U.S. Bancorp (USB) 16 Oct 242024 Q3 Earnings call transcript

Hello, and welcome to the U.S. Bancorp Third Quarter 2024 Earnings Conference Call. [Operator Instructions] This call will be recorded and be available for replay beginning today at approximately 10:00 a.m. Central Time. I will now turn the conference call over to George Andersen, Senior Vice President and Director of Investor Relations for U.S. Bancorp.

Stern. good subject CEO, Today, Dolan, will Andy Kedia; and CFO, and our joined President, analyst be Eli, prepared supplemental presentation, and and their our presentation. Chairman Cecere, John of referencing you, a morning, and A I'm everyone. by Gunjan remarks, slide Thank Andy with during copy John the Together CEO; release Terry are to earnings current usbank.com. Please be and note website that and today's on with found call today's statements forward-looking forward-looking Page in can that are schedules Factors file release of at the made risks our uncertainty. our could described on any change press SEC. presentation, reports X our materially on assumptions

Terry, initial John you remarks, and that questions our will any prepared have. Andy, Gunjan take Following

now I Andy. call the will to over turn

and of momentum morning, on by good we for Thanks, share per Slide everyone, net on generated supported positive adjusted billion. of quarter The In third quarter leverage $X.X our strong in with begin fee reported of continued the compared X. George. thank third quarter, total net $X.XX call. earnings I'll revenue you Good several discipline, and the interest diluted basis growth modest, operating initiatives income, year. last which an highlighted expense business was and across joining

this was quarter. Our XX.X% return equity tangible on common

on investment improved in spread proactive more securities our management provide Revenue X. his repricing, Slide strategic well liability actions remarks. from growth on driven actions a detail income will to John as taken by prepared basis loan Turning fixed disciplined more quarter mix, linked favorable portfolio. these and asset continued on as was

relatively XX points will nonperforming capital common of September driven compared increase Tier charge-off of upper accretion. XX.X%, stable XX, At ratio was the from the continued all our with basis late-stage delinquency slide, On quarter, net side metrics second right-hand by levels. earnings the see an were that quarter you ratio and equity assets, last the X

X.X% Our tangible year. quarter book value an and per a higher last share XX.X% to improvement linked $XX.XX, increased than

X Slide performance provides key metrics.

to X quarter, on to expanded to This return The X.XX%. basis margin XX.X% assets efficiency improved points net and X.XX%. interest average ratio our increased

Turning X. to Slide

see many businesses. across of to good continue We momentum fee our

This growth quarter, year-over-year targeted achieved both share gains products activity double-digit wallet underlying and driven we capital commercial by industry investment in verticals. and our across revenue, markets

improved set Additionally, as we fee mortgage in distribution year-over-year good also saw client management market and underlying expanded relationships, product services, of from deepening and growth and we investment revenues payment channels. treasury trust conditions, benefited combination management, a expanded banking and

the Let quarter who'll to provide me forward-looking the as now on as more guidance. turn well detail John call over

Thanks, Andy.

start X, quarter of If I'll trends. a a balance you turn earnings with to by third discussion followed summary sheet Slide

basis, average X.X% decrease deposits total our quarter, relationship-based Average basis. This quarter modest linked on linked-quarter X.X% pricing a $XXX deposits a maintained and billion continue to loans as we decreased $XXX billion, a prioritize totaled on of discipline. to

balances, given low and revolver growth and continued rates we the capital Within headwinds slightly balances was and commercial retail, card continued credit quarter by decline loan improved this Industry drove relatively driven favorable and lower from rates. loan muted, higher paydowns markets-related mix more loan saw remains utilization margins.

billion to income mentioned, and our to growth portfolio restructured on ending profiles. Andy strengthen At investment our our slightly XX, yield for the average capital and our opportunistically an enhance X.XX%. As declined $XXX quarter, investment further the this balance of portfolio portion liquidity to a quarter with we September trajectory interest of net

credit X our highlights Slide quality performance.

stability. macroeconomic expectations reflected develop ongoing to continue line Asset our in and quality with metrics

relatively Late-stage delinquencies flat reduction portfolio, on This reserved loans metrics quarter, linked were which remained appropriately commercial assets other the nonperforming quarter at at nonperforming we slight was to real our estate estate real linked office and ratio in unchanged a X.XX% saw basis XX.X%. and a asset year-over-year. quarter to X.XX% of exposure and versus

