Bank of America (BAC) 18 Jul 232023 Q2 Earnings call transcript

Good day, everyone. And welcome to the Bank of America Earnings Announcement. It is now my pleasure to turn the program over to Lee McEntire. Please go ahead, sir.

Thank you, Catherine. thank quarter joining results. and review call welcome second our morning, you the for to Good I to release review everyone our trust has earnings documents. had a chance section and They the to during that Investor on are referring Relations call. available will be bankofamerica.com the includes website, the earnings presentation the of

call first of our CEO; CFO, the to details Brian before Moynihan, going to over comments, Borthwick, I'm for quarter. Alastair the turn the our some opening discusses

make remind The to Before and and forward-looking based earnings I may let the may that filings measures are statements call. in are me that risks reconciliations be to results the on to you on materially our Information Factors differ website. that to do also forward-looking cause the financial non-GAAP materials website. subject from financial expectations our uncertainties. and assumptions available that U.S. that refer we materials expectations actual measures, that, on found our the earnings in are non-GAAP and are management's about during current can including available GAAP, SEC are detailed statements

with my pleasure to you, Brian. turn So, Thanks. that, call over the it's to

and Thanks, to morning and of you all Lee, joining for us. you, good thank

the morning, in Slide company's the on halves of history. one X the I'm starting best and income America earnings Bank presentation. of reported This of quarters of first one the net best

delivering monetary the ceiling, control consumer the that economy quarter rate Our growth in quarter had by continuation can volatility this slowing once a slowing operating results and debt organic in slowing debate we the leverage. was performance inflation. tightening It again a and a also solid healthy did things and from growth. include included remains actions that of of central that We on bank spending about that

the lower look at our more lower now, are pre-pandemic, inflation growth, you consistent now spending it customer patterns with economy. As

quarter of to performance. me summarize two takes let details, Bank Alastair America's Before

thank quarter All highlights. well, the I earnings see segments you XXXX. of XX% tax, X, We On second Slide after and grew of of performed want earned accounts clients business share year-over-year growth. teammates led quarter the per a billion organically delivered can $X.X straight and operating over doing We grew to so. XX% strong leverage, all pace. and Xth revenue by and my We at for

We our equity points further X basis and more XXX year-over-year we our strengthened have to balance XX.X%, sheet, in billion common improving Tier $XXX Liquidity than Sources. Global ratio

or common strong at a of produced quarters We returns on tangible of XX.X%, many with that return above. also level shareholders for equity a streak our continuing

Koder's well While markets particularly as there the our Jim teammates clients our DeMare's improve both the in to note leadership contribution us capabilities middle-market trading banking also markets quarter, our has Wendy global investment of Matthew and the outperform made past well market and would Stewart. global and of for industry by people. leadership, I'd the over teams. corporate peers, allowed these our led our years investment investments business performed and to couple as by this strong area have I highlight shares and Both global banking appeared under team, our sales

the I'd These do Alastair. also illustrate points to will like a before additional we the investment continued drive growth. call turning touch to to points few in help and over franchise work

slide growth organic the with on X. start Page Let's

important the On that organic page, we elements highlight of growth. some of

straight now had at every two, you net XX segment business page. see quarter look net positive account new consumer, checking of the accounts. as can new evidence in Consumers opened in quarters checking XXX,XXX You we In growth.

to take our continue Now tremendous to prosper deposit primary accounts and these the across allowing core checking share. are market franchise board,

XX checking account million. progress three last We we've customers XX% million to in years, here last grown and investment card quarter, one we in from year business. pier our year have accounts the core this another over accounts consumer more the than made opened did million-plus consumer credit While XX meal this inch customers the

business aided a year-over-year, new our investment money in and increase reached they market billion of moving as done from frankly so. by investment new have into consumer funded $XXX high XX% balances Consumer our accounts a the depositors

both In banking Global strong more relationships and for XX,XXX Wealth, we Merrill clients. showing these a the of new net advisors new Private differentiation banking in our relationships the model our in open XX,XXX quarter, added Bank, investment fulfilling in and of than

scale. help added the number per XX advisors clients Global experienced In in digital deliver increased relationship. Banking, to at In we past we added solutions salesforce us to XXX days, and to capabilities our addition of

the headcount improve by added ability facing in through increased for improved and also three client and we've prospect new years, net nearly it's and our managers colleagues our investments our tools past customers Over to We've technology, clients. per our benefiting add existing XX%. relationship solutions

we across number scale Year-to-date, same in full and that commercial States, of onboarding is our the to we've the at United added Again, of which speed this clients. year last these X,XXX do year. clients increases over business the added banking operationalizing new ability

In cover, we progress of our across good expense applied all the digital trajectory, in efficiency growth. that achieve requires quarter sales global going managing other trading another markets from inherent To Alastair technology history, our area, quarter are organic our for units. and to of which and growth, is highest we second so saw one our

operating to Digital superiority is dynamics. key our

customer First, customer and resulting it strong a experience scores. produces strong customer retention great

a customers, our position or our bank consumers, are as transactional Second, companies investors. it ensures for they whether lead

the transactional efficiency. least, core Third, it not last, And and balance preserves importantly but as strong of a deposit price deposits. a good nature do

from million digits double last Slide a this digital In with users consumer, first X doing digital on now And is over of active we have can are see progress? You maturity even year. with that So, digitally scale, XX X, the the platform how logins logging engaged billion that are month. on consumer. times with and stage we're our up

Erica natural artificial and intelligence expectations. over and Customer XX% five an first interactions application Interactions billion continues that uses in of be of in in built X.X crossed processing client continues just to rose we introduction. it the with additional to company, past and now the year, with at Erica early it's our language about years use. This learn of was

artificial there, about lot There's [indiscernible] of but questions a intelligence together one our out of a series systems.

We have high build it's customer-focused and highly such and one system is its regulated, to see a application can Erica impact. you business,

XX% and customer of either. acceptance slowed to growth strong they this point, grow hasn't Zelle people they've Zelle continue aren't down year. years, been Likewise, activities. functionalities past using at but grew new for very the of these Remember, around number The desire rates, showing this

the growth. to see continue sales can You digital

We continue high-touch both options. great to and have high-tech

an As have markets and new few on the which part our nine financial centers opening few every me of XX end of included announced year, year expansion in more we excuse that, since in centers a XXXX, new existing our we've of next years, We years ago, one this for refurbished a ago - the plan company. we centers added a few XXX by weeks

