Greg Feller: So as you know, we have been operating in the credit environment in Canada for now 20 years and we have gone through all cycles, including global financial crisis and managed to keep that business profitable throughout those cycles. Our customer base, in the sub-prime space, as we say, is more used to operating in an environment, I would say, a more pressured environment that quite frankly, is now covering more of the economy. But the reality is our customer base operates in that kind of area most of the time. And because of that, we generally don’t see as meaningful of an increase in delinquencies in periods of stress that, quite frankly, the prime lender see. So that’s point number one. And in fact, actually on our major credit metrics that we follow and track, whether it’s charge off rate, whether it’s total delinquencies, we have seen continued improvement over the last couple of quarters and over the last several quarters, including since 2022.
So we feel really good about where we are in terms of managing the risk of that book. We’ve been pretty conservative on it and we also think we have a customer base that manages well through these cycles. One other data point I would just give you is that the big concern increasingly is just refinancing on mortgages and the impact that has on consumers that their mortgage payment increases significantly. But the reality is — for us is a less than 25% of our customer base actually have mortgages majority of them actually rent. And so in a lot of ways they’re — a lot of them are insulated from what we kind of see as the biggest impact for a lot of consumers out there. So that would just be another data point.
Scott Buck: And just if I could squeeze one quick one in. I’m curious where you guys are on your current repurchase authorization, and should we expect to see you guys continue to buyback shares at these levels?
Greg Feller: Yes, we have significant capacity in our share buyback authorization, both on NASDAQ and the TSX. I think, what you have seen is that over the past several quarters, we have been a buyer of our stock in almost every quarter in the last four quarters. So obviously, we continue to believe that there’s significant value there and the markets aren’t reflecting that value appropriately. So we think that’s an opportunity and a good use of our excess capital on our balance sheet. So yes, I think it’s fair to say that that trend will probably continue at these levels.
Operator: [Operator Instructions] Next question comes from Adhir Kadve from Eight Capital.
Adhir Kadve: I just wanted to talk about maybe the three pillars of growth that you guys have been talking about, and that return to growth into next year. Where do you really see or what do you really see driving that in terms of the three, the cards — the payments business, the wealth business and the lending business, where do you really see that the growth coming from?
Greg Feller: I mean, really, it’s going to be a combination of all three of those. I think over the long run, we believe that you’re going to see wealth and payments growing at a faster rate than the credit side of the business. But we think the credit side of the business will be a contributor to growth and not a drag on growth, which quite frankly has been on in the past, but clearly the big upside that we see is going to be from the wealth and the payment side. And so I think ultimately that’s where you’re going to see it more heavily weighted, but we believe that there’s a great opportunity in all three of these segments. And so that’s why we’re feeling pretty confident about our ability to drive accelerating growth as we go into 2024 and beyond.
