Bank of America (BAC) 17 Oct 232023 Q3 Earnings call transcript

Good day, everyone, and welcome to the Bank of America Earnings Announcement. [Operator Instructions] Please note, today's call will be recorded [Operator Instructions] It is now my pleasure to turn today's conference over to Lee McEntire, Investor Relations. Please go ahead.

Good morning. Thank you. for call you third review thank results. quarter and joining to the the Welcome,

quarter. earnings are includes release Investor our trust referring usual, As documents call. the of that will I Alastair documents. I'm website, details had to presentation during CEO, some for Relations Brian available bankofamerica.com the first Borthwick, CFO, the the going before and discusses our earnings chance it the the a everybody's review we call turn be of Moynihan, opening to section the on to over our comments, to

Before you and we make during do refer that, we statements let call. me measures just forward-looking financial the that remind to non-GAAP some may

current and on statements are based Forward-looking uncertainties. assumptions expectations are subject management's that and to risks

results earnings in be and to including financial on on the are detailed reconciliations as website. materials actual our non-GAAP U.S. from SEC also materials our expectations website. GAAP differ cause found filings our materially measures, our are to as earnings may well the that available about that Information Factors can

So the to call turn with Brian, you. over that, I'll

thank everyone, you joining us. and morning, Good for

As starting Slide on usual, we're X.

an quarter net of growth third first That billion quarter. $X.X We a here increase XXXX. in of the And months another X earned of ago at billion, delivered XX% was have Our America XX% third year $XX.X over strong the the is quarter. income. Bank for we year, over

across a pace at We and all businesses. grew clients accounts and strong our organically

of an our XX.X% we against our nearly discipline. Our a of quarter basis current strong the our and Equity minimum points to leverage Common Tier X operating about XX deposits, X.X%. ratio increase by flat. was maintained improved saw We level pricing in We a in

maintain sources. $XXX in We continue liquidity global to billion

on also common assets. of a X% equity XX% tangible return shareholders, for a return return and on our a We over you, with delivered good

what of in note the we quick see a Just economy.

year. We in a down. spending customer our slowing see checking of data, next middle soft that million landing, their our the predicts of a Our see with XX in economists trough team we customers,

that can XX. Slide You see on

X% quarter The third year's over last was up third about quarter.

of XX% This this would for increased is the the numbers Earlier that XX% over and it the to been in increase level And XXXX lower economy. growth round year spending That entire a is consistent with XXXX, XXXX. the 'XX. have period year-over-year. saw X% we pre-pandemic consistent low inflation, with from year, more

spending is As we that holding X% the moved into level. October, at

a but more growing, consistent with economy. basis growing So at low growth

X. of Alastair provide Now cover is a and to turn We let various Slide highlights, to going lot me this.

Our team focused excellence, growth as continues operating keeps on to us operational we organic Slide on digital driving driving X. few words which on and A to focus leverage. organic growth, flip progress

quarter we net Consumer, organic Every In business X, new more segment XXX,XXX accounts had than in this checking quarter alone. growth. opened

also We accounts. opened card another credit X million

and more this growth. we good growth, our new year, up accounts last have than loans last seen straight net we XX% have We've year. In checking We investment business small business, from did small of account XX% seen XX also quarters were third year. loan quarter,

for new than and quarter, this needs And investing added in franchise. accounts our in XX,XXX our Banking in and In for Global new alone. business Private -- business opened fulfilling teammates clients. was quarter, third both bank X,XXX the to Wealth, credit That extended small those $X.X consecutive nearly billion America net advisers banking Merrill to more small we the relationships

in year, In combined across advisers. increased spectrum flows. total gather the GWIM in past our number the of and in to wealth have billion Consumer Investments, also We they $XX net

is the performance is a In increased products low, that full records to more establish X,XXX year new banking the position. Markets, added Global in detail the for to added new year. added business its commercial team, Banking per relationship. we we little see Investment clients That more while Global in moment. continue activity cover and we've our and last Year-to-date, Banking clients. going the of number than Even to in In to a team hold our #X continues firm. I'm we

you digital provide Slide We X, move the banking you the continue disclosures. industry best-in-class As in to continue lead can engagement can to volumes to digital and the see adoption increase. and

XX. of find in on can line the by disclosures and Slides XX, business those appendix You XX

great We these with from are also these parties around us third continue leverage. to and top valued allow capabilities capabilities. Most our and customers, accolades to important, expense by grow receive clients

a Let few you me examples. give

our clients maturity Our of double scale of up record quarter. into the year Customer were logins this prior. Even Erica from this times billion Consumer digits X.X the And of XX continue Merrill expectations past and the with operation, use stage users, CashPro we functionality a to logged to the almost added more XX Consumer CashPro app Banking corporate benefit artificial up clients are clients XX% million to months. intelligence. XX%. from with in our up recently help than sign-ins that Erica business at app

to Zelle XX% is and year, move are a Likewise, customers Zelle continues levels last users becoming transaction grow. way money. meaningful from the than up our more

withdrawal write combination checks. now money a will sent and where of transactions nearing twice the checks the exceed customers ATM fact, written rate with In transactions. We're Zelle send Zelle the at period they

you safer this leverage, X. move All across efficiently, and it you that put the on of help Slide drive that strong gets faster, can lines together, customer deliver the all capabilities When of helps these see the business is and feedback. slide, you that story more us on operating client and same. As us

company. this for through leading And going is tough as few net quarter. last streak driving be of drove acknowledge interest income. a you before quarter then quarter, the quarters nearly leverage operating We years this we pandemic. more the to in to We leverage of had every for the a leverage our strong X navigate trough we've record in X-quarter operating operating have We recently, again, an

to on than managed faster we basically change see quarter, you grow X, even Slide percentage year-over-year revenue the in our as flat. though expense terms this dollar is But can

managed we make you headcount down expenses our in told help we we to January, in our got Now line. sure

Over the to All of the a resignation headcount from a had low our of company. team meant that to record XXXX, that moving current level seen, we've a to XXXX, in course manage attrition down. harder great work

They did it.

is now this headcount a Our in even for peak grads X,XXX college the X,XXX addition down over of FTEs with fall. January,

from large quarter to billion special without we've $XX.X As the $XX.X by an you've expense done a quarter. quarter this this $XX and decline way, X, in in And X result, to billion seen layoffs. charges or billion

again quarter, excluding special FDIC the fourth any course. assessment of decline Expense in will

to billion We XQ. in expect in report $XX.X expenses

than Now thought interestingly, the from a we in of last next and do earlier fourth us year. could debt is up year. only is expense sets up for around guidance This stronger year X% nicely we quarter

also left focus the deposits. the better-than-industry this breakout deposit the X Slide at weekly let's you of of gave upper the from We results. total on see chart the is of also. trend hand, and X third you can trends should a In last sheet. the gears, ending shows these What balance deposits. basis across $X.XX quarter X you up ended note quarter We Shifting cost on trillion, quarter. quarter

with, with investment grown and rates rewarded all cost. reinitiate superior for has mix growth higher team customers with cash, their or Our share deposit and

alone, transactional XXX is now to XX that when relationships, deposits, $XXX deposit remember paying we're note quarter's the last importance our points Fed upper remains [indiscernible], quarter. basis funds basis right deposits. of about the up nature there's see with X can in you relative in points against billion average you rate. And deposits. low because The of spread in from of $XXX You'll all-in many We things rate billion in you interest in think the which Consumer. for Best the that noninterest-bearing the the low remember

cycles fall, past very discipline see we are current positions pay of advantaged price those in mix America's while rates all much deposit would transactional that competitive with rates the seeing cash I accounts the will rates products This particular also a cycle us add higher Bank we also. maintain yields because the the down to compared and businesses, across of customers come and higher deposits. if to excess

In in and no load at chart, decline. $XX top Dropping billion the accounts the you a balance right trends. checking the Consumer, look movement difference through nonchecking into higher-yielding of if the you business interest the Note saw the and between quarter accounts.

