Discover Financial Services (DFS) 8-K Net Income of $234 Million and Earnings Per Share of $.48

Exhibit 99.2

Discover Financial Services
GAAP Basis
(unaudited, dollars in thousands, except per share statistics)
	Quarter Ended																					Six Months Ended
	May 31,  2008			Feb 29,  2008			Nov 30,  2007			Aug 31,  2007			May 31,  2007			May 31, 2008 vs May 31, 2007						May 31, 2008			May 31,  2007			2008 vs 2007
Earnings Summary
Interest Income	$	612,063		$	662,802		$	659,676		$	674,864		$	637,656		$	(25,593	)		(4	%)	$	1,274,865		$	1,249,862		$	25,003			2	%
Interest Expense		313,248			339,441			350,917			317,124			303,422			9,826			3	%		652,689			555,229			97,460			18	%
Net Interest Income		298,815			323,361			308,759			357,740			334,234			(35,419	)		(11	%)		622,176			694,633			(72,457	)		(10	%)
Other Income		844,892			975,544			952,500			804,047			829,786			15,106			2	%		1,820,436			1,620,135			200,301			12	%
Revenue Net of Interest Expense		1,143,707			1,298,905			1,261,259			1,161,787			1,164,020			(20,313	)		(2	%)		2,442,612			2,314,768			127,844			6	%
Provision for Loan Losses		210,969			305,632			296,187			145,827			144,676			66,293			46	%		516,601			291,874			224,727			77	%
Employee Compensation and Benefits		218,290			217,370			208,910			210,541			215,447			2,843			1	%		435,660			430,614			5,046			1	%
Marketing and Business Development		132,038			141,553			155,976			153,786			131,959			79			0	%		273,591			266,501			7,090			3	%
Information Processing & Communications		79,449			78,276			85,034			83,779			82,396			(2,947	)		(4	%)		157,725			161,240			(3,515	)		(2	%)
Professional Fees		81,392			73,672			94,380			88,111			102,853			(21,461	)		(21	%)		155,064			178,918			(23,854	)		(13	%)
Premises and Equipment		19,803			19,641			19,348			19,962			20,557			(754	)		(4	%)		39,444			40,132			(688	)		(2	%)
Other Expense		75,853			71,831			73,082			69,705			70,546			5,307			8	%		147,684			138,194			9,490			7	%
Total Other Expense		606,825			602,343			636,730			625,884			623,758			(16,933	)		(3	%)		1,209,168			1,215,599			(6,431	)		(1	%)
Income (Loss) Before Income Taxes		325,913			390,930			328,342			390,076			395,586			(69,673	)		(18	%)		716,843			807,295			(90,452	)		(11	%)
Tax Expense		124,370			152,101			118,368			145,925			145,330			(20,960	)		(14	%)		276,471			297,221			(20,750	)		(7	%)
Income From Continuing Operations		201,543			238,829			209,974			244,151			250,256			(48,713	)		(19	%)		440,372			510,074			(69,702	)		(14	%)
Discontinued Operations, Net of Tax 1, 2		32,605			(157,615	)		(266,458	)		(41,911	)		(41,014	)		73,619			179	%		(125,010	)		(67,200	)		(57,810	)		(86	%)
Net Income (Loss) 1, 2	$	234,148		$	81,214		$	(56,484	)	$	202,240		$	209,242		$	24,906			12	%	$	315,362		$	442,874		$	(127,512	)		(29	%)
Effective Tax Rate From Continuing Operations		38.2	%		38.9	%		36.1	%		37.4	%		36.7	%								38.6	%		36.8	%
Balance Sheet Statistics  3
Total Assets	$	34,020,245		$	34,222,732		$	33,449,702		$	31,683,866		$	32,264,467		$	1,755,778			5	%	$	34,020,245		$	32,264,467		$	1,755,778			5	%
