Bank of America (BAC) 16 Apr 242024 Q1 Earnings call transcript

Good day, everyone, and welcome to the Bank of America Earnings Announcement America Earnings Announcement. [Operator Instructions] Please note, this call may be recorded. [Operator Instructions] It is my pleasure to turn the conference over to Lee McEntire of Bank of America.

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

documents on chance the are section release that to earnings Our available I call. the bankofamerica.com we be trust and documents. during that the of had the website, that review presentation includes a earnings everyone's will referring to the Relations Investor

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

let about during Before you, can non-GAAP U.S. on measures, cause reconciliations materials, may Factors begin, materially to be remind they are materials me to in we detailed the also financial to earnings SEC are our available Information may make just our refer differ including GAAP and in that website. non-GAAP available that are from our that results filings our forward-looking the statements actual found the financial earnings expectations measures on call. website. our

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

to Bank. billion Signature by EPS $X.X recover and FDIC additional our special losses after of expense strong quarter the Valley included by and Thank net presentation. for on of of to lowered $X.XX. you you, thank Bank am This assessment from EPS and I delivered of us. quarter in accrual reported joining X morning you, the again a $X.XX. tax the and once of results industry's the for Slide good We the X. all This earnings We of Lee, set Silicon income X starting [indiscernible]

thoughts XXXX. per nearly through $X.X is We rebound business our X. a market first, great have performance. driven a delivered fee-based conditions. of was quarter the market improvement the going $X.X from me momentarily. Banking a expense, fees $X.XX Investment good both share We Matthew to saw quarter quarter. growth net organic Excluding billion continued Investment quarter this and Banking billion and team few our XX% you you delivered Koder income Alastair delivering growth. give by nice in EPS first let in the and job on grew and But good details done walk in net share the of

our In and in middle of addition, investments the teams reflect market our results coverage benefits made banking teams. dual investment

grow as has cities to twice our from with work XXX cities commercial today, -- bankers middle than financial across our for and our team in bankers dozen Matthew clients. in XX [indiscernible] power deliver cities many to both with utilized market advisers a XXXX to more wisely bankers groups our to

Investment XX% in year-over-year the Services X to and $X.X grew across Bank revenue Private nearly billion. quarter Merrill in Brokerage

our positive us in clients strong investments helped adviser digital for revenue. training market well delivery our programs Continued as as and deliver

$XX flows management the in billion under Asset quarter. were

and over Sales At excluding is year-over-year its this trading, decade. in quarter result a delivered the improvement. revenue $X.X first DVA, quarter eighth highest of consecutive billion,

the intensity for in last plus the under leadership improvement. share business. allocated talent of balance have has sheet resulted our in We the Those momentum invested DeMare's X and in on teams Jimmy years this good strains market investments, more

deliver us of a seasonality, entered due our perspective, pretty delivered the credit decline expecting pricing From in modest with than was What quarter growth loan $XX actually deposits along the loans we within to more down sheet better-than-expected we performance, card This moves a balance and expectations. were allowed otherwise, stable. to expected our discipline, modestly performance. deposits NII were billion. that in Ending loans continued are balance any

today to decline exceeding quarter $XXX of XXXX, NII about quarter from reported expected billion, a of that guidance. of quarter XXXX We to $XX.X told million was X, NII quarter actually $XXX decline last than million higher first we to the our $XXX fourth the million. that We you

for plus was expenses deliver Year-over-year expense rate. the FDI management. compares assessment to X% inflation strong up to than a continue We adjusted X%. little That less

We company the had costs expenses. invest This in our managing compensation categories revenue and fee-based higher this of while quarter stronger We to first those activity. increased drove formulaic also continue in the of year. processing several

Fees and commissions were up XX% year-over-year.

Well, line to so -- Bank all of hold under and focused America. that to that inflation and we do drivers happy revenue are mornings We X for on primary do the because we pay deliver how the rate? expenses of remain bottom

the company First, our fund from operational and lower that the future platform risk. excellence continues growth in savings the to and improve helped These growth processes. deliver

our Second, Recall, the work. we throughout January last noted expectation managed headcount headcount of year. that will year down limited we as be the in we

Our X,XXX the quarter from It the headcount people end XXXX at is down just more people by of quarter of first XXX first for the declined than XXXX. XXXX. end

and retention across The improvement, activity also the digitization also driving volumes ongoing activity It expense factors. X little market cost ever-increasing of growing client is all with savings, supports cost. share customer increased driving

clients Tier repurchases with the $XXX would minimums for to us return regulatory allowed capital billion That common highlight and current to continued our $X.X billion. this X is That billion capital and over of I has $XX share amount capital shareholders both quarter support equity and strength of dividends. our capital our company.

organic on I a over growth pass points to Alastair. Let few me highlight before

X. Slide to turning I'm Now

You organic Slide X, of the activity successful highlights X across can businesses. see the the quarter

of and the By do, customers enhance experiences. to [indiscernible] and We customer our customers businesses. secure and our and platforms. across successfully everything in we and digital deepened relationships invest expanded continuous provide banking our base we technology our our our technology all investment that have leveraging at continue center We putting

of many this performance we our the additions strong quarter. These checking This checking continue to our reasons. Aron O'Neill to for checking additions. perform business Consumer, completes for us net accounts and Consumer that across new well, added straight at continue drive other helped XXX,XXX quarters XX consumer In performance Holly These deposits. important Levin balances and are drive franchise.

