Bank of America (BAC) 17 Oct 222022 Q3 Earnings call transcript

Good day, everyone, and welcome to today's Bank of America Earnings Announcement. At this time, all participants are in a listen-only mode. Please note, this call may be recorded, and I'll be standing by if you should need any assistance. It is now my pleasure to turn today's program over to Lee McEntire. Please go ahead.

Kathrin. you, Thank Good morning. a had weekend. everyone good hope I Welcome, you quarter results. joining call the third our review to Thank for I also documents released hope our earlier review everyone this had a morning. to chance earnings

Brian Alastair for the call, our call ask the available, then earnings our including website. As the section over some CEO, on to cover and will first I'm I'll always, during presentation to going Investor they're to that opening CFO, to comments, refer and details Borthwick, of the Moynihan, bankofamerica.com the of Relations Brian Alastair the turn the quarter.

the to during we measures and Before call I you forward-looking to remind refer I'll the that call. turn make statements, some over Brian, financial just non-GAAP may

the they cause to that to detailed Forward-looking the uncertainties. Factors be financial results are are actual in the non-GAAP and and website. statements from docs. and available based assumptions, about subject our management's filings in are our risks expectations may in on on found GAAP, SEC materially U.S. are current the to earnings materials differ expectations website on that materials available are Information earnings and that reconciliations can and including measures, also

Brian. So Thank turn to it with that, over you I'll you,

impacted us. and Good areas thoughts our start to recent their morning, from the I the families. the for and teammates thank by you especially joining storms, impacted to want sending our devastation of

in the Our teams areas. associates assisting impacted and busy remain clients those

to going we're Slide of So on X earnings the start materials.

our also with quarter operating back reported quarter five-year by significant The leverage. segment highlights coupled increase us customer grew net X% or per was business pandemic. activity. We were $X.XX Bank straight delivered revenue of the run a income takes income. before of again America our organic delivered good We marked diluted in This interest this This to billion $X.X once This Every operating net in quarter, leverage. year-over-year. share. fifth

a And to a basis requirements. its The ratio net our remains reflect equity new year. our EPS a XXXX. grew Pretax as basis and however, adapted several XX to net above reserve same quarter metrics, income and build a a XX common decline or teams improved second we At moving XX well the release the as addition, produced year-over-year. tier asset prior versus from points a basis X last XX%, our and comparisons minimums. XX% capital ROTCE income return perspective, from nearly point strong reserve year reported time, other In CETX by current points ratio From result, in fact, improved quality the pre-provision XX% charge-offs ROA.

litigation, Our to XX%. would efficiency up the ratio XX%. quarter dropped been it Taking this have

to and So operate An investing technology currently had than about way even in we XXXX, in the of Bank operational plan, marketing think and physical and easy we years drive excellence. to continues while ago. with is this America team people people seven less

was an X.X as Consumer added plus checking funded we finding business. financial credit centers experience the Let's resources renovated us Slide go continually alone, accounts. organic XXX,XXX our the teammates, look as net the at have several X. billion This investment month. added we growth. and become It XX% years since interaction centers million growth than new in occurred fully you primary XXX We Those and has Erica convenient than new allowed users customers for our had people, surpassed third increasingly tools interactions more by were Digital access quarter. accounts of XXX,XXX million. responsible billion a Customers with it to as year-over-year quarter past our introduced and X sales cleared new drive more enhance users third XX clients to well we past and accounts. those our quarter, investments our over fuel X method us. are grew billion In our consumer card teammates ago the a added for X quarter interactions reopened as four digital, our customer increase. continued years Logins in this our per alone. We to and to sales, When even selling. million financial new quarter XX% this in also

usual. more I Now the we XX once these statistics importance earnings material measures compare competitive digital find favorably time, of the added our highlights of numbers. look to we every Consumer. and high-touch all publish wealth see not when see In can those XXX management both of lines actually we their million of quarter. statistics our customers financial visit quarter. This approach. one at having that in same people They for the encourage business, and again, you because you business, just appendix in as high-tech this At the the advisors center

and Our digitally. year-to-date. XX% in Bank areas. new investments consumer business our of net Merrill Merrill XX% with more flows of That new the the customers GWIM combined of are households $XXX solid digitally billion client Private advisors are saw X,XXX accounts active. nearly the our net despite has markets. added flows turbulence seen than We of open

to banking as see activity in the investments well area. as products continue increased We this in both

also and success loan saw GWIM pretax choppy average operating even a pre-provision leverage of saw record opened in record consecutive platform. banking growth, revenue, delivered The our its grew of differentiates business accounts. growth. The quarter capabilities XXth quarter, markets. GWIM a This bank number and

quarter. As we ending loan Global turn Banking, down to were balances linked

the this was the of loans sold loans foreign assets, and denominated in decreasing build see that I value levels risk-weighted to earlier. did manage which helped capital our paydowns, about us and area, we offset client However, production talked by solid

team a sales As and we look quarter at in Global performance. Markets, the strong trading had third

performance which past by year. led made had our quarter In fact, of It benefited quarter. was strong in loss XX% over of days since FICC year. third third no the strongest by quarter business, grew We XXXX. the XXXX last investments the in trading the macro this It from was has

resilience Let me customer customer also Bank make the America's using on of continued of highlighted points broad a few the base. activity

So if you going the X, in about some base. overall the what's points health customer look on Slide you can that at demonstrate see

Let points. me a key make couple of

strong to consumers spend First, levels. at continue

for average September remain customer levels. deposit of Consumer Second, multiples at levels XXXX the pre-pandemic

You can see right. that in the lower

X,XXX plenty on borrowing balances as credit rates the Third, capacity credit still there's over basis and are of cards BAC points for and XX% pre-pandemic pre-pandemic payment of levels. levels, both those are card

see and of of America. So last a just XX% analyst to $X.X compared through might thoughts. September factors at Year-to-date would perspicacious wonder inflation, is talk couple in slower here in trillion spending, Bank of spending of a growth. We recession don't other fructify A year. whether up spending

trend in see Second, as the across look of you spending. period, year-over-year you can the

year-over-year just up spending slowed year As XX%, the strong the spending decline that has the early single spending strength we growth or shows weeks rate, growth in first entered pretty digits quarters. strong. isn't consistently. And XX%. is XX% as a pace, two growing that notable pandemic, and but was of that is that bit transactions driving recover at while It’s click still still inflation are a across from September faster we year-to-date still in year-over-year and October show the saw grow And just the you which

in and entertainment. and You'll experiences toward goods services, of particularly also travel retail note on continued the the growth bottom left,

high strengthen fuel impacting at stabilize. healthy Consumer spend periods, did quarter X, pre-pandemic liquidity of at and our suggest show level unchanged are to as we in balances On these Slide volatility the of strong. quarter, On levels September. it month of to year they liquidity capacity balances you remains level of not While deposit multiples ago. levels the of were -- as amounts remained the currently levels. resiliency. customer we a is a levels customer price the for stats some about elevated this continues, deposit still other customer largely prices last These Average relative These continued at

delinquencies off what card they and a our are remain XX early-stage As well delinquencies. see day lows delinquencies. quality lows, in are you strong asset late-stage the even see, levels. XX% can before seeing Keep or move below gradual levels. at you metrics were to just pre-pandemic XX pandemic. these is look page, you this still delinquencies, Late-stage all we're card below pre-pandemic and These now decades-old whether mind, On early

leading If points, XXX were the you years compare a five of average period up averages them basis and growth the for to past and against the XX respectively. those pandemic, falling, basis unemployment points

