impact driven $X.XX corporate tax I’ll diluted fourth the Cuts Slide This deferred Jobs of this But of the Margaret. million, by presentation. lower Tax remeasurement share. the we in the morning, on passed earnings rates tax $XXX our of or quarter December. X Act related Thanks, to assets, in net and included per start reported the
impact, or $X.XX earned we quarter. share fourth this per in million, diluted $XXX Excluding the
income quarters X% deliver growth due we’ve year. interest last X% receivables. noted I and business. have primarily we’re the refinements in will to the loan in made more receivables pleased impact refinements the fee continued with we receivables growth the growth generated grew underwriting HHGregg bankruptcy. and the loan and strong presentation. to we by slower previously the The Overall, of Purchase compared the interest later volume underwriting We to year. over detail over The growth up the recent was cover in driven fees was and up last X% growth across with on
would we expect on value in last As we year. impact decreased in that move increased The active continued X%. included are solid these forward balances in consumers. another to X% average and year-over-year, propositions offers the up the moderate million, to with their compared had continue balance per from rate, cards with We driven quarter to items strong which year impact quarters. by prior growth, in the future average resonate in promotional our accounts X% account growth positive average or active and trends RSAs $XX run average
strong was from operating growth average quarter, the X.X% percentage the top expense. this down receivables RSAs leverage incremental generated share quarter, we While higher last by in the as was positive and a year. provision for offset X.X% line of
The prior credit increased I had in growth. moderating the slightly RSAs by reflecting income by Other reserve $XXX presentation. range build $XXX the million normalization. the losses trends provision asset million model. and one the over in lower XXXX, The in will of normalization driven million we our was X.X% year, primarily were quality versus business loan than for natural detail we the lower last lower X.X% later in than XXXX metrics $XX year, was quarter driven receivables enter cover as more credit XX% the offsets the in expected, year. For
by was While and $XX spending everyday our loyalty this driven value by million, interchange on continued expense was up $XX offset driven growth by propositions. Dual out-of-store by Card, increased in million, primarily
and is partial on a loyalty RSAs, back interchange of there each the the so reminder, expense a As to run these offset items.
trend driven noted As with expense or by loyalty $XX X% increased quarter, we fluctuation. quarterly versus marketing. percent last last we to as expect program XXX% year, revenue million, Other interchange primarily growth a some near in of expenses
our and and going forward digital our expect growth, to office. driven largely platforms strategic mobile including and to automate back and investments expenses continue program, by capabilities to enhancements streamline in We deposit our be investments sales direct to our
to up was business trends. year income to positive over I’ll point the margin X improvement. operating to X%, and income to yield driven our on Net related XX.X% was receivables as we loan benchmark increased largely last a costs liquidity by growth. efficiency basis continues degree to margin year our in higher Lastly, the a quarter benefited the versus by cover funding strong with average of have well decline The X XX growth. by the interest a to interest-bearing was primarily and rates ratio continued year, slightly excess liquidity our due to higher the margin net rates receivables generate amount as as XX.XX% compared down interest XXX we’re our points XX.X% Slide mix from higher significant continue optimize XX.XX%. margin net in liquidity PayPal. prefunding move leverage. basis to slight compared The of to for offset on and compared in receivables receivables holding and last year’s points, line driven of deployed interest basis margin from support expectation. higher was that by This The strong was The last last a liabilities,
the for outlook expectations going in XXXX later. our forward margin cover will We our
key on our X. credit Slide cover I’ll Next trends
dynamics delinquencies last XX-plus last specific delinquencies with the X.XX% of and X.XX% X.XX% start year. I’ll X.XX% to versus the XX-plus trends. compared terms quarter, in In were delinquency year, were
resulted net to last normalization. a in charge-offs. rate net was year. the continues factor NCOs largest The contributing charge-off to compared to Moving X.XX% to This increase be The X.XX% in from allowance the our year and was for million. expectations. $XXX build third percent X.X% X.XX% losses loan a as The near reserve receivables for quarter of the rate was the NCO
As noted due lower normalization reserve we the than million to impact expected from earlier, somewhat growth. I was build the credit $XXX slower moderating and range receivables
our the I’d our describe volume to to growth. we As underwriting purchase related more the to refinements recent forward on like impact and look XXXX, vintages
vintages First, trend the most recent continue in line expectations. to with our
making the XXXX the we see started changes. As to continue refinements and in our underwriting those you of to impact remember, we second-half of positive
throughout the XXXX Additionally, we that in our the year changes line vintage have vintage continued to performing better XXXX underwriting XXXX is the than suggests and vintage. with make incremental curve more data and
underwriting purchase these have Now in refinements our score. resulted by surprisingly, mix also to volume FICO changes
strong If increased XX% same you FICO pace volume continue XXX, purchase to year. accounts purchase stratification, with a at a by last in greater grow we score FICO the look quarter at than which volume fairly over
our FICO economic While credit expectations expect normalize we and on purchase pace XXXX actually range we in on our XXX as we of volume for taking. impact the loss continues These XX%, I’ll the into actions from of summary, assuming for declined beyond. been reflecting below outlook provide credit here, have view trends next help and Later, year. our moderate the move expectations will the to XXXX, while In change stable conditions. the inform results
good see returns. to continue for adjusted We at growth opportunities attractive continued risk
expenses million, marketing. driven up in over Expenses year. the growth I’ll primarily continued came last Moving to expenses by at cover X, X% Overall, quarter. and be for to Slide our $XXX
earlier, XX.X% continue I ratio over last for As noted year, while to core to in the our was operating basis as efficiency investments. leverage quarter the point XXX improvement business, a drive the continuing we fund strategic over
of January XX.X%, back our year For the ratio points below from original outlook was down well approximately in full-year, the prior basis and over the efficiency XX XX%.