the deposit for the our accounts the of with been of us for that to XX% the in accounts primary household, checking meaning their average, than have lives. balances operating for financial years. more checking XX XX% household On account are core customer

So At when debit About start a client, we average, accounts card. relationship. they do on checking an card. a long-term customers XXX valuable per use of XX% we that a onboard year our about transactions

account. averages. accounts a brings few This checking a about have new that a savings about of on during a year. the to also by checking account owning account, average $X,XXX it that grow. Xx XX% our about balances new on savings And the But Within $X,XXX amount. within average deepened you The traditionally of open to accounts, balances. that about opened year, months checking it's below continues opening brings time Likewise, new Xx in when

relationships quarter Investment rest first as are of credit to some in believe there franchise and our their card our growth assured, opportunities best-in-class, And the company. and openings in fulfill while these of we are account to be well. continue strong statistics plenty

and about we wealth X,XXX global Nam, As net team Knox, Private Lindsay Bank. team the our at Katie think wealth new Hans Merrill the that led relationships Eric and added by

in the relationship with bank accounts core in our our banking of now relationships. new Merrill, clients clients private XX,XXX the are us. and deepening opened banking investing advisers More customers XX% with have than XX% Our quarter a

in we addition, total flows spectrum, our saw last billion over $XX In the year. wealth

now slide, than deposit on investments see Consumer total can the you Management. and $X.X As balances client more we and across in in manage trillion Wealth loans,

year's in this we last than relationships new When first quarter. Banking, in we Global we quarter to move did added more

We also increased solutions pre-existing the per of relationship with number clients.

seen our growth for who [indiscernible] have Just business, financing in and nononline provide relationship good managers our of clients like and in of care solutions the talent Consumer the benefits and customers also talented advice capabilities, needs. with seeking we global our our and our both

reached A years our interactions. couple billion digital its I'd months X X took X key ago. of to to ] reach points second It Erica, about XX than since took other reach more assistant, billion our the on years interactions a milestone success. X introduction It billion. just [ make chat of Erica our is and and Erica being practices our example scale shared great best more Erica's the clients Global across reach Services extended CashPro This and are we Treasury resolved a to automatedly, more of August, has launched the of inquiries able In CashPro. XX% self-solve. of company. in business virtual demonstrating

success, of the Zelle transactions to It Second, continues we of grow. all digital our number Shortly checks Zelle written. that, number surpassed in long ago the after that as noted a quarter Xx transactions an the checks written. reached example wasn't that the of had number

for the the represents a savings written, of Zelle number withdraws amount rapid and cost from quarter, the combined has and tellers transactions and of now plus convenience and security This continued cash ATMs. That is passed from adoption, customers. checks

progress. to read in That's the you and our They ads core XX, [indiscernible] of included of encourage over years, our for banking included These control. testament deliver to Slides continuing in and people the dollars earnings XX we results quarter This our efforts, this others and here are customers market-leading great day. quarter. XX,XXX investment XX. for work digital our expense for are under who representing I every billions to more of show our growth talent another thank solid with drive and and growth are achieved dedication our I them than them.

And over to with that, Alastair. I'll turn it

the earnings Slide presentation. going I'm And Brian. X you, Thank on to of start

he and the the covered So in noted and results adjusted our of statement difference the highlights, results income much reported for FDIC assessment. Brian the

not repeat that. going I'm to So

that basis, was returns. at the On XX%, equity XX average and our XX efficiency was at add just ratio assets assessment, on ROA return points points And we when ROTCE strong delivered our and basis tangible I'd adjusted basis reported for on common XX%. return FDIC XX.X%. a was

Slide billion that on And we of growth Global elevated Markets client $X.XX activity. the move the bulk the to of billion to in balance increase up Markets both billion decline total we'd Global let's payables. from in activity, ended of $XX the was highlight Outside at So assets, and $XX support trillion $XX where quarter sheet in fourth X, the the levels the seasonally deposits of quarter.

than increased in billion remain required. added a yields AFS treasuries note an hedged rates. are increase higher And securities liquidity, that which billion $XXX $X levels U.S. also debt [ absolute in At with securities those with ], mostly or effectively So $XX decline and securities. million included billion you'll in $XX cash hold-to-maturity that increase

from were offset shareholders. sources, AOCI pre-pandemic strong, of a liquidity quarter level. fourth fourth the from Liquidity $XXX and to was Shareholders' global equity earnings little quarter. billion $X.X billion above distributed they the quarter $XXX as remains remains with up $XX the by fourth [indiscernible] in and that's billion million XXXX capital our And increased quarter only partially

our offset paid we $X.X than back common $X.X billion employee quarter, billion bought in the awards. in we During out which shares, and dividends more

awards consecutive part share year-over-year. our year As sharing further we than aligning XX% success of our and interest common of up compensation value seventh announced shareholders. first of is more those quarter, in with their Tangible per X% associates book of covering the share $XX.XX awards,

sorry, and the Looking XX, well at current to improved billion CETX regulatory and our at ratio capital, CETX December XX.X% above X-point $XXX remained our XX% level stable from require. -- was