Total Equity	$	5,849,691		$	5,654,341		$	5,599,422		$	5,667,282		$	5,780,284		$	69,407			1	%	$	5,849,691		$	5,780,284		$	69,407			1	%
Total Tangible Equity	$	5,538,240		$	5,341,020		$	5,284,232		$	5,350,377		$	5,461,713		$	76,527			1	%	$	5,538,240		$	5,461,713		$	76,527			1	%
Tangible Equity/Total Owned Assets		16.3	%		15.6	%		15.8	%		16.9	%		16.9	%								16.3	%		16.9	%
ROE 1, 2		16	%		6	%		(4	%)		14	%		15	%								11	%		15	%
ROE from Continuing Operations		14	%		17	%		15	%		17	%		18	%								15	%		18	%
Allowance for Loan Loss (period end)	$	846,775		$	860,378		$	759,925		$	629,458		$	644,701		$	202,074			31	%	$	846,775		$	644,701		$	202,074			31	%
Change in Loan Loss Reserves	$	(13,603	)	$	100,453		$	130,467		$	(15,243	)	$	(18,471	)	$	4,868			26	%	$	86,850		$	(59,215	)	$	146,065		NM
Reserve Rate		4.28	%		4.16	%		3.65	%		3.28	%		3.32	%		96		bps				4.28	%		3.32	%		96		bps
Interest-only Strip Receivable (period end)	$	447,994		$	468,059		$	400,313		$	353,091		$	372,421		$	75,573			20	%	$	447,994		$	372,421		$	75,573			20	%
Net Revaluation of Retained Interests	$	(44,473	)	$	74,997		$	37,475		$	(23,905	)	$	36,354		$	(80,827	)	NM			$	30,524		$	37,775		$	(7,251	)		(19	%)
Per Share Statistics
Basic EPS 1,2	$	0.49		$	0.17		$	(0.12	)	$	0.42		$	0.44		$	0.05			11	%	$	0.66		$	0.93		$	(0.27	)		(29	%)
Basic EPS from Continuing Operations	$	0.42		$	0.50		$	0.44		$	0.51		$	0.52		$	(0.10	)		(19	%)	$	0.92		$	1.06		$	(0.14	)		(13	%)
Diluted EPS 1, 2, 4	$	0.48		$	0.17		$	(0.12	)	$	0.42		$	0.44		$	0.04			9	%	$	0.65		$	0.93		$	(0.28	)		(30	%)
Diluted EPS from Continuing Operations  4	$	0.42		$	0.50		$	0.44		$	0.51		$	0.52		$	(0.10	)		(19	%)	$	0.92		$	1.06		$	(0.14	)		(13	%)
Stock Price (period end)	$	17.15		$	15.09		$	17.37		$	23.14											$	17.15
Book Value	$	12.20		$	11.80		$	11.72		$	11.87											$	12.20
Ending Shares Outstanding (000's)  4		479,346			479,127			477,688			477,328			477,236			2,110			0	%		479,346			477,236			2,110			0	%
Weighted Average Shares Outstanding (000's)  4		479,270			478,518			477,567			477,272			477,236			2,034			0	%		478,896			477,236			1,660			0	%
Weighted Average Shares Outstanding (fully diluted) (000's)  4		483,753			481,744			477,567			480,071			477,236			6,517			1	%		482,735			477,236			5,499			1	%
Loan Receivables  3
Total Loans - Owned	$	20,502,063		$	21,042,681		$	20,831,117		$	19,170,450		$	19,938,986		$	563,077			3	%	$	20,502,063		$	19,938,986		$	563,077			3	%
Average Total Loans - Owned	$	19,890,330		$	21,523,606		$	19,405,775		$	19,812,392		$	18,673,525		$	1,216,805			7	%	$	20,702,505		$	20,287,228		$	415,277			2	%
Interest Yield		10.40	%		10.34	%		10.51	%		11.20	%		10.69	%		(29	)	bps				10.37	%		10.61	%		(24	)	bps
Net Principal Charge-off Rate		4.49	%		3.83	%		3.43	%		3.23	%		3.47	%		102		bps				4.15	%		3.47	%		68		bps
Delinquency Rate (over 30 days)		3.54	%		3.63	%		3.26	%		2.81	%		2.71	%		83		bps				3.54	%		2.71	%		83		bps
Delinquency Rate (over 90 days)		1.81	%		1.82	%		1.51	%		1.31	%		1.31	%		50		bps				1.81	%		1.31	%		50		bps
Transactions Processed on Networks (000's)
Discover Network		370,596			378,912			378,438			384,335			361,893			8,703			2	%		749,508			723,593			25,915			4	%
