So my — I’ll say my key summary here is that our capital priorities haven’t changed. We’re focused on generating positive earnings to be able to invest in the business and return excess capital to shareholders. Our margin rates remain robust. Our return on equity this quarter and for the year remains really, really strong. So, it’s a matter of just making sure we’ve got the right balance between investing and return of capital.
Mihir Bhatia: Okay. Thank you.
Operator: Thank you. Our next question will come from Bob Napoli with William Blair. Your line is open.
Bob Napoli: Thank you. Follow-up on return on equity. One of the questions we get, I mean, obviously, Discover has reported very strong ROE for a very long time, with the changes in regulations and potential capital changes. What are your thoughts on Discover being able to generate the types of return on equity that we’ve seen over the last 15 years or so?
John Greene: Yeah. Certainly, relative to kind of history and then going forward, a couple of important points. So, we have operated with capital well above our operating target for the better part of, I don’t know, at least as long as I’ve been here, four years now. And we are approaching the 10.5% target. I will say that our overall capital position does remain very, very strong, right? So, regulatory minimum is 4.5%, the SCB, 2.5%. So, the required capital, 7%, and we’re at 11.6% here on CET1 for the quarter. So, my expectation is we’re going to manage the business to continue to generate high returns and deliver a high level of return on equity overall and be able to invest in the business and return excess capital to shareholders.
So, as we go out three to five years, it’s a bit challenging to predict a regulatory regime and the expectations for institutions such as ours in terms of overall capital levels. But we’re well positioned to generate positive capital and return capital.
Bob Napoli: Thank you. I appreciate that. And then, just on — the overall — the long-term growth of your business, your core customer, the TAM of your business and the ability for Discover to grow, I mean, I think historically, high-single digit kind of loan growth and spending growth. What are your thoughts? Is the ability to grow at those types of rates what we should continue to expect? And how does the Cashback Debit product maybe affect that growth?
John Greene: Yeah. I mean, certainly, our expectation is to continue to grow, at least in line with kind of the historical norms. The Cashback Debit product, we actually think has a lot of power behind it. So, the features of the product itself are super, right? So, 1% cash back on debit transactions. We have a positive kind of business impact from our ability to capture interchange on those transactions, so that’s positive. And then, it’s a whole new customer outlet for us. So, executed well, it’ll bring in a new cohort of customers that we can then underwrite and cross-sell to and further help the customer experience in terms of meeting additional banking needs and turn that checking product into a credit card relationship or perhaps a personal loan down the road. So, we’re super excited about it.
Bob Napoli: Thank you.
Operator: Thank you. Our next question will come from Kevin Barker with Piper Sandler. Your line is open.
Kevin Barker: I just wanted to follow up on some of the spending on tech in particular in the info processing line. Could you provide a little more detail on some of the projects that you have in place? And whether you expect those to be ongoing or are there additional projects that you anticipate, particularly around tech investment and other investments that you’re making within the franchise? Thank you.