] of balances than [ we You in more pre could low rate-sensitive deposits. $XXX $XXX In Consumer the In more total, our in balance also billion see this Consumer is investments levels billion broken Consumer pandemic. in out. alone, had CD

quarter's the investment high about rate increase paid Most about low, basis XX were the transactional driven -- and high-quality accounts. of transaction Consumer in total the on was CDs Consumer points. concentrated very is remains It are the deposits. deposits quarter which of percentage by The in of deposits XX% rate

deposits the Wealth have the We replaced generation note Turning flat. cash Management, products end new to $XXX commercial Noninterest-bearing deposits million quarter. customers of bottom deposits transaction money the of Balances their ones. past $X were billion of Global balances and sweep in higher-yielding slowing quarterly around accounts use off-balance by grew XX% by are lower-yielding flows. deposits quarters. the down hovered previous billion deposits saw into and from and generally clients sheet to trend for right, moving the were the the preferred $X and of manage X Banking a our deepening. account These were at At

but let me on the rules. a balance few to proposed the moving sheet capital with thoughts capital, you Sticking give

the over our capitalized It's now proven the of old, aware, our ever-increasing strength tests using harsher is banking source are and a test -- economy. have you its scenarios country the well industry that is As highly sufficient. in in United for most are capital most Stress a over the States profitable banking years world. dozen group

But to we're of industry consumers, of the risk. American are the working, be we're the double accounts our of pandemic to are they'll that Banks And proven disruption or March our a hopeful part and banking as trade-offs to in more with and those concerned, many year. those this change. and far add debated. rules our to and agree there as being COVID market and because doesn't increased reduce parts rules are proposals trading the of talking have recent lending the during Business We capacity capital solution

how assumes in If don't, as you our they proposed the about rules. today any This they impact inflate risk-weighted can us? Slide The to event, you may If any rules proposed interpret they affect XX%. changes. we they're go would those by proposed expected But assets that X, show will not. without

$X.X rules, we'd the more I in with else risk-weighted quarter's against the $XXX So changes this trillion, if end RWA apply that billion of inflation if up nothing assets. means, about

dollars and hundred the increase nonpublicly of biggest would investments in couple really is The in operational RWA case, next the increase RWA RWA. In would be our wind. tax-advantaged The exposures. in about category solar equity mostly fourfold in Divya a be biggest that against traded

Looking the on hold January to today X.X% at on RWA capital XXXX, X, held on the we capital based moved minimum were X. that to the against side right slide, is of Tier XX%. our going that I'd But charges, Equity our to remind requirement come you in effect Common on G-SIB inflated in

$XXX So as billion, to Holding quarter finished $XXX with that XX% today use billion. going the I'm means requirement. a that third we

today, more excess capital. billion $XX than So we have

the are proposed if billion in we under we would those for from current of 'XX the middle to Basel The proposed need remember, the capital. assume let's $XXX Now phased in to changes phased in, through proposal. as used total call a When in, fully phased 'XX are fully you -- full. going 'XX have changes

right-hand side the if of upper that $XXX we're at billion. Now see today you'll on you page, we're look the

the priced balance X to quarters on appropriately we assets tangible the has. rules, have of a a bottom our required at just the sheet implementation kind period. hold equity. return the you chance of company last look optimize this the common we improve of But course, we'll that we'd And So if have generation Once to capital throughout and see to page, of understand buffer to in capital the you today. the build the course

I Global business Alastair, that we I talked it Now Markets That's business. the turn highlight before our over just Global year-to-date wanted represent earnings about to XX% over to the Markets major platforms world. one top years. company's one of that capital advice firms is of the a in world. providing It's execution market it's the one what and do handful due, can every and in around the markets many of 'of

with clients investment intensity more Jimmy grown of reward DeMare that in strong grown business asked the are average ago, for and past with months an and and That's This years the this us has here business around consistently, and revenue allowed additional business. growth. pandemic their have done balance in appreciate stands investment the us the produced they've the X We've revenue and grow XX% sales X efficiently. it over trading now us the to into leading the higher of but the sheet XX than business. years

also continue to businesses Returns, And of through these capital if XX% to we exceeds XX% capabilities. business, also Global industry-leading Banking we many generated our effective capital. take the take cost clients on large, business. of -- our corporate show returns management, cost with as combined the by capital even more This because and allocate the and to advantage combined that

through that, quarter. over With let turn to Alastair? walk me the call to Alastair the

because not going highlights on here Brian spend Thanks, we that Brian. XX, on we and the Slide lot Slide X. time the show present touched I'm And statement. this of to a income on summary

we For double $X.XX of in quarter in net the by share. in management investment generated $X.X of last interest sales X% trading revenue and DVA, with from income, excludes brokerage the revenue per are of led The our billion up net increase Both and results, in year-over-year X% the growth in was in and a resulting a driven income, third diluted digits X% strong quarter, those increase year. that improvement by businesses. coupled

our $XX.X for including presence second team, investments us Expense we of reduce [ and center included which financial quarter the discipline marketing physical the quarter, for from from costs even renovations. openings technology our as and build-outs, to continue ] allowed billion good planned

quarter remains stellar, for of the million quality billion. expense of $XXX Asset $XXX and charge-offs $X.X provision million of That was and build. consisted net reserve

pre-pandemic charge-offs levels. remains below Provision and expense reflects toward historical trend in the continued level

of also multi-decade Our low. their basis second points, XX 'XX higher the quarter, points And the charge-off fourth quarter that rate and XXXX in was reminder, saw XX quarter XX-day below level. as that's we the still delinquencies basis a a 'XX. below than X points basis fourth was remained

Lastly, investment X%, or tax get in And QX investment losses the mostly our higher volume of we reflect other driven can ITC, tax expect rest seasonally of was projects into when rate placed the quarter this renewables higher-than-expected by deals for year. service. income credit, these

Okay.

at Let's you from $X.X sheet, turn on And up see that's $XX billion Slide the to trillion, second the balance the can XX. ended quarter. it quarter

was money held and here. a securities. put driver not cash. So those The note of rate high, as billion lot $XX increase short-term reduce and to chose levels for With in so just increase of cash same essentially available the this T-bills the the to into quarter, a we cash are the some

Our at cash high billion. $XXX remains

above $XXX quarter noted, down. at remains saw addition modestly liquidity maturity 'XX our to Brian securities second In very down $XX pre-pandemic those the billion still as And quarter, as in another billion matured level. level cash billion, from hold and approximately we change, that's to paid and securities strong remained the global decline sources excess $XXX fourth

quarter earnings distributed offset capital only $X were to shareholders. from by equity second partially increased Shareholders' the as billion

out per our common dividends the shares to share we in the book paid regulatory both modest which XX% as employee lower, $X.X is billion in a in in AOCI impacting quarter, bought and the cash was capital. modestly small impact year-over-year. of $X.X we back value $X well During reflecting awards. billion a billion value as hedges, doesn't decline AFS offset flow Tangible securities, change up CETX

