Discover 2009 Annual Report Download - page 57

Discover Financial Services
Selected Historical Data
For the Years Ended November 30,
2009 2008 2007 2006 2005
(dollars in thousands, except per share amounts)
Statement of Income Data:
Interest income...................................................................................... $ 3,145,080 $ 2,692,563 $ 2,584,402 $ 2,209,192 $ 2,035,263
Interest expense .................................................................................... 1,251,284 1,288,004 1,223,270 836,280 718,213
Net interest income ............................................................................ 1,893,796 1,404,559 1,361,132 1,372,912 1,317,050
Other income(1) ..................................................................................... 4,840,595 4,264,458 3,376,682 3,368,664 2,820,128
Revenue net of interest expense ............................................................ 6,734,391 5,669,017 4,737,814 4,741,576 4,137,178
Provision for loan losses ......................................................................... 2,362,405 1,595,615 733,887 606,765 816,197
Other expense ...................................................................................... 2,251,088 2,415,797 2,478,214 2,467,058 2,364,991
Income before income tax expense ....................................................... 2,120,898 1,657,605 1,525,713 1,667,753 955,990
Income tax expense ............................................................................... 844,713 594,692 561,514 535,563 356,434
Income from continuing operations ....................................................... 1,276,185 1,062,913 964,199 1,132,190 599,556
Loss from discontinued operations, net of tax(2)........................................... — (135,163) (375,569) (55,574) (21,641)
Net income(1)..................................................................................... $ 1,276,185 $ 927,750 $ 588,630 $ 1,076,616 $ 577,915
Net income available to common stockholders........................................ $ 1,222,930 $ 927,750 $ 588,630 $ 1,076,616 $ 577,915
Statement of Financial Condition Data (as of):
Loan receivables ................................................................................... $23,625,084 $25,216,611 $20,831,117 $20,790,244 $20,611,306
Total assets .......................................................................................... $46,020,987 $39,892,382 $37,376,105 $29,064,898 $26,942,109
Total stockholders’ equity........................................................................ $ 8,435,547 $ 5,915,823 $ 5,599,422 $ 5,774,772 $ 4,600,449
Allowance for loan losses ....................................................................... $ 1,757,899 $ 1,374,585 $ 759,925 $ 703,917 $ 795,722
Long-term borrowings............................................................................ $ 2,428,101 $ 1,735,383 $ 2,134,093 $ 819,496 $ 820,529
Total average interest-earning assets ........................................................ $39,989,758 $33,409,965 $28,267,731 $22,880,808 $22,245,351
Total average interest-bearing liabilities .................................................... $31,609,777 $27,644,581 $23,211,976 $17,449,405 $17,378,284
Per Share of Common Stock:
Basic EPS from continuing operations ....................................................... $ 2.42 $ 2.22 $ 2.02 $ 2.37 $ 1.26
Diluted EPS from continuing operations..................................................... $ 2.39 $ 2.20 $ 2.01 $ 2.37 $ 1.26
Weighted average shares outstanding (000’s)(3) ......................................... 504,550 479,335 477,328 477,236 477,236
Weighted average shares outstanding (fully diluted) (000’s)(3) ...................... 511,803 483,470 478,879 477,236 477,236
Cash dividends declared ........................................................................ $ 0.12 $ 0.24 $ 0.06 — —
Dividend payout ratio ............................................................................ 4.96% 12.40% 4.88% — —
Ratios:
Net interest margin................................................................................ 4.74% 4.20% 4.82% 6.00% 5.92%
Return on average equity........................................................................ 17% 16% 10% 20% 13%
Return on average assets........................................................................ 3.02% 2.52% 1.74% 3.93% 2.29%
Average stockholders’ equity to average total assets ................................... 18% 15% 17% 20% 17%
(1) The years ended November 30, 2009 and 2008 include $1.9 billion pretax ($1.2 billion after tax) and $0.9 billion pretax ($0.5 billion after tax), respectively, of income related to the Visa and
MasterCard antitrust litigation settlement, which is included in our Direct Banking segment, formerly referred to as our U.S. Card segment. See “Legal Proceedings.”
(2) 2007 includes a $391 million pretax ($279 million after tax) non-cash impairment charge to write-down the intangible assets and goodwill of the Goldfish business, which was sold on March 31,
2008.
(3) On June 30, 2007, Morgan Stanley distributed to Morgan Stanley stockholders one share of our common stock for every two shares of Morgan Stanley common stock held on June 18, 2007. As a
result, on July 2, 2007, we had 477,235,927 shares of common stock outstanding and this share amount is being utilized for the calculation of basic earnings per share (“EPS”) for all periods
presented prior to the date of the spin-off. For all periods prior to the spin-off date, the same number of shares is being used for diluted EPS as for basic EPS as none of our common stock was
traded prior to July 2, 2007 and none of our equity awards were outstanding for the prior periods.
-45-