Discover 2010 Annual Report Download

Download and view the complete annual report

Please find the complete 2010 Discover annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 185

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185

2010 ANNUAL REPORT
FUTURE OF PROMISE
HISTORY OF SUCCESS
D I S C O V E R • 2 0 1 0 A N N U A L R E P O R T

Table of contents

  • Page 1
    DI SCO VE R • 2 010 AN NUA L RE PO RT HISTORY OF SUCCESS FUTURE OF PROMISE 2 0 10 A N N U A L R E P O R T

  • Page 2
    ... rewards cards Ã"ää{ Successful conclusion for Department of Justice case enables payments strategy Ã"ääx Ã"ääÈ Reciprocal agreement with JCB First merchant acquiring agreement GE Consumer Finance issues cards on Discover network Discover Bank offers banking products online Acquired PULSE...

  • Page 3
    Becoming the leading direct banking and payments company. DISCOVER CARD CONSUMER DEPOSITS CONSUMER LOANS PULSE DEBIT NETWORK DINERS CLUB INTERNATIONAL DISCOVER NETWORK

  • Page 4
    ... as personal loans, student loans, prepaid cards and deposit products. Payment Services The Payment Services segment consists of: PULSE, one of the nation's leading ATM/debit networks; Diners Club International, a global payments network; and our third-party issuing business, which includes credit...

  • Page 5
    ...net charge-off rate of 7.6%, with steady improvement throughout the year, ending at 6.6% in the fourth quarter of 2010. • $248 billion in volume on our Discover, PULSE and Diners Club International networks, up 7% from the prior year. • A 33% increase in pre-tax profit from our Payment Services...

  • Page 6
    ...recovery, but also the payback from our investments to expand merchant acceptance, enhance our industry-leading rewards programs and further strengthen the Discover brand and we activated more international outlets as well, making it possible to use the Discover card at more places around the world...

  • Page 7
    ... services companies that have sound, customer-friendly practices and work constructively with regulators and legislators will weather changes well. In addition, our focus on direct banking and payment services is the right strategy for the future, and our financial strength and business model...

  • Page 8
    ... of the trend toward direct banking in financial services to deliver more value to consumers in credit cards and other direct banking products. I am particularly excited about Discover's acquisition of The Student Loan Corporation (SLC). One of the best investments an individual can make is in...

  • Page 9
    ... is clear that Discover was right to play offense on acceptance, direct-to-consumer deposits, student lending and global network expansion. Our strategic moves over the past few years have placed us well on our way to becoming the leading direct banking and payments company. We plan to continue down...

  • Page 10
    ... fiscal year ended November 30, 2010 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-33378 ' DISCOVER FINANCIAL SERVICES (Exact name of registrant as specified in its charter) Delaware (State or...

  • Page 11
    ... not limited to: Discover®, PULSE®, Cashback Bonus®, Discover® More® Card, Discover® MotivaSM Card, Discover® Open Road® Card, Discover® Network and Diners Club International®. All other trademarks, trade names and service marks included in this annual report on Form 10-K are the property...

  • Page 12
    ... ("ATM"), debit and electronic funds transfer network; and Diners Club International ("Diners Club"), our global payments network. Acquisition of The Student Loan Corporation We recently expanded our private student loan business as part of our direct banking strategy. On December 31, 2010, we...

  • Page 13
    ... fee-based products. Our credit card customers' transactions are processed over the Discover Network. Where we have a direct relationship with a merchant, which is the case with respect to our large merchants representing a majority of Discover card sales volume, we receive discount and fee revenue...

  • Page 14
    ... information regarding our deposit business, see "Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources - Funding Sources - Deposits." Payment Services PULSE network Our PULSE network is one of the nation's leading ATM/debit networks...

  • Page 15
    ... The credit card, student loan, personal loan and deposit products issued through our Direct Banking segment require significant investments in credit risk management, marketing, customer service and technology, whereas the operation of the Discover Network and our Payment Services business requires...

  • Page 16
    ... improve our product offerings and enhance our targeting and analytical models. We assess the creditworthiness of each credit card, student loan and personal loan applicant through our underwriting process. We evaluate prospective customers' applications using credit information provided by the...

  • Page 17
    ...Bonus into bigger rewards, brand-name merchandise with free shipping, Discover gift cards or a charitable donation to select charities. For customers who prefer cash, Cashback Bonus can be redeemed starting at $50 in the form of a statement credit or direct deposit to a bank account in increments of...

  • Page 18
    ... their actual account numbers; and • ShopDiscover, an online portal where customers automatically earn 5-20% Cashback Bonus when they shop at wellknown online merchants using their Discover card. Processing Services Processing services cover four functional areas: card personalization/embossing...

  • Page 19
    ... terms. Each cardmember agreement provides that the account can be used for purchases, cash advances and balance transfers. Each Discover card account is assigned a credit limit when the account is initially opened. Thereafter, individual credit limits may be increased or decreased from time to time...

  • Page 20
    ... service for our merchants, and reduced costs for us. These acquirer partners also perform credit evaluations and screen applications against unacceptable business types and the Office of Foreign Asset Control Specifically Designated Nationals list. Discover Network operates systems and processes...

  • Page 21
    ... in the U.S. as Visa and MasterCard. Merchant acceptance of the Discover card, however, has continued to increase and we are making investments to further grow acceptance both domestically and internationally. In our payment services business, we compete with other networks for volume and to attract...

  • Page 22
    ... of directors approves certain risk management policies and our risk appetite and strategic limit framework. Our board also oversees our strategic plan and appoints our Corporate Risk Officer. In addition, our board receives and reviews Federal Reserve examination reports, as well as information...

  • Page 23
    ... Risk Committee of our board of directors and chaired by our Corporate Risk Officer, that provides a forum for key members of our executive management team to review and discuss credit, market, liquidity, operational, legal and compliance and strategic risks across the company and for each business...

