Discover Financial Services 8K And Earnings Per Share of $.50 | DFS 19 Mar 08

Exhibit 99.2

Discover Financial Services
GAAP Basis
(unaudited, dollars in thousands, except per
share statistics)	Quarter Ended															Feb 29, 2008
	Feb 29, 2008			Nov 30, 2007 3			Aug 31, 2007 3			May 31, 2007 3			Feb 28, 2007 3			vs Feb 28, 2007

Earnings Summary
Interest Income	$	662,802		$	659,676		$	674,864		$	637,656		$	612,206		$	50,596			8	%
Interest Expense		339,441			350,917			317,124			303,422			251,807			87,634			35	%
Net Interest Income		323,361			308,759			357,740			334,234			360,399			(37,038	)		(10	%)
Other Income		975,544			952,500			804,047			829,786			790,349			185,195			23	%
Revenue Net of Interest Expense		1,298,905			1,261,259			1,161,787			1,164,020			1,150,748			148,157			13	%
Provision for Loan Losses		305,632			296,187			145,827			144,676			147,198			158,434			108	%
Employee Compensation and Benefits		217,370			208,910			210,541			215,447			215,167			2,203			1	%
Marketing and Business Development		141,553			155,976			153,786			131,959			134,542			7,011			5	%
Information Processing & Communications		78,276			85,034			83,779			82,396			78,844			(568	)		(1	%)
Professional Fees		73,672			94,380			88,111			102,853			76,065			(2,393	)		(3	%)
Premises and Equipment		19,641			19,348			19,962			20,557			19,575			66			0	%
Other Expense		71,831			73,082			69,705			70,546			67,648			4,183			6	%
Total Other Expense		602,343			636,730			625,884			623,758			591,841			10,502			2	%
Income (Loss) Before Income Taxes		390,930			328,342			390,076			395,586			411,709			(20,779	)		(5	%)
Tax Expense		152,101			118,368			145,925			145,330			151,891			210			0	%
Net Income From Continuing Operations		238,829			209,974			244,151			250,256			259,818			(20,989	)		(8	%)
Discontinued Operations, Net of Tax 1, 2		(157,615	)		(266,458	)		(41,911	)		(41,014	)		(26,186	)		(131,429	)	NM
Net Income (Loss) 1, 2	$	81,214		$	(56,484	)	$	202,240		$	209,242		$	233,632		$	(152,418	)		(65	%)

Effective Tax Rate From Continuing Operations		38.9	%		36.1	%		37.4	%		36.7	%		36.9	%

Balance Sheet Statistics 4
Loan Receivables	$	21,042,681		$	20,831,117		$	19,170,450		$	19,938,986		$	19,727,837		$	1,314,844			7	%
Total Assets	$	34,222,732		$	33,449,702		$	31,683,866		$	32,264,467		$	26,373,020		$	7,849,712			30	%
Total Equity	$	5,654,341		$	5,599,422		$	5,667,282		$	5,780,284		$	5,528,658		$	125,683			2	%
Total Tangible Equity	$	5,341,020		$	5,284,232		$	5,350,377		$	5,461,713		$	5,213,439		$	127,581			2	%
Tangible Equity/Total Owned Assets		15.6	%		15.8	%		16.9	%		16.9	%		19.8	%
ROE 1,2		6	%		(4	%)		14	%		15	%		16	%
ROE from Continuing Operations		17	%		15	%		17	%		18	%		18	%

Allowance for Loan Loss (period end)	$	860,378		$	759,925		$	629,458		$	644,701		$	663,172		$	197,206			30	%
Change in Loan Loss Reserves	$	100,453		$	130,467		$	(15,243	)	$	(18,471	)	$	(40,744	)	$	141,197		NM
Interest-only Strip Receivable (period end)	$	468,059		$	400,313		$	353,091		$	372,421		$	330,530		$	137,529			42	%
Net Revaluation of Retained Interests	$	74,997		$	37,475		$	(23,905	)	$	36,354		$	1,421		$	73,576		NM

Per Share Statistics
Basic EPS 1, 2	$	0.17		$	(0.12	)	$	0.42		$	0.44		$	0.49		$	(0.32	)		(65	%)
Basic EPS from Continuing Operations	$	0.50		$	0.44		$	0.51		$	0.52		$	0.54		$	(0.04	)		(7	%)
Diluted EPS 1, 2, 5	$	0.17		$	(0.12	)	$	0.42		$	0.44		$	0.49		$	(0.32	)		(65	%)
Diluted EPS from Continuing Operations 5	$	0.50		$	0.44		$	0.51		$	0.52		$	0.54		$	(0.04	)		(7	%)
Stock Price (period end)	$	15.09		$	17.37		$	23.14
Book Value	$	11.80		$	11.72		$	11.87
Ending Shares Outstanding (000's) 5		479,127			477,688			477,328			477,236			477,236			1,891			0	%
Weighted Average Shares Outstanding (000's) 5		478,518			477,567			477,272			477,236			477,236			1,282			0	%
Weighted Average Shares Outstanding (fully diluted) (000's) 5		481,744			477,567			480,071			477,236			477,236			4,508			1	%

