Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 125: 
16.    Earnings Per Share

The following table presents the calculation of basic and diluted EPS (dollars and shares in millions, except per share amounts):|    |                                                                                  |                                  |       |      |       |      |       |       |    |       |
|---:|:---------------------------------------------------------------------------------|:---------------------------------|:------|:-----|:------|:-----|:------|:------|:---|:------|
|  1 |                                                                                  | For the Years Ended December 31, |       |      |       |      |       |       |    |       |
|  2 |                                                                                  | 2023                             |       | 2022 |       | 2021 |       |       |    |       |
|  3 | Numerator                                                                        |                                  |       |      |       |      |       |       |    |       |
|  4 | Net income                                                                       | $                                | 2,940 |      |       | $    | 4,374 |       | $  | 5,422 |
|  5 | Preferred stock dividends                                                        | (62)                             |       |      | (62)  |      |       | (69)  |    |       |
|  7 | Net income available to common stockholders                                      | 2,878                            |       |      | 4,312 |      |       | 5,353 |    |       |
|  8 | Income allocated to participating securities                                     | (19)                             |       |      | (26)  |      |       | (30)  |    |       |
|  9 | Net income allocated to common stockholders                                      | $                                | 2,859 |      |       | $    | 4,286 |       | $  | 5,323 |
| 10 | Denominator                                                                      |                                  |       |      |       |      |       |       |    |       |
| 11 | Weighted-average shares of common stock outstanding                              | 254                              |       |      | 277   |      |       | 300   |    |       |
| 12 | Effect of dilutive common stock equivalents                                      | -                                |       |      | 1     |      |       | -     |    |       |
| 13 | Weighted-average shares of common stock outstanding and common stock equivalents | 254                              |       |      | 278   |      |       | 300   |    |       |
| 15 | Basic earnings per common share                                                  | $                                | 11.27 |      |       | $    | 15.45 |       | $  | 17.75 |
| 16 | Diluted earnings per common share                                                | $                                | 11.26 |      |       | $    | 15.44 |       | $  | 17.74 |
Anti-dilutive securities were not material and had no impact on the computation of diluted EPS for the years ended December 31, 2023, 2022 and 2021.