Our second level September line expectations. credit in billion X.XX% XX, X.XX%, a points our allowance quarter ratio X with or of our net period-end from of totaled basis of charge-off for X.X% loans. losses $X.X At increased

mix. quarter We to driven expect level. our the term, stable to be ratio loss growth compared relatively the fourth expect third primarily net loan to charge-off balance the loan changes near In reserve quarter remain and with by we

on quarter, Slide rebalancing These per primarily tax summary. tax favorability share, X quarter, the third settlements our the $XXX largely due In were provides and in million actions losses detailed in which or various tax diluted we reported within $XXX securities actions to of net earnings a $X.XX portfolio. offset sales included after more million investment jurisdictions. by

Slide on an equivalent to interest a XX. billion, of Turning linked quarter. totaled basis Net X.X% $X.XX taxable income increase approximately

increased quarter deposit benefited margin interest interest repricing income asset investment disciplined earning combination X basis rates, Both pricing. further and by actions growth margin this supported net and a Our from higher X.XX%. revolve net net and mix portfolio points card of to interest

highlights Noninterest included net related to losses of noninterest our income $X.X portfolio. security activity investment rebalancing totaled income. million billion trends XX $XXX Slide in within mentioned, and as

products. and investment management, banking year-over-year, mortgage Importantly, offerings, good our growth and core trust commercial saw we across business investment including products,

included mortgage As rights. an gain sale on approximately last servicing mortgage of fees quarter's $XX a reminder, banking million

Service the quarter, third our The the charges in XXXX. linked rate run reflected of reflecting business. impact provisioning exiting our ATM now of quarter is for partly X.X% fully decreased exit cash

ago quarter was X.X% for and year-over-year efficiencies Slide primarily to X.X% basis, incentives. a to $X.X was to by of quarter The increase driven higher due benefit or and flat initiatives the identification which Noninterest year quarter Turning higher than linked expense and management XX. by the $XX company. the was prior adjusted. relatively performance-based of compensation a the million adjusted, On employee million operational totaled $XX across as decrease prudent expense, driven expense as billion, lower the

XX. Slide to Turning

from basis equity Our September quarter. as Tier the XX.X% of of ratio common increased X second XX, points XX

to modest the in of we points continued starting near quarter capital accretion term. XX basis intend per repurchase Looking with balance with share to our distributions, capital XX ahead, a

provide now Slide I forward-looking will guidance XX. on

We for income on $X.XX deposits. for of quarter's fourth the This expectation modest this FTE growth relatively and is be our expect billion. to current loan stable quarter QT on more reflective to net guidance an basis impacts continued interest

year $XX.X on Full come range. higher an to end $XX.X income at billion interest billion of basis net XXXX the is expected FTE our in to

we still mid-single-digit lower For likely in total as noninterest range. adjusted, the the growth year, full of the at but income expect end

noninterest be year to as We billion. adjusted expect $XX.X full expense

back hand I'll now it remarks. to for Andy closing

John. Thanks,

of expense unique revenue business differentiated featured which healthy as our and supported income linked-quarter by continued results expansion solid line model, as top momentum quarter resiliency well discipline. steady Third the and year-over-year growth showcase margin

This Day. we and excluding leverage, securities at reported items and quarter, message losses year prior operating our net consistent Investor modest notable with

to that leverage fourth quarter the operating continue expect expanding positive XXXX. in into We will deliver

As integrated become realize modernization, the investment management solutions our will recent rate the model at that payment of digital allow and and our scale, this many capitalize our combination story. spend now and will the to industry-leading we interconnected point important us targets continued industry our team tailwinds, in headwinds deep technology our and inflection objectives on capabilities, and on business benefits of run it be talented

Q&A. We'll their As commitment everyday always, now communities employees by call our shareholders. for the to me close and our open let thanking XX,XXX for clients, over

from first question Scott [Operator Instructions] from Piper Our Siefers comes Sandler.

wanted John, with I NII. to guess, start

so it anticipated? So at can a terms, as in at just of the to have as least better like might recently had what, have coming ended sort ago simple I you it walk even anticipated, or than month your relative what looked Day. came you guess, Investor than through in I mind, you in better up might thought in

