Discover Financial Services (DFS) 8-K Net Income of $371 Million and Earnings Per Share of $0.63

Exhibit 99.2

Discover Financial Services
GAAP Basis
(unaudited, dollars in thousands, except per
share statistics)	Quarter Ended																				Year Ended
	Nov 30, 2009			Aug 31, 2009			May 31, 2009			Feb 28, 2009			Nov 30, 2008			Nov 30, 2009 vs Nov 30, 2008					Nov 30, 2009			Nov 30, 2008			2009 vs 2008
Earnings Summary
Interest Income	$	638,086		$	833,217		$	857,984		$	815,793		$	736,006		$	(97,920	)	(13	%)	$	3,145,080		$	2,692,563		$	452,517		17	%
Interest Expense		314,158			304,401			320,005			312,720			329,672			(15,514	)	(5	%)		1,251,284			1,288,004			(36,720	)	(3	%)
Net Interest Income		323,928			528,816			537,979			503,073			406,334			(82,406	)	(20	%)		1,893,796			1,404,559			489,237		35	%
Other Income  1		1,253,559			1,315,960			1,081,120			1,189,956			1,568,901			(315,342	)	(20	%)		4,840,595			4,264,458			576,137		14	%
Revenue Net of Interest Expense		1,577,487			1,844,776			1,619,099			1,693,029			1,975,235			(397,748	)	(20	%)		6,734,391			5,669,017			1,065,374		19	%
Provision for Loan Losses		399,732			380,999			643,861			937,813			714,176			(314,444	)	(44	%)		2,362,405			1,595,615			766,790		48	%
Employee Compensation and Benefits		191,516			208,528			208,151			219,488			187,306			4,210		2	%		827,683			845,392			(17,709	)	(2	%)
Marketing and Business Development		113,851			77,814			102,922			111,433			119,382			(5,531	)	(5	%)		406,020			530,901			(124,881	)	(24	%)
Information Processing & Communications		72,192			67,679			74,441			74,897			81,543			(9,351	)	(11	%)		289,209			315,943			(26,734	)	(8	%)
Professional Fees		92,910			83,746			74,550			70,123			111,645			(18,735	)	(17	%)		321,329			349,484			(28,155	)	(8	%)
Premises and Equipment		18,282			18,437			18,223			18,072			20,676			(2,394	)	(12	%)		73,014			80,394			(7,380	)	(9	%)
Other Expense		89,756			67,634			82,341			65,110			73,530			16,226		22	%		304,841			293,683			11,158		4	%
Total Other Expense		578,507			523,838			560,628			559,123			594,082			(15,575	)	(3	%)		2,222,096			2,415,797			(193,701	)	(8	%)
Income Before Income Taxes  1		599,248			939,939			414,610			196,093			666,977			(67,729	)	(10	%)		2,149,890			1,657,605			492,285		30	%
Tax Expense		228,560			362,485			188,810			75,699			223,336			5,224		2	%		855,554			594,692			260,862		44	%
Income From Continuing Operations  1		370,688			577,454			225,800			120,394			443,641			(72,953	)	(16	%)		1,294,336			1,062,913			231,423		22	%
Discontinued Operations, Net of Tax  2		-			-			-			-			(11,306	)		11,306		100	%		-			(135,163	)		135,163		100	%
Net Income  1, 2	$	370,688		$	577,454		$	225,800		$	120,394		$	432,335		$	(61,647	)	(14	%)	$	1,294,336		$	927,750		$	366,586		40	%
Net Income Available to Common Stockholders 1, 2 , 3	$	352,054		$	559,387		$	209,246		$	120,394		$	432,335		$	(80,281	)	(19	%)	$	1,241,081		$	927,750		$	313,331		34	%
Effective Tax Rate From Continuing Operations		38.1	%		38.6	%		45.5	%		38.6	%		33.5	%							39.8	%		35.9	%
Balance Sheet Statistics 4
Total Assets	$	46,010,146		$	42,698,290		$	41,518,288		$	40,606,518		$	39,892,382		$	6,117,764		15	%	$	46,010,146		$	39,892,382		$	6,117,764		15	%
Tangible Assets	$	45,559,089		$	42,245,313		$	41,063,390		$	40,149,699		$	39,433,642		$	6,125,447		16	%	$	45,559,089		$	39,433,642		$	6,125,447		16	%
Total Equity	$	8,466,755		$	8,386,202		$	7,415,640		$	5,999,351		$	5,915,823		$	2,550,932		43	%	$	8,466,755		$	5,915,823		$	2,550,932		43	%
Total Common Equity	$	7,308,689		$	7,231,463		$	6,263,661		$	5,999,351		$	5,915,823		$	1,392,866		24	%	$	7,308,689		$	5,915,823		$	1,392,866		24	%
Total Common Equity/Total Assets		15.9	%		16.9	%		15.1	%		14.8	%		14.8	%							15.9	%		14.8	%
Total Common Equity/Net Loans - Owned		33.4	%		30.6	%		24.6	%		22.9	%		24.8	%							33.4	%		24.8	%
ROE  1, 2		17	%		28	%		12	%		8	%		29	%							17	%		16	%
ROE from Continuing Operations  1		17	%		28	%		12	%		8	%		30	%							17	%		18	%
Allowance for Loan Loss (period end)	$	1,757,899		$	1,832,360		$	1,986,473		$	1,878,942		$	1,374,585		$	383,314		28	%	$	1,757,899		$	1,374,585		$	383,314		28	%
