JPMorgan Chase & Co. (JPM) 11 Oct 242024 Q3 Earnings call transcript

Good morning, ladies and gentlemen. Welcome to JPMorgan Chase's Third Quarter 2024 Earnings Call. This call is being recorded. [Operator Instructions] We will now go live to the presentation. The presentation is available on JPMorgan Chase's website. disclaimer back the forward-looking to refer in concerning the statements. Please by. stand Please and Jeremy this to Chairman JPMorgan Dimon; like I and Financial the Jamie At would to turn time, Barnum. call over CEO, Chief Officer, Chase's Mr. Barnum, ahead. please go

on an Thank firm X, ROTCE billion, of of reported everyone. of revenue $XX.X the $X.XX of XX%. Page on you, income $XX.X morning, and EPS good Starting net billion with

year. for across In year-on-year, we a both ranked In #X record the couple fourth had deposit retail reflecting In long-term on Markets straight Touching and and we CCB, share CIB, up IBs quarterly revenue the of in notably revenues record flows. AWM, highlights. were franchise. strength

$X.X securities to firm-wide sheet Management by NII and balances, for Wholesale the balance year-on-year. Page deposit $XXX reported mix of ex in impact results. & Markets higher turning balances was and Card revenue or in compression. X revolving the higher deposit margin or deposit Banking offset balances billion, by billion predominantly X% driven reinvestment, up X% firm Now lower and up Wealth million The of $XX.X

losses, NIR higher was was up ex or securities billion but up the million or And $XXX Markets up prior Investment investment net XX% $X.X excluding on Banking and asset year's revenue management XX%, fees. was it Markets year-on-year. X%

Net by employees, $X.X offset X% by were compensation, driven Consumer, net $XXX partially Card. $X charge-offs year-on-year million net legal predominantly including $XXX credit and billion which or billion of primarily and million charge-offs Expenses included million $XX.X compensation growth $XXX Card million reflecting up of in in a by year-on-year, up were expense. billion, revenue-related $X.X in of costs were lower And driven and billion, in Wholesale. build $XXX reserve

XX.X%, by distributions OCI capital net RWA. X, and were Page offset prior versus CETX with quarter a and ended capital ratio gains balance as income the we and the flat sheet of the On on quarter higher

RWA the quarter's quarter, reflects part Visa deployment as as of higher mentioned. sale the share share billion well the we moves client which activity side. on as added trading common lending X of proceeds higher the market from shares, from this reflects net This We repurchases had in activity previously and the of

go growth Management, revenue reported reflecting Management with businesses, of let's income Now to starting deposit In in on was revenue. Wealth CCB partially year-on-year. revenue and X. our deposits, XX% which down down billion, billion was $X by year-on-year, lower & Page margin offset X% Wealth on $XX.X Banking CCB of net compression

down X% Average deposits were year-on-year sequentially. and X%

from referrals seeing strong a are flat branch market driven investment assets higher [indiscernible] slowdown and performance, to see including We offset network. of Wealth relatively for revenue. Management and NII, production were year-on-year activity, we clients yield-seeking remainder be driven X% expect year-on-year, revenue In lending, the continue volumes our by by new year. the in servicing of deposits XX% and to lower was partially up by Client CD up customer

high-quality compensation driven by driven by credit. And year-on-year card up originations as predominantly field continued margins revolving Auto, billion, and marketing. Turning normalization while were were Card to year-on-year billion balances. X% technology in strong higher strong the outstandings X%, were acquisition [indiscernible]. to growth $XX XX% Revenue due well in maintaining of as was down on Auto. Card NII and & account up of up Expenses Services higher higher XX% $X.X and

predominantly a revolving of quarter, $X.X up credit costs from this by $XXX build net million balances. and net higher In were credit billion terms reflected million driven $XXX Card billion, charge-offs and of performance of $X.X year-on-year reserve

XX% closing of $XX from XX%, advisory a year-on-year, Page fees of and the wallet $X.X were Next, ranked up up with And billion we on net reported IB CIB benefiting the Bank revenue X. were of #X X.X%. Commercial & large on share few income fees year-to-date Investment of billion. deals.

XX% about are by driven positive light pipeline, year, geopolitical market the In the Underwriting and uncertainty. of fees favorable sources were that the XX% meaningfully up momentum up our regulatory and throughout conditions. equity we're primarily with M&A environment of up optimistic but continued situation

Payments and compression. margin revenue balances, fee year-on-year was growth driven offset deposit $X.X billion, by by up X% higher largely

markets income quarter and Moving flat, Asia. to up year-on-year. currencies in in and trading U.S. X% $X.X environment performance in rates. in reflecting a billion, driven was was regions across outperformance up strong Equities late increased activity was supportive XX%, the lower Fixed [indiscernible]. Revenue revenue largely by reflecting emerging

$X.X Securities technology largely with Services employees year-on-year higher offset year-on-year growth levels by volumes. fee higher revenue compensation was billion X% lower of and were higher spend. and Expenses predominantly X% expense, by in $X.X driven as legal as billion, down revenue-related on growth well market up

Average corporate markets. client banking due middle down in loan demand continue softness both to revolver in see and payments utilization, loans and In market large were we part segments, clients' access capital year-on-year and receptive down X% the X% to and to new sequentially.

encouraging and primarily were sequentially multifamily, we to in from large the muted growth as originations and in In payoff offset remain by term securities by are near seeing originations Average client payments driven up overall and are signs loan services. expect X% growth we while X% activity. as deposits corporates fall, long-term year-on-year rates

variables. driven by downgrades, were and million costs offset macroeconomic higher improved partially credit net Finally, including lending activity, markets by $XXX in