Scott. Sure,

say factors would So I there. of a couple

opening see First, we continue and has growing business comments. side revolve to I we of credit X% our of loan remixing on the strength in our in discussed It's great to year-over-year been the see as things. think that the at rate, portfolio, card our

repricing asset fixed continues. Our

we XX other and going the basis -- say know And really just to had is points, deposits. I on the we is would on then the that was our factor cut to price the Fed what ability didn't

power combination in those here helped so of I momentum us nice see quarter. think the third And all and the really things

Perfect. right. for I just if second. switch could to then fees gears All a And Okay.

about Just the implied the chat sort of quarter wanted to fourth number.

into full So billion, more the you back get even if fee best seasonally guide, of you through takes lower think quarter, and like walk one stronger implies the guess you of please? we the of typical would level. just quarter. of I in might sort would typically, year quarters $X.X be that that That get sort of sort the and where all momentum of of sort end to if I Maybe of $X.X in billion see fees reaccelerating the quarter up main fourth puts can doing fourth your near second

Sure.

I -- do in growth XX%. over particular in we so as had quarter. trust, a Commercial quarter, businesses nice in just year-over-year think X% in We quite it of I have Mortgage And think at core we And double different are well. of in X%. or X%. fourth business at was we the -- while had digits at this in opening we strong our So components comments, products discussed things. a it's performing number those came growth payments, expectations the growth

momentum of from there fee kind side. some So all that a leads into standpoint

by there headwinds we've talked side things. mid-single-digit of the us us exiting like in about metrics that's some on prepaid our some things what like some growth and We of our payments. that gets But card -- that business, in fee of course, in ATM other the of have all, and in ATM confidence gives the our all -- the

Your ISI. next Pancari from from Evercore John comes question

securities NII into the color And I in of And could yield? you us would that repositioning the on front? actions cited then quarter further to expectations? do what be further the know sizing bit a expect factored on if quarter. and I you little give the more started and partial you your that the you actions in wanted restructured

John. Thanks, Sure.

so. losses. total total, the there -- I of kind the repositioning, or thinking action, we about all, billion take for we it. in transacted. notional we're that $XX was that is of X-year $XXX million mean, of maybe less is quarter consider you would more importantly did securities terms how But There it's around what the was in payback a or So impact of $XX about of I -- million call in

future, at fourth related our to probably as looking bit, other with think It's feel we a in bit little pickup a constantly fall in advantage good of point -- were as there's anything quarter the able this any these these and an that contemplated that. came or contemplate So the don't but that, guidance in I sorts about anything at like quite we to more the things, this we up to -- have was interest things take transaction. just have we particular opportunity in we about rates don't saw it. And of of We're time.

Okay. All quarter, fourth leverage you'll separately, that the right. then the side, you at and confidence I expressed some And put you pretty that up And Investor in this good believe you well. quarter continued positive implied positive operating see leverage. as expense Day, on operating

can maybe the the Street operating that in XXXX, magnitude a XXX believe year. at at that reasonable I as look get XXXX sense think coming us as term. basis we years. look you of Wanted you you about next of to to that the return you operating on your get points enter your is help thoughts XXX profile is longer at looking leverage As leverage

Thanks, is This John. Andy.

there for saw, provided we leverage QX approximately of in be operating that leverage XX 'XX of and X% the positive would quarter indicate in points expect guidance you John XXXX. operating as it expand continue of from to that reported here. we The would expectation our positive to will north So fourth basis into

X-plus that into think get. guidance forward-looking percent we'll about categories. guidance upon the exactly get as 'XX, We'll as where 'XX give building So the we more we across

Morgan Graseck Your next from Betsy from Stanley. question comes

past, I billion And in is $XX.X XQ, expenses or for Just you in One that the had the until less. indicated been saying you -- the $XX.X follow-up at know on billion. X. guidance

anything change? away take there is ever-so-slight So we from that should very guidance

