Discover Financial Services Board of Directors Approves Repurchase of up to $1.1 Billion of Common Stock, Declares Common and Preferred Stock Dividends

Discover Financial Services (NYSE: DFS) announced today that its Board of Directors has approved a new $1.1 billion share repurchase program, having suspended share repurchases since March 2020 in response to the economic recession. The new program expires on December 31, 2021, and can be terminated at any time.

The company expects to repurchase shares from time to time subject to the company’s repurchase program limit, its capital plan, market conditions and other factors, including legal and regulatory restrictions and required approvals, if any. The timing and exact amount of repurchases under the new repurchase program will be based on market conditions and other factors.

The Board of Directors of Discover Financial Services declared a semi-annual cash dividend on its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series C, in the amount of $2,750 per share. The dividend equals $27.50 per depositary share, each representing 1/100th interest in a share of the Series C Preferred Stock. The dividend will be payable on April 30, 2021, to the holders of record at the close of business on April 15, 2021.

The Board of Directors of Discover Financial Services declared a semi-annual cash dividend (which includes a one-time payment for a long first dividend period) on its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series D, in the amount of $4,611 per share. The dividend equals $46.11 per depositary share (includes $30.63 semi-annual dividend plus $15.48 to account for the long first dividend period), each representing 1/100th interest in a share of the Series D Preferred Stock. The dividend will be payable on March 23, 2021, to the holders of record at the close of business on March 8, 2021.

The Board of Directors of Discover Financial Services declared a quarterly cash dividend of $0.44 per share of common stock payable on March 4, 2021, to holders of record at the close of business on February 18, 2021.

About Discover

Discover Financial Services (NYSE: DFS) is a digital banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover card, America's cash rewards pioneer, and offers private student loans, personal loans, home loans, checking and savings accounts and certificates of deposit through its banking business. It operates the Discover Global Network comprised of Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance around the world. For more information, visit www.discover.com/company.

This press release contains forward-looking statements. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made, which reflect management’s estimates, projections, expectations or beliefs at that time, and which are subject to significant risks and uncertainties that may cause actual results to differ materially. The amount and timing of any future dividends are subject to the discretion of the Board of Directors of Discover Financial Services and will depend upon the company’s results of operations, financial condition, cash requirements, future prospects, market conditions, capital requirements, applicable law and regulations (including federal securities laws and federal banking regulations) and other factors, are subject to regulatory limitations and may become subject to regulatory approval or conditions. Additional factors impacting dividends and share repurchases can be found in "Business - Supervision and Regulation", "Risk Factors” and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's annual report on Form 10-K for the year ended December 31, 2019 and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors” in the company’s quarterly report on Form 10-Q for the quarter ended September 30, 2020, which are filed with the SEC and available at the SEC's website (www.sec.gov). The Company does not undertake to update or revise forward-looking statements as more information becomes available.

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