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

billion Wealth XX%. Management $X.X net with of of & pretax Asset margin income reported

average the prior activity, fees For of compared by offset partially driven market on billion compression. in to levels year and losses strong revenue margin year-on-year and valuation deposit X% the quarter, inflows, in was gains $X.X up investment by net higher brokerage higher growth management

by in compensation our fees of Expenses were higher $X.X up well year-on-year as growth revenue-related including teams distribution and predominantly banking legal driven billion XX% and continued private advisory higher as expense. compensation,

equities. net quarter, and long-term led by the For income $XX billion, inflows were fixed

deposits trillion XX% driven levels quarter-on-quarter, of saw were AUM market were and assets higher inflows we and net were liquidity, of trillion up $XX up $X.X and And continued of And X% loans finally, quarter-on-quarter. both billion. up by net inflows. in $X.X X% client

to corporate income was $X.X prior predominantly impact NII net Turning Revenue billion, the balance billion, $X.X mix year-on-year. million and quarters. of Page driven up X. by was sheet up billion. reinvestment, year-on-year from of Corporate $X.X $X.X $XXX reported billion including securities on

losses net predominantly million was a loss Expenses were investment in net the quarter. year-on-year. lower gain $XXX million compared $XXX this net driven down NIR prior of with million a million $XXX $XXX securities of year of by

total approximately $XX.X $XX.X now Page To finish up, billion. to We let's expect NII to billion ex NII X. be and to outlook on Markets the XXXX be turn approximately

expense Our billion. adjusted now $XX.X is outlook about for

adjusted expect And And quarter. given imply included guidance to note numbers page the the we $XXX the NII approximately credit, on rate in of implied that to are we where fourth On the continue quarter card NII million Markets in charge-off we net and fourth the for about year, NII X.X%. XXXX expense. the be

up, we're of wrap another performance. to operating with quarter strong pleased So

look to few on as we excellent expect order the quarters, ahead cycle. next we focused to upbeat in will executing challenged As we the continue results delivering remain and returns But through normalization be continues. somewhat

let's with line that, for And Q&A. open the

Seaport question first from Our Global [Operator the Mitchell Securities. of will come line Jim Instructions] from

about highlighted, implies ex year X%. NII drop you Jeremy, QX So as guidance a sizable full Markets in NII

the deposit just So discuss initial largest drivers what point on any and basis including thoughts sequential XX pricing of are the behavior since cut? decline, maybe can you the

month trajectory up And out since a just is follow-up Dan since I frame throw you're curve it but question. 'XX? I'll the lot, for it's brought moving NII you thinking how related, ago, the a my forward realize about around can

Jim. questions my the to Sure, together try I'll of answer ability. sort Yes. both best to of

driver sit we is, of -- sequential in in that we're as the curve. the is the is, fact biggest decline So here fact, yield -- today, single expecting

conference not significantly. So at earlier made has little a the but that comments yield curve bit his since Daniel in that quarter, changed the

much trough In in deposit now, the of as light balances, us right pretty we're is in speak. it now here feels in obviously for terms mentioned of to starting cutting I like another as consumer, important right Fed remarks, factor prepared cycle, my the the we which

look that you When bit. quite a down yield-seeking behavior, has at come

being of now for their look time, those all as you longer no some an as done if else then And that's checking been indication spending have cash stable see balances, we So pretty of much account which equal. at kind a that headwind buffers. are consumers

that's consumer kind supportive deposit So for of balances.

and pretty In the been high as expect that betas have of around context, coming, QT the with announced balances. actually sort probably where the you seeing it's to that that now. CD end Wholesale, bit we've that's many mix other little the people is growth relevant And then that supportive soon, cuts with the a bit and the little point will when actually down also in move CD deposit market for combine And of increasing view you price to a already likely be sometime of peaking there. mix CD balances with rate the we

bit -- I'll asked guess, next So little then -- about maybe a you well, me year. also I

I that when some did one increases Investor may said guess was right, declines a the should there followed happened. thing chance conclusion I you is So in Day, that And sequential drawing this that sequential and kind that sequential NII trough hit avoid at to people we see say, the recall, have of would that we that increase quarter. by as we've

now. So that's we're exactly seeing essentially what

in balances, and sit growth. and you with. given the yield NII of pretty we're I point, materializes, that we may obviously, in of sequential bit year, formal we'll yield us it's picture quarter, see but in at the the But this you Obviously, next out declines assuming stuff now, a other work curve guidance happening trough framework of give which to to sometime and a think gives where curve, of return from we future, Markets. card clear factors sequential a revolve all guessing pretty But far growth next the the do combination be middle the ex can

Next, we'll line with Research. go Wolfe to Steven the Chubak of

in on So at year to expenses. one-timers for pretty below core would comments too we light suggest XX, $XX expense believe so just in expense billion. that's a it I adjust a Daniel below was the just some If light. little I base a the step-up looked had the just bit year, healthy this time, noting ask for that next that of made that just consensus of do want forecast expenses recently,

I know and commitment had investment. discipline you've always strong around a

deployed just which want in out prioritized looking understand are there's where better dollars being are year? particular to next Just and to incremental investments being

Sure.

consensus And question. of also I this where significant Daniel and numbers. agree for the good comments. items when So agree normalized the with you've year I the made way your was onetime with type his

next for remind would XX. at consensus and The the just we're I year, comments for was NII you also it was it, this while year time. the on at And XX.X,

that So that a was thought that enough at the made. it we implying wasn't big X.X. decline because sequential And of decline time, was comments we the that made we

to happy more I'm on that. expand So

you But expenses, for to anyway, are sake efficiencies generate yes, base with always if inflation obviously, to offset obviously, a start And of is to trying normalizing. so XX, of we the argument inflation.

