good morning, Well, thank Steve, and you, everyone.
of quarter, did I’m business in of unprecedented drivers to a any today’s through you I obviously unlike faced this order understand these will credit Just any our trends, performing performance like financial different our two going we of is used areas. Since very slides the historically. most is have last to set from what you environment, us in historically environment how talk in have which time environment in and I are my volume help biggest of spend
on Let’s our X. financials summary get right into Slide
this resulting significantly and the see, can quarter impacted the our results global by were you containment measures. pandemic As
declines of FX-adjusted revenues $XXX in a quarter and down lend other of as on travel-related million XX% quarter. billion an and in driven $X.X result by Second Net were revenues basis income COVID-XX. was the spend,
overall due current primarily is certain XX.X%. an assets our related $X.XX a from share deferred environment. that Earnings notice this effective per pretax discrete impacted combination will rate were items second year lower You of This income XX% by quarter, and the unusual the was to quarter tax sizable foreign to tax in down the of some ago.
the details our I environment. isn’t that the helpful that last of will call, the quarterly Turning as to earnings note was given performance. case our evolving rapidly just data on
we’ll continue on show with monthly So certain and our business more billed metrics, trends. a granularity bit to you performance and recent other
around with Slides of several X to steady XX. the our of U.S. in the all views billed when in were then, shut you the shows April, seen improvement worldwide largest see business down on year-over-year trends. business, which we’ve due most month begin effectively markets and essentially international spending COVID Slide you XX% most Let’s through different X. declines that of significant, down X, billed were Since
billed are significant T&E given played in volumes that spending historically While certain spend has of our showing down remain business. our growth, role year-over-year components overall business now the
particularly performance the that our two of and XX% has card that commercial customers from remains see you you or of spend billings this between you global our majority look far you is historically. from from much our the when actually commercial T&E on different corporate I very corporate enterprises, through our predominantly here customer the large from spending would billings period fact, BXB at SME is non-T&E In up X% T&E also billed our the types. On the better Slide while and part our so July, and business, small in you shows tale in midsized July. while X, than clients represents SME customers spending from spend remind our spending business. are customers, the difference majority first and The where This SME card spending of up held of our X about spending Slide have clients. the that large see global down T&E non-T&E
a see also international in declines spend T&E different you thus our overall X. showing as the volume at of mix see T&E larger on impact of higher You Slide have you which mixes of look and when spend are regions,
as is latest see spending of Slide how similar XX% More have a trends on X much which an U.S. the spend increasing in you remarkable in that is would card-not-present you the X, take current to the on the online impacts largest modest, for be non-T&E I fairly the Now their one is expect, July. four categories, This shifts us, in of shows say, far for going Slide look seen see though, business. pattern. in our moving can it consumer side as the of states you example evident remains we from states of we shift the markets you various for card-not-present that most through right-hand shift opening economies. you about and the actually online some the in of most world in environment. finally, consumer these and to all signs thus And as generally, up might where recent would and trends And see tend impact
a just where at pace. uncertainty go are clearly where We there’s that pattern about next at point and still will what
to Turning and XX. loans receivables Slide next on
it primarily and I XX% later. balance as of driven lower our that extremely declined capital is aspect declined quarter, will our XX% and in second times year-over-year strong dynamic economic model liquidity the Card of an spending the Member in charge weaker total fuels This volumes. metrics shrinking important receivables business see You discuss loans our sheet by
I’d the improvement in assume expect modest to quarter, balances sequential our into some the stable. continued in third if Looking fairly be levels, trend you spending forward
reflect XX, It through receivable that Moving write-off our loan on write-offs, the things second our dollars actually impacts noting not and yet clearly These incremental do to just worth Slide traditional excluding for stress has delinquency time metrics. quarter to flow and enough environment in the passed of are since credit GCP. grew year-over-year. the current is down X% not
primarily do the but yet lower these significant receivable write-off in to opposed delinquency balances Slide credit our any reflects $XXX to of see as there and current in change loan is stressed You million significantly of an this being due year-over-year, rates increase environment and the on contrast, build future likely reserve quarter. took XX we In write-offs impact provision metrics. the credit expense an second on in the as additional traditional
the macroeconomic volatile credit particularly reserve under CECL, know, you As a in in determining key are a factor environment. forecasts build
to the will second for CECL then XX, used turning So Slide and see were assumptions our models quarters. macroeconomic first you the reserving in that
