The company's private student loan portfolio, with a principal balance of approximately $10.1 billion, was classified as held-for-sale as of June 30, 2024, indicating a strategic shift in its lending portfolio.

Discover and Capital One entered into a merger agreement in February 2024, with Discover valued at $35.3 billion, indicating a significant strategic move to combine operations.

Direct-to-consumer deposits grew to $87.3 billion, up from $77.3 billion at the end of 2023, demonstrating the company's success in attracting and retaining deposits.

The company is working to address shortcomings in its compliance management system under a new consent order from the FDIC, indicating a focus on regulatory compliance.

The company increased its liability estimate for the card product misclassification to approximately $1.2 billion, indicating a significant operational challenge.

Management states it remains committed to managing expenses while continuing to make investments in profitable long-term growth, indicating a focus on efficiency and strategic investment.

The merger with Capital One is subject to approvals by the Federal Reserve Board, the Office of the Comptroller of the Currency, and both companies' shareholders, creating uncertainty about the deal's completion.

The company is in discussions with regulators regarding potential penalties for the card product misclassification, indicating a risk of further financial impact beyond the existing liability.

The company's performance is subject to changes in economic variables, competition, and the impact of current and future legislation, regulation, and supervisory guidance.

Transaction volume on the Discover Network increased to $154.6 billion, up from $146.4 billion in the same period of 2023, indicating a strengthening market position.

The company acknowledges the actions and initiatives of current and potential competitors as a risk factor, highlighting the competitive landscape.

Discover card sales volume decreased slightly to $53.5 billion, down from $55.2 billion in the same period of 2023, indicating a potential challenge in maintaining sales growth.

Total other expense increased to $1.7 billion, up from $1.4 billion in the same period of 2023, primarily due to increases in other expense, professional fees, and employee compensation and benefits.

Management states it remains committed to managing expenses while continuing to make investments in profitable long-term growth, indicating a focus on efficiency and strategic investment.

Employee compensation and benefits increased to $658 million for the three months ended June 30, 2024, up from $588 million in the same period of 2023, indicating increasing personnel costs.

The company highlights its ability to maintain current technology and integrate new and acquired systems and technology as a key factor, indicating a focus on innovation.

The company is subject to regulations and legislation focused on enhancing data security and data breach incident response, indicating a focus on protecting its systems and data.

The company is subject to the Gramm-Leach-Bliley Act (GLBA) and its implementing regulations and guidance, which regulate Discover's use and disclosure of consumers' nonpublic personal information (NPI).

The company has paused its share repurchase program due to the merger agreement with Capital One, indicating a change in capital allocation strategy.

DFS and Discover Bank met all Basel III minimum capital ratio requirements and are considered “well-capitalized” under Regulation Y and prompt corrective action rules, respectively.

The company's preliminary SCB increased to 3.1%, indicating a potential increase in capital requirements, subject to recalculation.

The company is subject to scrutiny on environmental, social and governance issues by lawmakers, regulators, shareholders and other stakeholders.

The company is evaluating the potential impacts of new legislative and regulatory requirements on climate-related disclosures.

The company is subject to new and evolving legal and regulatory requirements on ESG issues, which will result in additional compliance and reporting costs.

The company's performance is subject to changes in economic variables, such as consumer credit availability, the housing market, unemployment, and consumer confidence.

The company's performance is subject to the effect of political, economic and market conditions, geopolitical events, climate change, pandemics and unforeseen or catastrophic events.

The company's performance is subject to the impact of current, pending and future legislation, regulation, supervisory guidance and regulatory and legal actions.