JPMorgan Chase & Co. (JPM) 14 Apr 232023 Q1 Earnings call transcript

Good morning, ladies and gentlemen. Welcome to the [JPMorgan Chase’s] First Quarter 2023 Earnings Call. This call is being recorded.

Your line will be muted for the duration of the call.

We will now go live to the presentation. by. stand Please

ahead. I to time, and to the please turn Financial At Chase’s would Chairman over go Barnum, Mr. JPMorgan Jeremy Dimon; and call Officer, this Barnum. like CEO, Chief Jamie

our Thanks, and good the please everyone. The in to disclaimer website, available the presentation refer back. and is morning, on

of of an page of million $XX.X revenue X. net investment ROTCE Starting included on XX%. net Firm on results income of in and delivered losses $X.XX reported The $XX.X of These billion, corporate. EPS securities billion $XXX

Before about letter reviewing the Jamie a let’s televised our results shareholder for of the and the has the quarter, talk important number his interview. failures. recent in recent themes bank addressed

go So, straight to I the will impacts specific on the Firm.

new and the meaningful activity significant As and account Business opening money fund in significantly you deposit would Commercial most Bank, AWM. inflows, Banking and we market expect, saw

deposit Regarding we the consequence deposit end-of-period March end. the approximately were while average level, quarter-on-quarter, We of an the reversal X% of billion at implying $XX up retained inflows inflows, down that quarter as estimate a at quarter-on-quarter, events. outflow trend intra-quarter were deposits deposits have the Firm-wide these X% recent of

is the NII our note outflows here. higher to deposit still modest will end, otherwise assumes which It’s important than deposit address from have sequential I current period-end would that outlook, while we year increase expected, full at the

quarter as not expect well driven retain We factors inflows. this the the last of quarter’s as be expectation these outflows we all to as same that will by

credit actual the remains share. with normalize, highlights. fee touching credit XX% the grew to few Consumer combined card Company. our performance remained but year-on-year. up wallet quarter to And back spending across Now spend continues solid strong We debit and a IB on

by volume. on lower billion billion higher driven NIR year-on-year. $X.X by million mentioned was the rates, partially $X.X was lower On XX% detail. offset was page and or income $XXX of revenue or NII year-on-year. well markets as we markets billion fees $X.X more down IB billion up lower deposit XX%, as up ex previously And securities driven or X% lease was XX% markets have $XX.X ex Revenue balances. some X, or down losses by auto lower

Expenses events. were year-on-year, $X.X X% net charge-offs of deterioration FDIC billion, impact annualization reflecting driven And million last of compensation-related course, included outlook. of billion the of of higher net growth weighted $X.X inflation. credit last $X.X up include $XXX average recent largely year’s reserve of build driven $XX.X I was billion or These is The assessment quarter, which, the economic card. by in to headcount mentioned billion our and by wage unrelated of results costs the predominantly costs, in

AOCI and repurchases quarter billion previously distributions with gains. resumed distributed And $X.X and what of basis back less a of a of and net in ratio Onto balance sheet on and XX.X%, We quarter points, page ended the primarily X. income was buybacks by up driven this said, we net CETX about shareholders. which total XX with stock capital to we line the benefit

activity we on throughout Now, businesses, Both data. the closely. on Touching quarter. to on with go observed solid, we of but resilience let’s not health continue expected, X. remains to CCB and show consumers pullback continue based our monitor small to normalization Spend starting and any page our notable have businesses path and the quickly U.S. remain to as on the their

by as you what in we we to to on billion, were encouraged continued quarter, by recent see revenue deposits income in higher was offerings. our higher-yielding up the expect, of year-on-year. Moving to rates. line customer were In up $X.X & flows which $XX.X of capturing Average with driven XX% Wealth results. on down CCB higher financial are Throughout Banking CDs billion products, revenue and reported X% but Wealth NII quarter-on-quarter, was XX% net Management Management, year-on-year, trends. would