CETX We the positioned above against capital quite current include requirement also level is XX% remain roles. new the well also proposed inflation from our when we estimated RWA those proposed rules, even as

our of increased assets requirement above to for X% total growth. our and compared balance driven ratio in sheet capital, And supplemental activity markets, was modestly, billion capacity which requirements. X%, of ratio our loss-absorbing leaves client leverage remains Risk-weighted comfortably at minimum a TLAC $XXX by

balance loans trillion X% year-over-year, was and of declines were flat as looking year-over-year. X. by quarter, Commercial grew quarter offset modestly turn Average on in fourth growth at the compared they solid lending. card Let's Slide average credit by sheet to balances first loans the improved to $X.XXX in focus securities-based our loans partially the

lending in access. positive quarter, continued commercial a improvement loan the through being in And widen. most first larger revolver experienced spreads capital on are solutions client financing that's the and modest offset We lastly, markets paydowns utilization to for as part by note, met and being

and rate basis basis pace more than X noted XX% rate paid the to deposits on focused added, Linked XX%. total at are billion. line relative steady up points stay on with the still points. above Moving prepandemic driven the the continues Checking remained The to slow. Brian consumer the pre-pandemic rate rate X. QX and Consumer up And was assets to we'll levels, paid new from their deposits as XX XX%, average accounts keeps accounts XXXX, checking remains business of by average on Slide in mix low while up averages total high-quality transactional quarter increases $X.X yThe low. fourth deposits, is net And earlier. well of quarter of Every quarter, increased

and out paid Management the Banking Wealth accounts in quarter. rate increases slowdown Global of their in slowdown and noninterest-bearing in a saw also the in first the rotation

ending Focusing movement for from and a moment the deposits on quarter. fourth

growth. they're and delivered deposits Total grew of [ in trough above $XXX their now billion This billion quarter, good deposit we ], $XX XXXX. mid-May

straight that's growth consumer Billion, in loan nearly the the of Xx deposits quarter normal past last continued over exceeded pattern third Consumer expanded interest-bearing and and year. Global seen and of Banking the their deposits our growth more and for Banking for over we Deposit $XXX excess pre-pandemic. had loans, $XXX? both X growth the to billion $XX up more than billion saw deposits quarters, noninterest-bearing.

Slide X. can on of the You that side left-hand upper see

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

to You'll from cash. the mix of and hold-to-maturity bank shorter-term about and continues billion mostly similar also along and total, is change $XXX book lower cash AFS hold-to-maturity the decline treasuries million continued yields mortgage Note have the hedged now securities, $XX consists $X notice the that the portfolio securities. in about peak, billion of also we, are in its down to In securities and billion paydowns. book from increase with other of in $XXX as again, it

basis XXX to of earning Lastly, benefit ongoing above blended into basis of remained rate higher-yielding lower continues deposits. points yield to for to pay continued and rise we securities XXX points about and The cash NII. provide assets the an replacement assets

to focus equivalent you our tax turn billion. basis, using where was performance Slide $XX.X NII a Let's NII can fully on X, see

NII start $XX.X strong And increased a the billion provided of $XXX the quarter. growth for deposit noted, million year from as by NII. Good to Brad fourth

and $XXX $XX $XXX resulted billion. or expectation our have to guidance of that of million, compares a of quarter decline would this billion NII that Now and million to in $XX.X

So a bit originally we expected. we did quite had better than

partially higher-yielding The and aided versus to generally improvement in in Markets costs compared in expectations. Deposit included QX the QX benefits higher the in NII, offset and in less Global X than QX assets improvement NII quarterly beat our also by balance QX of 'XX. day more deposit activity

seasonal deposits modest to forward in some As as clients for And tax we payments. expect look QX, seasonally income we expect little Wealth Management impact as Markets of we their make well. a lower Global NII decline mostly bit

the NII base [ going And the after quarter, grow. quarter low second approach be to expect $XX will we expect larger NII, and we guidance on point basis. outperformed for back we compared to billion of continue to obviously we're QX half our last off expect that So a ] of could XXXX NII quarter. in having TD first a further, the And

few me materialize. end rates there view, curve forward forward that our were includes of June. let X interest year to in end cuts other in just the at It the the this quarter regard With of first expected at assumption the quarter, starting the caveats. still that note And a

loan assumptions. half performance, Our forward into and to back we recent in expectation about an includes moved deposits the growth given deposit feel loan low view moderate And also our good XXXX. and of growth of single-digit some continue these we

at asset basis, forward remains sensitivity well to March minus plus balanced. to the point forward basis yield shift Turning a in XXX and and parallel XX curve sensitivity the our on focused curve

Okay.