you gates that we're of having been that the billion But a that's on out base, few if working assume argument again. sake X% the dollars that right for said, of

thing. one that's So

The other this our to execute strategies is thing have we year. that continued growth on

insignificant of So amount not annualization. there's a

as You of the sequential But probably an out, increases that comp. annualization quarter to the headwind. incentive because and so you can't if in see quite of were additional some that numbers would see you strip fourth seasonality

is noting worth that's volume-related grow do to fees businesses thing other year. we and that next expect The

being so a with all equal, loading. that would higher expense else come And

assemble seemed consensus of just that that light. why way you explain slightly number XX those, that to long a when all So sort goes below

investments, long-term we nothing that of hasn't In terms changed, the and has always changed, same plans with and strategy strategy The we're really and executing like just had. of changed. the priorities the hasn't haven't changed, kind perspective

Day you would NII, that the guidance And use the obviously, Investor to February. old quarter quarter. to we're the relative third late until in note the I days, give in now, fourth did not in we

expenses for So you the quarter we well, middle are But in both next budget give quarter. expense guidance the NII we for especially next right and now. expenses, on cycle will formal -- of

on So NII. probably margin a the less visibility have little there we we than do at

And just you view can expense a just bit. a of I give little

You expenses investments. often, I call call very

private Wealth you'll we're Management. Investor ETF go bankers in Day, Asset actually adding adding Asset see United Chase to We've across banking. you & growing private adding & international that private management. in If and We're bankers Management. States We're Wealth added branches of some in America. We're the back

like that. takes that huge certain technology and innovation economy We think there are in bankers the opportunities stuff and

Our to share, do, good is goal returns gain it. and get we really on we everything

expenses actually extensively So opportunities that And great punish stuff going I I on are on. we would us. we we to bit. things. -- up And show little cost These not get put look And ourselves going and just these do have you of to for and categories productivity are at kind be various generating in also those is over go AI time. to a that,

a down reserves of fair at the quarter. you long expand, amount into just encouraging into drilling Just end or follow-up the which both redeployed contraction me, pressure It a at SOFR excess quick is for the the securities. We in saw and yield appears cash despite the Fed NII.

But the environment. just speak know excess hoping in just was appetite had you deeper aversion anticipate amid rate extend that past. expectation additional redeploying the some liquidity in duration this cuts? that could I you've your for I you to do to to

sure. Yes,

this, on important NII assume just point doesn't the say duration else if I to you it's you policy but think So the that extending equal, Steve, right? one. change So know rate all obviously, follows forwards, extending that duration, expected

we remains view the two, inverted. Point curve

that rate, different the [indiscernible] I that's be broader policy now all us either -- And the NII, like if that's think headwind that is to worth from don't short-term but not with saying you way, right a you extending wouldn't the numbers. for quite actually situation for so have even that consideration audience, it's a do believe words,

More than X%.

rate... So

Yes.

duration things the say. now, duration So when question we to managing right of extending really couple think a of about and

will a are from of X.X EAR. little a out, different if estimates number number see It versions about the disclose obviously, of our but duration, correct. is When to you'll that the that one XX-Q come So lot current comes we X.X that, bit down is lower.

duration passive, and extend little active for either on but And are of duration bit. choices reasons, is a the about manage really the choice of those which against the a extend from end, of the scenarios company are side. in number volatility NII of That's some balancing some to to protecting extreme

right And could. we a certainly now, of as to so if extend different we result factors, wanted

We inside now, where we the comfortable are. have portfolio. for with we're capacity the But

will I show not same can the is X in thing one the And curve be months. forward you the forward curve

line Next, will Erika the to we go of Najarian UBS. from

questions just, very much and answering another for the so it's follow-up. far, guess, question, first Jeremy, you all NII My thank I

what As on year. to he you September, figure net is can stage trying imagine, out once in Daniel for said income over-under said the everyone interest next

Jamie So maybe a said. X-part first question, the second being inspired by just what

sequentially Number be one, X% fourth quarter. NII is to down expected in

has I 'XX, think X% down from in level. year-over-year consensus it your new

a like bit room still could down. than the come forward sequential it to year-over-year quarter the Jeremy, it So fourth sounds based And curve, has rate. be little consensus on worse

right? like what noted, that going idea so But have gyrated said, being it's is no Jamie as much. look the to like, we curve mean, I

but but curve? steepness a little about curve, end short of cuts more flatter better the think to less we or a it as bit so And the have for in JPMorgan is cuts

Right.

Okay.

the a But and answer of that let your end expecting I'll the end your end curveball of also question, me your there, Erika. I the at question. You answer to then wasn't question. beginning the threw be of

was quarter. we the lower at it XX, ex consensus XXXX see obviously which the than at early for So currently conference current in be the Markets NII at to -- is

that looks line more a the it's a move see in to So in happy but us. ballpark. definitely That to still we're little toppy, bit little

of year. sometime middle NII mentioned that sort trough already expect in the we Now -- of that consists previously the of I the

you parts. of kind can So assemble the

run quarter fourth a got rate. You've

some got You've declines. sequential

full middle rough ballpark a year, year. of you've trough the and a in got the the for You've got

the tailwind than little those that lower tailwind. extent that imagine bit sorry, a of than the can might be and numbers a then probably otherwise less [indiscernible] mean, than in less you growth that deposit this revolve but and trough tailwind a little bit year, card evolve resumes thought is ongoing both year, the I a was the of little still the you -- to half have it balances So back will

play current in but the ways. assumptions, as yield quarter kind in so we now, curve current that this will things those of Obviously, will doing out what that's curve different the out, up the the we're remembering on end And and knows you pointed mix doing, yield what we're our who of third on early, think.

going spend I things [indiscernible] like Can is they're things all say through -- what And out all to the all are all, being call but number, you some first just a time I that next don't want in next to of is equal. just NII, the I going guessing be year. number. also what NII equal, point never give time

the yield growth. the And much I if curve, and there effect thing -- the recession, if get of spent curve that you just I model. decisions that the will nonstop happened yield are so And us are and you you number of your in different a time made very have model be a have just a this the marketplace. relevancy on think And we by too

going XX it's next don't be know less not so and we probably than don't a year, lot. the to know, And We environment.