strong Client revenue performance net down driven investment In assets as market were income lower Home inflows. down spreads production interest X% year-on-year, largely net was tighter but driven XX% quarter-on-quarter, year-on-year, up Lending, by and loan well as X% lower from revenue. by

were Services Revenue spend by Card Services to lower revolving Moving Credit card lease largely Card was & on up partially was higher year-on-year, XX% XX% year-on-year. by offset auto higher NII income. Card Auto. outstandings driven the up inflation were up reflecting growth billion, XX%, And revolve normalization. headcount. up and driven of X% billion new up were $X.X in Auto, higher year-on-year. wage and of $X.X account by originations impact XX% year-on-year, strong Expenses balances,

credit in continue card of with builds billion, about million charge-offs quarter, Home in costs $X.X $XXX million were were terms performance reserve and year-on-year, levels to credit $X.X of up this line Net reflecting delinquency expectations In million $XXX across Lending. in portfolios. as $XX billion, normalize

on billion were quarter compared Investment Next, $XX.X were X of X.X%. billion down on income a billion. down last year-on-year. share net number X. $X.X reported first advisory, wallet of revenue XX%. revenue the strong XX% IB to CIB fees In page first Banking with down of was ranked of X% $X.X We year. CIB quarter fees

XX% for continued be X% equity. and conditions businesses underwriting fees affected Our debt by to with market for down

dynamics remain outlook, terms the the of same. In the

outlook. conversion but sensitive pipeline the and to conditions economic Our relatively is is market robust,

year We remain rest of quarter to and expect the the the second challenging.

client to as of was Equity a billion, the was first down lower to Total Moving rally by currencies strong in revenue X% emerging in to year prior the revenues March. Markets XX% quarter the income Markets. flows Credit XX%, early was the the in strong driven revenue markets in elevated well up was and lower cash. a year-on-year. client Rates year. Payments first was prior as derivatives in and the relative strong $X.X very down during up quarter year-on-year. activity relative down volatility and billion, was quarter was through back in flat. Fixed higher $X.X on

it with the primarily net in prior equity the growth impact year, up higher XX%, by driven deposit lower by investments, partially Excluding offset of the rates, was a gain balances.

rates, Services balances up up and billion headcount compensation. of higher year-on-year offset Securities by lower inflation lower $X.X and X% as were driven partially Expenses by higher were market year-on-year, billion $X.X wage levels. by largely revenue-related of deposit revenue was offset X%

activity. higher driven on X% by page was front M&A deposit XX% largely higher hiring million deposits bond Commercial Investment and billion of deal X. well lower Banking from the and down expense, and continued billion. XX% Bank including And large income to year-on-year, Banking year-on-year driven compensation $X up of Expenses $X.X billion Payments volume-related underwriting billion up Moving predominantly revenue net driven investments up reported balances. by of higher on was higher increased revenue gross XX% year-on-year was of non-operating XX% Commercial office of driven $X.X by as up as and quarter-on-quarter, seasonally XX% attrition $X.X $XXX by Average rates. Revenue technology deposits well year-on-year were expense. were year-on-year as as margins.

have spending. and also XX% X% with different up leading concerns loan banking, loans to in size. up X% CapEx recession dynamics market utilization, rates were and were based C&I somewhat quarter-on-quarter sequentially. higher which and new Loans year-on-year is client demand decreased In weakness on middle

sequentially primarily to conditions Corporate led originations clients for Banking, market recent estate, with office nearly modestly multifamily, remind rates is our In and our CRE the urban real Client prepayments. are and XX% commercial debt. of as rates both loans exposure utilization headwinds loans for higher capital bank opt on given markets. in up And more dense the is increased and sector less you focus me were of creating quarter-on-quarter two-thirds let X% in also that portfolio than focused our markets, supply-constrained