  • Page 24
    ... business activities that are inconsistent with our long-term goals. Our risk appetite and strategic limit structure is approved by our board of directors. Risk Categories Our risk management program is organized around six major risk categories: credit risk, market risk, liquidity risk, operational...

  • Page 25
    ... long-term strategic objectives with the risk appetite and strategic limits approved by our board of directors. Risk Management Review of Compensation Our employee compensation program is designed to appropriately balance risk and reward without encouraging imprudent risk-taking. Our Corporate Risk...

  • Page 26
    ... We operate two banking subsidiaries, each of which is in the United States. Discover Bank offers credit card loans, student loans and personal loans, as well as certificates of deposit, savings accounts and other type of deposit accounts. Discover Bank is chartered and regulated by the Office of...

  • Page 27
    ... the new standards will generally require us or our banking subsidiaries to maintain more capital, with common equity as a more predominant component, which could significantly impact our return on equity, financial condition, operations, capital position and ability to pursue business opportunities...

  • Page 28
    ...of the cost of credit, provide substantive consumer rights, prohibit discrimination in credit transactions, regulate the use of credit report information, provide financial privacy protections, require safe and sound banking operations and prohibit unfair and deceptive trade practices. State, and in...

  • Page 29
    ...The provisions applicable to the debit card market may adversely affect PULSE's business practices, network transaction volume, revenue, and prospects for future growth. For more information, see "Management's Discussion and Analysis of Financial Condition and Results of Operations - Legislative and...

  • Page 30
    ... are usually targeted against foreign countries, terrorists, international narcotics traffickers and those believed to be involved in the proliferation of weapons of mass destruction. These regulations generally require either the blocking of accounts or other property of specified individuals...

  • Page 31
    ... Operating Officer Executive Vice President and Chief Financial Officer Executive Vice President, General Counsel and Secretary Executive Vice President, President - Consumer Banking and Operations Executive Vice President, President - Payment Services Executive Vice President and Chief Credit Risk...

  • Page 32
    ..., he had been Executive Vice President, Card Programs and Chief Marketing Officer since December 2008 and Executive Vice President, Discover Network since December 2003. From 2000 to 2003, Mr. Talwar was Managing Director for our international business. Mr. Talwar held a number of positions at...

  • Page 33
    ... information in this annual report on Form 10-K in evaluating us. Our business, financial condition, cash flows and/or results of operations could be materially adversely affected by any of these risks. The trading price of our common stock could decline due to any of these risks. This annual report...

  • Page 34
    ... affect the debit card market, decrease prospects for future growth of debit products, negatively impact PULSE's transaction volume and revenue, and require costly system changes. Our transaction processing revenue was $150 million and $125 million for the years ended November 30, 2010 and 2009...

  • Page 35
    ... financial condition, cash flows and results of operations. The credit card issuing business is highly competitive. We compete with other credit card issuers on the basis of a number of factors, including brand, reputation, rewards programs, customer service, merchant acceptance, product offerings...

  • Page 36
    ...third-party issuers to issue credit and debit cards and other card products on the Discover, PULSE and Diners Club networks. Competition with other operators of payment networks is generally based on issuer interchange fees, fees paid to networks (including switch fees), merchant acceptance, network...

  • Page 37
    ... continue to offer acceptable North American merchant acceptance to Diners Club customers, we may experience decreased transaction volume, which would reduce our revenues. The long-term success of our acquisition of Diners Club depends upon achieving card acceptance across our networks, which could...

  • Page 38
    ...business and results of operations. The long-term success of our student loan business depends upon our ability to manage the credit risk, pricing, funding and expenses of a larger student loan portfolio. Our ability to maintain or increase market share is largely dependent upon our ability to offer...

  • Page 39
    ...such as market conditions, the general availability of credit to the financial services industry and our credit ratings. Disruptions, uncertainty or volatility in the capital, credit or deposit markets may limit our ability to replace maturing liabilities in a timely manner and satisfy other funding...

  • Page 40
    ... securities brokerage firms offering our deposit products. Our ability to obtain deposit funding and offer competitive interest rates on deposits is also dependent on capital levels of our bank subsidiaries. The FDIA prohibits a bank, including our subsidiary Discover Bank, from accepting brokered...

  • Page 41
    ... in the credit ratings of our securities could materially adversely affect our business and financial condition. We, along with Discover Bank, are regularly evaluated by the ratings agencies, and their ratings for our long-term debt and other securities, including asset-backed securities issued by...

  • Page 42
    ... in a decrease in the value of our investments, which could negatively impact our financial condition. Further, in an effort to increase the rate of return on our investment portfolio, we may choose new investments, which may increase our risk of loss. For example, during the fourth quarter 2010, we...

  • Page 43
    ... revenue. Our transaction volume is concentrated among large merchants, and a reduction in the number of, or rates paid by, large merchants that accept cards on the Discover Network or PULSE network could materially adversely affect our business, financial condition, results of operations and cash...

  • Page 44
    ... success of both our card issuing and payment processing businesses. Merchants are concerned with the fees charged by credit card and debit card networks. They seek to negotiate better pricing or other financial incentives as a condition to continued participation in the Discover Network and PULSE...

  • Page 45
    ... or transmitted by our customers or others. As we increase acceptance of the Discover card internationally, we may experience additional risks related to security systems. If our security systems or those of merchants, processors or other third-party service providers are compromised such that...

  • Page 46
    ...financial condition, cash flows and results of operations. As an issuer and merchant acquirer in the United States on the Discover Network, and as a holder of certain merchant agreements internationally for the Diners Club network, we may be contingently liable for certain disputed credit card sales...

  • Page 47
    ...and New York Stock Exchange in our capacity as a public company. In addition, as our payments business has expanded globally through the acquisition of Diners Club, we are subject to government regulation in countries in which our networks operate or our cards are used, either directly or indirectly...

  • Page 48
    ...our business, see "Management's Discussion and Analysis of Financial Condition and Results of Operations - Legislative and Regulatory Developments." Current and proposed regulation addressing consumer privacy and data use and security could inhibit the number of payment cards issued and increase our...