Okay.

a in question EAR, your things to about say there. to so Now the few

So it will of -- X.X. a number comes already we that as when I show around out, mentioned,

rate meaningfully main what higher is DAR, reason than lower deposit beta. as even thing the very A is EAR retail important than you the modeled know, been actuality that are that empirical this for to cycle in disclosed. betas which that -- model experience our our we deposit say, the has of And have is

a the than dollar, reported nondollar There's as number to other be number adjust interact. have for kind starting you point, sensitivity of EAR nuances actually. and bigger reasons, those a few to So some that

bit about end. end a there's versus front back your the then little question, the And which is

that is has most of the and the see in EAR is back the end front actually you what gotten EAR end. now So smaller,

it's a us. is being better for definitely that So curve steeper else the all case equal,

I think end. I kind that front of empirical is in what this But would theoretical versus say disproportionately also the adjustment is

a we in question, So answer would yes, order want steeper your to say, therefore, I curve.

But having cuts. next than would the us. Fed to at a We what's context year's for margin headwind remain Fed the a the numbers, is with cut curve yield be in the sensitive headwind of more asset currently definitely

long-term or And to your about your And if I about second on care Jamie, right? They XX, whether completely I XX care the could my return it's And ask fair, really question. be don't frustration. understand shareholders equity.

I generate end, you in that seeing quarter. basis To much mean, points this capital it's how quarter, each XX

And so organic how questions we should beyond growth, to yada, standard buyback boilerplate think JPMorgan the deploying you're increases, yada, get about going capital? dividend this on and

your mean your again, business. to deploy opportunities use dominant that to your I and always capital boilerplate further shareholders think beyond generally enhance that You're already, every about how get the capital? right? oyster, this should the about thinking you're this world quarter, And is how you could conversation you

Okay.

say So different competition, lenders. got first around of We've world, very tough all, careful that. very when direct countries, companies, some I'd [indiscernible], be on fintech the different you

a I specific comment to direct that. give very want on And you stuff lending and like

So to same the the innovation for some deposits, the different branches, in road to is for from down a cetera. the our private a that open initially is bankers, deployment always of but And et capital supports same our talking And clients. these a expense, of way it's expenses, capital. an you goal experience economy, when serve deployment

at we pocket. you look deploy whole a minimum it $XX for perfectly this of excess a and my reasonable you properly company, I roughly, have own wait. burning billion it can't to at at If not me, in it's is capital. hole you And a now look

could I view, I inflated. a and And in a like think asset but turbulent bit, know take they're sometimes or I've got you my been prices, you've that quite -- future quite to and and the things prefer I -- if view be clear to don't extremely wait. inflated little are

it. deploy to able be will We

that. billion by this capital, deploying clients a be our do net With increase couple The make technology $XXX Our don't tomorrow, our we or like is decisions mortgages, buy we by grow serve billion served like well most important very shareholders well, of that. waiting. -- by a we things we thing will build and income do X% can

real is the what capital know also excess yet. we And

little patient be So We're patient. and be a we're will a fine. and wait, to it little going

And where you we'll going let if so know. not change. that's changes, that's are, and to we And it

to of one buy at more buying understand it do And that and better at -- value cheaper point. we redeploy to than have stay Markets opportunities Xx or to not not tangible do at back a lot shareholders, stock is to the necessarily we forever. talk book thing they do people prices high because back best

in feel thoughtful is my right have people very I this a the valuable asset one a stockpiling little world. long for in grow And mean we're you term sometimes turbulent see about world Warren thing. navigate to cash a last Buffett how trying and now. Cash friend I company. more for our

Our from comes ISI. Glenn next from question Evercore Schorr

So what say about he's that's glad question. because Jamie to the to say didn't this answer

managers. we've yet And. years a limited income loan for growth market-related few banks in into also, in funds, credit a with partnerships private general. seen limited seen alternative growth fixed more So plenty entering now couple of flows We've

on less all in private view, You're credit. one best but of dominant things asset the planet, in the managers my

talk could serve parts you of your and clients working the too things all needs, that's you're why on ability markets lending public view what and about of of public maybe not just side. So a to narrow lending

Yes.

is to people this So -- it how and one let they're very things become that. me time take and about because partnering obviously, growing talking like cover important,

And and and very going to talk I'm tactical. then so about foremost, first strategic

they're both important. think I

serve we are here foremost, for give and and First world the our the of best to what an are them. agnostic clients we products view

in, of and interest lending they lending. direct going their be but kind will both other pluses the what's syndicated lending them tell to offer Therefore, clients across simpler and have maybe faster, are basically them a seeing go and forth lending all little Direct done lending, comes you're and is And ourselves minus. or and we're client those offer best could It And unitranche. thing. products lending between when in expensive. direct a we specialized syndicated things what covenants, more the back

before in it's mentioned a done. some loans. past paid lot We make off, to actually capital billion been those that We've always allocated of we of $XX of capital, the direct deployed some of

going And to say will we I it So we going do be directly. $XXX -- do today. we are to will XX, limited we're XX we today, billion. could are $X extending will or XX do million, not --

We billion. it will do We'll do $X more it do sole partners. handed or with we'll

we Very ourselves one importantly, are not to to partner. allocate going

-- flexibility co-lenders, bunch So that we have and and down I use get announced size. to creates that going just have think slow to not permission everybody. it for and a we've of flexibility to but We're more more

Because bridge it it it loan I own the a said, fact. like syndicate JPMorgan and like could and after underwrite

sure So the can best the -- making the own offering in use our of like we're and going risk and you thing. we're client them to stuff Again, measures all service and that.