XX% to So and a ratio or more that delinquencies average of the approach economic than growth even to five-year at of falling worse time be unemployment. pre-pandemic current have

resilient. consumers So remain

to you Let I'll me quickly minutes turn a the talk to couple about and sheet, balance over to take Alastair. it of

optimization, we we by movements what did balanced about good where increased loan on look was billion balance can and seeing our took As $X and and foreign helped billion business, production like base have of without by saw or our growth value balances looking loan discussion we about you On driven products led think with the reopening offset annualized. our outcome, syndication market billion treasuries sheet about centers, RWAs proposition if sale led see for card that policy new preferred modest earlier. or linked activity we expected, high monetary quarter On liquidity or of and Management decline to But a investment where impacts. for to you clients Or -- activity of at we XX% When as $X reflects out drive base, loan you -- negative continued commercial, general, building from seeing deposits, tightens. We new helped noninterest-bearing our rose obviously currency customers. deposit clients the balance and We being in as levels balances consumer loans global interest-bearing was Wealth our from banking the in accounts. moving excess loans levels financial we're and yield see and also talked sweeps I average balances good shift other customer the are by loans, into a relationships. capital steady deposits account brokerage you RWA the offer. we in which the customer of $XX core see transactional of by think

our and to appendix provided in you growth. as portfolio of to them and of to of We in find credit loan other show We illustrate a quarter our the under few responsible to update an slides this and appendix, the updated slides years can recommend you transformation again the the portfolio I quality consumer credit help them those have you.

summary, the resilience that, client With our capital, remains and to I'll We've managed turn quickly customers' well dividend modest health shares. operating bought NII increased We good. well. improved team our either call expenses has activity remains managed responsible sheet also drove in very strong. The and and improved So of our a and amount the growth. over We it balance Alastair. that back leverage.

the you, start to detail you refer And and X Brian. by I'll a adding more income Thank statement Slide on highlights. little

the revenue here see improving a just of made the while our can in the drove decline XX% moment. while NII the investment $XX.X levels and year-over-year fees, X% and a noninterest the conditions. billion And You in benefited NII still and activity some business grew management I'll and On cover in income, market year-over-year, of fees investments volatility asset improvement declined volatile trading market X%. banking with from

lower moved service for charges two Additionally, reasons.

around overdraft XXXX. marking reduction sweeping from Consumer, the June, of a insufficient we completed June changes in in funds and XX% First,

organic for associated of increased insurance litigation. overwhelmed $XX.X monoline Second, management this large gross our as rates corporate clients. services they the credit charges our for Expenses clients our and treasury in performed fees included last billion, legacy remaining that service were quarter declined and with growth settlement earned the

million in October that XXXX billion expense accruals payment we quarter the litigation litigation the would the of resolved below to previous saw $XX As the settlement. above $XXX this settlement outstanding back mark. with cost, of X, recorded on litigation Ambac that without likely a have And expense way dates We announcing you the and that X-K just filed all our all the crisis. financial for been

Okay.

coupled at look $XX billion declined can we'll billion a the and balance $XX X, sheet decline see sheet was That with where you balance by $X.XX and the quarter, trillion. billion $XX a the driven in Slide to deposits move to Let's securities. decline during in

that second idea in much by how was Shareholders' just equity remains Our at the levels. still moves. above of earnings share paid and gross reflecting our to share increased. and the change that give common in in were gross covered million issuances million from liquidity We quarter $XXX quarter has employee $XXX out capital with to liquidity repurchases, bought our shareholders billion rate repurchases, billion $XXX and covered as an in in AOCI declined the We leaving $X.X distributed in our $XXX and impact declined we the billion just At dividends. no offset and in deposits $X.X quarter, increase impact liquidity a the saw decrease two pre-pandemic average the shareholders. the stable billion, loan billion in in AOCI primarily levels, as dilutive for rates, result security ways. of $XXX back portfolio you

had reduction we a a debt was the our First, value in from X.X impacted billion, That change AFS that securities. and of CETX.

AOCI minimum variable put also does a reflects last in our leaves our requirement us capacity balance place loans, TLAC rate not for ratio capital, hedges from ratio of That regulatory our against drove against sheet rates to cash growth requirements. that in derivatives, versus of supplemental plenty impact Second, that remains above X%, and leverage and billion CETX. regard mostly $X.X decline X.X% and still our comfortably some of protected our year increased flow CETX. which With to

Okay.

Let's CETX on go can Slide to about that. X, talk and waterfall we

As where X.X% results, fourth beginning that increased X.X%. ratio stress CCAR increased in the our buffer overall about to from requirement -- quarter. our last to CETX quarter, And our X.X back you'll minimum as we the June of recall XX.X of talked from capital

us Our XX, our XX%. levels we work well of strong billion And capital improved of XX.X% to our That remain points to with compared above by our ratio June basis leaves minimum $XXX us through CETX requirement. new CETX. good XX taking the today teams,

So the drivers through we'll quarter. walk this

improvement. debt earnings, managed basis balance the benefiting protect rate of our generated XX caused And the and XX quarter, and movements this of by because net capital. it's preferred securities AOCI since more points -- this ratio balances of And of remain value portion points billion that basis sheet, treasury the fair since our swap capital. portfolio points from basis AFS XX importantly, that RWA the also of ratio and used First, optimization NII of to our $X.X dividends that while added large rates floating. to mortgage-backed us We for of the down hedge a continuing capital in then points. of CETX movement basis securities lowered we and positioned to decrease, of X movement Dividends well through of float

rose to challenge those loans. increased basis, average So providing we capital on quarter grew a grew year-over-year can loans we've commercial terms consumer see Consumer, feel of well like requirements. as this our X, and teams bit and detail out Within grew X%. XX% Slide credit growth the On XX%. in laid average a at loans And card more loans you looking XX%

flat and by loans quarter. closer saw loan and loan of quarter mentioned. linked loan dollar for then Focusing included 'XX, billion also growth result some annualized loan that as saw syndications XX% the an residential on Partially commercial Adjusting sold growth relatively growth and adjustments while consumer versus second other loan lowered impact the more from demand, we mortgage sales, was and of card FX growth impacts notable quarter of valuations strong sales a to rate. slower we were FX strong consumer good total our growth Brian industry's $X and about on loans. near-term card average the basis, loans, in credit our grew We annualized QX RWAs. led loan growth of that offsetting the two some loans the annualized X% growth, commercial XX% This

