David Nelms
Chairman & Chief Executive Officer,
Discover Financial Services

 

Credit Services Net Income
(Dollars in Millions)

With more than 50 million Cardmembers, Discover® Card is one of the largest issuers of general purpose credit cards in the U.S. The Discover Card is accepted on the Discover Business Services Network, the largest proprietary credit card network in the U.S., with more than 4 million merchant and cash access locations.

Discover Card offers various products and financial services, including Cashback Bonus® awards, Discover Platinum, Gold and Titanium cards, affinity cards, gift cards, home loans and credit protection products.

This year, a new series of Discover Platinum Cashback Bonus Plus Cards was introduced, which allows Cardmembers to earn awards of up to 10%. In addition, The Miles Card from Discover Card was launched, enabling Cardmembers to earn one mile for every dollar they spend, which is redeemable for travel on any major domestic airline.

The Discover 2GO® Card continues to be well-received by consumers. The Card was launched in 2002 as the first key chain credit card in the industry.

Discover Card is a leading credit card company on the Internet, with more than 12 million Cardmembers registered at the Discover Card Account Center. Discover Cardmembers can view, sort and download their monthly statements online and can also redeem their Cashback Bonus awards and enroll for paperless statements.

With more than 1 million Morgan Stanley Card® credit cards in the U.K. and $2 billion in consumer loans, our overseas credit card business continues to grow and turned profitable in 2003.

In 2003, more than $5 billion of mortgages were originated, primarily through Morgan Stanley financial advisors.

 

Market Share for Receivables1 and Total Transaction Volume2
(Calendar Basis)

1 Including American Express lending receivables only
2 Excludes debit card volume
Sources: The Nilson Report and Company Reports

Net Principal Charge-off Rate and Delinquency Rate
(30+ Days*)

*Net principal charge-off rate and 30+ day delinquency rate reported on a managed loan basis. For a reconciliation of credit card loan and asset quality data, see Morgan Stanley's 2003 Annual Report on Form 10-K.
Source: Company Filings

New Merchant Outlets
(In Thousands)

Discover Financial Services
(Dollars in Millions)