PULSE Network		703,404			621,072			611,518			593,866			558,811			144,593			26	%		1,324,476			1,079,677			244,799			23	%
Total		1,074,000			999,984			989,956			978,201			920,704			153,296			17	%		2,073,984			1,803,270			270,714			15	%
Network Volume
PULSE Network	$	27,830,403		$	24,783,895		$	23,035,361		$	22,372,106		$	20,799,365		$	7,031,038			34	%	$	52,614,298		$	40,828,941		$	11,785,357			29	%
Third-Party Issuers		1,603,006			1,545,943			1,458,959			1,492,568			1,313,438			289,568			22	%		3,148,949			2,528,578			620,371			25	%
Total Third-Party Payments		29,433,409			26,329,838			24,494,320			23,864,674			22,112,803			7,320,606			33	%		55,763,247			43,357,519			12,405,728			29	%
U.S. Card		23,621,519			24,074,331			23,482,095			24,411,714			22,975,645			645,874			3	%		47,695,850			45,900,691			1,795,159			4	%
Total	$	53,054,928		$	50,404,169		$	47,976,415		$	48,276,388		$	45,088,448		$	7,966,480			18	%	$	103,459,097		$	89,258,210		$	14,200,887			16	%
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 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.

Discover Financial Services
Managed Basis 1
(unaudited, dollars in thousands)
	Quarter Ended																					Six Months Ended
	May 31,  2008			Feb 29, 2008			Nov 30,  2007			Aug 31, 2007			May 31, 2007			May 31, 2008 vs May 31, 2007						May 31, 2008			May 31, 2007			2008 vs 2007
Earnings Summary
Interest Income	$	1,572,697		$	1,652,615		$	1,667,418		$	1,626,808		$	1,601,882		$	(29,185	)		(2	%)	$	3,225,312		$	3,084,448		$	140,864			5	%
Interest Expense		550,629			668,953			750,638			703,024			693,841			(143,212	)		(21	%)		1,219,582			1,287,466			(67,884	)		(5	%)
Net Interest Income		1,022,068			983,662			916,780			923,784			908,041			114,027			13	%		2,005,730			1,796,982			208,748			12	%
Other Income		492,207			636,679			633,014			510,525			555,552			(63,345	)		(11	%)		1,128,886			1,076,237			52,649			5	%
Revenue Net of Interest Expense		1,514,275			1,620,341			1,549,794			1,434,309			1,463,593			50,682			3	%		3,134,616			2,873,219			261,397			9	%
Provision for Loan Losses		581,537			627,068			584,722			418,349			444,249			137,288			31	%		1,208,605			850,325			358,280			42	%
Employee Compensation and Benefits		218,290			217,370			208,910			210,541			215,447			2,843			1	%		435,660			430,614			5,046			1	%
Marketing and Business Development		132,038			141,553			155,976			153,786			131,959			79			0	%		273,591			266,501			7,090			3	%
Information Processing & Communications		79,449			78,276			85,034			83,779			82,396			(2,947	)		(4	%)		157,725			161,240			(3,515	)		(2	%)
Professional Fees		81,392			73,672			94,380			88,111			102,853			(21,461	)		(21	%)		155,064			178,918			(23,854	)		(13	%)
Premises and Equipment		19,803			19,641			19,348			19,962			20,557			(754	)		(4	%)		39,444			40,132			(688	)		(2	%)
Other Expense		75,853			71,831			73,082			69,705			70,546			5,307			8	%		147,684			138,194			9,490			7	%
Total Other Expense		606,825			602,343			636,730			625,884			623,758			(16,933	)		(3	%)		1,209,168			1,215,599			(6,431	)		(1	%)
