weighted Average Common Shares Outstanding	426			433			441			448			452			(26		)	(6	%)	437			462			(25		)	(5	%)
Weighted Average Common Shares Outstanding (fully diluted)	426			434			442			448			453			(27		)	(6	%)	438			463			(25		)	(5	%)

PER SHARE STATISTICS
Basic EPS		$1.15			$1.38			$1.33			$1.28			$0.87			$0.28		32	%		$5.14			$4.91			$0.23		5	%
Diluted EPS		$1.14			$1.38			$1.33			$1.28			$0.87			$0.27		31	%		$5.13			$4.90			$0.23		5	%
Common Stock Price (period end)		$53.62			$51.99			$57.62			$56.35			$65.49			($11.87	)	(18	%)		$53.62			$65.49			($11.87	)	(18	%)
Book Value per share		$26.74			$26.32			$25.75			$25.22			$24.79			$1.95		8	%		$26.74			$24.79			$1.95		8	%

Note: See Glossary of Financial Terms for definitions of financial terms



DISCOVER FINANCIAL SERVICES
EARNINGS SUMMARY
(unaudited, in millions)
	Quarter Ended															Twelve Months Ended
	Dec 31, 2015		Sep 30, 2015		Jun 30, 2015		Mar 31, 2015		Dec 31, 2014		Dec 31, 2015 vs. Dec 31, 2014					Dec 31, 2015		Dec 31, 2014		2015 vs. 2014
SEGMENT- INCOME BEFORE INCOME TAXES
Direct Banking		$767		$950		$914		$881		$646		$121		19	%		$3,512		$3,605		($93	)	(3	%)
Payment Services	21		24		28		27		2		19			NM		100		89		11			12	%
Total		$788		$974		$942		$908		$648		$140		22	%		$3,612		$3,694		($82	)	(2	%)

TRANSACTIONS PROCESSED ON NETWORKS
Discover Network	546		519		512		456		523		23			4	%	2,033		2,020		13			1	%
PULSE Network	905		972		989		1,024		1,085		(180		)	(17	%)	3,890		4,283		(393		)	(9	%)
Total	1,451		1,491		1,501		1,480		1,608		(157		)	(10	%)	5,923		6,303		(380		)	(6	%)

NETWORK VOLUME
PULSE Network		$35,902		$36,267		$37,162		$40,814		$41,788		($5,886	)	(14	%)		$150,145		$165,851		($15,706	)	(9	%)
Network Partners	3,274		3,206		3,536		2,949		2,263		1,011			45	%	12,965		9,446		3,519			37	%
Diners Club International¹	6,760		6,560		6,773		6,474		6,933		(173		)	(2	%)	26,567		26,970		(403		)	(1	%)
Total Payment Services	45,936		46,033		47,471		50,237		50,984		(5,048		)	(10	%)	189,677		202,267		(12,590		)	(6	%)
Discover Network - Proprietary	32,910		31,408		31,084		27,324		32,005		905			3	%	122,726		119,471		3,255			3	%
Total		$78,846		$77,441		$78,555		$77,561		$82,989		($4,143	)	(5	%)		$312,403		$321,738		($9,335	)	(3	%)


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
Note: See Glossary of Financial Terms for definitions of financial terms



DISCOVER FINANCIAL SERVICES
BALANCE SHEET SUMMARY
(unaudited, in millions)
	Quarter Ended
	Dec 31, 2015			Sep 30, 2015			Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Dec 31, 2015 vs. Dec 31, 2014
BALANCE SHEET SUMMARY
Assets
Cash and Investment Securities		$12,755			$13,650			$14,050			$14,701			$11,339			$1,416		12	%
Total Loan Receivables	72,385			70,078			69,028			67,648			69,969			2,416			3	%
Allowance for Loan Losses	(1,869		)	(1,743		)	(1,735		)	(1,776		)	(1,746		)	(123		)	(7	%)
Net Loan Receivables	70,516			68,335			67,293			65,872			68,223			2,293			3	%
Premises and Equipment, net	693			684			688			678			670			23			3	%
Goodwill and Intangible Assets, net	423			424			425			432			433			(10		)	(2	%)
Other Assets	2,549			2,518			2,455			2,495			2,461			88			4	%
Total Assets		$86,936			$85,611			$84,911			$84,178			$83,126			$3,810		5	%

