Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Fortune 500

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

America's Most Innovative Companies

See which workplaces made this year's list.

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Employees say:"At Discover, we value what makes each employee unique, and with our collaborative team-based culture we succeed together. In addition, work life balance is a leading factor. You don't have to give up your life outside of work. They embrace diversity through various employee resource groups and offer support."

Best Large Workplaces in Financial Services and Insurance

Fortune partners with global people analytics firm Great Place to Work to analyze survey feedback representing employees from companies across the U.S.

GPTW-Millennials-Large-2024-Discover-Financial-Services

Employees say:"I love the fact that they care so much about volunteering and getting involved in our communities. I'm able to participate in virtual volunteer events when there are no physical volunteer events in my area. I also love the fact that Discover will match any amount that we contribute to charity. I also believe that the training and orientation process is one-of-a-kind in that we all feel welcomed and like we can be ourselves. The trainers make training fun and enjoyable."

100 Best Large Workplaces for Millennials

Industries included in the sector are banks, insurance, and real estate companies.

Fortune Sector Leaders: Financials

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

Creating a more empathetic workplace looks like staying loyal to workers, emphasizing D&I initiatives, and paying well.

100 Best Companies 2024-Discover Financial Services

Discover Financial Services jumped 25 places from No. 81 on last year’s Best Companies list, just as the digital banking and payment services company announced a merger with Capital One in February. &nbsp;Partnering with an independent third-party consultant to monitor pay equity, Discover has worked to address payment disparities. Since 2018, women and minority employees earn, on average, $0.99 to $1.03 for every $1.00 a man or nonminority at the company earns.In 2022, Discover launched its Neurodivergent Connections program and actively recruited neurodivergent talent to the company.&nbsp; &nbsp;Discover’s Chatham Customer Care Center opened in 2021 and supported a Chicago initiative for businesses to bring jobs to underinvested areas. It employs more than 500 people, most of whom live in a five-mile radius of the center. Chatham has a goal to create 1,000 new jobs on Chicago’s South Side by the end of the year.

Fortune 100 Best Companies to Work For

The 200 companies on this list are transforming industries from the inside out.

Building a culture of trust and transparency is essential to help everyone thrive, especially in rocky economic times.

100 BEST COMPANIES 2023-Discover Financial Services

In its first year on the Best Places to Work For list, the financial services provider stands out because of its investments in employees’ careers and well-being. 
<ul> 
 	<li>Discover provides employees options to explore work beyond their jobs through “stretch” opportunities, or the ability to work and learn in a different department within the company separate from their day-to-day responsibilities.</li> 
 	<li>Employees are encouraged to dedicate time during the workday to participate in wellness-related programming, and the My Mental Health Matters Campaign is a monthlong series on mental health.</li> 
 	<li>The company launched a recruitment program focused on increasing neurodiverse talent in its workplace.</li> 
 	<li>“It doesn't feel like people or teams are competing, or hiding information that might help someone else,” says one employee. “I trust that if I reach out to anyone, they'll do as much as possible to help me with my question.”</li> 
</ul>

The 300 companies on this list are transforming industries from the inside out.

GPTW Financial Services & Insurance Large 2023-Discover Financial Services

Employees say: 
 
"I love working for Discover. I feel that I am valued as a person, and given opportunities to develop myself. There are development programs, trainings, and tuition assistance for schooling. Discover truly makes me feel empowered to better myself, regardless of the direction my career with them is going, even if that means someday seeking outside opportunities. I have managers who show me I'm more than a number, and want me to do my best and have a good work-life balance."

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

The companies on this annual list make a conscious effort to be supportive, inclusive workplaces.

GPTW Women 2022-Discover Financial Services

Employees say: 
 
“The overall atmosphere here is so different from anywhere else I have ever worked! EVERYONE cares about EVERYONE and EVERYONE helps and encourages EVERYONE to succeed! The culture here is so unique, it's refreshing and invigorating to work for a company that I actually look forward to coming to work every day! I know what I do is valued and making a difference here and that is NOT something you find too often! Discover is the place to be!”