Change in Loan Loss Reserves	$	(74,461	)	$	(154,113	)	$	107,531		$	504,357		$	414,816		$	(489,277	)	(118	%)	$	383,314		$	614,660		$	(231,346	)	(38	%)
Reserve Rate		7.44	%		7.19	%		7.24	%		6.70	%		5.45	%		199		bps			7.44	%		5.45	%		199		bps
Interest-only Strip Receivable (period end)	$	117,579		$	162,252		$	94,670		$	198,536		$	300,120		$	(182,541	)	(61	%)	$	117,579		$	300,120		$	(182,541	)	(61	%)
Net Revaluation of Retained Interests	$	(37,771	)	$	68,880		$	(92,954	)	$	(98,242	)	$	(116,335	)	$	78,564		68	%	$	(160,087	)	$	(119,324	)	$	(40,763	)	(34	%)
Per Share Statistics
Basic EPS  1, 2, 5	$	0.65		$	1.09		$	0.43		$	0.25		$	0.90		$	(0.25	)	(28	%)	$	2.46		$	1.94		$	0.52		27	%
Basic EPS from Continuing Operations 1, 5	$	0.65		$	1.09		$	0.43		$	0.25		$	0.92		$	(0.27	)	(29	%)	$	2.46		$	2.22		$	0.24		11	%
Diluted EPS  1, 2, 5	$	0.63		$	1.07		$	0.43		$	0.25		$	0.89		$	(0.26	)	(29	%)	$	2.42		$	1.92		$	0.50		26	%
Diluted EPS from Continuing Operations  1, 5	$	0.63		$	1.07		$	0.43		$	0.25		$	0.92		$	(0.29	)	(32	%)	$	2.42		$	2.20		$	0.22		10	%
Common Stock Price (period end)	$	15.46		$	13.75		$	9.56		$	5.73		$	10.23		$	5.23		51	%	$	15.46		$	10.23		$	5.23		51	%
Book Value	$	15.59		$	15.45		$	15.40		$	12.46		$	12.32		$	3.27		27	%	$	15.59		$	12.32		$	3.27		27	%
Ending Common Shares Outstanding (000's)		542,922			542,749			481,676			481,459			479,987			62,935		13	%		542,922			479,987			62,935		13	%
Weighted Average Common Shares Outstanding (000's)		542,826			513,098			481,636			480,497			479,931			62,895		13	%		504,550			479,335			25,215		5	%
Weighted Average Common Shares Outstanding (fully diluted) (000's)		555,066			520,579			484,965			485,043			484,558			70,508		15	%		511,803			483,470			28,333		6	%
Loan Receivables  4
Total Loans - Owned	$	23,625,084		$	25,489,809		$	27,441,514		$	28,034,208		$	25,216,611		$	(1,591,527	)	(6	%)	$	23,625,084		$	25,216,611		$	(1,591,527	)	(6	%)
Less: Allowance for Loan Loss (period end)		1,757,899			1,832,360			1,986,473			1,878,942			1,374,585			383,314		28	%		1,757,899			1,374,585			383,314		28	%
Net Loans - Owned	$	21,867,185		$	23,657,449		$	25,455,041		$	26,155,266		$	23,842,026		$	(1,974,841	)	(8	%)	$	21,867,185		$	23,842,026		$	(1,974,841	)	(8	%)
Average Total Loans - Owned	$	23,835,598		$	26,380,203		$	28,257,484		$	27,733,143		$	22,945,494		$	890,104		4	%	$	26,552,574		$	21,348,493		$	5,204,081		24	%
Interest Yield		10.25	%		12.10	%		11.54	%		11.24	%		11.36	%		(111	)	bps			11.31	%		10.89	%		42		bps
Net Principal Charge-off Rate		7.98	%		8.05	%		7.53	%		6.34	%		5.25	%		273		bps			7.45	%		4.59	%		286		bps
Delinquency Rate (over 30 days)		4.92	%		4.86	%		4.87	%		5.04	%		4.35	%		57		bps			4.92	%		4.35	%		57		bps
Delinquency Rate (over 90 days)		2.58	%		2.46	%		2.60	%		2.57	%		2.06	%		52		bps			2.58	%		2.06	%		52		bps
Transactions Processed on Networks (000's)
Discover Network		387,350			390,643			366,315			369,647			377,356			9,994		3	%		1,513,955			1,515,368			(1,413	)	(0	%)
PULSE Network		676,817			753,201			762,175			686,527			644,045			32,772		5	%		2,878,720			2,682,312			196,408		7	%
Total		1,064,167			1,143,844			1,128,490			1,056,174			1,021,401			42,766		4	%		4,392,675			4,197,680			194,995		5	%
Volume
PULSE Network	$	24,667,926		$	28,051,978		$	29,128,044		$	27,454,173		$	25,033,235		$	(365,309	)	(1	%)	$	109,302,121		$	106,012,108		$	3,290,013		3	%
Third-Party Issuers		1,522,269			1,446,308			1,340,532			1,362,446			1,538,013			(15,744	)	(1	%)		5,671,555			6,398,579			(727,024	)	(11	%)
Diners Club International 6		7,172,809			6,465,990			6,240,604			6,293,574			7,457,893			(285,566	)	(4	%)		26,172,977			12,685,690			13,486,805		106	%
Total Third-Party Payments		33,363,004			35,964,276			36,709,180			35,110,193			34,029,141			(666,619	)	(2	%)		141,146,653			125,096,377			16,049,794		13	%
Discover Network - Proprietary 7		22,712,600			23,579,434			21,972,596			22,424,367			22,875,272			(162,672	)	(1	%)		90,688,997			95,688,443			(4,999,446	)	(5	%)
Total	$	56,075,604		$	59,543,710		$	58,681,776		$	57,534,560		$	56,904,413		$	(829,291	)	(1	%)	$	231,835,650		$	220,784,820		$	11,050,348		5	%