  • Page 49
    ... of certain types of security breaches, and several other states are considering similar legislation. Regulation of privacy, data use and security may cause an increase in the costs to issue payment cards and/or may decrease the number of our cards that we or third parties issue. New regulations in...

  • Page 50
    ... our ability to manage our credit risk, market risk, liquidity risk, operational risk, legal and compliance risk, and strategic risk; • the availability and cost of funding and capital; • access to deposit, securitization, equity, debt and credit markets; • the impact of rating agency actions...

  • Page 51
    ...suitable and adequate to meet our current and projected needs. We also have seven leased offices, five of which are located outside the United States, that are used to support our Diners Club operations and a leased office that supports our Direct Banking segment. Item 3. Legal Proceedings In the...

  • Page 52
    ... in the Eastern District of Pennsylvania (Boyce v. DFS Services LLC; Discover Financial Services Inc.; Discover Bank). Each of these lawsuits challenges our marketing practices with respect to our payment protection fee product to our cardmembers under various state laws and the Truth in Lending Act...

  • Page 53
    ... to future dividends because they are subject to board approval and depend on future earnings, capital requirements and financial condition. In addition, our banking regulators and applicable banking laws and regulations may limit our ability to pay dividends. Further, as a result of provisions that...

  • Page 54
    ...purchases of our common stock made by us or on our behalf during the fourth quarter of our year ended November 30, 2010: Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1) - N/A - N/A - N/A Period September 1 - 30, 2010 Repurchase program(1) ...Employee transactions...

  • Page 55
    ... years in the three-year period ended November 30, 2010 and the statement of financial condition data as of November 30, 2010 and 2009 have been derived from our audited consolidated financial statements included elsewhere in this annual report on Form 10-K. The statement of financial condition data...

  • Page 56
    ... data shown below for the year ended November 30, 2010 reflects a change in accounting principle as a result of the consolidation of the securitization trusts, which is more fully described in Note 2: Change in Accounting Principle to our consolidated financial statements. Selected financial data...

  • Page 57
    ... of Financial Condition and Results of Operations - Reconciliations of GAAP to As Adjusted Data." For the Years Ended November 30, 2010 Selected Statistics: Total Loan Receivables GAAP information: Loan receivables ...Average loan receivables ...Interest yield ...Net principal charge-off rate...

  • Page 58
    ...credit cards, student loans, personal loans and deposit products. Through our DFS Services LLC subsidiary and its subsidiaries, we operate the Discover Network, the PULSE network ("PULSE") and Diners Club International ("Diners Club"). The Discover Network provides credit card transaction processing...

  • Page 59
    ... consolidated financial statements presented in this annual report as of and for the year ended November 30, 2010 reflect the new accounting requirements, but the historical statement of financial condition as of November 30, 2009 and statements of income and statements of cash flows for the years...

  • Page 60
    ... difference between such information on a historical managed basis as compared to on an as adjusted basis. Earnings Summary and Reconciliation For the Year Ended November 30, 2009 As Reported Interest income...Interest expense ...Net interest income...Provision for loan losses ...Net interest...

  • Page 61
    ...MasterCard antitrust litigation settlement. Other Income and Reconciliation For the Year Ended November 30, 2009 As Reported Securitization income ...Discount and interchange revenue...Fee products...Loan fee income ...Transaction processing revenue ...Merchant fees ...Loss on investment securities...

  • Page 62
    For the Year Ended November 30, 2008 As Reported Securitization income ...Discount and interchange revenue...Fee products...Loan fee income ...Transaction processing revenue ...Merchant fees ...Loss on investment securities...Antitrust litigation settlement ...Other income ...Total other income...

  • Page 63
    ... for loan losses (end of period) GAAP ...Adjustments for Statement No. 167 ...As Adjusted...Reserve Rate (end of period) % GAAP ...Adjustments for Statement No. 167 ...As Adjusted...Net charge-offs % GAAP ...Adjustments for Statement No. 167 ...As Adjusted...Delinquencies (Over 30 Days) GAAP...

  • Page 64
    ... No. 167 ...As Adjusted...Total Discover Card Loans GAAP ...Adjustments for Statement No. 167 ...As Adjusted...Allowance for loan losses (end of period) GAAP ...Adjustments for Statement No. 167 ...As Adjusted...Total Credit Card Loans Loan receivables GAAP ...Adjustments for Statement No. 167 ...As...

  • Page 65
    ... the Year Ended November 30, Total Credit Card Loans Charge-offs GAAP ...Adjustments for Statement No. 167 ...As Adjusted...Recoveries GAAP ...Adjustments for Statement No. 167 ...As Adjusted...Net charge-offs GAAP ...Adjustments for Statement No. 167 ...As Adjusted...Allowance for loan losses (end...

  • Page 66
    Average Balance Sheet Reconciliation For the Year Ended November 30, 2009 Average Balances Average restricted cash GAAP...Adjustments for Statement No. 167 ...As Adjusted ...Average investment securities GAAP...Adjustments for Statement No. 167 ...As Adjusted ...Average credit card loan receivables ...

  • Page 67
    ...of balance transfer fees in interest income on credit card loans (dollars in millions) GAAP ...Adjustments for Statement No. 167...As Adjusted ...7.13% 2.32 9.45% 4.74% 2.86 7.60% 3.90% 3.26 7.16% 6.58% 1.95 8.53% 4.20% 2.73 6.93% 3.40% 3.13 6.53% $ $ 128 59 187 $ $ 70 45 115 For the Year Ended...

  • Page 68
    ...at the end of 2009 resulting in a decline in the loan loss reserve rate, which led to a $598 million reduction of our allowance for loan losses in 2010. • Discover card sales volume increased 6% in 2010 as compared to 2009, due to higher average spend per customer and broadened merchant acceptance...

  • Page 69
    ... lower rate student loans from the acquisition of The Student Loan Corporation, discussed further below, will lead to a reduction in our net interest margin. We believe that the significant investments we made in marketing and advertising in 2010 will continue to benefit Discover card sales volumes...