XX. up at use X% down The are our trillion. average deposits can Let's deposits And there the on noninterest-bearing X%. are you see now $X.XX X%, up deposits year-over-year are that focus interest-bearing while Slide on

are some of So expect total and are into disciplined overall, we These and activities. deposits important balances understand up we've consumer deposits a while financial growth And our Consumer, seen total to is And in in and these from would In it's grew core rising our noninterest-bearing $X.X the very of of we deposits. now the seen trillion X.XX. rate Fed foundational customers' year-over-year. X% you at on as we've interest-bearing, both remain noninterest-bearing moves. environment, elements funds and shifts interest-bearing makeup

total rewards. their So us and their with in and customers client digital the our through see engagement relationship value capabilities personalized industry-leading

that asset continue. clients linked a sensitivity. and increase? deposits We our Wealth X%. excess as expect into well offer consumer In built rates And those these higher to Management, deposit expect year-over-year. flat deposits it's disciplined saw as the our will less accounts basis, Do to who quarter have than we and rates, clients. that of important expected, to for we outside remain course, deposit is more both historically and again, in where alternatives generally Yes, competitive, lower are by deposits of movements are total moved we On have that and both liquidity understand as

cycle. some more rate as year-over-year flat where can $XX While average we Merrill and deposits, with high environments customer cash typically the some on deposits decline. be those Global Bank we and rising deposits and deposits and inventory basis, ago not in interest-bearing factors. nearly so use little represent deposit manage we pay products are see relationship they're excess last expect Betas their moving as The many last particularly that, the begin in preferred In just X% Fed these Pricing rates. we rates, within rate runoff, the in we're in balances a paying both or favorable and billion been sweeps move to rates to saw is to preferred further point XX%, of of really liquidity to higher X%, billion clients grown on seen would as customer-by-customer if of In by for this largely from other that right cash a our environment, increased early expensive, a we depth cycle, Private and On will too Banking, lower percentage saw the the year-over-year seeing unexpected pass-throughs based a end through a move about cycle. highlighting XX% deposits cycle, now those to XX% hold we we've at $XXX mix this much other brokerage $XX deposits. rapid, total billion. GWIM linked deposits short-term decline we similar paying with are to It's while on the And quarter more of to note, rate shifts within again, higher-tiered platform. the deposit increases last And deposits largely from for to the still platform here. than year-over-year, year be build say have an with cycle. And saw probably pretty mix have at relative we're Bank the of decline to products rate Meanwhile, deposits we'd interest-bearing the XX% line continue yield. a of and the anything trends.

net to million. interest NII On and $XX.X the number in FTE Turning income. and $XX.X XX basis, QX Slide a billion, was GAAP non-FTE NII is

of increased from now, interest interest earned XX by largely $X interest points is was assets balances Year-over-year, recent our income fixed has deposit has $X up pricing, we've improved short-term the of including nearly basis quarter, securities interest the on increased amortization NII driven than by discipline occurred have the that's asset premium net average billion. or from that rate more while amortization billion our additional and of Markets and short-term yield growth. note, on modestly interest quarter. Focusing increased driving Long-term six the year-over-year second that improved day premium of net mortgages our rates, replacement additionally, the XX%, up Global the refinancing lower rates interest driven And the same over on down higher maintained even And in improvement. excluding from our 'XX. was improvement $X.X driving benefits QX billion, and XXX-plus X.XX% factors, third driven loan rates, rate will basis variable plus you securities billion of FTE, basis and of Year-over-year points points, assets, 'XX this an net that on premium interest that's $X.X amortization X.XX% therefore, The rates lower recognized quarter slowing months have most interest benefits as Versus the growth. that from and activities, quarter. yield and portfolio. improving in of loan the past XX quarter. offset mortgage recognition in

NII Looking first, to And couple forward, as make caveats. of I comments. relates to guidance, I'd a couple it a to like make need of

going growth is materialize, Our see the deposit least that than expect guidance QX. changes in rates to billion we balance forward to they assume QX NII that increasing recent we deposit be and market-based interest baked higher and most at modest with modest $X.XX said, in. curve that pricing With loan in

increases put last to $X consecutive in of QX in billion another and a won't So were that for of be thought, NII aggregate $X the QX, you $X.XX or and $X quarter would $X.X total increased refreshing expectation given We're And saying it's around up more. now quarterly see we QX. that just billion in to we QX and billion we QX initially make when billion outperformance, that billion. about we QX told improvement $X together, in and expected $X.X at we billion billion our

XXX point a the basis September of hike by basis. yield the $X.X expected on $X.X now be next sensitivity And rate short forward driven $X.X focusing instantaneous billion with and billion. sensitivity basis, XX on months, XX% asset to billion rates. a declined of Turning would our sensitivity over XX, to roughly spot At to NII

Okay.

expense, Slide for Let's XX turn we'll and to discussion. use the

bring less these with in periods, Without a were flat the matters. the litigation comparative costs in been the associated both were offset resolutions it's for as with nice basis. resolution QX the second And our billion nearly would expenses quarter costs quarter $XX.X to expenses than just Third quarter agreed $XX last billion. on to have and fines settlement to

people, and financial And for digital steady continue us our We our adoption we've and the operational marketing investments the our by increased centers. rates to to process and are by these talked bankers. improvements customers help make in pay allows investments technology, about what

