Discover Financial Services Declares Quarterly Dividend for Preferred and Common Stock

Discover Financial Services (NYSE: DFS) announced today that its Board of Directors has approved a new $2.5 billion share repurchase program and increased the quarterly common stock dividend from $0.28 to $0.30 per share. The new share repurchase program expires on October 31, 2017, and may be terminated at any time. This is a five quarter share repurchase program and replaces the prior five-quarter, $2.2 billion program. The company expects to make share repurchases from time to time subject to the company’s capital plan, market conditions and other factors, including legal and regulatory restrictions and required approvals.

The Board of Directors declared a quarterly cash dividend of $0.30 per share of common stock payable on August 18, 2016, to holders of record at the close of business on August 4, 2016.

The Board of Directors of Discover Financial Services also declared a quarterly cash dividend on its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B, in the amount of $16.25 per share. The dividend equals $0.40625 per depositary share, each representing 1/40th interest in a share of the Series B Preferred Stock. The dividend will be payable on August 30, 2016, to the holders of record at the close of business on August 15, 2016.

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.

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Discover Financial ServicesInvestor Contact:Bill FranklinInvestor [e-mail] Contact:Jon DrummondPublic [e-mail]