  • Page 70
    ...Reserve issued proposed regulations in December 2010, and we are currently evaluating the proposal. The provisions applicable to the debit card market may adversely affect PULSE's business practices, network transaction volume, revenue, and prospects for future growth. For more information regarding...

  • Page 71
    ... and the Government Accountability Office to conduct various studies, including a review of interchange fees, reasons for credit limit reductions and rate increases, "small business" cards, and credit card terms and disclosures. Based on the results of these studies, new requirements that negatively...

  • Page 72
    ... that the agencies determine to be appropriate for such regulations. In response to such requirement, in August 2010, the federal banking agencies issued an advance notice of proposed rulemaking soliciting comment on alternatives to the use of credit ratings in their risk-based capital rules for...

  • Page 73
    ...substantially increase the credit losses of our private student loan business. Compensation Developments In June 2010, the Federal Reserve, together with the FDIC and the other banking agencies, issued final guidance designed to ensure that incentive compensation practices of financial organizations...

  • Page 74
    ... high-quality assets sufficient to meet the bank's liquidity needs over a 30-day time horizon under an acute liquidity stress scenario, (ii) a "net stable funding ratio" designed to promote more medium and long-term funding of the assets and activities of banks over a one-year time horizon...

  • Page 75
    ...card-branded credit cards issued to individuals and small businesses that are accepted on the Discover Network and other consumer products and services, including student loans, personal loans, prepaid cards and other consumer lending and deposit products offered through our Discover Bank subsidiary...

  • Page 76
    ... Ended November 30, 2010 Network Transaction Volume PULSE network ...Third-Party Issuers ...Diners Club(1) ...Total Payment Services ...Discover Network - Proprietary(2) ...Total Volume...Transactions Processed on Networks Discover Network ...PULSE network ...Total...Credit Card Volume Discover Card...

  • Page 77
    ... from transactions on the PULSE network. Expenses were down $8 million primarily due to transaction processing cost reduction initiatives as well as a lower level of international marketing investments. Transaction dollar volume for the year ended November 30, 2010 was $152 billion, an increase of...

  • Page 78
    ... the year ended November 30, 2008. Revenues were up $61 million mainly driven by increased transaction volume on the PULSE network, along with lower incentive payments and higher fee revenue. Expenses were also up $33 million including a higher level of international marketing investments, partially...

  • Page 79
    ... customer purchase activity and the terms of the rewards programs. We recognize reward costs as a reduction of discount and interchange revenue in the consolidated statements of income. If management used a different estimate of forfeitures, our consolidated statement of financial condition and...

  • Page 80
    ... Reserve, highly rated certificates of deposit, and triple-A rated government mutual funds, (iii) restricted cash, (iv) short-term investments and (v) investment securities. Our interest-bearing liabilities consist primarily of deposits, both direct-to-consumer and brokered, and long-term borrowings...

  • Page 81
    ... to an increase in the average level of loan receivables. This was primarily attributable to a decline in the credit card payment rate and an increase in both student and personal loan receivable balances, partially offset by lower balance transfer activity and lower sales volume. Interest expense...

  • Page 82
    ... of amortization of balance transfer fees for the years ended November 30, 2010, 2009 and 2008, respectively. Includes student loans held for sale. Includes the impact of interest rate swap agreements used to change a portion of fixed-rate funding to floating-rate funding. Includes the impact...

  • Page 83
    ... the following (dollars in thousands): For the Years Ended November 30, 2010 Loans held for sale...Loan portfolio: Credit card loans: Discover Card(1) ...Discover Business Card ...Total credit card loans ...Other consumer loans: Personal loans ...Federal student loans...Private student loans...Other...

  • Page 84
    ...credit card loans. More specifically, our allowance at November 30, 2010 was $3.3 billion, a decline of $598 million as compared to November 30, 2009 as adjusted. This full-year net reduction in the allowance includes a $305 million increase to the allowance in the first quarter 2010 upon management...

  • Page 85
    ... of the allowance for loan losses (dollars in thousands): For the Years Ended November 30, 2010 Discover card ...Discover business card ...Total credit card loans ...Personal loans ...Federal student loans ...Private student loans ...Other ...Total other consumer loans ...Total allowance for...

  • Page 86
    ...and recoveries. However, the net charge-off rate on our credit card loans increased slightly for the year ended November 30, 2010 compared to the year ended November 30, 2009 as adjusted due to a lower average level of credit card loans. The seasoning of our personal loan portfolio has led to higher...

  • Page 87
    ... to November 30, 2009 as adjusted. The decline in delinquency rates is mainly due to better credit trends as well as enhanced collection management and underwriting processes. Loan receivables not accruing interest at November 30, 2010 decreased 19 basis points to 0.67%, as compared to November 30...

  • Page 88
    ... the periods presented (dollars in thousands): For the Years Ended November 30, 2010 Discount and interchange Fee products...Loan fee income...Transaction processing revenue ...Merchant fees ...Gain (loss) on investment securities ...Other income ...Total other income...revenue(2) ...$1,055,359 412...

  • Page 89
    ... on lower sales volume. Lower customer rewards costs were due to a decline in sales volume, partially offset by adjustments made in the third quarter of 2008 to the rewards liability for an increase in expected forfeitures of accumulated rewards. Fee Products We earn revenue related to fees received...

  • Page 90
    ...away from direct merchant relationships, our merchant fee income and related costs have declined from $67 million in 2008 to $44 million in 2009 and $28 million in 2010. The lower income per transaction is generally offset by increased volume due to broader acceptance. Transaction Processing Revenue...

  • Page 91
    ... and long-term borrowings. Funding Sources Deposits. We offer deposit products, including certificates of deposit, money market accounts, online savings accounts and Individual Retirement Account ("IRA") certificates of deposit, to customers through two channels: (i) through direct marketing...