Credit Card Loans 4
Credit Card Loans - Owned	$	20,556,810		$	20,579,923		$	19,078,441		$	19,849,401		$	19,636,991		$	919,819			5	%
Average Credit Card Loans - Owned	$	21,148,252		$	19,276,203		$	19,722,180		$	18,581,153		$	21,841,166		$	(692,914	)		(3	%)

Interest Yield		10.35	%		10.53	%		11.22	%		10.72	%		10.55	%		(20	)	bps
Net Principal Charge-off Rate 6		3.90	%		3.44	%		3.24	%		3.48	%		3.48	%		42		bps
Delinquency Rate (over 30 days)		3.69	%		3.28	%		2.80	%		2.71	%		2.97	%		72		bps
Delinquency Rate (over 90 days)		1.86	%		1.53	%		1.31	%		1.31	%		1.46	%		40		bps

Transactions Processed on Networks (000's)
Discover Network		378,912			378,438			384,335			361,893			361,700			17,212			5	%
PULSE Network		621,072			611,518			593,866			558,811			520,866			100,206			19	%
Total		999,984			989,956			978,201			920,704			882,566			117,418			13	%

Network Volume
PULSE Network	$	24,783,895		$	23,035,361		$	22,372,106		$	20,799,365		$	20,029,576		$	4,754,319			24	%
Third - Party Issuers		1,545,943			1,458,959			1,492,568			1,313,438			1,215,140			330,803			27	%
Total Third - Party Payments		26,329,838			24,494,320			23,864,674			22,112,803			21,244,716			5,085,122			24	%
U.S. Card		24,074,331			23,482,095			24,411,714			22,975,645			22,925,046			1,149,285			5	%
Total	$	50,404,169		$	47,976,415		$	48,276,388		$	45,088,448		$	44,169,762		$	6,234,407			14	%

1 The quarter ended February 29, 2008 includes a net loss from discontinued operations of $158 million consisting of a $172 million loss related to reflecting the Goldfish business as held for sale and net 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 Certain prior period amounts have been reclassified to conform to the current period presentation.

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

5 For all periods prior to the spin off from Morgan Stanley, the same number of shares is being used for diluted EPS as for basic EPS as no common stock of Discover Financial Services was traded prior to July 2, 2007 and no Discover equity awards were outstanding for the prior periods.

6 Charge-off rate calculation has been restated to reflect annualization by days in the year for all periods.

Discover Financial Services
Managed Basis 1
(unaudited, dollars in thousands)
	Quarter Ended															Feb 29, 2008
	Feb 29, 2008			Nov 30, 2007 2			Aug 31, 2007 2			May 31, 2007 2			Feb 28, 2007 2			vs Feb 28, 2007

Earnings Summary
Interest Income	$	1,652,615		$	1,667,418		$	1,626,808		$	1,601,882		$	1,482,566		$	170,049			11	%
Interest Expense		668,953			750,638			703,024			693,841			593,625			75,328			13	%
Net Interest Income		983,662			916,780			923,784			908,041			888,941			94,721			11	%
Other Income		636,679			633,014			510,525			555,552			520,685			115,994			22	%
Revenue Net of Interest Expense		1,620,341			1,549,794			1,434,309			1,463,593			1,409,626			210,715			15	%
Provision for Loan Losses		627,068			584,722			418,349			444,249			406,076			220,992			54	%
Employee Compensation and Benefits		217,370			208,910			210,541			215,447			215,167			2,203			1	%
Marketing and Business Development		141,553			155,976			153,786			131,959			134,542			7,011			5	%
Information Processing & Communications		78,276			85,034			83,779			82,396			78,844			(568	)		(1	%)
Professional Fees		73,672			94,380			88,111			102,853			76,065			(2,393	)		(3	%)
Premises and Equipment		19,641			19,348			19,962			20,557			19,575			66			0	%
Other Expense		71,831			73,082			69,705			70,546			67,648			4,183			6	%
Total Other Expense		602,343			636,730			625,884			623,758			591,841			10,502			2	%
Income (Loss) Before Income Taxes		390,930			328,342			390,076			395,586			411,709			(20,779	)		(5	%)
Tax Expense		152,101			118,368			145,925			145,330			151,891			210			0	%
Net Income From Continuing Operations		238,829			209,974			244,151			250,256			259,818			(20,989	)		(8	%)
Discontinued Operations, Net of Tax 3, 4		(157,615	)		(266,458	)		(41,911	)		(41,014	)		(26,186	)		(131,429	)	NM
Net Income (Loss) 3, 4	$	81,214		$	(56,484	)	$	202,240		$	209,242		$	233,632		$	(152,418	)		(65	%)

