Bank of America (BAC) 12 Jan 242023 Q4 Earnings call transcript

Good day, everyone, and welcome to Bank of America's earnings announcement. [Operator Instructions]. Please note, this call may be recorded. [Operator Instructions].

It is now my pleasure to turn the conference over to Lee McEntire.

morning. Good you full call year thank fourth review joining and quarter results. for and to the our Welcome, We know it's you. a busy day for all of

usual, bankofamerica.com documents Relations release our on As Investor the are section website. available the of earnings

Borthwick, And comments chance referring I during CFO, be quarter. we CEO, our to over the review Moynihan, the before documents. they some had turn this Brian a to details the earnings call include the everybody's that of will presentation trust Alastair to call. opening I'll for discusses first our the

forward-looking remind and during Let that me just you call. conference to we measures may financial make statements non-GAAP refer the

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

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

of us. everyone. Thank you earnings joining Thank Year Slide I'm the X you, starting to Good presentation. for on and New happy morning.

will America, Alastair at describe was fourth quarter. in $X.XX, XXXX detail. Here Reported of our that with more Bank EPS notable X but finished teammates a items solid that included

after per tax Adjusted for $X.XX those net X or items, billion $X.X was share. income

a and full results. year Before Alastair results, XXXX the covers briefly review to X want moment quarter I take

a hike the the a rates. year geopolitical year. within the year, consumers, began economic We delivered by a tensions, resilience of show navigating U.S. economy, XXXX recession a historic strong higher slowing economists with at led profits rate America speed. despite of mild for challenging Our and [indiscernible] interest team bank impact Instead, failures potential predicted across Bank a of the shareholders

regards In soft seeing our of during we U.S. in steered points to consistently economy customer XXXX, to few at XXXX made were landing. with the here we [indiscernible] we ended a Bank the data We a economy, what America. regarding

First, 'XX 'XX of 'XX the of growth here XXXX. early went the year-over-year started part over part from and from quarter's declining. a it rate the the rate stands spending in X% early to in export X% of and growth X% And this from to to early XX% growth beginning rate

X% environment. You can on see -- GDP to is appendix. Slide that consistent the environment more in rate, That inflation XX lower a Page the X% with growth X% in

our lower the differentiating Bank with are our balance levels, deposit multiples balance markets the point made balances consumer you've nearly have They The quarter, capture XX% of consumer that behavior. at past consumer lower leading higher of the accounts Second, balance who the We And excess remain of X size deposit this the yields. of pre-pandemic. years largely accounts, the average to deposit those balances outflows into platform. is We last seen domain seeing now higher driven but by prepandemic demos. been the their seek declining. the we've are moved America than accounts, move wealth modestly [indiscernible] higher balance saw more in

higher credit good rate have shape Third, have in and of them while of fixed remember, the access The remain generally and and they've so great employed, resilience. are America had rates, balance consumers of to mortgages by borrowing Bank sheets many not shown responsibly. impacted

and $XX.X for net $XX.X income reported $X.XX, share Let's XXXX a customer net year on Earnings earnings. those X record satisfaction discussion of a generated record tax. after was and move tax after by year that digital which adjusted on assets tangible customer characterized were adjusted levels organic notable scores. income equity. includes On common billion XX tax, point quarter billion a XXXX. full after XX% grew Adjusted X% we return to engagement per basis, and $X.X We activity, over for XXXX return of that billion items, The basis was items.

slowing Strong the Operating during good course X% It's a a strong expense solid of NII sales but trading, and and year. liquidity quality and position. discipline, the asset reflect leverage capital up year-over-year. strong

during Bank by the This our this us of All this down bring helped early to every America's in assiduous and was was you responsible expect mind what helped year early we last of quarter years growth. year. expense XXXX of and headcount told dedication --

deposits. X% year favorably against achieved improvement historic XXX averages. the X% they charge-offs on noting fees level worth in trading back quarterly throughout Net investments of year even of is expense the but point very growth XXXX driven lower basis through as heightened as management asset the and lows, the grew strong the higher sales moved the still in continued. NII and levels historic operating last points revenue compare year and full One We were of Adjusted results. leverage

X% ended did industry-leading This fourth total we you deposits we quarter with outperforming in drive of the the deposit ] think the our debate market in than again year. XX% the at we actually trillion deposits, of tremendous less $X.XXX quarter would and industry ended than teams -- to how the been of our surgeon the $X has profit by X-year as this [indiscernible] they If period XXXX average work [ back, higher X much The had deposits But share, in year. remained total was XXXX. this billion and May dissipate. only great the 'XX enter XXXX, higher than pandemic year-end XXXX looking the and today,

activity to core with the checking is X% accounts have each next use XX% checking customers average, addition have checking the of months transactions more rates kind of [ they opened what moment to organic and have our the Highlight we that our RIPS been for that the up. to months are normalize deposit engaged account in last quality is of growth. of to who one volatility, for it thing remains continue of years. to showing the X the client spend results time continue some On the household what savings Bank with as appears organic those to account. I of want XX% the While and all is that meaning straight primary, opening $X,XXX as powerful engine over us open at balances then accounts the than subsequent year, across important accounts consumer, [indiscernible] ] card, us driving of The they year a connect activity year, consumer some of consumer traditional and It's of opening to use to successes wrap checking amount. This the would year. a your example. accounts. results the a we XXth XXXX account our of checking In have examples an fourth debit balances. to few net accounts quarter accounts. Xx bringing a balances, new X%, been net They of try about America note checking The XXXX. during businesses. our how XX% I drives of fueling check new for XXX,XXX the Thinking those client accounts business are. easy our represents when as of average added important couple quarter to XX financials. the that the about accounts is deepen

so Those in card XXXX. New accounts starting X,XXX portion will Historically, customers million over new spent we've than card X.X seen, about savings on accounts on the a accounts has average accounts those double in carry balance. year, those $X,XXX which far doubling per nearly within average, we these and year. those time. opened come with a of total more balances a card credit just accounts, about have XXXX, check From opened with customers