  • Page 92
    ...as an additional source of funding. We access the asset-backed securitization market using the Discover Card Master Trust I ("DCMT") and the Discover Card Execution Note Trust ("DCENT"), through which we issue asset-backed securities both publicly and through private transactions. The DCMT structure...

  • Page 93
    ... - Asset-Backed Securities Regulations" for additional information. Short-Term Borrowings. Short-term borrowings include any debt or time deposits with original maturities of 12 months or less. We primarily access short-term borrowings through the Federal Funds market or through repurchase...

  • Page 94
    ... available to support general liquidity needs and may be drawn to meet short-term funding needs from time to time. The terms of the credit facility include various affirmative and negative covenants, including financial covenants related to the maintenance of certain capitalization and tangible net...

  • Page 95
    ...Federal Reserve and AAA rated government money market mutual funds. Investments included highly-rated certificates of deposit, credit card asset-backed securities of other issuers plus U.S. Treasury, U.S. government agency and AAA-rated corporate debt obligations issued under the Temporary Liquidity...

  • Page 96
    ... with Discover Bank, must maintain minimum levels of capital. Failure to meet minimum capital requirements can result in the initiation of certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could limit our business activities and have a direct material...

  • Page 97
    ... under an agreement. Our guarantees relate to transactions processed on the Discover Network and certain transactions processed by PULSE and Diners Club. See Note 20: Commitments, Contingencies and Guarantees to our consolidated financial statements for further discussion regarding our guarantees...

  • Page 98
    ... to market risk primarily from changes in interest rates. Interest Rate Risk. We borrow money from a variety of depositors and institutions in order to provide loans to our customers, as well as invest in other assets and our business. These loans and other assets earn interest, which we use to pay...

  • Page 99
    ... of our balance sheet through the use of interest rate derivatives. Specifically, beginning in the third quarter 2010, we entered into interest rate derivative agreements under which we receive a fixed interest rate on forecasted cash flows related to variable rate credit card receivables. We...

  • Page 100
    ... the Public Company Accounting Oversight Board (United States), the consolidated statement of financial condition, and related consolidated statements of income, changes in stockholders' equity, and cash flows as of and for the year ended November 30, 2010 of the Company and our report dated January...

  • Page 101
    ... results of their operations and their cash flows for each of the three years in the period ended November 30, 2010, in conformity with accounting principles generally accepted in the United States of America. As discussed in Note 2 to the consolidated financial statements, the Company adopted the...

  • Page 102
    Discover Financial Services Consolidated Statements of Financial Condition November 30, 2010 November 30, 2009 (dollars in thousands, except per share amounts) Assets Cash and cash equivalents...Restricted cash - special dividend escrow...Restricted cash - for securitization investors ...Other ...

  • Page 103
    Discover Financial Services Consolidated Statements of Income For the Years Ended November 30, 2010 2009 2008 (dollars in thousands, except per share amounts) Interest income: Credit card loans ...Other loans...Investment securities ...Other interest income...Total interest income...Interest ...

  • Page 104
    ...sale of Goldfish business ...Adjustments related to investment securities, net of tax ...Adjustments related to pension and postretirement benefits, net of tax ...Other comprehensive loss ...Total comprehensive income ...Purchases of treasury stock ...Common stock issued under employee benefit plans...

  • Page 105
    Discover Financial Services Consolidated Statements of Cash Flows For the Years Ended November 30, 2010 Cash flows from operating activities Net income...Adjustments to reconcile net income to net cash provided by operating activities: Net principal disbursed on loans originated for sale ...Proceeds...

  • Page 106
    ... state-chartered bank, the Company offers its customers credit cards, student loans, personal loans and deposit products. Through its DFS Services LLC subsidiary and its subsidiaries, the Company operates the Discover Network, the PULSE network ("PULSE") and Diners Club International ("Diners Club...

  • Page 107
    ... were applicable to the Company beginning in 2010, are presented in Note 22: Fair Value Disclosures. The disclosures concerning gross presentation of Level 3 activity are effective for fiscal years beginning after December 15, 2010. 2. Change in Accounting Principle Statement of Financial Accounting...

  • Page 108
    ... of deposit with maturities greater than 90 days but less than one year when purchased. Investment Securities. At November 30, 2010, investment securities consisted of credit card asset-backed securities issued by other institutions, U.S. Treasury and U.S. government agency obligations, corporate...

  • Page 109
    ... carries these assets at the lower of aggregate cost or fair value. In determining fair value, management considers the expected sale price, which is based on market analysis. An allowance for loan losses does not apply to loans held for sale. At November 30, 2010, the Company had $788.1 million of...

  • Page 110
    ... payment is not received by the specified date on the customer's billing statement. Delinquency is reported on loans that are 30 or more days past due. Credit card loans are charged off at the end of the month during which an account becomes 180 days past due. Closed-end consumer loan receivables...

  • Page 111
    ...'s consolidated statements of financial condition. See Note 8: Premises and Equipment for further information about the Company's premises and equipment. Goodwill. Goodwill is recorded as part of the Company's acquisitions of businesses when the purchase price exceeds the fair value of the net...

  • Page 112
    ...related balance. As of November 30, 2010 and 2009, deferred revenues related to balance transfer fees, recorded as a reduction of loan receivables, was $43.9 million and $24.9 million, respectively. Loan fee income consists of fees on credit card loans and includes annual, late, returned check, cash...

  • Page 113
    ... discount revenue from fees charged to merchants with whom the Company has entered into card acceptance agreements for processing credit card purchase transactions. Discover card transaction volume was concentrated among the Company's top 100 merchants in 2010, with its largest merchant accounting...

  • Page 114
    ... to access the securitization market given current market conditions, scheduled maturities of outstanding asset-backed securities, management's targeted mix of funding sources used, and the relative availability of the Company's other funding sources. The amount of credit card receivables classified...

  • Page 115
    ... table provides summary financial information for discontinued operations related to the sale of the Company's Goldfish business (dollars in thousands): For the Year Ended November 30, 2008 Revenues(1) ...Income from discontinued operations...Loss on the sale of discontinued operations(2) ...Pretax...