Income (Loss) Before Income Taxes		325,913			390,930			328,342			390,076			395,586			(69,673	)		(18	%)		716,843			807,295			(90,452	)		(11	%)
Tax Expense		124,370			152,101			118,368			145,925			145,330			(20,960	)		(14	%)		276,471			297,221			(20,750	)		(7	%)
Income From Continuing Operations		201,543			238,829			209,974			244,151			250,256			(48,713	)		(19	%)		440,372			510,074			(69,702	)		(14	%)
Discontinued Operations, Net of Tax 2, 3		32,605			(157,615	)		(266,458	)		(41,911	)		(41,014	)		73,619			179	%		(125,010	)		(67,200	)		(57,810	)		(86	%)
Net Income (Loss) 2, 3	$	234,148		$	81,214		$	(56,484	)	$	202,240		$	209,242		$	24,906			12	%	$	315,362		$	442,874		$	(127,512	)		(29	%)
Balance Sheet Statistics 4
Total Assets	$	62,148,577		$	61,937,501		$	60,591,475		$	59,688,962		$	60,022,064		$	2,126,513			4	%	$	62,148,577		$	60,022,064		$	2,126,513			4	%
Total Equity 5	$	5,849,691		$	5,654,341		$	5,599,422		$	5,667,282		$	5,780,284		$	69,407			1	%	$	5,849,691		$	5,780,284		$	69,407			1	%
Total Tangible Equity 5	$	5,538,240		$	5,341,020		$	5,284,232		$	5,350,377		$	5,461,713		$	76,527			1	%	$	5,538,240		$	5,461,713		$	76,527			1	%
Tangible Equity/Net Managed Receivables		11.8	%		11.5	%		11.1	%		11.4	%		11.8	%								11.8	%		11.8	%
Tangible Equity/Total Managed Assets		8.9	%		8.6	%		8.7	%		9.0	%		9.1	%								8.9	%		9.1	%
Net Yield on Loan Receivables		8.57	%		8.10	%		7.76	%		7.80	%		7.78	%		79		bps				8.33	%		7.73	%		60		bps
Return on Loan Receivables		1.69	%		1.97	%		1.78	%		2.06	%		2.14	%		(45	)	bps				1.83	%		2.19	%		(36	)	bps
Loan Receivables 4
Total Loans - Managed	$	47,841,491		$	47,500,410		$	48,180,436		$	47,444,107		$	46,953,902		$	887,589			2	%	$	47,841,491		$	46,953,902		$	887,589			2	%
Average Total Loans - Managed	$	47,472,077		$	48,863,167		$	47,381,471		$	47,016,472		$	46,296,296		$	1,175,781			3	%	$	48,163,821		$	46,627,410		$	1,536,411			3	%
Managed Interest Yield		12.41	%		12.70	%		12.84	%		12.75	%		12.58	%		(17	)	bps				12.56	%		12.50	%		6		bps
Managed Net Principal Charge-off Rate		4.99	%		4.33	%		3.85	%		3.66	%		3.97	%		102		bps				4.66	%		3.91	%		75		bps
Managed Delinquency Rate (over 30 days)		3.81	%		3.90	%		3.58	%		3.16	%		2.97	%		84		bps				3.81	%		2.97	%		84		bps
Managed Delinquency Rate (over 90 days)		1.96	%		1.96	%		1.67	%		1.48	%		1.44	%		52		bps				1.96	%		1.44	%		52		bps
Credit Card Volume	$	25,596,794		$	26,207,028		$	26,159,776		$	27,171,729		$	26,408,578		$	(811,784	)		(3	%)	$	51,803,822		$	53,289,313		$	(1,485,491	)		(3	%)
Credit Card Sales Volume	$	22,457,651		$	23,155,253		$	22,588,639		$	23,527,999		$	22,108,865		$	348,786			2	%	$	45,612,904		$	44,145,918		$	1,466,986			3	%
Segment - Income Before Income Taxes
U.S. Card	$	309,123		$	375,403		$	320,751		$	380,637		$	387,576		$	(78,453	)		(20	%)	$	684,526		$	787,365		$	(102,839	)		(13	%)
Third-Party Payments		16,790			15,527			7,591			9,439			8,010			8,780			110	%		32,317			19,930			12,387			62	%
Total	$	325,913		$	390,930		$	328,342		$	390,076		$	395,586		$	(69,673	)		(18	%)	$	716,843		$	807,295		$	(90,452	)		(11	%)
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.