Our entrance and into digital success. these markets early is enhanced strong leads by to

are in our expansion reference, million for or Just last in to expansion year branch average for point markets, balances deposit opened several branches each those markets all the over branch. $XXX more per you a give years those the a of

they the our in digitally continue engaged to see to on the management Slide clients go be You X, digital wealth most company. you that can

advice personal driving tools. the Our advisors by our have in led supplemented a way driven digital model,

and You them of tool Merrill private our more XX% the for XX% in providing convenience advisors. digital can delivery and adoption a the client have see rate service in XX% embraced bank, as

few Erica choice. advisors and Zelle client continue new XX,XXX their ago X,XXX just leads Match, generated advisors, clients with expanding our a it's matching A sets. we also digital quarters announced these called to of Advisor has program

are see teams X, App banking and up business digitally. through of engagement area. where clients CashPro digital us the the of last you our the year, treasury can ease up nearly global with from of value CashPro Slide XX% App payments XX%. are On appreciate sign-ins doing Corporate

of can strong delivering growth. business organic every line you As is see,

leading in primary And produces great client making things provides efficient. grow by while to very digital have enabled more and with of doing us America's enabling made with us clients application, operating do for leverage. also to a in and customer digital stable technology Investments Bank our tools, satisfied, that provider. industry base a positions This

of but see our that in identified. which all eight Slide back were of We're and you those achieved the of heart Six operating you in chart quarters row. a continued leverage streak and is better operating X, leverage. leverage growth years the can see pandemic, and those on X.X at growing revenue in now rate in covers Operating simple we've of eight task of expense. quarters can The of XX XXXX. the On a quarters, X quarter the second Slide at

the going and up said, in provide delivered expansion which in sum, are a in XX% was earnings economic us XX% higher that return I continue economy. to continued tangible you shift equity declining As trajectory quarter, strong operating on common leverage the our by with Alastair's a discuss leverage, operating growth we is good In to sets volatile driven and and organic even with that to environment.

net strength to about in a we going better that bit year the think a for our the is talk start you ahead XXXX. interest Alastair and of as about see balance we more to provides income

hear the streaks positions following even rest the keep as expenses all this the operating our both hear and us continue in you to of capital, and for we 'XX, growth strong and leverage. about well of the organic credit resilience trajectory going You're investing, expectations quarterly decline quarters of for in our

over it turn me Alastair. let that, With to

Thank you, Brian.

the to more those. a X And detailed to statement, the highlights of both summary X, income quarter, list Slide going I'm of so on Slide and we then refer presents

in by with the net strong income, and that sales ex-DVA. revenue was interest share. income, XX% trading growth results quarter, billion a in XX% diluted a increase $X.XX and generated coupled of per XX% in net led $X.X resulted year-over-year A improvement we For in

the to overdraft quarter I'd and XXXX reflects in comparisons rates earnings consumer our and funds and the good deposits late is strong, quarter, full 'XX through changes. year-over-year lower of get first as customers. news had bit clients, go for The consumer few a quarter lower thought higher third fees headwinds these it both the piece from our starting of easier we I on headwinds, for next charges We a those first. insufficient was changes policy included commercial credit service on the Revenue and announced

and Second, uncertainty of market fees impacted that market we had lower year levels, as a to compared ago volumes and fixed equity management transactional the income result a brokerage and asset lower quarter.

Third, compared a a DVA gain $XXX in this to in of year loss a the second $XXX net DVA million ago. have quarter of quarter million we

some roughly we out we and for recorded $XXX hedges, sale related put closed million available and security and also the proceeds We losses positions in as cash. securities their

reminder, and our which a as tax-rate benefits just in on ESG investments, the Lastly, somewhat losses offset from are by up other and income. operating ESG those investments show

losses lower So, our a little bit operating of this volume quarter, from bit and tax-rate little higher a are these deals. is the

So elsewhere. been higher without have and often you in analyzing lower considering the have tax-rate to be offsets that the in-turn losses, would operating what careful revenue

Our XXXX. tax-rate to would XX%, still benefit the absent tax-rate is XX% and result for of to investment the of deals, a continue credits, full the of be to credit roughly as tax-rate XX% we XX% effective by year these a and of tax rest expect expected for ESG our

matters. the the in quarter the and $XXX which week last higher CFPB agreements million announced on was included expense roughly pushed the by this for with quarter consumer $XX OCC Expense billion of litigation

Asset is quality historical reflects $XXX consisting in net levels. million pre-pandemic remains charge-offs still quarter charge-offs and The reserve in of for and continued built. billion it was provision million towards expense solid $XXX the trend below in levels, and expense the provision $X.X

saw The quarter XX charge-off and point we only the basis XXXX, was rate points and was in multi-decade a still of well XX low. remember, than basis below XXXX when last X QX first basis remains that's points, higher the

we points I'd also assets. can use and generated common basis return X equity return returns, XX highlight Slide XX.X% tangible to you just on and see on

$XX A at and quarter and a or balance matched to balance Cash maturity are quarter. with $XX Slide XX, billion sheet $X trillion, $XX billion. in for to sale billion securities. remained from our the declining from you billion down to see of reduction Securities securities the paydowns a first hold billion billion in sheet turn ended Let's levels available high and $X.X grew decline balances through X.X% 'XX. the deposits the starting closely at $XXX quarter loans from now $XXX can sales

were 'XX billion liquidity, nearly level. our Shareholders' fourth with $XXX increased AOCI changed. driven distributed billion of Brian offset As noted, by $X above the $X remains partially derivatives still remains liquidity first from securities strong values as 'XX, billion from the and $XXX earnings and decreased were shareholders. up pre-pandemic of AFS equity our first by quarter valuation capital quarter billion, only quarter modestly to by little

change So, XX% there regulatory book-value component per that is year-over-year. in capital. share AOCI impacts Tangible is little the up

the $X.X million $XXX intent During common dividends, last billion quarter. employee awards. X%, paid offset shares by increase our announced in in beginning third dividend quarter, our to the and we bought out back also we we in week, the And to

Turning requirement. to CETX XX.X% basis regulatory improved level from once to our the again, and ratio current March billion CETX points over XX.X%, our to $XXX to the improved of XX adding more buffer capital, than XXst,

While modestly our risk-weighted assets increased the quarter. in

to and the demand in by our we us in plenty points, initiated claims shareholders. repurchases In supporting as for XXX requirement we returned news of improved today capacity dialog the that growth. Also understand that A July no of Fed with minimum and remain CCAR was $XX.X done and balance to and noteworthy, XX past CETX and better on than we've of X%, more ratio update with our dividends basis to ratio while share we've months, our now. results, X% for exam supplemental discussions versus sheet leaves loan leverage billion Xrd,

remains ratio our TLAC the comfortably Finally, requirements. above

X%. grew loan card account by credit now of reflects and growth see, year-over-year. focus and drivers those on and openings looking X% same. the loans Consumer loans average average grew there marketing, levels time. can you increased then loans let's balances, you The on So, enhanced XX, Slide at see can are growth card offers is commercial The growth strong, much higher over credit of

availability saw customer bit driven and we paydowns slowdown credit as a this commercial, from to weaker a any opposed demand us. quarter, little higher from in of And by borrowers

open for loans. are for business We still

some of still uncertainty While loan economic before and waiting remained borrowing to to lift ahead conversations growth client of has seem remain be GDP slowed, as for clients it's solid generally commercial our further. the

