Thank you, Roger.
Before confirmed that view to wanted looking that opportunity exciting as I I the My to a you. to the all as with was excited to work with say joining be I'm initial I'm of very part well my forward I first great of an future organization. Discover team. begin, Discover month
at onto hand. by I'll the begin Now our results addressing business summary financial X. Slide on
and X% consumer provision with was credit key income. income Looking very continued the loan driven in mainly lesser a X% increase revenue in losses quarter newer driven The statement, of normalization industry. at the X% the by by expectation a elements in growth this interest of of seasoning by was vintages the and to X%, our extent growth solid loan for net of growth driven the supply consistent
growth supportive Net a new Operating tax capabilities. EPS and the up certain the year-over-year favorable were up matters. effective quarter expense benefit were XX.X%, reflecting was The X% tax expenses rate resolution to and investments higher for compensation from income $XX X% of due and in respectively. million and XX%
to over X% led in balances Slide growth Standard Turning prior X% increased credit growth. the of merchandise receivables. the loans X, card continued card by primary be receivable year, driver to
XX% of XX% new over to minimal, the balances reflecting past quarters, of in existing. from about from roughly contribution the level accounts was the reduce decision promotional balance from activities increase loan growth and the from was promotional our several While
growth of expectations was X% increasing strong prior the new and previously through in from prior models. portfolio loan to of position. our as piece the year. slowdown our from increased The Turning reflecting student year-over-year, organic mentioned loans. Personal work line student with up were reflecting loan Total X% underwriting X% competitive loan we testing year, the originations our development in the balances
on Diners right volume up in X, volume from volume by and volume. PULSE issuers XX% prior our Network payments existing you as new X% on and In volume to PINless PULSE the while the E-commerce. drove year. Express year, products To increased network was growth can to such proprietary PULSE issuers, Payment Partners incremental volume prior the AribaPay see Slide the PAY flat the PULSE over in Moving X% driven the year-over-year. Club increase Services, was
prior Slide factors. driven X% to X, Moving year, interest billion three up by was revenue $X.X on from of income the net
higher loan balances. First,
higher quarter year's of million income. or decline The million higher quarter. last net loan third, quarter, the and noninterest down the was lower promotional revolve year's in quarter. fee somewhat in Total drivers and were Second, X% interchange offset revenue, from lower discounts $X this rate by principle this income balances $XXX partially
was Drilling bit, revenue million was as and was a rewards $XXX income. from higher to occurrences revenue the This more an million X% category. The and PayPal due increase than down an discounts volume adding adjustment processing was from primarily days, down offsetting net the quarter, the prior or as higher X% increase interchange as Sales when in costs. up in in rewards X% was loan an volume XX% offset by late fee to fee X% tiers. sales revenue fee for due were interchange principally net well $XX pricing in of was to year normalizing increase discounts in late decrease the
promotional coupon year-over-year As year, up basis direct-to-consumer shown decreases decreased and with mix were second points due increase favorable impact by Compared brokered to along of margin July down revolve These quarter in the balance and our costs principally the points third higher charge-offs. Slide partially on and the prime NIM interest the was basis Relative X, and rate deposits, in was deposit direct-to-consumer higher XX four due a offset interest net brokered lower quarter, of the sequentially. to and XX.XX%, of by to to rate. higher NIM and last September. roll-off
was basis basis yield rate basis card, yields a XX private a XX.XX% loans personal in driven XX student and loan Partially a charge-offs. points our points loan year principle of this increased loans. lower products, all favorable in revolve increases higher by in mix, basis to interest in XX ago for XX offsetting Total points points funding and from
was higher short-term of the benefited balances by interest the rates as floating decreases. XXXX impact rate loan and rate portfolio and primarily XX% partially were year-over-year higher by yield recent lower prime which favorability impact student increases, in The the rate driven a the the level rate. is yield revolve increase of of interest Card charge-offs about offset promotional of from in prime
year personal as of pricing in the actions. increase was driven yield impact also loan positive The in as by rate prime prior well the increases
offset Fed won't We by be expect compression to from rate, recent funds lower the costs. degree which entirely funding a cuts see yield in of
by our this neutral We steadily point. action consider to be have interest our asset sensitivity position reducing rate risk taken essentially at and
foreseeable Looking this the position expect rate risk maintain interest we ahead, for to future.
outlook rate XXXX. points Our one XX anticipates more basis reduction in
the sheet, from year. and quarter prior grew decreased XX side last make XX% of year XX% four prior the deposit liability of from points Consumer average basis total deposits and the up consumer rates funding. now the points On balance basis above
pricing disciplined a a Importantly, Since began deposit we've maintaining XXXX, online strategy. been able growth achieve price we strong deposit in XX% realized rates the savings. to cumulative for Fed while raising beta
Of rates Fed XX savings by we've responded course, and last our accounts by they realize on has basis recently months. beta where target the of our few the its cut XX% over lowering points deposit rate
will account into to deposit competitors' taking continue prudently costs behavior. We manage
Slide $XX year. card were in million products higher the related to infrastructure lending support in information account business as growth reflects to our and that in million the prior collection Turning acquisitions additions with Employee from $XX compensation and million, operating in in staff year. X% little to salaries quarter. and a up other costs cost X, processing investment increased technology as increase over expenses X% by well prior investments continued new average the recoveries to from total higher and increased analytic drove Increased higher student Professional capabilities. driven deposits, our due benefits. half rose across $XX marketing areas of fees The
the Now from and to I'll Slide were driven total basis higher results growth credit discuss primarily the our were seasoning Credit year-over-year normalization. prior loan The credit basis card supply performance eight The be continues increase up driven approach XX and net points charge-offs by XX XX net of and credit basis reflecting points XX down charge-offs year. points X, on XX up continues and card and sequentially. to delinquency management rate existing credit card plus was disciplined basis from year-over-year new our basis quarter. the the points points solid, business be in accounts. very both to prior Credit up
charge-offs XX prior two points student the Personal gains year-over-year collection, performance in Private points basis aided credit outreach points year net efficiency down decreased sequentially with communication remains and to loan enhanced and charge-offs including net and strong basis basis XX by co-signers. loan sequentially. points XX also basis from
year-over-year delinquency and significant XX credit flat plus and to was rate quarter basis quarter, seasonality from as performance reflects degree The improvement down eight the stabilize. a continues of points in prior prior to charge-offs that originations the
buybacks Slide XX.X%, capital Common comment payout remains on a flat just the XX%. at including ratio capital last here. XX, sequentially Tier equity for brief ratio XX was at X Looking our months
on our and loan a Now generated Slide total XX% growth summarizing results for on the return we equity. quarter XX, X%
composes seasons consumer products reflects respect as Our performance trends across business and and XX% credit of our and rates our their expectations to have credit over deposit while our With saw targets. half loan consistent growth now total positive strong increased lending funding. charge-off normalize, conditions and return where remains growth
capital capital to to capital continue return, our plan and We helping to our execute ratios loan bring on closer targeted with growth levels.
operational XXXX, aspects guidance. on strong finish Finally, achieving financial and track for a to our remain we all of
this great the In solid was by a with quarter conclusion, execution team.
be say I to part to the of helping strong wanted I Q&A, grow before business again continue this am forward how look execution we the franchise. go Now great excited I its team. history as of to Discover I to
call to for With that, the the operator, Q&A. to I'll turn the back open Erica lines