X,XXX. another all of highlights the new Our interns, And our we around our included our closer We less associates release if quarter by for it across by on And and and talented world summer with and That that X,XXX welcomed that. Bank headcount and adjust great actually at than place in from hired our top the lines into various and support headcount people lines the great brand, positions just to America with work. campuses new company a to full-time this and company this benefits our people business of great we of of support business. already quarter is X,XXX. is up X,XXX staff this increased technology X,XXX college to another X,XXX net of those

for land expenses full and we $XX As matters. look we'd includes cost fourth the billion. quarter regulatory obviously expect year second forward, noted approximately and That the our will quarter quarter our third at resolving litigation expense reported

of expense team's to $XX inflationary billion company's the So our environment, growth. same we're modestly little and that, of in at the our the talked about around discipline particularly level investment our more year. in expected earlier the be increasing a future in we we're And expenses than this our proud while without level are time,

release asset start of That saying $XXX asset I of last a charge-offs some and stable to XX, we just prior third the second the with prior QX. very associated the compared to credit loan second discussed quarter. period those the dampened than and Brian were $XXX declined was quarter, card noncore Slide with that macroeconomic was want reflects quarter. build in And net did $XX $XXX driven expense the million outlook. of sale quality our relatively charge-offs in by quality from we was Provision Turning the in loans built reserve mortgage the $XXX and of higher quarter million reserve million period by Absent on growth modest as charge-offs million decline million customers primarily remains The that losses, in good The healthy. period. a net to quarter.

well the modest our as both for can Even supplement. we quality metrics On Slide asset and pre-pandemic improvement we our future, you from portfolios. build of the quarter, begin And to consumer criticized there's reservable see show QX, quality our credit modestly. as this that and declined And saw looking Consumer to we're delinquencies because both delinquencies point I one is our closely early-stage this NPLs Brian earlier, that the slide make, want card Commercial as continue reserves metrics at and only remain watching highlight increase for below levels. as we in delinquencies noted they many XX, to and the

where Sandy, strong level. for amount damages many spent recent financial our we the Harvey the small incorporated businesses, a storms and areas and recent for market analysis to already past days the Hurricane we've impacted down our insurance teams quarter. that reserves And have the analysis like shares and some coverage of of we Ian loan have the just Lastly, into our years where to in incurred other Irma large We our losses. compared assessing

with but result Turning past investments retooling growth we're accounts, the of days, checking and years And a Slide continuously as organic this business. on the doing investing accounts to card of of differently across because not the we've let's in the shared business many earlier, XX. segments, up Consumer XX start picking anything quarter, Banking necessarily got Brian and in the

share. leading deposit retail have We the market

We've and the We're platform our investment capabilities for for important offering convenience online consumer consumer and products. all among leading business positions digital with leadership the have tremendous best small a We business clients. the got of leading bank platform small clients.

was to all-time continued and while now on us quarter leverage of XX% the sixth helping mostly as customer impact Bank and for card Consumer the period, at drive of heavy reserve we quarter offset strong builds $X.X provision increase The consecutive investments growth versus And revenue growth of partially increase future. third the a for that in So earned reserve financial delivered reflected this growth strong of a its results. The in is by satisfaction provision expense. operating highs, an result, release is 'XX. billion good year-over-year organic

remain Our net stable. and low charge-offs

we base for impact capacity. revenue company's down earnings modestly through moves pre-provision investments year-over-year now and year-over-year were the was were benefits including impact the coming related in income opening and business higher that without increased overall $XXX solid fewer by offset satisfaction, million XX% While digital as Consumer were attrition the as of from our associated and the are with policy by Card and wage were charges business in growth, of people, salary along to the which XX% overdraft diverse of revenue, grew Banking the marketing fees. in the from spending the only changes Service improvement revenue customer full And complaint the fuller rewards customer with pretax our to the highlights of increased actions. quarter of lower scale effect calls and Much up benefiting earnings cost end year-over-year, and with the client costs QX. mostly most. increased reserve the costs. of and impact business because absorbed funds modestly insufficient more Expense fully less nuisance benefits lower associated reported now year-over-year our

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X% Our lower in revenue. banking given is than healthy fees, growth coupled more XX% revenue decline the investment leasing with quite

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XX. central monetary as the increase the has tensions policies about markets. efforts. And continued do, our and Slide For hiring in [calling] just over on drive Global talk prospect we changing our of years we'll the and example, segment Markets to to quality Banking, Switching usually strategic Commercial to DVA. results, continued both and equity around in the Inflation, continue banks geopolitical volatility world excluding bond

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[Operator from Global. Seaport Mitchell Instructions] Jim Our today with first question

NII. on just Maybe

betas, I But think there's with a of you you that deposit you're lot pricing. deposit around the be uncertainty catch-up behavior, sensitive. -- asset rate pretty indicated could guys what do still

of how level from about of growing sort kind year? through keep trajectory NII of QX you it Can think do the the So next year? next

Thanks…

Sorry. Assuming forward curve is realized?

Yes. Yes.

we answer believe the really short we So is three for believe reasons. so. that And yes,

be impact. for future still hikes there's The some to their going expect to is, first and rate lag we one

for of example, you'll to for that hikes quarter. this So feel the in QX, late start in some

anticipating loans stage. -- growth pretty still is at good this we're Second,

then So portfolio. our on every opportunity at things an higher opportunity we're of as got our existing come keep off to securities that restrike sheet we've third, the we'll anticipating growing loan rates now side. with balance And

So believe got next pricing each yes, there to of assumptions our we on competitive look, be year. But in the we've deposit NII various grow in we'll segments.

run On rates. XQ

Correct. Yes.

a understanding Okay. AOCI delayed the And start those -- quarter we that are job risk the of there fourth a swaps. those hedging from benefit the then a in Is material follow-up, and My guys as have beyond, is done think you great maybe coming on sort and pretty how AFS swaps book. about?

but that's our the Just going the projected quarter, years, fourth fourth the forward that's to couple little course we the some Those swaps. contributor should ALM had bit own of quarter, over the to quarter, fourth in of and and think way NII floating starting growth pay we a us in next are probably quarter I third the it. in all a most assume the

to Najarian go with We'll next UBS. Erika

I expenses. question just ask wanted about to a

this your year. but expect I year on plus think the upward? catch up about loud expense one these the settlement the how growth next of and you've about on highlighted full the your of closest of stock billion, expenses expense to change $XX third for headcount X% and sort investments various various part clear litigation as budgeting peers relative But is made, Heard X% just that expectation some look the we think hold that we is and will closest as to XXXX. of theses -- investments the investors peer you years that you've for think forward? the still in year inflation quarter, range coming Or not additions

invest to the technology restructuring multiple physical along plant, heavily continue marketing. we all people, dimensions, Erika, So

company we later, so years The has is core the bigger in company people. same I And but through have and seven it excellence, a of than this operational XXXX. has was earlier, yes, discipline -- the said number shown, as lot

by engineering And things eliminate can so we and the from we and technology make work company. that the investments into continue technology we pile the to of the reposition and uses that the back customer enabling money production the work side

think so think we million quarter marketing. quarter there's if I just you 'XX in litigation, of you year-over-year, is that about out don't $XXX year's third million versus And about the take third expenses -- 'XX, increase if this $XXX

in Another huge, over of plant numbers. our on then branches, is time that This quarterly amount chunk is is dollars in top And but technology. annually, is physical million not our -- company. hundred only another that, not change of quarterly, couple all of the