17.    Capital Adequacy

DFS is subject to the capital adequacy guidelines of the Federal Reserve. Discover Bank, the Company's banking subsidiary, is subject to various regulatory capital requirements as administered by the FDIC. Failure to meet minimum capital requirements can result in the initiation of certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could limit the Company's business activities and have a direct material effect on the financial condition and operating results of DFS and Discover Bank. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, DFS and Discover Bank must meet specific risk-based capital requirements and leverage ratios that involve quantitative measures of assets, liabilities and certain off-balance sheet items, as calculated under regulatory guidelines. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.
DFS and Discover Bank are subject to regulatory and capital rules issued by the Federal Reserve and FDIC, respectively, under the Basel Committee's December 2010 framework ("Basel III rules"). Under the Basel III rules, DFS and Discover Bank are classified as "standardized approach" entities. Standardized approach entities are defined as U.S. banking organizations with consolidated total assets over $50 billion but not exceeding $250 billion and consolidated total on-balance sheet foreign exposure less than $10 billion. 
In accordance with the final rule on the impact of CECL on regulatory capital, the Company has elected to phase in the impact over three years beginning in 2022. Accordingly, the Company's Common Equity Tier 1 ("CET1") capital ratios are higher than they otherwise would have been. The Company's CET1 capital ratios will continue to be favorably impacted by this election over the phase-in period, which ends December 31, 2024. 
As of December 31, 2023 and 2022, DFS and Discover Bank met all Basel III minimum capital ratio requirements to which they were subject. DFS and Discover Bank also met the requirements to be considered "well-capitalized" under Regulation Y and prompt corrective action rules, respectively. There have been no conditions or events that management believes have changed DFS' or Discover Bank's category. To be categorized as "well-capitalized," DFS and Discover Bank must maintain minimum capital ratios outlined in the table below.
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, Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 126: 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):
|    |                                                |        |        |                             |                                                         |    |       |    |           |          |       |     |        |     |        |
|---:|:-----------------------------------------------|:-------|:-------|:----------------------------|:--------------------------------------------------------|:---|:------|:---|:----------|:---------|:------|:----|:-------|:----|:-------|
|  1 |                                                | Actual |        | Minimum CapitalRequirements | Capital RequirementsTo Be Classified asWell-Capitalized |    |       |    |           |          |       |     |        |     |        |
|  2 |                                                | Amount |        | Ratio(1)                    | Amount                                                  |    | Ratio |    | Amount(2) | Ratio(2) |       |     |        |     |        |
|  3 | December 31, 2023                              |        |        |                             |                                                         |    |       |    |           |          |       |     |        |     |        |
|  4 | Total capital (to risk-weighted assets)        |        |        |                             |                                                         |    |       |    |           |          |       |     |        |     |        |
|  5 | Discover Financial Services                    | $      | 17,986 |                             | 13.7                                                    | %  |       | $  | 10,471    |          | ≥8.0% | $   | 13,088 |     | ≥10.0% |
|  6 | Discover Bank                                  | $      | 16,856 |                             | 13.0                                                    | %  |       | $  | 10,352    |          | ≥8.0% | $   | 12,939 |     | ≥10.0% |
|  7 | Tier 1 capital (to risk-weighted assets)       |        |        |                             |                                                         |    |       |    |           |          |       |     |        |     |        |
|  8 | Discover Financial Services                    | $      | 15,872 |                             | 12.1                                                    | %  |       | $  | 7,853     |          | ≥6.0% | $   | 7,853  |     | ≥6.0%  |
|  9 | Discover Bank                                  | $      | 13,910 |                             | 10.8                                                    | %  |       | $  | 7,764     |          | ≥6.0% | $   | 10,352 |     | ≥8.0%  |
| 10 | Tier 1 capital (to average assets)             |        |        |                             |                                                         |    |       |    |           |          |       |     |        |     |        |
| 11 | Discover Financial Services                    | $      | 15,872 |                             | 10.7                                                    | %  |       | $  | 5,915     |          | ≥4.0% | N/A |        | N/A |        |
| 12 | Discover Bank                                  | $      | 13,910 |                             | 9.5                                                     | %  |       | $  | 5,833     |          | ≥4.0% | $   | 7,292  |     | ≥5.0%  |
| 13 | Common Equity Tier 1 (to risk-weighted assets) |        |        |                             |                                                         |    |       |    |           |          |       |     |        |     |        |
| 14 | Discover Financial Services                    | $      | 14,816 |                             | 11.3                                                    | %  |       | $  | 5,890     |          | ≥4.5% | N/A |        | N/A |        |
| 15 | Discover Bank                                  | $      | 13,910 |                             | 10.8                                                    | %  |       | $  | 5,823     |          | ≥4.5% | $   | 8,411  |     | ≥6.5%  |
| 17 | December 31, 2022                              |        |        |                             |                                                         |    |       |    |           |          |       |     |        |     |        |
| 18 | Total capital (to risk-weighted assets)        |        |        |                             |                                                         |    |       |    |           |          |       |     |        |     |        |
| 19 | Discover Financial Services(3)                 | $      | 18,004 |                             | 15.8                                                    | %  |       | $  | 9,139     |          | ≥8.0% | $   | 11,424 |     | ≥10.0% |
| 20 | Discover Bank(3)                               | $      | 16,344 |                             | 14.5                                                    | %  |       | $  | 9,024     |          | ≥8.0% | $   | 11,280 |     | ≥10.0% |
| 21 | Tier 1 capital (to risk-weighted assets)       |        |        |                             |                                                         |    |       |    |           |          |       |     |        |     |        |
| 22 | Discover Financial Services(3)                 | $      | 16,039 |                             | 14.0                                                    | %  |       | $  | 6,854     |          | ≥6.0% | $   | 6,854  |     | ≥6.0%  |
| 23 | Discover Bank(3)                               | $      | 13,446 |                             | 11.9                                                    | %  |       | $  | 6,768     |          | ≥6.0% | $   | 9,024  |     | ≥8.0%  |
| 24 | Tier 1 capital (to average assets)             |        |        |                             |                                                         |    |       |    |           |          |       |     |        |     |        |
| 25 | Discover Financial Services(3)                 | $      | 16,039 |                             | 12.5                                                    | %  |       | $  | 5,147     |          | ≥4.0% | N/A |        | N/A |        |
| 26 | Discover Bank(3)                               | $      | 13,446 |                             | 10.6                                                    | %  |       | $  | 5,086     |          | ≥4.0% | $   | 6,357  |     | ≥5.0%  |
| 27 | Common Equity Tier 1 (to risk-weighted assets) |        |        |                             |                                                         |    |       |    |           |          |       |     |        |     |        |
| 28 | Discover Financial Services(3)                 | $      | 14,983 |                             | 13.1                                                    | %  |       | $  | 5,141     |          | ≥4.5% | N/A |        | N/A |        |
| 29 | Discover Bank(3)                               | $      | 13,446 |                             | 11.9                                                    | %  |       | $  | 5,076     |          | ≥4.5% | $   | 7,332  |     | ≥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.
(3)Capital amounts and ratios have been updated to reflect the impact of the restatement described in Note 26: Immaterial Restatement of Prior Period Financial Statements. Discover Bank capital amounts and ratios presented as of December 31, 2022 have been updated from amounts previously disclosed in the Company's Form 10-Q for the period ended September 30, 2023, due to certain intercompany allocations recorded in the fourth quarter.
The amount of dividends that a bank may pay in any year is subject to certain regulatory restrictions. Under the current banking regulations, a bank may not pay dividends if such a payment would leave the bank inadequately capitalized. Discover Bank paid dividends of $1.7 billion, $4.0 billion and $3.3 billion in the years ended December 31, 2023, 2022 and 2021, respectively, to DFS.
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Question: How does Discover’s CET1 compare to regulatory minimums in 2023?
Answer: DFS: With a CET1 ratio of 11.3%, DFS comfortably exceeds the regulatory minimum requirement of 4.5%. Indicating that it is well-positioned to absorb potential losses while maintaining financial stability.
Discover Bank: Discover Bank's CET1 ratio of 10.8% is above the regulatory minimum requirement of 4.5% and also exceeds the well-capitalized threshold of 6.5%. This reflects strong capital adequacy and a solid cushion above the required levels, which supports its ability to manage risks and comply with regulatory standards.