you, and morning Thank good Roger everyone.
associates. on from echo on Before professionalism with throughout. working provide capital and Today, frontline update I all Discover quarter response our the people an the details for I I want loan on begin, to thanks summarize high levels the our I They provisions. COVID-XX funding actions. trends over also and service performance Roger to call work pivoted to thank will turning while maintaining credit home I results the have to before and then summarize back will conclude the all their the a of Roger’s to to want through environment, pandemic.
our of provided the reductions cost of in withdrawing the economy, through half. the But we the previously majority million are mentioned, the the light In of year with second targeting are balance we as uncertainty in $XXX guidance. Roger
vendor spend. activities, Our expense account cutting reducing awareness expense, include spending consideration actions reducing technology acquisition on brand and and and
We incremental the on spend discretionary will payback as review changed. spending continue has all to
of any you quarterly on XX this always, these find our growth, of aspects not pandemic so we the the going slides to on our interest appendix additional review on XX In on impacts morning and of this to And other responses, are customary focusing can happy as payment comments we the disclosures questions presentation. to revenue, the and the our in Slide volumes to results. loan are take or
On This This the a and additional was average by beginning in net quarter. Slide expense, down in second the September due yields segment to lower March a XX.XX% looking driven this partially loans key XX loan $XX margin interest lower payment of prime elements will at sale and X% from of was a down of largely as revenue, increase came cuts gain increased primarily funding last Net quarter impact net year Fed basis investment. of for of X% costs. portion our rate income this response points million offset of principally cuts an the Fed quarter. services net statement, rate year-over-year to in in a rate in X, equity interest the year. margin The was by October interest in first
moment, next the compensation outlook. for deterioration and billion, additional to losses They X% economic of prior but expenses. increased in from charge-off before I operating million, to cost investments were the marketing in approximately higher a reflecting net and comments will credit an The principally Provisions their of have expense, up XX% last slide, we turn technology. from credit due reserves year some up a $XXX discuss in increase $X included I increase year quarter. to in want was in first
flat COVID-XX not mitigation Slide credit from our from in the credit to see in year, basis increased the credit discernible national principally basis but activities charge-offs quarter XX-plus patterns. in seasoning points points loan response. X quarter our remained due containment impacts both card performance key We last XX of seasonal year’s metrics, The up any typical first own from from delinquency performance Card prior XX metrics stable showing or with last versus consistent now was to did credit growth. actions reflecting rate Turning quarter. the
had performance showing personal slight in the student portfolios in loan loan Our improvements and both quarter delinquency credit rates. also private and charge-off with
approximately rising quarter, than forecast. and to credit through On Slide see this to of to to in allowance $X build the in the added billion of recovering more changes for our added X, reserve We CECL allowance macroeconomic X%, as largely to a credit January loan will assumes year transition the XX%. losses. losses end a the nearly life of basis. At billion allowance The unemployment in the GDP for you of we decline due we XXXX $X.X
our of stimulus government the We programs. estimate also implications best of reserve included
the allowance accordingly. the our of will the outlook government impacts economic various evolves and relief adjust clear, we As more programs become
X, to decrease Tier a Turning our Slide X XX loan in by basis capital common ratio offset due mainly increased equity points partially to returns. balances sequentially,
of adjustment recognition For purpose capital, Day X years. for elected we the defer have regulatory CECL of to calculating X
the quarterly the Day CECL until of we regulators in the in have build begin federal phase XXXX being phase in CECL also our the impact XXXX. then also deferral. for a Day provided create in with So to same impacts Day of banking The and saved XX% will with X XXX% by X as deferred reserve XXXX X
was includes over XX% the which XX payout Our ratio, last buybacks, months.
Roger have As share buyback dividends. suspended will program, quarterly continue fund regular noted, to our we we but our
Our liquidity very position strong. remains
assets, As securitizations, borrowing Federal of committed borrowing in asset-backed in the window. and billion discount the we Reserve liquid privately $XX billion $X the had through billion of placed in end capacity capacity quarter, $XX at
our $XX have more to billion. grown XX, than liquid assets As of April
basis XX% In increasing reduced our up direct-to-consumer now opportunities of will for access and addition funding demand savings total have continue to look so. to rates XX% channel points deposits we to and by funding. Based on we consumer the forms liquidity, year-over-year with over our account XX strength of committed of yesterday, average on those and to through deposit do actual making
good monitor Capital our to And manage progress turn the to Liquidity front. we credit now summary, and strong on over robust. back is call In will and I Roger. the continue expense remains exposure.