basis total Slide In deposit to second deposits ending that's find trends the deposits. left, with two chart XX you several shows across breakout that the the last elements of provided trend the weekly we it's down the at We quarter. quarter and last stability. X.X% seeming the of see of a upper same $X.XX trillion, on quarters, our ended

this monetary good QX tax actions, a seasonality result. policy deposit normal Given balances on the impacts in and the believe we is

specifically interest at three the charts on balances want higher-yielding page quarter consumer, different the each I the to the through the accounts. of top line-of-business. no you illustrate and last to looking the the in between other checking movement across to use right non-checking trends in quarter, the the see chart, and In low the more difference accounts

remains got in quality billion, levels. of $XXX also Here levels our here. total, you which investments consumer than can the broken both CD more pre-pandemic deposits, balances we've in and In rate-sensitive see And balances. they're high trillion consumer still low $X out more above

by quarter debt spend second tax and deposits activity. higher in consumer driven payments, the that was higher decline seasonal In

with And non-checking need rate. billion far loans roughly from competitive into rotated deposits We not chase that pushed the higher. financial of deposits, of yet the at did as within pressure some point some some this see accounts. balances institutions felt about CD's, quarter deposits to we've prices our exceeding $XX And this with brokerage

driven especially and Broadly of multiples consumer in Total basis our speaking, XX consumer remain in average pre-pandemic at base. increase on deposits deposit in investment basis transactional funds our point the balances rate quarter's rate represent to and the of consumer customer those those remains the of end rose deposits. paid our of this remains Most only XX% and low quarter quality by concentrated high Fed to their consumers points, deposits CD's together, accounts. relative level, XX of lower mix of

Turning cash. the from sweep higher-yielding the to also more our movement seem most impacted and parts sweep into normally stabilize to shows platform billion. because payments sheet off-balance accounts Wealth This excess were to quarters preferred quarter, balances have of Management. of relative by and tend And is trend moving lower-yielding down on business $XX to previous modestly most clients deposits. the tax this money other clients these The rate moving

flows. right, now the billion quarter at as the interest-bearing more the customers $XXX second pausing their one our ended balances We've $X range the commercial billion for see the manage At billion quarter transactional first $XXX generally been the banking to overall June. cash raised in towards shift And use in while We to bottom note down have continued billion during several are rates the of stable, from deposits they stability. been quarter. time global past we've the deposits Fed the this And these quarters. before $XXX to that

the their end of Non-interest-bearing deposits XX% were at the deposits of quarter.

deposits really additional make. a using one for moment, Focusing Slide on I XX, average only have point to

relative modest several want XXXX seen the XX% the for you deposits quarter remain the global past and at every than you've to removed five just above to is page While that we right more the and pre-pandemic up pre-pandemic quarters, has for at Fed around $XXX the noted the consumer as XX%, quarters, it been note accommodation, above checking billion in is has consumer some as downtick And past deposits look up up least pre-pandemic. segment period. remains XX%, XX%, banking fourth XX%, as is

in trillion see XXXX. as to the deposits of of note of billion. can fall the the the each billion second-quarter around you a fund at management In And it to at And June $XXX $X.X end in remains loans of high we move peak excess increased needed that left, to the Slide since conversation from excess $XXX quarter year loans. The pre-pandemic began. continue above of last we'll let's of So top XX. pandemic deposits the began balances the

and increased at what right, will that securities the held-to-maturity In than the And day-to-day excess the loans held dated time. cash. is and time, securities in note And see period rest with twice available-for-sale with longer been shift time. FS cash top quarter. the the should also held billion down a over across amount you This to of note of over the has deposit fixed $XXX trend. shorter securities held deposits you pre-pandemic has $XXX across been roughly manner excess and was has securities balanced of in-line in mix expect shown shorter billion come of Cash that end over dated held the cash we the combined and more the and XX%

things. We deposits made yields excess meaningfully customers our a rate securities left these chart, the particularly this expand investments, quarter nature given overall continue that's the built. and in remain and the of than wider deposits, combined two mix transactional Note cash also to the given and of result paid bottom the deposit

Securities proceeds deployed seen With fall a points. further it. stopped cash and cash risen cash book XXX of loan faster points yield the cash than combined funding to quarter we decline securities steady the to the has and from securities basis action, the of and into higher-yielding basis through rates, adding end pay-downs XXXX, security and Deposits of have increased been blend has were less our this increased deposit since has when paying rates. and XXX while at needs, the

a remained points. points, And as slide XXX because deposit the our by securities and balance focuses this on and funded. XXX the has yield reminder, banking basis markets has year market sheet basis by cash has cost risen largely So, over the the past global book improved

last as to - per global customers very and to compares capital so billion returned and supplied XXXX, the The very almost billion shareholders book. we to excluding loans NII higher on want capital disclose to we last capital. our the $XX in led banking quarter third to of our in capital in the year. at stronger other the is second of billion important each a troughed make on that billion, that quarter of $X one position basis, quarter quarter a That's improved I form financing even XXXX markets of point and $XX $X.X which Finally, one NII

position, book quarter rates. down hold-to-maturity then book our a specifically valuation the stopped basis declined $X by worsened to portfolio hold-to-maturity billion XXXX, first from balance in And in improved The since valuation the the AFS driven on more from we in modestly of quarter. the billion XX, book, this quarter, which March the book, market mortgage since $XX point that of is our of 'XX. a $XX increase XX third the OCI negative again it's on The impact hedged billion adding

the turn on NII Slide basis, focus XX, was we quarter billion, to in equivalent non-FTE Let's NII second interest GAAP number net On $XX.X and was can a $XX.X and income. the tax or billion. fully

fully on equivalent. focus that to going I'm So, tax

NII second been also Here securities improvement $XXX markets includes deposit of NII XX%, or has aided basis billion net billion lower interest partially $X.X driven improvement. points by the of activity, year-over-year improved increased the loan while premium XX This amortization, growth yield $XX quarter which during of our the 'XX balances. to billion from and average offset X.XX%. Average by period global rates

balances Turning bearing, X% of driven quarter. and interest linked deposit Global or the of is impact of discussion, from day in mix down increased to NII lower a quarter, period. interest by $XXX $XX.X additional during by into one and partially that's shift the million first NII continued markets the the primarily billion quarter offset

balance driven funding net sheet interest some chose cash due XX fell the we higher yield costs. The to in average a quarter, positioning by basis larger the points and

a position This driven late by quarter's balance the levels. just around higher cash to sheet anomalous, compression, we little quarter believe, first our decision was

scenario A the point basis mix June by was expected book, XXX relative and the negative XX% March shift was unchanged months down-rate Turning billion. on of yield levels plus $X.X at balance change XX and billion sheet no unchanged point XX sensitivity remains that expected or sensitivity assumes to rates. our to next our $X.X short in at over 'XX, at XX, of basis focusing from forecast, asset basis, NII banking a in the forward driven baseline parallel XXX curve and

thoughts me approximately Let from look for the on you year could full same $XX.X the year above as second would think billion. as a be little at full and believe a this up more XXXX, will quarter, forward. we which NII NII $XX billion, level X% give third than so few include $XX.X We still be quarter billion,