John. it's Betsy,

into third So our now, where it's the I line of just we're sight quarter. fourth third base Right reflective quarter in very be. the at good think will of complete have was a we what expense the --

just are we particular so And with that more precise number. being

In addition, net our growth saw good we income. in interest

-- of in income. with kind the part so net And was coupled interest it's expense the

quarter. appropriate You'll recall expense $XX.X we of this our side the discussion And the we're higher we on things shifted that. of end our at since is feel billion points like range,

it. Got

helpful. pass that's [ then on on to surprise you No, XX, ] depositor the And you're through earlier, to got Okay. side. the the which rate able discussion

quarters NIM thinking continue catch-up be to a expand next as to? further Or on there asset here, is several the we about should come side rates we're So that as skewing does down? the

Yes.

cuts I positive able we're think deposit that thing sense cuts. a really have broadly speaking, for a the base that's are rate conducive -- in us to we

is deposit We retail, have the XX% with fairly ability, know, rates and XX% in to able as is base we're of you cut our institutional quickly. institutional

And as so particular cycle and the of that the cut, around kind for migrate or is sort area closer XX% that get for XX% call this juncture to just to north I'll beta of continue up that, this through expect to and of to particular we we thing. it,

helpful. be to And so going that's

then over sloping forward as our a other And well. thing help that happen, which I going think curve, implies us should cuts time, in as upward the more trajectory the is,

those that I pieces would to. the X point So are

and And IB that's [ ]? XX%, or total which XX% deposits Right. total on is denominated deposits,

Total yes. IB, deposits, total interest-bearing

Your next question Erika comes UBS. from from Najarian

Just a questions. few follow-up

First, on previous John's question.

you -- having a Erika, hearing you. just Sorry, hard we're time can

Can me better hear you now?

you. Thank better. that's Yes,

Okay.

that. about Sorry

on to John's follow up wanted Just question.

you sold. You you yield can we -- in? could of notional and that Could so what tell of invested was understand the what fourth for average billion mentioned sold $XX the impact was us was what you quarter,

Betsy's And north you XX% just to and be of saw a would you follow-up XX%. terminal said the that beta of a line questioning,

a Do fourth expect path smooth that As it we XX% initial significantly quarter, think you a glide to XX%? it of that from the to beta? accelerate is about sort

Sure.

those in So maybe take pieces. just I'll

first one securities The the on book.

there liquidity that to opportunity profile improve those. different it some securities a I there seasoned well really an to lower couple things. have on as just was think -- to yielding it our as of And reposition was

number a of just it's securities. So different

it's it one just hard summarize to So thing.

increase XX% going the to each forward. side on reason look a of for But just the on And I say institutional things, as would that you're so is the beta beta, cut. gradual that just think terminal a side, or on get I is benefit that we

the in get retail benefit to art side, thing. the of, On I going sort as to retail of past, an kind the kind that you're pricing mentioned of

that CDs spoke as into the that's and money rates on retail, kind so glide path to earlier. the And to going that XX% down as market be come terminal reprice of I

on, stable that said, net And John, you all of that baked for quarter... all -- into all projection interest or your spot which income flat is is

That's exactly, right. Yes.

this question And Got sort broader it. my second is for you, of and is Andy, question. a

very call. investor wondering the a this was comprehensive this and if Day, followed think stock sort I'm hosted least And than I You could from as probably think less to readdress feedback desired. through investors, on the at Investor about I of reception the you it as

you're third You some And the seem the comments on determined Maybe negative. on be have would showed as and on positive a operating 'XX. The you're to you a us Southeast was leverage. would on that growth also hit quick bit expansion loan yet potential notes quickly more be hasn't What now allow on in aggressive billion authority? capital building more you a come place back. $X little acting where

I'll So them in take pieces, Erika.

quarter operating thought that of leverage into on point the fourth hitting talked And team part 'XX. I And of in that and growth to started -- expenses, was we I and terrific analyst is Investor first in expand the controlled the all, execution. articulating about, part that And what and So the wants all delivering did the execution. the on on strategy strategy job we community as operating quarter revenue inflection Day. interconnectiveness I the investor expect which And stronger a discussion given at and is businesses, community we're said, think the of those. examples this of

going that. So on to we're deliver

is aspects given that with the focused going And right we talked M&A this I'm regard that and those organic not on Gunjan us. the some not is priority large on. to Secondly, of ask are M&A to we're -- for about. a key growth of now. just to What highlight the environment, bank That's something her environment, just components focused