Global RWA our noted. XX.X%. ratio current basis Markets our loans declined Risk-weighted our $XXX as Turning from lower. X.X% moved well assets CETX It's requirement, to as XX, improved XX billion regulatory improved both mildly and Brian points level capital. CETX to June to and above

versus was requirement ratios which above and well bank sheet at Our LCR and ratio supplemental above a remains metrics leaves capacity leverage ratio AC for minimum balance X%, of XX% remain growth for the BAC minimums our well stronger level. requirements. our

XX. average than as for Let's this commercial borrowing And decline offset card on demand now balances looking on at in by Slide growth slowed credit loans our loan a growth. focus more quarter

among costs. So capital lower solutions. also accessing commercial lower funding in impacted loan borrowers commercial balances saw repayments market And other utilization that term by revolver to higher demand we were

and Focusing for Slide using a moment on average XX. deposits

comments, with the average quarter deposits up Checking are 'XX, just up XX%. earlier up is Relative Brian's Given I'd fourth see comparisons Consumer XX%. Consumer pre-pandemic page. comparisons. to can you segment note XX%, other And on the the

Turning to Slide XX.

the Let's have of of liquidity. book, the slide couple of value can extend $X.X fund you way the management a needed our as to $XXX fund The around excess the of we pre-pandemic over magnitude excess back extracted trillion in high-quality $XXX to from can today. our course deposits past of deliver we value excess to to of peak the the the size those it conversation of in loans and that we've XXXX. of as serves increased a at remains of billion of This high deposits deposit have shareholders. the excess of reminder billion loans needed quarters our to fall see, And

accounts nature investments given an value we securities trillion maturity $X.X always and additional late increased so In from stimulus And to mix the securities XXXX, a and going deposits. cash of maturity. for we sale extended in included has for securities hold our customers' made available we into remain concluded portion the we period, to of we was That that liquidity hold XXXX those in to excess of could client deposits. core lock balanced and these

have above company. securities, and need to then your the Note run the cash hold the to how to And we we draw actual just the split level of the I term shorter-term attention cash investments maturity and securities. in much available-for-sale just

it's less short-term would this for. treasuries. duration cash XX% 'XX of note looking of combination the just give us page noted is the and the mostly we're on third available-for-sale as to And X the about the months available all the the represents securities sale, than On of total we for quarter in balance

if and to consists pre-pandemic, treasuries. and just ago, than over in grown little $XXX And billion look we years billion in was $XXX in billion of X a currently. had to peaking it the peak about driven from will and quarter. Other. down X Hold about from $XX mature mortgage-backed Those billion, billion That at from $XXX decline we're $XX maturity to falling peak all few at That securities a the book, billion securities billion now peaked billion more the of by $XXX in years, and and from $XXX last $XXX now mortgages billion $XX million billion $XXX billion. hold-to-maturity $XXX reduction

loan into have happening past and higher-yielding has proceeds these about mix deployed for paydowns needs this less over With quarters, been point at assets. the XXX the shift benefit been a funding several security from cash, split basis

cash combined increased rate security it's of the to in the rates, deposits. X%. the the the paid third 'XX, peak basis on Given faster and of up than risen quarter more has size portfolio It's the yield now cash and than more XXX risen since than points

In it's basis XXX for fact, today, we points deposits. above what pay

by billion. and same that worsened hold we period, grew valuation the book we $XX valuation X-decade of global billion. quarter, the in of regulatory addition. hold-to-maturity mortgage decline remember valuation in sources billion this year Comparing that's floating From have $XX are it to of perspective, excess ago a a And experience did that And liquidity also, context period, largely the a in loans the of $XXX the time and high. reaching trillion in over change $X capital rates we rate, in

to higher the The which billion, Slide billion QX that third a together. quarter, 'XX we on quarterly billion Markets, quarter this every is or excluding over of gives quarter the of make at move $X.X a XX, $XX.X and in net entire that 'XX Global interest I'll the we troughed investment final compares to as [indiscernible] income, sense each in period. which $X.X basis, disclose here, improved one NII [indiscernible], comment

Okay.

to quarter's NII expect focus about our and call, forward, performance basis. and the XX $XX.X FTE to about QX be path now NII over quarter, I'm talk to to for an turn that. we use going $XX.X last the to Slide guided On we'll billion past billion Let's on

turned guidance. quarter. better an out be third NII And Our basis, performance our $XX.X FTE than to this was quarter billion on

year to We be equivalent, QX taxable expect growth will versus NII fully billion and per XXXX for in guidance year. $XX increases around that XXXX X% full our

of of modest fourth We this anticipate the fourth quarter then in believe expected we level, in billion next of quarter likely quarter we news see to and good compared NII believe will or the we can half NII level around hover the The grow quarter plus [indiscernible]. around and will billion get half again time NII middle up of single believe XXXX, the in minus XXXX. fourth $XX to low By the to is XXXX. we the of digits of growth $XX year, begin the first trough we fourth

it I'd I that an curve for second includes and just It a includes the forward modest the has half interest of and of cuts into deposit caveats note of moved provided. loan It materialize half in rates rate assumption XXXX. view second XXXX. expectation also growth the an includes few that forward around

of our this driven from to offset million yield net year-over-year the NII, balances. 'XX, interest on extra of million the points billion offset yield by comes increase by by again deposit of interest, higher net benefit On partially hike NII $XXX a QX, or and pricing. deposit interest rates And quarter was improvement lower improved basis from from NII a X that of the linked-quarter rate points. basis nearly markets comparison, and X day while improved increased higher an global third quarter, X.XX%. partially $XX.X $XXX X%, The an Focusing interest was improved

book. the our and was basis, rate basis of NII shift sheet relative short basis asset point a point $X.X over to expects baseline XXX by change XX The on sensitivity XX% curve $X.X no of September parallel at our that billion Turning -- and is expected forward banking to down the And from balance focused or yield benefit in forecast, XXX scenario or plus rates. sensitivity the assumes was XX billion. next expected driven mix levels that months

Okay.

Let's expense, that that a expense our to with achieved of declines XX and we QX sequential use down our discussion. $XX.X $XXX We trend guided previously and in turn each million we quarter to billion. year, we'll the for Slide expense in highlighted you to this

Additionally, we expect to go $XX.X excluding the hundred couple down any million quarter special another fourth of to FDIC billion, assessment.

our the That million would of compared we're especially of by proud by starting $XXX by $XX.X quarter billion, regular expense work in alone year. of to the quarter insurance fourth the considering mean $XXX only And million of fourth this expense 'XX, than would X%. increased be up quarterly less first team, that quarter or FDIC our

So QX. without would flat in we be year-over-year that,

was the by lower expense investments and in in headcount, quarter inflationary this decline from somewhat reduction driven offset second the by The litigation costs.

