Bank of America (BAC) 13 Jan 232022 Q4 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 will be recorded, and I am 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.

you. Thank morning. Good Welcome. joining results. for to the review Thank the quarter fourth you call I lots day and busy know a it’s with your we interest. of appreciate reporting, banks release chance I review had everybody a trust our has earnings documents. to They’re available, we’ll to website. section the during Relations presentation on Investor the be the referring call, of the including earnings that bankofamerica.com

other then our elements to for some Moynihan, going first to Brian CFO, quarter. turn I’m the our comments, of the ask and CEO, cover Borthwick, call some over to Alastair opening

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

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

it that, So take with Brian. away,

Thank I starting slide you, for of of all X earnings am the presentation. on this us Lee. thank joining And morning. you

of team once XX% year-over-year our and the quarter equity. XXXX, in leverage. share. grew tangible XX% common revenue delivered tax again, diluted operating We return quarter of And a During strong We or responsible delivered growth after fourth sixth for reported income again our we shareholders. net on billion $X.X $X.XX delivered straight per our

Jimmy coupled Revenue drive by a led XX%. and with and net increased strong income, interest by the a helped and trading significant all the organic have income, interest we quarter, year. was growth increases been throughout in list results XX% XX% consistent move DeMare the sales saw you net activity highlights which team. improvement X, good If We in customer in drove leverage. the It slide pretty operating to year-over-year which of

on fees service This growth positive NSF impact investment enough changes in the trading a our driven management asset wealth bond banking will charges impacts and of contributions market management fully and The and sales and of and overdraft business. lower fees overcome in to exceed the also were decline in by the valuations implemented NII of our equity fees business. in consumer

in our improved to we XX.X%, Tier Importantly, without equity we our ratio quarter achieved and basis X business strategies. XX by common changing that four

-- January requirement have our requirement We’re minimum current the we’ll above well and of that XX.X%. both in year next above our CETX XX.X% beginning

buffer in higher offsetting operating modestly and both our added up a income growth our outstanding and net expense. result quarter, are with loans loan in to growing touch reducing which On EPS also shares leverage The more year-over-year on strong I’ll while higher basis, later. is waiting driven We builds the comparative quarter. this both of provision our primarily and reserve a our conservative portfolios reserve provision by expense in methodology, setting than

of the increased actions on touch had quality beginning neutralize Net again, Charge-offs are the pages. levels. about pandemic pretax pre-provision year, is think All this I’ll in both these way income, -- simple as And as being asset that to Last well well this strong. historical remains few -- said, it reserve XX% a which year-over-year. grew charge-offs quarter, reserve longer-term we large releases. the but

on net results. a four in $XX.X were and which slide the year-over-year annualized results nice to successful growth operating quarter in X revenue Slide income And finish billion a we year to a turn X% X% Let’s produced X. shows leverage.

reserve result actions. While of loan strong, year the declined earnings a was full year loss as

that Isolating we again, PPNR those ‘XX, grew billion contrast, million we you’ll strong released And year, in last full of about reserves. $X.X over see XXXX. reserves. year $XXX XXXX, a the of For built changes, XX% by again,

As of activity, I by growth. strong customer and NII characterized good always years earlier, helped the said responsible themes by organic were

the X digital in slides appendix, Slide growth each the of growth we of trends and earnings the some This that show year. our businesses. highlights organic include and which across quarter attributes materials for organic highlights plus all the the

growth. Our and continue investments as years experience several to to have and customer as and the renovating enhance over our our us well past record for levels our fuel the high customers to facilities and our tools people, resources teammates organic allowed

that to XX% opening balance of that XX% these accounts primary of while the added in XXXX accounts since checking This the the addition increase opening the keeping accounts, new but to balance, in total the we before the of million. has growth checking are had is rate accounts the average net for than accounts XXX,XXX not twice quarter average In periods the net pandemic, average year in in over fourth This of bringing more pandemic. led we our XXXX, household balance, of $X,XXX. our is the X checking the customer new

$XX produced levels generated slides our back with consecutive see we quality more XX% on bringing for consumer in XX X remains new active. new million Credit grew users households million doing to that credit us pre-pandemic. digital also cards, sixth We that, Appendix digitally consumer originations. fully of Verified of the very than can high quarter you to

month, and been on now. than time some billion each platforms for more that’s digital logins our X have going to We

years represent Erica, Digital quarter work this a and our handling interactions of since This sales for assistant lot growing, our now team. million passed saves in digital are and has of is also introduction our the interactions X virtual past just XXX business. sales few consumer a ago. they billion half its now

the wealth of by second grew the business, in to the our you XXX advisers management the half GWIM move business, When year.

to Mail million, get $X.X way, of team our XX,XXX account Our flows the added opened new net By experienced despite the high-quality Merrill Bank XXXX, very household We openings. balances solid turbulence in Private across households net markets. in the during average the with XXXX. of

wealth all billion $XXX we saw our client across of platforms combined business, flows management when net year. flows, On our this consumer in investment

Additionally, element a differentiator activity for is bank around they business the both banking the year, see company. helped us GWIM leverage strong revenue and the records. and income It deliver products. as we continue to Diversified supports healthy also GWIM and operating strong our a business This grew our to increased investments margin. pretax and net for

our new we and and our solid of saw our throughout the Banking portfolio. clients In Global business, use year loan growing digital production added platforms to

banking investment well pool know, overall was you As the down. fee

to However, and with expand our relationships bankers. of commercial client we build-out continue deepen

macro management. we had fourth service result year-over-year Our and quarter XX% FICC where was ex-DVA. over last from global growing treasury trading we in our as past performance global four This XX% revenue of record, the strong performance performance rates continuous as on XX a investments quarter Equities as well. In by businesses, year grew sales markets, highest cash months. business had a services record well as led both made a fees also our on for

about Let’s slide operating leverage. X move to talk and

can of quarters to efforts, the up shareholder I’ve primary to revenue part leading many an company years, Those growth was this to straight of for coupled of has operating investments one you As goals with leverage. XX you the said see, drive been the including our return made leverage, for important as future, operating pandemic. model, produced of

X we’re XXXX. leverage I in to you quarters told last and and going started towards things achieving year, on that the that operating of streak, back Beginning -- that drive third continues despite we for ‘XX leverage out there, -- operating got the XXXX, and quarter all now X are the of on team

few over a important spend I’d minutes discussion topics about thought last months, I and investors credit. the of couple of that’s deposits been So, on talked we’ve a as

let’s go X. So slide to

and through period, a and of the factors an on impact surge high rate pandemic-related There as deposits the of hikes easing, our unprecedented tightening. -- the and works First, economy unprecedented in deposits. deposits that impressive monetary with then of size and reversal the are impacting inflation pace stimulus, impact works of industry monetary monetary several through from

average reflects governments XXXX. This and market But -- to in trillion X%. reflects down tax fact, payments the $X.XX deposits are year-on-year basis, on high quarter it the of trends in a

increase In addition, forward and customers other investment-oriented treasuries move yield we direct saw as excess money funds, as XXXX, products. for with cash, rates through cash market

in to X.X%. is X%. of shift up especially business. relevant ‘XX average banking services pronounced mix of quarter comparing in ‘XX, were third they to quarter deposits of deposits The change discuss mix. in Noninterest-bearing near-term impact The more deposits billion down are us. the more the global are activities probably $XXX interest-bearing a treasury treasurers has It’s with manage trends of down deposits fourth the their low have X%, Corporate

the in And while business On X, We side, higher-yielding of core down talk that. floating discussion checking customers expenses these products put into deposits money differentially. the personal can you balances on these can a manage we’ll from do bit little by spending and through see see account deposits affluent more and the all you the segment slide market.