And then fourth and $XX billion. had quarter XXXX. quarter, a viewpoint slightly That's with for stability than the provides little around third fourth a somewhere more a for closer better to we the quarter, last and point level, start therefore second better quarter

comments. talk let's the So, NII caveats through our around

year First, rates shifts curve lower mix forward modestly it expectation better are see assumes from months global card. deposits pricing, consumer, we deposits, outlook past now credit driven growth of materialized, well have modest that stabilization elements the deposits interest and of by as the we more continued of out. of expecting us balances as in provided On we'll interest expect into bearing. deposit banking given and and some a an few the modest The the how positive little plays around by NII, led apparent loan rest

Slide to that expense, Okay, for let's turn we'll and use discussion. XX

expenses $XXX litigation $XXX And as million the included from the I million quarter billion, was quarter. second down were $XX that mentioned, Second quarter first of expense.

headcount. the quarter overall a first payroll driven higher trading in and were elevation related costs offset of by seasonal from absence also saw a full-time of reduction revenue expense our higher results. by addition, and Those savings little we more the sales taxes In than

roughly our X,XXX full-time XXX,XXX. at That's to XXX,XXX Now, so months, after summer that welcomed or first work from summer quarter down some excluding our over the January. interns offices X,XXX was into head point good count peaking start in we the the

quarter, will join And excited we are interns who welcomed associates diverse summer Our will new about And next third full-time class with back full-time a many that's X,XXX return the many very summer. time and of summer. college of hopefully associates same to us as the hires last company. QX, interned in in the grads, whom as us leave at

next modest As the head the we even would remain quarter mode client-facing fully for reduction, forward as to look positions. expect expense to of third quarter, we from we a quarter benefit more second in count hiring

notice to from could unsure Valley recover expense record failures Silicon timing proposed assessment the and banks that this expense. add of signature $X.X Additionally, from billion and point after remain losses tax, FDIC $X.X of billion for special the we at the to us, of just

Let's charge-offs $XXX increased we'll to driven charge-offs. increase the losses Slide by credit, higher first turn through to and $XX delinquencies million from now credit XX. move Net million card and was to late-stage flowed of the quarter, as

context, the pre-pandemic For remains quarter and in QX, net credit the X.X% charge-off rate was in card the below X.XX% 'XX. well rate fourth of

that Provision X% and credit rises include continues $XXX an $X.X unemployment that billion in of loan basis million by in to expense that's it build, included particularly a in was driven rate north reflects card, QX, weighted outlook and growth, reserve a further a XXXX. macroeconomic that to on

and saw metrics the both quality consumer, they off asset commercial we credit historical XX, On and our Slide for net we see On And commercial come note a office estate by offset consumer decrease from that metrics we we in commercial were Overall increase averages. continue was an flat commercial quality highlight losses charge-offs bottom, to below remain C&I within first to quarter. portfolios. exposures. real in charge-offs the related

this we've and As less realized than estate as losses years, real this result, a NPLs structure seen loans, and and quite an of we've is around that X% our where our a credit quite area over for deal client intentional office portfolio exposure total low and concentration, are reminder, many been commercial selection, represents portfolio.

a to of In on office write deteriorated. the down second the quarter we handful properties million experienced in has exposure, LTV charge-offs where $XX

$XX We the office quarter million were for portfolio on a provided in charge-offs in exposures office you. pulled appendix Our the of forward quarter. slide some stats in our last first

current well and portfolio the against we believe is conditions. adequately Now, continue the that positioned to reserved

Moving its on in the of lines and their and Slide $X.X billion consumer growth organic rose include invest XX% quarter, last the future. Xth delivered impact from of to strong revenue of These bulk Note continue the the starting while consecutive various our consumer of leverage, that agreements revenue segment good results, quarter to expense with we business of grew operating on XX%. XX results for the earned the while banking, week. regulator costs top-line

card success year were understates the reported the included built in because quarter this earnings periods at billion, both reserves it we While prior business reserve leases strong for while of the $X.X growth.

XX% Much of that card driven charges Brian growth balances, the agreements. overcame added and by earlier. well service growth earlier noted accounts and investment And year-over-year I of of grew the checking accounts organic the pace the decline cost even as noted EPNR is with a as this of revenue as in success

addition reflects about as this the and and wage in growth, impact noted, the and company's increased moves the minimum year-over-year investments to for the the much that, therefore, mid-year in continued the business, impacts salary In hikes think of litigation wage remember consumer comparisons. business expense most, XXXX you banking

advantage fees sizeable and by Moving fees were of revenue equity, year some impacting produced less banking and to uncertainty, lower negative for results the billion. management earning markets, that management impact wealth lower down than from transactional good we complemented from were a brokerage market Slide fixed remains results business, an and income Those us. volume. felt last XX, These asset the on a as little $X

As Brian since 'XX. quarter third the to client noted since produce solid of flows - earlier, growth the strong both see private the and $XX billion continued Merrill and second bank organic

$XX flows in putting incentives money well of add clients reflect we and existing Expenses reflect to the as management of as revenue-related money good new Our billion advisers. assets continued work. investments also reflect mix as business lower a under financial client

$X.X you produced XX, with earnings revenue Slide by the management, produced strong Coupled good see growth operating this driven results with this and expense leverage. billion, XX% banking of billion. very $X.X results, in to business On global strong business

Our also transaction growth has absence projects robust. global business investment revenue seen prior-year our higher of in loans the benefited leveraged wind period. environment. quarter, sluggish and marks of well the is and been on in volume investment this performing business solar a Year-over-year services also banking a taken We've from

levels lower generally, declined, rates more of year-over-year modest on link saw saw We loan growth demand. the average quarter, and and utilization we

that earlier, range quarters, investment of As stabilized noted have the several overall over strong the billion the growing fees a down flows performance billion in $XXX prior the X% sluggish year The deposit environment we quarter, relationships. second $XXX reflecting in X% $X.X a fee banking saw year-over-year. our to billion client over quarter, past good XX% benefits were the pools linked company's the in and

from the expense in absence in as year. held prior including business, for elevated investments the hiring some matters a regulatory year-over-year comparisons second benefit strategic expense of built reserve the 'XX. as relatively quarter Provision we technology flat even declined relationship and and was costs, more year-over-year the management drove in we additionally Expense of

DVA equity The with tensions continued ceiling do. the themes of Along impact continued globe. quarter's $X.X Switching to driven and markets another changing markets. geopolitical central the debt excluding results bond policies banks this and inflation, monetary around referring we to XX, revenue by global I'm growth with had strong to on earnings billion as normally XX% growing we quarter Slide of both concerns, and to

in we result, a a favorable from revenue quarter absence both over leverage results last trading produce year. strong trading made and in two and of the growth to business results. sales where the was performance benefited businesses. and macro the on our marks strong As Year-over-year The past investments years finance micro it continued positions a saw