100 Best Large Workplaces for Women

This year’s Fortune 500 marks the 68th running of the list.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-233-Discover Financial Service

The financial services company owns and operates Discover Bank, offering credit cards, banking, and payment services.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-231-Discover

The parent of the Discover and Diners Club cards is a direct bank and payment services company that offers consumer banking and lending.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

World's Most Admired Companies

This year's Fortune 500 marks the 62nd running of the list.

The second annual ranking of the best employers for workers 35 and under.

best workplaces for millennials 2016- Discover Financial Services

"Since the minute I walked into the doors of Discover, I felt a presence of appreciation and people here didn't even know me. I felt like these people wanted me to work for them, I felt wanted, to this day I still feel this way. I feel comfortable here and I've enjoyed the comfortable environment. What I've witnessed here is that people get the recognition they deserve. It makes you feel like you want to keep achieving more and more. They celebrate more than just your birthday so it feels like more than work. We still focus on our work and what needs to be done but we also get the chance to hang around and celebrate with our co-workers," says a millennial worker. 
 
&nbsp; 
 
According to another millennial employee, "When I started working here I was very scared. I thought i was going to make mistakes left and right but i was wrong. Our training program helped me get to where I am today. Our leaders push our boundaries to the limits to achieve what we don't think we can't achieve. The people Discover finds/hires bring out greater qualities in each and every single one of us. If one of us struggles we try and help each other out because Discover is my family outside of my family. I love this job because of our coworkers and thats reflected in out customer service. I am truly honored to be a Discover employee and for the chance to provide for my family because of Discover. THANK YOU DISCOVER!" 
 
&nbsp; 
 
Read the .

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Company Info

Industry

Industry Rank

Previous Industry Rank

Overall Score

Location

Website

Fortune 500 Rank

Fortune 500 Profile

Key Attributes Of Reputation

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

Global Competitiveness

Best Companies

Rank last year

Years on list

U.S. employees

U.S. job openings

Year founded

Benefits

100% health coverage

Subsidized childcare

Compressed work weeks

Option to work remotely

Minimum requirement in-office attendance (days per week)

Percentage of health care premiums covered

Mental health coverage

Free mental health sessions (per year)

Free backup childcare time off (days)

Maximum $ amount covered for fertility services

Fully paid maternal leave (days)

Fully paid paternal leave (days)

Fully paid adoptive leave (days)

Maternal leave in addition to regular time off (days)

Paid days off for volunteering

Best Workplaces In Financial Services And Insurance

Founded

Industry Vertical

Sites

Sector

Culture rank

Process rank

Product rank

Previous rank

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

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EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

Discover Financial Services, a digital banking and payment services company, was acquired by Capital One Financial in May 2025. The company is best known for its Discover card and suite of direct-to-consumer digital banking services. Discover was incorporated in 1960.

Q1 2025

Q4 2024

Discover Company Profile, Stock Price, News, Rankings

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Discover

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Good morning. My name is Madison, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q4 2024 Discover Financial Services Earnings Conference Call. All lines have been placed on mute to prevent any background noise. Thank you.

I would now like to turn the call over to Ms. Erin Stiefer. Please go ahead.

Thank you, operator. I'll begin by referencing Slides 23 of our earnings presentation, which you can find in the Financials section of our Investor Relations website, investorrelations. Discover.com. Our discussion today contains certain forward looking statements that are subject to risks and uncertainties that may cause actual results to differ materially. Please refer to our notices regarding forward looking statements that appear in our Q4 2024 earnings press release and presentation as well as the risk factors detailed in our annual report and other filings with the SEC.

Our call today will include remarks from our Interim CEO and President, Michael Shepherd and John Green, our Chief Financial Officer. There will be no question and answer session following today's remarks. However, the Investor Relations team will be available for any inquiries. It is now my pleasure to turn the call over to Michael.