As is we on interconnectivity our relationships, opportunities Andy very product those against our enhancing reach. executing our Investor shared very said, do during as organic deepening and we much priorities, meaningful have in attention client portfolio. And Day, the growth our broadening our

on positive focused that very meaningful delivering are We the leverage operating execution and with it. goes

our digital Southeast our We our have capabilities. in distribution is capabilities optimized partnerships via on digital our investments very much our focused and and expansion

finally, then and articulated some modest last to question in with into expect would level we here regard we buybacks his on to Thanks, as Gunjan. about go John And capital, comments, your Erika, as talked of we clarity talked the we and some factor build upon about, that on to And as a growth, as is you rules. of Basel capital well. And more expect shortly. have loan would once then key we then III --

given be to XXXX. reminder, under about, threshold, when until X talked again, the targets expect it's we a still that Cat But we not which, all that, we as capital at even crossed would our expected

important starting sort component ahead you're -- first wondering position about But just that increase you're revisions? also think I probably considering a do new their right, are completely Just phase than there investors I immediately you an quarter. wanting already regional you of it's U.S. the guess of Bank. in has. understand the buy are as Basel to that Or just up Basel wondering, of AOCI, III I guess of to III think than bank, you to of the much, on are everybody's a shouldn't I'm to -- set prudent ratings the in had not end that, more terms aggressive be impact game other put what that in in it's agency? a whatever back constituent impact follow just -- long-only actually I -- of in and

final All in are rules, agencies, Yes. in about all thinking. those are the accretion confident those the factors, factors you our growth, talked our rating constituencies very we're Loan capital but ability.

very level and XX XX saw We're back determine we'll to as judge buy those the -- which and about. you the well our distribute we're We've as talked start to articulated and given continue with capital all to position, to points. comfortable this XX. As quarter, basis time you comfortable with over very of factors ability

Wells Fargo Mike next from question Mayo Your comes Securities. from

First a cleanup question.

in buying that interested you prior are to play Southeast? So bank of following up the just question. a Because lot the got a in

No.

a even Not small bank?

right Mike, not much have the conducive. too to the our and want efforts organic focus uncertainty environment now just all don't so on much There's is I for when on that growth front. opportunity M&A, we

know, So front be you you important And of role, in uncertain that our against what us the prioritize Mike, our a to right more the to in far opportunities place organic focus this now. M&A as right have good would efforts. set you is so is just are now more tangible And that growth do environment much and opportunity you. not

Okay.

main And being here revenues? is it's this at get the U.S. which some in a operating shelf the on much likes benefit Bancorp. said banks Day. these they run compete do off things expenses So And and much with a X, the player? Investor versus the as of the is scale lot back from rate say X, buy your of smaller years, question of more goes how to Because just the you can investments how in leverage, my expense side, last all you

So that's the expense question.

ahead? go-to-market Gunjan, And of see of that to more revenue strategy? Or do the I the strategy seeing go-to-market the results is, question you're of we know meeting are that what kind expect stage now? then results we And

So add Mike, will start Gunjan and on. I'll then

question, answer I I think would both components. on about think it your to

increased think and revenue managed going I be it's to growth expenses. both

the So we some revenue from I expenses as going and and talked we're have as go time. about, were jaws revenue have widening expense those growing expect levels, increase but this flattish growing would we to next might we revenue year, We modest differential. above into not

her be Gunjan by on, the I'll comment. and activities let revenue will The driven spokes that

is final go-to-market in year its transformation. third and of The our

a with in see the to quarter. out the to side. downgrade clients capital in momentum from We're our manage lot of our of benefited some deepening areas the the lot seeing We on like beginning built we're markets We deposit. results and this We've institutional that with So relationships saw this of capabilities cycle. a the growth deposit that consumer pricing. multi-serve over

So the a model scaled leverage, of impact is good positive delivering operating good management. business expense including

would we what standpoint. from on continue is organic this focus to growth So an

Your next comes from Capital Markets. Cassidy RBC from question Gerard

loan-to-deposit institutional added think, have cycles. deposits think . come are classes, is ratio the on yourselves deposit can the share for to going talked us cost they John, industry now those you not you're in you that some Do But the the you lower do and at that? other from, obviously, on priced? in about previous that like ratios rates as pricing, down give deposit you lowering because the are the deposits quickly. as So you can index loan-to-deposit the XX% high -- I essentially, in or with something the aside think leverage to flexibility