Now opportunity to always they to there's are. them our to further serve clients meet where additional and continue

our X platforms that in to financial our those net markets, have, across centers In than more the new [indiscernible]. [indiscernible] Wealth we markets. more XXXX Management bank. new in expansion opened addition our digital presence expanded relationships opening the more were team, of Mail including we XX to end and added in XX,XXX half in during XXXX than We've we In private have industry-leading Global

completeness accounts million account average is [indiscernible]. mail management multiple X is the bank private XXX,XXX that. to relationship average opened over the The approach. for count wealth The advisers clients showing Our of

trillion As into We [indiscernible]. you can client balances we our $X.X loans, see last across and of flow consumer deposit year. on of investments manage billion now this of those accounts consumer slide, both saw clients, $XX

the on per lower the Banking of increase side to we left-hand of to products the added we number clients slide, As relationship. switch Global

twice strategic advice That X,XXX a the XXXX. especially 'XX continue global benefits year. than provide a investment like is mid-market and relationship Banking we seeking clients and some Transaction of consumer, local growth more. new build who multiyear of with grow Services good Just we drive clients commercial We banking managers add what had look added most capabilities. treasury capitalizes roughly our bank. in relationship area Global forward especially customers needs. in solutions, our this team services, financing clients in but business We more those in and This importantly in -- the physical Global on those with to and also, digital even and management to in product for businesses, see expansion

we've team us we performance board year-over-year continue with think enable digital our growth, strong revenue helping the strongest activity cost. at years. across our As about lower had to in markets, have access many global customers we to see We see this tools the X% from

included and manage when our we to We rate summary, in structure. earnings Our we And and the through a of the call, continue XX are declines. [indiscernible] for We we Pages XX. expected expense Digital quarter. transition on [indiscernible] once what slides this outperform third talked again your on NII last you Banking saw to XX, was well the reference delivered good

I and and we a we're saw capital to [indiscernible] strong XXXX. want growing past all for start. what in [indiscernible] a did and us off with loans teammates forward the base, thank in great strong [indiscernible] they XXXX, liquidity We my we nice for to to look

going to you, Slide just provide earnings income a on summary Thank the Brian. highlights. presentation start the on to X the statement little of context I'm more And and

the included For notable items. X in [indiscernible] we reported net as quarter, billion income, noted, fourth $X.X Brian

recover The losses the First, to billion expense. $X.X from of the assessment Signature we Silicon tax special growth. by pretax FDIC Bank. recorded failures earnings [indiscernible] That's of after

short-term index becoming announced XXXX, Second, many had And SOFR Busby rate after standard. industry reference XX, discontinue XX, November the industry in loans the XXXX. would commercial they rate on publishing a November to that Bloomberg prior Bloomberg banking as

XXXX, early earlier under allowed treatment would XX, LIBOR November 'XX [indiscernible] indexed noted in related need in As moved BSB X-K flow this an products to in and and would earnings . came forecast same not cessation we flows week, quarter of to a cash after account into BizBcash OCI fourth the the hedges we of to but January, to be filed conclusion get occur out therefore, financials.

BizB higher next and The the in accounting revenue as mostly that's over X to we and result offset time occurring want X during the to accounting XXXX. the an interpretation, So we'll X accounting we NII to of of I negative contracts, that It's a years. recorded making change in [indiscernible] CETX an recapture basis of billion. XXXX approximately impact. quarter, to this reinforce an points $X.X in after market pretax the through our by lowered just and or November will a impact economic see not XXXX

charge. interest billion billion $X.X impact, cessation-related show billion $XX.X Fourth revenue X, declined reported is [indiscernible] the a net operating creating tax of $XX.X was moving [indiscernible] $XX.X adjusted slowly on management and those income. NII QX the saw and was [indiscernible] the And over credits [indiscernible] driven NII, Outside of fees. or we $X.XX an impact, quarter, highlights comparison and tough quarter lower assessment Slide FDIC we XXXX. the X.X 'XX And the were and offset quarter we service higher year-over-year net investment recognized more per and of associated activity, income revenue good growth as FTE periods and FDIC by peaked fees at fourth in the deal tax losses X% of by excluding treasury across billion share. On cessation advantaged revenue basis. wealth in higher billion before The

And guidance. is our So as then and us That as well $XX.X that adjusted billion adjusted consistent basis, the headcount. [indiscernible] quarter to and on was allowed expense with discipline eliminate for good third invest use prior year charge, excluding growth an work reduce expense sequential of to this expense this

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normalized in losses. trend the of Net towards [indiscernible] consisted levels modest estate [indiscernible] that office more billion charge-offs continued $X as well macroeconomic consumer real charge-offs a and reflect as

benefit. on income our driven this advantages was lower were Lastly, quarter the tax by in modest charges. [indiscernible] QX tax earnings notable the expense Tax a expense

ended let's total $X.X cash from deposits So $XX balance third review highlight in balance $XX increase these X, maturity $XX the included billion. you'll assets, that both hold Slide quarter Overall, in at securities, securities, decline sheet note on and and available-for-sale billion billion up open in quarter. a decline we debt $XXX and $XX increased sheet here see the the on $X all I'd of of investment of trillion short-term to the you'll that billion, from billion and securities reflecting of liquidity activities. billion a

high. hedged cash. can [indiscernible] treasury rate And bills our cash you remain put absolute quite to this as continue and see We same notes [indiscernible] quarter levels

the billion of it fourth offset quarter level [indiscernible] other to AOCI The equity from and only of increased capital third remains reclassification AOCI Brian earnings of into Shareholders' previously billion quarter strong shareholders. $X above third quarter $XX 'XX. $XXX As related the AOCI the liquidity improvement remains quarter fourth improvements. as our reflecting billion sources, global pre-pandemic by were both access and mentioned liquidity 'XX, earnings in $X noted, partially and billion, distributed [indiscernible] improved

improvements some impact in by a rates. decline which long-end flow This regulatory included driven other hedges, cash in don't capital

share paid in $X.X Tangible in shares, year-over-year. value X% $XXX and and our awards. XX% During out we offset employee up more million linked than the bought book we common which quarter quarter, dividends, billion back is per

capital. regulatory the to Turning

$XXX XX.X% CETX to to September as level current billion our of X, improved X XX, 'XX. XX% CETX declined basis and ratio remains from while well points above the January Our requirement

and the X%, current proposed matches capital for We loan the our comfortably also RWA supplemental [indiscernible] was requirement as [indiscernible] rules remains growth leaves our of Global remain and growth minimum our Markets, balance versus in above well against teated ratio growth plenty sheet leverage ratio positioned and [indiscernible] on RWA requirements. capacity CETX our which or of X.X%

on card you looking let's we quarter focus improved positions. Slide good finalize borrowing, X. saw estate real as paying average both improvement by can by commercial reflects and their overall in year-end in companies was and loans on balances offset growth commercial this So quarter declines by The muted and lending. down securities-based at commercial at the see they growth only loan end as demand And balances financial commercial credit

