Investor Presentaiton
Hedging impacts and credit reserve builds and releases
(in millions, except %)
Hedging Impacts (1)
Favorable (unfavorable) impact to net revenues (exclusive of
hedging impact)
Hedging impact
Favorable (unfavorable) impact to net revenues
Favorable (unfavorable) impact to operating expense
Net favorable (unfavorable) impact to operating income
Q4-21
Q1-22
Q2-22
Q3-22
Q4-22
Q1-23
(48) $
(123) $
(242) $
(307) $
(277) $
(139)
2
47
107
156
152
76
(46)
(76)
(135)
(151)
(125)
(63)
22
57
131
162
142
78
$
(24) $
(19) $
(4) $
11 $
17 $
15
Credit net charge-offs, reserve builds (releases) and credit
losses
Net charge-offs (2)
$
53 $
52 $
60 $
69 $
86 $
110
Reserve build (release)(3)
Credit Losses
$
(9)
44 $
(5)
8
44
88
32
47 $
68 $
113 $
174 $
142
(1) Foreign currency movements relative to the US dollar. We calculate the year-over-year impact of foreign currency movements on our business using prior period foreign currency exchange rates applied to
current period transactional currency amounts.
(2) Net charge-offs includes the principal charge-offs partially offset by recoveries for consumer and merchant receivables.
(3) Reserve build (release) represents change in allowance for principal receivables excluding foreign currency remeasurement.
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Q1-23 Investor Update
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