full-time down we Our to X,XXX-or-so the campus into the And brought hires addition includes second that X,XXX company. of headcount is XXX,XXX. near quarter from the

the So at work slide. in team month that's you across here end. left past good peaked January the of we at by year movement XXX,XXX see the the the bottom after And

continue more next As notice billion of of headcount for Absent and far. experienced fully to the target year possibility. expense reductions, the expect the benefit special $XX.X from we a quarter the assessment our the throughout quarter as third fourth add decline from $X.X FDIC quarter, look to expense that, we'd we'd proposed expense so will billion allow that forward to

next that up set for us to well is year. All going of

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

billion $XXX points QX, outlook rises reflects card fourth north an include net XXXX. in unemployment and that to million a of during weighted rate it remains XX that 'XX. below basis that It a build. reserve For to $X.X on continues to in X% was pre-pandemic included QX, context, charge-off and macroeconomic expense rate the of rate in the basis the credit X.XX% rose X.XX% quarter Provision

just quality for highlight On off the and Slide most historical reduction as fourth part, see net the the remain for remain metrics below metrics both quarter, we come second XXXX, XX, our an Consumer, they we in mostly to on by declined of example. portfolios. XX note And Commercial delinquencies quality driven the office bottom. credit quarter asset continue our consumer XX below And we Commercial that write-downs. a the charge-offs from averages. the still Consumer and

reminder, been credit structure as and represents client portfolio that exposure, risk to loans. total X% represents less in CRE intentional selection our this We've a many deal X% And and and helped exposure concentration portfolio. includes of our loans, than around which very and office of years, that's over us mitigate

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

of our book our appendix, quarter. a we've the the perspective in all And loan last XX, our provided we We've also derisking and can XX. those of XX and view on included and current included of historical and you net XX, commercial see real estate charge-offs, office portfolio Slides stats

Okay.

to of their XX on business and results. various move going the to Consumer Banking. with start lines Let's on I'm Slide And

growth delivered operating and X%, the that its while while leverage, of quarter, on to revenue future. organic continue X%. Consumer $X.X we XXth quarter consecutive line invest For billion expense the good top the Note revenue earned rose grew for

costs future and accounts for by Reported as driven managing noted is their underlying business balances, the growth. level. to the the investment PPNR return in revenue earnings well Brian driving of success expense checking pace card Much accounts, the as And X% of earlier. declined the and this growth as organic continued of business reflects success credit of we X% believe pre-pandemic investments year-over-year because continue given costs, by this grew to year-over-year. understates And and

in on decline Management results Wealth from earned from more and We than Slide from higher $X to a than last due results, costs, which we management. year, a to are billion. little fees AI Moving more deposit down offset produced higher good These XX. asset

While the advantage lower a a our banking this stream good it world-class quarter, in NII of and revenue balance offering, in us. business $X.X provides billion and derives for competitive from

new to of third of as clients and business mix work. continued Bank well technology putting produced see from and good year, the their and our reflecting Private billion flows investments client the reflects and the growth, Merrill investments. both strong continued noted, Expense in $XX money to capabilities of assets money last existing as since Brian they quarter add As we financial advisers management solid organic as

good the produced operating billion. has $X.X you XX, leverage. results. Banking produced to billion, results year-over-year solid expense Slide business with growth On strong earnings in driven of Global this see with business by $X.X Coupled XX% And management, very revenue the

Global or Services, robust. our investment investment quarter, projects wind Treasury a well volume GTS, environment. performing is and also been a in of this banking sluggish business business seen We've and Our has solar steady

third growth loans estate position XX% and And a commercial reflecting this our have million revenue also of pool a over growing the investments investment impact result, leverage modestly performance. of as markets. where geopolitical globe despite that bond we ] a of as growing we to equity business. Switching on improved were it certain as reserve continued marks overall in banking $X.X normally policies was another on Slide businesses, continued Year-over-year with quarter QX, XX. in I'm a outlooks, our absence #X banks tensions had troubled to as And changing The and prior year and The well results of earnings to held real year, do. and in company's record to FICC a benefited Provision strong growth $X.X in given referring central was billion as year-over-year, [ revenue we driven performance both continue billion industries continued inflation, quarter quarter, XX%, strong themes taken fees $XXX equities. ago down in The DVA XX%. nearly team the the saw Global Markets period. excluding outside around monetary to from prior on the expense have credits reflected by to release of our

primarily DVA, teammates. and to a driven quarter FICC $X.X revenue last X% and third that's sales billion, Focusing trading, equities at improved record improved expense of on year-over-year and investments year. to our for by X% improved the Year-over-year technology. X%, And third compared $X.X equities people for billion. XX% ex increased quarter

of Slide All Finally, XX profit shows Other ], XX [ million. Slide on $XX a (sic)

securities, the second on security available prior operating offset credit solar partially period losses and wind, by sale investments the revenue tax of in driven by affordable So housing. improved losses sale absence from and quarter, for and higher debt

mentioned rate I in effective higher-than-expected tax a of and our which X%, recognized upfront. As are the the was quarter value of investment deals credits the earlier, reflects in tax that volume

tax a small We tax change. discrete also law from a expense to had state benefit

rate wrap discrete our we tax our items, up up would FDIC X% special year rate, XX% expect discrete special end Excluding full any renewable expect as XXXX, in as range. XX%. be And tax benefits, full we such excluding that investments should tax year we tax and to other rate assessment, the and the

back We this do far every to that again earnings We've summarize, XX us digit of expenses earned grew year we double NII on to including aligned expect capital down so with expectations. proposed built than returned capital equity. our shareholders, costs brought dividend guidance rules. CETX, we reported quarter our we basis return for a above year-over-year. So fourth XX% positioning $X.X and the common and We to that more well and tangible expectations, managed increased year, points billion X% full in We in increase. was the our we our And in quarter.

for And session. up was the in I well Q&A it So think was quarter. It strong all, David, executed where all that, teams one with it we'll against responsible our a growth. open

we will take Cassidy from our Gerard question RBC. [Operator And with Instructions] first

to Brian, can you thoughts. come your back

next the the you guys very how actually obviously, look out in X% hold will years down strong could mentioned of X% are about levels thinking spending X year, from year or When you the spending and economy ago. from hold right here? do troughs holding now, the consumers Or you of at You're middle you that could a talking Consumer X% deteriorate think you spend? Do number? think your you it that consumer

events, external the which obviously change there's change in the -- the could dramatically. situation and is globe one Gerard, think, I

-- with but place, think doesn't of the out so is now inflation. event those they're -- spending just that And doesn't a take consistent pathway that -- lower given the that you rate kind that

in of X% the beginning around the economic end is teams end So to 'XX. the [indiscernible] of at the in return team's comes of projections structure a down next 'XX. embedded The target still rate X% but stays our middle year,

would towards the that And so then the inflation it back and -- is economies getting down, growing given the would I think economy be coming still trend growth, hold steady.

they a pandemic now, that's And and get then couple ebbs of the And sort of the people of bit paid kind what October, the August just the of the this came And more, you've years pricing that spend at spend right September level. the a more up. of all kind -- adjustments month flows through and have little seen just so out it's been X.X%, and system. you it, steady, pretty goes they on. within into And into last X%

lot travel. mean goods I lot you a What purchase, had a you by of of then is had

that's leveled return-to-office increase and a an spending about year. fuel prices around had same the that that gas a they're bounce they on last drop out of track of about and -- You We can buying All same of kind the relatively spending. lot system, basically, people including money and stuff. the amount it's of spent in

the see. with I think, low reaching target. So all what of of growth along big effectively said, at Fed that's bump yes, it and the brought low consistent been is in more in That aggregate has the inflation, economy, shows level, being we that the scenario their consumer numbers, which line that can

all but the work Now shake [indiscernible] through at retail to system and the is sales seems we'll some to that stronger will time moment. be for through, but this take that number today, all the