Gap] [Audio

few And in market years, past the [indiscernible] spreads. and over share group the

in represent CDs in remained quarter's from deposits $XXX accounts. of we investment was and a this billion XX% basis quarter third have driven net linked consumer. $XX deposits Banking Moving preterm paid low, that mix together of deposits XX%, balances decline this this the on Brian or with deposits billion decline a the levels. basis. $XXX annualized of quarter well billion in rate basis, remains checking added rate And On was remains the performance driven of deposits only of XX%, more slowed saw an deposits, above that levels. remains of XX%. to on The by And their concentrated the up billion. checking QX which a Slide business consumer in by change. quarter declines consumer and line total X% items management $XX transactional quarter earlier. business total, the grew [indiscernible] which on to from up noted linked the Most X. decline The The new are we trends XX of high-quality and Relative quality ending increase period, high in average saw Consumer growth prepandemic here, is [indiscernible] consumer pandemic very consumer deposits. still in only Global saw Every points, consumer. of

end-of-period to clients Turning Management. continue sheet. lower-yielding to and of from slowing experience basis sweep Balances money Wealth preferred a in into modestly, accounts on an improved and off-balance higher-yielding trend we deposits moving the

and our by we've billion, They're These $XXX account grew noninterest-bearing deposits billion deepening. level nicely ones experienced transactional Our course XX% of new quarters. customers. the of at generally sweep were the flows replaced about their used and $X deposits above quarter. they of balances the were generation Banking deposits to the deposits the manage and X end over Global billion were deposits moving of down that commercial cash are the past $XX

turn about Now is which on X.X above deposit trillion the exceeded to you $X.X quarter, Slide excess levels from and when excess above see well X, we growth that deposit to growth expanded this QX deposits loans had pre-pandemic. can we trillion, loan of

think where we liquidity. can X, You upper excess Slide managing used how left the you we've see of is about in shown and which that

of continue AFS the securities. on mix And to securities quarter, cash and cash and balanced this We held-to-maturity the this of have XX% total represent trillion now $X.X of combination page. noted available-for-sale securities a the the

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mix also lower available as for yields. similar builds T notice to portfolio the the with sale in shorter-term mostly of change we began securities cash short-dated by [indiscernible]

You about to maturity continue and for down the hold-to-maturity others. quarter. to $XXX moved billion now [indiscernible] securities from decline this total, par. peak, the with about note can basis about yields it [indiscernible] hold deposits. billion book points book maturities consists a the XXX and few to billion pulling In of remained rise paydowns $XX blended continued billion $XXX from cash rate billion its and note also $XXX to that the Also we It's and and pay along above in below

of in the From [indiscernible] given of benefit maturity valuation into balance we've than more The reductions and to ongoing seen the replacement billion the assets to hold reduced higher-yielding provide support improvement securities. earning we in to and of fourth NII. the rate perspective, a experienced assets interest the these continues an lower an $XX quarter, valuation

XX. rates FTE report us $X basis, less higher curve by move billion impacts using On to XXXX. year compared of as the helped rate was believe worth we to $XXX offset will modestly better the the that finish driven we and got tax fully bad shift, which Markets X% on And $XXX And than focus of [indiscernible] to by and in pricing second the the grow an asset to a last the interest strong was of and growth year debt given reported day modestly $XXX XXX full Global It look X let's NII that's and unfavorable first quarter NII it turn related the be driven should deposits quarter, $XX.X to we've could basis a we $XX.X lower we our told billion forward, a to in and yields. expect NII decline by than partially from given a third So QX. quarter, in XXXX. quarter begin fourth you first in billion the the benefiting in million lower touch Slide about for lower NII, we equivalent performance up million. between that's of of half believe then million somewhere XXXX, sequentially And XXX quarter. And deposit

very in materialize. an I that with other interest few regard consistent the today provided XXXX. would to curve for note rates the So assumption forward forward include view, the our compared curve It has prior a forward quarter cuts curve. X guidance. a And With last to just caveats.

quarter. shifted and the little past a around bouncing it's So in

deposits low we includes as growth into also forward half our loan of mid-single-digit move to [indiscernible] back moderate the XXXX. growth of The a expectation in as

feel Given and these loan assumptions. continue deposit about we our to recent performance, good

to securities. higher by period as XX net it's yield noting cash prior cash-like earning in moving and driven basis well reflecting decline worth assets, points average that's our away, declined XXX the builds Before of and basis points, interest as

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

we'll adjusted expense. billion the earlier making Let's the XX and turn use in year to the $XX continued seasonally from and the growth. to Slide lower reductions by expense, These in revenue-related we're for $XX headcount investments reductions million driven third outpaced to that and drive quarter,

quarter an used lowered down we people. was on in Our that's from way. after of the point XXXX $XXX we our severance to work We of good the taking by QX peaking quarterly as than outsized quarter work our $XX the And with XXX,XXX at lower charge acknowledge less the remember, 'XX average along expense. to XXX,XXX higher headcount headcount adjusted and X,XXX And third attrition year fourth headcount billion teams expense more expense. [indiscernible]. through just $XX.X 'XX. our good to is of only a million One FDIC without million lift began

some excellence stronger initiatives operational in of and all of some as through investments tech higher work and managed cost good center additional new through So openings costs. well the as and marketing financial revenue and otherwise, we've merit

look to QX. $XXX typical in see to quarter, we more $XXX to of forward we to seasonal expect million QX As the expense compared million elevation next

$XX.X additional expense in also Management initiative XXXX, help both operational we payroll reflecting Sales includes drop to transformation we year. cost cost through we elevated first higher and us Wealth That in QX, So decline And revenue expect changes quarterly Trading we through will and and excellence adoption the believe increases. going elevated as the some well of be & a the from is expense as go move digital work, in merit expected billion as as tax as revenue the continued expense to around quarter. as well

XXXX increase an and credit, $XXX that. XX compared charge-off we metrics a reserve third quarter, charge-offs billion weighted third macroeconomic On expense unemployment turn XX a basis was for to million the commercial X.X% our for of quality point was from and fourth of net reserved credit the points end to increased in Net highlight and consumer the the Slide $X.X quarter. in and due the things: recent an portfolios. basis, $XX nearly the ratio both the we're basis release On from improved I'll late-stage $X.X rate quarter. a million for of reported. which XX, X% And most by use modestly Vision now included environment. million billion XX to Let's it continued increase overall X increase was credit by by of normalize First, flowed to was net the higher through delinquencies to the as losses, charge-offs. driven $XXX driven charge-offs card Slide

Second, and range $XX driven a real the couple of estate mostly monitored were past increase And due to also million of and office commercial reserved. was of the losses, which losses, industrial increase previously by for driven broad lastly, was and mostly view provided by million a of commercial and primarily and reserved XX smaller Slides quarters. $XX and last consumer commercial you also of can book real included appendix, quarter. of included the office on to our the we've commercial our see net derisking portfolio trend charge-offs, In And perspective XX. stats we've long-term of estate current those the historical loan

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

For costs, also the growth. activity, it's client And on despite $X.X outrun quarter, while the good impact on is earnings credit rates of organic earned deposit the to their good normalizing. continued billion difficult Consumer higher

and activity growth, opening which Customer billion period card So strong strong quarter top X%, declined the of new while costs reported XX% checking rose. net showed investment another of balances as [ and expense year-over-year another line [indiscernible]. rose ] $XXX climbed earnings revenue for clients, consumer credit X% declined

in quarter. our flows credit that improve as slowed for showed discipline investments the the broke with of strong Our accounts Loan continuation enhanced reflects XX% led customers the and And XX pricing, billion XX, digital year-over-year in card, growth. improvement Page Deposit and continued can also about good past as to and around engagement business enjoy the see continued quarter by $XXX expense continued growth appendix, as capabilities. in you were grew this months. was declines

