Discover Receives Non-Objection from Federal Reserve with Respect to Proposed Capital Actions Through June 30, 2018
June 28 2017 - 4:45PM
Business Wire
Company Announces Plans to Increase
Quarterly Dividend to $0.35 Per Share and to Repurchase up to $2.23
Billion of Common Stock
Discover Financial Services (NYSE: DFS) today announced that the
Board of Governors of the Federal Reserve System notified Discover
that it has no objections to the capital actions through June 30,
2018 as set forth in the company’s capital plan. The plan includes
an increase in the company’s next quarterly dividend from $0.30 to
$0.35 per share of common stock and share repurchases of up to
$2.23 billion during the four quarters ending June 30, 2018.
The board of directors is scheduled to approve the dividend
increase and a new share repurchase program at its July meeting.
The company’s planned new repurchase program will replace the
existing program.
The timing and exact amount of repurchases will be consistent
with the company’s capital plan and will be based on market
conditions and other factors, subject to legal or regulatory
restrictions and approvals.
The results of Discover’s company-run stress test conducted in
accordance with the Dodd-Frank Wall Street Reform and Consumer
Protection Act, including Discover’s estimates of pre-provision net
revenue, other revenue, loan and other losses, net income before
taxes and regulatory capital ratios for both Discover Financial
Services and Discover Bank, as well as additional information on
the methodologies used in conducting the stress test, may be found
on the Investor Relations page of Discover’s corporate website at
www.discover.com/company under Disclosures.
About Discover
Discover Financial Services (NYSE: DFS) is a direct 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
equity loans, checking and savings accounts and certificates of
deposit through its direct banking business. It operates the
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 in more than 185 countries and territories. 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 and share
repurchases are subject to the discretion of the company’s board of
directors 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, 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, 2016, and under “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” in the company’s
Quarterly Report on Form 10-Q for the quarter ended March 31, 2017,
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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170628006441/en/
Discover Financial ServicesInvestor
Contact:Tim SchmidtInvestor
Relations224-405-4996timothyschmidt@discover.comorMedia Contact:Jon DrummondPublic
Relations224-405-1888jondrummond@discover.com
Discover Financial Servi... (NYSE:DFS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Discover Financial Servi... (NYSE:DFS)
Historical Stock Chart
From Apr 2023 to Apr 2024