Discover Financial Services
U.S. Card Segment
Managed Basis1
(unaudited, dollars in thousands)
	Quarter Ended																					Six Months Ended
	May 31, 2008			Feb 29, 2008			Nov 30, 2007			Aug 31, 2007			May 31, 2007			May 31, 2008 vs May 31, 2007						May 31,  2008			May 31, 2007			2008 vs 2007
Earnings Summary
Interest Income	$	1,572,164		$	1,651,987		$	1,666,768		$	1,626,214		$	1,601,324		$	(29,160	)		(2	%)	$	3,224,151		$	3,083,316		$	140,835			5	%
Interest Expense		550,629			668,951			750,638			703,024			693,837			(143,208	)		(21	%)		1,219,580			1,287,447			(67,867	)		(5	%)
Net Interest Income		1,021,535			983,036			916,130			923,190			907,487			114,048			13	%		2,004,571			1,795,869			208,702			12	%
Other Income		455,074			602,411			603,709			481,060			526,304			(71,230	)		(14	%)		1,057,485			1,016,307			41,178			4	%
Revenue Net of Interest Expense		1,476,609			1,585,447			1,519,839			1,404,250			1,433,791			42,818			3	%		3,062,056			2,812,176			249,880			9	%
Provision for Loan Losses		581,537			627,068			584,722			418,349			444,249			137,288			31	%		1,208,605			850,325			358,280			42	%
Total Other Expense		585,949			582,976			614,366			605,264			601,966			(16,017	)		(3	%)		1,168,925			1,174,486			(5,561	)		(0	%)
Income (Loss) Before Income Taxes	$	309,123		$	375,403		$	320,751		$	380,637		$	387,576		$	(78,453	)		(20	%)	$	684,526		$	787,365		$	(102,839	)		(13	%)
Net Yield on Loan Receivables		8.56	%		8.09	%		7.76	%		7.79	%		7.78	%		78		bps				8.32	%		7.72	%		60		bps
Pretax Return on Loan Receivables		2.59	%		3.09	%		2.72	%		3.21	%		3.32	%		(73	)	bps				2.84	%		3.39	%		(55	)	bps
Loan Receivables
Total Loans	$	47,841,491		$	47,500,410		$	48,180,436		$	47,444,107		$	46,953,902		$	887,589			2	%	$	47,841,491		$	46,953,902		$	887,589			2	%
Average Total Loans	$	47,472,077		$	48,863,167		$	47,381,471		$	47,016,472		$	46,296,296		$	1,175,781			3	%	$	48,163,821		$	46,627,410		$	1,536,411			3	%
Managed Interest Yield		12.41	%		12.70	%		12.84	%		12.75	%		12.58	%		(17	)	bps				12.56	%		12.50	%		6		bps
Managed Net Principal Charge-off Rate		4.99	%		4.33	%		3.85	%		3.66	%		3.97	%		102		bps				4.66	%		3.91	%		75		bps
Managed Delinquency Rate (over 30 days)		3.81	%		3.90	%		3.58	%		3.16	%		2.97	%		84		bps				3.81	%		2.97	%		84		bps
Managed Delinquency Rate (over 90 days)		1.96	%		1.96	%		1.67	%		1.48	%		1.44	%		52		bps				1.96	%		1.44	%		52		bps
Credit Card Loans
Credit Card Loans - Managed	$	47,124,842		$	47,014,539		$	47,929,242		$	47,352,098		$	46,864,317		$	260,525			1	%	$	47,124,842		$	46,864,317		$	260,525			1	%
Average Credit Card Loans - Managed	$	46,857,480		$	48,487,812		$	47,251,899		$	46,926,260		$	46,203,924		$	653,556			1	%	$	47,668,191		$	46,533,431		$	1,134,760			2	%
Managed Interest Yield		12.43	%		12.72	%		12.85	%		12.76	%		12.59	%		(16	)	bps				12.58	%		12.52	%		6		bps
Managed Net Principal Charge-off Rate		5.05	%		4.37	%		3.85	%		3.67	%		3.97	%		108		bps				4.70	%		3.92	%		78		bps
Managed Delinquency Rate (over 30 days)		3.85	%		3.93	%		3.59	%		3.16	%		2.97	%		88		bps				3.85	%		2.97	%		88		bps
Managed Delinquency Rate (over 90 days)		1.99	%		1.98	%		1.68	%		1.48	%		1.44	%		55		bps				1.99	%		1.44	%		55		bps
Total Credit Card Volume	$	25,596,794		$	26,207,028		$	26,159,776		$	27,171,729		$	26,408,578		$	(811,784	)		(3	%)	$	51,803,822		$	53,289,313		$	(1,485,491	)		(3	%)
Sales Volume	$	22,457,651		$	23,155,253		$	22,588,639		$	23,527,999		$	22,108,865		$	348,786			2	%	$	45,612,904		$	44,145,918		$	1,466,986			3	%
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.