macro quarter, environment. you last a had like just worsening quarter, This
However, the mainly credit higher you reserve the of on the respectively. the roughly result is of balances as we declines, of the balance can first we there Today, billion the loan on second we benefit offsetting we charge our The of and of the credit due and a $X.X the level sheet ended the quarter. XX. million billion as see of Member at CECL $X.X as on We volume build at credit after of $X.X this Slide our with end added lending beginning balance well increase of quarter, represent was billion than outlook had an from from X% X% $XXX as reserve COVID-XX QX. combination Card took our our to the quarter second reserves, reserves sheet in balances, economic implemented reserves receivable worsening quarter a
have are of we this then nature reserves learned do situations. management short-term for also our customer need CPR visibility impact last the longer-term helped us levels risk our customers’ about about and assistance current program, we over environment? way we out the customers last the over we balances of our we which products good deferrals, real-time It programs. government out the we of card pandemic which of unprecedented factors level in also our forbearance relief the in portfolio us The rolled made they our reserves one-month today’s When believe years the in others, including of starting position. what practices, course, practices, risk offering availability at risk have enhanced we through gave and very feel exit payment resulting the we looking our program. stimulus environment charge seen are or as that hit, into managing external all us management as programs actually CPR, status by broad new we such level situations, few quickly starts solid visibility of holding. Internally, gives the the are way And our and a or with we and extended better feel in changes one into months, of program. what rolled relief delinquent do are temporary that customer is a one few CPR how So gave happening financial the pandemic is of our track Based in on through the like primarily programs,
quarter, you in than we peak to QX, XX, $X.X see $X billion was of the longer-term can side small was of have in become of program in total reported up end the end the relief earnings these programs pandemic bucket. customer higher the then, enrolling relatively either are the the As have mid-April. around one and BAU a the program. of Slide in in CPR the this enrolled $XX.X at we metric in Around level as the last balance majority new remains or stopped program the only we enrolled at and remainder our balances CPR, in of we pre-COVID. Today, last the year relief Since financial bar customers delinquent balances of the had exiting on a time, current of peak right-hand billion the billion customers saw
the of mid-April to the them in the to the of seen enrolled plans. are Members shareholders. and payment credit our our quarter outcome of of Historically, the that effectiveness find in that help balances increase work hard better successfully when programs they good card right of rolled relief [ph] not, alongside enroll get these balances members our reflects the program’s in them completing enhancements financial will at customers CPR that XX. the a and the The around retain you with the past program to with Card outcomes we’ve And You in do we that than balance longer-term far. QX and membership end details program balance appendix relief based sheet books those Slide out that with April in and the on on at payment financial our happened coupled for so our their both we continue financial for as the over identify behavior, we on we delinquent believe have Card historical appropriate Member what’s so today, our FRP look experience are on our can our balances XX% reserves
our will where unprecedented given we’ve the time the ultimate only but about feel completely exposure. management done level manage risk will Now, of and to good so environment, work our far the be tell nature capabilities global write-offs we the of
XX. to revenues on XX% FX-adjusted basis on in Revenues second declined the quarter. an on Moving Slide
expect, throughout and trough the showed quarter. in given business month April the of declines steady would revenue hit you a the improvement for nature of model, QX spend-centric our As
of the strong revenue despite impact XX% Looking current in Card lines Member in revenue the at XX, growth engagement the you discussed Slide the due the details declines see on of in Steve of performance card all our to the that fees continued environment. net
due COVID such COVID revenues travel. since with quarter slowed to and down a deceleration a don’t second expect FX travel-related other due part solid These fees to significantly fees and fees, XX% the streams modest on share the much revenue commissions and year-over-year as second to have of revenue impact down to almost total in business. this acquisition. our and income JV typically travel business on quarter-to-quarter commissions from year-over-year proactive our and our revenue We consumer the are Other to continue environment, due continued declines be streams conversion quarter change card new BAU we were growth in some travel modest but
move income the to Turning you details to XX. would of Slide ahead yield, and I net interest
the quarter, decline you to year-over-year price Card basis loans faster by driven to a transactor points XX revolving risk. relative the as loans that effectively interest primarily left-hand loans in on On as Member efforts mix our in for due net to yield side, see our increased second well ongoing benefits
Moving loan less right, X% the income which an declines FX-adjusted the the to the I net declined than interest saw on in we basis, to spoke yield was about. second benefits just quarter due
quarter, Our revenue, component discount see revenue, second of you declined Slide on XX% largest the in as can XX.