Slide in XXX% business changes guess of instruments, energy could in forward, line going up they're space. these I detail Very rules? question, the we possibly might you potential guys some in you strategies end good. And follow-up as the your from as use? from And on that you you particularly change then alternative equity the specifically, of they us touch Can generation. obviously, if for changes you us, upon the share X should mitigation game, thinking the showed stay gave Basel RWAs coming the us about good and final III with capital go to a organic that Would XXX%.

there'll of think So be I the there'll all be comments the number due, changes, to thing and think, at views our balance changes, by the all I the heard accounting And very by company, through staff have first participants, much one, mean. of need about rigorous Fed the November, the then at changes, will the the the that our of industry of is all end there'll the wisdom the other that comments double think are they -- sort companies, that to and about. points be what the you've by

is it sort see for RWA of and a that is and that mortgage little you it. to the said, for the of housing these loans being some environmental policy That or increases the types spaces, want counter investments other do which of we puzzling in

would and to us. a what Now expensive. been more become happen it adjust have is we'd the for It's would business pricing great

go But it. have market. to drive to it through ultimately, the continue We

get go cost up equity the increase returns. have You the fourfold to a by

we just And increasing therefore, we returns equity so get have the have that. a dedicate, to to amount of model, on about think pricing

that so would And happen.

all this companies having Volker for or of and stuff people issues rule put after a because that, set rules write-downs how just changes here's the on rules here. would the issue the said without in you set an counterintuitive is RWA, little It financial a count Dodd-Frank seems be much that of of and basically, are a that doing crisis, evidence that the that

And issue idea a up seems for evidence the this public system. policy so banking and standpoint, any us is that odd going also absent Xx an the to from

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

is the is little if of I think deposit peak, and its a that think you you ago, month kind conference a bit at pricing us to today. Alastair, done, close through you noted Fed a talked that

peers of for Some further fearful of from been savings, example, repricing your material future outflows. potential have or consumer a greater more in competition

perhaps So you've in just discuss been about more a fair, your -- the on right. thoughts But general? they're can outlook to kind for of worried you deposit and on that pricing be and that and while

around confidence last the year to Fed normal. think pricing that's you Fed mean, is forward into Jim, X for is be And look some is and in believe I then one some if think next pretty see, I at to month back is point, gives or that, Fed hike last then going of the from the what And got seen we've us now curve Yes. the troughing forward forward deposit stop if or going now. you in up. that X the things And NII of a -- hike of link half from natural next growing that you actually we've curve the there'll cuts, them, a you months year.

innings else They're some we terms getting of reward begin pointing be the deposits end see that I get now any relationship out terms at don't can we're we about we're is got program. are the to rates, they're And will in the core a very in checking, so think of anticipate we're the we where them this of of that we yes, So we based. later closer in But are just different anyone that regard. the deposits preferred this as of lag. towards other than to we them peak that everyone got thing serve the way We've remind -- have have always operating lot thinking digital. point. we've

of And around very side, We've CashPro the all our a got product. then Commercial on they're and the deposits world. similar. using lot world-class operating

then the Fed quarter sort judgment we're getting So for account. we're rate we in cycle that of there's here here fundamentally, But a as making top a take just out into that or the value X relationship will funds to deposit towards pricing and lot well the of need following.

too? yet forward just expect effect but rate back in or impact? the there right. in curve still rate there NII Or cuts That's thoughts that in Is and of terms half. there, there's All cuts Maybe the asset are of is the the you else something sort in that sensitive, fair. lag you the growth X and growth given improving

the returning year, the normal half other way, of especially ago find to more late get and innings they're the beginning are same floor, way and Consumer flat, a into some going again back They sort going dirt the we now point. in that going In balances Yes, while found are the are same as to is in think has at of pre-pandemic the that Beginning I growing. at to on, the wealth balances. the grow. a to of floor found start banking things

going side is a floor. have We the Consumer to that of find point view the

So that's one.

stream we've month, that's see going going It's we're gives going Two is, this been I'd a pointed Bryan's you a got but to more poised point, every see that's we're we're to thing us for in normal economy, have as the quarter. it support loan and securities And growth, itself start also more deposit you're course just to final to back to grow is durable to But going growth NII. say and that reinvestment NII growth out, then thinking the evidence a and slower loan the sense of at that some And think half. year. return at the point, I we the through so underneath.

With UBS.

Brian, side of will pieces has about if of have underneath clearly, the sort sheet. do Alastair, could thorn sort in much as XXXX in cash held-to-maturity how And your for HTM the on tell us flow portfolio outlook? balance been two-pronged a you of the book stock. in you you my first think have forecast I the moving this question NII is your

of print confident hasn't as And wondering, the in quarter, that market of so new Saying every maybe -- to and and caught give no you no the statistics growth at that checking about with strength matter up. the the long us that what that the the ads, terms sort I'm like share yet And total little pushback is say more retention. a that deposits rates. of what stock you sort of community, have of net statistics of strength quarter, you end we so on we've not there's matter quite think hit investment always us that the the as

So first X-part of a question. that sort

right. All

part, I'll the Erika. So first answer

billion quarter. couple or the in terms of think I the maturities paydowns through sort back if course look last of paydowns, it's portfolio $XX of a you averaging of years, that

as answer starting part in So use. your would the second question. I probably And that the horizon then could what reinvestment for let Brian of you That's I XXXX. a think I'll use point good

organic the drive we machine businesses. operating a all responsible across on Erika, different growth based So set

are we're So checking base basis. drives retention XX% against than as rate, up are and segment that in i.e., balances compares look accounts. 'XX you've probably every Those be net rewards we program accounts, checking XX% preferred the outperforming the deposit where of $XXX XX% in all you a what's industry deposit the larger The preferred to up noted, and are the you also core. attrition is loan, plus customers, to the part rate long-term deposit the if now at driving from industry, billion if our think in but is, Consumer

balance than the to in a their then. home quarter. doesn't got work the getting up we real to even hit and start billion we out. or where We loans to quality Auto -- equities a produce strong, way now we're are cards, starting continue lot a several trough credit they had better was back On -- produce to not market continue is will pre-pandemic it

in than rate prior to So go growth When we now organic Wealth in strong. business all Consumer at the growth Management, are you faster the the household engine we're that very producing years. produced a

customers market the those business noted X more months. and been you deposits franchise. base that If And deposit big banking a businesses come actually see those the year. you deposit stable And segments, go in we Commercial that middle produced that growing and U.S., with this in Banking we last to for the

just And in on. a work to engine of is trillion growth we having $XXX great shape that plus on is is reason we and this that all billion fine again, fact, engine trillion balance $X -- put through a you're to powers of this go given because the have strength the and day the in have So $X just sheet. it

Consumer, regular a talked And so team Commercial gaining X, accounts that market very we fees X, that frankly, to gave then equity, we to all to so this demand actually was due market conditions will detail relatively grown feel then checking And over on business, line the investment XX% whether side, deteriorate in the And down as loan good. thought share you flat quarter dramatically markets last accounts that or to go it the improve. maintain saw Consumer, years. the it's usage, about banking and as in side, And the is Consumer, continue something. the has in home and organically back growth cards XX follow people in

the another that billion organic powers after-tax our and income on we very quarter tangible in return feel what engine. So about company, That's for growth $X good plus delivered equity. and common XX%

through for to is question Do economic until shares than Visa ownership litigation B is have remaining? Our you, the second allowed my And set it. Alastair. Class Got understanding any of other weren't was settled, you to you other on banks it economic that recently. in haven't any disclosures the initial or if we have consortium. But books I'm wondering we on swap the you've seen any if still sold ownership because

financed edged of Visa other business, B by we've Well, and I then Visa essentially we ago. And our mean, in markets the sale position banks. sold years

a that's You hedge financing. about can as thing think that just about a

but benefit RWA business, we we don't for in that how clients' or on stake having and B. recycle up can depending economic So banks meaningful all what that to other do, some any some our choose develops markets we end liquidity in have Visa other

