“But the overall range and timing of reserve adjustments will be heavily influenced by how the macroeconomic outlook evolves between now and the end of the year.”

In context

“through our CECL models got slightly worse relative to the outlook back in Q1, both partially offset by improved portfolio quality. This reserve build, combined with our low net write-offs, drove $410 million of provision expense for the second quarter. As you see on Slide 11, we ended the second quarter with $3.2 billion of reserves, representing 3.1% of our loan balances and 0.2% of our Card Member receivable balances, respectively. This remains well below the reserve levels we had pre-pandemic. Going forward, we continue to expect delinquency and loss rates to move up slowly over time, but to remain well below pre-pandemic levels this year. I do expect to end the year with a higher level of reserves on our balance sheet than where we ended this quarter, given our expected loan growth. But the overall range and timing of reserve adjustments will be heavily influenced by how the macroeconomic outlook evolves between now and the end of the year. Moving next to revenue on Slide 12. Total revenues were up 31% year-over-year in the second quarter or 33% on an FX adjusted basis, as we continue to see a stronger U.S. dollar relative to most of the major currencies in which we operate. Overall, these results were above our original expectations. Before I get into more details about our largest revenue drivers in the next few slides, I would note that service fees and other revenue was up sharply at 79% growth year-over-year, largely driven by the uptick in travel-related revenues that accelerated this quarter, with cross-border spend in particular surpassing pre-pandemic levels. Our largest revenue line, discount revenue, grew 32% year-over-year in Q2 on an FX-adjusted basis, as you can see on Slide 13, driven by both our sustained gro”