this upper deposits a -- down for the the whole year to chart. the see near-term upper you more page and trend. going breaks the across company In left, So in our the left-hand full can across

put see. in can We also rate the you hikes that

ended stabilization Then and added payment On customer more the But to can of second large four client over seen ending products to and what hikes ‘XX certain the overall the $X.XX Simply we outflows four acceleration the course heavy balances. roughly we you’ve in three in trillion the seeking in we segments. tax quarter of deposits see quarter quarter rate yield quarter. deposits, of been normal as level in the put, in chart, part, deposit you move the saw has activity. with

to portion balance So, between between through CDs. upper somewhat yielding business. let’s by higher interest we right difference the accounts, look market of low no the money and consumer, checking show at at non-checking quarter chart, of the those saving and movement limited a to looking differentiated accounts the accounts In the

the a total, Across down decline quarter, saw in X%. $XX billion we

customers and also Correspondingly, offset good wages in small brokerage billion, we consumer levels We spending, seen decline brokerage levels a of accounts of in We Higher debt also business. this of in continued down in saw higher deposits. money have move deposits saw the four even capturing increased a investments have $XX this. to quarter pay those declines consumer. portion

a recognition are think a the company. being relationship with digital and of very trillion. In consumer of of stickiness, account capabilities It the net industry-leading That value transactional checking our these of -- reflects with franchise. deposits also the account convenience we $X it nationwide sticky along proposition growth reflect in offer, has general,

customers fewer because paid investment of in of accounts. $X in all no this and the XX% trillion have that checking our And consumer interest points. low reflects segments basis balances. also segment mass in rate at X style It remains overall deposits remain cash the market in that, excess cash low

of left chart, $XXX billion stable bottom lower-yielding wealth management, fourth on the to a preferred across more yields. also the the which you to from these can can They more In deposits, became you you witness more also have shift see the see transaction at higher excess cash customers quarter. as and deposits of move deposits than here, higher-yielding seek as them -- label

the happened their This money, an and quarter, seasonal in but Early future reflects and hikes balances, in fourth as began modest the to declines balances People hikes for rate November’s quarter we rate probability saw of management through quarter. in we moved became slow less. move uptick that clients. saw inflows we the the the in wealth had

this right dynamic part At most the of you the chart, can equation. see bottom

is in for pace customer here quickly Our It’s it hikes. mix of global banking billion exception pretty four, by The deposits. -- with that deposit the $XXX company. drives typical total driven rate in shift movement very happened across quarter the what the moves the

operational both liquidity are investment In a or manage rising environment, anticipate the clients these in cash high cash company’s inventory pay we as down for changes, expensive, their a use funds yield, more particularly rate where debt yield. environments

mix the global higher from to And seen move rates to obviously, them. have four. interest-bearing quarter we’re banking XX% XX% deposits on last of We deposits paying retain quarter in those

based on is a the basis of customer here to on other depth and relationship, factors. usage many -- pricing product the customer Customer

we’d of percent and continue rising to cycle are interest higher faster rates cycle. still of a to been would even to as as move rates funds the we about as very increases paid are rate last note, cycle, that rates last the cycle. Fed pay Fed the deposit end rapid last overall the So, increases have to favorable through I than much expect

get is why also remember, just simply So quarter deposits, our the side. That more paying from is asset four we’re while we XXXX. for that up net versus -- four XX% NII XXXX interest is quarter on income

credit. I And specifically, topic which touch second the on begins to is X. this want move on let’s Now to slide

it very our remains is that an truth healthy. of First, quality customers intellectible asset our

gainsay pre-pandemic that impossible On levels. hand, to charge-offs are moving it’s other the net the to

quarter, So, both million from and of charge-offs we card in The was $XXX increase increased driven by fourth quarter the $XXX net saw million, losses. commercial three. credit higher

show, overall As very context. low in charts still these they’re the

In had based not in These trends charge-off quarter related, four. prior few not reserved loans, through but any and periods on for we in company-specific our were commercial, broader a of predictive older in went already the methodologies, of portfolio.

four. four Credit charge-offs card the and as still pre-pandemic the levels. quarter expense should in to lows off modest last flow-through was in delinquencies increased $X.X late-stage transition Provision low continue delinquencies. result increase historic quarter a quarter’s of of in as we This billion very

quarter included growth scenario. with good three, our addition provision charge-off reserve higher setting reserve and to other loan roughly This build. million than the card credit combined reflecting $XXX In was

just let’s the stop reserve on setting scenario. So,

XX% unemployment last scenario That’s of expectations. use. also That higher includes the is expectations other scenario. methodologies of reserve scenario economic and is the But -- the mild GDP than case our we that a in base scenario higher recessionary to a assumptions in to leading Our This blue recession. what environment methods this our weighted a depressed in baseline more results and XXXX. downside And chip towards inflation add contemplates conservative quarter scenario. we of

X% much early that sense rise there. above Now the contemplates the and than estimates to at XXXX obviously, just economic be it ‘XX, give clear, plays way conservative this of the of rapid year remain unemployment all you more end at out, or to are to peak a in through how X.X% in that a scenario out

again differences highlight and XX included status. between We the slides XX credit and pages our to portfolios pre-financial appendix, in updated the current in pre-pandemic

on gave again, page credit origination the you for new also, consumer We XX. statistics

stress results. show further stress had view, We’ve net in work on strong in charge-offs of to the lowest banks responsible has have XX the the test last an done From the team don’t The growth outsider’s you continues Fed any look to peer for results. XX tests.

slides for the ratios net On charge-off long-term more trends during card specifically, to pre-financial pandemic. recovery This charge-offs, rates after the perspective. pre-pandemic crisis, total consumer then longer-term included and financial those we some the commercial showed charge-off XX, credit to XX We through crisis, rates. and compares

bottom that cost context was is perspective, think credit which moving which towards context that pre-pandemic, we’re keeps a grand that of you gives long-term So a normalizing I to level in very the the but banking. idea the off in level low in

to update multiples to consumers their drifting that have cushion continue our see the balance Alastair, down, they year-over-year still a growth we of of show So And balances slow. balances began. deposit to continue several before it few they as are but the pandemic pace plenty liquidity on have These to of while lower remains just left. of that I healthy, spending I with continue want comments hold Consumer a strong our cohorts behavior. move to consumer

