“And looking at the rest of the year, we remain on track to meet our full-year expense target.”

In context

“y, and we will continue to make the investments needed specifically as it relates to data and regulatory reporting. Having said that, the drivers of our expense reduction going forward remain consistent with those that we have referenced in the past. Savings related to stranded cost reduction, productivity from our prior investments, and our organizational simplification, all of which allow us to self-fund our investments in transformation. As we look at this quarter, expenses declined by 5%, which included a favorable FX impact. The decline was driven by a smaller FDIC special assessment, absence of a restructuring charge, and lower compensation, partially offset by increases in technology, communications, professional fees related to transformation, as well as advertising and marketing. And looking at the rest of the year, we remain on track to meet our full-year expense target. On slide eight, we show key consumer and corporate credit metrics. As I mentioned, the firm's cost of credit was $2.7 billion, primarily consisting of net credit losses in cards as well as a firm-wide net ACL build. The ACL build reflects uncertainty and deterioration in the macroeconomic outlook, including a further skew to the downside scenario in our CECL framework. Our reserves now incorporate an eight-quarter weighted average unemployment rate of 5.1%, which includes a downside scenario average unemployment rate of 6.7%. Largely offsetting this build was a release related to lower balances in our card portfolio. At the end of the quarter, we had $22.8 billion in total reserves with a reserve to funded loans ratio of 2.7%. Now turning to consumer credit on the left-hand side of the pa”