Finally, $XXX million, million what predominantly net included credit mentioned by upfront. I $XXX costs a reserve of of build driven

lines X. on page Then AWM to of complete business, our

on Wealth valuation impact & up margin pretax lower predominantly the our fees. investment compensation, X% partially fees on $X.X impact lower higher was in levels our average growth joint by revenue-related of income billion, of teams, higher by by China, advisory XX% year-on-year, performance asset of acquisitions. of run compensation driven rate on full net driven Revenue of deposit private Management reported the Asset billion balances offset in banking Expenses up a were and and our venture management taking lower by initial reflecting ownership XX%. year-on-year management market of gain $X.X triggered $X.X billion of margins and

inflows up driven X% assets X%, trillion net And continued products. For then liquidity, And the and quarter, saw liquidity by deposit by were net we migration. while and long-term down trillion average down inflows finally, income overall were deposits $XX $XX inflows equities. and billion, lending, by into lower were billion, securities-based loans AUM $X led year-on-year was of our net quarter-on-quarter, long-term fixed were driven of X%. ongoing up client X% $X.X of of inclusive

driven included exposures. million in million $XXX loss net reported compared page up a million builds on million to securities was of year-on-year losses of costs reserve year a income $XXX of net higher of prior Revenue $X.X and was the compared earlier. billion, Corporate were due on to Turning $X.X of the $XXX with X. a $XX loss mentioned $XXX Corporate of NIR $XXX of loss Expenses $XXX year. by name down investment million impact last net million $XXX billion credit million I of the year-on-year. single million. a couple rates. were NII And was to

increase portion with as NII are the well and upward be balance slightly Note year light rate reverse outlook, Next, is as lower in meaningful meaningful expectation guidance the later consumer both XXXX the approximately line the of in we outset, the not year. a in that cuts a in Fed of wholesale higher in primarily recent at revolving the by across paid later ex-markets deposit to contributor in and NII billion. outlook on given the page expect expect my to X. card comments $XX revision This balances. We now that of NII inflows recent increases to the driven assumptions

a the highly well is point Separately, quarter’s below implied below worth the for course, NII remains billion And of this reprice decisions, still as will extent this and don’t last think Fed reached, would mix of rate year reprice, outlook embeds broader and funds out of rate rate well as significant is be environment, We year noting may that term happens, full RRP, to loan we when we more medium as around outlook that our portfolio in of lags. uncertainty will guidance. it’s and that NII run timing mentioned by mid-XXs. the when with sustainable billion the $XX the quarter, be associated its know ex-markets rest the And QT dynamics to the exactly the lower believe while of including it towards it of a trend slightly well this effects. impact the $XX macroeconomic markets the function run start end the positive NII as growth. on as year the of investment we trajectory the deposit sensitive this I as

Moving to expenses.

to be outlook XXXX about Our $XX for billion. continues

Importantly, this rate charge-off continue to include approximately impact does not the XXXX the assessment. currently FDIC pending And net special to on expect credit, card we be X.X%. of the

So to once highlight earnings wrap this franchise. diversified the this again quarter results strong our of up, power

benefited fortress We to uncertain commitment we continue will from an principles environment. increasingly into our do we have head and to as which invest,

operator, that, for line the open Q&A. With please

of [Operator Research. Instructions] the Steve line Chubak Wolfe From with

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line The the next question Jefferies. of from with Ken comes Usdin

I Jeremy, expectation bit if wondering detail that just us points funding just more you Hey, was a lower can those little you made. give on

update. it Just in terms you just because wrap what maybe your revised beta of Thank you. that of can And the might can expectations of kind -- are you lower? overall into keep to like client you is of allow offer what that that beta kind in it

sure. Yes,

So let the drivers summarize the of outlook. me the in just change

which, paid by wholesale as of factors. across deposit lower is really and couple consumer a mentioned, both driver primary the driven you rate is So expectations

feedback rate the off you outlook, to The sooner from else does in our It’s offerings. cuts attractive field the very customers. change of pressure the the as of short-term lot in yield-seeking our really CD, getting So equal, lot a in a particular, branches. getting is positive the on some folks reprice. from positive feedback said, in coming And we’re been environment all take with product

So, working kind of that’s well.

