Discover 2010 Annual Report Download - page 7
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Net Principal Charge-Off Rate*
2008 2009 2010
5.01%
7. 7 7 %
Operating Expenses
[Millions]
2008 2009 2010
$2,251
Income From Continuing
Operations
[Millions]
Represents amount related to the Visa® and MasterCard®
antitrust litigation settlement.
*2008–2009 as adjusted
7. 5 7 % $2,416
$2,183
$1,063
528
535
2008 2009 2010
$1,276
1164
112
$765
Industry Recognition and Community Commitment
Discover was again recognized as an industry leader by numerous organizations, and in addition to our fi nancial and
operating successes, we continued our tradition of volunteerism and community involvement.
• Our industry awards included recognition for the following: #1 ranking in the Brand Keys Customer Loyalty
Engagement Index for the 13th year in a row, highest customer-call satisfaction in the credit card industry by Service
Quality Measurement Group, leadership in identity fraud resolution by Javelin Strategy & Research, and excellence in
technology by CIO magazine.
• In our communities, Discover has a deep commitment to education because we believe it is a key building block for
achieving a brighter fi nancial future. Accordingly, Discover focuses on fi nancial literacy efforts, including supporting
employees who teach Junior Achievement lessons to students in local schools. In addition, each of our facilities has
adopted a school through our “Success in Schools” program. Each location provides program support, and employees
serve as volunteers for special events at the schools. All told, the company and employees donated millions of dollars
and volunteered more than 45,000 hours last year. I am very proud of the commitment Discover employees continue to
show to our value of “volunteerism,” and of their desire to help brighten the futures of those in our communities.
Looking Ahead
In 2011, we still face a number of challenges. U.S. unemployment remains stubbornly high, and it will be a while before
we know the full impact of fi nancial industry legislative changes enacted in 2010. Even though the regulatory framework
for our industry is changing signifi cantly, our view is that fi nancial 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 fi nancial strength and business model give us
the foundation to take advantage of opportunities in the marketplace. Overall, I believe there is no better company than
Discover to tackle the challenges and capture the opportunities in our industry.