Merrill still from market on XX. results last year billion Management little to year. Wealth from more Moving driven hikes, rate higher We as were more higher relationships bank management produced flows. new a XX,XXX costs management, levels and private down than good higher offset asset Slide after the deposit decline up than catching earning and fees results from this from the NII in net assets These adding the under by in $X interest

earnings Private from work. driven investments [indiscernible], their in solid money see Brian of by Bank produced Revenue the decline which business as business to strong Global putting the as expense, the reflects billion since down assets The see of as declined levels existing peak Slide and X%, earnings revenue-related clients of $X.X year-over-year. produced strong reflect results. costs. mix quarter organic the NII. both and and of money management a good by releasing NII Merrill As new Banking continued 'XX, the under X% On XX, fourth billion continued with client growth you results of was Expense a offset lower well provision flows $XX to

clients as with remained generation. client business robust new Services well existing Trade strong as Global good Our business from

loan wind revenue projects number performance. positions. the in banking and the the investment in in was markets; the marks of revenue diversification equity blocks prior good we example growth this that that in and four, equity X% mergers continued billion held year The since reflects component strength down on our overall company's #X across the grade, were banking parts, position #X to business investment to capital the we and That well focus investment In ended States growing #X of Number #X X pool XXXX. grew business, given and the in environment. overall investment acquisition. QX. fee And we solar products first X%. volume and despite platform, time we The a year, $X.X where on in perform addition, of finance. finished capital to year the a fees on over United continue for that quarter. is our And the benefited markets for in regions the steady leveraged leverage In sluggish our of also a Year-over-year from see lower a

Sales for comparatively we XX% well Trading and were reserve as #X a to year-over-year outlook loan Provision in on as of to And fourth macroeconomic expense to $XXX before. driven that DVA million, charge-offs $X.X refer blocks. improved Sales with EMEA, reflected Expense lower by from new X% growing we and than investments revenue And the an comes Switching were of marks as also in release other as reductions earnings million, offset firm. positions team DVA, we ex noted is and a decreased strong year-over-year year-over-year revenue another X% Trading by excluding Global drove year-over-year growth the had results Markets The for performance. business to in & continued as costs. on results quarter normally Slide operating XX. billion better Good in record which $XXX X%, improved leveraged the on the quarter & focusing do. more

down performance revenues was the down quarter I on continued a and driven to level fourth X% Equities versus quarter, in think record were fourth business. of derivatives. from record up that increased X% 'XX. quarter was the in was mortgages expense equities in with investment And trading. the and trading by our revenues improved it higher while FICC XX% compared municipal

a tax benefit items was flat that Busby million Revenue we that FDIC billion billion Finally, lower loss processing on income for by X billion from $X.X impacted by couple investment $X.X adjusted their the as adjusted earnings XX, was earlier, a lower on others driven notable assessment we the in shows taxes noted notable and net advantaged all year-over-year segment. modest X earlier, the billion fourth reported cessation hundred expense down $X.X and benefits including tax in Slide of because the exceeded $X.X for throughout of negatively the had costs. quarter, results The this tax deals the year, a I litigation credits lowered this quarter. quarter. reported unemployment items highlighted

rate tax impacts have and been and further, And the benefits, our our more year, of full [indiscernible] tax rate a would the that excluding tax than investment XX%. was For was FDIC rate other the credits, our excluding XX%. X%, and little tax discrete

please. Q&A, the into launch we'll that, with And you. thank So

We'll Mitchell take first our from question Seaport Instructions] of [Operator Jim Global.

your in NII sort and NII the and are sort help in and expect talking think to those given in NII stabilize? cuts, you're X but us beyond Is maybe in on Just just the lot building to first stabilize down and sort a why coming we starting Alastair, bit of that for on half. a assumptions your growth 'XX. trajectory asset little kind would XQ cuts in the of start sensitivity, about expected of loans? the you're of then second of through deposits half that of

back think, I our quarter, Well, a I a great to don't have deal. views changed think Jim, Yes. going

changing isn't expected. anything, much guidance in a deposits our either So better little that we than If QX regard. were

around this than better of sort So see we little be It -- that. might in quarter a thought you was billion. $XX

a obviously good starting So that's point.

where say, little we range. off half up just in the in see to a a the Now number, rotation. see paid so when day rate of on going to of we get to QX, forward of just a that from year. that's XX%. That's XX% be it But some about and of we somewhere of $XXX bit about look if little think higher thinking that and and down be deposit point, us that are, let's QX, we more. between that It's terms you little growing at going million, bit slightly in of catch going I'm seasonality bit kind might in a QX back count

It's little growing it's a come balance balance the of And the loans loans come it's the some that's of that restriking restriking largely, and the sheet. off off yes, that deposits some sheet, securities growing bit.

So it's things. those of all

we You're X quarter, cuts. rate might last there be when thought together got right, we

up X%. to it's Now

a -- harder, obviously but that's that's has the picture been deposit better. little a little So

So no particular change at this point.

you the cuts, seeing a what demand. that, muted. terms dynamic? And in fair. That's on maybe think And commercial side think what but card -- the follow-up, outside are How growth, Okay. you rate that's we growth, changes do see all better do at maybe just little a for been the pretty just what it's on demand? of -- as looking loan bit We're you of

underneath Well, It's growth if I what's growth pretty on I been it's at And going is, think you our loan environment. it lower look materials revolver. being in to bit is utilization more can mean, slow the loan little obviously, a higher. you look back, a revolver got you've to much a Offsetting little why that with activity. start the economic border expensive you rates see

come deposits cash corporate and a natural have headwind. that's as up So balances just have come up, beginning fade. That's to

feel a it share. bit GDP kind to kind be as about market plus of low of the just ought like of think growth little Normally, we single loan So we digits.

loans low of see just develops. structure how sort to what environment, And expecting So we're rate in then a GDP the for need year. . this we'll that's

Najarian our next from take Erica question We'll UBS. of

if how of for a the if expect little the these perhaps pricing you is expecting liability the perhaps of for have back, rest mix the to I'm could is rate. the a thank Fed you detail for what going trajectory giving has that banks year. color I more the for Alastair, you're specifically wondering just come question on give is what -- as to bit deposit that you be downside about the power big a half you in year. cuts growth your if the think repricing us NII market rate to the and us second more could deposit

would to market that I So color really good think the for have. be

Yes.

