Investor Presentaiton
Additional Commentary – Variance Analysis
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Card Member Rewards Expense: Increased 6 percent versus Q3'22, driven by increases in Membership Rewards, cobrand rewards and cash back rewards
expenses, all of which were primarily driven by higher billed business, partially offset by the impact of changes in expected redemption behavior associated with
certain products.
Business Development Expense: Increased 17 percent versus Q3'22, primarily due to increased partner payments driven by higher contractual rates and
network volumes.
Card Member Services Expense: Increased 26 percent versus Q3'22, primarily due to higher usage of travel-related benefits.
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Marketing Expense: Decreased 15 percent versus Q3'22, reflecting lower levels of spending on customer acquisitions and other growth initiatives.
Salaries and Employee Benefits: Increased 17 percent versus Q3'22, primarily driven by higher compensation costs.
Other Expenses: Increased 2 percent versus Q3'22, primarily driven by higher technology costs.
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