Sure, Gerard.

and say holistically making were driver deposits. would is mix a that they're loan-to-deposit loans right don't we deposits just clients, I this target flat obviously quarter, necessary going we is loans. growth of ratios. or What where our surveying And of look at the And to not we have slightly. just loan be of overall to sure at So down

some higher at were deposits that and we that so you down results opportunity bring to the this side, took in saw cost here. And a

that. that continues, growth deposit take expect would have I continue to to to going if suffice continues we're up, sure base be making the that. that And to Conversely, we so loan

manage try interest as well. profile as liquidity well needs risk is always our we rate as thing to around other that The

relates that. of as nature kind to holistic it's So a more it of

upon you peers, one organic regional into or organic part how strategy, with have? good. branches or some done view country, your of X Gunjan, banks new us Very combined a particular, the with branch reach then build-out banks have your bigger Andy have course, the share across Can embarked guys super of your that, even do strategy, for on And -- as maybe growth territories, the digital out you of ongoing well. as newer you this in

start here. I'll Maybe

client drives we critical brand business in We And see So very our first, very our branch. relationships to around the are recognition. anchored strategy. are the investing steady really branches branch It network. deep in

deliver strategy areas Our built the density footprint than allow highest It's good markets. with us focus current we combining other very reach in services partners to is are our use have reason we partnerships create is powerful very way a and And growth areas strong our to have. out into client to within recognition the footprint. that for nationally, our It's of that in capital-light where and that other branches of our rather expand combination. capabilities brand a expanding have digital that some don't that strong we with

expand where growing Second centers not reach. in is areas we we There, institutional actually to our side. are the are national businesses client our from

branch see you'll to our enabling network, within them, inside, both digitally current invest So footprint. us our in continue but

next comes Juneja from question Your from JPMorgan. Vivek

and a bit Just that. wanted into on payments little understand to delve

will last your quarter. trucking talked tough see really year, of related this this didn't comps because that in fees we lap last You but be about quarter the benefit lapping with corporate payments your quarter

will color what's that on quarters? why delayed, really delay? be confidence on up it terms and has going what have So that So any it gives you of anything actually merchant materialize pick in there we payments And seen fee year-on-year to caused coming the in the growth? nor

Sure.

aftermath And lap stronger. third see quarter, So Saw will into in there confidence in this the think core quarter's the do that the that that, the would and from end the payments really corporate expect Vivek, giving to being fourth the the level grow of here that's by us what's you saw from spend side momentum some that little that at start completely a but we quarter, perspective. nice I we saying on a results here quarter the and was freight quarter. third fourth still then I in

of relationships. which in growth beginning are unique post Where many I'll the categories by John, some partially a of core and expectation Maybe, others was it as point sticky payments the is well. good in and payments. Freight just very payments. on the to there the disrupted some with normalize, enduring of add them, little is one relationship, really long-term do see client COVID just mix creates for offset items. They are is We

confidence to you the is value look that at and the core that over question continue long-term we So asked and look see the dynamics time. at improve client we you'll

another follow-up piqued question, response in one John, earlier your of just comment for interest. have your I John. just to my

-- expenses You said Is income net that. expenses drive growing that were interest incentive not else any to when up income up is because something on tied net there you would really get comp color interest was Or up. income? there net interest up? That's

I the of have at in What very is fourth level. linkage. quarter, expense there's getting in sight we what line Vivek, Yes, a we're was no, good no our

our had that higher a in net up to So I -- is more was compensation comparing higher comparison. was our sense. we're with no being precise in from range. of making perspective I just and end interest that that There's linkage just it. really the has income gone a

short So we're being is just more precise answer. the

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

USB? I how fees, to And right the talk appreciate from first and can talking picking maybe differentiator a terms much in how But mid-single fee see in on up? of growth next loan accelerating for that growth linkage you're is 'XX digits muted year? just even the one into now. fairly question being we this of better half, if momentum dependent that much us fee Or I first about not guess happen loan or revenue where on of loan the is momentum demand of

market a Day, performance. loan being benefited, Sure. we space. range talked from and you saw mid-single that, a from metric We And is our capital quarter being growth businesses. what in financial terms more this at which think of digits commercial benefit that example From good in has of Investor course, done I about see products look the in of our particularly