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Third-Party Payments Segment
(unaudited, dollars in thousands)
	Quarter Ended															Six Months Ended
	May 31,  2008		Feb 29, 2008		Nov 30,  2007		Aug 31,  2007		May 31,  2007		May 31, 2008 vs May 31, 2007					May 31,  2008		May 31,  2007		2008 vs 2007
Earnings Summary
Interest Income	$	533	$	628	$	650	$	594	$	558	$	(25	)	(4	%)	$	1,161	$	1,132	$	29		3	%
Interest Expense		-		2		-		-		4		(4	)	(100	%)		2		19		(17	)	(89	%)
Net Interest Income		533		626		650		594		554		(21	)	(4	%)		1,159		1,113		46		4	%
Other Income		37,133		34,268		29,305		29,465		29,248		7,885		27	%		71,401		59,930		11,471		19	%
Revenue Net of Interest Expense		37,666		34,894		29,955		30,059		29,802		7,864		26	%		72,560		61,043		11,517		19	%
Provision for Loan Losses		-		-		-		-		-		-		0	%		-		-		-		0	%
Total Other Expense		20,876		19,367		22,364		20,620		21,792		(916	)	(4	%)		40,243		41,113		(870	)	(2	%)
Income (Loss) Before Income Taxes	$	16,790	$	15,527	$	7,591	$	9,439	$	8,010	$	8,780		110	%	$	32,317	$	19,930	$	12,387		62	%
Network Volume
PULSE Network	$	27,830,403	$	24,783,895	$	23,035,361	$	22,372,106	$	20,799,365	$	7,031,038		34	%	$	52,614,298	$	40,828,941	$	11,785,357		29	%
Third-Party Issuers		1,603,006		1,545,943		1,458,959		1,492,568		1,313,438		289,568		22	%		3,148,949		2,528,578		620,371		25	%
Total Third-Party Payments	$	29,433,409	$	26,329,838	$	24,494,320	$	23,864,674	$	22,112,803	$	7,320,606		33	%	$	55,763,247	$	43,357,519	$	12,405,728		29	%
Transactions Processed on PULSE Network (000's)		703,404		621,072		611,518		593,866		558,811		144,593		26	%		1,324,476		1,079,677		244,799		23	%

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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.