Thank you, Aaron. Good morning and welcome to today's call. 2024 was a good and transformative year for Discover. When assuming the role of Interim CEO last April, I shared that our top goals were operating the company profitably and safely, continuing to strengthen our risk management and compliance, sustaining our commitment to outstanding customer service and preparing for the successful completion of our merger with Capital One. I'm happy to report today that we have made considerable progress on each of these goals.

We reported net income of $4,500,000,000 for the full year 2024 and earnings per share of $17.72 reflecting several factors. On a full year basis, we grew average loans, expanded our deposit base and benefited from a higher net interest margin. We also successfully completed the sale of our private student loan portfolio, which provided financial benefits and streamlined our business model. As we anticipated in our commentary, delinquency formation and net charge offs began to improve. And despite a modest slowdown in U.

S. Card sales, overall network volume increased driven by growth in our Pulse business and demonstrating the strength of our payments network. We continue to invest heavily in risk management and compliance in 2024 and we are seeing meaningful improvements in our programs. Additionally, we've made progress on meeting regulatory requirements and toward fully resolving the card misclassification matter. Throughout the pursuit of these goals, we remain

matter. Throughout the pursuit of these goals,

we remain steadfast in our commitment to customers and employees, evidenced by the customer satisfaction and workplace award recognitions we have received. Each of these successes positions us well for our pending merger. Capital One received approval of the merger from the Delaware State Bank Commissioner and our definitive merger proxy has been transmitted to shareholders in connection with the upcoming shareholder votes. Integration planning efforts are progressing well in preparation for a smooth transition. We continue to firmly believe the merger will advance our company's shared mission to help our customers meet their financial goals, support the communities in which we operate and create value for our shareholders.

With that, I'll now ask John Green to provide an update on our Q4 financial results.

Thank you, Michael. I'll start with our summary financial results on slide 5. In the Q4, we reported net income of $1,300,000,000 versus $366,000,000 in the same period last year. These results were driven by 3 main factors. First, provision expense declined by $707,000,000 This was largely from a reduction in our credit reserve balance compared to a reserve build 1 year ago.

2nd, as Michael mentioned, we successfully completed the sale of our student loan portfolio, which resulted in a gain of $381,000,000 The transaction in total provided an earnings benefit of 1,300,000,000 dollars including the reserve reduction of $869,000,000 recognized in the 2nd quarter. And 3rd, net interest income grew $162,000,000 from continued net interest margin expansion. In connection with finalizing the merger proxy, we restated financial results for the periods dated back to 2021, reflecting a reclassification of amounts related to the card tiering accrual. Furthermore, an independent review identified approximately $60,000,000 of incremental charges related to the card product misclassification and we increased our accrual for potential regulatory penalties by $90,000,000 in the 3rd quarter. Both are incorporated in our revised results.

Accounting for these updates, the cumulative impact on equity was a decrease of $151,000,000 Earnings for 2024 increased by $441,000,000 Back to the detailed results beginning with revenue on Slide 6. Our net interest margin ended the quarter at 11.96%, up 98 basis points from the prior year and up 58 basis points sequentially. Margin expansion was driven by product mix, investment of sales proceeds and a lower card promotional balance mix. Card receivables increased 1% year over year due to a slightly lower payment rate, partially offset by a decrease in sales volume. The payment rate declined around 10 basis points from last year, was down 20 basis points sequentially and is approximately 90 basis points above pre pandemic levels.

Over the past several quarters, payment rates have stabilized. Discover card sales were down 3% compared to the prior year. The decline in card sales is primarily due to credit tightening actions, which began in 2022. Holiday sales were strong and we currently see an opportunity to increase new account acquisition in the coming year. This is expected to provide a modest boost to 2025 sales with more substantial benefits expected in 2026.

Personal loans were up 5% from the prior year. Demand remains strong and we continue to take a conservative approach to underwriting. Total loans after adjusting for the student loan sale increased 3%. Average consumer deposits were up 10% year over year and 2% sequentially. Deposit growth driven by industry leading products, customer experience and our value proposition has enabled us to improve our funding mix.