So we feel strong.

giving 'XX We versus 'XX but and you, continue hoping it investing increase up this we're by for will happens. versus pay something year being we go to XX% and investments, expense numbers those technology not

of time. and things period effectiveness. the fructify fruit people period how the all term the that expense help that's that invested and the We managers our in And efficiencies in slot, and near XX,XXX expect time We in I the bring we drive frontline came people to clients. down gave in managers serve take you the headcount to can forward

significant buyback Got is second question activity, it. And Brian. more my on

I see to do I we before you the January think by of activity activity? faster think coming as to certainly than X, you XX.X% Bank that buyback buyback Street manage you expected. And get Or I'm is The CETX that America to XX.X% build need the could heavier CETX wondering, do think XXXX? heavier that build

and grew the quarter we still back So shares capital. bought this

of business the Our job first sheet, the serve our capital especially our balance our in for that market customers company and in is lending order the drive to on helped side. to always growth has

should continue sitting we that buybacks But now so we be are increase. on will what are at sitting supposed above to to remember, expect you And X/X/XXXX.

here. year And is so already next

the So said, obviously, as the over is where buffer bit bit basis different. we trade between building from a [XX] We more, a little now already requirement points the you up are exceeded requirements. to the little

the and growth to put a towards you little little bit We'll rest towards support send we'll bit organic of a the back a buffer. So to the buffer guys. use

go Evercore We'll with ISI. Glenn next to Schorr

in curious, you all market the I'm -- thanks no despite this mitigation, to build capital quarter mentioned volatility. RWA your loss -- you was days as

I sales. So I levered if that do you loans the has know some to some of book. off think don't working loan mentioned

what's about So left to if I mitigation book delivered distribute? wonder in you including that, and RWA forward could talk loan going

going couple them. there. are I to on confuse there's want a that of So things don't

numbers. That talk to first me pushed our do just We marked numbers. it in financing. the about through week. we leverage It's Let every the it

in doing buybacks and a position we're optimization sure customers a to have to investment to a be future. So that's is that's for in company that referring our that was RWA serve to results, was to. as in or don't flexibility they what included. great I are those make Markets banking look Brian at the What in to we're Brian include the the anything doing you referring we place think investment When Global banking.

So did a that some couple did We there. sell things of we loans.

You saw quarters Other. that in in All prior

can the in prior able sell were to loans of You quarters. see legacy some

of billion and $X billion loans $X in Banking. wealth Global sold maybe we and quarter, in consumer This

at in quiet. to make taking of So it's doing optimization And roll treasuries important them are that just the securities plan then not billion is off higher pretty quarter, every for It's the can big, with progress asset. as us risk-weighted like and yield. -- RWA roll a most there's remember, we've but of those XX% $XX different off that replace they been it's areas. And we

here balance production bit the we're a a is RWAs this Global a there. sheet, I'd see and customers little the with brakes And little Markets, numbers, more see bit you'll and but getting So the also thing the the yield growing, little places. the that we're the if And of couple are CDS that. hedging just our you'll say -- way at you lower. balance is bit just loan tapped other are demanding look did sheet on we quarter on still RWAs probably then the of reducing RWA in optimization we And a

there's So $X billion $X there. that RWAs, billion into but a a here, it's goes lot

it all You and a add makes difference. up, it

enough But there. was I I us that. very know about curious, prime just And growth how you touched I consumer super it much you’re related, gave little bank you're appreciate on It awesome. and details. lend, I'm thinking a bit. in you've prime guess, a

that looking could of risk the On commercial I include know book? the approach you're potential don't do you this thought what and how kind at wall we're in commercial side on on? what of side, maturity the given what all you business real buzz the facing of economy, if to take in

the Glenn, where to us we always ourselves last is to look, leads across are. that our growth and responsible teammates decade plus we say what

not like the and quarter, first and team her growth afternoon year, you're Candice fourth to quarter impact. so going anything quarters growth. but And obviously change the do of this this couple the have negative next to negative

change to going not You're your overnight. portfolio

manage across you do how it, limits we is question the have then all different So the So categories. right?

spread the in the of see supplemental can book. You risk

company needing for the is on money see is can anticipate a be had pandemic also what during customer-by-customer nobody Then million did terms our company I'm a of it. we You we in $X part of refinancing, sure loan, of who with in like terms basis it. and revenue just big of single to in operating in with a more look but going quarterly every we that

So book deals, on and the top the as [SNCs] we high. structures cetera. then in measured of a spread et worked of and we client hard, work the book the that, is very We always other versus the it ratings U.S. our things diversity see among cetera, we integrity But selection, third the of against in and underwrite in construct non-U.S., can of et industries who the to we have our Katziff and relatively rated -- that Geoff make end much very test think Christine the quarter, day, of do we frankly, fooling team we with than Greener's make continuously and still downgrades. I to that. had look at we're And at is continue the not we party we that, because credit And have upgrades team sure sure anything review exceeded ourselves. under this

criticized, If down you this at they look went NPLs and quarter reservable both again.

to And horribles that But of years continues XX this credit credit even of perspicacious us of stead improve, seeing we did now, that the book the it's so to head you’ve day. improvement paper good into hold thing. in and to, sort last person lead years, it's every see alluded XX the -- proof but what right though in the over as we because to in trade it we're take a all the wouldn't

from comes question John McDonald next The Research. Autonomous with

about assumptions shift outlook pace the helpful. kind what modest. in growth Alistair, outlook also, maybe the and ask what be your just and building And you're seeing the I of that You into betas just you're you wanted loan to then deposit growth? NII from and mentioned economy, loan your expect would mix around of

I'd we the would obviously. talked digits, loans say high we of about that year slightly loan on the that, be outperformed thought and single side, we've beginning Well, at the

of ways. little in This quarter for was a us reset bit a XX-day some

certainly, in see consumer because card touch. in probably came the growth You that just much a commercial, we just didn't back so held through. And up

a So of we little that mid high think things if maybe bit. resume to begin we'll slow sort single-digit,

competitive because be I the slightly. increasing the resume this And We industry that to we path on So outperform around environment. down. be betas, maybe there's so respect flattish, that in been we've think on. With to obviously, we're we're we've will ever industry our a in those I'd balances, just sort deposits, to of going forecast, got say think we've sense that the got

largely our what's into that's baked So this stage. at assumptions

of securities loan the continue securities flattish this volume run between came to a down terms growth kind off in get And down do amount what the and book fair cash the from deposits, funding there? quarter. portfolio? the Can you flows gap you of And