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Reconciliation of GAAP to Managed Data 1
(unaudited, dollars in thousands)
	Quarter Ended															Six Months Ended
	May 31, 2008			Feb 29, 2008			Nov 30, 2007			Aug 31, 2007			May 31, 2007			May 31, 2008			May 31, 2007
Interest Income
GAAP Basis	$	612,063		$	662,802		$	659,676		$	674,864		$	637,656		$	1,274,865		$	1,249,862
Securitization Adjustments 1		960,634			989,813			1,007,742			951,944			964,226			1,950,447			1,834,586
Managed Basis	$	1,572,697		$	1,652,615		$	1,667,418		$	1,626,808		$	1,601,882		$	3,225,312		$	3,084,448
Interest Expense
GAAP Basis	$	313,248		$	339,441		$	350,917		$	317,124		$	303,422		$	652,689		$	555,229
Securitization Adjustments		237,381			329,512			399,721			385,900			390,419			566,893			732,237
Managed Basis	$	550,629		$	668,953		$	750,638		$	703,024		$	693,841		$	1,219,582		$	1,287,466
Net Interest Income
GAAP Basis	$	298,815		$	323,361		$	308,759		$	357,740		$	334,234		$	622,176		$	694,633
Securitization Adjustments		723,253			660,301			608,021			566,044			573,807			1,383,554			1,102,349
Managed Basis	$	1,022,068		$	983,662		$	916,780		$	923,784		$	908,041		$	2,005,730		$	1,796,982
Other Income
GAAP Basis	$	844,892		$	975,544		$	952,500		$	804,047		$	829,786		$	1,820,436		$	1,620,135
Securitization Adjustments		(352,685	)		(338,865	)		(319,486	)		(293,522	)		(274,234	)		(691,550	)		(543,898	)
Managed Basis	$	492,207		$	636,679		$	633,014		$	510,525		$	555,552		$	1,128,886		$	1,076,237
Revenue Net of Interest Expense
GAAP Basis	$	1,143,707		$	1,298,905		$	1,261,259		$	1,161,787		$	1,164,020		$	2,442,612		$	2,314,768
Securitization Adjustments		370,568			321,436			288,535			272,522			299,573			692,004			558,451
Managed Basis	$	1,514,275		$	1,620,341		$	1,549,794		$	1,434,309		$	1,463,593		$	3,134,616		$	2,873,219
Provision for Loan Losses
GAAP Basis	$	210,969		$	305,632		$	296,187		$	145,827		$	144,676		$	516,601		$	291,874
Securitization Adjustments		370,568			321,436			288,535			272,522			299,573			692,004			558,451
Managed Basis	$	581,537		$	627,068		$	584,722		$	418,349		$	444,249		$	1,208,605		$	850,325
Total Assets
GAAP Basis	$	34,020,245		$	34,222,732		$	33,449,702		$	31,683,866		$	32,264,467		$	34,020,245		$	32,264,467
Securitization Adjustments		28,128,332			27,714,769			27,141,773			28,005,096			27,757,597			28,128,332			27,757,597
Managed Basis	$	62,148,577		$	61,937,501		$	60,591,475		$	59,688,962		$	60,022,064		$	62,148,577		$	60,022,064
Tangible Equity/Total Assets
GAAP Basis		16.3	%		15.6	%		15.8	%		16.9	%		16.9	%		16.3	%		16.9	%
Securitization Adjustments		19.7	%		19.3	%		19.5	%		19.1	%		19.7	%		19.7	%		19.7	%
Managed Basis		8.9	%		8.6	%		8.7	%		9.0	%		9.1	%		8.9	%		9.1	%
Loan Receivables
Total Loans
GAAP Basis	$	20,502,063		$	21,042,681		$	20,831,117		$	19,170,450		$	19,938,986		$	20,502,063		$	19,938,986
Securitization Adjustments		27,339,428			26,457,729			27,349,319			28,273,657			27,014,916			27,339,428			27,014,916
Managed Basis	$	47,841,491		$	47,500,410		$	48,180,436		$	47,444,107		$	46,953,902		$	47,841,491		$	46,953,902
Average Total Loans
GAAP Basis	$	19,890,330		$	21,523,606		$	19,405,775		$	19,812,392		$	18,673,525		$	20,702,505		$	20,287,228