asset direction. And when that And card we at little we in guidance we like bit mentioned the one feel I page. we same seeing giving those. revolve, Jamie all uncertainties remain were has remind the things all suggested February, But We the and out, to conference which some that year in same had there. And upward moving higher that this helping. into side, of the the is on starting I’ll of a in the them started forward revision, then the highlight kind way. year already the contributed like a look just that was you very-focused we to those the went uncertainty as on uncertainties the term, pointed on all as through still next like of And to are medium are

mean economy? Do those a expectations how mean just of that cut potentially as do getting follow-up has still now Just look that and it’s think do lower even you what there? it’s react might more quicker And of because inflation just think -- storm be take might to the coming the Yes. just at you economy just that thinking broader point on clouds rate you to your Fed in sooner, for -- a what broader kind out about an Is coming the down? got economy. will tougher about and because some the for of general is read-throughs other the rates

I Well, believe quite I would -- don’t it. first all, of

market rate So, -- the higher Fed has curve rate curve the -- short-term X% rate forward what the curve, than the the almost has.

be is for So is anything. always one going the prepare curve got what to rate things of to it know the in don’t We be the you could year.

short-term and cautious and is about but down. that risk, coming then quite we’re the higher quite -- that. And recessionary Obviously, read thoughtful so, inflation in

down So people could and It I think the a will inflation little up than to think, easily curve a little rate go therefore, come be bit. have will bit. stickier

The comes Research. next McDonald with the question of from line John Autonomous

revision to paid Jeremy, rates up the I assumption. and drivers follow again of NII the the lower wanted on

it, banks keep the reprice events to do feedback r deposits? because offers. that bank folks to reprice? positive price about the your have industry-wide, in cuts mentioned those March your the they coming What happened are reasons, events? smaller view, Do How view the slow their than Fed because of they and on there in influence sooner You moving the the do March, customer failures intensify intensity other reprice

in answers a question, Yes. I here I current where real really think affecting and is, no about John, a is you sit to thought dynamics And But it’s base out, we’ve from good not two -- to major that. driver. doesn’t don’t the now, just guess it We right a obviously see we that. early it’s impact. our it are it’s One tell. today, little too we of case meaningfully outlook. as the larger I as have lay terms that But

ask you here? Thanks. crunch? retrenching Powell Okay. is look Banks that credit out anything about industry banks of a you Even that Jamie, narrative lending a see economy there’s of a for credit in a in as that of see going And lending. then, there at crunch. sense are be I and terms mentioned terms wanted Do terms you to reaction stop that a could that in worry to lot that Do the Jay risk. makes -- that might the that

the there’s certain of a little crunch, if real I going credit be things. will estate around And bit to tightening. most Obviously, use word that you. I wouldn’t were of be

real You’ve heard investors it already. estate from

just what kind on look scale. increases the a It’s It just a the finance that bit of is. That’s of recession. tighter, I odds So the a a be makes at like little not will that crunch. conditions as a credit thumb

comes Our Erika next from Najarian UBS. with question

is your reserve question build on you unemployment rate mentioned could assuming that mostly first wondering you’re what if driven reserves. your assumptions. by was worse update you I’m My in economic us

Yes.

our We just The Erika, event tightening a in made we probably result we adverse of relative it in lot run we felt bit team sense outlook add what the But bunch a of go detail our of into But little we to that to of a different changed. line March, I said actually from of Jamie of a as as a terms hasn’t with weight take bit case outlook case. -- know, of here. little weigh from So scenarios take can’t central the our you those. economists. and research

think peak using average expectation. weighted the changed that, that did I we which something like unemployment And average X.X%. the now is weighted So we’re

So, who term this in quarter was ROTCE when the us, X.X% a going as and just XX.X% medium a what reflects $XX about the unemployment. clear NII think we CETX knows franchise you’ve is XX% so is your happen already producing of all told mid-XXs, reserve of where year, strength billion of to and that

As we dynamics recession, ‘XX these in think in given recession revenue can and do in expecting, on how recession reserve? assuming XX% even are prepared JPMorgan is ROTCE about XXXX, a the you can everybody hit a what earn do as and have we you all think you

mean, I say question, couple a I Erika. guess, of that’s interesting Yes. things. I’ll an

question. a great It’s Jeremy answers it.

