“We expect delinquencies to worsen through Q2 peak in this quarter and improve throughout the remainder of the year based upon the origination strategy.”

In context

“be the impact of provisions for credit losses for the rest of fiscal year '23 maybe as a result of managing the book any different. Thanks. Gabrielle Rabinovitch: Yes, you bet. Thanks, Bryan. So you'll see in the Q, which will be filed tomorrow, we did increase the provisions on the PBPL portfolio, which is the PayPal business loans portfolio. Overall, that portfolio is about 17% of our overall receivables, so sort of a sliver of our overall book. We did widen our credit box in the middle of last year. We have seen some performance that was less strong than we would have liked that is working its way through our system. And so we increased the provisions. We've already started to see an improvement overall in a box. I mean that's something that we'll just work its way through our systems. We expect delinquencies to worsen through Q2 peak in this quarter and improve throughout the remainder of the year based upon the origination strategy. But really, that piece of the book is a very small component of the overall portfolio. And I'd say more importantly, the area that we're really growing where we're really growing where the originations are quite strong continues to be the Buy Now, Pay Later portfolio. And there, we've seen very broad-based strength. And so that's a really important part of our strategy. It supports the improved checkout performance in our business on the branded side, and we're excited about the continued growth of that business overall. We did mention in the prepared remarks that our expectation is to externalize part of that portfolio during this year and work with a partner to really provide sort of longer-term sustained support for growth in that portfolio. As I say, overall, we continue to be very pl”