We lower 1Q24e EPS a slight 1c as NCOs come in higher, but leave 2024/25e EPS unchanged. Despite continuing to grind higher, card delinquencies are decelerating and m/m formation is narrowing the gap vs seasonality. DFS reported monthly credit card results for January '24. While losses came in modestly higher than expected, continued progress on stabilization of card delinquency rates was encouraging. Y/Y growth in card DQ rate declined a third consecutive month, from +53% y/y to +51% y/y, to 4.02% (and when focusing on basis point change, about stable at +135bps y/y vs +134bps in December). Importantly, a closer look shows underperformance in card DQs vs typical m/m seasonality is shrinking. In January, DQs rose +15bps m/m vs a 2015-19 average of +9bps, or just 6bps higher.