And to to ourselves strategy, on we're provider. one going going exclusively not a tie different we're capital

more thing something I competitive. can that limit could not capital be would think where solution price provider. can offer We third-party we Probably we is clients. the do our the and very that specific

place. be capital of we're to despite do going to We're this effect there. strategy. taking arbitrage going We're it. our do to going That's it And the

different. in time. So for long when business if we've That's a you disadvantage, an a for had to today are arbitrage a at dramatically other hold those insurance bank disadvantages they has but thing look the guy, with

to right revenues it the do get client. for do to also when other going client, are we the We often. [indiscernible] Remember, we

look So relationship. at it the whole the isn't loan. just We

So that. sizes like lending and stuff we're quite compete. just bigger we platforms much comfortable can and announced I

good and very too. they this, So I hope heard presses,

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

when We very down know guys it you from you obviously Basel how about original you the from but may peers a the you come guys some you the thinking like on Barr Chair the specifics touched yourself specifics, ratios, new give capital insights capital they're amount today? some what proposal. where are, color don't proposal on your original Jeremy, at Vice and as current are fall your on will have requirements looks of are How III? fair it us look any healthy. that? to the for much guys Do Can

there I that said because goes we're involved. excess, it are is other XX will more Barr that more. [indiscernible] than Yes. assuming total to XX be the When at factors revenues But speech that

you just the excess Now I to view, and numbers. see would but be it capital. In more, we'll it is the would my it final what minimum give wait is,

But bit Gerard, maybe to give of you color. a

everyone actually in the obviously, an really lot a to was to for But that end, speech. speech. this yes, So of It lot important attention details a the just we the paid need matter because stuff. see proposal

what talk we hoping our process part was focus see to is that the coming the which proposed, And you originally relative true, about that so so and as down the to obviously proposal is on can requirements speech. detail continue of advocating appropriate. note I

original to thought what progress we do what saying you, felt know But a obviously to I like this strongly careful more capital the that, position requirements just I if fall before that's think be not you came was dramatically we than than out, of proposal it bit into so proposal our remind higher the reasonable. our were, need was anyone prevailing is trap then anything, needed. little because would already that And that

the long way do work right, amount And it need go a has which holistically. to been I that importantly, right get and got Jamie our it of we've to position, here. consistently, articulating they very is So think

RWA, CCAR. G-SIB, just not RWA, it's it's it's it's So SCB, it's

So [indiscernible] really what we feel strong.

with they it economy, where to bit If go what thought lending does We think things they that, up, had we'll just and should right I that. too. little want real just fine and numbers done like a thought of be and the about diligence and cost benefit, the real be justified. to to be with it done pushes

actual So what's the going we're waiting the all to detail see difference. anxiously because that's to make

cash moment you good. direct marketable risk-weighted and $X.X Very trillion. your your loan then in this comments your it put of a trillion. Average in a a of current view in about excess look lending, ago basis, as on presentation, course, asset capital $X.X follow-up, And you securities at is

might you years X dust to When for about capital everything basis? a where are. the Can the you I'm relative requirements you next talking know or -- mix loans, asset the is you your now on that -- considered capital with but frame I be going your X are over loans, the when know excess more settles, grow an levering what us, up you're mix. to can

want doing do our We fine. Absolutely good it outcome grows we're business. business. positively not. balance an good If to of [indiscernible] sheet,

the And it lot what I says, in you're right? capital, end, think, depends it's organically. of an loans to a talking relationship are do good include to as the overall it loans a think where Jamie ideally on loans almost that of about, standalone well deploy could loans basis going I of that. on we're as that And we're part So type grow getting as revenue other that part as Gerard, franchise like are

I there think to we've strategy as it day. it So as I against like deployed be a a of it's the product. capital for always had. same wouldn't of think that would But rainy it's excess particular

against we'll a does, the it deteriorate stock be not, it there'll franchise it. hope deploy return if Let's environment And doesn't lot. we'll opportunities the client against to be hopefully if and ready. But the or

O'Connor line the Our Bank. Matt next question of comes with Deutsche from

and in but growth loan I mean, drive some terms rates of the signs beginning pickup these was pipelines? and in one the any pipelines. and lower had just banking investment of we obviously, conversion to early, borrowing of it's cut of this again, of more banking in So conversion interest a supposed

couple frankly, no, I generally minor would a exceptions. of Matt, with say,

So in a to quarter was DCM as to the of that I to closing acceleration Investment mentioned, the degree, as, in it's probably some I the of fees say Banking outperformance think the some by fair late driven meaningful driven transactions. M&A as well degree, by

that levels deals our CFOs seeing think by the are of of and treasurers in are that some driven do sort deals jumping outperformance often is And I improvement in in And that and those. of those types DCM market that aren't pipeline. on opportunistic

a consequence of cuts. little of a that's the that, possible it's So

multi-family in applications, think of But mentioned there were some we more I But might example, I very in see, heavily tiny these bit a be and activity priced, pickup right? pickup did there. business, mortgage hints refi of for cuts lending our

long for a has time. been curve The inverted

large So expected. this is degree, to a

it's -- should you we're to reactions, seeing. immediate not that me not dramatic and not expect I'm that's So obvious really what

are In open. the debt quite and markets, are rates wide markets down, came spreads low

late today. it to kind advantage not ongoing may So taking makes of people of Those prevail, year. that conditions sense next conditions

growth break in X%, And QQ. to year-over-year, and XQ know a of spend then that flat up had debit card you credit I XQ. lot you specifically nice there's the guys out, seasonality

either quarter? up later think I mix in the slowdown the any spend, in changes X%. last of a or consumer seeing kind year, it the was about signs are you But some of