Yes.

off runs portfolio about offset It an some RWAs. because more some securities securities and that to some quarter. freed actually quarter the some at billion had a gains, we opportunity $XX losses was a this up little sell So

that we took this of So quarter. advantage

$XXX $XX billion that's of we've billion floating. at comes treasury little was got basis, Bank the cash And particular Central in. larger. just that you a an securities so number John, and I stuff on assume then got But to the quarter this mostly of we've another ongoing think should couple that hundred And broadly, of got we swap billion

So pay loans growth ways for the we've got future. lots to of in

the year, the say positive includes low growth, The of billion discussion Okay. would say this with If around kind just clarify could $XX single-digit expense Did year expenses. you I litigation. leverage? next operating Erika you targeting you're

running the it had yes, something how to has quarters to little We'll includes in then. said we'll row. about at this of look yes, the second next quarter stuff [exempts said we you type this still Honestly, core] it. left each XX.X% see had the year year, and the we quarter play over of to of think in year the quarter outs some that bit litigation. the And obligations. stuff a we of terms next X% had point, for off [FICA] if regulatory we in to and think three get the the of But The first rise. a John, when year, at said, at. some Yes, litigation. and I some X% basically back Yes, -- includes ins just have

we're around XXs. low bouncing So

of expect rate to We kind that run hold.

Mayo Wells We'll Fargo. go Mike next to with

users how new margin I'd to employees like and I Slide would bit sustainable. Erica, $X resources to, third on interactions. profit zero. XXX%. not revenues. up additional But like you quarter the detail if for expenses I you more quarter, that add can on is billion into billion, and more mean, From was revenue your you a up digital XX, the Clearly, little sales that's Zelle, revenues second the the tie X

lot. whole equates theoretically, the all employees a growing long what's digitization how How And like you past to efficiency not years is or to headcount Your how over much or level in a that keep this relative the many past? expenses few terminal can going?

I out lot So ratio. little but I'll of sort think, try last. terminal that's a bit. no Mike, a is There questions, efficiency Start with the to

still we that. you're all operational on of other ends GTS and And We working operations keep you the to what and continue Consumer it of company of when on the in work process we the drive on to so side. the dollar Our is out. paper not you digitization commercial the it idea you've in the on work investing Slide that expenses, slides in heavily a working wealth actual seen on some the management lot a is take ratio, on up spend XX see in And can business ratio. the the on

again, not Those you office, platform driving are GCIB numbers, -- investment But get the do. enough, of million years. employees the last I in there's trying we're the and near-term last growth, the grow. programs So interesting And over into to consumer what's huge that's investing this growth them footprint $XXX think especially people obviously teammates there's our big couple has what a bankers. in investment in hiring commercial X,XXX some that's the in year, the -- outside quarter advisor saw to training the financial

operational them is the And major investments frankly, also capabilities that year-over-year, a at investing but drive build go come even though more relationship excellence platform to got and we getting all great we customer units, in, that things service, out so branches of with ensuring numbers those part But dealing branches. of have actually it, management the the on. we've to because we less -- have continue in people we're less

pre-financial work how for going of far the to on We're more goes why management. relationship it out you that's day-to-day and Page crisis. households you XX, checking As the branches know from back which is We And service us a this XXX,XXX-plus don't is. putting record quarter, back a of more said net things. new sort into see

are If at you up. look going small business originations

at there, If you which sales, look services that investment force an investment. sales an merchant -- in was

work need continued continue platform efficient, even out of take over if Scrivener a in it. our operations So more runs then effective combination ahead Tom us money But effective group, to take into out. operations time that. saved the the of them. allows on go can we and back to it's can frankly, they lot a just and to make all the a into stuff driving people just sees be of across more the and he digitization lot Bruce credit of businesses, Thompson us And technology the marketing where back plow we

translate think just the we a makes taking -- of that mobile digital more pocket more of equivalent into get necessarily at it in our about out you And being big consumer XX the that take XX% line you how million of idea you with banking people people are financial centers. now for phone, digitally, this don't replacer if productivity sales turns if you place think almost by consumer difference. different a of a But I sort many it's it Mike, metrics. of if business, look moment, X,XXX

follow-up quick a just then. then And

the NII that expect investors. That the was before, of the you to the continue the benefit next Brian, you Do through case said come quarter. have year? to So to be case benefits this over barreling

at Yes. about deposits, go true That's look you'll you last that there quarter is, overall which the I in the XXX against down years that by it. basis be basis basically them to it -- and basis to cost see continues XX hope the is margins cost extremely stuff on of it the profit last asked and leverageable. from drive way, back basis all to XX% the the we which points, to deposit proved and about one is And points is page quarter. And through of the think XXX thing deck, Mike points, XXX consumer said up what ago. back

letting pull that which drives in. then numbers NII we're through, So those

one then quick And follow-up.

outperforming think deposit last? Just now? I they someone really else and Why outperforming others. know. for if And consumer The you are betas is that this didn't for some you that's ask going to do for

that's the call the them. that's digital around focus or a cetera. zero -- those one distinguishing up there's a to goes consumer allows The on where our that very They page tremendous the deposits consumer services go deposits, a generally, drives really only the to percentage what we on company to that branches the you drives there's fact payments, ability you amount And and which percentage, to -- if as X,XXX at relationship And you for have come are accounts, because to that XX, a cetera, be are you resolve low dollar see core the we et customers. et of checking proposition look the at to transaction, volume can -- the on. of platform very And rates noninterest-bearing it. centers deposits that the bank to core of access high Page if total our and interest value

product mix So of in a more environment. than it's a is a or a interest rate of zero -- it checking any the zero any beta -- product is Zero bearing -- strategy. based noninterest pricing

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

from really to capital. flip build And was kind have of businesses? like build that revenue Can peers And some here faster much at you doesn't expected. I we or are guess drag what most and us it certain script the expected there's globally, than of I'm there that. Capital lean seem as obviously least was needing into look thinking

areas Global So maybe share like in gains further some opportunity market Banking? there’s for and

the this company, position much good in The Yes. place as our surprised its didn't on high-end we revenue results, and capital stress well allocation know, looked relief, and our and almost, the But and that, results which markets careful production an of not use they and the the buffer has that appealed the is honestly. GCIB. And doing didn't than of rest should but all a up. real we gone take which The no for you even DeMare] everything basically And -- hope there. of where are be Other [Jamie we Look, we're do future. only get those a the just are even else -- in is size capital what we we're i.e., frankly, hold to changes were after change. increased balance already, business achieve a now, sheet and capital capital job quarter had there's hit, that, RWA, and really industry the able at to improvement were, loan we great tapping and team it businesses, do.