cover position, Slide Moving as execution capital funding well plan XX, we announced liquidity the to May. sources, I’ll continued our capital as in of and
our been our funding one our strong Looking the of growth funding profile base. has drivers of the of first, at primary deposit continued strategy
business. of continue funding the for attractive as stable, source view this We to a
our slightly billion, XX% our primarily at puts operating through at our Over grown the of the This XX% deposits year, deposit we than last program. year. deposits funding, by higher over last direct $X we’ve level were
Longer-term, to ability customers. our with We our in continuing attract to growth as customer expect our digital Overall, pleased attractive our deposit to and program our building in with deposits we and continue receivables grow to growth. as capabilities. great line rates by continue out deposit we’re to retain drive service, well expect direct offer to
Credit well prefunding the which plan received rate market. our of billion the in of for fixed we fourth part by the issue did As debt quarter, XX-year PayPal very portfolio, $X was
continue prefunding the onboard prepare PayPal in execute we as XXXX. will plan both to will the consist We and to The deposit third of prefunding portfolio our quarter of funding. wholesale
of So our overall, we execute funding strategy very to our continue feel a diverse and set funding about to access good sources.
at capital of of on billion, XX.X% to under phased-in phased-in capital point was basis is which of the We reflecting XXX basis to and our ended is some Total plan the reflecting compares last fully Turning quarter the Basel liquidity. deployment XX.X% fully our down reduction, the from through XX% last of This impact rules. year $XX.X to III a CETX and This liquidity. growth. around XX% our assets. liquidity year, deployment equal total capital
subject the as the and levels. We expect approach to modified these levels liquidity above LCR be well LCR required to put
to We During per plan execute dividend stock repurchased quarter, May. $X.XX a million we and common of on the share announced $XXX stock of capital during continue fourth quarter. the in the we common paid
little have authorized share $X.XX over the in XXXX. of million Board $XXX through quarters June the billion ending our XX, a remaining repurchases four We
built execution strong plan and repurchases. deploying growth form a further we with the of balance levels, capital through share dividends liquidity on the and diversified we continue share strong legal and to capital and market plan and will and sources in to continue repurchase subject any sheet funding capital and our execute very other of We approvals. and conditions to required We outlined new we regulatory strategy that factors, continue restrictions the including execute Overall, previously. to expect
receivables. last versus we XX, recap I’ll performance provided Starting with XXXX the outlook January. on loan Slide Next our
in to in Our marketing partners X% outlook of The growth value be driven to our X% line on range the props X%. our with organic delivering XXXX strong cards was with strategies by our our and of continued growth strong growth.
than data margin second-half better new drive continued for some a along revolve Our and asset benefit in driven to offset than rates, were as last win sharing to and continued for impact innovation growth, which major provided capabilities tempering by expense, of in benchmark from expected original the to XXXX underwriting the well of mobile, optimal the in substantially the analytics program receivables RSAs higher and mainly a of ability X.X% are than the X.X% of a and of XX.XX% came began range in RSAs our more the partly was the percent higher organic the lower was interest to the we by as RSAs. XX% January. Higher XXXX. This back some enhancing funding in in is year, versus Net provision the refinements nature Moderately X.X%, data performance. as we mix outlook investments programs. at with average implement lower the deposit came from our yield growth from drivers rate of outlook receivables the of January. countercyclical demonstrates XX.XX% outperformance.