The a in in XX non-T&E the basis second average As the contraction quarter. spend relative the and we in prior trends declines in in business drove to the much in rate spend discount divergence expected, to billed point T&E the in due revenue the decline non-T&E year. discount quarter billing larger lower higher the larger rate versus than second T&E discount discount was saw decline rate
expect we similar in suppressed, Looking level of quarter. the forward, remains if T&E spending erosion would rate third a discount
on Moving expenses XX. on to Slide
our in second forward. between the more travel-related of I spend which going customer a lower The and to are bit naturally customer Variable and expenses quarter, which and by are expect roughly were engagement year-over-year marketing revenue lower by decline to see management in benefits spend expenses, usage offset continuing XX% year-over-year engagement decline and break out variable provided a to usage changes, would variable engagement driven customer the driven We come as than down declines OpEx, XX% expenses down benefits. decisions. expenses
OpEx. Moving on to and marketing
in enterprise the but to a we QX existing mentioned in portion customer year our aggressively those made reinvest in of to decision reduce of we As the balance the across call, our earnings for March savings also back costs the base.
said the expenses As value for we This marketing result, in universe on marketing conditions have to and which we card levels, investment long is flexibility XX% acquisition pulled are efforts around dramatically reduction OpEx quickly were be enhancements, in proposition as year-over-year and new across the change. QX. our cumulatively track the we what we’ve in reinvested market a example well of as opportunities in can outcome quarter. of back the reduced through decline $X good redeployed of X% resulting expenses a a year-over-year second Operating proactive marketing about QX and target quarter, attractive our billion down our achieve if in second
XX. capital last on Slide liquidity Moving to and
Our capital remain second strong in the further strengthened tremendously and positions liquidity quarter. even and
also billion of saw the the We on countercyclical even balance $XX.X cash our adjusted grew we deposit growth the a to XX.X%, healthy the second and to see ratio as during given of and pricing Slide environment, our Due balance the Appendix. can XX% rate to XX, as in current our you sheet, second quarter CETX record increased nature investment quarter.
position, and of pay third the in We continue quarter. And with our stress. to dividend continue capacity the to intend our to uncertainty periods have capital have in strong significant we flexibility maintain sheet a balance or solid to
morning, quarter future support summary, our flexibility how our unprecedented In in managing approval We long provides stress. clear as beyond, are it. how out, so about This how no financial times can strong uncertainty it intend we And one long maintain current our impacting term. for will financially. to we or feel us the the been conditions periods continue the company know we have to the are the position have but good to play of and about pay Board to subject third pay we the balance capacity, a and will sheet dividend significant capital in and strong
have challenges that, American Express we’re as I’ll are to Vivian. we turn on of we position the strength, confident liquidity capital forward, to With the Looking recede. grow focused the that inevitably engagement back over our right tremendous continued brand, things and and customers our call with the to current
