Discover 2011 Annual Report Download - page 79

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67
Rate/Volume Variance Analysis(1)
Increase/(decrease) in net interest income due to changes in:
Interest-earning assets:
Cash and cash equivalents
Restricted cash
Other short-term investments
Investment securities
Loan receivables:
Credit card
Personal loans
Federal student loans
Private student loans
PCI student loans
Other
Total loan receivables
Total interest income
Interest-bearing liabilities:
Interest-bearing deposits:
Time deposits
Money market deposits
Other interest-bearing savings deposits
Total interest-bearing deposits
Borrowings:
Short-term borrowings
Securitized borrowings
Other long-term borrowings
Total borrowings
Total interest expense
Net interest income
2011 vs. 2010
Volume
$ (13,959)
(1,377)
(881)
44,085
(52,366)
75,537
(15,623)
55,115
225,096
(1,319)
286,440
314,308
(65,703)
4,597
41,626
(19,480)
134
(21,427)
(16,545)
(37,838)
(57,318)
$ 371,626
Rate
$ (791)
(370)
85
(10,942)
(129,548)
8,891
5,088
12,674
—
(474)
(103,369)
(115,387)
(127,237)
(6,028)
(10,983)
(144,248)
(2)
84,035
19,097
103,130
(41,118)
$ (74,269)
Total
$ (14,750)
(1,747)
(796)
33,143
(181,914)
84,428
(10,535)
67,789
225,096
(1,793)
183,071
198,921
(192,940)
(1,431)
30,643
(163,728)
132
62,608
2,552
65,292
(98,436)
$ 297,357
2010 vs. 2009
Volume
$ 4,045
(2,085)
(3,379)
28,364
(412,055)
42,066
15,024
25,915
—
(711)
(329,761)
(302,816)
107,010
3,234
44,503
154,747
(2,123)
(86,431)
53,016
(35,538)
119,209
$ (422,025)
Rate
$ (29,750)
(12,691)
1,931
(27,372)
78,754
340
(1,283)
4,395
—
(442)
81,764
13,882
(181,143)
(9,391)
(793)
(191,327)
(414)
4,751
45,270
49,607
(141,720)
$ 155,602
Total
$ (25,705)
(14,776)
(1,448)
992
(333,301)
42,406
13,741
30,310
—
(1,153)
(247,997)
(288,934)
(74,133)
(6,157)
43,710
(36,580)
(2,537)
(81,680)
98,286
14,069
(22,511)
$ (266,423)
(1) The rate/volume variance for each category has been allocated on a consistent basis between rate and volume variances between November 30, 2011,
November 30, 2010 and November 30, 2009 on a non-GAAP as-adjusted basis, based on the percentage of the rate or volume variance to the sum of the
two absolute variances.
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