Okay.

at we through back XXXX. So ended I troughed first and over at of if of We all, trajectory $XX.XX, course of the go the deposits $XX.XX.

this of underneath in $XX since So May. deposits growth the billion

at around our That perspective gathering forecast. NIM our environment stage. this feels think informs obviously to how us we of supportive it's that deposit a So like about

interest-bearing. that's Fed this that a us the year, seeing start of to course towards been because down. to move we more those allow event take cuts the rates actually in there's going obviously And us over that obviously, Second, helps

going see we're of and to look, So a I QX. in little think, here bit rotation, QX

likely July. Fed little deposit lag. a of point pricing bit But this the hike we'll see think was last at I

So immune We be out. pricing won't at deposit to shake this there's of point awful for lot been time an from anything.

We we confidence. else, combine but where have and to those get things, compete for deposits that's our of along everyone all with

X% just square to with the force And for quarterly you've and Got it. how what in pretty that billion clarify X% year $XX.X should that investment in up an year-over-year. expenses assumption full we XQ that the to about a much returns past said would there. decline from 'XX think include number in And XXXX? Does expenses the of banking in activity

Yes.

-- kind where the the of where it, cetera. et of half grow we the think said inflation, we So prepandemic, of down rate about if we reached expenses taken we've we'd sort place the you point

lower. -- look you're $XXX we're year's quarter fourth about What as So the the nonpersonnel side We quarter in it, little up if in first it's at bit got a right. thinking last the down a start is fourth then think of again. we expenses, quarter now personnel down than that higher up little And and you each million quarter. rise of you going

and see that stability that that pass declines 'XX, great the now XXs. to the during that in inflation revenue-related we we think use that time at now frame. replace pandemic, of to we you $XXX operational inflationary with feel that resonation range, room quarters to things over pattern and of million comfortable and and to low of are in reemerge back sequential growth inflationary And X% and that year, XX.X%. 'XX if out X% gets quarters of us $XXX -- and So all sort and expenses that good allows we've But of levels, of about this most to them the that you as gotten year-over-year seen, ability the in the our take and get the as you out in look million sort the between we've like expenses that passed in the sort year, stabilized produce growth occurred We firms that. with

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

to hard back long a and square you NII in Maybe world, slide disclosure down XXX It's so on doesn't is on end, the rate down XXX is sensitivity shift wanted you the point disclosures. caveats help could NII, go out the I the play to outlook -- there the $X.X us basis the maybe how have that us. it come Alastair, with for parallel already points. about just basis real some in We've almost rates billion. seen with like

guess that -- headwind the it's kind number I obviously, it forward able keep billion your it $X.X using that despite just to be in because of to is curve? very impressive, where So flat

obviously assumes instantly. thing shift Yes. Well, I parallel the think a mean I one, main it is, number

for earliest March, cuts So comes that X projections, the the the example. in rate are forward

in the out so So of it a to or space going you're full all year's rate that work not day of cuts see doesn't worth first the way.

just to disclosed, So X be use which is would way X. John, think we've the I start that what

and beginning short You in and And securities can is see that. deposit And terms see loan what all mind, point. of use some much the then just loan growth, I that we in repricing some some growth how as the see that that of and we keep still number take offsets end. that just

Okay.

on 'XX do tailwind that that? likely that a or just have is maybe the in helpful. Okay. to top NII, And That's -- a on versus that, be any 'XX? you Markets then of Is trading Global NII or headwind visibility

it customer over X the X Markets to on sensitive. or if look, it's just look Well, But quarter course you the arc, long look moves you even past the at Yes. if based over and years, liability Global of run behavior. the

So over And little sort of I'd in Global will get think of . expect a that to cuts time. that Markets what almost they've conceded NII, just NII, see if you rate retracing you expect about you'd back benefit just can like, the if you bit. steps

Okay.

a quarter, a quarter, good drop quarter maybe could pretty John, So that third amount. grow. fourth was this it

off due quarter partly first carry and and up. that's lower and lower start balance fourth -- like back to the here far sheet reverses -- good a activity, in to just things quarter we're the itself the being inventory in so That And moves that. so

quarter-to-quarter little third linkage quarter bit fourth of typically. a there's to So

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

you NII. take Just X dot on the rate guess another Fed I maybe cuts. if there's just follow-up plot,

If change? thinking NII that X, what the of about you take instead how you -- are

modestly than better. X if X, got Well, rather Mike, the I do think we we the

with the seen more last we deposit guide. better hadn't we higher if way, a we've X might this come of a QX. it put since off because quarter, have But in I gathering think base I

in starting better a place. we're So

out that's good those us. later, And out. So themselves thing a sort if pushes it of X have even things for obviously,

on as you information much have of economy. you just the think? group, research in Brian, being know Alistair, not do just the the and I Brian, advantage your mean, what and always you U.S. about by this volume What of flow I so like talk softness, the relying, you is the as Are think second forecast you seeing to economic what this is. you guess, most are a cut Where are Does the guys seeing -- to half I canned question? year? of the is Xx? do the in you that? only far their recession But you

our So research as rate landing, cuts a and I soft you think team Mike. referenced, has next has in year

at That and similar growing trillion rates X% X.X%. of last X% far So earlier, to year -- a it 'XX, consumer that's Fed year-to-year X%, versus 'XX, I into in said the -- the the quarter up, growth rose first fourth of and the the as accounts as today, to that in the Bank what and or America the is the year's customers so X% when inflation 'XX, plus spending the movement $X rate was quarter in to versus X% first you is quarter money, took out part X.X%, economy. see under fourth is was of X%, of was last across economy and control

in still employed. is slowing so restaurants still rate they're And experiences the and spend and spending year, something but where out of more a money level different, services they albeit goods in that spending from quarters see the the indicating whatever first quarter, to in the consumer on should a is our the or an X.X%, they're couple we going growth that down retail. activity higher economy, less They're it at game, and little it's was prediction in like sustain down third core next in

If you look here. Most economists, estimates a them base modest the in at really of your projected unemployment core is the case. rate in you from the by deterioration any of

this end the sense. at set actually unemployment by you reserves almost rate Our a X% year of a to give

card on balances, size there. their So any economy lot are credit. that's credit that economy than bigger everything. that inflation, of of people responsibly, news. stress forgetting the the as They're And because the is much a it but see see of a we is using good the 'XX in higher made percentage, and of We a was don't credit normalization

It's They -- paid. -- getting have balances rates our have we on access they're and they're They've working, They employed. mortgages. on they're accounts. good. So to good in credit. feel locked it's

data our So research we see team institute. through and see landing all think what is soft our so internal the thesis so our supports core they they it a get --

a expenses then as You left you go? can control can controlling other extra terms efficiencies out tech what sort and decade as and And to plus lot just far as squeezed through of what the headcount, initiatives? investments achieve what's of over of you part in tech that last maybe AI and an AI throw