to XX.X%, XX%. the next significantly ratio was year, and XXXX of largely continued normalize year Our outlook net the in we for X.XX% Net favorable was outlook. rate and in to charge-offs very our off expect the outlook the into charge-off lower range. efficiency X% will line with than which I discuss in of around revised XXXX continue our levels The this in low
assets RSAs. we return expense. We continue And higher impact provision X.X%, of was Tax expense of Act. growth leverage lastly, to all higher by which the The provision outperformance. partially operating margin productivity, offset strong and leverage drive higher through revenue operating the offset on led higher increased the and a to excluding the generated The to were margins,
XXXX Moving to XX. outlook on our Slide
XXXX Our unemployment for continues the and is macro this year Fed assumptions rate mainly assume to tighten the stable.
including well the are portfolio. the an PayPal view impact Credit portfolio, We without onboarding the outlook providing a of as as
X, in XXXX expect of outlook. quarter third the the to of XXXX close closing July a purposes and We assume of for date
The range. continue. refinements is takes X% and for the assumes to lower growth trends account X% underwriting receivables outlook growth Our economic slightly without rate PayPal in into
volume sales broader grow to growth. to e-commerce to expect for We sales times three with at two retail and continue strong
XXXX. the portfolio range in the But range portfolio the expect of in PayPal the continue the We prefunding dilutive the will Credit effect margin run addition rate before would the to PayPal year. drive XX% in of second-half to XX.XX% growth to believe liquid the the have portfolio next XX% a is assets We the for may our magnitude and on the XX%, timing the portfolio margin, and onboarded. of full-year until XX.XX% the XX% to the push XXXX. believe to margin depending into We funding of as on is margin the down in short-term range the push closer may this prefunding held impact the
average our We of XXXX. expenses loyalty in program will somewhat the to expect receivables a for trend is program performance than into that higher and will range. programs, back RSAs second-half The X.X% for expectations. the strong continued expected higher impact and the PayPal build the as of X.X% the This of XXXX not expansion range reserve percent X.X% of moderating XXXX reflects
of slightly terms net by for will X.X% be we normalization lower in growth. credit, In X.X% range, the charge-offs receivables to XXXX and driven continued expect
we a of NCO similar expect range timing will portfolio for size the to second-half, given rates addition full-year. in impact in the the PayPal the end its While the
We and the to charge-offs. higher quarter, Looking rate the quarter first the net receivables. see due seasonal trend NCO typically at in compared to fourth seasonality the in decline
basis has over are the range point in more years, the seen two as XX what moderates increase historically. a closer the we to increase While and past modest have XX we to normalization been expecting
trends normalization year. we builds of second-half portfolio Regarding in PayPal The going continue reserves given the builds the will forward, addition growth-driven, expectation loan more be of that will add the our expect moderate. reserve to to will transition this loss the builds credit to reserve
reserve methodology by reserve will and need of the our portfolio for portion under a be to reserving will establish we XXXX. anticipate year-end the substantial We established a
the reserve the build XXXX. in of of our will we driver EPS this is acquire portfolio, the of of year the size we expect This the substantially overall solution add in the the main the portfolio. second-half back-half to after Given
quarter, to reserve the moderating by we fourth normalization expect million similar credit prior down and first run $XXX from the driven be the the $XXX quarter in trends. For the million build to rate, range to
Moving the efficiency to ratio.
with For approximately similar efficiency PayPal XXXX. the we business change continue of to ratio the XX% an would to impact XXXX, expect the This to portfolio. adding operate not with of
to expect operating feel in are to We continue whoever strategic continued drive business, we will offset be leverage core investments by on the spend partly this important to the business.
ratio the business continues continue favorably to to we efficiency forward, going feel expect Our compare we this to the leverage manage industry to operating well-positioned and positive as to over the long-term. generate
including on PayPal expect we assets transaction. a X.X% corporate the estimated taxes the from to impact generate XXXX, the Finally, in and of around dilution lower of return
rates effective in range tax Act, corporate rate lower taxes. XX% federal tax the includes going Tax and expect in our both the passed will the Given be state This we forward. to XX%
XXXX. to wanted for our around I Before thinking conclude, I capital reiterate
are We a to very follow planning as process similar before.
assumptions Fed in capital in April, timeline the on did a scenarios in hope February will Board with plan year. review our capital be to regulators due plans our as use position to and out will and We our a announce we a similar and that last develop and
acquisitions. continue that, With back we buybacks, expect cannot turn I and dividends it addition would to I’ll in this capital our Margaret. both share at deploying be to point, and to While program through to specific over plans supporting our as growth capital