So happened say think is become there about I because it's what's that boring to what is bit consumer sense a in is little spend a normal.

last about talk [indiscernible] getting one the sense meaning -- makes But think pandemic. I point time. So where I to mean the to we're maybe

cruises of was into One to lot, heavy as hadn't out you of booked a they and whatever. going dinner T&E done things had traveling, did that that people a and before, they lot everyone that was the rotation

the spike into So big now had and big rotation the T&E, normalized. that's discretionary in you spending,

a down normalization. a environment. rotation much the would And is actually of it discretionary and for we the ready that worse But getting you normally see that hatches of into given from, out what consumers think levels as started like it nondiscretionary be sign battening

in for weakening, seeing not we're data, spending. that inside retail And example,

overall, that see of economically. kind always footing of as consistent landing a one solid narrative and scenarios. But with central current as on sort we many and is of with solid labor new obviously, being the patterns point the case scenario strong other the are and we that's the market and So the consistent scenario, there consumer spending out,

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

talking time you Jamie, about on I comment Davos, you're year than other more think your government op-ed, this X, And I've August government. Washington seen in any Post, career.

was you do. or bank [indiscernible] think would question it last which were this you're then allowed. week is in my under And on love I I leave for government what was, Bloomberg, merger you now, August, what your should service? week I answer asked, be circumstances saying

it. get We

more on thinking? that what numerous than be based would now you circumstances comments your It What's seems likely to do, love you'd You that like what on past you've government you the made. just right, consider the go but Is service? wrong? in

is I at world. this we the my so get Mike, patriot. a today, world whole and think country very and is important you I American it's if is get wrong. the I've -- important And look it always been more the my right for things -- company that important, think that to geopolitical government

I'm So just talking the economy. about not American

try local try our level, help -- and that's policy to grow -- level, state economies and that. like federal at the the the in at international at try We to level job. participate things to we to level, at So the

So do view, try very in a just it's important help job. my in very, that my we I nothing good interest. has my or to changed government opinion, think

you if it? the the by serve were country, open administration asked be would So considering you next to to

that's until chance I make going But that, mean, for am to. I to to We long I out. intend be doing. don't probably have to do I I not doing think me I I people. at and the reserved But be a or always no, we're of do. promise guarantee I'll what Board what time nil, the don't right, this I period of I've least almost the almost it. kicks love doing

those question, that you me of leaving. who side worried take the for flip are Let about

what I couple years, you're we're side other saying of the part you're is calls the these of think on that's question And is, The saying. the stock think -- I last overvalued.

is all are stock overvalued, therefore, You're stocks saying overvalued. the and market

high share on on call, hand, highlighted And the gains, one tech, this returns, AI, capital. high market you

way, do more might your think you your relates especially buybacks, stock tech-oriented when progress a in you and to your as it to do So category opposed price the school put your think to school valuing old some as model more the new ability about value, firms, for that model in an about you thinking you're with AI?

very Well, about an stock, exceptional these thinking exuberant think the point, good buy which [indiscernible] I'm valuations tech and point listen, price exceptional when you're very will inflated valuations even the we or you values. not that is I but company, making might have any a franchises

so in And patient just I'm we're -- quite just that.

to I right us judge thing And time always about think done going have over remember, do the we've enough. can you're it. And we to

We skeptic haven't really -- lost would And be buy the we'll that money. be I at It didn't if I go up, got stock much away. The just the prices. time is long happening. way It's runs about sitting real in to higher you've store. only

question from from next Bank Ebrahim Our comes Poonawala America. of

just guess wanted I I follow up. to

You about credit bank private talked to and disruption lending. the

that risk? lot on hearing FIC to of on area if we've likes fixed side firm Another income traditional compete market for about Street disrupting potentially sort makers a you activity? beyond is would is real opportunity actually a making Is and there an I the of appreciate can other like a private [indiscernible] market been the venue And JPMorgan [indiscernible].

extends that space environment operate Ebrahim, environment. as way limited an to frame traditional businesses that in financial as would -- in I the always that a isn't all and or banks competitive to Yes, the reality institutions. like emphasized we've our And applies consumer extremely fintechs. not against we that competitive to in It competing but is a of risk,

increasingly extending to. And that firms types referring in to you're is some obviously it the of market-making space, of the

also you we've in credit example, Now the that private for the clients. many those firms are discussed that's same type And see, cases, of before. that dynamic space

ecosystem question that So there's changing. the is no

competitors. You've got new

in got structure, sure new with You've are compete and that making as we business, in the we and innovating all And adjusting all and the any traditional changes ways dynamics. ways. new market

some of the being kind to regulations impact capital it's a various liquidity is are robust our come from well when that on that that. made inside in And Of capital course, hinders time end activities the one we've ecosystem, world, unregulated to long a in was arguments contract the view some the capital which sorts. there U.S. bank its which you do there for to ability the perimeter. were ways the current And of going worked is back markets of the participation of where regulatory

you change of a makers is world structure regulations, that. meaningful where that more pushed and we've want a untested, why of would that And unclear market And gets cautioned that more that bank and to activity is outside the it's the of of that's the well if meantime, But compete the of in the the our it constraints be set. given adjust to and going and best to we're current intentional should studied. intent rule ability,

making so remains private little bit develops. positioned In and create be that, making, buyers is add, with that a markets, people that, more how are There about in in just both well the to talking some things some liquidity, you to for seen and that Can liquidity. private of market because sides that, in active we're ways, valuation, too, markets. need I sellers

have hasn't when time we're competition, that But be the comes. -- yet. So developed may but not we there we'll

