Your question is Diagnose Card Portfolio Profit Decline. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
You are reviewing a credit card portfolio that added 18% more new accounts this quarter, but portfolio profitability fell from $142M to $121M over the same period. Recent growth came from heavier marketing, richer rewards offers, and expansion into lower FICO customer segments. Spend volume is up, but finance leaders are concerned that the new growth may be less profitable than prior vintages.
A credit card portfolio is experiencing a drop in profitability despite an increase in new user acquisitions. What metrics would you look at to diagnose the issue?