$X.X XX% Focusing on-sales billion. and trading year-over-year ex-DVA to revenue improved

absence while in the the the improved primarily to driven down 'XX. compared quarter the of partially X%, equities offset X% of revenue-related was expense 'XX. by costs, quarter of by investments regulatory increased and matters second Year-over-year in business second FICC XX%

shows Finally securities million investment create operating wind of the losses sales $XXX company. $XXX and and for on of losses Slide the XX, credits Revenue of tax volume on increased included a that loss million. a all solar other

wind of discrete increased tax-rate but related lower associated a XX%. losses tax volume, solar excluding As and benefits our at deal result and was X%, the any tax our and their have effective tax-rate ESG quarter the in would been other operating

and it So open with for that, let's we'll stop up Q&A. there

today Cassidy question with first We'll Instructions] from take RBC. our Gerard [Operator

is line Your open.

may up was and of the Alastair. the go Good second, thoughts I the as on for today, mortgages of give banks, capital view that can then like residential for Bloomberg your the meaningfully. by you. a Barr Thank own your ratios likelihood standpoint about you holding Brian. new well? requirements there report from proposal say going capital the morning, - us should Any large new up and that morning, Vice-Chair speech Good Brian, a but

stated, think think a I rules I held X a said has have people anything we few is with that industry CETX have deal and been the broadly we ratio. of think like XX.X% weeks, many So by Basel there sufficient. year else, and in is those up I come as will finish on desire we think the we'll position a out to capital the And the

and Our capital, got at plenty it's built so up. requirements XX.X% and currently of we

competitive global is from the our those to actually rules the including world country. does more and, a be industry because best tend for countries, to in lot the and be U.S. So careful frankly the of we've I good favorable the the got think to outside applied and industry standpoint, U.S. here, a all

maintain end Gerard, to those the but the finish board non-banks this think recycles. As some through industry day, that interesting the these get of we mortgage-lending push forward half rules non-banks, watch could the got to have the be referenced, but it competitive And behind the you adopt and up which non-banks. they of the those of classes through outside move asset will that careful of and and the and downside institutions, to got need parity, it's goes a industry you us they've this to in to and, resilience and including to across

$XXX the our loans then and banks about also us slowing economy increase competitiveness in just And then to and overall. levels, enable to our economy, down would But support for this worry you we XX% of thing margin, the billion at want the making capital about do. have second like

So they as to go all adopt has these I to balanced rules. this think be out

balance And good. you Alastair, sheet. as about follow-up, then the talked a Very

to XX change change you just over looking that sheet curve. rely next the of share you growth XXX you decline in net the do in on I sensitive, interest wouldn't $X us, revenue to you when the or basis forward over would What's said balance liability point $X be decrease lead think billion over Can point increase, it lead revenue. you months. billion And a basis XXX you to would outlook think with you're position for the at management, now. make what that would might

has the And us. Gerard, interest-rate time. disclosures our you see balanced of that downside of look risk for idea key. and about and don't us, balance more it's for it's of around I Well, over past narrower years, couple much We've that's the changed at corridor the fact course upside over if it's talked this think you'll a both

NII So at to we're trying longer, for level to sustain what higher engineer. trying that's we're a

be good So, to at terms of lot will We like in that what is position here fashioned loan things old and I think change tweaking won't But of normalization feel philosophy regard. growth. of margin. we're a there will going-forward, a drive be in the from good balance, our largely in deposits pretty just

Very good. Thank you.

Evercore. We'll go Glenn Schorr with next to

is line open. Your

Glenn. morning, Good

morning. Good

in all make anything sure same investment, more points check. been but reasons or flat the you continue are throughout game for XXX always keep Thanks. basically take we to you've do like up of to a Is why relative of But invest. a can you gut coming, I think Expenses the lot expenses life? operating and little area I heard change of over a so, FDIC decade I did to last X%. like as just just no charges revenues one basis issue expenses or So, around the with the wanted leverage. doing

Yes.

which and at fourth think that'll revenues you'll you be your the flatten quarter we it movements because as last gets see out if decline year Alastair So, quarter Glenn, I you to from a out, it as that in look this year, interest-rate year-over-year, strong. flatten fourth you gave trajectory the relatively quarters, flat

where see it or differs we the grow for about might the about can that's it we end data. you the been have faster stay we - then from as we X,XXX, but that decades, X,XXX XX configuration it to to about ability are think now forward, is it year, around relatively way down consistent many but up. branches five different the to from and X,XXX, ago revenue going in we last level doing the they're So, and that years our goal branch We've at expenses over do it - where to had down, and continue a to come time, think to now X,XXX, expense. ability think control is as to when ago move And we to than years the to X,XXX headcount

for, time. decade are those and on, you initiatives a we billion, transactional a a so, the thinking we lot of that we Zelle activity, wealth All saves to technology. to is of of engineer activity you us offsetting saves talk business, $X.X things have billion went lot the lot we then by And to a we're went fight revenue Erica from technology phone should with amounts compensated transactional activity. continue and is management that expect saves of from lot year all - more $X.X by about deposits massive probably what about a of goes mobile and applying in that the

in-line manage expect we expenses with to So, revenue.

it going beyond. inflation in back lower, to we of rate up 'XX that have expenses couple told you frankly, we 'XX, and and as got on kicked to move points growing we growth a revenue we mode As a it get rate back outgrow modest at to in basis to kind then going grow start the to we're will now economy they back flattened sync XXX expense relative be and just growth out, them that the with have to we'll revenue and

this around we the to firm now, to we in that or and quarter. going getting deliver positioned going, in QX. so next XX.X well want the just We and we all headcount this we kind feel are If obviously. work Brian Glenn, look, quarter around we We with said. just place only done like were the XX-ish the add think to keep put quarter XX.X when I what we've we're XX.X feel we thing up would just be first quarter, the of like somewhere in that

and one, where like We've time QX now. sort trajectory And place last idea to be. point, would headcount the compare, that of want pretty about Brian's to an I for good that set that's in we we the inflationary way to we pretty get this to was talk good to end So, number next environment, shaped way up you over XX.X, year when year flattish think the feel to a like so a year.

Thanks all appreciate I agree. Totally for that. it.