we to included $XXX quarter. little annual Adjusted quarter other seasonal the including as like success as and, higher a provided for expense the fourth and increase the reported revenue-related awards use $XX.X awards than a more Slide in turn were over assessment, annual this lesser for the this well billion tax billion. expense extent, merit And million payroll increases $XX.X sharing assessment. costs Let's that we'll to FDIC discussion, expenses where quarter, XX and expense,

fee Banking Wealth last across above was QX, for revenue the a and is which forecast Investment $XX.X billion Management, by little quarter. Trading. driven we better-than-expected just increase Sales our and And made

happy Brian to earnings more was last more simply inflation trade-off and expense that's than for than is growth. from As while bringing line. paying the revenue X% remind and year, we we've up make And a to said, we're bottom up almost more the you, by increased investment, our X% we're

So we think it our by represents good teams. work

typically the remainder expect we is level expected X/X down. the As trend the back QX forward decline of And year, as out. we a about in QX expense to expense of payroll we look elevated QX, tax the see come from

initiatives Continued people excellence and digital here. increases offset operational technology engagement for savings other cost and

Turning quarter, due of to Slide the a in Provision XX. baseline an basis, to consensus and weighted end most reserve -- first a $X.X reserved [indiscernible] that expectations on most modestly a as On rate. billion actual improved credit million by the expense improved compared $XXX the release the recent included from unemployment was XXXX, of of to nearly the fourth X% rate X.X% we quarter. remain book for

from charge-offs. billion a increased revaluations seasonality, credit appraisals and fourth office drove net driven estate million resolutions $X.X for the the The [indiscernible] point basis XX charge-off increase and quarter, by commercial has XX $XXX from points, was basis ratio continued real higher card fourth swift quarter.

believe quarter, On We late-stage we well. Consumer as Consumer level And #XX our versus fourth next And or credit in start credit the from and Slide late-stage to net charge-offs quarter metrics portfolios. that see flow-through so. delinquencies of delinquency slowed because current our leads increases the the encouraged should included million begin by trend Slide Commercial the delinquencies to XX, you credit improved to over the show us appendix. and delinquencies. we card out consumer charge-offs $XXX increased net early-stage of both card quality a for the we're

our and with and commercial of discussed Commercial with course it's increased the versus consistent risk All this expectations, normalization And our real the $XXX quarter, million within by on were office in expected next activity, you X still rest losses sales and XX is a recorded that on we exposures well valuations. credit net resolution; this in XX driven a X prior are process losses charge-offs of we've loans, as of refreshed from we exposures. office estate i.e., quarter, charge-offs the appetite of the fourth of the in were losses office calls. on result result that and days; we took expect of the final resolution

using We're Commercial the in we're our and and resulted quick and through downgrades recognize space loan-by-loan a in real last to in quarters. continuous several few estate thorough impacts ratings, risk office analysis, that's the

appropriate As and reserves categorization, and criticized in valuation we've and actions these a our our and result downgrades we've refreshed of charge-offs process. taken the also quick reservable the of properties,

Roughly has categorized last criticized. since the each of X/X is now quarter the slowed the second importantly, as exposures quarter of of in office our reservable increase reservable And criticized year. exposure pace

these the So properties on reserved. largely been front-loaded and office we have losses believe

of any expect in second We second half decline half in year real when to the expected the losses notable the to in we first move change the this estate And year, lower compared prices. absent a material quarter. the of expect

portfolio as commercial do. the real we estate of on office appendix a XX, view and usually metrics included our current In Slide we've

Okay.

on some Let's lines Consumer their results, starting on comments XX brief of with turn and Slide offer to business Banking. the various

as Credit the Banking declined XX% reported year-over-year the quarter revenue caused compared loss on organic balances growth. deposit to also earned strong to 'XX. billion normalization Consumer card provision lower increase. expense quarter, of continued earnings from year-over-year first The declined For $X.X

included another flows activity quarter customer very of As balances new openings also of clients, growth, $XX another and noted, period card XX% strong checking billion. to strong net showed of appreciation That a and year-over-year climbed billion. full for record year consumer investment Brian strong which $XXX market

inflation, small year-over-year and and increases, merit well flat loans fighting nicely as technology higher As wages Expenses we financial renovated off credit where investments. noted business grew industry year-over-year, leader. earlier, the centers new card minimum and from remain as were

So holding team. very expense the work by flat good consumer reflected

year-over-year a we appendix, continued digital As at you engagement of illustrate the continue can Page X.X enhanced showed log-ins and see of the to improve, in capabilities digital XX, adoption good it scores in improvement. Customer quarter, billion appreciation the record near-record provide. the satisfaction reaching and levels

strong XX. to We activity, Wealth good included flows. organic Moving and on Slide results, that good produced Management client and market favorability

first Our needs net with XX% Management 'XX. quarter, services, and advisory billion comprehensive reported $X we commitment has the and income. to rose suite record than quarter a more and of in enabled investment aspirations In net income billion little the personalized revenue of $X.X to first of meet That a and planning clients. of from us diverse our coupled Wealth solutions

the business revenue year-over-year. generated leverage positive pretax margin operating grew faster expense, than The and improving while

loan loans in overall securities-based Management strong up and seeing While average by we're X% were lending, the down loans growth the year-over-year customer noting in Wealth are the worth ending year-over-year. custom it's book driven lending

money earlier, existing Merrill to and clients see the As of Brian new of as which flows assets billion Private both putting quarter strong money since good mix a Bank growth, client good $XX under 'XX, well the management than of more produced work. as continued first to reflects organic noted and

higher revenue fighting here growth Expense otherwise inflation. investment costs the and growth, makes off

me digital here. also continued highlight Let momentum the

e-delivery. us Merrill XX% example, opened accounts of an has engaging of now its XX% their As utilizing and are clients digitally XX% with eligible now digitally.