And the markets. second one is public the

And seen bit. reports a that's think have do corporate dealer hampered I little You both about treasuries. and inventories,

for But for market the people of just their [indiscernible] of trading a clients, sides both other remember in for we again, a account. different little are -- so treasuries. some do than markets clients, we large both And makers credit the own and

competition do they're to we're from there. both so it. but our standpoint, And We're going

if more returns would deploy deploy lower to And capital we going want. clients. to to it We're we do capital had even service at more we really

So conscious very it of we're the competition both with on sides.

here years talking business As that. electronification up and Jeremy of the about XX we ago, keep the said, sat we can with

we have. far, so And

at Got one. at you it. of saw And of We the QT stopping end quick September. Jeremy, one repo just And market some point. the mentioned sort spike

QT your QT quickly should -- [indiscernible]? you do liquidity actually or as How how us stop give market some have and shock year-end. we Fed of to the risk prevent Just view into recalibrate a move perspective on on

is some a saw that's that that, approaching think is as speculated traditional we market the is and probably requirements the you've that recognizing there comfortable that evolution measures. more of the and maybe reserves out of level of been about higher lowest the firms' number driven liquidity that Ebrahim. kind by opposed argument heavily end to it's good at like words, question that question, the indication an of of other answered was this spike repo I in Yes, But own the quarter your

And regulatory it's at look reason is the of the events think springs when side ago. in more X to response another the holistically important frame point we why whole just about

there You into it relatively and those hikes, those minor. more some about deploy albeit readiness isn't why disruptions, questions one want of to of this was don't types raises types

increasingly point put to any would the case, add that, consensus when And that's QT weight you But some to announced going all fourth in it should the to at get wound that that to that be maybe the in some down. be seems seem together, quarter. notion

So gets in that's point level. a reasons deposit one balances the headwind of it's probably trough residual our through, And was system-wide a final that we the feel deposit we're that that which view removed. for of growth, if play you the at

Yes.

a there, just risk they a want actually I out driven actually couple I'm And not inflationary also do a So JPMorgan. to can things have looking to not risk by QE. because at partially the factors have sure system. of that the It's is you to volatility here.

little sheet already I -- And when constrained banks have the balance bit. mentioned a

Fed time policy can the it you good the fully that, safely, do to happens, will collateralize, trillions of because it think to So And repo every that like deploy the have marketplace, it happens, step providing in is things has time. what banks flexible call very markets. when I a in of all financing every to and dollars that unable cash the

issue every some got in and always that provide they going time if Feds think that market, becomes can policy do people of fluctuation And slightly the forward. more to panic, and I in a kind a environment have comes the inflationary that stuff. there you stop

to got you thoughtful about think I very So this. be

at why particularly we CETX look should things, and all and SLR these this. ECLR they calibrating that's for do think and Now

I'd again. but is I tell happen happen going be can't view to my when, if again. exactly it is doesn't surprised you it So

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

me you Can hear Can me? you hear okay? Hello?

you you. Can us? we hear hear can Yes,

Yes.

Jeremy, going Jamie, for so NII one have, of it. kind Jeremy about revenue, more is Jamie. one about I'm than question your So I the it and to for half care sorry but

of deposit XXXX, the I'm trough for then QT build I that's right? part growth, improvements should the ending when and calculation mean into the But thinking up, it? embed you're know is 'XX, go there, about I in thinking that from we right? outlook. but a it that's embedded in have that for about Is you for NII right? we how And don't number I

goes offsetting it prepared You've to that point about words, the the balances I other right? to factors and the curve. my ones In the back are remarks in now, different in prior right consumer deposit that Yes. point had particular got yield

card got You've revolved.

as balances You've see neutral, later tailwind a the and headwind. could have it been and year. We balances, got now potentially a they in become

is is potential the to of of emphasize but potential that -- of one that for reasons Jamie's the QT, the the potential for reasons tailwind end one And potential potential -- the point. word of one

little You also through obviously dynamics reprice have a fixed little starting bit of to flow rate bit. -- asset asset a the fixed

point annoy a rate bit that is didn't a I Jamie we little do we're fourth emphasized get there more, to a to is reason that quarter previously, I the run implied make to want make which NII, just While than and on for currently chance annualize the it run year. launch which the seen higher what markets presentation, the and take in is it's that point we've consensus NII rate, you significantly it, is which a gives you in you if obviously that a this

cuts [indiscernible] help the of recognize of are quite markets sensitive. the recent to encourage version always I curve, guys and NII liability in NIR. that the would And I'll past that, give offsetting fact models, your number you launch and that number almost the my changes the in what been speech you concise are usual has just to that in is, of historically line with the neutral But that about trying point you

But draw statement about point. It's I conclusions just overall you that helping that balance what the of just can to Again, shouldn't own models, you income wanted your sheet the mean. make should So issue. revenue a sake and tidy change up expectation. geography for