Discover Financial Services
Managed Basis 8
(unaudited, dollars in thousands)
	Quarter Ended																				Year Ended
	Nov 30, 2009			Aug 31, 2009			May 31, 2009			Feb 28, 2009			Nov 30, 2008			Nov 30, 2009 vs Nov 30, 2008					Nov 30, 2009			Nov 30, 2008			2009 vs 2008
Earnings Summary
Interest Income	$	1,585,690		$	1,664,081		$	1,607,452		$	1,603,849		$	1,682,267		$	(96,577	)	(6	%)	$	6,461,072		$	6,545,829		$	(84,757	)		(1	%)
Interest Expense		403,298			392,642			414,063			438,417			602,450			(199,152	)	(33	%)		1,648,420			2,356,919			(708,499	)		(30	%)
Net Interest Income		1,182,392			1,271,439			1,193,389			1,165,432			1,079,817			102,575		9	%		4,812,652			4,188,910			623,742			15	%
Other Income  1		984,372			1,116,765			893,081			923,457			1,287,213			(302,841	)	(24	%)		3,917,675			2,953,096			964,579			33	%
Revenue Net of Interest Expense		2,166,764			2,388,204			2,086,470			2,088,889			2,367,030			(200,266	)	(8	%)		8,730,327			7,142,006			1,588,321			22	%
Provision for Loan Losses		989,009			924,427			1,111,232			1,333,673			1,105,971			(116,962	)	(11	%)		4,358,341			3,068,604			1,289,737			42	%
Employee Compensation and Benefits		191,516			208,528			208,151			219,488			187,306			4,210		2	%		827,683			845,392			(17,709	)		(2	%)
Marketing and Business Development		113,851			77,814			102,922			111,433			119,382			(5,531	)	(5	%)		406,020			530,901			(124,881	)		(24	%)
Information Processing & Communications		72,192			67,679			74,441			74,897			81,543			(9,351	)	(11	%)		289,209			315,943			(26,734	)		(8	%)
Professional Fees		92,910			83,746			74,550			70,123			111,645			(18,735	)	(17	%)		321,329			349,484			(28,155	)		(8	%)
Premises and Equipment		18,282			18,437			18,223			18,072			20,676			(2,394	)	(12	%)		73,014			80,394			(7,380	)		(9	%)
Other Expense		89,756			67,634			82,341			65,110			73,530			16,226		22	%		304,841			293,683			11,158			4	%
Total Other Expense		578,507			523,838			560,628			559,123			594,082			(15,575	)	(3	%)		2,222,096			2,415,797			(193,701	)		(8	%)
Income Before Income Taxes  1		599,248			939,939			414,610			196,093			666,977			(67,729	)	(10	%)		2,149,890			1,657,605			492,285			30	%
Tax Expense		228,560			362,485			188,810			75,699			223,336			5,224		2	%		855,554			594,692			260,862			44	%
Income From Continuing Operations  1		370,688			577,454			225,800			120,394			443,641			(72,953	)	(16	%)		1,294,336			1,062,913			231,423			22	%
Discontinued Operations, Net of Tax  2		-			-			-			-			(11,306	)		11,306		100	%		-			(135,163	)		135,163			100	%
Net Income  1, 2	$	370,688		$	577,454		$	225,800		$	120,394		$	432,335		$	(61,647	)	(14	%)	$	1,294,336		$	927,750		$	366,586			40	%
Balance Sheet Statistics 4
Total Assets	$	72,978,435		$	67,794,309		$	64,846,824		$	63,231,657		$	65,620,476		$	7,357,959		11	%	$	72,978,435		$	65,620,476		$	7,357,959			11	%
Tangible Managed Assets	$	72,527,378		$	67,341,332		$	64,391,926		$	62,774,838		$	65,161,736		$	7,365,642		11	%	$	72,527,378		$	65,161,736		$	7,365,642			11	%
Total Equity 9	$	8,466,755		$	8,386,202		$	7,415,640		$	5,999,351		$	5,915,823		$	2,550,932		43	%	$	8,466,755		$	5,915,823		$	2,550,932			43	%
Total Common Equity 9	$	7,308,689		$	7,231,463		$	6,263,661		$	5,999,351		$	5,915,823		$	1,392,866		24	%	$	7,308,689		$	5,915,823		$	1,392,866			24	%
Tangible Common Equity 10	$	6,857,632		$	6,778,486		$	5,808,763		$	5,542,532		$	5,457,083		$	1,400,549		26	%	$	6,857,632		$	5,457,083		$	1,400,549			26	%
Total Common Equity/Tangible Managed Assets 11		10.1	%		10.7	%		9.7	%		9.6	%		9.1	%							10.1	%		9.1	%
Tangible Common Equity/Tangible Managed Assets 10, 12		9.5	%		10.1	%		9.0	%		8.8	%		8.4	%							9.5	%		8.4	%
Tangible Common Equity/Net Loans - Managed 10		14.0	%		13.8	%		11.8	%		11.3	%		11.0	%							14.0	%		11.0	%
Tangible Common Equity per share 10	$	12.63		$	12.49		$	12.06		$	11.51		$	11.37		$	1.26		11	%	$	12.63		$	11.37		$	1.26			11	%
Net Yield on Managed Loan Receivables		9.37	%		9.90	%		9.26	%		9.11	%		8.56	%		81		bps			9.41	%		8.55	%		86			bps
Return on Managed Loan Receivables 1		2.94	%		4.49	%		1.75	%		0.94	%		3.52	%		(58	)	bps			2.53	%		2.17	%		36			bps
Reserve Rate (excluding guaranteed student loans) 13		7.87	%		7.45	%		7.36	%		6.78	%		5.48	%		238		bps			7.87	%		5.48	%		238			bps
Loan Receivables 4
Total Loans - Managed	$	50,860,372		$	50,903,845		$	51,032,382		$	50,888,704		$	51,095,278		$	(234,906	)	(0	%)	$	50,860,372		$	51,095,278		$	(234,906	)	��	(0	%)
Less: Allowance for Loan Loss (period end)		1,757,899			1,832,360			1,986,473			1,878,942			1,374,585			383,314		28	%		1,757,899			1,374,585			383,314			28	%
Net Loans - Managed	$	49,102,473		$	49,071,485		$	49,045,909		$	49,009,762		$	49,720,693		$	(618,220	)	(1	%)	$	49,102,473		$	49,720,693		$	(618,220	)		(1	%)
Average Total Loans - Managed	$	50,590,846		$	50,971,056		$	51,132,761		$	51,877,845		$	50,707,090		$	(116,244	)	(0	%)	$	51,140,614		$	49,011,148		$	2,129,466			4	%
Managed Interest Yield		12.34	%		12.73	%		12.19	%		12.17	%		12.65	%		(31	)	bps			12.36	%		12.61	%		(25	)		bps
Managed Net Principal Charge-off Rate		8.43	%		8.39	%		7.79	%		6.48	%		5.48	%		295		bps			7.77	%		5.01	%		276			bps
Managed Delinquency Rate (over 30 days)		5.31	%		5.10	%		5.08	%		5.25	%		4.56	%		75		bps			5.31	%		4.56	%		75			bps
Managed Delinquency Rate (over 90 days)		2.78	%		2.60	%		2.73	%		2.69	%		2.17	%		61		bps			2.78	%		2.17	%		61			bps
Total Discover Card Volume	$	23,335,440		$	23,955,402		$	24,336,751		$	23,964,577		$	25,318,553		$	(1,983,113	)	(8	%)	$	95,592,170		$	105,734,055		$	(10,141,885	)		(10	%)
Discover Card Sales Volume	$	21,903,694		$	22,768,927		$	21,494,174		$	21,293,757		$	22,025,264		$	(121,570	)	(1	%)	$	87,460,552		$	92,239,779		$	(4,779,227	)		(5	%)
Segment - Income Before Income Taxes
U.S. Card 1	$	575,477		$	912,800		$	387,902		$	167,167		$	646,427		$	(70,950	)	(11	%)	$	2,043,346		$	1,576,194		$	467,152			30	%
Third-Party Payments		23,771			27,139			26,708			28,926			20,550			3,221		16	%		106,544			81,411			25,133			31	%
Total 1	$	599,248		$	939,939		$	414,610		$	196,093		$	666,977		$	(67,729	)	(10	%)	$	2,149,890		$	1,657,605		$	492,285			30	%