Okay.

crack. a take Let’s

Let’s see what the boss thinks.

one, continue have and is think, number the through I cycle said we believe, a this fundamentally believe to that ROTCE XX% franchise.

number So scenarios. Number different scenarios as different one. resilient all it for run we company and always Jamie possible says, to have across two, as all this be as

the ROTCE contingent expectations recession. obviously, it On particular a question outlook, nature the XXXX, the on of particular economic in lot the depends of on

is Company good I we’re recession, is in think headline be good very we we we’ll the returns. deliver now. for course, bank. much about serious fairly is, whether recession headwind a feel recession, for for a XX% But A returns, think not positioned a a very really of severe but detail or too how to even a -- going that’s

The next line Securities. from with Jim Global Mitchell the of Seaport question comes

process bit there. your on a the just Maybe thought little deposit,

pricing. about for given the pricing you why think little they power lose You’ve the seen banks? do your see larger inflows, some them feel going What’s some like forward? -- bit talk Do the you And in you a maybe just inflows. do dynamic you --

Yes. A of couple things there.

right? just all, of deposits first we So know. in. We don’t The don’t come know,

the came We’re deposits Number two, in. guessing. just

deposits are into because these definition, they by flighty somewhat just us. So came

to Number they appropriate internal it’s stable. deposits natural particularly for a to assume of funds. be three, and money migration there’s of prudent that So, us amount won’t

it’s to competitive assumptions. and four, entirely in market. people you then overweigh over a have time, to elsewhere. go embedded that’s And So, our And us it’s come and to that decide possible that, number temporarily

that. we’re about being So those reasons, stickiness of for of all the realistic just

but is pricing bigger -- category, say, we I at and bills, X the bank power would months, franchises look different look competing in funds. then no And got time, you months, in banks to for money the pricing sheets all Because bank X every is every as X online market you position. pricing savings the position, and the got banks, have. there months, -- a slightly different have rates. obviously, wouldn’t add, at I slightly power is that we’ll you there’s bank, different you Probably treasury as have pricing, if no the well There’s

question fair on maybe just environment. All the And points. a on John’s lending follow-up

pulling for you or in given trying Are some the there environment? potential about capital talked market the You loan your how thinking is through, Just think gains industry back. your a to share you any standards liquidity, underwriting are about way? changing strength of and likely

We the we all say at very modestly, look but that time.

through we cycle. crazy right, Yes. And And numbers pandemic. not we we all we’re And now good the notably, our underwrite I overreact tighten going loosen standards don’t during always say, the looked when and like underwriting think unreasonably. the to

leave correction for naturally. might our we’re around right But appetite. standards aggressively now. them tightening not Credit that metrics and happens risk running of deteriorate wholesale or borrowers, pre-existing in Some make whether that consumer

question Gerard comes line with Markets. Cassidy the next from Capital The RBC of

strong your obviously, your CETX In about in at XX.X%. came comments ratio,

You’ve lead should year, being June, capital think? the the do having coming we got ratio summer maybe will have in that or the by higher think the end CETX And which up Where year. G-SIB a going this to stress results, obviously about next buffer. including yours test you the buffers of we stress banks

Yes.