open half, are cycle cost customer for us the improved is So greatly. times to the and

investment are examples. strength and rotation products good that of and of treasury of of the the across you Revenue and net NII. Banking and and impact GTS earnings this income banking results, our investment to higher provision platform, The by just by banking overcome revenue produced business revenue down rates On driven impacted services were expense. XX% interest-bearing, deposit interest fees and X%, less $X than reflect regions Slide XX, as lower to see billion, the year-over-year, and interest and fees improved diversification declined continues Global

of on and offset paid claims, as business, fees Services Treasury generation. NII from grow clients as that of is pressure Global well cash the new with our higher continues In client some with to the and deposits by managing the rates for existing moving

investment Investment had fees, As Banking the quarter. was at XXXX absent in Brian this XXXX a banking in quarter X strongest And billion quarter strong noted, the $X.X periods. pandemic years, and

including An 'XX. increase expense, fees in core provision as estate charge-offs discussed year first from XX% well the the increased larger of real as net reserve prior the in lift period. Expense earlier, banking in the release a quarter I X% year-over-year, including investment

Switching billion allocated we'll focus The first normally had on capital the to results X% return team quarter excluding growing X% our was average earnings from another Global Markets $X.X XX, of Slide 'XX, year-over-year. terrific improved quarter we DVA comments and Revenue on as in XX%. with on do.

a sales on decade. quarter ex billion, which in DVA, and X% trading Focusing the revenue over highest result first year-over-year is improved to $X.X

was better investment the up in in compared X%, offset partially was the quarter XX% equities driven on trading FICC and while the a was business. revenues trading decline X% year-over-year results. was 'XX. that increased macro first quarter Equities trading in results And expenses weaker down were first FICC the to the by of quarter by strong mortgage derivatives continued versus by driven

processing And adjusted lower expense, assessment, a shows down Other by the All XX, investment FDIC assessment. for $XXX declined credit Slide on deals. unemployment million, driven driven and costs. higher $XXX million, of Revenue year-over-year, at by FDIC the tax loss was reflecting Finally,

been excluding Our tax and rate and And effective in renewable excluding our items, energy the the X%. housing, have have credits would to it tax rate other for was investments FDIC further, discrete X%. And affordable tax been effective assessment quarter would XX%. related

jump that, Q&A. into Thank with you. And we'll

We'll take Wolfe Research. Instructions] question our first from Steven of Chubak [Operator

XXX%-plus you're there and was that where position, shake you may I out. around to when capital just the proposal uncertainty ultimately Excellent end where payout? comfortable you'll return running could be could expect and CETX Basel speak we that hoping game can on some type still III to

run points expect we whatever come If should out think points, grow you above I not, And run XXX excess. and expect will used the XX a we'll company, come needed. anything if we'll get the plus to basis when continue cushion, that that, it out rules returned. to basis requirements to clarity, be to up and they be either of

we're old we're so the us now the rules, sitting on rules. for $XX all just -- billion as And under of of waiting finalization these right are

We But fund have obviously, previously rules under them. new enough talking about proposed. as changing the they're

So What you also build about you're is, changes as very modest on we will should expect and think assume. basically sitting on now, the expect where you're that be clarity rules point proposed to need that. a more any beginning the capital, you to the at it, cushion the I favorable as

the capital that at clear. us rules expect continue fairly rate in to So the strong return a to beyond as we were second become and quarter

deposit the modest NII the part trajectory, sounds as back trough XQ. in it still that in recovery you're assuming half like of growth off some Alastair, that

but Just given since a as how COVID, to be that's If for your some And you higher deposit can sensitivity I NII function driven cost balances how increased tend to many attrition? going deposit you and sort of do of the gains, billion guidance? know some any of impact QX frame how $XXX of prepare of be, outflows, we does deposits. those share risk the handicap that money or recognizing

Yes.

Steven, we've say, thing, up So couple I against the of years. is would [indiscernible] last been first just for

example, kind is if from if extended in about the were economy -- Consumer, for back were today, fourth rates quarter you So approaching that to the go if XX% to through that are given Consumer you what go prepandemic deposits the is XXXX to growth and take, Consumer, think of like beginning we just to you floor. feel like of that look to for larger, to we back if And now. sustainable settle long-term

-- in this be going belief turning point we're is Consumer. QX for may to be the So still QX that

this growth You chart bottom The you if the They're at put grew quarter. deposits, can on that though. you together X% the at pre-pandemic year-over-year. and if see that back you'll we slowing kind our exhibit left on Global And see look then side rest page, on of that right-hand to wealth, business, up of they're Banking rates. of slowed it in look

some $XXX seeing we're year, over structure are of the in deposit our So deposits with now billion. past the base. course the Even up QX