modeling a just separately, question. little nerdy then And

Is fee pushed think out, line credits? the other As that think rate about with the slightly I we in credits being offset the rate of that ESG there tandem timing an driving higher. tax all and the the tax in viewed tax is

Yes.

for that rate this XX% a I'd little think our XX%. deals So for the full year, then around we fourth end into the The fact original their have way. quarter to I it right All up year, to take mark. right, effective the than it in guided you're should QX about and in tax ESG say But bit higher And QX, would timing. XX% likely that Other and account the this

the to consolidated very respect think quarter $XXX me of the had to of I'm I'd use with where an most XXXX, for for All Other we you're model, quarter $XXX if And asking likely. loss million pretax would similar loss. fourth the then And I now. million I income, fourth as the after-tax something an So use Matt, your talking other

there, okay? use I that just So

of the watermark high year, right? a Okay. And that's

these and their That's installation Yes. generally. just seasonal ESG of the nature deals

comes from question Jefferies. next Usdin Our Ken with

deltas Just on overdraft both and mentioned I had ECR. some the another and fees. or about you a Just you deposit changes through just two ratings, -- service us charges just the the question line? walk of -- talk loan the know -- Can

for how what Just And areas? forward is those should -- going that we embedded of now? by look that from much

Yes.

as respect to on run at should importantly, consumer that rate. side, it fourth flattish, bit think I [NSS the seasonal we're benefit charges, quarter, the Ken, maybe with now, Service now a So of card of steady-state most kind little the about there. I would right all FOD], think

right part business commercial that be highlight, is us won't again this clients. We're with The clients. So commercial the forward. to more from hurting business, you're GTS point the adding doing

clients prefer adjustment essentially fees. earnings So pay pay gross way and Many they interest as that that then receive the the credit that's adding interest, of fees.

this So that came million down quarter. $XXX probably

of positive necessarily to of should all maybe kind down you QX think a trading not compared would expect bit are think, I some XX% seasonality little way period. QX. your sales again as rates going. on then the with to of off at good a for hoping probably Investment X-month a but flattish lag about of pretty in with And sort are. good levels the other the will pretty we're this banking that the quarter. And obviously but are quarter then is Wealth I ours, And coming fees point next and generally markets come where market as be we just point straightforward. guess based

one rewards directly XX%, rewards of me percent, some just programs if our the through interchange products, of their I got let XX-odd programs. Yes. little it? exact in it's that I little think goes base points, it own either some -- a if goes about I customer I if group think back bit affinity bit to got to is of terms through to or a point Of Ken, things the Mike's the --

as charges So fair go of that obviously, goes a up amount back.

Now does produces value. in what produce It that value? incredible

this what that, than pricing happens peers at just goes of in across time in fee the our company, products lot in preferred is all which accounts the the that of cements stability and deposit preferred structure, relationship. our our of rewards cycle, customer last look a is structure at that structure, reward most reward why which if different you segment So and the even

customer XX% that the our very then have XX% they rate are that retention And plus so and important on deposits the stable has customer all bases about customers segment. And are. of preferred a Consumer of those base

the base, of those of We're the to net to and replace of stability fact So we you the the customers the that a base, the customer can customer having those through on effectively the then runoff. length because investing and duration lot fees profitability base, not fees. have think of a we're the customer more produce customer base

of with And and individual all rate as [NSS related attrition And fee lines, production we've obviously dropped per doing there. seeing profit to the per floor more to many same customer has as see done total accounts any by to so you're so you decision. the that FOD] revenue are customer, these what opposed

I weighted got CECL through can just fact, to where one some of economy to and a us to just credit in this underlying scenario? are seeing and are perspective your already in you change, just does, scenarios improve, continues how that work if you separate us just from question already an on you mentioned remind you're the terms -- worsening

quarter, Chip used this so similar very Blue quarter, our to last Yes we as consensus baseline.

And of we are optimistic, downside some themselves, decreased next XX% to GDP applying idea the that scenario. years. that’s couple are you just more We we are we talking middle, once of and scenario. we're whom of give of unemployment the is an again, that's in the baseline. for pessimistic economists, forecast You're And in different in XX this particular increased them that some some in scenarios quarter, that inflation Ken, that there, XX%, Other of our increased whom the that's the through built. course weakened

develops now situation time. the it that row few that's time. macroeconomic that Based it as all did keep is adjusting over again continuing we'll we pattern where So And quarters a over quarter. of a just in on this and

year. unemployment the just sense, Also, like a through next This now give to a X% continues then though, it's all Yes. way and

reserving inherent more there's in over of points XXX where it that and level, statistics XX-XX level. around kinds basis but our has which are. those of of has importantly, those an That reserves that on kinds into can unemployment we inflation, built based is So services it's and kind

October. in are We

to pretty will it year. side quick So end be of the at this

of just in year, next to you sort even you it's higher that moves mid the than Xs, general sense. to an idea, It give a give just

JPMorgan. next Juneja to Vivek go We'll with

Just a a one. in much those On marks third loan couple were of and questions, quick the Brian How Alastair. quarter?

the that simple that for We this through So quarter. those out it week, was reason, as we just run call P&L didn't every smaller but the know. you

include quarter, that we called results did them was see So Global to. it last Investment bigger. feel Markets the quarter you and Banking We that quarter. But out it in last this because just we needed didn't

talked spend year this I tech Is of up dollar in you're what's about being if 'XX. tech or Brian, next either Okay. the so, caught that that it you amount in XX% expecting right? spend year? correctly, if And

[X.X] we're year, XX%, up move year, or [X.X] next that. something we on like This

new type of the for file. is This Okay. product development

number the all talk just for people and purely platform is Other this the billion new like is about code. overall XX

deposits? expecting QT And you modeling it. of you are both on what of you, What Yes. impact for the Yes. as in? are Got

you modeling have to in where, We're changing day. are obviously, obviously probably same competitively we're thing deposits market-based the going in price for to are. expectations environment an every Well,

bit be tougher our a this already So to little baked we're that's point forward, from NIM. going but into anticipating it's

do betas to? you get guess better we where precise, better have do. betas to expect What and to than -- more get data I you resources

different Well, through we're of passing this It don't noninterest-bearing that's that operational be commercial. this that important because to going of going obviously. on base, accounts. our for I wealth, stage. customer to I higher That's most versus different at assume get shared by just competitively that at very want to the it's into you differ us, example, this versus But call end will and be for for can nonoperational and

be drift I'm to different in but quite just that would up places, they'll beta So anticipating over time. continue