Liabilities & Stockholders' Equity
Direct to Consumer and Affinity Deposits		$30,866			$29,801			$29,498			$29,303			$28,766			$2,100		7	%
Brokered Deposits and Other Deposits	16,728			16,804			16,818			17,124			17,323			(595		)	(3	%)
Deposits	47,594			46,605			46,316			46,427			46,089			1,505			3	%
Borrowings	24,724			23,800			24,243			23,090			22,657			2,067			9	%
Accrued Expenses and Other Liabilities	3,343			3,903			3,089			3,450			3,246			97			3	%
Total Liabilities	75,661			74,308			73,648			72,967			71,992			3,669			5	%
Total Equity	11,275			11,303			11,263			11,211			11,134			141			1	%
Total Liabilities and Stockholders' Equity		$86,936			$85,611			$84,911			$84,178			$83,126			$3,810		5	%

LIQUIDITY
Liquidity Portfolio		$12,077			$12,354			$12,781			$14,162			$10,752			$1,325		12	%
Undrawn Credit Facilities ¹	30,682			31,008			25,029			24,340			23,524			7,158			30	%
Total Liquidity		$42,759			$43,362			$37,810			$38,502			$34,276			$8,483		25	%


¹ Excludes investments pledged to the Federal Reserve, which is included within the liquidity portfolio

Note: See Glossary of Financial Terms for definitions of financial terms



DISCOVER FINANCIAL SERVICES
BALANCE SHEET STATISTICS
(unaudited, in millions)
	Quarter Ended
	Dec 31, 2015			Sep 30, 2015			Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Dec 31, 2015 vs. Dec 31, 2014
BALANCE SHEET STATISTICS
Total Common Equity		$10,715			$10,743			$10,703			$10,651			$10,574			$141	1	%
Total Common Equity/Total Assets	12.3		%	12.5		%	12.6		%	12.7		%	12.7		%
Total Common Equity/Net Loans	15.2		%	15.7		%	15.9		%	16.2		%	15.5		%

Tangible Assets		$86,513			$85,187			$84,486			$83,746			$82,693			$3,820	5	%
Tangible Common Equity ¹		$10,292			$10,319			$10,278			$10,219			$10,141			$151	1	%
Tangible Common Equity/Tangible Assets ¹	11.9		%	12.1		%	12.2		%	12.2		%	12.3		%
Tangible Common Equity/Net Loans ¹	14.6		%	15.1		%	15.3		%	15.5		%	14.9		%
Tangible Common Equity per share¹		$24.41			$24.02			$23.50			$22.99			$22.58			$1.83	8	%

REGULATORY CAPITAL RATIOS	Basel III Transition						Basel I
Total Risk Based Capital Ratio ²	16.5		%	17.1		%	17.2		%	17.6		%	17.0		%
Tier 1 Risk Based Capital Ratio ²	14.7		%	15.2		%	15.3		%	15.6		%	14.9		%
Tier 1 Common Capital Ratio ^2,3	N/A			N/A			N/A			N/A			14.1		%
Tier 1 Leverage Ratio ²	12.9		%	13.1		%	13.2		%	13.3		%	13.2		%
Common Equity Tier 1 Capital Ratio ²	13.9		%	14.4		%	14.5		%	14.8		%	N/A
	Basel III Fully Phased-in
Common Equity Tier 1 Capital Ratio ⁴	13.9		%	14.3		%	14.4		%	14.7		%	14.1		%

RATIO OF EARNINGS TO FIXED CHARGES
Ratio of Earnings to Fixed Charges ⁵	3.9			4.0			4.0			4.1			4.3

¹ Tangible Common Equity ("TCE") is a non-GAAP measure. The Company believes TCE is a more meaningful measure 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 non-GAAP Data schedule

²As of January 1, 2015 regulatory capital ratios are calculated under Basel III rules subject to transition provisions. The Company reported under Basel I at December 31, 2014

³ Tier 1 Common Capital Ratio (under Basel I) is calculated using tier 1 common capital, a non-GAAP measure. The Company believes the tier 1 common capital ratio is meaningful to investors to assess the quality and composition of the Company’s capital. For corresponding reconciliation of tier 1 common capital to a GAAP financial measure see Reconciliation of GAAP to non-GAAP Data schedule

⁴ Common Equity Tier 1 Capital Ratio (Basel III fully phased-in) is calculated using Basel III fully phased-in common equity tier 1 capital, a non-GAAP measure. The Company believes that the common equity tier 1 capital ratio based on fully phased-in Basel III rules is an important complement to the existing capital ratios and for comparability to other financial institutions. For the corresponding reconciliation of common equity tier 1 capital and risk weighted assets calculated under fully phased-in Basel III rules to common equity tier 1 capital and risk weighted assets calculated under Basel III transition rules see the Reconciliation of GAAP to non-GAAP data schedule