Discover Financial Services
U.S. Card Segment
Managed Basis 8
(unaudited, dollars in thousands)
	Quarter Ended																					Year Ended
	Nov 30, 2009			Aug 31, 2009			May 31, 2009			Feb 28, 2009			Nov 30, 2008			Nov 30, 2009 vs Nov 30, 2008						Nov 30, 2009			Nov 30, 2008			2009 vs 2008
Earnings Summary
Interest Income	$	1,585,612		$	1,663,886		$	1,607,114		$	1,603,362		$	1,680,925		$	(95,313	)		(6	%)	$	6,459,974		$	6,542,664		$	(82,690	)		(1	%)
Interest Expense		403,266			392,592			414,002			438,338			602,386			(199,120	)		(33	%)		1,648,198			2,356,836			(708,638	)		(30	%)
Net Interest Income		1,182,346			1,271,294			1,193,112			1,165,024			1,078,539			103,807			10	%		4,811,776			4,185,828			625,948			15	%
Other Income 1		924,499			1,055,529			834,630			863,223			1,234,100			(309,601	)		(25	%)		3,677,881			2,773,896			903,985			33	%
Revenue Net of Interest Expense		2,106,845			2,326,823			2,027,742			2,028,247			2,312,639			(205,794	)		(9	%)		8,489,657			6,959,724			1,529,933			22	%
Provision for Loan Losses		989,009			924,427			1,111,232			1,333,673			1,105,971			(116,962	)		(11	%)		4,358,341			3,068,604			1,289,737			42	%
Total Other Expense		542,359			489,596			528,608			527,407			560,241			(17,882	)		(3	%)		2,087,970			2,314,926			(226,956	)		(10	%)
Income Before Income Taxes  1	$	575,477		$	912,800		$	387,902		$	167,167		$	646,427		$	(70,950	)		(11	%)	$	2,043,346		$	1,576,194		$	467,152			30	%
Net Yield on Managed Loan Receivables		9.37	%		9.90	%		9.26	%		9.11	%		8.55	%		82		bps				9.41	%		8.54	%		87		bps
Pretax Return on Managed Loan Receivables  1		4.56	%		7.10	%		3.01	%		1.31	%		5.13	%		(57	)	bps				4.00	%		3.22	%		78		bps
Loan Receivables
Total Loans - Managed	$	50,860,372		$	50,903,845		$	51,032,382		$	50,888,704		$	51,095,278		$	(234,906	)		(0	%)	$	50,860,372		$	51,095,278		$	(234,906	)		(0	%)
Average Total Loans - Managed	$	50,590,846		$	50,971,056		$	51,132,761		$	51,877,845		$	50,707,090		$	(116,244	)		(0	%)	$	51,140,614		$	49,011,148		$	2,129,466			4	%
Managed Interest Yield		12.34	%		12.73	%		12.19	%		12.17	%		12.65	%		(31	)	bps				12.36	%		12.61	%		(25	)	bps
Managed Net Principal Charge-off Rate		8.43	%		8.39	%		7.79	%		6.48	%		5.48	%		295		bps				7.77	%		5.01	%		276		bps
Managed Delinquency Rate (over 30 days)		5.31	%		5.10	%		5.08	%		5.25	%		4.56	%		75		bps				5.31	%		4.56	%		75		bps
Managed Delinquency Rate (over 90 days)		2.78	%		2.60	%		2.73	%		2.69	%		2.17	%		61		bps				2.78	%		2.17	%		61		bps
Credit Card Loans
Credit Card Loans - Managed	$	47,465,590		$	48,135,639		$	48,903,632		$	49,011,177		$	49,692,974		$	(2,227,384	)		(4	%)	$	47,465,590		$	49,692,974		$	(2,227,384	)		(4	%)
Average Credit Card Loans - Managed	$	47,429,775		$	48,641,890		$	49,108,321		$	50,254,235		$	49,420,412		$	(1,990,637	)		(4	%)	$	48,854,822		$	48,229,519		$	625,303			1	%
Managed Interest Yield		12.75	%		12.99	%		12.37	%		12.28	%		12.72	%		3		bps				12.59	%		12.65	%		(6	)	bps
Managed Net Principal Charge-off Rate		8.81	%		8.63	%		7.99	%		6.61	%		5.59	%		322		bps				8.00	%		5.07	%		293		bps
Managed Delinquency Rate (over 30 days)		5.60	%		5.31	%		5.23	%		5.41	%		4.66	%		94		bps				5.60	%		4.66	%		94		bps
Managed Delinquency Rate (over 90 days)		2.94	%		2.72	%		2.82	%		2.78	%		2.22	%		72		bps				2.94	%		2.22	%		72		bps
Total Discover Card Volume	$	23,335,440		$	23,955,402		$	24,336,751		$	23,964,577		$	25,318,553		$	(1,983,113	)		(8	%)	$	95,592,170		$	105,734,055		$	(10,141,885	)		(10	%)
Discover Card Sales Volume	$	21,903,694		$	22,768,927		$	21,494,174		$	21,293,757		$	22,025,264		$	(121,570	)		(1	%)	$	87,460,552		$	92,239,779		$	(4,779,227	)		(5	%)