There's always go. to more

from a below you think all 'XX wind expense 'XX of and inflation think initiatives. I as That's then million that us next expenses keeping Eric us will technology things. helps to being or We're applied taken they're largely if that on of be, And rehab we're it's to we're you're 'XX, ways. year because $XXX back and across and the what and enrolled 'XX, 'XX billion to the more through take branches in got meaning billion we've This 'XX, year, dollar in the flattish $X.X seeing. We of was them. you different growth year rolling to doing plus, keeping. by think, about avoiding opening talking sort up out which what up, that's 'XX up We board. So branches. couple into these this I good are of and the managers grow, relationship spending added keep

the billion driven The straight program. for management business, asset core checking all into account net $XXX,XXX Edge new XX more the good That's business. growth, quarters, the or year. flows our So Merrill in checking accounts, net accounts $XX advertising has

bring To customers those XX% customers a give added and average balance to sense, accounts. have in We they're small you -- not of XX XXX,XXX months. customers Those last or customers XXX,XXX the $XXX,XXX. $XX,XXX an opening which more

That's good.

turnover to us And redeploy comes deploy down from year 'XX to in in the 'XX XX,XXX So an with not teammates help. fourth rolling back hire But and we X,XXX fast business the we're just and None extent got can after In we at just XX% that, it people XXX,XXX year quarter, to them need down investing, as gives we another this it, is still year, year. we resignation and the low headcount Alliance it from X% will from which when to business actually growth people wisely, can hire X we for allow get are the down reskilling rate, count to retaining even of even end great said our And to people over year. to where in this in think that we simple. the the hiring AI had but the very I manage in by and opportunity the there's us levers, people. of we went XXX,XXX people when And deploy that people. we're January because

through we people So and efficiencies hire the have. we are little less we if can -- coming redeploy always a we see the

Bank. question from Matt next of is Deutsche Our O'Connor

capital. know that? some I I or how leading coverage about size there if I of media with guys. was buyback beginning, at all broadly -- talking thoughts you it stuff. Are you don't think there any just sorry levels kind speaking, Just like to here that Brian, there's allocation think some . And allocate if way in targets I here. from on then about from capital capital you missed and and the but was

-- taking in Equity a great or X% job, not for up $XX.X But in revenue, down FICC team little the think they're revenue the moved That lot about And so. business, years. over fundamentally the job of year. time more risk. capital deploying And balance a was inherently, trading that's XX money up. They're They of were a Demara, few the it so sheet year-over-year day, end down highest up was I sure lot. They share Jim done XX% 'XX a made market again, they've I'm was lot the of revenues. and last not billion the by in frame, bit bit think. $XX but in a growing at every the a a little Yes. trading done more we capital and billion deploying of to in day great not media report. have sales

And so of they do clients. the a great job serving

the a -- balance ago don't get but big they've Alistair as towards standards the meet But and the a as out be broadly, balance money sheet they from We it bunch I the appetite $XXX we're then of the billion that is need, level few They out. massive rule, More they CETX there's continuing rule them deploy. CETX. have We best amount because we pay could proven a capital to dividend. we sheet the successful. the and gave when the and of they risk have looks of the notional we'll said, years now, We what final of comes So capital put to today. were to they think capital. need see like. the capital right able business divine a

not I'm the saying We good just saying a the make math it's work. we RWA meet I'm inflation. have rule. to

a last period need which dollars they so and will you have to some that rules or to of buybacks, to $XXX bit payment, quarter. that up. we now a go the build dividend deploy couple from And million then to to cushion. keep And if basically billion it, new through. build above quarter, time we then bought can meet if And on, growth capital We a come expect of we over these share everything ticking support business little of so .

is color That's speaking, . of any Obviously, start helpful. And use kind you banking far wallet off a of more like the kind how around good did off but just way the Or terms kind frame or totally wallet? handful the base that? of year. overall that obviously, in you frame and to as would grow We of market And training about depressed, a that Okay. some think then so we long-term is point mention then of jumping trend? any by case it of broadly a days, this markets trading to but

a then weeks first of quarter starting apply can And Yes. predict to quarter, use point. We'll feel the of sort be very It's X, QX I so look then baseline QX, in get X too the I us, And now. quarter for QX the client a numbers X, better what record. tends early a just for much just seasonality. that the from good typical activity. kind the to like. a we're think us just as you with starting that a But from 'XX for recognize less will

I that's consider. the So would thing only

kick you're and a banking, industry expect levels, in better quarter you perform to over because and as pandemic there's you We to a typically question up quarters is been But activity the relative back it. pipeline gone bit at seeing $X.X actually in Matthew has we few expect the actually back rates the gaining clarity. We're sort what down actually, full last the And of little $X grew around billion, is stuff our year-over-year. are in quarter. $X.X it and we of the that to mentioned get And then about now when you'd and some were move stability we held thought a done investment team and exceeded as seemed and in position a billion share before the falling those with up. billion market running have added

shape. And middle this . throughput is building is and the over So good and Matthew has up team execution lot I team time. added market think of the a to in

Evercore. We'll take from question Glenn of our next Schorr

spending, ] be your get I deposits we've lot is is a in more all the fourth XX% but comments it's First period and you some normal encouraging about more, and in, great. of see to is, what and would than up the get want always the growth little for the 'XX of a my encouraged. down. little would a this some But call we'd the XQ XXXX deposits. that seen be some come I on time a with is treasury the question higher all rich costs like billion hear quarter comes people [ question in you terms is To And path buying stimulus migration

a lies to existing answer that all how accounts these around maybe Or that . is clients So opened is And a before? new in that's sitting good I you've just much hope thing? risk? excess be cash is question maybe that in of that are within sitting the versus from waiting clear. deposits those

first [indiscernible] run making would of So basically, had 'XX because quarter this I was all to you have this me on asked think you're the question a going Glen, theory in that off.

deposit sort in of year we in terms had And so X%, said, when we growth. time a of of grown sort X% looked period at always a it, we of pandemic of

out, turning just let's say line strung we're growing. that now that And that you line, we're above If and that. still

Alex troughed we the of the as said, So year. in middle

outgrown implied we've sort would what against growth of been size, et have rate So cetera. our

all that. good feel about core. we So It's

on months. Now clients, down X, if $XXX management online in billion around stable been GWIM, balances for, think they've day. now the bouncing you you And discretely don't $XXX start relatively are different know, a million, at $XXX, the I if look dynamics, and have, X we you the about wealth costs those with given came

activity environment their back. line usage has and happened they the they've they down just you wholesale the is I came the banking, and borrowing shows think then growing because if And up stronger they're of is the been after more came a has actually cash around pandemic, look stabilization in shot up that picked at what's consistent.

