| Schedule of Minimum and Well-Capitalized Requirements |
The following table shows the actual capital amounts and ratios of DFS and Discover Bank and comparisons of each to the regulatory minimum and “well-capitalized” requirements (dollars in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Actual | | Minimum Capital
Requirements | | Capital Requirements
To Be Classified as
Well-Capitalized | | | Amount | | Ratio(1) | | Amount | | Ratio | | Amount(2) | | Ratio(2) | | (As Restated) | | (As Restated) | | (As Restated) | | | | (As Restated) | | | | December 31, 2023 | | | | | | | | | | | | | Total capital (to risk-weighted assets) | | | | | | | | | | | | | Discover Financial Services | $ | 17,399 | | | 13.2 | % | | $ | 10,509 | | | ≥8.0% | | $ | 13,137 | | | ≥10.0% | | Discover Bank | $ | 16,409 | | | 12.7 | % | | $ | 10,381 | | | ≥8.0% | | $ | 12,976 | | | ≥10.0% | | Tier 1 capital (to risk-weighted assets) | | | | | | | | | | | | | Discover Financial Services | $ | 15,279 | | | 11.6 | % | | $ | 7,882 | | | ≥6.0% | | $ | 7,882 | | | ≥6.0% | | Discover Bank | $ | 13,459 | | | 10.4 | % | | $ | 7,786 | | | ≥6.0% | | $ | 10,381 | | | ≥8.0% | | Tier 1 capital (to average assets) | | | | | | | | | | | | | Discover Financial Services | $ | 15,279 | | | 10.3 | % | | $ | 5,915 | | | ≥4.0% | | N/A | | N/A | | Discover Bank | $ | 13,459 | | | 9.2 | % | | $ | 5,833 | | | ≥4.0% | | $ | 7,292 | | | ≥5.0% | | Common Equity Tier 1 (to risk-weighted assets) | | | | | | | | | | | | | Discover Financial Services | $ | 14,223 | | | 10.8 | % | | $ | 5,911 | | | ≥4.5% | | N/A | | N/A | | Discover Bank | $ | 13,459 | | | 10.4 | % | | $ | 5,839 | | | ≥4.5% | | $ | 8,435 | | | ≥6.5% | | | | | | | | | | | | | | December 31, 2022 | | | | | | | | | | | | | Total capital (to risk-weighted assets) | | | | | | | | | | | | | Discover Financial Services | $ | 17,557 | | | 15.3 | % | | $ | 9,151 | | | ≥8.0% | | $ | 11,439 | | | ≥10.0% | | Discover Bank | $ | 15,942 | | | 14.1 | % | | $ | 9,051 | | | ≥8.0% | | $ | 11,314 | | | ≥10.0% | | Tier 1 capital (to risk-weighted assets) | | | | | | | | | | | | | Discover Financial Services | $ | 15,590 | | | 13.6 | % | | $ | 6,863 | | | ≥6.0% | | $ | 6,863 | | | ≥6.0% | | Discover Bank | $ | 13,040 | | | 11.5 | % | | $ | 6,788 | | | ≥6.0% | | $ | 9,051 | | | ≥8.0% | | Tier 1 capital (to average assets) | | | | | | | | | | | | | Discover Financial Services | $ | 15,590 | | | 12.1 | % | | $ | 5,147 | | | ≥4.0% | | N/A | | N/A | | Discover Bank | $ | 13,040 | | | 10.3 | % | | $ | 5,086 | | | ≥4.0% | | $ | 6,357 | | | ≥5.0% | | Common Equity Tier 1 (to risk-weighted assets) | | | | | | | | | | | | | Discover Financial Services | $ | 14,534 | | | 12.7 | % | | $ | 5,148 | | | ≥4.5% | | N/A | | N/A | | Discover Bank | $ | 13,040 | | | 11.5 | % | | $ | 5,091 | | | ≥4.5% | | $ | 7,354 | | | ≥6.5% | | | | | | | | | | | | |
(1)Capital ratios are calculated based on the Basel III standardized approach rules, subject to applicable transition provisions, including CECL transition provisions. (2)The Basel III rules do not establish well-capitalized thresholds for these measures for bank holding companies. Existing well-capitalized thresholds established in the Federal Reserve’s Regulation Y have been included where available.
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