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DISCOVER DISCOVER FINANCIAL SERVICES REPORTS SECOND QUARTER 2021 NET INCOME OF $ 1.7 BILLION OR $ 5.55 PER DILUTED SHARE BOARD OF DIRECTORS APPROVES REPURCHASE OF UP TO $ 2.4 BILLION OF COMMON STOCK AND INCREASES THE QUARTERLY COMMON STOCK DIVIDEND 14 % FROM $ 0.44 TO $ 0.50 PER SHARE Second Quarter 2021 Results Total loans , end of period ( in billions ) Total revenue net of interest expense ( in millions ) Total net charge - off rate Net income / ( loss ) ( in millions ) Diluted EPS 2021 $ 87.7 $ 3,579 2.12 % $ 1,698 $ 5.55 Exhibit 99.1 2020 $ 88.9 $ 2,662 3.44 % ( $ 368 ) ( $ 1.20 ) YOY Change ( 1 % ) 34 % -132 bps NM NM Riverwoods , IL , July 21 , 2021 - Discover Financial Services ( NYSE : DFS ) today reported net income of $ 1.7 billion or $ 5.55 per diluted share for the second quarter of 2021 , as compared to a net loss of ( $ 368 ) million or ( $ 1.20 ) per diluted share for the second quarter of 2020 . " In the second quarter , our marketing investments , strong value proposition , and accelerating sales trends produced sequential card receivables growth , while credit performance continued to improve . Additionally , we generated significant capital which supported our decision to substantially increase our dividend and share repurchase authorization , " said Roger Hochschild , CEO and President of Discover . " Looking ahead , these results improve our confidence in our loan growth expectation for this year , while we see opportunity to increase our marketing and other investments to accelerate growth in future periods . " Segment Results : Digital Banking Digital Banking pretax income of $ 1.5 billion for the quarter was $ 2.0 billion higher than the prior year period primarily driven by a decrease in the provision for credit losses and higher revenue net of interest expenses , partially offset by higher operating expenses . Total loans ended the quarter at $ 87.7 billion , down 1 % year - over - year , but up 2 % sequentially . Credit card loans ended the quarter at $ 68.9 billion , down 2 % year - over - year . Personal loans decreased $ 451 million , or 6 % , and private student loans increased $ 134 million , or 1 % , year - over - year . The organic student loan portfolio , which excludes purchased loans , increased $ 386 million , or 4 % from the prior year period . Net interest income for the quarter increased $ 109 million , or 5 % , from the prior year period , driven by a favorable net impact from lower market rates and decreased interest charge - offs , partially offset by lower average receivables . Net interest margin was 10.68 % , up 87 basis points versus the prior year . Card yield was 12.52 % , up 18 basis points from the prior year period primarily driven by a lower mix of receivables at a promotional rate and decreased interest charge - offs , partially offset by the impact of a higher payment rate on revolving loan balances . Interest expense as a percent of total loans decreased 81 basis points from the prior year period , primarily as a result of lower market rates and proactive management of deposit costs , and a favorable shift in the funding mix . Non - interest income increased $ 104 million , or 29 % , from the prior year period , mainly driven by higher discount / interchange revenue and loan fee income partially offset by higher rewards cost .