In spent outpaced XX%. trillion, XXXX which in the by XXXX, $X.X consumer our aggregate,

that Year-over-year spending on continues be They’ve were fourth pace. X% slide note on in things earlier a percentage now -- the year-over-year to quarter. earlier to There consumer growth You XX% moved XX. XXXX this see in to can slowdown. year-over-year. Two that

saw we does spending growth what in with year-over-year low that of consistent the this pre-pandemic. economy inflation, X% level So, is mean, with growth

inflation money service They’re for on and like but to is out also moving maintain spend service pressure. travel things side good from eating a that. services continues unemployment, and experience from and goods and to That more vacations

through the quarter. that, of go mic rest Alastair? to the Alastair With the pass over me let to

this. me balance use I’ll start slide let And and for sheet, with XX Brian. Thanks, the Okay.

balance modestly global $XX our During driven declined lower by balances. billion $X.XX quarter, trillion, to markets the sheet

Our the $XXX average declined quarter, pre-pandemic that remains our in liquidity portfolio levels. levels. above reflecting securities in $XXX And the billion, decrease deposits still and billion it

$XXX shareholders for the which Shareholders’ $X.X mortgage bought of offset revaluation. in offset third million $X.X was changed from equity We AOCI a above in and distributed out million in as from billion capital quarter we than as pension benefit of were billion partially was paid $X dividends. a rates quarter. lower billion common issued by was to increased quarter the earnings some the preferred we redemption those in only roughly securities. change And back our in small employees $XXX shares, annual little by more

regulatory With our remains and regard increased balance to X%. minimum X.X% requirement leaves capacity sheet requirements. our obviously ratio TLAC for And above comfortably capital, our to leverage that supplementary versus growth ratio our of

Okay.

means Let’s ratio turn our CETX our improved added strong points CETX, as two past XX $XXX remains and to points improved current CETX quarters, by That of see, we’ve capital where, can our to as talk slide XXXX and basis top both billion our XX to you management the CETX as our XX XX.X%. level and ratio our on in we’ve to requirements. improved buffer basis about

points drivers walk points, generated of repurchases basis points. balance while the quarter, used So, using of you net a the preferred modest CETX. dividends growth earnings and loan and this we see in basis points, can RWA can gross X common CETX basis XX basis XX was drove of And through sheet usage dividends share X ratio increase down, the

growth capital and the capital were add our we support to return buffer our and to So, able same in loan quarter.

and just loan a more the year-over-year, spend XX% Let’s credit loans average grew commercial near-term by here, improvement. card. basis, by a linked-quarter loan you can on loans loans annualized pace average a card And at by slide focusing slower X% growth driven on minute On driven on see XX. credit grew

markets a balances to higher of were levels driven and delivering and as growth of bank private credit up of financial in lending offers account marketing, growth commercial well estate increased card by enhanced reflects reflects lending reopening a real quarter lesser Merrill our prepayments. slower year-over-year, good Mortgage as openings. Commercial degree, modestly centers, were our custom global businesses. The linked and and balance

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

increased from on few driven $X.X QX billion a or Focusing net components. interest FTE, income ‘XX notable XX%, of by

First, points, interest on driven funds our in basis increase the year-over-year Fed rates. earned interest funds the XX. XXX billion was Year-over-year, improvement paid, increased assets. the XX total the by basis variable rate on nearly of increased rates just to NII Fed that paid driving our up has average is deposit rate on focusing XX. move, rates interest-bearing deposits Relative to the And $X.X points

So, increased even period rates cumulative while the the pass-through the the remain to increase than That days points XX pass-through lower XXX unprecedented an Fed basis have in our more still cycle, percentage funds at rate rates cycle. this rates in this due last of past in includes point, hikes.

Long-term the has slowed our rate quarter of fourth in the quarterly increased mortgages from in improvement assets securities rates in interest points portfolio. recognized the $X recognition Included amortization. ‘XX, securities and of driven mortgage billion therefore, of on expense refinancing was benefit down premium have pre-amortization XXX the basis which

was for is contributor the Net And second offsetting described year-over-year loan lastly, NII improvement. inventory. added growth. the million growth The markets just and global nearly banking higher of funding to book costs securities our $XXX paydowns, that’s partially

NII And and is that can our see year-over-year. it’s revenue. is $XXX on total million trading line, to to our Markets Now, clients revenue material, both as you Global noninterest sales down neutral to in market-making passed through and so

Okay.

$XXX third markets $XXX to from rates. a included discussion. linked of fourth with basis-point XX in driven a largely That the The improved recent is rates, the up quarter in the occurred from was net Turning interest premium includes increase that by XX from primary quarter yield global and basis most benefit interest million $XXX the NII. points ‘XX. XX% improvement higher the our being X.X%, Nearly of driver quarter lower million which decline that NII interest from benefit amortization. a million quarter,

points markets, XX note, global basis you net X.XX%. will to excluding As was interest yield our up

forward, I comments. couple of Looking make a would

NII our do I As important me regarding provide the let caveats guidance. every quarter,

and caveats from decline in spend seasonally assumptions interest loan paydowns, the that materialize, we we and Our will anticipate modest rates expect loans forward card include otherwise, curve holiday growth.

expect other banking deposits in We face more of shifts that the quarter QX the mix in the a deposit seasonal experienced rate first hikes. may into and in continue global decline

expect and noted, based impact to We increase cost And income, on offset also it’s markets is higher as funding continue the recognized global of rates. neutral. revenue that for so the in to noninterest

$XX.X roughly decline. of to quarter So, That starting in a assuming with around the would of NII a similar QX, million would the us $XXX decline markets which to get fourth global billion, billion. be fourth quarter NII and QX number $XX.X of

to million. days have factor we about $XXX is interest, of addition, less which in two In

So, to that would billion. lower our $XX.XX starting point

book benefit We rates can to of of day offset believe count. other the elements banking the and the core and will most continue show

we’re QX expecting to $XX.X billion. NII around So, somewhere be

and QX, if increases Beyond with balance continue their recent balances the in variability in of slowing XXXX. rates less expect for NII stabilization trends

Okay.

they and were by to increase turn expense, billion, Let’s driven $XX.X million costs. up were QX XX use discussion. and our in people and an QX, the technology we’ll from slide for $XXX expenses

to we cost demand In spend together clients. higher continued back costs work person of pent-up also from more our time our and drive to We’ve return to seen engagement. collaboration and gathering addition, teams and our in client with for travel saw

as but pressures. of as continued offset our more a base the well those operational pressures Inflationary benefits digitized customer helped improvements excellence

our Our support quite were quarter continue efforts in increased by X,XXX XXXX, headcount hiring to in customers. increased faced we teams this their And attrition QX. as successful from to

our in As of leaving hiring the headcount. our fall, growth pace attrition slowed accelerated with in us outpaced attrition, the

late in million the of costs higher forward insurance be regulators includes And the elevated look next by include million also QX of to FDIC QX quarter, As everyone I we will first costs. October quarter just would typically announcement taxes. that to payroll seasonally $XXX remind $XXX to the

million of will costs add result deposits, of a the for $XXX as And our of total retail million $XXX each the leadership that or holding year. quarterly U.S. share to in

back the again $XX put should things first these they around down course of expect XXXX. We expenses expectations before in the quarter trend over billion that will

since credit on and of On already slide a our going to for XX. topics both asset much asset slide discussion of consumer portfolios. commercial the XX quality we on to results, metrics quality, starting on Brian move And quality, highlight of business our covered consumer line I’m with

across earlier accounts Brian quarter, card again many noted were accounts, the and investments organic of in retooling and investments and checking a growth the strong result this of as years continuous that’s business.