  • Page 116
    ...and fair value of available-for-sale and held-to-maturity investment securities are as follows (dollars in thousands): Amortized Cost At November 30, 2010 Available-for-Sale Investment Securities(1) U.S Treasury securities ...U.S government agency securities ...Credit card asset-backed securities of...

  • Page 117
    ... 30, 2010 and 2009 (dollars in thousands): Less than 12 months Number of Securities in a Loss Position At November 30, 2010 Available-for-Sale Investment Securities U.S. Treasury securities ...U.S. government agency securities ...Credit card asset-backed securities of other issuers ...Corporate debt...

  • Page 118
    ...-for-sale - Fair Values(1) U.S Treasury securities ...U.S government agency securities ...Credit card asset-backed securities of other issuers ...Corporate debt securities ...Total available-for-sale investment securities ...Held-to-maturity - Fair Values(2) U.S. Treasury securities ...State and...

  • Page 119
    ... 30, 2010 and 2009, respectively. See Note 7: Credit Card Securitization Activities for further information. Upon adoption of Statements No. 166 and 167, the Company consolidated $22.3 billion of securitized loan receivables, reclassified $4.6 billion from investment securities to loan receivables...

  • Page 120
    .... Related to these sales, the Company charged off $25.3 million to the allowance for loan losses. The following table provides changes in the Company's allowance for loan losses for the years ended November 30, 2010, 2009 and 2008 (dollars in thousands): For the Years Ended November 30, 2010 Balance...

  • Page 121
    ...(3) The amounts at November 30, 2010 include securitized loans as a result of the consolidation of the securitization trusts upon adoption of Statement No. 167 on December 1, 2009. See Note 2: Change in Accounting Principle for more information. The Company does not separately track interest income...

  • Page 122
    ... on the Company's consolidated statement of financial condition. Trust receivables underlying third-party investors' interests are recorded in credit card loan receivables - restricted for securitization investors, and the related debt issued by the trusts is reported in long-term borrowings - owed...

  • Page 123
    ...loan receivables in the trusts. Therefore, credit risk associated with the transferred receivables is fully reflected on the Company's statement of financial condition in accordance with GAAP. The debt securities issued by the consolidated VIEs are subject to credit, payment and interest rate risks...

  • Page 124
    ...of the Company's securitization structure that is designed to protect investors' interests from loss, which is applicable only to the notes issued from DCENT, is a reserve account funding requirement in which excess cash flows generated by the transferred loan receivables are held at the trust. This...

  • Page 125
    ... ...Cash collateral accounts (carrying amount/fair value) ...Weighted average discount rate (rate per annum) ...Impact on fair value of 10% adverse change ...Impact on fair value of 20% adverse change ...Certificated retained beneficial interests reported as available-for-sale investment securities...

  • Page 126
    ... used in measuring the fair value of the interest-only strip receivable at the date of securitization that resulted from credit card securitizations completed were as follows: For the Years Ended November 30, 2009 Weighted average life (in months)...Payment rate (rate per month) ...Principal...

  • Page 127
    ... of PULSE in January 2005, which was allocated to the Payment Services segment. Subsequent to the acquisition date, no adjustments have been made to the Company's goodwill balance. The Company conducted its annual goodwill impairment testing on June 1, 2010 and 2009, at which times management...

  • Page 128
    ... five years based on intangible assets at November 30, 2010 (dollars in thousands): Year 2011 2012 2013 2014 2015 ... Amount $6,576 $5,742 $4,770 $3,992 $3,386 10. Deposits The Company offers its deposit products, including certificates of deposit, money market accounts, online savings accounts and...

  • Page 129
    ... table provides a summary of the Company's long-term borrowings and weighted average interest rates on balances outstanding at period end (dollars in thousands): November 30, 2010 Outstanding Discover Card Master Trust I and Discover Card Execution Note Trust Fixed rate asset-backed securities...

  • Page 130
    ... to support the funding of its credit card loan receivables. As of November 30, 2010, the total commitment of secured credit facilities through private providers was $3.8 billion, of which $0.5 billion had been used and was included in long-term borrowings - owed to securitization investors at...

  • Page 131
    ... to the salary stock grant date. Stock-Based Compensation. The following table details the compensation cost, net of forfeitures, related to each of the above plans (dollars in thousands): For the Years Ended November 30, 2010 Restricted stock units ...Salary paid in shares ...Stock options ...Total...

  • Page 132
    ...award. The requisite service period is generally the vesting period. The following table summarizes the total intrinsic value of the RSUs converted to common stock and the total grant date fair value of RSUs vested (dollars in thousands): For the Years Ended November 30, 2010 Intrinsic value of RSUs...

  • Page 133
    ... stock price data over a time period similar to the expected option life. The risk-free interest rate was based on U.S. Treasury Strips with a remaining term equal to the expected life assumed at the date of grant. 13. Employee Benefit Plans The Company sponsors the Discover Financial Services...

  • Page 134
    ...benefit obligation and fair value of plan assets as well as a summary of the Company's funded status (dollars in thousands): Pension For the Years Ended November 30, 2010 Reconciliation of benefit obligation: Benefit obligation at beginning of year ...Service cost ...Interest cost ...Actuarial (gain...

  • Page 135
    ...presents the assumptions used to determine net periodic benefit cost: Pension For the Years Ended November 30, 2010 Discount rate ...Expected long-term rate of return on plan assets ...Rate of future compensation increases ...5.92% 6.75% N/A Postretirement For the Years Ended November 30, 2010 5.92...

  • Page 136
    ... of business and financial conditions, demographic and actuarial data, funding characteristics and related risk factors. Other relevant factors, including industry practices and long-term historical and prospective capital market returns were considered as well. The Qualified Plan return objectives...

  • Page 137
    ... equity fund and a stable value product. The common collective trusts and the domestic equity fund are public investment vehicles valued using the Net Asset Value ("NAV") provided by the administrator of the fund. The NAV is quoted on a private market that is not active; however, the unit price is...

