Q : What are the expectations for the buyback program beyond the first quarter? A : Mark Mason, CFO, stated that the $20 billion buyback program reflects confidence in earnings momentum and the importance of buybacks given the current trading below book value. The target CET1 ratio is 13.1%, and as regulatory clarity improves, they will manage down to this target and potentially increase buybacks.

Q : How does the 10% to 11% RoTCE target for 2026 align with capital requirements? A : Mark Mason, CFO, confirmed that the 10% to 11% RoTCE target assumes a 13.1% CET1 ratio. The target will be adjusted as regulatory rules evolve, but the current assumption is based on this capital ratio.

Q : Can you clarify the expectations for card net charge-offs and provision builds for 2025? A : Mark Mason, CFO, indicated that net credit losses are expected to be at the high end of the given ranges for branded cards and retail services. Provision builds will be influenced by volume growth in USPB and macroeconomic factors affecting CECL calculations.

Q : What are the specific milestones needed to increase the pace of the buyback program? A : Mark Mason, CFO, emphasized that the target CET1 ratio is 13.1%, and they will manage down to this target. The consent order is not impacting capital actions, but the stress test results will be a factor in determining the buyback pace. There are no artificial constraints, and the focus is on sustainable franchise growth and regulatory requirements.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

This article first appeared on GuruFocus .