Discover Financial Services
Third-Party Payments Segment
(unaudited, dollars in thousands)
	Quarter Ended															Year Ended
	Nov 30, 2009		Aug 31, 2009		May 31, 2009		Feb 28, 2009		Nov 30, 2008		Nov 30, 2009 vs Nov 30, 2008					Nov 30, 2009		Nov 30, 2008		2009 vs 2008
Earnings Summary
Interest Income	$	78	$	195	$	338	$	487	$	1,342	$	(1,264	)	(94	%)	$	1,098	$	3,165	$	(2,067	)	(65	%)
Interest Expense		32		50		61		79		64		(32	)	(50	%)		222		83		139		167	%
Net Interest Income		46		145		277		408		1,278		(1,232	)	(96	%)		876		3,082		(2,206	)	(72	%)
Other Income		59,873		61,236		58,451		60,234		53,113		6,760		13	%		239,794		179,200		60,594		34	%
Revenue Net of Interest Expense		59,919		61,381		58,728		60,642		54,391		5,528		10	%		240,670		182,282		58,388		32	%
Provision for Loan Losses		-		-		-		-		-		-		NM			-		-		-		NM
Total Other Expense		36,148		34,242		32,020		31,716		33,841		2,307		7	%		134,126		100,871		33,255		33	%
Income Before Income Taxes	$	23,771	$	27,139	$	26,708	$	28,926	$	20,550	$	3,221		16	%	$	106,544	$	81,411	$	25,133		31	%
Volume
PULSE Network	$	24,667,926	$	28,051,978	$	29,128,044	$	27,454,173	$	25,033,235	$	(365,309	)	(1	%)	$	109,302,121	$	106,012,108	$	3,290,013		3	%
Third-Party Issuers		1,522,269		1,446,308		1,340,532		1,362,446		1,538,013		(15,744	)	(1	%)		5,671,555		6,398,579		(727,024	)	(11	%)
Diners Club International 6		7,172,809		6,465,990		6,240,604		6,293,574		7,457,893		(285,566	)	(4	%)		26,172,977		12,685,690		13,486,805		106	%
Total Third-Party Payments	$	33,363,004	$	35,964,276	$	36,709,180	$	35,110,193	$	34,029,141	$	(666,619	)	(2	%)	$	141,146,653	$	125,096,377	$	16,049,794		13	%
Transactions Processed on PULSE Network (000's)		676,817		753,201		762,175		686,527		644,045		32,772		5	%		2,878,720		2,682,312		196,408		7	%

1  The quarters ended November 30, 2008, February 28, 2009, May 31, 2009, August 31, 2009 and November 30, 2009 include $864 million pre-tax (estimated $535 million after-tax), $475 million pre-tax (estimated $297 million after-tax), $473 million pre-tax (estimated $295 million after-tax), $472 million pre-tax (estimated $287 million after-tax), and $472 million (estimated $285 million after-tax), respectively related to the Visa/Mastercard anti-trust litigation settlement.