  • Page 138
    ...million. During the year ended November 30, 2009, the Company raised approximately $534 million in capital through the issuance of 60,054,055 shares of common stock, par value of $0.01, at a public offering price of $9.25 per share ($8.89 per share net of underwriter discounts and commissions). This...

  • Page 139
    ...Note 2: Change in Accounting Principle for more information. Total other income includes the following components (dollars in thousands): For the Years Ended November 30, 2010 Royalty and licensee revenue...Gain from sales of merchant contracts ...Referral of declined applications ...Charge related...

  • Page 140
    ... other assets in the consolidated statements of financial condition, were as follows (dollars in thousands): November 30, 2010 Deferred tax assets: Allowance for loan losses(1) ...Compensation and benefits ...Unrealized gains/losses ...Customer fees and rewards...State income taxes...Other ...Total...

  • Page 141
    ... accrued in the consolidated statement of financial position for the payment of interest and penalties related to unrecognized tax benefits as of November 30, 2010 and 2009, respectively. The changes primarily relate to the revaluation of existing federal and state tax issues. The Company is under...

  • Page 142
    ... EPS (shares in thousands): For the Years Ended, November, 30, 2010 Unexercised stock options ...3,398 2009 4,385 2008 4,241 19. Capital Adequacy The Company is subject to capital adequacy guidelines of the Federal Reserve, and Discover Bank (the "Bank"), the Company's main banking subsidiary, is...

  • Page 143
    .... Under the current banking regulations, a bank may not pay dividends if such a payment would leave the bank inadequately capitalized. In the years ended November 30, 2010, 2009 and 2008, Discover Bank paid dividends of $125 million, $0 and $95 million, respectively, to the Company. -132-

  • Page 144
    ... loan products, provided there is no violation of conditions in the related agreement. These commitments, substantially all of which the Company can terminate at any time and which do not necessarily represent future cash requirements, are periodically reviewed based on account usage, customer...

  • Page 145
    ... in the consolidated financial statements related to this counterparty exposure, and management believes that the probability of any payments under this arrangement is low. Merchant Chargeback Guarantees. The Company issues credit cards and owns and operates the Discover Network. The Company is...

  • Page 146
    ... period transactions processed on the Discover Network to which a potential liability exists which, in aggregate, can differ from credit card sales volume. The Company has not recorded any contingent liability in the consolidated financial statements related to merchant chargeback guarantees...

  • Page 147
    ... action cases pending in relation to the sale of the Company's payment protection fee product. The cases were filed (all in United States District Courts) on July 8, 2010 in the Northern District of California (Walker, et al. v. DFS, Inc. and Discover Bank; subsequently transferred to the Northern...

  • Page 148
    ... cash - for securitization investors(1) ...Other short-term investments ...Investment securities: Available-for-sale(1) ...Held-to-maturity(1) ...Net loan receivables(1) ...Amounts due from asset securitization(1) ...Derivative financial instruments...Financial Liabilities Deposits...Long-term...

  • Page 149
    ... market transactions, then fair values are determined by discounting cash flows of future interest accruals at market rates currently offered for borrowings with similar credit risks, remaining maturities and repricing terms. Derivative financial instruments. The Company's derivative financial...

  • Page 150
    ... active market for such instruments, adjusted for changes reflective of incremental credit risk, liquidity risk, or both. Held-to-maturity investment securities. The estimated fair values of certain certificated subordinated interests issued by DCENT and DCMT were derived utilizing a discounted cash...

  • Page 151
    ...conditions of specific instruments being valued. Regarding credit card asset-backed securities, the expected cash flow models used by the pricing service utilize observable market data to the extent available and other valuation inputs such as benchmark yields, reported trades, broker quotes, issuer...

  • Page 152
    ...at Fair Value on a Recurring Basis (dollars in thousands) Change in unrealized gains (losses) related to assets held at end of year Beginning Balance For the Year Ended November 30, 2010 Assets Certificated retained interests in DCENT ...Credit card asset-backed securities of other issuers ...Asset...

  • Page 153
    ...interest rate risk, are considered fair value hedges. Cash Flow Hedges. The Company uses interest rate swaps to manage its exposure to changes in interest rates related to future cash flows resulting from credit card loan receivables. These transactions are hedged for a maximum period of three years...

  • Page 154
    ... related to its derivatives designated as cash flow hedges. Fair Value Hedges. The Company is exposed to changes in fair value of certain of its fixed rate debt obligations due to changes in interest rates. During the year ended November 30, 2010, the Company used an interest rate swap to manage...

  • Page 155
    ... may also be required to post collateral with a counterparty depending on the credit rating it or Discover Bank receives from specified major credit rating agencies. Collateral amounts recorded in the consolidated statement of financial condition are based on the net collateral receivable or payable...

  • Page 156
    ... funds transfer network; Diners Club, a global payments network; and the Company's third-party issuing business, which includes credit, debit and prepaid cards issued on the Discover Network by third parties. The business segment reporting provided to and used by the Company's chief operating...

  • Page 157
    ... income related to the Visa and MasterCard antitrust litigation settlement, which is included in the Direct Banking segment. See Note 21: Litigation. 25. Related Party Transactions In the ordinary course of business, the Company offers consumer loan products to its directors, executive officers and...

  • Page 158
    ... issuers or guarantors of registered securities to include separate annual financial statements. Discover Financial Services (Parent Company Only) Condensed Statements of Financial Condition November 30, 2010 Assets Cash and cash equivalents ...Restricted cash ...Notes receivable from subsidiaries...

  • Page 159
    Discover Financial Services (Parent Company Only) Condensed Statements of Income For the Years Ended November 30, 2010 Interest income ...Interest expense ...Net interest income ...Dividends from subsidiaries ...Antitrust litigation settlement...Other income ...Total income ...Other expense Employee...

  • Page 160
    ...) decrease in loans to subsidiaries ...Maturities of investment securities ...Decrease (Increase) in restricted cash - special dividend escrow...Net cash provided by (used for) investing activities ...Cash flows from financing activities Proceeds from issuance of long-term borrowings and bank notes...

