“So in the first quarter, Discover Card outstandings were down 1.2% year-over-year and the brown out will increase a bit until we get to the other side of the tech integration with Discover.”

In context

“ll interpreted it as anything alarming. But with respect to the math of that, let's just talk a little bit about this brown out. So following Discover's credit expansion in their card business in 2022 and 2023, they dialed back their origination programs and credit line management by a fair amount toward the end of 2023 and they basically largely sustained those dial backs. Since we took over, we've been trimming on the margins of Discover's credit policies in areas where we're a little less comfortable with the resiliency of the underlying customers. And it's basically in the high-balance revolver parts of the business. So as a result of these pullbacks, the portfolio contracted a bit in 2025, and it continues to face some headwinds to growth as these more recent smaller vintages mature. So in the first quarter, Discover Card outstandings were down 1.2% year-over-year and the brown out will increase a bit until we get to the other side of the tech integration with Discover. And it's Importantly, worth noting that the flip side of these pullbacks and the brown out has been strong credit performance, and we're very glad to see that playing through the system. And I sometimes use the phrase, we have to live with all the great credit performance from these choices that we think Discover made good choices and we certainly are happy with ours. As I've said on the other side of our integration, we believe there are good opportunities to grow the Discover business and you think about what do we mean by the Discover business? Because, of course, it's part of Capital One, but there will be -- we're going to be out there marketing Discover and marketing their flagship product and all of these things. And some of the great programs that they had. So we're going to have”