2   The year ended November 30, 2008 includes a loss from discontinued operations, net of tax, of $135 million consisting of a $166 million loss related to the sale of the Goldfish business partially offset by $31 million of income related to the Goldfish business operations.

3   Net income available to common stockholders equals net income less dividends and accretion of discount on shares of preferred stock.

4   Based on continuing operations except equity and ROE. Equity includes $1.2 billion of preferred stock and $7.3 billion of common equity as of November 30, 2009.

5   Earnings per share is based on net income available to common stockholders.

6   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.

7   Gross proprietary sales volume on the Discover Network.

8   Managed basis assumes that loans that have been securitized were not sold and presents financial information regarding these loans in a manner similar to the presentation of financial information regarding loans that have not been sold. See Reconciliation of GAAP to Managed Data schedule.

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

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

11 Represents total common equity divided by total managed assets less goodwill and intangibles.

12 Represents total common equity less goodwill and intangibles divided by total managed assets less goodwill and intangibles.

13 Reserve Rate (excluding guaranteed student loans), a non-GAAP measure, represents the allowance for loan losses as a percentage of total loans excluding guaranteed student loans. The Company believes that a reserve rate excluding the government guaranteed portion of student loans is a more meaningful valuation to investors of the portion of the portfolio that has a risk of loss. For a corresponding reconciliation of loans excluding the guaranteed portion of student loans to a GAAP financial measure, see Reconciliation of GAAP to Managed Data schedule.

14 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.

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 assumes 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.

Tangible common equity ("TCE"), a non-GAAP financial measure, represents common equity less goodwill and intangibles.  A reconcilation of TCE to common equity, a GAAP financial measure, is shown on the pages that follow.  Other financial services companies may also use TCE and definitions may vary, so we advise users of this information to exercise caution in comparing TCE of different companies.  TCE, TCE as a percentage of tangible managed assets, TCE as a percentage of net managed loans and TCE per share are included because management believes that common equity excluding goodwill and intangibles is a more meaningful valuation to investors of the true net asset value of the company.

Reserve rate (excluding guaranteed student loans), a non-GAAP financial measure, represents the allowance for loan losses as a percentage of total loans excluding guaranteed student loans. A reconciliation of total loans, a GAAP financial measure, to loans excluding the guaranteed portion of student loans is shown on the pages that follow. A portion of the Company's student loans are 97% guaranteed by the federal government under the Federal Family Education Loan Program. These guaranteed student loans carry little default risk and therefore, are reserved at a significantly lower rate than the remaining portfolio. Management believes that a reserve rate excluding the government guaranteed portion of student loans is a more meaningful valuation to investors of the portion of the portfolio that has a risk of loss.

