20 unchanged sentences
The Company's IRR analysis is designed to compare income and economic valuation simulations in market scenarios designed to alter the direction, magnitude and speed of interest rate changes, as well as the slope of the yield curve.
−Removed: This analysis may not represent all impacts driven by changes in the interest rate environment, such as certain other card fee income and expense line items tied to card processing expense derived from contractual agreements with certain BaaS partners and servicing fees the Company recognizes from custodial off-balance sheet deposits.
+Added: This analysis may not represent all impacts driven by changes in the interest rate environment, such as certain other card fee income and expense line items tied to card processing expense derived from contractual agreements with certain BaaS partners and servicing fees the Company recognizes from off-balance sheet custodial deposits.
The Company does not currently engage in trading activities to control interest rate risk although it may do so in the future, if deemed necessary, to help manage interest rate risk.
12 unchanged sentences
It models immediate basis point parallel shifts in market interest rates over the next one-year period.
−Removed: The following table shows the results of the scenarios as of March 31, 2024:
+Added: The following table shows the results of the scenarios as of June 30, 2024:
Net Sensitive Earnings at Risk
7 unchanged sentences
Percentage change from base -12.8 % -6.4 % — % 6.0 % 11.9 % 17.8 % 23.7 %
−Removed: The EAR analysis reported at March 31, 2024 , shows that total interest-sensitive income will change more rapidly than total interest-sensitive expense over the next year.
+Added: The EAR analysis reported at June 30, 2024 , shows that total interest-sensitive income will change more rapidly than total interest-sensitive expense over the next year.
IRR is a snapshot in time.
5 unchanged sentences
It models immediate basis point parallel shifts in market interest rates.
−Removed: The following table shows the results of the scenarios as March 31, 2024:
+Added: The following table shows the results of the scenarios as June 30, 2024:
Economic Value Sensitivity
3 unchanged sentences
Percentage change from base -8.2 % -3.5 % 2.5 % 4.4 % 6.0 % 8.0 %
−Removed: The EVE at risk reported at March 31, 2024 shows that the economic value of equity position is expected to benefit from rising interest rates due to the large amount of noninterest-bearing funding.
+Added: The EVE at risk reported at June 30, 2024 shows that the economic value of equity position is expected to benefit from rising interest rates due to the large amount of noninterest-bearing funding.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.