“As we think about 2025, we expect NII growth to outpace the growth in total loans and receivables supported by growth in revolving balances.”

In context

“ccounts acquired on fee paying products. We expect card fee growth in 2025 to continue to grow in the mid-to-high teens but to moderate as we progress through the year. Turning to Slide 13, Q4 NII was up 13% on an FX adjusted basis. Growth was driven by increases in revolving loan balances and net yield versus the prior year. As expected, growth moderated this quarter as it has over the course of the year. An important long-term driver of yield is our ability to improve our funding mix as a result of our growing deposits program. Our high yield savings account balances grew 17% in 2024. As with our premium cards, we see that our HYSA product is resonating with younger customers. Millennial and Gen-Z customers make up over half of the accounts and about a third of the total balances today. As we think about 2025, we expect NII growth to outpace the growth in total loans and receivables supported by growth in revolving balances. And while there is uncertainty in the rate outlook, as a reminder, we are mildly liability sensitive with a relatively small impact from changes to the fed funds rate. I'll turn next to expenses on Slide 15. In Q4, the VCE to revenue ratio was 43%. Rewards expense in particular grew 15% in the fourth quarter largely driven by the slow growth in rewards expense in the prior year. In addition, as we mentioned last quarter, we made some small changes to the program that are good for both customers and the overall economics of the program, but drive a very small increase in the URR in the short-term. Stepping back, we expect overall VCE expenses to grow slightly faster than revenues in 2025 as we continue to invest in our products and drive Card Member engagement and as our portfolio continue”