We'll to go Betsy Morgan Stanley. with next Graseck

security You're like got into of up inflation Just even rate we longer level obviously We've as high comp comes seems at a is a down expect know. One and going all we and over year it pretty the for months? it this going next while higher with year. think XX we the questions. on into social next how about going X% couple that's is

think that. about wondering So you how

on job the foot minimum wage your done in regard increases front shop. with great to You've at a being

we expense that well? next year's expect come into to should more of as So guide

years to We did a year done We seeing $XX,XXX-odd went good those we'll Betsy, the service. $XXX,XXX There up drop now. the we're the moved in several move more. we starts -- -- to even the X last now we to X%, rate, our starting $XX and based XX% back. we've of And fifth is X, under usual compensation to did share attrition patterns. We Start low everybody and XX-ish on continue months, merit merit. rate for accelerated X move. back and success And each which program. a dropped news down the drop month was has XXs increase

benefits feel continuously. look we've mix, So right we got and at the we that all

to did increased our per and vary We tuition during benefit continue reimbursement $XXX we child, would it benefits any increase childcare to advance. didn't -- they per month our in that

work. operational aggregate and comes it to where using more we we've quarters, it's we'll to continue four and so also the quarter to and those complex teammates they or the XX.X% And that -- absorb of to and the have talent down people we last that. that's reduce And have been pay number that down but excellence we able even package, keep for a all three a investments to should continue technology and have investments working do expenses

Okay.

to So go persist, as expenses year-on-year into expectation 'XX. that for flat we meaning

of and said working to in types part We've mentioning, time. start the it that X% we category, that's of Yes. are things then which X% you're down over these higher now growing and inflationary that

and as are the -- and does on But come, of expect it growth running into flows the ebbs so when and in And that it quarter, and we where driving bit XX.X as XX a you're like base grow. most a and to given -- all it’s low the markets maintain pay wealth a it's things little and right goes [XXX,XXX] just banking markets the it's and now, we're compensation But those per over more discussion investment the people compensation saying, down management and changed a world. complex other comes about. very we've to talked I up come the

answer whole So there's the team. no one for

Just one other one, Alastair.

or off hits as the that we You take what mentioned been model to sense yields higher many should be pull should of a the securities that mix we the years gets ASCI Can over? be you've about roll that kind able shift thinking the had towards raised time. you've how for to us to on over par give quarters the you thinking

the So treasuries, between about it's five duration and I'd just eight. seven four think on say on being mortgages, to probably the years. generally speaking, somewhere the you And there

broadly will the the while But to can well. those think model takes at you time. the some I And point. par. help as in And probably are would then it any about be a that faster the speaking some that numbers be for we So pull pay securities team I Obviously, use. derivatives it there'll

next We'll from RBC. Cassidy with question Gerard take our

You -- seeing early-stage hurricane. Is us there? touched your numbers and us color some the consumer you're book so can But and But is of much give read give not lower very obviously you customer? what are some a with score the on into Anything strong. there in color delinquencies you can any can you it? it FICO

a of going have down when This to obviously, doesn't careful already one is person is pay FICO facto. things because you you de the be the

So We're five-year would the we put still very And rate lower exceed there are back is strong, -- pre-pandemic. averages, the strong. remains we today. I where gave far we're what the statistics you seeing which origination is, so are

So up, we're back what ask there. moving because lows, and normalization, the all-time people even careful we're to not we're back was word be picking to though

you at basis. monthly auto half think repossessions look stuff the if was of down I So and the business, number a on

means and of issues see upgrades actual outcomes consumer And economy a book, outcomes, about flat that's as simple is pretty book provision what in weathering because would that in based what it's is think built still in start to to commercial P&L building process The to -- way you're little and build reserve built that in we is see $X it reserve unless baseline we different we up, all the through Chip. think and mitigate depend a now said, do cost modeled you're is basically we it the the trough -- number a I stress of seeing that also around build as charge-offs and well. effectively notion reserve conservative at that constitution we're with we recession now, on growth, testing sort But remember, pick baking the what exceeding but setting pre-pandemic was we're knew the quarter, then do any scenario forward. durable will which $XXX running million we here of reserves to Blue a responsible be downgrades. sitting we the a is on side a stuff, billion And going now. on on and we the the we're So under different go

see squinting of it's our I Gerard, change a these the extraordinary back supplement think going went of and coming low. if We're here, numbers. to to historically off to really over you the numbers find past course so are years, you're XX

the So little it all there But a time? second of Yes. movement? is is Yes. bit best of

up Very good. Can $X in Very the about provision, you Brian, on good color. follow the past. mentioned billion the just I

versus XX worse, terms a really that terms what provision would the went if of quarterly you took of economy economy really difficult base reserve a basis on XX, you build XXX%, to difficult economy, think, your on type If said I guys, that push to? up case of in in the that

careful term. the for Yes. built I remember mean about weak near I into the because that think a we -- baseline fairly it in now basically have to I'd a be has that path

And pandemic, it can pandemic stress some that one numbers, on but the call the exactly unemployment. to bunch saw My sitting was and going we implementation. to move a expect CECL with closer that to we're and think in I was wouldn't a [XX] up, projection the if XX% day saw but you I see so of And reserves go built in us we you but test. of that, you what

at test So make that. frankly, it in don't the you period would can can to what we you on tests that have on given case, which then speculate adverse those… don't I you stress and gives in look sense you of but if really numbers, the stress you ever think between test to and some these But materialize a time see Fed sure there, see we do

take question final Charles with Peabody our We'll today from Portales.

implementation endgame Yes. that? But any Most might you or just already. of how if timing of my I any the out thoughts about curious III questions was Basel had and were asked the play of thoughts color? Or general

we get this else. rules, the at are point. pointed through waiting in fact out in just updates a where got along We've our start where obviously, that as But we earlier, we position come a down does flexibility with we're And of ahead the endgame ourselves Charles, capital Brian of sit everybody Obviously, we've particular own to with. need be XXXX. for No January the already we'll out working this put once point base. whatever lot at and

all for you thank questions Well, your Okay. and attention. your

just me Let quarter XXXX. the for summarize third

organic management. once leverage for operating revenue good had risk growth in driven the growth strong responsible on We all by NII and straight increases. businesses. work expense that. had top quarter fifth in We for growth the straight We flat again. the We saw line had third quarter, expenses good You action had control,

we strong to end-state the built capital we're You can risk and that need. see still we running the levels parameters, X/X/XX that

So that's and what we call Thank seeing interaction. now responsible you. you're growth,

for Thank you today's This participation. your program. does conclude

disconnect You time. at may any