⁵ Fixed charges are the sum of interest expense, amortized premiums, discounts and capitalized expenses related to indebtedness and an estimate of interest within rental expense

Note: See Glossary of Financial Terms for definitions of financial terms



DISCOVER FINANCIAL SERVICES
AVERAGE BALANCE SHEET
(unaudited, in millions)
	Quarter Ended
	Dec 31, 2015			Sep 30, 2015			Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Dec 31, 2015 vs. Dec 31, 2014
AVERAGE BALANCES
Assets
Cash and Investment Securities		$12,881			$12,609			$13,219			$12,148			$11,886			$995		8	%
Restricted Cash	529			703			686			605			242			287			119	%
Credit Card Loans	56,050			55,281			53,987			54,038			54,169			1,881			3	%
Private Student Loans	8,732			8,580			8,597			8,721			8,478			254			3	%
Personal Loans	5,488			5,307			5,131			5,047			4,954			534			11	%
Other Loans	233			294			385			342			329			(96		)	(29	%)
Total Loans	70,503			69,462			68,100			68,148			67,930			2,573			4	%
Total Interest Earning Assets	83,913			82,774			82,005			80,901			80,058			3,855			5	%
Allowance for Loan Losses	(1,794		)	(1,776		)	(1,807		)	(1,753		)	(1,676		)	(118		)	(7	%)
Other Assets	4,499			4,474			4,466			4,439			4,303			196			5	%
Total Assets		$86,618			$85,472			$84,664			$83,587			$82,685			$3,933		5	%

Liabilities and Stockholders' Equity
Direct to Consumer and Affinity Deposits		$30,126			$29,477			$29,194			$28,891			$28,828			$1,298		5	%
Brokered Deposits and Other Deposits	16,570			16,923			16,904			17,096			16,755			(185		)	(1	%)
Total Interest-bearing Deposits	46,696			46,400			46,098			45,987			45,583			1,113			2	%
Short-term Borrowings	—			60			153			126			107			(107		)	(100	%)
Securitized Borrowings	16,658			16,479			17,351			17,220			17,219			(561		)	(3	%)
Other Long-term Borrowings	7,946			7,446			6,028			5,307			4,950			2,996			61	%
Total Interest-bearing Liabilities	71,300			70,385			69,630			68,640			67,859			3,441			5	%
Other Liabilities & Stockholders' Equity	15,318			15,087			15,034			14,947			14,826			492			3	%
Total Liabilities and Stockholders' Equity		$86,618			$85,472			$84,664			$83,587			$82,685			$3,933		5	%

AVERAGE RATES
Assets
Cash and Investment Securities	0.61		%	0.55		%	0.59		%	0.62		%	0.72		%	(11		)	bps
Restricted Cash	0.16		%	0.15		%	0.13		%	0.11		%	0.10		%	6			bps
Credit Card Loans	12.20		%	12.03		%	12.04		%	12.05		%	12.08		%	12			bps
Private Student Loans	6.88		%	6.88		%	6.91		%	6.95		%	6.85		%	3			bps
Personal Loans	11.79		%	12.08		%	12.12		%	12.19		%	12.25		%	(46		)	bps
Other Loans	4.88		%	4.44		%	4.62		%	4.23		%	3.78		%	110			bps
Total Loans	11.49		%	11.37		%	11.35		%	11.37		%	11.40		%	9			bps
Total Interest Earning Assets	9.75		%	9.62		%	9.52		%	9.67		%	9.78		%	(3		)	bps

Liabilities and Stockholders' Equity
Direct to Consumer and Affinity Deposits	1.21		%	1.23		%	1.23		%	1.25		%	1.26		%	(5		)	bps
Brokered Deposits and Other Deposits	1.59		%	1.55		%	1.55		%	1.50		%	1.53		%	6			bps
Total Interest-bearing Deposits	1.35		%	1.34		%	1.35		%	1.34		%	1.36		%	(1		)	bps
Short-term Borrowings	—		%	1.49		%	1.37		%	1.43		%	1.54		%	(154		)	bps
Securitized Borrowings	1.99		%	1.98		%	1.91		%	1.89		%	1.88		%	11			bps
Other Long-term Borrowings	4.30		%	4.42		%	4.90		%	5.11		%	5.09		%	(79		)	bps
Total Interest-bearing Liabilities	1.83		%	1.82		%	1.80		%	1.77		%	1.77		%	6			bps