So that, conviction in in go get now. as of and of up period it point towards will has right QX been we're transition ours NII a that QX, we

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

back charge-offs. in billion the thanks last last for the interactions, go XX to once the X Erica Well, And highlight consumer But outlook the X again, I for and months. NII efficiency. you billion

withdrawals Zelle check more mentioned double ATMs, the transactions You checks cash or from tellers. plus cash withdrawal from plus than transaction now

all the great ratio not you're improved tech happy with work, know I XX% still XX%. for quarter-over-quarter. efficiency to So But the that XX%

So just NII XX% ratio? progress have have you efficiency internally. we the What's evolutions a the outlook this you're tech Because at the making and you continuing, reconciling you when as do your you decline think can as all that with I'm below that? for get look numbers

stuff the Management is activity because Wealth and and we which of along activity Alastair NII you're continue think that out attach, though as as sort more efficiency. of to and there's I activity go Consumer Marginal mentioned, the expense all that Banking, through a because add and flows largely, of sort path pointing moves out, up reduce. clients Mike, don't more that no lots of more Global lots even that's numbers

continue to our improve efficiency that So ratio.

good when the company, also which, As coming the well revenue is Management the definition, ratio Wealth by Because that's lowest because through compensation of you the a business, efficiency in way growth the And thing. it process fighting of has good works, know, we're it's of business not wealth that management trend. get world, out revenues in a one higher the of base. and our we if as the -- but largest expense and the it, growth grows profitability our percentage

And so at we'll down. it to We're drive XX%. continue

paid sequentially You'd many rate and balance yield stabilized really starting grow. the as expect portfolio out the improve to the to and that of quarters now has and by the quarter, deposit continue for has to grow. The yield assets the flattened and

how about So it's going. we feel good

And leverage. see And twist interest through return down would start the again. operating to on that obviously really is then the get as in focus the us in we Our NII, to drive deploying you that expenses ratio.

and year it, thinking growth gone what the expense the has year? For or growth But quite your are bit. rest looking you thoughts -- I are a there next trying you're ahead? inflation a for expense of up about while get What about

with we last drive course just Well, We And thought over a year, there's expense revenue QX trend But will pretty payroll significant obviously, believe the year. every that, expense tax down Mike, little quarter. the and of underneath told we could this strength. year, you we seasonality. bit some is inflated this remember, down revenue

So I that million think probably or quarter. $XXX so us this cost

expenditure. if I But looking think going another Brian's to about million continues, to That's with this the only probably change, how the that we're -- the respect -- we say, environment it's forward. looking think point, over it's with time. at are we expense comes quarter per $XXX really revenue I'd good growth

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

commentary, follow up helpful to deposit wanted on I the Alastair.

mentioned rates are. you're that expectations mix have that, Wondering half stabilize of the your kind for at in this seeking thinking wondering and again. you of loan what what higher pressure rate for Earlier the So shift that outlook it's just some you're moved longer shift noninterest-bearing back baking I'm your deposits. thought customers from year, tumor, on had. your in could behavior those interest-bearing planning? in will you rate-seeking And terms put in, already mix

the But sort could to paid simplicity see slow through fees earnings credit. I you're in. and of see quarter 'XX, you It the seeing are settle and way it's the that quarters you if the up interest-bearing, is of the so Banking from complex. you think noninterest-bearing of be area, the that across have Global careful messes all the can 'XX left-hand -- we of change John, the in the kind you about to first if have people of the dramatically the in one quarter at Yes, rate Remember -- coming look at mix X, first and things corner. look of

lot at $XXX October, you at that, the go to billion. of the a back $XXX of moved -- relatively a in it's early stable don't for if all been the part billion, has I X-day So them way Consumer, look average

in benefits Wealth and we're getting and the and seasons So receiving to People the Management outs tax just and wealthier out on ins the on side. side Consumer. the tax business tax paying

as it down don't So in slowed deposits how been and change in relatively the savings, -- stable. what's We It's are grow. what's to that, that. stabilize massive we checking, in really in what's we expect a expect from a structured money in what's markets,

good what you $XXX-odd balances, business really at Wealth very the all company. in balances the see drives it's in to core drives that's the Page it. Management the but around, good on even highest look dump the can value, balances, value if you what checking X things But checking paid value for the are billion So

Yes.

You're behavior still kind that of the like rate-seeking bulk Brian, likely done of moved so. have feeling, on people have

Yes.

dollars the purposes. people from deposit about now, business people for of thing all multiples was balances you of and pre-pandemic couple it. they But is are came cash. the they higher about still the think pre-pandemic. prepandemic, end those rates on and Consumer accounts look with were look one to lower up, you in And in, if that the cash is a day, at all obviously, you you where are balances, with moved tracking we which pandemic on different it which where lower If hundred were when deposits where actually average you at gives when balances talked if more see sitting of Consumer, what over because, And the accumulate they million the

going higher market. they going are largely level a $X but it basically sides, at stable right as are accounts track have on now, seeing both so moved we not -- relatively it the And moved. balance stayed, every people not with balance that ones lower average XX% from month-to-month, And around they because month in And same bouncing million up. the the down, people pre-pandemic for the the frankly, you're have but is $X.X million, XX%, down

be So There'll ins play feel how at look stabilizing. extremely we valuable it out, and it's outs, you and but see at. we'll

follow-up as what are It's this dynamics of Is And the Alastair. like? some interest to the for net fixed positively maybe see markets feel nice asset quarter. And reprice do the core that sustainable, inflect NIM, yield quick you that a are...

