Risk Factors Update Summary

• The company is expected to incur substantial expenses related to the Transaction and Discover integration. This could result in increased costs and impact financial results significantly.
• Enhanced legal and regulatory scrutiny on consumer lending activities could result in significant legal liabilities.
• Failure to effectively manage expanded operations post-Transaction may lead to future result suffering. This could impact financial performance and operational efficiency.
• Proposed legislative changes may impact privacy, data protection, and data security laws.
• Potential increases or fluctuations in delinquencies and credit losses could result in inadequate reserves. This may impact financial results and liquidity levels.
• Increased focus on interchange fees globally may lead to regulatory changes affecting revenue.
• Limitations on receiving dividends from subsidiaries could affect liquidity and ability to return capital to stockholders.
• A downgrade in credit ratings could significantly impact liquidity, funding costs, and access to capital markets.
• Risks related to operational, technological, and organizational infrastructure could impact business operations and financial results.
• Risks from cyber-attacks or security incidents could result in increased costs, reputational damage, and business disruptions.