So been earlier. good. we And that's look if you what consumer, were that's at saying

with you If see, to think you where accounts now. balances in prepandemic the consumer, all if about people accounts their the us, you take deposit

consumer, the money in to XX%. they XXX,XXX, They move they're collected not move. look you going people XXX,XXX, health had in X down management, pre-pandemic in XX,XXX, at million are If balances

bit for on largely, money And and money that's from got consistent of as X, there have consumer, kind move that. X, it the But is other bounce in -- then around rate if the they weeks. $XXX is for a that's been mostly or to still and wealth little people are But it stabilized given consumer get to last to X you move they're you management in relatively so there. going And move, really on is done But and a did -- that to going don't less day. settle billion more you you twice. telling grow off that because get it, they what

environment, you they plus X funds, their higher-end chunk got. they don't capture whatever balances these rate things to of market was other the a accumulated over that we that money So in in into get prepandemic moved balances, I other because to had XX% And have things. move it which a in consumer interest balances again move they

checking, you is still of look look deposit you and interest-bearing. around. sits the X, XXX billion, bouncing slides can at the kind Slide see up pandemic if you the out was and noninterest-bearing But today. consumer going $XXX And by the key at into at laid it's XXX the that's the if So

at see have the high moved it it's little down checking a really bit, moved can market. people balances the that You high-end into that's but

on than follow-up and it. That's reserves I for. all appreciate now. was more I looking good The quick

you mentioned... As

quarters at Look XX points consumer all page, X in. the banking it's or X was basis ago. And it

And by so CD all some that. was CDs going it's be -- to a it the moved, if the lot and Think high-end side is pricing. and of money don't point But have that's market the about driven of

balances and and rates very high that. pay moved higher is stuff So the for like money we

like especially Merrill the So platform. Lodgy

of So system a term. right now better lot for of that the dynamic is through lack .

solid I U.S. That's resilient great. Good pretty a that. NPLs down. with are comment. on reserves appreciate Quickly your economy consumer,

point from the looking or a not have start actually are in question are funding what is, and of enough The charge-offs when be signposts You enough that adding we you've we to reserves when reserves. and lot should . know you time added you stable for

getting their we're to A to to and are economy, change them they're behaviors. rates because with and dealing now beginning stabilize. appeared and higher spending the transition interest for beginning They're pretty lot whole. things superior to transition our beginning close too. normalize just are This think to of for clients, it's moderate I the

seen few It's -- predictable the a the we've trend around course the consumer past So over quarters. pretty of side.

in You our see can disclosures. that

going couple Slide it's think I XX next bounce the of But So to course, XX. of that's and around, quarters.

first in to names that the year. XXXX of were have them. pretty remains we X in, But fully to of point, asset course on we're a surprise to a the commercial side, levels. going the popped position. And a for half that towards good wasn't back this We It's think, those very your happen us. seeing reserved up past then the quarter. in That We couple XXXX, to Now really we against settle of months. quality this the

to to close getting feel So going we're about closer we that. Glenn. get landing, there, a better think soft we And the we're obviously, the

for we're as think of stuff, all you because lifetime now. the still We've actually which [indiscernible], quarter, and period a down methodology, years. sort specifically charge-offs your come on pay to a reserve remember, loans said always about on reserve happened. we've it, clear reserves, commercial this you had operated got properties getting when that of But reserves for or it CECL the few prior we

as And the Be because a so of it was 'XX, side, of that. in go charge-offs basically, amount side the is side you consumer saw still some you consistent up on of careful 'XX. the nominal consumer where building pay

at rate We're 'XX, quarters higher a billion in today. card at X low X.XX. But higher million look charge-off you XXX across XXX from of range balances. 'XX, the if So to the we're

be nominal the So careful, amount you get to right. that to got

quarters X were you it this had to the piece what's quarter range basis more in and those where But the in CRE the of is XX charge-offs. we that all company, broadly, different at the look If XX%. XX% points go

has by So that. the itself and sense look set strong. to the you adverse the versus all and classic a top some The case base to on factors basic case the reserve then is reserve give judgment loans half scenario with very of are reserve driven at the

Alison's waited, it And soft a has to Xs. today, in to prediction it's at you some. so the allocation clear that case. And put as high you landing pushing together in we a and we're base in will less But that no when all there's to becomes always unemployment get that point, look up nowhere to there's make unemployment those there close scenarios it and

of up pay to against what So a card, And start X% We're go. we'll running But remember, bit as that X% around to you up we that's on it's on were the ease reserves. general card reserving. now.

there coming not reserves. the stop back up I'd bit back, a little not cards than might that. be growth in have So to them to down to rather SPX. X% that but give

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

a clarification Just on technical billion. that $X.X [indiscernible]

then start it out And November I does XX, termination. XXXX So mid-quarter get year that, run the presume next you ratably. XQ to given back that that just

Just exact you time over get wondering how period -- of $X.X what that billion?

It's year Again, Year. is New Happy 'XX. this

Correct.

So some Ken, We'll end XXXX. of back at back the it yes, of right. you got get it

get remainder think to easiest bit say most get then back in in of the most 'XX, So the in it 'XX, little a back fourth that's we And way of it. quarter. the I'd we'll about

had you [indiscernible] what So

Or bit a bit is was little want it or it So front line of a -- by it's straight just a it little has I tail? a -- line? a so to like straight little just divided

in a got than little XXXX XXXX. it's No, more

Okay.

said the Okay. the you it, averages I one fees Can I this just remind impact, of brokerage quarter question. quarter. got think it. And you of soft then us from felt this

markets saw fourth I think first points to the should from we to starting that the the perspective. quarter, well balance fees the play expect we quarter into management And in just see from so that

Yes, for going don't continue there. at think pretty on. markets changed there's environment of mean, the client repositioning lot a markets to right obviously, a expect think now. I business has should global you our anything constructive point. performance I this There's I

go to in in the their the about to, management markets And fees the QX if those that, So fact just got don't wealth on on over going yes, I I and think then sort the right lag talking are of obviously fourth got activity obviously, I adjust monthly work you've for you're start think, is number know step-up you're based if with. the quarter -- a you the to misinterpreted, I time. just if where

are elevated the and Obviously, should future. for markets well So portend that the right now,

at. getting was I what That's

didn't Just and we the averages yet, benefit presuming there. play confirming market that the how that will that see hangs . based comes on forward the further in

by tends or so. That Correct. be to a a lag month

you'll see So in that QX.

of We'll Stanley. our from Kenny next Morgan question take Ryan

were net a a And that on side, few commercial the following Just you roughly up. that sequentially. under there on pace up is the Should going we charge-offs customers to so was it the few mentioned credit on did there one-off? ago double questions of that popped decelerates deterioration the a mean interpret and just that else Or there? anything commercial hood

Yes.