ATM we've space. start see gone. have is new the just also Mortgage continues -- lap -- exiting grown in in is the to capabilities to part rates, and service a markets, that course. to new that Corporate charges tied that as think XXXX. of trust strong will The to is products, But that business has as starting and about continuing we growth in growth provide very nice be

And develop. that so to continues

the Gunjan good momentum have side the about house. payments there, We of and talked just

all of that terms think in those I we the of lot standpoint. confidence so it of And think a that put on things gives us mid-single-digit together really medium-term growth

Ebrahim, do diversified have beautifully that mix. just add I a would very fee we

So lot impacting some loan we strong. otherwise very year and the seeing too, to businesses to good are capital right markets are of our well a growth markets growth. seeing now, strong, that's capital are very But stock in a very because extent, markets

benefit services that. Our investment businesses from

And momentum. changes, the of then rate mortgage as sort we to have expect environment would

depending really, next macroeconomic off because environments. any year, other, of diversified we it's as different play mix So go each thing, into on the the it but one they isn't

probably of cadence a getting lift any with John. That's it half helpful. from point. think ex NIM couple expansion, point about Should I $XX repricing? book restructuring be we forward the at of back we could in basis is the how I one should mentioned we think X million And book follow-up, as a points bond When NIM at NIM conceivable we the the look bond as expect the I this restructuring, the more Like that from back kind that's next year? expansion guess X% actions? X rate X you move basis of And your better basis the year, cuts

Sure.

a of go the to to just offsetting. expect, be quarter, income a points. we thinking and expect earning have couple assets and going prepricing liability relative largely we maybe net just interest of repricing From off to standpoint, fourth to flat, those are in about So be asset are stability and our relatively our going that's

the quarter. we think the how about of kind that's So in component stability fourth

on and deposits, observed, then ability And purposes, our as is, intents the our I in deposit rotation all side I've of remixing mentioned, continuing is about institutional Beyond the complete. then the as parts reprice in slowing our on have momentum portfolio, and you of assets all talked ultimately that, the into return that on terms retail and terms of side. higher for positive down to

and to growth that's continued all so expansion. And conducive

when a -- to but good during exactly within level think you put about. that it's to X% frame time a provided And Day. embedded can't we that's occurs, on it's medium-term guidance I Investor our obviously,

next Cat X And I Day Is last Andy, in which on you crossing you way -- think one, maybe about think any that as this -- I 'XX mentioned becoming the a constraint one of the Just bank. and pursuing because billion on the of you loan a is mentioned growth? guess, Like Investor asset -- on is do you're year growth loan address you number? pursuing you any you believe if eye an USB kind to the $XXX there don't on -- disadvantaged reason have that, -- mind.

with function average. the way No, demand our have of it growth. constraint The that you're a the quarters data on reminder, loan and in is Ebrahim, on and is consistent seeing. HA right as the billion again, now X there's are And you more no market for works loan that at constraints we overall $XXX no activity growth. And growth a loan

think we So impact. 'XX, of when X quarters about that's

So assets no our we sheet. balance or constraints our have on

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next from Bank. O'Connor Deutsche question from Matt comes Your

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smooth just -- has careful And that as plan have time a we and just to shared, Shailesh enough us to we reiterate what long transition. time. a grateful transition given very Very

other? point but on it the trying it way before. of of are guess the you you like really fairly path open that lead from or in or you fresh look changes might you you look but to way long-term a that payments? And and and haven't is size for then maybe a one to just view, are an like some decent a really kind leading strategic have to this strategic other, the be seems opportunity I set Again, Or one take potentially, not opportunities question,

Thank you, Matt.

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[Operator Mike next Instructions] Fargo from question Wells from Your Securities. Mayo comes

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you. questions back further at Mr. Andersen, this no I turn to the over are time. There call

you Please disconnect and department contact you, Relations follow-up if morning. our the Thank the this everyone joined Eli, any Investor to may who thanks have questions. call. call now you

This conference Thank you. today's concludes call.

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