Net Interest Margin	9.75		%	9.62		%	9.63		%	9.69		%	9.76		%	(1		)	bps
Net Yield on Interest-earning Assets	8.19		%	8.08		%	8.00		%	8.17		%	8.28		%	(9		)	bps


Note: See Glossary of Financial Terms for definitions of financial terms



DISCOVER FINANCIAL SERVICES
LOAN STATISTICS
(unaudited, in millions)
	Quarter Ended																				Twelve Months Ended
	Dec 31, 2015			Sep 30, 2015			Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Dec 31, 2015 vs. Dec 31, 2014					Dec 31, 2015			Dec 31, 2014			2015 vs. 2014
TOTAL LOAN RECEIVABLES
Ending Loans ^{1, 2}		$72,385			$70,078			$69,028			$67,648			$69,969			$2,416		3	%		$72,385			$69,969			$2,416		3	%
Average Loans ^{1, 2}		$70,503			$69,462			$68,100			$68,148			$67,930			$2,573		4	%		$69,061			$65,853			$3,208		5	%

Interest Yield	11.49		%	11.37		%	11.35		%	11.37		%	11.40		%	9			bps		11.40		%	11.40		%	—			bps
Gross Principal Charge-off Rate	2.65		%	2.51		%	2.76		%	2.82		%	2.70		%	(5		)	bps		2.69		%	2.74		%	(5		)	bps
Gross Principal Charge-off Rate excluding PCI Loans³	2.78		%	2.64		%	2.91		%	2.98		%	2.86		%	(8		)	bps		2.82		%	2.91		%	(9		)	bps
Net Principal Charge-off Rate	2.02		%	1.85		%	2.05		%	2.14		%	2.06		%	(4		)	bps		2.01		%	2.04		%	(3		)	bps
Net Principal Charge-off Rate excluding PCI Loans ³	2.11		%	1.94		%	2.16		%	2.26		%	2.18		%	(7		)	bps		2.12		%	2.17		%	(5		)	bps
Delinquency Rate (over 30 days) excluding PCI Loans ³	1.67		%	1.60		%	1.49		%	1.57		%	1.66		%	1			bps		1.67		%	1.66		%	1			bps
Delinquency Rate (over 90 days) excluding PCI Loans ³	0.76		%	0.72		%	0.69		%	0.78		%	0.78		%	(2		)	bps		0.76		%	0.78		%	(2		)	bps
Gross Principal Charge-off Dollars		$472			$440			$469			$474			$463			$9		2	%		$1,855			$1,806			$49		3	%
Net Principal Charge-off Dollars		$358			$324			$347			$360			$355			$3		1	%		$1,389			$1,345			$44		3	%
Net Interest and Fee Charge-off Dollars		$86			$81			$87			$95			$91			($5	)	(5	%)		$349			$352			($2	)	(1	%)
Loans Delinquent Over 30 Days ³		$1,153			$1,070			$980			$1,006			$1,100			$53		5	%		$1,153			$1,100			$53		5	%
Loans Delinquent Over 90 Days ³		$530			$481			$450			$500			$517			$13		3	%		$530			$517			$13		3	%

Allowance for Loan Loss (period end)		$1,869			$1,743			$1,735			$1,776			$1,746			$123		7	%		$1,869			$1,746			$123		7	%
Change in Loan Loss Reserves		$126			$8			($41	)		$30			$102			$24		24	%		$123			$98			$25		26	%
Reserve Rate	2.58		%	2.49		%	2.51		%	2.63		%	2.50		%	8			bps		2.58		%	2.50		%	8			bps
Reserve Rate Excluding PCI Loans ³	2.65		%	2.57		%	2.60		%	2.72		%	2.59		%	6			bps		2.65		%	2.59		%	6			bps

CREDIT CARD LOANS
Ending Loans		$57,896			$55,655			$54,949			$53,499			$56,128			$1,768		3	%		$57,896			$56,128			$1,768		3	%
Average Loans		$56,050			$55,281			$53,987			$54,038			$54,169			$1,881		3	%		$54,846			$52,600			$2,246		4	%