me highlights. let So, some offer

At leading this retail market deposit share. we the point, have

We digital positions among and small have we’re leadership and capabilities consumer clients. leading the most important products for business for the convenient with consumers, bank

online We platform a a offering also leading for small great our have investment consumer and business platform clients.

you now net banking in capabilities with all-time income consumer XXXX. is customer resulted $XX.X improved we And strong in produced importantly, of this that service, at And results combine another in satisfaction highs. point, in when quarter all at billion these

The and X%. XXXX. continue quarter, the earnings XX%, for earned to grew operating increase quarter the reserve delivered its that while period invest to $X.X impact a fourth revenue banking by good Note line increase expense, provision growth XX% For year-over-year future. consumer offset our consecutive billion we reflects reserve quarter grew leverage, was compared that partially while the provision release of organic builds seventh in on in of this expense an top growth of and

result Brian a as of charge-offs that card noted charge-offs earlier. the Net increased

year-over-year. XX% quarter’s XX% up While were earnings stronger year-over-year, pre-provision reported even an income this pretax grew

without highlights the the of reserve impact improvement earnings actions. So the that

year. of with value deposit the of base a full our relationships. this deepening end of I’d reflects note as and also were year-over-year includes the effect of overdraft funds our the our in by as changes well deposit insufficient policy decline improvement QX as in Revenue service million charges growth $XXX fuller

changes, to corresponding associated benefit with continue And the calls, customer and policy obviously, fewer customer fewer complaint better from the as the result fees. a satisfaction and overall result as costs lower of attrition of a we those lower

the minimum business most The to reopening for growth, much expenses impacts banking And business Company’s our increased impacts people two costs consumer related with wage business including the remember, therefore, fuller wage capacity. along X% hikes reflects of comparisons. and lines the and most salary investments of the technology, year-over-year increase and and in moves to of quarter

in continued financial our investment We centers. also

year, that, and and For us more. of against the the we us XXX the banking basis-point operational pay period. digital excellence over XXX XX%, that year-ago impressive we an to helped both allowed efficiency improvement XX opened all to for ratio renovated And to and improve investments

easy moving some to away differences from since even to operating effectively XXXX. I is in can banking, the sight position before much how Before already running business pandemic. highlight and some the an well strong this note just business from on want this you in see is lose appendix. how XX consumer to of the efficiently of And It’s more stats just slide

absent the divestitures, the whom We more XX% investment deposits, And $XXX X%, summarize card noting XX% we’ve can are best we’ve increased new and our higher. accounts by payment got billion customers, XX% of accounts. card amount are more by in XX% of more primary, volumes checking

us capabilities, our to We’re financial because people centers digital servicing XX% with the fewer to run those customers and allowed of fewer XXX it’s business. need

XX%. credit increased sales we and and Digital Our of number Zelle and sent the received X spend up was times debit XX%, transactions. combined

run business with this the of and of XXX deposits us cost allowed fewer All ratio employees lower to basis our below points.

slide and bond negative strong to markets XX% net led $X.X results, good Wealth records year margin. income and revenue billion and This both to profit XX. of full earning management revenue billion on Moving produced at this unprecedented both, was returns nearly billion, equity year. $XX.X the the This especially the the of given an result $X.X time respectively. good same for and

revenues business and billion helps is of at what differentiate a pressure put generally in in market banking The $XXX again Merrill but this scale on lower with deposits of volatility and private and $XXX billion certain business QX, bank levels the loans. strong

flat year-over-year, brokerage management revenues hold a and ‘XX. XX% fees with despite the fourth under in quarter of we So, decline asset saw

relationships talented XXX in wealth new an advisers, the were fourth XXXX. group of in bank Merrill powerful digital generation household worth Our coupled high while households the X,XXX up quarter, private new in net with net from net in capabilities, nicely gained the impressive both net quarter, generated

this of despite quarter We by XX% XXst the the consistent business business sustained the growing That’s market in $XX of billion added consecutive lending since and growth ‘XX, marking average loan in environment. of QX securities-based loans performance to teams. related the current and reductions

revenue-related declined business. expenses incentives, by by lower partially investments our driven X%, offset in Our

banking the banking to of And slide quarter XX. $X.X investment on billion, see earned pretty in fees the given the on Moving can global decline during $X.X billion remarkable record in fourth you year. revenues this business

and offset higher modest credit in by fees. NII investment and were expenses stronger costs increase other a fees, Lower banking mostly

So the our transaction overall, while our than revenue our declined XX%. a banking value X%, to of more clients investment fees growth, grew global business and revenue associated service little reflecting

were overall the overall banking number to year in a company’s in tough three increased Still, continued $X.X investment declining our billion XXXX market. business. year-over-year ranking we as fees the billion in in we’ve QX, to The continued $X.X fees invest for full

the including by income technology. $XXX reflected period $XXX compared year-over-year. and and build a X% in million grew fourth increase in million ago investments a quarter The in release $XX year-over-year, strategic XX% provision pretax year the increased in hiring driven expense and the that business, was modest pre-provision million of to reserve Expense

the markets segment on global to usually DVA. excluding as XX. do, we about talk I’ll And slide Switching results,

prior favored better markets a in around clients. our also results to and another was monetary macro volatility a trading changing can of geopolitical record and bond globe And it inflation, drive You good tensions were than finish the central businesses repositioning continued trading, themes strong result, very and year. see from policies continue The as the improved credit fourth quarter to banks while our our a fared year. equity spreads quarter that both

Our own quarter lower by sales result offset And as million reflects net trading of net spread DVA losses of excludes of and income this million fourth noting was of banking it’s partially credit income revenue, revenue. a worth $XXX this Reported our income $XXX quarter movements. good $XXX shares net investment quarter of a that million.

X% in sales quarter and the XX%. $X.X and for XX%. business, a improved to FICC from primarily XX%, a $XX.X for ‘XX at macro trading also that Focusing up our products, driven than credit equities ago. and on previous it environment. And marked improvement a one the sales weaker more by quarter year-over-year, FICC vesting fourth while by a while That’s improved trading in the year, billion growth improved the to year best QX was new And was billion decade. products compared contributed in the record revenue, this

We’ve we’ve this been We’ve businesses. identified expense that Year-over-year past primarily increased macro business. in for And quarter. investing over opportunities continuously by been those the about for driven in as investments us. rewarded XX%, again, our the year

show reported loss which year period. we and the that was XX, other, million, all on consistent $XXX ago a Finally, of slide with

For was the tax tax discrete certain quarter, the investment and benefits. credits effective tax XX%, from ESG approximately rate benefiting

have been our would further would discrete credits, tax been tax XX%. it for have rate the those items, Excluding XX.X%. And adjusting

tax full rate we was not would different. to Our year XXXX expect lot GAAP be XX%, and a

we’ll and up stop open Q&A. please we’ll with that, it So here, for

[Operator Instructions] Glenn We’ll with question from take Schorr Evercore. first our

lot, a more little little a help help, need but I XXXX. more Need much. NII gave on very for you Thanks Hi. a

us rest $XX.X the NII on less your on to in ‘XX. billion walked words variability of quarter You for starting and were the the point

through, blanks? think So, of I is got some guess, a speak still NII for a calendar won’t fill in know those betas. you I expecting the growth some coming we’re year. everybody. -- hikes lot and I my outflows am -- in hopefully for have I migration, flip that rate growth, Because is, of you the I But opposite. understand could side The deposit few more you and question I loan

So, the through is banking, global piece a you maybe big noninterest-bearing pieces talk of could it. those outflow of maybe and some in

So, thank you.

obviously. with just context, of I’ll Glenn, just start way by --

And historic QX, in off tightening deposits. quantitative see to a pandemic of for beginning the impact and with period rate now We’re of we’re rises. inflows number coming a sharp

So, that obviously some creates uncertainty.