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

ratio revenues I when? a improve to expenses. is X-part the One expect efficiency you to question. this XX% And is Do guess from and expenses

it's you down As every year. said, quarter this

the ], firm. your X/X Slide [ X for the across fourth digital quarter. the guiding ] for You're now [ adoption is clients

digital to So help trends the expenses, lower of some of sustainability or headwinds. those control the expense given

trends the have given of digital why and big so others. especially threat tech sustainability an think many and of you the you on fintech, And the advantage

the the is question they part of second I think revenues. that advantage. have And

it a Your NIM but is a bit quarter-over-quarter, was over X%. little closer X.X%. Went up to

long back years maybe not X and X%. Going it's I'm term, sure.

ratio? and you ultimately, efficiency So and for expenses trend NIM, normalized ratio at the the is think a the what do efficiency

Sure.

come to the think efficiency improve. grows, I revenue the down, Mike, ratio So expenses continues

continue to work large. company us and One a compare as of is companies differences you our is the you know, to at to of business can business efficient it's but more and efficient, us Wealth least Management the the we which a of make to other business size And size between that's big relative the platform.

Lindsay drive there. and to Eric continue the So efficiency

of improve. the expect margin through grossed to the of that and the be we pandemic normalized continue kind we as will yes, to In of efficiency more we And of up normalize there. X you'd normalized it, us part from So to sort ran environment, a the given net a up to you sheet, size interest that of lot fine-tune you'll ratio moving balance and up there. XX for past, reasons it's and the stuff. the expect effectiveness then And keep get sort little

the in middle this we of of the next Now it'll described, into in that of we be year. will starting work here it the around NII quarter is be through first bouncing which as sort we're trough half

kind So over-hired could how of to you Mike, talked and last was people, management issue great excess of fast or at resignation able as we you and we bring about we that's to we all this all back last the know, year, the heads, that wanted to had -- what the and ended because last year. hire at you where summer this hire to it's XXX,XXX. time, year enough about get be up out needed and system We're

the freed to digital things. that to up application we think around are we who As forward, continue company reposition people other because of

to XXX,XXX in broad we sense, and the most continue down down of branches, a to in the from business less across XX,XXX So digital people the our to is you as place drift -- that's continue the consumer ATMs. board, continues less to people leverage use get

and customers, see of and we More disclosed can and including more the back drive trade, the pretty sales digital You in to that's the good things. statistics continue chart. interactions on that that, we a customer

the checking there. drive running improvements we nearly the sales half account on another opening, growth frankly, of round can with You're and,

So we're do. going what to that's

we'll can drive to level, ratio it continue see and the get to efficiency We to. where we a

banks, now mean, invested picture on tech? genAI question, And Why over then just think as opportunity data you decade a have do tech big have AI and advantage an in and do new you've stack versus, we And for or and you think Why don't. big -- digital I engagement. a a smaller threat. say, that your you fintechs and that or maybe

years Well, that a we have now. it of for an been advantage in we've applying number

XX So effectively, Erica that working everything. on of customers has and million form is a now it

And so quarter. think about that this

whatever the interactions, million XXX million that. like XXX there's something think interactions, number is, I

If e-mail, a think about in an you days would call. or text by, been that, gone one Mike, a every have those of a

And prove efficient. we're side. so CashPro And side, to more the the to brought it's we obviously tremendously it Commercial is which continuing out

So helps. that

about and XX%, further. and stretched short term, higher initiative think we'll spending, and those the probably it, you 'XX people as to up it's about be the efficiency that of And read you to to continue the effort. use get spend billion If and the increase techniques used paper the in technology building development team more that Adit in that in $X.X on in dollars allow to even will the more XX%

we that already application we're high So doing think and probability. that's a has near-term

you company. machine nearly, if activities We AI sitting lot X,XXX got think the X,XXX, patents frankly, a look, on this application inventors we know, already learning-related our then, related, out capabilities, if have XXX there, in I don't And filed. of about you

types stuff. good And compete said. be this compete so of those people might by to who us way, the actually of use to ability some do about to the our people we you providers But against feel we help

ours the listen make they companies efficient. have to of that to capabilities more big for them, -- a as it's -- them companies like And are us some business sell AI to to you tech

in So we to have cetera. thing stack is show people near enhancements, X-point-whatever et quarter cetera, this X we term and the ready go tech services digital ready mentioned interactions et a near and to effectiveness, dollars But invested near in use have customer we term billion one billion to the them. help, are heavily data term,employee provide coding that the

Steven from question Research. Wolfe next our with take Chubak We'll

start So off expense. I with question a wanted to on

either said You growth we interactions XQ next was as from benefit actions, help provide we year. it or through just in I should be positive relief look the flow and you about out next thinking could should frame expense into year. how hoping size headcount to

what Well, we've pretty I is think year, was. what plan Steve, do communicate our this to tried clearly

we on overachieved hiring. year said, last As Brian

]. XXX,XXX course of on with really year we've expenses of the over And and started [ the been we this working So trajectory XX.X year. the

this determined of the So point XX.X, comfortable. well. into to getting I think up turns XX, set headcount XX.X on and place really a XX.X, the to where now that's turns we're into to deliver we're going

of next our course I few weeks, we'll you give and think next So over is strategic planning more the our plan to finalize quarter. the guidance

or questions cleanup questions end. clarifying my X just on And Great.

year? that that underpinning higher in On of the you loan rate was for terms about NII I NII frame, what are reinvestment assumptions Alastair, yields remarks, exit growth you next making help talked hoping and deposits. could are you're the

Yes.

forward digits, the IDUs growth, just say growth And slow to low a I'd economy. curve. So loan respect assume with single reinvestment, consistent with

wanted just are platform to in increase advantage investments. capital, And still on fund wait-and-see planning finalized? the take long the advantage you the just the are I tax quick on you rules approach? Or confirm, Okay. given to one duration, investments a one here tax the Xx to are before going

clients. yet something We've a important rule. Well, final that's I for see this mean our remains to

But informing obviously, regard. continue in a with supporting to to with it's clients and informing there's we'll as said, appetite. until be Brian we'll to pricing, that So is change, the us it support transactions. But respect us respect

question Deutsche Bank. from O'Connor next with our take We'll Matt

the Or net in Is interest XQ income? side? the on what's clarify, from drop net First, interest just core that to driving is to XQ? market that income

talking you're we're think fact of first pricing the Well, is that say, deposit billion to there. going little got that you've we around a I'd lag $XX-or-so in zero onet about be QX. bit

that. So we thinking got to keep about

Second is balances. of we're Consumer normalization continued some sort of into baking

slowly drift continuing lower. that's So to just

hoped that. we just for think growth third, loan we I in QX, if see had didn't

through in QX. balances So lower flow that's loan with going growth to

Markets final same just Global the repeat say the then the I'd way. NII thing is And quite may only not in

significantly Some not carry and side. of client just long-term helping they that benefited depends going And by so on behavior. the quarter this up rates particular

So of hasn't delayed, in ago all it's -- changed [indiscernible] those expectation things timing and probably hasn't this all a little bit changed things. sorts of rate probability hike those our quarter but from or a any way.