Interest Yield	12.20		%	12.03		%	12.04		%	12.05		%	12.08		%	12			bps		12.08		%	12.09		%	(1		)	bps
Gross Principal Charge-off Rate	2.94		%	2.83		%	3.14		%	3.21		%	3.03		%	(9		)	bps		3.03		%	3.11		%	(8		)	bps
Net Principal Charge-off Rate	2.18		%	2.04		%	2.28		%	2.40		%	2.26		%	(8		)	bps		2.22		%	2.27		%	(5		)	bps
Delinquency Rate (over 30 days)	1.72		%	1.65		%	1.55		%	1.64		%	1.73		%	(1		)	bps		1.72		%	1.73		%	(1		)	bps
Delinquency Rate (over 90 days)	0.85		%	0.78		%	0.75		%	0.86		%	0.85		%	—			bps		0.85		%	0.85		%	—			bps
Gross Principal Charge-off Dollars		$415			$394			$423			$428			$413			$2		0	%		$1,660			$1,636			$24		1	%
Net Principal Charge-off Dollars		$309			$285			$307			$319			$309			$—		0	%		$1,220			$1,191			$29		2	%
Loans Delinquent Over 30 Days		$995			$919			$850			$879			$971			$24		2	%		$995			$971			$24		2	%
Loans Delinquent Over 90 Days		$490			$437			$414			$458			$480			$10		2	%		$490			$480			$10		2	%

Allowance for Loan Loss (period end)		$1,554			$1,459			$1,441			$1,492			$1,474			$80		5	%		$1,554			$1,474			$80		5	%
Change in Loan Loss Reserves		$95			$18			($51	)		$18			$86			$9		10	%		$80			$68			$12		18	%
Reserve Rate	2.68		%	2.62		%	2.62		%	2.79		%	2.63		%	5			bps		2.68		%	2.63		%	5			bps

Total Discover Card Volume		$33,830			$32,971			$32,299			$28,725			$33,211			$619		2	%		$127,825			$125,111			$2,714		2	%
Discover Card Sales Volume		$31,672			$30,374			$30,017			$26,379			$30,871			$801		3	%		$118,442			$115,518			$2,924		3	%
Rewards Rate	1.18		%	1.07		%	1.05		%	1.02		%	1.67		%	(49		)	bps		1.08		%	1.17		%	(9		)	bps
¹Total Loans includes mortgages and other loans

² Purchased Credit Impaired ("PCI") loans are loans that were acquired in which a deterioration in credit quality occurred between the origination date and the acquisition date. These loans were initially recorded at fair value and accrete interest income over the estimated lives of the loans as long as cash flows are reasonably estimable, even if the loans are contractually past due. PCI loans are private student loans and are included in total loan receivables

³ Excludes PCI loans (described above) which are accounted for on a pooled basis. Since a pool is accounted for as a single asset with a single composite interest rate and aggregate expectation of cash flows, the past-due status of a pool, or that of the individual loans within a pool, is not meaningful. Because the Company is recognizing interest income on a pool of loans, it is all considered to be performing

Note: See Glossary of Financial Terms for definitions of financial terms



DISCOVER FINANCIAL SERVICES
LOAN STATISTICS
(unaudited, in millions)
	Quarter Ended																				Twelve Months Ended
	Dec 31, 2015			Sep 30, 2015			Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Dec 31, 2015 vs. Dec 31, 2014					Dec 31, 2015			Dec 31, 2014			2015 vs. 2014
PRIVATE STUDENT LOANS
Ending Loans		$8,763			$8,769			$8,520			$8,696			$8,510			$253		3	%		$8,763			$8,510			$253		3	%
Ending PCI Loans ¹		$3,116			$3,249			$3,381			$3,519			$3,660			($544	)	(15	%)		$3,116			$3,660			($544	)	(15	%)

Interest Yield	6.88		%	6.88		%	6.91		%	6.95		%	6.85		%	3			bps		6.90		%	6.84		%	6			bps
Net Principal Charge-off Rate	0.82		%	0.57		%	0.61		%	0.61		%	0.79		%	3			bps		0.65		%	0.69		%	(4		)	bps
Net Principal Charge-off Rate excluding PCI Loans²	1.30		%	0.94		%	1.02		%	1.03		%	1.40		%	(10		)	bps		1.07		%	1.29		%	(22		)	bps
Delinquency Rate (over 30 days) excluding PCI Loans ²	1.91		%	1.88		%	1.78		%	1.66		%	1.80		%	11			bps		1.91		%	1.80		%	11			bps

Reserve Rate	1.63		%	1.48		%	1.68		%	1.63		%	1.59		%	4			bps		1.63		%	1.59		%	4			bps
Reserve Rate excluding PCI Loans ²	1.88		%	1.84		%	2.23		%	2.18		%	2.20		%	(32		)	bps		1.88		%	2.20		%	(32		)	bps

PERSONAL LOANS
Ending Loans		$5,490			$5,425			$5,183			$5,065			$5,007			$483		10	%		$5,490			$5,007			$483		10	%