We rate rotation don’t to just that. to We and see have how the develop. the see we’ve necessarily actual perform, balances for got playbook paid a how got and

we we So, and it’s that dynamic. It’s manage evolving, forecast weekly. and

in the page you trying X X presentation, mix. we’re around for we when we’re earnings actuals lay balances and and out show real of to what you on seeing time So, the

around capture It last we neutral the pass clients highlighting it’s and million. we’ve obviously, couple we’re day we trading, and because impact along the get highlighted revenue of So, we coming global back, shareholders does in been been timing, every with That’s why to $XXX we we that would we’ll said for we is to is year. and up there. to count and to then And always point, quarters, adjust the what as The NII That’s obviously markets It’s respect quarter that sales this QX as QX. got impact. in elsewhere but NII. it. it

the the may we there the of of But like continued declines to look, from as rate to rotation are it and that this modest forecast, some pricing relates interest-bearing. And in We pressure. some balance got continue. kind noninterest-bearing feel

in the of too. back that’s mind, So, our

particular were say This feel modeling final whole than year, reluctant when is, when that just to way year, a when we’re rates a declined in only more sensitive X% we go the XX because much it’s environment they we lot to just thing at give guide. out. basis we’re are at points. a further year Last And I’ll full interest

So, reasons. those for all

will this, I how return final see that’s don’t beyond think you to We at -- out behaving rotation and got it, as time. of see to than I it’s over got rates out. QX that’s to behavior why shakes upward and see out, maybe and a more more stay we be sort can point. our to normally customer got want we’ve stage. But And should and how able little Now, and resume we this patient shake path go this balances and rates to normal got just the because to we as we say

to given I Good last against criticized that quick charge-offs book Thanks. you can about What’s the see sequential of the going enough. and feel down bad driving billion from on that? $X.X Maybe the feel through Fair talk how for world. quarter? credit. you us. on that’s everything in pickup reserves all one But in -- a big

Yes.

And real through office. change the is driver of what around And in amount office. service specifically just rising with there’s debt the So, to downgrade. we aware, rates it And going estate. it main that commercial a is it’s on are there Obviously, you’re here, pushing coverage down, is the pushed about chosen the significant of as $X do models. through we’ve comes we’re billion

we’ve to So, that. chosen do

okay. is The performance still

at sure know up, portfolio not office A generally obviously with concerned that you of into and that building. we’re we’re tight making the we’re making but being we’re So, focused at a buildings this, XX% there. I originations It pretty XX% on where office performance, are just Class book on is leased origination the LTV modeling think is

not we’re So, alarmed there.

We’re own making service the coverage. process just sure on to with our following debt respect we’re current

with we’re very that high-quality A et remember Class, talking about characteristics, cetera. all office underwriting Just

just have portfolio. And by out But billion a total $XX process, well conservative frankly. viewed so and is well to many looked we it’s $XX And at there people. of remember, billion the rating office

So, we feel are. where very comfortable we

we recession And the across reserves and base then, the adverse strong are wait in mild case recession built the as that we that against worst the obviously, I the case basically earlier, in portfolios board a reflect, said and XX%.

with go RBC. to next Cassidy We’ll Gerard

Can building Brian as to are Thank what models may XX%. share overlay loss much with reserve you Alastair, on about guys is of you. reserve the how the on the the referred adverse what specifically management be reserving case just being about to dictating us building? relative talked and loan

Don’t that. disclose

what are You things in it. might judgmental, now with we there’s that other two is that precision and a that uncertainty. assume But -- One this. fair that amount of there’s you a say, then to the the think and fair amount. components overlay is the be so would three basically and uncertain model portion of right model a might a piece, There

consumer, there differences accounts at money moving around And cycles, moving they’re way the look their or savings material past your not when deposit or you Brian. any the around low-yielding is good, in then accounts? from Very the money checking behavior of

to I to think to move higher-end at part the and that market when funds, them investment don’t was we the yields money The of move not in addition it’s sort the it, that do. consumer, there And a earnings when as market -- you frankly, they look rate we the difference, lot cash, checking really, accounts that what of power move. of Gerard, of stimulus in it, we that call moves, consumers. was is

but So, -- been will across history, keep stimulus. it that The we’ve they will it the balances $XX,XXX. an of average that up? amount spending of at question they’ve that never it $X,XXX they’re business. or down very in but and storing in so general peaked they to you early $X,XXX at still they had down pre-pandemic is, $X,XXX, sort spend modestly the medium in And at income ‘XX consumer households and Give $XX,XXX, or so example, sitting cohort was

down, it’s So, but still they’re multiples. drifting

they’re rate models end down? The if changes unemployment will big rate question changes. was, probably If spending But they’re they our that up not. unemployment -- if employed, assume -- the and

low of think structure was very checking. are we points, most we in we have we differential money That’s fair CD I it’s points So very a paid. of have -- XX you that amount The total we’re markets, showed at basis in to, high. rate the is now And consumer but got X basis it volumes rate where things and why checking.

are different? the Yes, can on same, including it they the the use bigger behavior in cash probably because rest they the balances rate the but number scenarios, that and may sitting just credit effective the in business the is is tend pull balances in mass of to less cash, certain So, people fees, have consumer generates and their largely to corporate business out. so cover where more a

X% Is where that Just today moved it that completed high where worth did in those quickly, and X% at Fed have we corporate, already to that example, got from the X% at move the most were versus move going X.X%? of categories? net Brian, money just to look when for people the funds, you two to

in look but that’s say -- can’t where the show showed those the wealth fourth I they’re what relatively stable $XXX-odd billion across billion. quarter, $XXX-odd the mean, weeks. account definitively, flat, we -- we in pages you’ve Basically, seen the I on -- several are balances stable last Well, management if you you

a is money deposit, migration little market higher-yielding of account. which the always for sort bit preferred a market So, to of there’s