Yes.

funding and that helpful. puts got just you've longer reinvestment eventually no guidance issue, But And view Is so income the there's longer higher if think If next there's the Consumer the up again, a interest bad get year. guidance I to or that you rates, your deposit Obviously, for the drives asset back good earlier? takes, for rates. then coming That's we on conceptually, versus that think some Okay. side. gave you for cuts. about higher

the would those what of for the So be X net in higher longer?

longer hire better. to for is be Well, going

out NII So right, we'd you're the got the higher. expect we've turn forward case, would expectation be be that to doesn't our curve and

the Or the on deposit still thinking for minimal consumer deposits? the more are simply you in even pricing assets that's there's higher longer? repricing and And

from hike. margin both. I there'll expect repricing the sure. short-term little in bit for of a addition, be It to any will be And we'd rate mean capture

from We'll Research. question with McDonald take next Autonomous our John

you you're on credit. what I on color a seeing hoping was give little could

you term? thinking in migrations, as the charge-offs how you trajectory look are of roll outlook about Your and the at near rates

slide. it can the that Well, point than see XX increase has lower Consumer which laid we've ever Most fourth over the normally just the at anticipate net up begin just Because term due card in charge-off the or still to stellar it you'd you John, been are charge-offs of this short out, the so a slightly continue trajectory And I'd delinquencies were out in that are past days of and see time quarter I'll the follows card. against due point to And trend. 'XX, on and things really was period. -- those quarter. they

that's point, to 'XX. closer the fourth at quarter inching we're some So And to to of stabilize. begin going

it's there, a what of the does question economy From just do.

pointed has economy right in plan. out, we've slow as the a had growth now, Brian So

number, get economic fourth it So quarter normalize that it's in of towards I'd going kind from to back as point, very But will that we 'XX be there. anticipate dependent.

On is has our been we've office, small is The portfolio. place the less Commercial asset side, very of got It's X% where part particular of quality our concern than elevated excellent. a the only which loans.

And about again, talking a depend has landing, and recession talking whether how side the we're plays out, about that will talking commercial a been whether or about the soft terrific. whether on robust growth. But we're economy we're

that to all itself So to going out. is have of play

at a that's numbers around it's so being bounce low low, little so With but off it's only that one bit, coming a point. because the this could Commercial base

think John, disciplined Remember, the a change, just rating one capability in we thing you about the Commercial company. on as ratings credit. strong, have

under reviews et are And so real the in them to we in in. current deal commercial have put market had cetera. on, come them show you rent that's why adjusting the part current as rolls, those of And cetera. slides pushing we We back criticized already conditions with the see to the portfolio, we're We activities through the deck, of charge-offs, you the appraisals, quickly. other estate and et

And you like the a reserve the that of And then 'XX, are -- of of think and and up And conservatism portfolio, this integrity the the system that so were thing ratings high issues years. oil for had in we've that lot of modest. the us company through always cargos it's for bringing small back 'XX, in frankly, back it rate us even gas and well. put because in many, end many a in our up though because pre-CECL part end holds very the very was if we all this

our I good we are a falling on we significant but CECL reserves. already. the have pushed underwriting, the because relook, integrity original of and also ratings about So fairly through and importantly, have amount charge-offs the very the reappraisal But feel part you -- of the think we office portfolio,

the think I anything you for factor optimize. you through mitigate in about new a as question good already today. cycle? opportunity over feel as and the picture about that? Brian, are Basel Does you and where the mean rules, the like the bigger aspiration that's a potential X And XX% it. recognizing ROE company Got for to III time, But

Yes.

way think I we're end say, $XX which put billion -- we And the million it doing if think need to billion billion $XX about $XXX another, -- need, this that you on a a state on doing I think to about is is to -- $XX buffer our get a on can quarter. XXX, back. simple very $XXX capital, that So to we're of to out And did we figure sure modest to And increase mitigation. of simple. the bit. be plus would That is X.X%, without I'm XX normal billion it which let's that buffer any we ways over XX a ROTC [ ], price it would make hit

But we're we're everybody on actually different of than capital John, remember, because else, today. amount sitting this

so a And getting on are return XX% we it.

but and -- maybe that up, So us. that's say something basis be any a deal ones. slight -- cushion. cards plus for I $XXX that have to we're have there before and points that But as don't dealt -- bit rules want agree cushion number, for couldn't we or on to don't but rules, today, take will to But we make that XX% billion so not of the saying saying a doing to I to little so. dilution you of the depending with more with $XX mitigation The XX are about billion got

there's time. around you know industry you've long for this always And mitigation, that, been a

earned do, So through. simple which capital be there'll And so is, you'll to what it's that we I modifications fully have point It's ought some there I today, things, right But today. to expect what construct rules there's I you like do. mitigation not amount not to always think think also. and calculation of the help

from next We'll JPMorgan. take Juneja question Vivek with our

Alastair, your question, to [indiscernible] NII just comment. want

for So you rate be would NII in are implying an [indiscernible] better, higher you are that standpoint? from negative therefore cuts

rate of year, what Yes, I'm higher, about cuts you in look the absence I'm yes. guide NII That's think the what in saying, half communicate. of to that, like if might trying Vivek, next back we

have rate costs? -- your that because assets that assets would faster reprice And funding cut you is floating many can you that than

Yes.

our going On on into down, as to cut are rates down, anticipate deposit way it's I'd the our that going margin spreads.

about. So that's talking essentially what we're

to Alastair. I you think and listen just I Vivek, Yes,

didn't the forward hold cuts would but said at basis not of what has cut a would sheet. I And next I cuts all rate remember about XX was our deposits [indiscernible], in I if It's half think floating more points balance us of sense you're maybe mathematically NII be higher -- occur, just think part happen. Dominant higher think in to better. up next not. the the year. would rate talking And it curve that it's not being the question Alastair worth second occur. pricing holding those year I multiple those the didn't assets just being of a in if

We'll take Ken from Jefferies. question our with next Usdin

much portfolio what help have you the on as a on of securities well is I follow-up Alastair, understand would And if can And how of help still of on yield mentioned forward that Just as side, on the that kind like book? the still the us maturities? AFS book swapped? earlier all-in billion repricing that on $XXX also HTM kind going is you

Yes.

We've time. we to the So the swapped that establish course over floating. most tried of book of to

week, may be. So weeks, available kind every whatever you can almost think about X day, every sale it most securities for of every

in over more a there the There's very, like Ken. bit it a few rate, in terms fixed So time. the tends moves that securities little complexion, look of very are to tide but little total

businesses, the I Okay. And and just both trading another really say, job the That in side, still obviously, then also to fee on uncertain Bank Investment wanted helps. good on the environment.