don't for -- this way. me think I let So

up. momentary X that to chart, early what's than it's ending think just you too going if look essentially that at on it's spike conclude is a things. I But other

other place X. a all couple more us, First, relative little served broadly, a while the that going were for there bit we're commercial, this and of just then we've bounce resolve We a of like small Again, the them. that over pretty were we office, portfolio. right was elevated around got quarter It to And to that's fully of that little quarter. takes but took It's things time. course the to obviously. it. feel with things in prior a this pretty against doing

So saw those sort coming. of we

a very our in you very, declined look commercial of And that reserve well can in terms that again good office in sector. see outside this quarter. criticized -- remains quality Asset at generally place of the

that that starting issue I So The a with there's is anything don't like there. change we're commercial, such any think just appears . spike. numbers in small

And more NII. clarifying question one just on

a any expect scenario deposits X you to the grind help the again? specifically IB with can you NIB to how us Or migration deposits And with there migrate? So deposit halt? cuts, to in mix NIB where this understand the just scenario is rate growing start actually from

disincent cuts, what of is the have people sense partly think that moving that raised then describe away months towards to a end rates. the rate to we noninterest-bearing. the Well, because from last trying tail X Fed getting time do to partly start And we're I going this number. out of we're it's because if we're now

we're So of of course to time. got that's the see year. what the We've course . describing develops the how over through that

from final question of Gerard our take Cassidy RBC. We'll

Brian, Alastair.

in what anymore. don't business Do but view your have industry. to over you blockchain, improve AI could it X the X it And a guys very and over when discussion digital what good going the are we in next your about pre-iPhone X of impact You business? the invest guys hear with And about that banking could for banking have that of we a frame more like have blockchain, about banking question, did obviously lot to we to future to in look guys lot done for and banking. similar out the Banking the next in Could to what for I years? area a for job this a consumer much be where where on AI do be digital Or a years you is you there's Consumer AI X today you it efficiencies. hear

relevant AI. blockchain. not sure a I'm just focus comparison not to I'm let's But on -- that there's I agree.

at look see the can you If 'XX, movement. digital you

X the page, And see chart things where with the the in of half interactions answered One digital the on that X effectively XX, people Page left-hand data, XX this operates lower Erica people example. it million of ago, fourth year is years natural lower the processing. Gerard. our XXX to in just to Erica, million you you see that's XX from in users. quarter it question, of in another [indiscernible] AI [indiscernible] movement unique on up starting on using that's year people built use million an last a And base using that stage. And early XX can We

where do that go would updating clients them. into it's But think keep inquiry to I have another through for calls, words and et that have to XXX place, cetera, process. phone way e-mails, branches, things to and able You people find million use to walks the

deploying in work of better, places, faster. promise a that help So AI, doing stuff there's internal We're -- for we it. lot think and vast we're work employees we

all But -- We their models usage still learning in still effectiveness coating the accountability, still to has to data there's it it. coaters to taken that and shop. and improve our There's it's stuff continue be high. on have and using care and that it's is it

into going to are seeing a go we've that's in that It's off to plays say -- we're cash a it things I'd be similar of And it answer and comfortable to using digital can it's and for can other going grow. of bit over to done to questions, use thing what digital far we flow things think use So that just before But will same and side can be pace run effectively. be more good. interface applying it see easier. to the has customers and little Erica we that And Eric with be start the the little it, how you promise. bought it great the of and the the we're now you commercial Eric difficulties,

more ways. it So applied tremendous in it's as have will help and more

algorithm our can We outputs benefit things. to But we've all it also learning it are if type controlled under company trying be and controlled works, seeing over hear really machine for models and much still years. the the model had how generates

operated and over amount so And it's into learning that great or autonomous dollar how the That's under a we to aren't part data making ever dependable that the or models, are 'XX in now models expenses we the basically sense. spent machine language company we're open we've with getting XX seen literally billions you the place, last give years on data promise. on models, data XXXX of operate natural right better models had the same these sure we've in the the

but using of been it's also yes, that. digitization, been more So it's

a customer. have we got it. hopes make So does have the for -- to job great high it sure it's for We just

we've good. it then of Apollos at around or and -- about inroads has on know I'm long guys assuming And markets, you seeing been as for industry we against Very lot Is be information competitor a today? entire more also, been a so, but time, the banking the credit they second, our a markets. are and same time, do they're reading and seeing shadow could private What the And balance making a the careers. Blackstones competitive the ending. lending in direct them, customers a and you then how year follow-up, servicing

into do. that Well, loans -- given got but we things and originate are on that's all can lots of issues a balance day, platforms, we their and can to the there we

So we continue that. for work to

that. business, We private we're great industry, outstanding. other and I industry $X.X I it openness we term competitive. of and the outside think of And the I ability better the take me, around excuse mortgage loans our led the just to to and lack think trillion clear operating made more that the another -- operate asset and classes, to most being has a industry. my it job have done case broadly, colleagues consumer the do is have the lending methodology and structures a outside largely commercial and outside very the

of et hundreds midsized billions cetera. have companies, We of dollars of

So industry think has good system the an help question served a and don't having originate we economic trading I with course, things asking, in and can a whether industry loans? them us on banking workout bounce part around because methodology clients or are do think, this bank operator, the policy the well. is that for we methodology, American think or and there's the our good them help enterprise reality, a I a inherent help because as banking it's policy. that not within was when it can them a way still lot policy us. of you methodology, ahead liquidation of We, going question A very more these your of the think of companies of an of stress

be become and have And true more the that were affects acute. pre-pandemic how so economy those here issues see to I And to it way. that going are we think

you great the its Stuff will matter But they We've no a team, the we competitive us. a job. So too And It do find that we with outside endemic that's got what be it's competitor. keep hand, make. moves changed. enterprises that nothing combined the of scares much and feel way great we'll regulation. capital those just regulators, doesn't are from be effective system. pushing on the mean risk other the we of But working means the has to and help it points . a of purview one us issue

comments. our . does closing Mr. Monahan return to This for Brian be conclude call session. question-and-answer happy to I'd the

a to you busy day for the reporting. New Year everyone. Thank with all on and very Happy today of lots time us

quarter good growth for strong As our our customer quarter we a all was driven summarize, company, segments. another year by organic fourth and from

capabilities digital grow. Our continue to

good that's Our loans and deposits news. and grow

you plan tell Our we each to we happen, gave of which think quarter is is exceed new we what you which NII hit. guidance, news. terms in what to continues We going to good

good And side remains have banking side. of activity to revenue, the have trading investment markets capital to value on Our we good both the sales get expense that the and management. importantly,

of from head count XXX,XXX the to us down during take saw You year, the course XX,XXX.

liquidity. does sequentially, You the that, asset up expense sets saw capital strong And all as our down for and us us take our next remains good year. quality with

S. forward you, to look quarter you we to and thank talking next So

does announcement. today's earnings Bank of This conclude America

disconnect now day. lines, a everyone, may and your have You great