fact this benefits the Obviously, We've Sure. growth. that quarter from about net the interest the NII talked yield,

the So we numerator. the we the inflated But you're earning last sheet liquid. made getting in denominator in assets of balance year the just as more average terms

grow the over without necessarily earning time growing income So to growth, allow other to assets. interest continue us that's going to that the deposits

have will QX more going of QX improvement But to a NII interest all a in into expect So challenge. little forward, I and the drop QX that net yield.

sheet, off that, out, John, things pointed supporting do repricing. coming is you the we've have of Because balance booking higher got rates. at loans new the lowest as part we the And loans we're

one So that's element.

we're Second element those reinvesting is all we've two. got securities underneath that

of had sweeping quarters we're teams whole downs then I at maturity and in have hard loans. improving things pricing. a those reinvesting third, X now the the believe row for obviously, broadly So the And working And like to much higher balance at we've rates. been pay repricing loan sheet

to grinding that. got So at we keep just away

question from We'll Morgan of Stanley. Betsy Graseck take our next

wondering the My results XQ better conversation you just at. know I your on I kind throughout that helpful. I ago. basically the year-on-year quarter give 'XX? NII just that improvement follow right? be base sense year-on-year, that is talking being to NII of That's Should guide on that second a guess you're trajectory that If half is going year? would you're this from when what to about look, of just first question a And I half, up 'XX having. on I'm the that, thinking about you're improved due a believe XQ. that, half stable in anticipated NII reduces improvement. us the second down get looking about an we anticipate is I Or year? well it's Alastair, pace as wanted quarter how we're than you be could the to X%

Betsy, before to good it's luck Alastair question, with And wish have answers everything. you you your good we back.

So Alastair...

Thanks Really so much, that. Brian. appreciate

you. It's good to have

things. a guess of I couple So

the The point first this terms in the and year. haven't we is perspective the thing low idea our for changed being QX trough of of

We QX. and haven't changed point our of terms on view of QX in growing

think for what growth optimistic lot we'll and a point, time structure the expect couple thing important think which you QX. I the able in reasonably stability in of well, from that. of in cuts, like feel we're is rate I benefit going to second of pricing in be and in to extra we we're should wouldn't time at by the QX, to rate Betsy, less that the and that flow and more trying tell that of continued convey about hundred this the million cuts we deposits, we're as -- isn't rotation in if because there. about stability there for be know then we enough necessarily we'll because to more QX, how But the something the get We we through year. because continued QX. And QX is there'll is watch QX to half QX benefit QX a dynamic have But in back or

on just And That's follow-up AOCI. one then is the perfect. Super.

Or... And guess, fair off. on, a book that's So we shifting you're that pulling back balances you that's [indiscernible] with to a curve is been risk a had it's today is the towards understand ago, a wanted than and that securities Because how of year treasuries all know agree of just say, people concern that is this mind. that's increases, I are function example, portfolio that that the in if can of suggests HTM it in a And your thought you've less I I that? the runoff comprised? end reducing as concern how is for -- been trajecting it would much what

good of rate But us that program always, I that in over terms book, mean hedging had the securities swapped. in Yes. It they're we've hurt we've fixed of necessarily on time. delivery pretty doesn't AOCI. so worked I a think, AFS

see you all are So of the most in portfolio treasuries our swapped. that

So in I would of impact expect the way there. AOCI little very

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

than Fed are duration be less mostly extending of keeps unitsin you but do the think transition I the managing cost much and different thought How a in. a as to question. X, the I going this progressing correct, talk forward a half duration and to is, On about not differently, to year. know what curve on to about AFS swaps Perfectly being question that? hedged do Slide going rates not the My about to come eventually rate? do we you you is little

Yes.

and same philosophy So do look, Glenn, point. use the strategy we'll mean, to that I ultimately this we

can have top excess rate deposits us we we in that to in, trying That's balance see in We're to are that, very left to any obviously, to excess what you what yield, in Page side. where start put try in that it's the performs and of paid, The top to compared allows good X, deposit this position everything loans. substantial We in creates a strike, and sure lifetime the right. cash environment. make securities of

think at rates, with I So X was feel that you during where there's like, one lot an this in we like quarter-over-quarter. going on look basis an environment awful the it spread, if point

to here. rate we're environment And pretty we're go perform a down to trying the value, balanced regardless out be. deposits or up we from like allow feel long-dated, monetize and got lock the us turns pretty we We've good of That to balance So of now. short-dated, sure whether that floating. in it whatever fixed make should

gives got all I to I thing this. John I'll know say, of we've just of earlier, resilience Underneath little and well, the repricing think securities you a asked what this, all as of to we've underlying this. One and final think obviously, that point, some and loans repricing the bit got

should I Yes, time. of you have guess lot decide a I flexibility get you to that.