Interest Yield	11.79		%	12.08		%	12.12		%	12.19		%	12.25		%	(46		)	bps		12.04		%	12.36		%	(32		)	bps
Net Principal Charge-off Rate	2.28		%	1.99		%	2.10		%	2.22		%	2.20		%	8			bps		2.15		%	2.04		%	11			bps
Delinquency Rate (over 30 days)	0.89		%	0.80		%	0.71		%	0.76		%	0.79		%	10			bps		0.89		%	0.79		%	10			bps

Reserve Rate	2.82		%	2.49		%	2.54		%	2.43		%	2.40		%	42			bps		2.82		%	2.40		%	42			bps


¹ Purchased Credit Impaired ("PCI") loans are loans that were acquired in which a deterioration in credit quality occurred between the origination date and the acquisition date. These loans were initially recorded at fair value and accrete interest income over the estimated lives of the loans as long as cash flows are reasonably estimable, even if the loans are contractually past due. PCI loans are private student loans and are included in total loan receivables

² Excludes PCI loans (described above) which are accounted for on a pooled basis. Since a pool is accounted for as a single asset with a single composite interest rate and aggregate expectation of cash flows, the past-due status of a pool, or that of the individual loans within a pool, is not meaningful. Because the Company is recognizing interest income on a pool of loans, it is all considered to be performing

Note: See Glossary of Financial Terms for definitions of financial terms



DISCOVER FINANCIAL SERVICES
SEGMENT RESULTS
(unaudited, in millions)
	Quarter Ended																				Twelve Months Ended
	Dec 31, 2015			Sep 30, 2015			Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Dec 31, 2015 vs. Dec 31, 2014					Dec 31, 2015			Dec 31, 2014			2015 vs. 2014
DIRECT BANKING
Interest Income		$2,061			$2,008			$1,947			$1,929			$1,974			$87		4	%		$7,945			$7,596			$349		5	%
Interest Expense	329			323			311			300			302			27			9	%	1,263			1,134			129			11	%
Net Interest Income	1,732			1,685			1,636			1,629			1,672			60			4	%	6,682			6,462			220			3	%
Other Income	408			435			468			468			286			122			43	%	1,779			1,700			79			5	%
Revenue Net of Interest Expense	2,140			2,120			2,104			2,097			1,958			182			9	%	8,461			8,162			299			4	%
Provision for Loan Losses	486			332			306			388			454			32			7	%	1,512			1,440			72			5	%
Total Other Expense	887			838			884			828			858			29			3	%	3,437			3,117			320			10	%
Income Before Income Taxes		$767			$950			$914			$881			$646			$121		19	%		$3,512			$3,605			($93	)	(3	%)

Net Interest Margin	9.75		%	9.63		%	9.63		%	9.70		%	9.77		%	(2		)	bps		9.68		%	9.82		%	(14		)	bps
Pretax Return on Loan Receivables	4.32		%	5.43		%	5.38		%	5.24		%	3.78		%	54			bps		5.09		%	5.48		%	(39		)	bps

PAYMENT SERVICES
Interest Income		$—			$—			$—			$—			$—			$—		NM			$—			$—			$—		NM
Interest Expense	—			—			—			—			—			—			NM		—			—			—			NM
Net Interest Income	—			—			—			—			—			—			NM		—			—			—			NM
Other Income	65			68			71			74			79			(14		)	(18	%)	278			315			(37		)	(12	%)
Revenue Net of Interest Expense	65			68			71			74			79			(14		)	(18	%)	278			315			(37		)	(12	%)
Provision for Loan Losses	(2		)	—			—			2			3			(5		)	(167%)		—			3			(3		)	(100	%)
Total Other Expense	46			44			43			45			74			(28		)	(38	%)	178			223			(45		)	(20	%)
Income Before Income Taxes		$21			$24			$28			$27			$2			$19		NM			$100			$89			$11		12	%

Note: See Glossary of Financial Terms for definitions of financial terms

DISCOVER FINANCIAL SERVICES

GLOSSARY OF FINANCIAL TERMS

Book Value per share represents total equity divided by ending common shares outstanding

Common Equity Tier 1 Capital Ratio (Basel III transition) represents common equity tier 1 capital divided by risk weighted assets calculated under Basel III rules subject to transition provisions

Common Equity Tier 1 Capital Ratio (Basel III fully phased-in) represents fully phased-in common equity tier 1 capital divided by risk weighted assets under fully phased-in Basel III rules. The Common Equity Tier 1 Capital Ratio (Basel III fully phased-in) is calculated using Basel III fully phased-in common equity tier 1 capital, a non-GAAP measure. The Company believes that the common equity tier 1 capital ratio based on fully phased-in Basel III rules is an important complement to the existing capital ratios and for comparability to other financial institutions. For the corresponding reconciliation of common equity tier 1 capital and risk weighted assets calculated under fully phased-in Basel III rules to common equity tier 1 capital and risk weighted assets calculated under Basel III transition rules see the Reconciliation of GAAP to non-GAAP data schedule