-- had But, payments, the was, that higher think went which that ‘XX billion-odd in the and I tax the second you $XX of to capital through. ‘XX past if things was in gains other in when shift we about of quarter due and big frankly, numbers than years dynamic think lot

stable sort So, among movement what is we’re a that business, we’re relatively X weeks, four in fairly X last categories. the place of bit seeing of end But and basically the seeing balances. little three, stable flat, now. Quarter quarter frankly, or a deposit right in

of And it. so answer the sort a they kind they long of I move if moved realize answer, money, already think this

from Mike ahead. our Please next Mayo Fargo. question with go Wells take We’ll

grow deed I unpunished. for fourth guess, XX% mean, the It weeks your X% up management. arms lowered last completely after good million. raised your gave asset the goes you or you quarter did it I guess, modeling And $XXX NII did XXXX. quarter I questions no you But Alastair, and year some grow linked liability million. around guidance of that quarter, just quality $XXX guidance about had by if the the six

you to have the of So, albeit context best some of you NII cause many still in years? guys in seen the what to growth change guidance, that happened

Yes.

up if So gone billion. months ago, might Mike, we what earnings, go at thought billion. was up two we said fact, the go to the course $X.XX it’s by time $X.X actual six six NII next of quarter In over I billion, back the $X.XX months,

that’s forecasting $X.XX as best at any given we’re up Remember, can time, So, billion. we actuals. the

where in. bit if rate And QX It in was sense and more QX thought kind favorable QX than rotation, part behaved little behaved differently. QT the like, or mix bit the I little kind was is less and differently, think balances makes favorable little less paid behaved had kicked just favorable. a was of that because a the we the because of a QX And differently. just you large

a and of just great It’s It’s lot difficult period. historic forecast right to deal obviously So our are precedent. now. look, a don’t sensitive a we models have it’s -- more quarter-to-quarter,

forward. we what So, this more and share environment it, predict looking it’s with at a point going just when try know we we’re I you to to difficult think know but

in guess, to we of fourth the -- like round first that stopped you just guess. kind have of extra the got, from then, well, after here giving first half words, quarter. It’s your played But, I the you other back should million look as you’re $XXX that you of golf, so I

seasonally billion annualize in confidence, given $XX.X lower. day XXXX. not give little NII X% but Can guide, NII So, that that us be that still the stabilized, a count, are have fair a Is cards big if growth point? you you would deposits starting that confidence

to again, Are So Brian, that’s you growth. analyze that still any you change it keep there? growth? X% going expenses, to then, NII And just on like X.X%

I was first On -- up question. you to Mike, was it the to earlier something on going thing, the pick first

be ‘XX up it talked -- as picked sort we the to about, Alistair variability you if as take of compare to X% it billion, going less that have in said. You of you to annualize expect said, the the and point NII you $XX.X year-over-year that, we range will in growth

exactly So, right. you’re

So and -- that’s But leave you’ll I playing the we ‘XX, through And settle finally cetera. back loan is to scenario are see uncertainty will balances where you you in of you’ll plateauing good see aside out. move from where think as the balances get growth. to you’ll which year move economic the growth those today, about normalized normalized where et the growth, and

nice right. So, you’ve year-over-year. NII be There’ll got it growth

continuing what we which quarter, comfortable said that. sort XX.X%, us, for estimates with the guys’ this in earlier of That’s your at the average look you if the fourth we’ll of expenses, Street continue On is -- on we’re what And down efficiencies. work letting headcount things invest back to good drift and of there, management that provide to takes the it, are. analysts get in and that to lot a

it. got you’ve key the that And going. six continuing and leverage of the is idea operating that of to So, quarters

like or -- you’re part the your above you the CETX capital, simply ratio. your highlighted, And which last well of seems excess then, the income statement EPS is it

that at does back buybacks to mean what and the stock of buy your price? pace desire this for So,

-- is then first the what our minimums. growth, that’s we’ve to We said and been support doing. desire always that business always We’ve above we’re well

path out requirement the to next We’re a year. for on close

chunk shares employee of above a something, increase that bought so, we And expect then to each were neutralizing because quarter and you targets. to XX.X% we quarter, now issuances start we going -- to XX.X% that close back this

So, we’re the back game. in

McDonald comes question next Autonomous with from John Research. Our

to of Alastair, know a we’re here. predict things you I asking lot

credit if might at that do that Just look kind kind charge-off and quarter, the we bit what pace up of like this little normalization thinking charge-offs a of of about moved pace might there any normalization, for what sense have start ratio you look the XXXX? the out and of where of

Yes.

of But that too look credit look to what’s you quarter, down you good next future, due our to far going coming tends past you indicator leading days show not give the at quarter. that the pretty every in card into we’re So, if a XX John. we data

little see can the picked you past XX past days due have due have days a So, bit, picked just little up bit. just XX a up

We’re side, we still well it where tell it’s would the on higher. little were below pre-pandemic, a just drifting but looks that consumer you like

one. number that’s So,

charge -- two little it quarter Number two, three any We of hanging off. totally with around having are was a businesses, But way. them we been while. up that different in fully they’ve respect unusual. was to They’re deals commercial, to for Not a reserved. had in and correlated this ended

That’s commercial to part of time in have number. showed over those immediately looked close But, we they why to think of charge-offs very continues pop a commercial reason So, it strong. like as zero, portfolio looks I stuff any come like given the was the materials. look didn’t a the because in But, what surprise. earnings so graphs the

Brian’s on what on of loan growth, for touched RWA. you where And little a third this little you this And what’s you managed thinking the in just the bit guys but quarter about comments, spigots as a perspective the Okay. on year? you closed bit are

of were loan fourth, translate robust those said see up growth. but opening kind it really in the You we to didn’t

on dynamic growth what do outlook. between and demand to loan what for looking you’re that Thank of kind Just you’re seeing you.

Yes.

do business said quarter. We XX do We in of points last We’ve the had did what basis the we for capital So, Brian us two we’re covered it. added quite we to in quarters, fourth third point. puts open and great to quarter, the the case. remains had in the in capital place. a that

So slower is was just environment in mainly it you’re for QX what a loan growth. seeing

base be growth and to digits, anticipated that year, year slower. digits, we going the mid-single feel things be were led be it’s it’s but And we that’s commercial, led we card, by economic you lending, for case, ago, see forecast A will This in going loan blue-chip down got going like recession. to it’s like this we the by at there. year. high grew talking securities-based be single balances just fact it XX. is about be is might you paid to can quieter. And We’ve then, Mortgage quiet our consensus, look through being

we’re suspect, quieter it but So, year be open business a I clients. for growth will year, our loan our support to this

We’ll Najarian to Please Erika go next with UBS. ahead. go

compound one had just question. I clarifying

saying ‘XX, right? He was NII Brian, or in on question Mike’s NII $XX.X response bless to billion for is, times first The you, did growth. billion in $XX.X NII, X% X%

You that. just seem to wanted confirm to I be with going it.

there’s given saying the you to go that a of I think confusion first were beyond want guys bit quarter? you don’t

Brian. And for the also you, question second is

And going potentially that with that in the us declines so think lot base, deposit to deposits. think at excited of up, of as control company. you’ve thing rates of you have mostly you right? happened. regards a very thinks could the can an because on that And a you message I remains sort this job resilient much I’m the a I it on base of that should also trajectory the you kind over transforming out clearly, from laid like And about what and terms spent give this investor case there’s just has outlook. here? from done deposit invest uncertainty lot we you unbelievable confused one is you are to here that of the time attrition the But, bank seems revenue NII in when be still already

questions three actually it. that’s I that that one. but sorry, apologize, So, -- in was

questions together I’ll I put answer. in think, one those all

to of X,XXX of in and because the the that’s have period X,XXX shut like in open about report went up. you between in where in We still ‘XX say, something actually sort we -- page excited have built work. a X,XXX, We branches now. the consumer difference we go We If from And of out the at to completely business new branches. branches during look where time we were it’s lot back a down cities. down be

favorability more have is XX% checking customer We The an accounts. all-time high.