  • Page 161
    ... Agreement, and Discover, Citi and SLC agreed to amend the Purchase Price Adjustment Agreement. Long-term Borrowings. On December 15, 2010, DCENT, one of the Company's securitization trusts, issued $500 million of asset-backed securities through its private conduit providers. Related to this...

  • Page 162
    ... the Direct Banking segment. See Note 21: Litigation. Because the inputs to net income allocated to common stockholders and earnings per share are calculated using weighted averages for the quarter, the sum of all four quarters may differ from the year to date amounts in the consolidated statements...

  • Page 163
    ... matter is included in Item 8 of this annual report on Form 10-K. Discover Financial Services Riverwoods, IL January 26, 2011 Changes in Internal Control over Financial Reporting In preparation for management's report on internal control over financial reporting, we documented and tested the design...

  • Page 164
    ... - Board meetings and committees" Our Code of Ethics and Business Conduct applies to all directors, officers and employees, including our Chief Executive Officer and our Chief Financial Officer. You can find our Code of Ethics and Business Conduct on our internet site, www.discover.com. We will post...

  • Page 165
    ... to be filed in this Annual Report on Form 10-K are listed below and appear on pages 86 through 148 herein. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Reports of Independent Registered Public Accounting Firm ...89 Consolidated Statements of Financial Condition as of November 30, 2010 and 2009...

  • Page 166
    ...(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Discover Financial Services (Registrant) By: /S/ DAVID W. NELMS David W. Nelms Chairman and Chief Executive Officer Date: January 26, 2011...

  • Page 167
    ... and lawful attorneys with full power to them and each of them to sign for us, and in our names in the capacities indicated below, any and all amendments to the Annual Report on Form 10-K filed with the Securities and Exchange Commission, hereby ratifying and confirming our signatures as they may be...

  • Page 168
    ... E. FOLLIN SMITH E. Follin Smith Chairman and Chief Executive Officer Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) Lead Director Director Director Director Director Director Director Director Director Director -157-

  • Page 169
    [THIS PAGE INTENTIONALLY LEFT BLANK]

  • Page 170
    ...Current Report on Form 8-K filed on February 12, 2010 and incorporated herein by reference thereto). Agreement for the Sale and Purchase of the Goldfish Credit Card Business, dated February 7, 2008, among Discover Financial Services, Goldfish Bank Limited, Discover Bank, SCFC Receivables Corporation...

  • Page 171
    Exhibit Number Description 4.8 Fiscal and Paying Agency Agreement, dated April 15, 2010, between Discover Bank, as issuer, and U.S. Bank National Association, as fiscal and paying agent (filed as Exhibit 4.1 to Discover Financial Services' Current Report on Form 8-K filed on April 16, 2010 and ...

  • Page 172
    ... 4.5 to Discover Bank's Current Report on Form 8-K filed on June 4, 2010 and incorporated herein by reference thereto). Omnibus Amendment to Indenture Supplement and Terms Documents, dated as of July 2, 2009, between Discover Card Execution Note Trust, as Issuer, and U.S. Bank National Association...

  • Page 173
    ..., dated February 11, 2010 (filed as Exhibit 10.1 to Discover Financial Services' Current Report on Form 8-K filed on February 12, 2010 and incorporated herein by reference thereto). Purchase Price Adjustment Agreement by and among Citibank, N.A., The Student Loan Corporation and Discover Bank, dated...

  • Page 174
    ... Subsidiaries of the Registrant. Consent of Independent Registered Public Accounting Firm. Powers of Attorney (included on signature page). Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. Certification of Chief Financial Officer pursuant...

  • Page 175
    [THIS PAGE INTENTIONALLY LEFT BLANK]

  • Page 176
    ...DISCOVER FINANCIAL SERVICES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES For the Years Ended November 30, 2010 Earnings: Income from continuing operations...expense, amortized premiums, discounts and capitalized expenses related to indebtedness, an estimate of interest within rental expense...

  • Page 177
    ... Corporation...Discover Services Corporation...Discover SL Funding LLC...DFS International Inc...DFS Services LLC ...DRFC Funding LLC...Goldfish Bank Limited ...GTC Insurance Agency, Inc...PULSE Network LLC ...SCFC Receivables Corp...The Student Loan Corporation ... Delaware Delaware Delaware New...

  • Page 178
    ...of FASB Statement No. 140" and "Amendments to FASB Interpretation No. 46(R)", on December 1, 2009), and the effectiveness of internal control over financial reporting, appearing in this Annual Report on Form 10-K of Discover Financial Services for the year ended November 30, 2010. Chicago, Illinois...

  • Page 179
    ..., certify that: 1. 2. I have reviewed this Annual Report on Form 10-K of Discover Financial Services (the "registrant"); Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the...

  • Page 180
    ..., certify that: 1. 2. I have reviewed this Annual Report on Form 10-K of Discover Financial Services (the "registrant"); Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the...

  • Page 181
    ...of Discover Financial Services (the "Company") on Form 10-K for the period ended November 30, 2010, as filed with the Securities and Exchange Commission (the "Report"), each of David W. Nelms, Chairman and Chief Executive Officer of the Company, and Roy A. Guthrie, Executive Vice President and Chief...

  • Page 182
    ... our business, including, but not limited to: Discover , PULSE , Cashback Bonus , Discover More Card, Discover Motiva Card, Discover Open Road Card, Discover Network and Diners Club International . All other trademarks, trade names and service marks included in this Annual Report are the property of...

  • Page 183
    2500 L AK E C O O K RO AD RI VE RWO O D S, I L L I NO I S 60015 discoverfinancial.com

  • Page 184
    Our Vision To be the most rewarding relationship consumers and businesses have with a financial services company. Our Mission To help people spend smarter, manage debt better and save more so they achieve a brighter financial future. Our Values D oing the right thing I nnovation Simplicity C ...

  • Page 185