Gerard. on there, things few a So

that XX operating have assuming quarter of stab and in a with SCB, So an we the previously ‘XX were a unchanged targeting basis buffer. increased as the XX.X% of said point we first function G-SIB

dry IV, how tweak forward. who So a in environment, our still base that we’ll that assumption. the knows that’s But case made going point of second the ago, powder, Basel light Jamie

actually what time predict heard quite I’ll stress Specifically, surprise almost our you’ll a terms factor up SCB contrary ability in remember limited. off an wound some and predict on how And did we argue, though the to ahead of to people -- I’ve test, industry. big even was process running own a of is last of the increase, from the by that we big that being it whole for our X were year

quite about be OCI, assuming be unchanged. right to will to it we having that, but there said we the our some likely offsets tailwinds shocks in the are humble SCB. now, numbers. the some in want we ability there will believe predict But be So for through credit in harsher are There

So right for we’re flat we’ll SCB know purposes assuming enough for actual what planning number now, and is. that soon

as Sure. a if credits. correctly, I you heard color? identified building commercial? follow-up, Were And Any color said there? more in then reserve real orientated? little quarter, you the how they they loan more credits. just one-off can some some I don’t loss you commercial larger give estate There’s this it. a us that’s mentioned you know you I Were if think

commercial couple of No, the Corporate estate. a name it just items real single segment. wasn’t in was It

Leveraged loan credits? type items or just regular corporate

Regular corporate detail… much into credits. too not I’d rather get

Okay, very good.

sorry. Thanks. Gerard,

with America Lynch. of from line comes Merrill of Bank question Poonawala Ebrahim next the The

question, exposure one us JPM, the you reminded obviously, market. relatively players CRE you’re maybe office guess, but I the for low in Jeremy, of big

the in the next few give So because we you how the a economy? weakening that as think see pain beyond two the ton is or an of much And CRE oversupply apartments, two, at office into banks and how in of pressure year oversupply, market years cut a going of rates issue into X, in long when probably central refi on sense next much gates much wall the is that, us goes points is look higher about we of if a more for a risk can’t that’s up? coming will the how of

majority right? our important respond and exposure with sort higher-end, portfolio Yes. our point, that connection difference in markets. it’s markets. the Ebrahim, multifamily real between me estate commercial not sort And supply-constrained let recognize price think supply-constrained narrowly is lending large higher really, So non-rent-controlled, to of and in the our exposure, of of I quite

good been our So, of is different performance reason part so a long. quite I that’s the And the that in has respect. for think so space big really

the of carefully, results I very multifamily So, is But performance risk our assume lending we course, watch it that in and don’t things. of future we low portfolio predicts past here. quite think scheme

in also, short Just is in housing to supply add America.

So, like it’s not in you massively XXXX. saw oversupplied

our office is all other. then, the too processing are the And as you terms the one Yes, way dynamics space refi quite know, that has of small. Yes. in or something exposure that space, is Jamie also the office you mentioned mentioned

concentrated buildings Our is and one of quite the A exposure narrative drivers locations modest, is generally Class of return the high dense office office favor very occupancy. urban in sort is to of in where the

launching there and to, in There scheme things here a to are attention specific again, So issue. but obviously it. things, big pay the not us, of for

Fed And time. a higher what the the mismatch if think I are long balance areas decade the given just don’t And if exponentially just a longer other X% have Like watching, fund period as the in one. I transmission being that follow-up, bank you’re provide the is rates, risk being if market from at to economy, talk one, ability nonbanks plus think, markets nonbanks? coming of grown and about of of mechanism for other of worried for the Are financial duration banks risks the sheet, the hitting to sustain a cut? you and nonbanks get can CRE over worrying last leverage you that rates -- that the banks terms to back the

Yes.

like So, to I’d answer that.

I our them. I’d you a don’t happen. happened think longer. they’re for for people people’s They saying going should it be could and happen, think thinking Fed rate, for about just should things funds So, about, rate could to not the higher if saw think -- X. XX-year what rates when because the went just X- there up beyond be -- And those X of I’m risk planning, and think is don’t which And I be expectations. more prepare just rates I think just then of and

guilt You had problem the in London.