Balance Sheet Statistics 5
Loan Receivables	$	47,500,410		$	48,180,436		$	47,444,107		$	46,953,902		$	46,356,858		$	1,143,552			2	%
Average Loan Receivables	$	48,863,167		$	47,381,471		$	47,016,472		$	46,296,296		$	46,965,884		$	1,897,283			4	%
Total Assets	$	61,937,501		$	60,591,475		$	59,688,962		$	60,022,064		$	52,722,599		$	9,214,902			17	%
Total Equity 6	$	5,654,341		$	5,599,422		$	5,667,282		$	5,780,284		$	5,528,658		$	125,683			2	%
Total Tangible Equity 6	$	5,341,020		$	5,284,232		$	5,350,377		$	5,461,713		$	5,213,439		$	127,581			2	%
Tangible Equity/Net Managed Receivables		11.5	%		11.1	%		11.4	%		11.8	%		11.4	%		10		bps
Tangible Equity/Total Managed Assets		8.6	%		8.7	%		9.0	%		9.1	%		9.9	%

Net Yield on Loan Receivables		8.10	%		7.76	%		7.80	%		7.78	%		7.68	%		42		bps
Return on Loan Receivables		1.97	%		1.78	%		2.06	%		2.14	%		2.24	%		(27	)	bps

Credit Card Loans 5
Credit Card Loans - Managed	$	47,014,539		$	47,929,242		$	47,352,098		$	46,864,317		$	46,266,012		$	748,527			2	%
Average Credit Card Loans - Managed	$	48,487,812		$	47,251,899		$	46,926,260		$	46,203,924		$	46,870,259		$	1,617,553			3	%

Managed Interest Yield		12.72	%		12.85	%		12.76	%		12.59	%		12.45	%		27		bps
Managed Net Principal Charge-off Rate 7		4.37	%		3.85	%		3.67	%		3.97	%		3.86	%		51		bps
Managed Delinquency Rate (over 30 days)		3.93	%		3.59	%		3.16	%		2.97	%		3.31	%		62		bps
Managed Delinquency Rate (over 90 days)		1.98	%		1.68	%		1.48	%		1.44	%		1.63	%		35		bps

Credit Card Volume	$	26,207,028		$	26,159,776		$	27,171,729		$	26,408,578		$	26,880,735		$	(673,707	)		(3	%)
Credit Card Sales Volume	$	23,155,253		$	22,588,639		$	23,527,999		$	22,108,865		$	22,037,053		$	1,118,200			5	%

Segment - Income Before Income Taxes
U.S. Card	$	375,403		$	320,751		$	380,637		$	387,576		$	399,789		$	(24,386	)		(6	%)
Third - Party Payments		15,527			7,591			9,439			8,010			11,920			3,607			30	%
Total	$	390,930		$	328,342		$	390,076		$	395,586		$	411,709		$	(20,779	)		(5	%)

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 Certain prior period amounts have been reclassified to conform to the current period presentation.

3 The quarter ended February 29, 2008 includes a net loss from discontinued operations of $158 million consisting of a $172 million loss related to reflecting the Goldfish business as held for sale and net income of $14 million related to the Goldfish business operations.

4 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.

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

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

7 Charge-off rate calculation has been restated to reflect annualization by days in the year for all periods.

Discover Financial Services

U.S. Card Segment

Managed Basis1

(unaudited, dollars in thousands)

	Quarter Ended																Feb 29, 2008
	Feb 29, 2008			Nov 30, 2007 2				Aug 31, 2007 2			May 31, 2007 2			Feb 28, 2007 2			vs Feb 28, 2007

Earnings Summary
Interest Income	$	1,651,987		$	1,666,768			$	1,626,214		$	1,601,324		$	1,481,992		$	169,995			11	%
Interest Expense		668,951			750,638				703,024			693,837			593,610			75,341			13	%
Net Interest Income		983,036			916,130				923,190			907,487			888,382			94,654			11	%
Other Income		602,411			603,709				481,060			526,304			490,003			112,408			23	%
Revenue Net of Interest Expense		1,585,447			1,519,839				1,404,250			1,433,791			1,378,385			207,062			15	%
Provision for Loan Losses		627,068			584,722				418,349			444,249			406,076			220,992			54	%
Total Other Expense		582,976			614,366				605,264			601,966			572,520			10,456			2	%
Income Before Income Taxes	$	375,403		$	320,751		��	$	380,637		$	387,576		$	399,789		$	(24,386	)		(6	%)