Delinquency Rate (Over 30 Days) represents loans delinquent over thirty days divided by ending loans (total or respective loans, as appropriate)

Delinquency Rate (Over 90 Days) represents loans delinquent over ninety days divided

Discover card sales volume represents Discover card activity related to net sales

Discover card volume represents Discover card activity related to net sales, balance transfers, cash advances and other activity

Discover Network proprietary volume represents gross proprietary sales volume on the Discover Network

Delinquency Rate (Over 90 Days) represents loans delinquent over ninety days divided by ending loans (total or respective loans, as appropriate)

Earnings Per Share represents net income allocated to common stockholders divided by the weighted average common shares outstanding

Effective Tax Rate represents tax expense divided by income before income taxes

Gross Principal Charge-off Rate represents gross principal charge-off dollars (annualized) divided by average loans for the reporting period

Interest Yield represents interest income on loan receivables (annualized) divided by average loans for the reporting period

Liquidity Portfolio represents cash and cash equivalents (excluding cash-in-process) and other investments

Net Income Allocated to Common Stockholders represents net income less (i) dividends and accretion of discount on shares of preferred stock and (ii) income allocated to participating securities

Net Interest Margin represents net interest income (annualized) divided by average total loans for the period.

Net Principal Charge-off Rate represents net principal charge-off dollars (annualized) divided by average loans for the reporting period

Operating Efficiency represents total other expense divided by revenue net of interest expense

Pretax Return on Loan Receivables represents income before income taxes (annualized) divided by total average loans for the period

Proprietary Network Volume represents gross proprietary sales volume on the Discover Network

Ratio of Earnings to Fixed Charges represents income before income tax expense and fixed charges divided by fixed charges for the reporting period. Fixed charges are the sum of interest expense, amortized premiums, discounts and capitalized expenses related to indebtedness and an estimate of interest within rental expense for the reporting period

Regulatory Capital Ratios are regulatory measures used to evaluate capital adequacy. Under Basel I, to be considered "well-capitalized," total risk-based, tier 1 risk-based, and tier 1 leverage ratios of 10%, 6% and 5% respectively must be maintained. Under Basel III, to be considered "well-capitalized," total risk-based, tier 1 risk-based, tier 1 leverage, and common equity tier 1 ratios of 10%, 8%, 5%, and 6.5% respectively must be maintained. As of January 1, 2015 regulatory capital ratios are calculated under Basel III rules subject to transition provisions. Prior to January 1, 2015 regulatory capital ratios are calculated under Basel I. Total Risk Based Capital Ratio represents total capital divided by risk-weighted assets. Tier 1 Capital Ratio represents tier 1 capital divided by risk-weighted assets. Tier 1 Leverage Ratio represents tier 1 capital divided by average total assets. The Tier 1 Common Capital Ratio has been replaced by the Common Equity Tier 1 Ratio under Basel III. Tier 1 Common Capital Ratio calculated under Basel I represents tier 1 common capital, a non-GAAP measure, divided by risk-weighted assets. For corresponding reconciliation of tier 1 common capital (Basel I) to a GAAP financial measure, see Reconciliation of GAAP to Non-GAAP Data schedule

Reserve Rate represents the allowance for loan losses divided by total loans

Return on Equity represents net income (annualized) divided by average total equity for the reporting period

Rewards Rate represents rewards cost divided by Discover Card sales volume

Tangible Assets represents total assets less goodwill and intangibles

Tangible Common Equity ("TCE"), a non-GAAP financial measure, represents total common equity less goodwill and intangibles. The Company believes TCE is a more meaningful measure 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 Non-GAAP Data schedule

Tangible Common Equity/Net Loans, a non-GAAP measure, represents total common equity less goodwill and intangibles divided by total loans less the allowance for loan loss (period end)

Tangible Common Equity per Share, a non-GAAP measure, represents total common equity less goodwill and intangibles divided by ending common shares outstanding

Tangible Common Equity/Tangible Assets, a non-GAAP measure, represents total common equity less goodwill and intangibles divided by total assets less goodwill and intangibles

Total Volume represents the transaction dollar volume from the PULSE network, Network Partners, Diners Club and proprietary Discover Network