We'll from next question take Fargo. with Mayo Wells Mike our

open. is line Your

Mike. morning, Good

morning. good Hi,

X I is specific you long question sectors [indiscernible] done commercial how some the said quarter consensus so did as of NII less specific fourth say as you through and and the to expect you, part nine quarter, numbers of quarter, opening and the it you a Slide the and remark, to give reason see goal third fourth continue, make over and Brian, a we should be X X, think go. positive with positive you quarters is the loan that you'll guess in is XXXX. or then, and, or is quarter with want leverage I correctly, are I outcome] So, that in don't just ten sustaining long And kind that operating can, to your And you headwinds, these expect to utilization one flattish less. quarters expectation. consecutive what first efforts leverage, or expect you you is eight quarter in that then maybe slides the to little heard has that and I operating expense demand play XXXX just is this and sure your a [positive degree third and an you in slides, bit know, down said your Is digital some three a

see you that to raising. right got from it the interest-rate of the second years ago going end asked went a as can of point always fast the is the the just to it out environment few times sort how at goal - you in me we until going of it coming maintain into through we the is when in it you the 'XX you fall you have thinking - our 'XX And the toughest and question falling Mike, stabilize, So you that twist when but shows back let after we NII is about and bottom-line, a of at the which environment right now quarter to the plus the it. are spend to franchise was Mike position interest-rate XX% bottom-line, interest-rate about

gets specific specific operating leverage we you you that that the produce So easier by gave will said, tougher the as expense guidance We'd see through growth, stabilization it sort you and the we're start shaking frankly, to loans to whether of deposits of we recession loan and will expect routinely or not. in the have going be economy a get then should come quarter. and it as through

you've longer faster, I ways. the grew grew, give how environments done, revenue And people and expense so that all feel sometimes context, revenue why of sometimes we've good different it's at tried the to but different and fell and time fell about period what slower very have achieved expense that that's we

in through the not then for really we've So is training face able we'll manage not said of half, hiring up because as good a the a the dropped is and which keep in many and other some because it headcount half inflation. rate us like at P&L as offset key sets the second as Alastair we're us has turnover and working that earlier been that that benefit to frankly and down the people, we of headcount will year indicator the year-over-year leading in of which come

to NII, relates it specifically. as then And

you're confident given banks, little I right. bit stabilization every seeing we're You months, more pricing. guess that the not few last a in said that

Some better. banks getting getting worse, some banks

that So NII confidence more you and stabilization front. does gives deposit on front, the the what

past are just banking in at billion, know payments it's deposits billion, course is can't that Well, at to billion business a interesting, of can't look the in relative I if over other in down global so example, And $XX advantage but look, set results and particular a season, know we I position obviously the Mike. that's you I $XX resilience. But of our client quarter. banks speak think half QX look for our of to tax look, base. we you year were we $XX tax $X extraordinary the management paid billion, last wealth privileged

a operating, in and deck, customer-base. has next degree, showed been focus just the I of engineering that's seeing show is earnings beginning there more -- but benefit that it's the just on always primary transactional from be little it we think again is. to on we we will it the showed slide, was reacting may and last obviously, Fed's see you we across-the-board, be our we're to where Page and But that stability our what quarter So this XX some of quarter. We continue

Okay, thank you.

We'll Jim take from question our Mitchell Seaport next Global. with

open. is line Your

a just appreciate follow-up loan-to-deposit rate. comment have that chase low deposit have ratio behavior. Maybe morning. good the very I on to you Hi,

feels how So like low, about datas can it going are thinking but you stay about think how you do the mix forward.

NIB's demand deposit your How - We is you to has picking-up. mix. are what base CD with thinking respect seeing come you in of are down, are seeing

is cashless bases deposits, they segment the all with balances. cash far think exceeds I excess to cash the one have transactional you. on us loan that, about market. Jim, the that We of have And across do that what cash that cash-in-excess shows market cash what depending for that we that's the of moves we XX each transactional cash transact customer that. what and the the as customer But is, of our and happens think moves for about think us, think Page to about things

in bills lot if consumers while maintain no to as have consumers their a cash, wealthy cushion of pay excess and checking, we transactional that an expenses. a and a it's consumers sort that even it people, have of interest checking, average So you the unexpected is markets low-interest money

what other that that's people we cost far than and seen in which that see to you've is $X.XX, that's have producers, the So deposits different happens. of just

tap and Alastair to said how the the taxes. into big questions much moves tax other a where management as time earlier, have pay-out now In we're - after we to wealth

their is down paying passed point the point to been that and we have a and people still where accounts money as at will payments We that accounts where they're in large and the degree have way people slowly. last look also them has passed to

the like that. XX,XXX peak balance average accounts XX,XXX, from XX,XXX in of the has the our gone and high So checking something a

all higher So transact than and for, and bit pre-pandemic, trillion little of they the a what because it to really but a billion the mix a is consumer go bearing back and very uses data it's interest-bearing it's so that and run to use a pre-pandemic the it's their $XXX say, That's household. now. cash what actually stable misnomer $X non-interest dynamic, time and got this shows and of it that's across you fundamentally base lot customer

through has average think how that those inflation if money descriptions, customers, is, you that's but the around. Checking you'll I deposit mill. provides numbers you are pages because much consumer see is stuff have more great in Page look it more in the the crisp importantly, show checking, And those on more for XX, numbers will stayed we that the

Right.

mix-shift like and slow So is do you starting to feel that stabilize.

second in our why Page Well, we differences demonstrate you don't earnings stable earlier find piece their very That's that got that's balance even show careful on of process if the customer average you. But and people of actually we that it's GTS you data. you there banking excess in of it our show the bases, that's many lines can't it just half page, during stable that. this business And look be it's you maybe then as to that quarter, level see non-interest-bearing show you the data very at it's the I that said we while detail of too, you balance, for half movement why global through week-by-week and see GWIM, Alastair rates other credit what is XX in is in there shows us. did

when hugely trillion, on that's stuff. payroll you $XXX about has But for And consumer bouncing consumer the points at total billion all trillion. And happens a the CD's, and advantaged odd goods. happened it's we $XX XX around basis ended pricing, the that you thing high asked CD's. in and at of only look depending hugely, And have the

those our to are and them wealth what CD flows when asking to give it's the business core deposits have push not customers moving cash. excess over just and our we for we the are we consumer part flows management So this market rates, investment we the then side, are of investment the

very helpful. right, All Thanks lot. a

next go We'll with Kotowski Oppenheimer. Chris to

line open. is Your

among the morning question. other with and just In the BofA, compare for and release accounts at Chopra consent. I'm good taking wondering Yes, CFPB with opened you such you And thing era. thanks Wells? alleged without at what contrast, Director, and can how customer possible last settlement from week what press post is your things a that the And Fargo happened Wells firm happened

the we practices anything, period. bureau quarter. the and not number these went the did Frankly, and through part around, cleaned that sitting then and - then. agencies were Chris, are this we time all up - this the to other from the consumer all of just the by it of that kind it's - had everything are of changed review - when And small horizontal OCC accounts It's

So that that was one.

which time period time that The reflects period?

and changes we've before didn't data then at that, can can made that It And time, administration the but reflects will 'XX of the firms next - accounts current -- the then processes up but time. that and other 'XX. with and the administration go find Curry X-phase in the in review look early part cleared all remember, at look Obama led Comptroller the the of were when at and in those Back they started you the did after Wells testify [indiscernible]. you go in the that to up, Congress Comptroller from was Trump the hopefully, the

Okay. me. Thank from you. That's it

We'll Erika Najarian to UBS. go next with

Your is open. line

maybe back to be you we on come Hi mute. Erica, can might Catherine, Erica.

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

is line open. Your

good Hi, morning.