Just wanted your get to thoughts.

to I able you which IB than the was, better indicated. think, were flat fees sequentially, hold had You

albeit Just an hopefully, in how markets on of you're kind uncertain the it's expecting thoughts environment. to reopening your still here business the and understanding

Yes.

this Investment to So be this. we're of this per you'd one would -- for what's per $X.X expect unusual. is this a so, interesting in I the sort banking year swings or $X.X return bouncing around billion billion suppose, and investment not is, obviously, within and potential about Banking, quarters quarter, normally, X unusual that has And and into now quarter.

certainty. pipeline. a confidence And macroeconomic certainty, the America and geopolitical around C-suite looking that what got good we've I corporate mostly So is think are executives comes from world, for, the

Investment to we've quickly $X.X you it's long when predicting very going that billion It's billion, we've Banking to for that very, $X.X range. of So periods tired can stay per this past, back to were a got might range But look just kind back if billion, of the in as historical of come grown as more a be, volatility, kind $X.X Ken. of quarter. in

unpenetrated is client building pieces. our that's a other with. importantly, done leadership, continue still a Banking growing good our with quickly. market Investment X team the did And you -- Wendy's -- is give share of market clients, me under to One, but let client base, and business but we're base business Ken, pipeline the Matthew out more relatively and market with, Yes. which we had is Global that our have But in. -- strong. Commercial meaning serve huge we capabilities middle We job our good Banking that

And versus flat performance year-over-year, to up a our market. a position so us year-over-year in little down flat of probably others holding for better generating that's bit relative than terms

team we'll basically of So it of opportunity again. we added for and the that doubled double us. It's -- size that we kind

Stanley. from our take Morgan question Manan Gosalia with We'll next

peers off? you reason And with loan deposits as because questions, higher, here. happy My are deposit think deposits saying some is question Or noted of need in the more like ask of in reprice some be sort that with maybe I was around checking the accounts. from disagree that. you deposit prior run room there's let of more sounds it Should you line especially and growth you growth some It nontransaction level to to growth? our are Consumer core for the of

wanted might So how differently. assess much to you if need to respond competitors act

$X a So $X.X based, have of trillion we a of and trillion things. couple of One, just deposits loans. broad

has you're amount not Corporate hold paying to talk a So you so we've fully down. fees that. you to we the Banking, by quarters, of relatively part high starting it's that grow whatever, around as excess what look that or -- priced. you percentage have noninterest-bearing they -- been a tremendously in deposits I pay relatively think about has In business. is in the That of stable. business, off deposit The the also, think Treasury X banking that, and about And Slide to But been if if -- we show like at of drifted to way flat, X Global base.

about And so very we good feel that.

much Wealth at made Management. all been made higher the to If pretty rate i.e., you look -- directly. buying environment, Basically, securities has was the movement treasury

type years. cash-oriented $XXX at look et business, treasuries, cetera, the amount market over short-term billion of last $XXX -- couple money several billion our $XXX the funds, from has gone cetera, Management Wealth If like last of you et or to billion investments,

now the So that move is then a is it taking place. -- rest and in so And of stable base. relatively

You can numbers. see those

the XX%. if about can the money the If there's a income you're multiples the you even things. even deposit the Consumer down actually go households that's X spend that Consumer market, on. trend to of go they side, move where our in that's there's by drifting below the what in base, a because and or small [ the still the part though about slow in pandemic accounts. that is, read that's base, ], they're X all you of in seeing the slow of things higher One they preferred the have pre-pandemic And see some you overall of basically they a category part minus had medium down, still broad end And or pricing. And into as base,

it in $X.X it. always and money business, holds the cash markets stuff And checking our has some represented of investment moving which about the been the see is and amounts think markets modest for they've balance a the market, have. money people cushion And they we because money checking the and more trillion every resuited little page, I cash The that's Consumer day. where that that cash. thought money motion cash transactional by as can this, about in straightforward, in with -- if are move in across have moved The So investment people think you on largely the account it's businesses. transactional carried

loans. And we're up watching student little that's the of you're there's of and so loans, $XXX saying our customers you billion Consumer it's pre-pandemic. student And loan a there, million X drifting have since dynamics because repayments pay starting, more

that's You to on have dynamics XX impacts sort longer. of million the -- And it of carry cash that have people, interest but loan it's so takes the impact through. rate lot will sort out, balances, across so higher. a That's we'll

so we about it. feel good And

there consumer doing of little question the a something. adjusting lot look largely to in win category those they're do do they're of if customer, people what coming system are what time, the And of most with by that because we've just have think based accounts, seen their more and and consumer behavior a you And circumstances. in a and -- it bit think this what I over it now about natural them in stimulus the a that, I slower and But how on is business behaves. household through their

Got detail. helpful it. That's

you prefer So grow here, a room just terms I with in deposit little down? more in to Or that still would growth to deposits from line bit there loans? guess of for come is

growth deposits grow activity. in to prefer We and customer line with

last come customers of $XX,XXX. So irrespectively. up They Consumer, in up which transactional than business another I produces have we we're and We $X not quarters, banking -- trillion. mature grow is That think to in the around checking for types average lower grow X -- accounts, XXX,XXX net balance all that. new at it in we that,

to that And that is have You difference a loan produces then a have every wonderful customers, trillion. thing day. business to $X

question take Oppenheimer. We'll next from our Kotowski with Chris

you also that the benefit moving it balances of better or unusual and a XX balance supplement, and been were something I up I've liabilities points. the was your Or yield this behold, Page quarter, of and assets in on behind overall on parts -- was is basis basis function earning XX amortization of interest-bearing that all up the yield on like And average some thought? noticed than for there X just sheet lo at that? looking your points,

an it think don't amortization was I issue. Well,

about liabilities just the sheet it balance I entire think think when works various pieces. way all assets, across the was moving you the

So particularly I there. don't notable think there's anything

the stunning moving just it's with tandem. the asset the really earning No, yields in Okay. how moved pieces liability yield all and

For Vivek a our have JPMorgan. final question follow-up from today, we Juneja with

equities. Brian, trading has in grown nicely

on you Is your second sheet And year, in there what standpoint from -- room financing. growing in to your question are in had was a for there? would NII it NII to said balance led You've by that? capital keep trading next guidance be, you seeing trading related for

one, and financing the the your is first RWA Alastair equity about second Vivek get The experience intenZelle. you constraint hit on one. the can business, think RWA, not me capacity, Let just and as that know,

but So intense. -- it asset is size

points lots strong. return asset in when have on very equity, the over risk with business look you room requirements, the that in we at is ratio, of us spot on XXX-plus the leverage side. return But Now our on the

done a So and Jim the And have side. for to we good team Sue continue and job, the equities experience.

So of the can by up have of in balance side. that over we A sheet we to need billion capabilities the the clients And and lot to to due $XXX fact, there's plenty financing room. do largely product. in if that continue brought due the equities, the

and driven of capacity, huge -- on all lot our and there's our a simple size the that's requirements. way largely answer. over base effect we're by the So a measures, capital Yes,

I think $XX XXX is probably overage. of basis points on almost that billion

room lot So of you have togo. a

then, in And there. Global we NII include terms in Vivek, guidance, of the Markets

just big it's verified of a So part portfolio.

Global we think Markets would remains point sensitive. to, liability I

'XX rates the with has see can in You going up. into that down 'XX and in NII come 'XX way and

in it's according curve. will put will the pointed then guide, there, rate bit the perform we business. the little as in it a balance Brian it curve. sheet modest NII just And and forward So the to of follow continue to may in growth out, investing But

us. you Well, for joining thank

for Strong X strong. very equity year-over-year double X XX% digit. company. Earnings Just in earnings are of the the months, of The and closing, I'd go common the points. growth to key for tangible back and months returns

XX% We And today. rules have in the we're capital to mitigation capital returning capital yes, that meet for any before on proposed changes new any as the rules. those

ahead good company. to about the So we the feel path

growing do from old growth. you. the Thank to continue growing We those responsible way, revenues clients driving our fashioned and our it clients,

today's conclude you program. for does This Thank you and your now disconnect. may participation,