Christophe Le Caillec: And to build that a little bit on the rewards side, we are constantly trying to innovate on the MR side. On the number of partners engaged in the program, the ease of redemption as well one of their later innovation that is actually very successful in terms of how many card members are using it is the ability just to select the transaction on your statement, your digital statement and actually using more points to pay for that specific transactions. And we’re seeing a lot of card members using that. So we’re constantly trying to make it easier and better for our card members to redeem to make the product the MR program competitive and more and more economic as well for us. So it’s definitely a pace of innovation that is a very dynamic place.
Operator: Thank you. Our next question comes from the line of Don Fandetti with Wells Fargo. Please proceed with your question.
Donald Fandetti: Yes. Christophe, your international billed business growth continues to be very strong. Do you build that into your guidance at this level for ’24 revenue growth? And can you give us an update on how your acceptance initiatives are going?
Christophe Le Caillec: Yes. So we are — we — ICS and International was the fastest-growing segment of American Express pre-COVID and has been for several quarters now as well. The opportunity is just much bigger for us in international. We have either — we’re also investing everything else being equal, proportionately a bit more in international, their brand out in international, it’s probably a bit more premium as well than it is in the US. So there’s definitely a massive opportunity for us, and we’re going after it. and that’s baked in our guidance for this year. It’s also factored in as we think about our long-term aspiration. Part of — part of the things that we’re going to do to deliver on that guidance for this year and that long-term aspiration is actually to grow at a faster pace in international. It’s a great opportunity for us for sure.
Stephen Squeri: So we’re going to talk more about international at Investor Day. We’ll have a separate segment on that. But we’re also going to talk about how we continue to grow international coverage. And if you remember, a number of years ago, we talked about our international city strategy. We talked about industries we’re going after. And so we’ll provide some updates on that. But the top line is international acceptance continues to grow and continues to improve. And when you look at the international business growing at the rate it’s growing and coverage continuing to grow, we see that as a long runway for future growth.
Operator: Thank you. Our next question comes from the line of Gus Gala with Monness,Crespi and Hardt. Please proceed with your question.
Gus Gala: Hi, guys. Good morning. Thank you for taking my question. I wanted to dig in and ask, can we talk about the opportunities to lower cost of funding? And similar line of thought here. Can you talk a little bit about the pay overtime feature? Thanks.
Christophe Le Caillec: Yes. So the pay over time, you mean like how it’s performing, how it’s growing pay over time?
Gus Gala: Yes. Let’s talk about the performance and the unit economics if we can.
Christophe Le Caillec: Yes. So pay over time is a facility that is available on our charge product. It’s a service that a lot of card members are taking advantage of. It’s the opportunity for them to revolve some of their transactions or part of their balance, their performance is very strong. It’s actually the segment of our balances that is the fastest growing. And from — I would say from a performance standpoint, because that product, but that service is attached to our charge card products, so typically premium card members the credit performance is also the best that we have in our lending products. So it’s a very efficient way for us to grow balances by extending credit to premium card members. And the first question, I forgot was funding?
And so the funding mix is still — it’s still evolving towards more deposits — and as you know, deposits is, for us, they’re the most effective and the most economical source of fund. And it’s a very stable source of fund as well for us. I think we are — we are at about 92% of our deposit. Direct deposit balances are below the FDIC cap. So it’s a stable, resilient growing source of funding for us, and it’s generating a lot of good things for us, including supporting our growth and growth plan and growth aspiration. And when you look at the yield that I had on the lending slide, one of the drivers behind the yield expansion year-over-year is actually a more effective cost of fund. And it’s not a one-off, right, that has been a trend for several years now, and there is more to come.
Operator: Thank you. Our next question comes from the line of Moshe Orenbuch with TD Cowen. Please proceed with your question.
Moshe Orenbuch: Great. Thanks so much. If you look at your commercial spending, particularly SME growth, it’s been particularly weak the last couple of quarters, and you’re noticing on Slide 5, the goods and services basically been flat to down for a couple of quarters. And you mentioned things that are unique to small business. But maybe could you expand that a little more and talk about what things we might see that would cause that to start to turn? And how long you can kind of maintain the kind of teens growth in loans while that is kind of flattish. Could you talk about those things? Thank you.