Good Betsy. morning,

number the inputs, of And big leverage the drivers consolidation operating it like branches. investment know being of earlier. past, operating questions. you in couple leverage, record seemed spend A you that but in quarters driven primarily difficulty] [technical lot consecutive discussed now mean, the I of of on was had branches. the I positive environment when it it's an X One of was of a

just core of that company. you're a you I'm in one be going if - is there investment with this leverage different And wondering spend the would that. to platforms there's delivering if as the of if way So increasing positive agree you're operating

ways earlier. to year, But said I the and periods about different been X,XXX what gotten of from branches, the in It's by kind even of that's numbers X,XXX think time. change. Betsy, in dropped different of last I

as even deployed we so And ones. new

business, check consumer that. we have back consolidating the Remember that affects count digital the down. a with you but bases. exceeding transactions And a process lots pages look customer at activity levels of branches the like markets mostly so don't in all is end to see Zelle long go been speaking of you've But drift continues and you're branches. means by the on And things to - you time in importantly, ATM you're checks. what far and that - if The that to customers

then And it it, your through. so, push and process

operating So to change that quickly and business. overall consumer the continues to in all our costs continues grow very

Our deposits basis cost and operating whatever, very pays is plus still of points of the XXX-odd cost or it's strong.

If digitized, big trading but of markets coming example, was going throughput that - that's are the was for in amount process already through. digitization, as we're where the the terms business, you operational the behind of deeper go straight equity moves deeper, it always what the stuff in doing of

accumulated to annual also management customers' $X.X kind delivered of then customers that home, And time. and the over statements benefit statements getting what's being delivered not wealth to that's that on behind but billion is their

comes bunch thing manage these excellence operational And to so by could it, whole platform, pull the of done it if constantly the work you down. you'd improvement us there pull, are were but people percentage but a a seems people allows a is as ideas, public, always [indiscernible] some of down magic it to of general constant just

tell to go that's bankers has enabled things like and tell us And it prospects business because approach adviser the so saw they are leads. know has about of into intelligence far applied then culling more way adviser the number first artificial or their - prospects the in and to match they to, we we clients a they the do base more now and leads, built efficient match, it, them but intelligence all enthusiasm, they run not an to that's which they're the an efficient which we've so to which XX,XXX our - should to intelligence it with artificial decided future, use statistics you at client programs

adding All efficiency. this is

that more and starting And a slope that is out. the yes, come is flatten then it's opening. keeps that So down of in deposits top reinvestment efficiency rehabs slope massive which But a - that, going. system and a to massive in more and got has over brand slope

your on it for fair? there's as Is anticipating So to like forward comments, going that sounds point enthusiasm in more but you're AI well? your legs that that

we started language now. and do sure that and working could that a be our make can Yes. years wanted we the was on eight processing questions on capability to what - answer natural ago answer They Erica, we every systems. proprietary probably

answer through interactions comes data our to of your last million the in those it's looks it But quarter, it an question, a they an going getting but the it XXX in been have a would and call, account. e-mail, Erica into were that customer then from on and and entering all an a and all and phone started. text, so algorithm them And the it done anticipates answer,

using to in you hear that be talk become It methodology, carefully but tested that But of of that excess experts will you principles - apply. on have but higher all same and is are expanding higher start they wonderful before a new just controlled and that, they're not some But which controlled environment. the about these a is a programs a hallucinate things in keep Erica very the to far data, these functionality. at applied

about. are credit [indiscernible] targeting we way, setting. do with the we that when we drafting by And the a it's it - it those controlled apply, our we very but business talked memoranda offer ways a with All do or that

lot and can Erica, So those it accountability, frankly, built the from and how it it as start. there, be to gets better that works how of things have more build it But still a in out understood was better - in. types has attribution,

with Thanks. look Basel that for just just there's expectations capital with understand we follow-up kind the the reviewing I'm benefits here then Fed, trying the realizing with but there's you question. here, what one forward I X, some that SCB. some SCB to you the Okay. are buybacks on Thanks. have takes And of know but puts and as

Yes.

the industry August. capital stress final the along buffer with rest of got the we in So

have And moving, to wait think to wait and got X then, wait so wait to obviously. for period, we for have for proposed still comment that, Basel clarity. for Betsy, we'll likely That's Then then rule the we So we rule. have the yet. the I final don't final we'll

to We've got well. get share mean said flexibility So we've enough Brian to plenty there's a a we've been perspective. do think lot the buying I before we go it that offset needs shares on to capital. got I of more. dilution. full bit And But back little

to past equity thing we the capital course common over course XXX year, had year, Well, obviously other added we've stress tangible XX the the shares. of XX% and the see So capped buffer add buying the last basis while points. return back you on is past over year of around that

a of to before I the got little want to make decisions. see final we've we So do many like But flexibility bit think rules the too what everything. we look

Yes. All right. Thank you.

Usdin with Jefferies. Ken to next go We'll

is line Your open.

morning. good Hi,

on one to up credit Just comments. follow your question

XX-day So marginally. it the of card dues, looks normalization but is very past gradually, only kind progressing like

holding plenty of consumer Just give still economy having up the cash, the points about well. your

should on you. of we mindful Just of and card specifically, losses anything else normalization be normalization. your just Thank that ongoing view about we think just when credit

growth loan and just think up our nailed look picking - little example, still charge-offs, that's just well you of for watch little about about if mainly rate been it. but pandemic. the I it's bit, That's - you below you Dan, you our bit a - sort a at

asset can and a quality And that. for You quarter see 'XX fourth cards. was great quarter

in place. So idea it that healthy to this back is the consumer still gets pretty a

money way see little a in can see unemployment continuing and You bit spend statistics, to just that it the in that they're can more you year-over-year. the

is feel the been remains the right consistent. pretty the card benefiting I The we've So consumer like now - experience. in That we're pretty it resilient. from case, and

Thanks.

stability one And lower. the in all changes Have through signals charges of service fee are the put all card to the stable Can rate? more deposit the run been of that to some close management the us on understand new you help areas? asset of of those and that, - follow-up service rewards effects slightly Any - side. that in benefits you terms sorry, charges, all card, and we just kind getting

Alastair implemented been the change And biggest we a So there's changes quarter mentioned last in of year. in how earlier, third overdraft set and as in - of and area. work another made the the fully XX-year were

So they're final of little up in post. to It's - the picks a bit pre changes rate. year-over-year just current this comparisons, the run quarter

the at we're or system. required all But through announcements something look stuff a fees think FDIC recent that done and for you the And quarter -- all all the a it's couple others if multiples So overdraft the It's under to I down that. are changes made been we've have of years. $XX-odd and to that compared data, million that. like of

in the it's speak. So to rate, run so

it. Got right. All lot. Thanks a

Peabody We'll to Portales. Instructions] [Operator go with next Charles

Your line open. is

morning. Good

Just X, those average And base were balances flat. relatively Fed, your your interest-bearing was balance up I'm sheet. with quarter-over-quarter. yet quite Page looking considerably and a And question about deposits your the at deposit

liquidity? - aggressively? So desire Was there build so it what thinking balances I a why build an was was opportunity NII? What the to just for that curious, Was behind arbitrage the was.

