RIVERWOODS, Ill.--(BUSINESS WIRE)--

Discover Financial Services (NYSE: DFS) today announced that the company has received the results of the Federal Reserve’s 2020 supervisory stress testing and capital plan review exercise. Discover’s preliminary stress capital buffer (SCB) has been set at 3.5%. The final SCB for Discover and other firms subject to the Federal Reserve’s capital plan rule is expected to be finalized in August and will take effect on October 1, 2020.

With regard to capital actions, the company plans to continue its $0.44 per share common stock dividend in the third quarter, subject to approval by its Board of Directors. The company suspended its share repurchase program in March 2020 in recognition of the economic environment at that time and will not repurchase shares during the third quarter of 2020. Thereafter, the company will determine its share repurchase strategy, subject to the SCB and any other regulatory limitations, after consideration of company results and prevailing and expected economic conditions.

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 .

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, which speak to our expected business and financial performance, among other matters, contain words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” and similar expressions. 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 and share repurchases are subject to the discretion of the company’s board of directors and will depend upon a number of factors, including 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 such as the effect of the coronavirus disease 2019 ("COVID-19") pandemic and measures taken to mitigate the pandemic and their impact on the aforementioned factors as well as on our credit quality, general economic and financial markets, changes in economic variables, such as the availability of consumer credit, the housing market, energy costs, the number and size of personal bankruptcy filings, the rate of unemployment, the levels of consumer confidence and consumer debt, and investor sentiment, and may be 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 under “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 March 31, 2020, which are filed with the SEC and available at the SEC's website (). The Company does not undertake to update or revise forward-looking statements as more information becomes available.

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