Securitization Adjustments		27,581,747			27,339,561			27,975,696			27,204,080			27,622,771			27,461,316			26,340,182
Managed Basis	$	47,472,077		$	48,863,167		$	47,381,471		$	47,016,472		$	46,296,296		$	48,163,821		$	46,627,410

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Reconciliation of GAAP to Managed Data 1
(unaudited, dollars in thousands)
	Quarter Ended					Six Months Ended
	May 31, 2008	Feb 29, 2008	Nov 30, 2007	Aug 31, 2007	May 31, 2007	May 31, 2008	May 31, 2007

Interest Yield
GAAP Basis		10.40	%		10.34	%		10.51	%		11.20	%		10.69	%		10.37	%		10.61	%
Securitization Adjustments		13.86	%		14.56	%		14.45	%		13.88	%		13.85	%		14.21	%		13.97	%
Managed Basis		12.41	%		12.70	%		12.84	%		12.75	%		12.58	%		12.56	%		12.50	%
Net Principal Charge-off Rate
GAAP Basis		4.49	%		3.83	%		3.43	%		3.23	%		3.47	%		4.15	%		3.47	%
Securitization Adjustments		5.34	%		4.73	%		4.14	%		3.97	%		4.30	%		5.04	%		4.25	%
Managed Basis		4.99	%		4.33	%		3.85	%		3.66	%		3.97	%		4.66	%		3.91	%
Delinquency Rate (over 30 days)
GAAP Basis		3.54	%		3.63	%		3.26	%		2.81	%		2.71	%		3.54	%		2.71	%
Securitization Adjustments		4.01	%		4.11	%		3.82	%		3.40	%		3.16	%		4.01	%		3.16	%
Managed Basis		3.81	%		3.90	%		3.58	%		3.16	%		2.97	%		3.81	%		2.97	%
Delinquency Rate (over 90 days)
GAAP Basis		1.81	%		1.82	%		1.51	%		1.31	%		1.31	%		1.81	%		1.31	%
Securitization Adjustments		2.07	%		2.08	%		1.79	%		1.60	%		1.54	%		2.07	%		1.54	%
Managed Basis		1.96	%		1.96	%		1.67	%		1.48	%		1.44	%		1.96	%		1.44	%
Credit Card Loans
Credit Card Loans
GAAP Basis	$	19,785,414		$	20,556,810		$	20,579,923		$	19,078,441		$	19,849,401		$	19,785,414		$	19,849,401
Securitization Adjustments		27,339,428			26,457,729			27,349,319			28,273,657			27,014,916			27,339,428			27,014,916
Managed Basis	$	47,124,842		$	47,014,539		$	47,929,242		$	47,352,098		$	46,864,317		$	47,124,842		$	46,864,317
Average Credit Card Loans
GAAP Basis	$	19,275,733		$	21,148,252		$	19,276,203		$	19,722,180		$	18,581,153		$	20,206,876		$	20,193,248
Securitization Adjustments		27,581,747			27,339,560			27,975,696			27,204,080			27,622,771			27,461,315			26,340,183
Managed Basis	$	46,857,480		$	48,487,812		$	47,251,899		$	46,926,260		$	46,203,924		$	47,668,191		$	46,533,431
Interest Yield
GAAP Basis		10.40	%		10.35	%		10.53	%		11.22	%		10.72	%		10.37	%		10.63	%
Securitization Adjustments		13.86	%		14.56	%		14.45	%		13.88	%		13.85	%		14.21	%		13.97	%
Managed Basis		12.43	%		12.72	%		12.85	%		12.76	%		12.59	%		12.58	%		12.52	%
Net Principal Charge-off Rate
GAAP Basis		4.63	%		3.90	%		3.44	%		3.24	%		3.48	%		4.25	%		3.48	%
Securitization Adjustments		5.34	%		4.73	%		4.14	%		3.97	%		4.30	%		5.04	%		4.25	%
Managed Basis		5.05	%		4.37	%		3.85	%		3.67	%		3.97	%		4.70	%		3.92	%
Delinquency Rate (over 30 days)
GAAP Basis		3.63	%		3.69	%		3.28	%		2.80	%		2.71	%		3.63	%		2.71	%
Securitization Adjustments		4.01	%		4.11	%		3.82	%		3.40	%		3.16	%		4.01	%		3.16	%
Managed Basis		3.85	%		3.93	%		3.59	%		3.16	%		2.97	%		3.85	%		2.97	%
Delinquency Rate (over 90 days)
GAAP Basis		1.87	%		1.86	%		1.53	%		1.31	%		1.31	%		1.87	%		1.31	%
Securitization Adjustments		2.07	%		2.08	%		1.79	%		1.60	%		1.54	%		2.07	%		1.54	%
Managed Basis		1.99	%		1.98	%		1.68	%		1.48	%		1.44	%		1.99	%		1.44	%
1Securitization 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.