“Now that we have lapped impact from the URR model change -- from the URR model changed last year, we expect rewards to grow more in line with the historical trend for the remainder of this year.”

In context

“%, reflecting strong demand for our premium products and our success in pricing for the increased value we provide customers as we refresh our products. Turning to Slide 13. Net interest income increased 11% on an FX adjusted basis, growing slightly faster than loans and receivables, as we saw increases in net yield versus last year. Turning now to expense performance on Slide 15. The VCE to revenue ratio came in at 43% this quarter. Rewards expense grew 16% year-over-year. As a reminder, this quarter, we are growing over the benefit we saw in Q1 of last year from changes to our URR model. In addition, as we mentioned last quarter, some small changes we made to the program that are good for both customers and our overall economics are driving a small increase in the URR in the short term. Now that we have lapped impact from the URR model change -- from the URR model changed last year, we expect rewards to grow more in line with the historical trend for the remainder of this year. As you can see, marketing and OpEx continue to be key sources of expense leverage for our business. And our flexible model is an important advantage that allows us to dial up or down expenses as needed through different economic environments. Let me move to capital on Slide 16. Our CET1 ratio was 10.7% within our 10% to 11% target range. We returned $1.3 billion of capital to our shareholders, including $0.6 billion of dividends and $0.7 billion of share repurchases. And this quarter, we increased our dividend by 17%. Our differentiated spend and fee driven business model generates a strong ROE, which was 34% in the quarter, providing us with very strong capital flexibility. Before we turn to our 2025 guidance, let me talk about the trends we're seeing in recent weeks. As Steve discussed,”