Loan Receivables	$	47,500,410		$	48,180,436			$	47,444,107		$	46,953,902		$	46,356,858		$	1,143,552			2	%
Average Loan Receivables	$	48,863,167		$	47,381,471			$	47,016,472		$	46,296,296		$	46,965,884		$	1,897,283			4	%

Net Yield on Loan Receivables		8.09	%		7.76	%			7.79	%		7.78	%		7.67	%		42		bps
Pretax Return on Loan Receivables		3.09	%		2.72	%			3.21	%		3.32	%		3.45	%		(36	)	bps

Credit Card Loans
Credit Card Loans - Managed	$	47,014,539		$	47,929,242			$	47,352,098		$	46,864,317		$	46,266,012		$	748,527			2	%
Average Credit Card Loans - Managed	$	48,487,812		$	47,251,899			$	46,926,260		$	46,203,924		$	46,870,259		$	1,617,553			3	%

Managed Interest Yield		12.72	%		12.85	%			12.76	%		12.59	%		12.45	%		27		bps
Managed Net Principal Charge-off Rate 3		4.37	%		3.85	%			3.67	%		3.97	%		3.86	%		51		bps
Managed Delinquency Rate (over 30 days)		3.93	%		3.59	%			3.16	%		2.97	%		3.31	%		62		bps
Managed Delinquency Rate (over 90 days)		1.98	%		1.68	%			1.48	%		1.44	%		1.63	%		35		bps

Total Credit Card Volume	$	26,207,028		$	26,159,776			$	27,171,729		$	26,408,578		$	26,880,735		$	(673,707	)		(3	%)
Sales Volume	$	23,155,253		$	22,588,639			$	23,527,999		$	22,108,865		$	22,037,053		$	1,118,200			5	%

2 Certain prior period amounts have been reclassified to conform to the current period presentation.

3 Charge-off rate calculation has been restated to reflect annualization by days in the year for all periods.

Discover Financial Services

Third - Party Payments Segment

(unaudited, dollars in thousands)

	Quarter Ended										Feb 29, 2008
	Feb 29, 2008		Nov 30, 2007		Aug 31, 2007		May 31, 2007		Feb 28, 2007		vs Feb 28, 2007

Earnings Summary
Interest Income	$	628	$	650	$	594	$	558	$	574	$	54		9	%
Interest Expense		2		-		-		4		15		(13	)	(87	%)
Net Interest Income		626		650		594		554		559		67		12	%
Other Income		34,268		29,305		29,465		29,248		30,682		3,586		12	%
Revenue Net of Interest Expense		34,894		29,955		30,059		29,802		31,241		3,653		12	%
Provision for Loan Losses		-		-		-		-		-		-		0	%
Total Other Expense		19,367		22,364		20,620		21,792		19,321		46		0	%
Income Before Income Taxes	$	15,527	$	7,591	$	9,439	$	8,010	$	11,920	$	3,607		30	%

Network Volume
PULSE Network	$	24,783,895	$	23,035,361	$	22,372,106	$	20,799,365	$	20,029,576	$	4,754,319		24	%
Third - Party Issuers		1,545,943		1,458,959		1,492,568		1,313,438		1,215,140		330,803		27	%
Total Third - Party Payments	$	26,329,838	$	24,494,320	$	23,864,674	$	22,112,803	$	21,244,716	$	5,085,122		24	%

Transactions Processed on PULSE Network (000's)		621,072		611,518		593,866		558,811		520,866		100,206		19	%

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.

Discover Financial Services

Reconciliation of GAAP to Managed Data 1

(unaudited, dollars in thousands)

	Quarter Ended
	Feb 29, 2008			Nov 30, 2007			Aug 31, 2007			May 31, 2007			Feb 28, 2007

Interest Income
GAAP Basis	$	662,802		$	659,676		$	674,864		$	637,656		$	612,206
Securitization Adjustments 1		989,813			1,007,742			951,944			964,226			870,360
Managed Basis	$	1,652,615		$	1,667,418		$	1,626,808		$	1,601,882		$	1,482,566

Interest Expense
GAAP Basis	$	339,441		$	350,917		$	317,124		$	303,422		$	251,807
Securitization Adjustments		329,512			399,721			385,900			390,419			341,818
Managed Basis	$	668,953		$	750,638		$	703,024		$	693,841		$	593,625