biggest part business small of country and growing. the the business in Our that is

a that. for And grow provides if to not mid-single-digits, which up, at great you consumer when rates rise a then And that infinite also anchor, and base, deposit slide that low-cost look in a provides base. of year It last where the stable materialize business we move as deposits did provides you cycle, And what leverage. the we think just show very which we that continue that, you is the happened in lot rates great and deposits. on show

deposit households the advisers. Zelle accounts $X Erica, side, But up up world open and a about in the Those a was and country, the investments in X-point-something -- be then history, not in our company. long grown get Erika. from it’s where the trillion fastest not franchise that choppy. something pair to of maybe digitized investment same more organic balance growth business, biggest That’s into going to year in Erica the you going of growing are wealth excited Erica, is high, a the of so, time, we’re up. things the only trillion customer And meaning you, at thing, excited. management And usage biggest X% rate usage engine net -- -- the long, one that’s consumer where is the assets, growing

starting to did You math. said annualized which about be around of might number, of what less is $XX.X backdrop a sort put variability which that got the against plateauing think of the and Alastair basically NII, billion

drive did so, us to base it and provides but which a the of out, good made math And forward. that

business, get of to now got shape. at a to and really a will years in you those the economic fourth ever couple trading so, all through its doing Meanwhile, best then quarter team are start ago the and which we things And good Jimmy bear. invested uncertainty and the

the about increase each overall then the which and of more slow the increases rate customers, down, good that. feel base, that of just rate marginal more rate leverage big we stable stopped slow -- down customer, saw it deposit growth, I rising produced the XX a will of provides and so, quarters or And franchise, and is last like the core until loan -- which -- and we you good after see operating things impact

economy bank pretty else to be excited is and the growing than Because at pretty solid faster So, good its in that’s interesting. growing -- about. anybody rate world a franchise

there. Just Is and XXXX? of the then, in hopefully, investments all NII you plateauing continued the rate that business a to clarify, possible cuts still growth the will Brian, mentioned if drive we from through have

The scenario of rate chips. cuts and rate rises, we basically use blue

sure. It that. on what’s not depends So, causing I’m

or That’s X% different saw something the financial curve say, the the pandemic when back at what engine So in front the years at there normalization crisis for end States had or and get cut of back left of the a economy that. to after for X.X% like the if you end, rates to rate it’s to they United restarted. than

and is appropriately spending being to inflation actually seeing which environment, environment, consumer conservative data being X% right market, that’s low and tight interest inflation consumer because time, different with a a this growth you worry about, consistent rates, What’s what told rise what and good even talking is strong the with the frankly, you’re have are good we’re less is labor now. about a a people in consumer

risen it’s a we’ve of a why is got now, quickly and lot you have that Erika, just I’d about volatility bonds slowdown and businesses think stocks. right other fee-based that’s our set it’s in of asset thing excel created the the a and because business in say so rates management created some -- off

pretty look base So, a we’ve at investment you we’re if our banking from poised outrun grow here. fees. historic now thing, in in really Same lower income, can net we where decline

a where some as businesses pickup normalcy as set we returns, in see got those some diversified of can fee we So, lines well.

Jefferies. Usdin go to Ken We’ll next with

I wanted to follow up, Alastair.

can would about to how continued then portfolio? interest in Thank And securities book. how wondering you just us And if first of had to quarter you. expect that incremental help much outlook for You also million the swap from the of the attributed benefit understand $XXX income from I’m the you your that was impact guide? the XX.X%

Yes.

as at So most we’re in really securities portfolio reinvesting increase portfolio, there in securities point this the not started declining. of the

money preferred That’s using throwing that’s We’re off our first into to it put the loans. place. always

swapped you’re That thing. have floating. to It’s rates. So, any the there, right rising treasuries in they’re up are picking way, we on that impact from the don’t mainly capital

to of And And up. Number so, treasuries rates. to fewer you’re as floating come there’ll go due, two, number just securities securities floating based pick be the higher. and yield one, off lower at swap the continue them as rates see the to going of fewer

pickup the And to going over so, time. you’re see

follow-up, trajectory to of portfolio? we a can helper watch swap that as benchmark from best for that what’s how understand that rate kind just And our

rate. SOFR, Normally, it’s overnight financing secured

Okay, great.

capital. on Second quick just one

You your CETX. in had XX points basis increase

the You did $X or so billion of buyback.

going still rules you’re how about the of forward. bar us capital thinking package wondering ahead Thanks. return of Just with

think Well, one, right strategy said We’ve hasn’t clients. got support to, number things. our I changed. the The Brian

to we’ll just and back number Then buying over capital dividend we and to grow invest plan shares. our growth. going sustain We’re two, balance and in building time, our

right we part now rules. endgame don’t difficult the have is with the think, I Basel III

comment two ability asked we offer obvious, until I take build got we’ll in stress test There’s wait, June. CECL. and say the XX case, capital think, perform And to points much already have So, buffer We stress got plenty things period. in lot through look, capital, point, a I XX to and like basis in points to more perspective. think, They’ll procyclicality we’ve those. a we the of in I’ll were of our this But more basis quarters. At shown and in capital. see go that banks

the whatever with deal come we’ll So, ultimate with. out rules

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

sheet low, lock in up banks trying balance rate with rates so kind your better if have insulate corridor kind just versus lower rates. Good down. the a if easier we decline, and NIM, the we deposit banks something do get to there’s it’s down you not get unusual and it’s drop how bit cuts, we of about of do seen of but Fed just some little morning. lot. of of as a bring a more the about to yourself term kind medium moves not rates Have regional and smaller but the to growing some clearly, of against And it, that I leverage rates a know potentially to thought for much essentially those

Yes.

in I corridor think of but know So, it of thought earnings balancing we we’ve don’t like and and about capital terms cycle. through that NIM, the about definitely a liquidity

significant So, our to making core. I don’t see changes us

We’re trying sure deliver that environments rate operate high be to years make rate all and can in we that or two zero ago can environment. be

at to our the changes the see margin. start can changes So -- you

loans, You out everything we’re with securities can replacing see higher. and you taking them and restriking can see

a got allowed net margin pretty, sheet. consider more yields. the efficient rates that’s develop good us a over balance may smaller, things some we’ve it’s strategy fixing I’d say, here depending quarter. interest at we’ve So, had -- the We, But how to drive on

They’re the past year-over-year. up the $X.X drive see on can XX. NII. and XX% You That’s page the year of those over course billion up

to probably feel balance. responsible like still struck That’s margin, we little bit And So, we means sensitivity. the we’ll maintain us. what of growth that at a asset

our take Betsy Stanley. Morgan from We’ll next with question Graseck

to an color more as Two proactive the the loan on from credit expecting on heard there questions. you base One, there just go year? anything year. or through also decisioning And outlook. of slowing you effects just rest slowing be will get growth is of -- I that you is understanding a through demand growth just in comes normalization I little wanted the more as the loan that on

of couple a That’s things.

