Exhibit 99.1
DISCOVER FINANCIAL SERVICES TO EXPLORE
SALE OF DISCOVER STUDENT LOANS PORTFOLIO
Company to Pursue Transfer of Servicing to Third-Party Provider and Plans to Cease Student Loan Originations February 1, 2024
Riverwoods, IL, Nov. 29, 2023 Discover Financial Services (NYSE: DFS) today announced that the Companys Board of Directors
(the Board) has authorized Discover management to explore the sale of the Discover Student Loans portfolio and the transfer of servicing of these loans to a third-party provider as it pursues strategic alternatives for the Discover
Student Loans business.
Additionally, Discover will stop accepting new applications for student loans February 1, 2024. There is no impact to
current Discover Student Loans customers or their loans or payments at this time.
Discovers Board regularly reviews the strategic fit of all
of our businesses, with a focus on providing exceptional customer service and allocating resources to optimize returns, said John Owen, Discovers interim CEO and President. During a recent review, the Board determined that
exploring the sale and transfer of servicing of Discovers student loans is aligned with those priorities, better enabling Discover to focus on our core banking products, capitalize on our growth opportunities and deliver long-term shareholder
value. We are committed to a path forward that enables a seamless transition for our customers as they advance their education and financial goals.
Discover has retained Wells Fargo Securities, LLC as its financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as its legal advisor to
support its exploration of strategic alternatives for Discover Student Loans.
There is no deadline or definitive timetable set for completion of this
process, and the Company does not intend to disclose developments unless and until the Board approves a specific transaction or determines that further disclosure is appropriate. Any decision by the Board to pursue or not pursue a strategic
alternative for Discover Student Loans will be aligned with the Boards objectives of maximizing shareholder value and strengthening the Companys businesses and will be subject to then prevailing market conditions.
About Discover
Discover Financial Services (NYSE: DFS)
is a digital banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the
Discover® card, Americas cash rewards pioneer, and offers private student loans, personal loans, home loans, checking and savings accounts and certificates of deposit through its banking
business. It operates the Discover Global Network® comprised of Discover Network, with millions of merchants and cash access locations;
PULSE®, one of the nations leading ATM/debit networks; and Diners Club International®, a global payments network with acceptance
around the world. For more information, visit www.discover.com/company.
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements, which speak to our expected business and financial performance, among other matters, contain words such as believe, expect, anticipate,
intend, plan, aim, will, may, should, could, would, likely, forecast, and similar expressions.