Discover 2015 Annual Report Download - page 103

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DISCOVER FINANCIAL SERVICES
Consolidated Statements of Income
For the Years Ended December 31,
2015 2014 2013
(dollars in millions, except per share amounts)
Interest income:
Credit card loans ............................................................................................................. $ 6,626 $ 6,359 $5,978
Other loans ..................................................................................................................... 1,243 1,151 997
Investment securities ......................................................................................................... 49 67 74
Other interest income ....................................................................................................... 27 19 15
Total interest income ..................................................................................................... 7,945 7,596 7,064
Interest expense:
Deposits .......................................................................................................................... 623 614 698
Short-term borrowings ...................................................................................................... 123
Long-term borrowings ....................................................................................................... 639 518 445
Total interest expense .................................................................................................... 1,263 1,134 1,146
Net interest income ................................................................................................... 6,682 6,462 5,918
Provision for loan losses .................................................................................................... 1,512 1,443 1,086
Net interest income after provision for loan losses ........................................................ 5,170 5,019 4,832
Other income:
Discount and interchange revenue, net ............................................................................... 1,117 979 1,126
Protection products revenue ............................................................................................... 261 314 350
Loan fee income ............................................................................................................... 335 334 320
Transaction processing revenue ......................................................................................... 159 182 192
Gain on investments ......................................................................................................... 945
Gain on origination and sale of mortgage loans ................................................................. 68 81 144
Other income .................................................................................................................. 108 121 169
Total other income ........................................................................................................ 2,057 2,015 2,306
Other expense:
Employee compensation and benefits ................................................................................. 1,327 1,242 1,164
Marketing and business development ................................................................................. 745 735 717
Information processing and communications ....................................................................... 349 346 333
Professional fees .............................................................................................................. 610 450 410
Premises and equipment ................................................................................................... 95 92 82
Other expense ................................................................................................................. 489 475 488
Total other expense ...................................................................................................... 3,615 3,340 3,194
Income before income tax expense ............................................................................. 3,612 3,694 3,944
Income tax expense .......................................................................................................... 1,315 1,371 1,474
Net income .............................................................................................................. $ 2,297 $ 2,323 $2,470
Net income allocated to common stockholders ............................................................. $ 2,246 $ 2,270 $2,414
Basic earnings per common share ......................................................................................... $ 5.14 $ 4.91 $ 4.97
Diluted earnings per common share ....................................................................................... $ 5.13 $ 4.90 $ 4.96
See Notes to the Consolidated Financial Statements.