Undrawn Credit Facilities represents asset-backed conduit funding facilities and Federal Reserve discount window (excluding investments pledged to the Federal Reserve, which are included within the liquidity investment portfolio)



DISCOVER FINANCIAL SERVICES
RECONCILIATION OF GAAP TO NON-GAAP DATA
(unaudited, in millions)
	Quarter Ended
	Dec 31, 2015			Sep 30, 2015			Jun 30, 2015			Mar 31, 2015			Dec 31, 2014
GAAP total common equity		$10,715			$10,743			$10,703			$10,651			$10,574
Less: Goodwill	(255		)	(255		)	(255		)	(257		)	(257		)
Less: Intangibles	(168		)	(169		)	(170		)	(175		)	(176		)
Tangible common equity ¹		$10,292			$10,319			$10,278			$10,219			$10,141
Effect of certain items in accumulated other comprehensive income (loss) excluded from tier 1 common capital													138
Total tier 1 common capital (Basel I) ²														$10,279
Add: Adjustments related to capital components ³													26
Common equity Tier 1 capital (Basel III fully phased-in)														$10,305

Common equity Tier 1 capital (Basel III transition)		$10,566			$10,612			$10,552			$10,497
Adjustments related to capital components during transition ⁴	(82		)	(82		)	(83		)	(87		)
Common equity Tier 1 capital (Basel III fully phased-in)		$10,484			$10,530			$10,469			$10,410

Risk weighted assets (Basel I)	N/A			N/A			N/A			N/A				$72,889
Risk weighted assets (Basel III transition)		$75,787			$73,526			$72,658			$70,868		N/A
Risk weighted assets (Basel III fully phased-in) ⁵		$75,685			$73,423			$72,555			$70,762			$73,315

Tier 1 common capital ratio (Basel I) ^6,7	N/A			N/A			N/A			N/A			14.1		%
Common equity Tier 1 capital ratio (Basel III transition) ⁶	13.9		%	14.4		%	14.5		%	14.8		%	N/A
Common equity Tier 1 capital ratio (Basel III fully phased-in) ^6,8	13.9		%	14.3		%	14.4		%	14.7		%	14.1		%

GAAP book value per share		$26.74			$26.32			$25.75			$25.22			$24.79
Less: Goodwill	(0.60		)	(0.60		)	(0.58		)	(0.58		)	(0.57		)
Less: Intangibles	(0.40		)	(0.40		)	(0.39		)	(0.39		)	(0.39		)
Less: Preferred Stock	(1.33		)	(1.30		)	(1.28		)	(1.26		)	(1.25		)
Tangible common equity per share		$24.41			$24.02			$23.50			$22.99			$22.58

1 Tangible common equity ("TCE"), a non-GAAP financial measure, represents common equity less goodwill and intangibles. A reconciliation of TCE to common equity, a GAAP financial measure, is shown above. Other financial services companies may also use TCE and definitions may vary, so users of this information are advised to exercise caution in comparing TCE of different companies. TCE is included because management believes that common equity excluding goodwill and intangibles is a more meaningful measure to investors of the true net asset value of the Company

2 Tier 1 common capital (under Basel I), a non-GAAP financial measure, represents common equity and the effect of certain items in accumulated other comprehensive income (loss) excluded from tier 1 common capital, less goodwill and intangibles. A reconciliation of tier 1 common capital to common equity, a GAAP financial measure, is shown above. Other financial services companies may also use tier 1 common capital and definitions may vary, so users of this information are advised to exercise caution in comparing tier 1 common capital of different companies. Tier 1 common capital is included to support the tier 1 common capital ratio which is meaningful to investors to assess the quality and composition of the Company’s capital

3 Adjustments related to capital components for fully phased-in Basel III include deferred tax liabilities related to intangible assets and deduction for deferred tax assets

4 Adjustments related to capital components for fully phased-in Basel III include the phase-in of the intangible asset exclusion

5 Key differences under fully phased-in Basel III rules in the calculation of risk-weighted assets include higher risk weighting for past due loans and unfunded commitments

6 As of January 1, 2015 regulatory capital ratios are calculated under Basel III rules subject to transition provisions. The Company reported under Basel I at December 31, 2014

7 Tier 1 common capital ratio is calculated using tier 1 common capital (Basel I), a non-GAAP measure, divided by risk weighted assets (Basel I)

8 Common equity tier 1 capital ratio (Basel III fully phased-in) is calculated using common equity tier 1 capital (Basel III fully phased-in), a non-GAAP measure, divided by risk weighted assets (Basel III fully phased-in)

Note: See Glossary of Financial Terms for definitions of financial terms