March 13, 2012 04:45 PM Eastern Daylight Time
Declares Regular Quarterly Dividend of $0.10 Per Share
Company Receives Non-Objection from the Federal Reserve as to its Capital Plan Including Proposed Capital Actions through March 31, 2013
RIVERWOODS, Ill.--()--Discover Financial Services (NYSE:DFS) today announced that its board of directors has approved a new share repurchase program, authorizing the company to purchase up to $2 billion of its common stock. The program expires on March 22, 2014, and may be terminated at any time. The share repurchase program replaces the prior $1 billion program that had $575 million of remaining authorization.
“We are pleased to announce the increase in our authorized share repurchase program and the continuation of our dividend to common shareholders, which increased by 67 percent last quarter”
The company’s board also declared a cash dividend of $0.10 per share of common stock, payable on April 19, 2012, to stockholders of record at the close of business on April 5, 2012.
“We are pleased to announce the increase in our authorized share repurchase program and the continuation of our dividend to common shareholders, which increased by 67 percent last quarter,” said David Nelms, chairman and chief executive officer of Discover. “These actions reflect the strength of our capital position and its resiliency across a range of potential economic scenarios, including the supervisory stress scenario prescribed by the Federal Reserve Board’s 2012 Capital Plan Review. We believe our capital plan leaves us well positioned for continued growth and responsible returns of capital to shareholders while maintaining significant opportunistic flexibility.”
The company expects to make share repurchases from time to time based on market conditions and other factors, subject to legal or regulatory restrictions.