Could And or on so markets? September NII you... in were ex in comments NII total Daniel's

are NII NII Both ex. or core

'XX current XX remains indicated the time number, XX.X, was was an point an the And at ex. asset-sensitive as bit as consensus And number, our albeit consensus, insufficient 'XX NII sequential year-on-year. amount reiterating on for that's was XX. still is The a noted, it again, toppy. NII So see ex little consensus we've which the that, that markets closer, decline maybe of we

then in the that about talk Jamie. quite did we have capital capital And one you for Jamie, Okay. bit store. a already

there you're regard Just acquisitions. are might all the you wanted how about a a depositories as could this portfolios potentially I that's it us we stage? home. you in but at be be of to docket, might on opportunity interested And that acquiring that there's portfolio set to to understand sense give how thinking in front realize using assets with that know for you for looking not out

Yes.

those So things hard always for mean what acquisition. about saying me -- you people I world, assets. and the to our be I things being those the be but want I'm at to question listen I and to it's say credit going if in thinking about market say about [indiscernible] I'm not to my we're looking -- that

What about...

matter capital in to of that That's comes -- want and way, we clients. whole credit spread, deploy help clients, can To more. multiple And That earn asset could deploy we do CIO our other course, to we a have capital different when ways. it stuff. bankers because our if usually

will We more. do probably

capital, do actually And ways deploy housing, But we we're in would can that. to put And we do comfortable? do affordable quite to yes, we can more if ask happy we all time, we more find can [indiscernible]. things be we in

what private about label like And card? credit

stretch. [indiscernible]

private credit the label clients? about would for help card, Is wondering just that something example. that I'm

having No -- But very important. it's chance.

we've team, did. I I I guess we know have issues. management say done the I a While tell private there. label. of me. always second that, been I mean We've lot

different a it is day something thing? that Yes, one is it's and possible possible. But different

I've So no, off. say no we're I world cut changed, me, been it now, [indiscernible] to Marianne to change. Lakes chance. has -- I clearly, would the don't right going there's want Jamie, But

from Our Martinez final come will Saul question with HSBC.

dynamics specific years. want about the next into in 'XX, to deposit -- to ask the your about in to few I'm CCB a over delve not NII but in margin going how volume I did think the

amount X, the a XX basis points. deposit down in pressure seen have of margin, You decent about X

been put positive some have pressure balances margins on consistent levels well they were rates still are that come down above forward deposit has where with curve Deposit now NII. are at going. to the But where when is were

think is margin know reference do are the forward come wrong, point have. and that going the about how down, do likely the dynamics curve guess volumes I So level to the we if that's both I forward be but we with say, rates curve. consistent

expecting And to be, conversely, gain deposits you you volume offsets, of mentioned, share I deposits. quite retail tailwind how become Jeremy, especially in can of a retail a tailwind. bit market guess as much a they are

give sort dynamics really help deposit of So the of sense us a of and -- deposit. drive the value that push the just the pull of

the blocks I laid for question, Thanks already. Saul. building -- out Yes. And Sure. you've the your there think

on deposits paid number deposit number CCB the Just And and betas rate is for the modeling function internal without the simplicity, that. referring that evolves because thing that other a as disclosed the combination to the the answer question your a I'm going that to of try to [indiscernible] the and things. CC of FTP margin just of obviously into is

those saying helpful paid you purposes unsustainably and the at the policy the is when aside these look the roughly for rate And between average see more context firm-wide to deposit you from the factors. other and a set perspective it's weighted So a deposits is while consumer do the I simply and look all the was margin think policy rates that, for evolution simply think defined we've the and at just actually of I the management rate duration that what difference this of rate been paid of high. in

And were internal other. of deposits Either product we to the savings to policy correct see in the mix have through and/or CD were a at going migration, way or was level growth and/or ton going and a reprice see to we lower rate. i.e., the would going to one that checking

market we of now, any as is looking to environment never deposits. moment, needed our the bank pricing context hot chase also reprice of for we sit to money order going what of But which make margin. here at decisions we the retain course, have competition We strategy. given was core the right at to not in So the were at sort in relationships,

have and down that's the coming strategy. now, CD pricing a and result We've we of puts in the from of sit margin we perspective. that, us coming in And leaned to to the CDs policy from It gotten that good a pretty mix, heavily rate a a seems been current position comfortable level now where down. as

We think probably CD the mix has peaked.

not it's going Now down cycle. to it where on to the down, was X back of at realize. go important the thing the That's to way beginning an

creates that equal, else all a little bit So compression. margin of

And should obviously, lower then less a outflow environment that, bit deposits. little that through mean all of there's consumer from yield a

As less lot a yield-seeking seeing we're behavior. I mentioned,

our overlay XXX X/X our So that the growth fact top in of the only at what markets onto of then in small you are that XX% as CCB CCB build-out brand a in function that when share strategy and deposits you is which no share and about part number. mentioned, the long-term

the average be points of basis balance in the normalized So consumer. XX a big seen assemble of annual growth historically, kind tailwind like we've we how margin growth it order of type believe rest grow deposit the share and a and of there's track or from that's of on to opportunity that you at XX

The really if that -- in Other look hot to X.X%. normal business, the money, think if was or banking It's wrong. you if people between you time normal you were what I'm are me were that, after deposit say at period margins X%. happens. forget to correct in than and going Jeremy, [indiscernible] X% abnormal X% going X%

Agree. Absolutely.

helpful. Okay. That's

levels. So it above but still little you're some but a sounds not like you're pressure, dramatically there's that, those above bit

in at like what in time. when We're current don't business stuff very you for share. necessarily could branches over we Management. growing margins & assume comfortable, returns that, good normal very business and Wealth we Banking We all. We're margins. Very market be look build nice And

everyone. Thanks, you. Thank

conference. today's for participating all you Thank in

may and You day. time, of at this disconnect rest great your have a