Other revenues increased, primarily reflecting higher fee income. The provision for losses on the charge card and lending portfolios rose from the prior year, primarily as a result of higher volume. Charge Card interest expense grew as a result of higher volumes and an increased cost of funds. Other operating expenses increased, reflecting in part the cost of Cardmember loyalty programs, business growth and investment spending. The attached financials present TRS results on both a managed and reported basis.
Net income is the same in both formats.
These gains were offset by higher expenses related to card acquisition activities and therefore had no material impact on net income or total expenses. Net revenues and earnings growth benefited from higher fee revenues due to increases in average managed assets and product sales, which were partially offset by narrower spreads on the investment portfolio. The narrower spreads reflected losses on high-yield securities, as well as the impact of higher interest rates. AEFA reported increases in sales of mutual funds, annuities, and life and other insurance products. Human resources expenses rose primarily as a result of an increase in financial advisors' compensation, which reflected growth in sales and asset levels, the new advisor platforms, and an increase in the total number of financial advisors.