You banks be for had rates of prepared the longer. some of potential for the here. higher need People to

rates risk. floating the for in those that in too address exposed when will refi or are to and it who parts be happens, the problems exposures will economy economy. to exposed multiple those of Those are If who too

to yourself the business, pools, that a it. answer now would all not et That’s one. Do say number in your now I be your So -- your put company, for position time our to risk clients, that investment cetera. excessive is fix of where

Number come two JPMorgan. will is it back to not

provide banks, providers. we does what While very, to very credit Okay? mean shadow is it we back come think very credit call do to not -- won’t secure. other it’s you That it

next The Fargo question from Mike Mayo Wells comes the line Securities. with of

degree mentioned of you Jeremy, reintermediation lending to markets. Hey, a the

markets increased said your And loan gone part they better why aren’t loan your has credit than the are topic pricing, today? higher just NII activity assuming you You wondering, the yields as are on Thanks. card going bank And lending. capital guide, to billion where $X spreads? of of I’m

Yes, Mike.

yes, generally on with I the I capital bit should think, now access rates. up capital draw a choosing Commercial that access drivers fact made in a of There’s lot markets, are That Bank the actually, about that But is the I also revolvers on the and to checked imagine gone line out. happening down honest, the a bank that rather would to guidance. have follow called that ones be don’t within corporate in markets. driver And than larger segment card to you’re with referring -- particularly odds increase I to So so that in We what’s is meaningful major margin the right up. know. lending ends Commercial the there, they’ve NII but but haven’t of yields. to the access I little my in I specifically, the not to comments Bank that would

then could or you at AUM, Jamie. this shareholder how guide? are not this problem billion when level, the to But what asset one I would do JPM rescue management for And I yourself, look big evaluate get to good. you banks Probably is willing higher money that to with management NII you $X I correctly? And degree at some their liability taking guess, sacrifice right. asset All help XX,XXX-foot guess, I Nightmare Street, on you, you’ve liability Elm guess, problems you seen call guess, banks. and

two questions. there’s really Well, different

our looked at and interest stress the So, to a and we’ve had quite always as been The going quite not or anything I stress whether rates our is you happen. down. our are, expectations how -- stress up know, we to in -- test, testing. rates what while, cautious being rates going prepared CCAR for portfolio, test going invest on

do So, kind because we’ve to I in It’s earnings conservative store. been having it. capital, don’t of continuing you that quite we mind excess people haven’t And lost remind that ourselves.

when deploy You and a get more comes. later at time maybe opportune to it time the

we’d the when help we’re the look, help And if we -- to to And we’re can needs not system ones. not it like reasonably. only

of You saw a I of lot that. them. was proud And proud banks was them. I of do

of all Suisse. headline. We system. this. second thing, theme you second you when And is is want people banks. that have knew want saw community could We Credit We us And banks. But to whole or banking regional did think this it bad I guess out get right that help healthy healthy think not, it banks. the want happens. the I ultimately, And help want I whether works fact to them through the for the the I

people each times of all during need. changes -- there financial reasonable pointed world it’s all seen. the out, have for help other problems. does system we us ever has won’t the have not mean did as it It have of -- doesn’t And made, be in we That best shouldn’t during that We remember, Mike, COVID. you that think mean to did but I

of financial did people that could great did going you would those us I you during expect could, if forward. crisis, do the All that it and --

Jamie, crisis letter the banking your said over. isn’t CEO

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the Betsy Morgan The with of next from question Stanley. line comes Graseck

possibility for non-markets I higher on and question that do your in of the to unpack you how want rates the impacts longer here NII...

we just feel did I you? Betsy, just dropped. like lose you

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how if possibility the NII So correctly. the assuming I it unpack for NII is curve, your your to I higher impacts to just rate because longer as guide forward wanted understand

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ahead, And I’ll... Jeremy. Go

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of So, that’s the the all NII drivers why we’re in uncertainty emphasizing different outlook.

