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DISCOVER DISCOVER FINANCIAL SERVICES REPORTS THIRD QUARTER 2021 NET INCOME OF $ 1.1 BILLION OR $ 3.54 PER DILUTED SHARE Third 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 $ 89.5 $ 2,777 1.46 % $ 1,091 $ 3.54 2020 $ 88.7 $ 2,714 3.00 % $ 771 $ 2.45 YOY Change 1 % 2 % -154 bps 42 % 44 % Exhibit 99.1 Riverwoods , IL , October 20 , 2021 - Discover Financial Services ( NYSE : DFS ) today reported net income of $ 1.1 billion or $ 3.54 per diluted share for the third quarter of 2021 , as compared to a net income of $ 771 million or $ 2.45 per diluted share for the third quarter of 2020 . " Our results this quarter reflected the strengths of our integrated digital banking and payments model , which continues to be a source of significant competitive advantage " said Roger Hochschild , CEO and President of Discover . " Even in an environment of heightened competition , our attractive value proposition drove strong new account growth , which contributed to our return to year over - year loan growth in the quarter . Further , our success in managing our operating costs and continued strong credit performance helped generate substantial capital , supporting the increase in share repurchases . " Segment Results : Digital Banking Digital Banking pretax income of $ 1.5 billion for the quarter was $ 599 million higher than the prior year period primarily reflecting a lower provision for credit losses and higher revenue net of interest expense , partially offset by increased operating expenses . Total loans ended the quarter at $ 89.5 billion , up 1 % year - over - year , and up 2 % sequentially . Credit card loans ended the quarter at $ 70.3 billion , up 1 % year - over - year . Personal loans decreased $ 321 million , or 4 % , and private student loans increased $ 168 million , or 2 % , year - over - year . The organic student loan portfolio , which excludes purchased loans , increased $ 402 million , or 4 % from the prior year period . Net interest income for the quarter increased $ 140 million , or 6 % , from the prior year period , driven by favorable funding costs due to lower market rates and decreased interest charge - offs , partially offset by a lower credit card revolving loan balance as payment rates remained elevated . Net interest margin was 10.80 % , up 61 basis points versus the prior year . Card yield was 12.53 % , up 13 basis points from the prior year period primarily driven by decreased interest charge - offs , and a lower mix of receivables at a promotional rate , partially offset by the impact of a higher payment rate on revolving loan balances . Interest expense as a percent of total loans decreased 66 basis points from the prior year period , primarily as a result of lower market rates and proactive management of deposit costs , maturity of high coupon consumer CDs and a favorable shift in the funding mix . Non - interest income increased $ 76 million , or 20 % , from the prior year period , mainly driven by higher discount / interchange revenue and loan fee income partially offset by higher rewards cost . The total net charge - off rate of 1.46 % was 154 basis points lower versus the prior year period reflecting strong credit performance across the portfolio . The credit card net charge - off rate was 1.65 % , down 180 basis points from the prior year period and down 80 basis points from the prior quarter . The 30+ day delinquency rate for credit card loans was 1.48 % , down 43 basis points year