Net Interest Income
GAAP Basis	$	323,361		$	308,759		$	357,740		$	334,234		$	360,399
Securitization Adjustments		660,301			608,021			566,044			573,807			528,542
Managed Basis	$	983,662		$	916,780		$	923,784		$	908,041		$	888,941

Other Income
GAAP Basis	$	975,544		$	952,500		$	804,047		$	829,786		$	790,349
Securitization Adjustments		(338,865	)		(319,486	)		(293,522	)		(274,234	)		(269,664	)
Managed Basis	$	636,679		$	633,014		$	510,525		$	555,552		$	520,685

Revenue Net of Interest Expense
GAAP Basis	$	1,298,905		$	1,261,259		$	1,161,787		$	1,164,020		$	1,150,748
Securitization Adjustments		321,436			288,535			272,522			299,573			258,878
Managed Basis	$	1,620,341		$	1,549,794		$	1,434,309		$	1,463,593		$	1,409,626

Provision for Loan Losses
GAAP Basis	$	305,632		$	296,187		$	145,827		$	144,676		$	147,198
Securitization Adjustments		321,436			288,535			272,522			299,573			258,878
Managed Basis	$	627,068		$	584,722		$	418,349		$	444,249		$	406,076

Loan Receivables
GAAP Basis	$	21,042,681		$	20,831,117		$	19,170,450		$	19,938,986		$	19,727,837
Securitization Adjustments		26,457,729			27,349,319			28,273,657			27,014,916			26,629,021
Managed Basis	$	47,500,410		$	48,180,436		$	47,444,107		$	46,953,902		$	46,356,858

Total Assets
GAAP Basis	$	34,222,732		$	33,449,702		$	31,683,866		$	32,264,467		$	26,373,020
Securitization Adjustments		27,714,769			27,141,773			28,005,096			27,757,597			26,349,579
Managed Basis	$	61,937,501		$	60,591,475		$	59,688,962		$	60,022,064		$	52,722,599

Tangible Equity/Total Assets
GAAP Basis		15.6	%		15.8	%		16.9	%		16.9	%		19.8	%
Securitization Adjustments		19.3	%		19.5	%		19.1	%		19.7	%		19.8	%
Managed Basis		8.6	%		8.7	%		9.0	%		9.1	%		9.9	%


Credit Card Loans
Credit Card Loans
GAAP Basis	$	20,556,810		$	20,579,923		$	19,078,441		$	19,849,401		$	19,636,991
Securitization Adjustments		26,457,729			27,349,319			28,273,657			27,014,916			26,629,021
Managed Basis	$	47,014,539		$	47,929,242		$	47,352,098		$	46,864,317		$	46,266,012

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Reconciliation of GAAP to Managed Data 1

(unaudited, dollars in thousands)

	Quarter Ended
	Feb 29, 2008			Nov 30, 2007			Aug 31, 2007			May 31, 2007			Feb 28, 2007
Average Credit Card Loans
GAAP Basis	$	21,148,252		$	19,276,203		$	19,722,180		$	18,581,153		$	21,841,166
Securitization Adjustments		27,339,560			27,975,696			27,204,080			27,622,771			25,029,093
Managed Basis	$	48,487,812		$	47,251,899		$	46,926,260		$	46,203,924		$	46,870,259

Interest Yield
GAAP Basis		10.35	%		10.53	%		11.22	%		10.72	%		10.55	%
Securitization Adjustments		14.56	%		14.45	%		13.88	%		13.85	%		14.10	%
Managed Basis		12.72	%		12.85	%		12.76	%		12.59	%		12.45	%

Net Principal Charge-off Rate
GAAP Basis		3.90	%		3.44	%		3.24	%		3.48	%		3.48	%
Securitization Adjustments		4.73	%		4.14	%		3.97	%		4.30	%		4.19	%
Managed Basis		4.37	%		3.85	%		3.67	%		3.97	%		3.86	%

Delinquency Rate (over 30 days)
GAAP Basis		3.69	%		3.28	%		2.80	%		2.71	%		2.97	%
Securitization Adjustments		4.11	%		3.82	%		3.40	%		3.16	%		3.56	%
Managed Basis		3.93	%		3.59	%		3.16	%		2.97	%		3.31	%

Delinquency Rate (over 90 days)
GAAP Basis		1.86	%		1.53	%		1.31	%		1.31	%		1.46	%
Securitization Adjustments		2.08	%		1.79	%		1.60	%		1.54	%		1.75	%
Managed Basis		1.98	%		1.68	%		1.48	%		1.44	%		1.63	%

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.

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