Discover Financial Services
Reconciliation of GAAP to Managed Data 8
(unaudited, dollars in thousands)
	Quarter Ended															Year Ended
	Nov 30, 2009			Aug 31, 2009			May 31, 2009			Feb 28, 2009			Nov 30, 2008			Nov 30, 2009			Nov 30, 2008
Interest Income
GAAP Basis	$	638,086		$	833,217		$	857,984		$	815,793		$	736,006		$	3,145,080		$	2,692,563
Securitization Adjustments 14		947,604			830,864			749,468			788,056			946,261			3,315,992			3,853,266
Managed Basis	$	1,585,690		$	1,664,081		$	1,607,452		$	1,603,849		$	1,682,267		$	6,461,072		$	6,545,829
Interest Expense
GAAP Basis	$	314,158		$	304,401		$	320,005		$	312,720		$	329,672		$	1,251,284		$	1,288,004
Securitization Adjustments		89,140			88,241			94,058			125,697			272,778			397,136			1,068,915
Managed Basis	$	403,298		$	392,642		$	414,063		$	438,417		$	602,450		$	1,648,420		$	2,356,919
Net Interest Income
GAAP Basis	$	323,928		$	528,816		$	537,979		$	503,073		$	406,334		$	1,893,796		$	1,404,559
Securitization Adjustments		858,464			742,623			655,410			662,359			673,483			2,918,856			2,784,351
Managed Basis	$	1,182,392		$	1,271,439		$	1,193,389		$	1,165,432		$	1,079,817		$	4,812,652		$	4,188,910
Other Income
GAAP Basis	$	1,253,559		$	1,315,960		$	1,081,120		$	1,189,956		$	1,568,901		$	4,840,595		$	4,264,458
Securitization Adjustments		(269,187	)		(199,195	)		(188,039	)		(266,499	)		(281,688	)		(922,920	)		(1,311,362	)
Managed Basis	$	984,372		$	1,116,765		$	893,081		$	923,457		$	1,287,213		$	3,917,675		$	2,953,096
Revenue Net of Interest Expense
GAAP Basis	$	1,577,487		$	1,844,776		$	1,619,099		$	1,693,029		$	1,975,235		$	6,734,391		$	5,669,017
Securitization Adjustments		589,277			543,428			467,371			395,860			391,795			1,995,936			1,472,989
Managed Basis	$	2,166,764		$	2,388,204		$	2,086,470		$	2,088,889		$	2,367,030		$	8,730,327		$	7,142,006
Provision for Loan Losses
GAAP Basis	$	399,732		$	380,999		$	643,861		$	937,813		$	714,176		$	2,362,405		$	1,595,615
Securitization Adjustments		589,277			543,428			467,371			395,860			391,795			1,995,936			1,472,989
Managed Basis	$	989,009		$	924,427		$	1,111,232		$	1,333,673		$	1,105,971		$	4,358,341		$	3,068,604
Total Assets
GAAP Basis	$	46,010,146		$	42,698,290		$	41,518,288		$	40,606,518		$	39,892,382		$	46,010,146		$	39,892,382
Securitization Adjustments		26,968,289			25,096,019			23,328,536			22,625,139			25,728,094			26,968,289			25,728,094
Managed Basis	$	72,978,435		$	67,794,309		$	64,846,824		$	63,231,657		$	65,620,476		$	72,978,435		$	65,620,476
Tangible Assets
GAAP Basis	$	45,559,089		$	42,245,313		$	41,063,390		$	40,149,699		$	39,433,642		$	45,559,089		$	39,433,642
Securitization Adjustments		26,968,289			25,096,019			23,328,536			22,625,139			25,728,094			26,968,289			25,728,094
Managed Basis	$	72,527,378		$	67,341,332		$	64,391,926		$	62,774,838		$	65,161,736		$	72,527,378		$	65,161,736
Total Common Equity	$	7,308,689		$	7,231,463		$	6,263,661		$	5,999,351		$	5,915,823		$	7,308,689		$	5,915,823
Less: Goodwill		255,421			255,421			255,421			255,421			255,421			255,421			255,421
Less: Intangibles		195,636			197,556			199,477			201,398			203,319			195,636			203,319
Tangible Common Equity	$	6,857,632		$	6,778,486		$	5,808,763		$	5,542,532		$	5,457,083		$	6,857,632		$	5,457,083
Total Common Equity/Tangible Assets
GAAP Basis		16.0	%		17.1	%		15.3	%		14.9	%		15.0	%		16.0	%		15.0	%
Securitization Adjustments		27.1	%		28.8	%		26.8	%		26.5	%		23.0	%		27.1	%		23.0	%
Managed Basis		10.1	%		10.7	%		9.7	%		9.6	%		9.1	%		10.1	%		9.1	%
Tangible Common Equity/Tangible Assets
GAAP Basis		15.1	%		16.0	%		14.1	%		13.8	%		13.8	%		15.1	%		13.8	%
Securitization Adjustments		25.4	%		27.0	%		24.9	%		24.5	%		21.2	%		25.4	%		21.2	%
Managed Basis		9.5	%		10.1	%		9.0	%		8.8	%		8.4	%		9.5	%		8.4	%
Total Common Equity/Net Loans
GAAP Basis		33.4	%		30.6	%		24.6	%		22.9	%		24.8	%		33.4	%		24.8	%
Securitization Adjustments		26.8	%		28.5	%		26.6	%		26.3	%		22.9	%		26.8	%		22.9	%
Managed Basis		14.9	%		14.7	%		12.8	%		12.2	%		11.9	%		14.9	%		11.9	%

Discover Financial Services

Reconciliation of GAAP to Managed Data 8

(unaudited, dollars in thousands)