Direct to consumer deposits now account for 72% of total funding, bringing us within our targeted range of 70% to 80%. We continue to manage deposit balances to meet our liquidity needs and anticipate a through the cycle beta of around 70%. Looking at other revenue on Slide 7. Non interest income increased $417,000,000 or 59%. Other income increased as a result of the successful student loan exit.

Net discount interchange revenue was up $45,000,000 due to increased cash back debit volume and lower rewards. The rewards rate was 135 basis points in the period, a decrease of 2 basis points driven by lower cash back match, which was largely offset by an increase in 5% rewards. Sequentially, the reward rate is down 9 basis points from changes in the promotional category. Moving to expenses on Slide 8. Total operating expenses were up $67,000,000 or 4% year over year.

Looking at our major expense categories, compensation costs increased $146,000,000 or 23%, primarily due to higher wages and benefits and proactive employee retention actions. Marketing costs declined $73,000,000 in the quarter due to timing of broad market advertising. Information processing increased as a result of technology investments and a twenty $2,000,000 write off pertaining to our student loan infrastructure. Professional fees were up $51,000,000 or 16%. This increase was driven by approximately $44,000,000 of merger and integration costs and loan sale expenses.

We recognized $588,000,000 of risk management and compliance expense in addition to card misclassification costs and $118,000,000 of merger and integration expense in 2024. Moving to credit performance on Slide 9. Total net charge offs were 4.64%, 53 basis points higher than the prior year and down 22 basis points from the prior quarter. On a full year basis, net charge offs ended at 4.8%, slightly better than our guided range. In card, net charge offs declined 25 basis points from the prior quarter and the 30 plus day delinquency rate was flat.

This marks the 3rd consecutive quarter the card net charge off rate has declined. The 2023 card vintage is maturing and is now expected to modestly outperform the 2022 vintage. We are seeing improvements across the portfolio. Personal loan net charge offs and delinquencies continue to be within historical norms. Increases reflect the seasoning of recent growth.

Our view on the consumer has not changed. We continue to observe a stable consumer supported by wage growth and a resilient labor market providing a foundation for sales and credit headed into 2025. Turning to the allowance for credit losses on Slide 10. Our credit reserve balance decreased $189,000,000 from the prior quarter. The reserve rate was 6.87 percent, down 31 basis points driven by our credit performance, improvement in household net worth and an increase in seasonal transactor balances.

Absent seasonal balances, the reserve rate would have declined by about 20 basis points. In terms of the macroeconomic outlook, our expectations for unemployment and GDP are relatively unchanged from last quarter. We now assume peak unemployment of 4.7%, up 10 basis points. Our GDP forecast remains in the 1% to 3% range. Looking at Slide 11.

Our common equity Tier 1 ratio for the period was 14.1%, up 160 basis points compared to the prior quarter supported by the student loan sale and core earnings generation. We declared a quarterly cash dividend of $0.70 per share of common stock. Including on Slide 12, given the pending merger, we will not provide numerical guidance. However, I'd like to provide some insights on trends for 2025. We anticipate loan growth to align more closely with pre pandemic norms.

Tailwinds from declining payment rates appear to have largely subsided. Sales and new account generation should play a larger role in driving growth than in the recent past. We expect net interest margin to remain relatively consistent with the 4th quarter level, although an increase in new account generation may create some margin pressure in the back half of the year. Mitigating factors include declining deposit rates and our improved funding mix. We have not contemplated any significant changes to our expense base prior to merger approval.

Previously, we had shared the expectation for net charge offs to peak and plateau. We are beginning to see a downward trend. To summarize, our strong 4th quarter results brought an excellent close to 2024. In 2025, we will continue to invest in actions that drive sustainable long term value and prepare for the consummation of our pending merger with Capital One. This concludes our remarks.

I'll turn the call back over to the operator.

Today's call has ended. The Discover Investor Relations team will be available for questions. Thank you for joining. You may now disconnect.

Discover Q4 2024 Earnings Call Transcript

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