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Yes. Got it.

follow-up you Okay. helpful then on is think to And That’s through buybacks. the how the just super understand that.

the restarting? the you’re would mean now? if So, do that’s driver pause be comments on I And of that what to case, your take

now. Yes. No, pause on we’re not

obviously capital. little lot bit now. We a doing excess We’re have of a

ahead, those so a stock of just be like little cloud, bit available. cheap, our it’s also when And we’re kind we’re it’s of cautious. at buy to We to not when going looking also peering storm

to we’re this decision So day. going every make

don’t what you like market doing, just to We the so know. we’re tell also

you can any you this? us we your baking then Basel And RWAs? of IV should to be in for sense what How much in Yes. endgame give means

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it I that. much worse to be too Hopefully, than feels think now it’s that. like worse likely than it’s not

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were be be for there they remember, and supposed which in how are that. the economy, to banks just about relative getting supposed to I is G-SIB global to looked they adjusted smaller at positive

it may vary. So

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rule current the …on set.

at about to -- banks capital it lower would for the are Yes, holds talking pricing -- loans just is market hold much than ratios them. only. market I’m because forced the loans take being

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I the better sale. on loans from like than the NII gain

So the I’ll the thanks, former, prefer But not appreciate latter. it.

Yes.

Evercore Glenn comes with question line Schorr ISI. the from next of The

reaction, the knee-jerk curious about talked addressed how earlier. which in about the avoiding have reacted you customers react. around you should So, thoughts regulators and I’m your letter your on

should side. if Have seen CFOs say changes extra need -- my they Warren how they corporate on the you and corporate excess the is insurance. question and money question are comments. for consumers working big more I’ll ways. a different cash capital? or want in move Move of -- cash is, issue The that point whatever. Now your treasurers you -- it, in treasuries, balances Buffet their my And I to? adapting accounts, markets, They And can lot can have do balances

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market your if have et even would I tends middle What I be because So you call you operational more cetera, like your there. money they companies, sticky there, that have think loans options. have cash, fairly companies, small to

see rates. in banks. think you lot why sticky market got You of regional deposits. I that’s They’ve middle a And get more and more competitive

more lent $XX you also my I are competitive for you that. have million $XX the they you’re probably rate going to be bank. million, If and on in leaving And

I types one out what through a of whole like go shouldn’t try analytically, stickiness and class. bunch the to -- be there’s each is and you et just stickiness at and and different deposits what figure think you looking cetera. So They the is one

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Interesting.

follow-up. a Just

capital letter new that XX is last years? mentioned securitizations. doing the eye optimization you for The in thing you’ve the already exploring including What’s you’re caught different my and what strategies, that partnerships than other been

for figure been to we’ve smartest partnerships. there And it, angle every are our people difference. out got reduce the That’s there capital We’ve are securitizations, doing requirements JPMorgan. but

over a companies. And do I lot too. different of the assets, things come And up to certain we’re we’ll private expect You’ve insurance the going that with of equity whole time. seen a life bunch shed

the Our comes Deutsche of line from Matt O’Connor final question Bank. with

I say, guide of thing credit there what of months net balances. versus those outlook, out is good interest changed could higher And drivers due one than higher that is You the the balances if three And bad to just thought? be that was income this wondering card higher likely guys will a ago? year you talked about guess, or on flesh you the

Yes.

while. So been the talking It’s we’ve story kind same matter is the about story just a for there of of a degree.

period, as So talked we having about we level balances terms lot the had obviously then revolving during them pandemic the had same we and drop dollar recover to a in pre-pandemic. absolute

is So And last then that quarter. I growth, and seen some just of account revolve think happen. also the narrative happened to account continues because we the remaining have normalization further the per

yield as also, And we’re so we -- earlier, there seeing higher so. Mike’s question well, to and yes,

a And on too whether your yet, point at leverage. see have bad, don’t that obviously, is much the of so. there consumers good which We or question it’s

a good for That’s us. normalization. It’s thing

And just separately Okay. to then in. squeeze

pricing kind again that kind it of the for And of just overarching... you’ve this there opportunities. quarter, some going by about You broader again Is really guys drove quarter. security took is losses kind of talked in security, what some looking security this past, or

rest the That for every lives. will of our quarter be

find So is we think what dear. rich we and we buy

have We no questions. further

much. very you Excellent. Well, thank

your Thank participation. conference. today’s concludes That you for all

may this time. You at disconnect