		Quarter Ended															Year Ended
		Nov 30, 2009			Aug 31, 2009			May 31, 2009			Feb 28, 2009			Nov 30, 2008			Nov 30, 2009			Nov 30, 2008
Tangible Common Equity/Net Loans
GAAP Basis		31.4	%		28.7	%		22.8	%		21.2	%		22.9	%		31.4	%		22.9	%
Securitization Adjustments		25.2	%		26.7	%		24.6	%		24.3	%		21.1	%		25.2	%		21.1	%
Managed Basis		14.0	%		13.8	%		11.8	%		11.3	%		11.0	%		14.0	%		11.0	%
Book Value	$	15.59		$	15.45		$	15.40		$	12.46		$	12.32		$	15.59		$	12.32
Less: Goodwill		(0.47	)		(0.47	)		(0.53	)		(0.53	)		(0.53	)		(0.47	)		(0.53	)
Less: Intangibles		(0.36	)		(0.36	)		(0.41	)		(0.42	)		(0.42	)		(0.36	)		(0.42	)
Less: Preferred Stock		(2.13	)		(2.13	)		(2.40	)		0.00			0.00			(2.13	)		0.00
Tangible Common Equity per share	$	12.63		$	12.49		$	12.06		$	11.51		$	11.37		$	12.63		$	11.37
Loan Receivables
Total Loans
GAAP Basis	$	23,625,084		$	25,489,809		$	27,441,514		$	28,034,208		$	25,216,611		$	23,625,084		$	25,216,611
Securitization Adjustments		27,235,288			25,414,036			23,590,868			22,854,496			25,878,667			27,235,288			25,878,667
Managed Basis	$	50,860,372		$	50,903,845		$	51,032,382		$	50,888,704		$	51,095,278		$	50,860,372		$	51,095,278
Total Loans - GAAP Basis	$	23,625,084			25,489,809			27,441,514		$	28,034,208		$	25,216,611		$	23,625,084		$	25,216,611
Less: Guaranteed portion of student loans		1,274,453			889,963			448,648			334,847			152,135			1,274,453			152,135
Total Loans excluding guaranteed portion of student loans	$	22,350,631		$	24,599,846		$	26,992,866		$	27,699,361		$	25,064,476		$	22,350,631		$	25,064,476
Average Total Loans
GAAP Basis	$	23,835,598		$	26,380,203		$	28,257,484		$	27,733,143		$	22,945,494		$	26,552,574		$	21,348,493
Securitization Adjustments		26,755,248			24,590,853			22,875,277			24,144,702			27,761,596			24,588,040			27,662,655
Managed Basis	$	50,590,846		$	50,971,056		$	51,132,761		$	51,877,845		$	50,707,090		$	51,140,614		$	49,011,148
Interest Yield
GAAP Basis		10.25	%		12.10	%		11.54	%		11.24	%		11.36	%		11.31	%		10.89	%
Securitization Adjustments		14.21	%		13.40	%		13.00	%		13.24	%		13.71	%		13.49	%		13.93	%
Managed Basis		12.34	%		12.73	%		12.19	%		12.17	%		12.65	%		12.36	%		12.61	%
Net Yield on Loan Receivables
GAAP Basis		5.45	%		7.95	%		7.55	%		7.36	%		7.12	%		7.13	%		6.58	%
Securitization Adjustments		12.87	%		11.98	%		11.37	%		11.13	%		9.76	%		11.87	%		10.07	%
Managed Basis		9.37	%		9.90	%		9.26	%		9.11	%		8.56	%		9.41	%		8.55	%
Net Principal Charge-off Rate
GAAP Basis		7.98	%		8.05	%		7.53	%		6.34	%		5.25	%		7.45	%		4.59	%
Securitization Adjustments		8.83	%		8.77	%		8.11	%		6.65	%		5.68	%		8.12	%		5.32	%
Managed Basis		8.43	%		8.39	%		7.79	%		6.48	%		5.48	%		7.77	%		5.01	%
Delinquency Rate (over 30 days)
GAAP Basis		4.92	%		4.86	%		4.87	%		5.04	%		4.35	%		4.92	%		4.35	%
Securitization Adjustments		5.65	%		5.35	%		5.32	%		5.52	%		4.77	%		5.65	%		4.77	%
Managed Basis		5.31	%		5.10	%		5.08	%		5.25	%		4.56	%		5.31	%		4.56	%
Delinquency Rate (over 90 days)
GAAP Basis		2.58	%		2.46	%		2.60	%		2.57	%		2.06	%		2.58	%		2.06	%
Securitization Adjustments		2.95	%		2.74	%		2.88	%		2.83	%		2.27	%		2.95	%		2.27	%
Managed Basis		2.78	%		2.60	%		2.73	%		2.69	%		2.17	%		2.78	%		2.17	%
Credit Card Loans
Credit Card Loans
GAAP Basis	$	20,230,302		$	22,721,603		$	25,312,764		$	26,156,681		$	23,814,307		$	20,230,302		$	23,814,307
Securitization Adjustments		27,235,288			25,414,036			23,590,868			22,854,496			25,878,667			27,235,288			25,878,667
Managed Basis	$	47,465,590		$	48,135,639		$	48,903,632		$	49,011,177		$	49,692,974		$	47,465,590		$	49,692,974
Average Credit Card Loans
GAAP Basis	$	20,674,527		$	24,051,037		$	26,233,044		$	26,109,533		$	21,658,816		$	24,266,782		$	20,566,864
Securitization Adjustments		26,755,248			24,590,853			22,875,277			24,144,702			27,761,596			24,588,040			27,662,655
Managed Basis	$	47,429,775		$	48,641,890		$	49,108,321		$	50,254,235		$	49,420,412		$	48,854,822		$	48,229,519

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Reconciliation of GAAP to Managed Data 8

(unaudited, dollars in thousands)

	Quarter Ended										Year Ended
	Nov 30, 2009		Aug 31, 2009		May 31, 2009		Feb 28, 2009		Nov 30, 2008		Nov 30, 2009		Nov 30, 2008
Interest Yield
GAAP Basis	10.86	%	12.56	%	11.81	%	11.39	%	11.45	%	11.69	%	10.92	%
Securitization Adjustments	14.21	%	13.40	%	13.00	%	13.24	%	13.71	%	13.49	%	13.93	%
Managed Basis	12.75	%	12.99	%	12.37	%	12.28	%	12.72	%	12.59	%	12.65	%
Net Principal Charge-off Rate
GAAP Basis	8.77	%	8.48	%	7.88	%	6.58	%	5.47	%	7.87	%	4.73	%
Securitization Adjustments	8.83	%	8.77	%	8.11	%	6.65	%	5.68	%	8.12	%	5.32	%
Managed Basis	8.81	%	8.63	%	7.99	%	6.61	%	5.59	%	8.00	%	5.07	%
Delinquency Rate (over 30 days)
GAAP Basis	5.52	%	5.27	%	5.15	%	5.32	%	4.55	%	5.52	%	4.55	%
Securitization Adjustments	5.65	%	5.35	%	5.32	%	5.52	%	4.77	%	5.65	%	4.77	%
Managed Basis	5.60	%	5.31	%	5.23	%	5.41	%	4.66	%	5.60	%	4.66	%
Delinquency Rate (over 90 days)
GAAP Basis	2.92	%	2.70	%	2.77	%	2.73	%	2.16	%	2.92	%	2.16	%
Securitization Adjustments	2.95	%	2.74	%	2.88	%	2.83	%	2.27	%	2.95	%	2.27	%
Managed Basis	2.94	%	2.72	%	2.82	%	2.78	%	2.22	%	2.94	%	2.22	%
Return on Loan Receivables
GAAP Basis	6.24	%	8.68	%	3.17	%	1.76	%	7.78	%	4.87	%	4.98	%
Securitization Adjustments	5.56	%	9.32	%	3.92	%	2.02	%	6.43	%	5.26	%	3.84	%
Managed Basis	2.94	%	4.49	%	1.75	%	0.94	%	3.52	%	2.53	%	2.17	%