Yes.

this - So if during last we Charles. industry. to prudent interesting cash like about talked end end quarter, was last build you the felt At a at period it go And to like time the quarter, it of an was for back just of we that. the

an period. And And was - so it that's did. obviously, it's what we extraordinary

continue back earlier, Since to then I normalizing, talked down. as come the that you'll just environment anticipate see our cash about and levels I'd is

all And choice happening. drift that's position so that our to on see and you'll cash, begin with It's that's now. lower a part to

shrink will that that would start imply then, to follow-up the a as just sheet or I'm help would that your balance to average and capital? And trying Okay. the understand capital... RWAs importantly, more

always net and when is should look zero sort shouldn't of denominator impact is, that if really of And impact or a it What No, of period that's RWAs we cash at of the yield, inflates a RWA. low you question it numerator for that the time. most increased denominator. because our interest balances,

So that does balance hurt little your just doesn't NII, inflate but a it bit. sheet

the hurt the will have just work as then that and back NII denominator denominator more NII I sheet look we'll both And normalizes. And the side, a expect environment you should parts efficient we think away get what the grind side. balance smaller, it So to you forward, on of hasn't at any way. in is as numerator on meantime, in

Thank you.

to Erika UBS. with Najarian go We'll

is line open. Your

morning. Hi, call. good missed the sorry earlier I'm I

your income focus Alastair, On a for interest big shareholders. the clearly trajectory, net

interest I'm billion us the first wondering, You you going of mentioned guys you run responding of I sort and that were asking to we're about you experience guess fully question sure And impact beta volatility of point rate? $XX next Gerard's move, that the Does income. start cumulative $XX deposit when would year. what to question billion NII I from think you have net starting that expect the are a there. the narrowed stays investors for that capture $XX if longer, billion cycle? Fed higher for reflect doesn't would a how then that follow-up that And does I to through

reflect betas the disclosures that our time. believe of asset So all we at the

around. year. five of had we what then this declines time we're and as one, at in sense as good to that last We're year pretty for year, But I looked So have It's XXXX. early you of hikes the on guidance me say for two is the confident a forward disclosures. so many always curve, pretty rest too giving part possibly next the the

exactly six And to the feel there's we think and I 'XX. three about months to So here lot how Erika, there. a to assume between take figure out, we'll next just

Totally understand.

rate that rates down exposure what securities So to end year yield versus rates of terms basis. going not billion given $X to for how basis I short back point How the to curve, that would by on get the that drop? of - would $X in trying down $XX.XX guess I'm that divide you a quarterly shape to there is, the basis. next get because full not of of on curve could disclosure long is But to you the I XXX just figure short book, much that that half-half, your billion the that simply much of right, mentioned run out of then And in have if of billion cuts the run billion. if me about right? five it's are of a rate if X, it's year. it end, short $XX.XX a And

just So there. - in know I there's a lot

everything love would I your just So just I on thoughts said.

you it's $X.X But - little. Well, billion. me $X actually We've not this. done a It's say done billion. got I'll lost

short more one. around interest-bearing. number and term as should is, two, B, that's into A, majority you we've narrowed part reason think I large stability number just corridor, a three, the vast we've a securities little the of And this of like we importantly, rotation the Number there's And book. feel about that the got So that. think been it being

much interest-bearing. that have would disclosure And one when so in as somewhat insulated as from we'll have rates a might rates in way we as different be expect that down, didn't than years like ago we come this, two a

you. Understand. Thank

Mike ahead. Wells with follow-up Fargo. Please a take from We'll Mayo go

Your line is open.

of staring X, guess at Hi, I that I trend and trying or or for and XX% to expense the XXXX making at you to good revenue have operating signaling you're for it to versus XXXX leverage. XX% to progress efficiency be that. when I XX%, and you're is certainly, from you're compare that And then X XX%. to that trying just connect least Slides X and the revenues your look But expenses keep I ratio should still at to and that expenses levels of digital get the was and where

and Why these below that, And - from back is, to to get you question the more can't levels disclose long so, it it peers your again, XX%? but the if these or all take? all would I and you've that how to progress. of would 'XX got on at disclosure least 'XX appreciate initiatives guess be progress I have great So digital slides

the to part Betsy an linkage operating activity of cetera, leverage the et of last the the branch that in, base it's about The is our things Mike, is the because has years, and management how X.X operating dynamic different efficiency tie business at us a all ratio quarters and and wealth produce which count is absolute many of reported. we've done. revenue asked the digital as big the for element, a is plain a of

that takeout, revenue compensation to make As you compensation and well major more and past know, but continuing has high. things - the And of percent that XX cents revenue change. a the dollar that's the we're level. which that, adviser try the as the cost to adviser efficient is of on every for improve like the revenue a we basically make And dollar

And improved frankly, still things that. We costs and cleaning pandemic-related out like we're some year-over-year.

efficiency and what mean, to net that's up helps go ratio continue income day. important you're we'll more as the down. come And every So do goal. the that of back work down. And that drive and part business that we to has describing interest I push

happen work application in and again. do across to bottom of investments to making then bringing bringing we the the the it out way the And technology is line it the board. we then the make removing did that and system And - and it

go just best-in-class. But have lines business most bigger management that. towards mix business is other the wealth us, It's efficiency ratio, the for continue we'll you to of remember, So a than do if people. we

Erica out try in or time. of of you could few connection in hours save saves one me should over to of years? And America AI, in let maybe that but next that takes expenses more or a guys do On what highlight you what Bank you it labor. have that manual just a Erica, And if spin save business, the your number could be

allow us same Yes. do more the amount. will continue It with to to

now, is So if remember, to do of the you checking Mike, from number list XX%. think who up about core their customers 'XX

a So more lot XX wages all changed. through and transactions costs not all X of it's that's customers on inflation had and doing with a going of is - million - XX, things, - thing, the flat have base. It's expense we've that that's we've part a month, relatively as been and that absorbed people. a And and the we've and why

is that it - reality and see consumer the back as that flatten out, break percentage cost of the keep balances. deposits, driving which the that you the deposits, of the rate down. it can all a look And deposit back at running page, we if you the of for But that nice is on a maintains then they cost still we'll against would receive

So it. we're at working

with on of in putting bit people put, new little down going Even business XXX,XXX it to decade-plus we're a a now had Simply branches XX every have things average the - that location and an though XX X We and going consumer we on. like quarter. the and people ago. depending comes

going just so And right direction. the in keeps that

operations if technology that team that things, thousand back there XX,XXX XX-odd have third continues developers, for side headcount, you more our XX,XXX take through, across go or that on other flat Now top parties in and the our headcount, group, invest to the down the we in plus another payroll frankly, lines. of

And so trying it we us make efficient. drive in to keep to more

expect benefit. all is a saying have you're So to the right, continue it we and to principles

Thank you. right. All

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

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

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