come that’s down, to in think cards the frankly, come about the that’s are things those going pay rate, of is at that way tend quarter, the can the up, in you levels, people low cards and XXs. that look to still down. you the still see those to which pay one fourth of seasonal, usage and The If the

paying been one some you of of pandemic. will The consistent sort more mid-XXs. thing the that’s get in the customers And the So, are normalized that’s expect at rate card paydown to through those balances. down kind point, back

has The a dropped which basis loan. points, to is pre-pandemic, lines of XXX come it line not amount usage, or a by up second of back frankly, was where gotten fair ever it down. across so It’s back moved lot and also it is and

So, that you saw.

acquisitions there. borrowing cash so, And how Then way flattening wasn’t activity are things so demand corporates and cycle obviously, seems there bit. slowed out their little and manage down, a and much be to

put are securities-based So, you even like off low. think, XX business, took together, amount it in it a the they’ve of mortgages, management happens, think now business, customers you the quarters row obviously, I loans loan down leverage, in fair I or that some for paid a though then wealth have in balances, something in grown,

do. as the faster think that So -- and is is rate year-over-year growth in what that normalize the the loan we have you’ll in, get that we because we’ll XX% on and environment economy -- digits. be mid-single won’t faster but settles just back We see we’ll

just home the consistency pages And credit We standards show origination see have sort we’re reading are should careful. the and and demand that. of coming the appendix about you that not cars changed things a -- recessions be reading soft equity in like little is back can the because of they our standards. and headlines in of should the what side It’s all underwriting where people we same

year there, worse looking know talked NII? as the outcomes manage and we expected for. expense lot the What puts the the to to through stability And I any NII you and about do than kind What the Brian? it. on side, the levers think on Okay. about through you you’re line you of takes pull have then, on go a expense Got that

And we reason general in been economic drop pretty Well, have cut because always the going have activities is the that rates because will you then we’ve that the good movements at. -- assuming why compensation house variable were people efficiency some just being thought. are the stuff

to off nominal you people to go try get have remember, then, And expense to to we of operating leverage.

leverage. quarters six of so, have operating And we

NII to company operating leverage. down, growth have to the manage we produce slows As a

quarterly from we’d work start investment there and in And of other absorb banking fees downdraft and the so, that types and might expect fees to up stabilize $X billion things.

down to sort we have. the find slowed frankly, quarter, in as because, feel into So, of hired to gotten we hiring our manage came we’ve earlier the always expenses, resignation ability not the about I it think match great very good overachieving. to and -- were we was We ways year, the fourth hiring

we because movement want line slowed that we down frankly, of to back headcount positions to But us a job. relatively the bring that will in have and to and So, that are the -- back to be. start and down, are, it allow only relatively nature high those where the of get rate the

feel ‘XX just going levels, down. technology in good yes, to we we’ll efficiency pull we to frankly, But in in to $X.X headcount activity versus down able development and the be billion scenario expenses for very continue between rate compensation, reduce invest in billion ‘XX. $X.X a meanwhile, about we’re between So

programs. of -- wealth add year, to our advisers half businesses those manage training management wealth in the of second We trading continue XXX all our last bankers. and other management had wealth We program for where across

people. We talented to continue hire young

invest in to that new continuing trying growth the in to we’re of maintain So opening balance cities.

these We’re them branches of opening successful averaging practice. at we’re anybody to you look opening relative else’s are size -- extremely when the

And so, side. why branches down would comes we’re you total yet number stop because of expense the managing that. the And

as go. decision question long-term right we of stuff in But But of some get would be, down out that creation. leverage we’re is that value for could the slow and and as scenario, that it. paying this So, the we’re -- so for you

We’ll next Morgan. go with to JP Vivek Juneja

a expect noninterest-bearing rate if of of on you end continue basis, doable $XX.X assumption couple the with clarifications towards further you year growing year? Is it cuts? the number are expecting what even of even quarterly A deposits the through interest-bearing? about want shrinking? you. do on even question. one, Is out you your rotation at it same are that rate to billion you’re the the $XX.X to cuts Number with is And number assuming? there to NII understand, -- that billion I assuming in just are staying Thank or

that around quarters few fact So, saw to gone has to due zero. That last Vivek, less the impact. less no number said over that you variability it stuff we impact the there’d be -- market just have the has on

saying blue than good to the our and and you they’ve or stuff. our reasons assumptions economy. if what’s and you cited they the growth So, I behind out, because base it’s less clarity. We think come to have variability. roll up the going did careful a be ‘XX everything we happen is on it’s at to All quarter you’ll we in economic to going have modeling the people done then great balances at What think inflation year. you less this out about to point tend are But whether nice looking going next whether faster to things down why with say rates level this fourth the say think get year that with there job people because variability, over want doesn’t chip

a that’s I so, And think reluctance.

three X points reluctant to good you math you why there’s your because where and out because thought all to be could quarters around on I you. $XXX great enough points, are and to move can $X.X grew are Mike’s and the somehow going it tell can people they’re So all that wasn’t places earlier it’s point, in we say. difference. have that would quarter we And have to linked million decimal gotten billion

So, $X,XXX it. stay at customer net what with be wealth when again starting we’ll million tuned stick growth. X And and tell but we know that good checking scenario. good things -- and we in deposits. accounts, growth the new and it’s at balances, matter know and no are you you management loans These what

a Another slightly. question different --

they the deposit the Where gave -- balances. in Can also on you’ve $X,XXX give are in In that that, $X,XXX Brian, past, cohort. is to does numbers a where the cohort $X,XXX doing? below type deposit any terms that? like given how You cohort, you of

of you. all don’t for taken sizing, out. have -- but it average me, same that Lee group but same so -- it’s I say the It’s slightly. but -- right front similar. sort slightly, customers different I’d to down thing. have down the It’s -- of balance of don’t -- But it I’ll they’re that it’s moving very I get in moving it’s in same

part interesting that, The the highest average Vivek, in balances. of obviously, is

from down saw market. means them actually you seen You them have reposition pre-pandemic, that which the in

already cohort. that it early place. that of the I being question, seen have lot of a may So quarter-over-quarter down slightly we to But in think as going take

We the have I’d further additional remarks. at program turn in for no closing Moynihan any questions to back Brian this time. over to queue like or

quarter you all to you. Thank Good to thank and our XXXX, of finish for producing it. teammates

continue We grow to earnings year-over-year.

have in growth organic We Those good XXXX. sixth leverage will and for quarter. straight the operating continue

lows historic The including any remain leading performance quality the to in into time continues in normalized history, period just credit the the strong the we pandemic. asset had to relative company’s company at

what control, to now the do So, the fruit of our to franchise, are expenses investments we XXXX. to the also we keep growth which the that bearing that in is and make drive job and organic good in can control, is we plan

to And Thank you look to forward next you. we talking quarter.

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

may at time. You disconnect any