follow-up. one Just

deposits You about [indiscernible]. talk

how mostly growth. like -- know way just year is growth X loan loan loan smidgen You in and leading to can normal DVA it? a bit I we loan another had through for to believe yet But growth growth. low think. not have economies, to are of no this that up you would back and get Are any we yet, an we go wait indicators slice cards, -- years in there environmental a little X we're got of it, strong year-on-year Or you lead but super we or with I to any more markets up

is where, the that rates behaviors. is of an people's changing economy in transition at ad are We're sort and period post-pandemic, recovering

utilization good by got are Or card is loan actually higher, lot are of costs fact that, rates doing revolver we've with offset pretty And So X% still some the got growth. revolver we've just credit less for The people example, securities-based growth. more. that suppressed that's a at commercial, lending in because it.

Fed changed that up to time. through some X%, forever. raised the to out, the but as it's that's of going is has to growth [indiscernible] point the clients, not catch going patterns rates, as last So borrowing of Because over you ends being, powers economy our up loan

an pick not some enormous of in So we're the that our point but NII growth point. part it's at future, this will at loan anticipating guide up

that larger and lot the clients gotten the of them up capital and refinance. rate need opened to the markets used frankly, as they, And a access to higher have just remember structure

businesses you pay saw billion, was on and Corporate and Banking companies where loan look really commercial if progress down. segment banking, downs in that up -- revenue Investment to across businesses, across that But it and So $XX the growth, look up the middle market in you actually the $X.X they if run. the of you've saw end, bring to Global the in got commercial the you business, high million business sort

line see That fighting time. growth. we few for it's It's that is quarters stabilized it probably are occurs in But been we'll loan stabilized terms time than better the and phenomena And frankly, for now of is last play and out. one usage trend. from to

you And you all read would as paper about they of to quite read statistics, day. as but not one fine, debates again, feeling so and in that's speaks every when people they're can economic the the aggressive great be the

from question Bank. Matt of next Deutsche our Take O'Connor

lot questions of I color. So a on guess. of lot been a and interest income obviously, there's

like longer side. show the just exposure boil is like the good you how disclosures boil rates the you a just for couple deposits put together, it Just it But does to down. Or the think talked good? to higher accelerate match reinvestments, you X when rate Stable either you the about. years, repricing? trying billion on about of of would when that all deposit environment, you're it's for that down, still kind Or that obviously,

it a is hire we Sure. on why higher? to it general what's Right statement. Well, become a the The Is down? I'd control? say economy? better now, inflation? Like in about appears under rates that banks will generally Are coming for for going speaking, case. higher as Is question probably talking longer be are

that And -- that's real a because place. enough place. Fed a to good a obviously place in in sure they have stays appear a rates inflation high to that's good So the make good is rate

Things can narrower an nudge years just today a XXX that's And make through NII set that, disclosed so awful and perform it before time. what of us. that's to over inflation taken we're sure we've or you're why that time $X plus anything, better look minus stay is sensitivity lot we because ago. the billion change of the for per just for good trying that lock rates. of than the But the gotten upon relatively a just generally environment from XXX, down narrower higher it's was us corridor shareholder benefits expect asking or course second in the the to which to next than probably that tried depend would around like $X to that just for XXX question, is plus -- to longer so continue balanced. And then minus we've billion make cuts, sure I X quarter if If XXX, far. a as has will speaking, it's to the little while

out. were environment since X So see a it's how we'll last X. talking the now about cuts, quarter been year plays It's only we

stay play So out we have to watch and patient. this

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

but of a the about pulled real back whether from little a I DCM future. or from And green and forward breakout What taking forth bit And bit so much that you done as terms more wonder good to think just inning that level? -- productivity terms where are things getting you a a terms not was for within permanent some of shoots, what but in the banks that. you line of have quarter is a of wondering not other One, a there more higher do A incremental of guys about in job broadly, share. IB IB was line. you that. think of just couple in

the So in run-up mid-$X.X type I about the quarter. sort in the we're you the billion prior you've this of market back think of it, sort We as said. years after period numbers you think of if pandemic, had stronger fundamentally go and of a couple to position,

good done. So we Matthew work and gain we look we very And have continue share. feel team believe as -- about it, to the at they'll the we that

find think more it's what out. and or level we'll forward normalized I a this is pulled not,

work able we should off, our to be one and the dynamics we've as those the markets side given of market level middle business, our globe, I the across internationally. penetration clients normalized done those up especially in working plus earlier, build better more a in management it's But generally, and whether working said wealth the

the So combination we has very feel everything good that Banking team Investment strong. the done, Corporate is

from don't we an think watermark, build here. is and to high able this like should So be unusually we

earning about or kind Management depending turn to just NII terms terms Got one to mix worse, do sense And better, brokerage where of how turn cash versus of earning sitting, you of in then client fees. it. answer that could management. wealth that fully Wealth choices And invested on that the the in is the business? to goes? And Where whether question Okay. they're the

but highlight Wealth not it's that just we flows lot our coming in this think that cash there's of on elevated investment cash their too, short-dated chart. money -- funds, a But see regularly clients at maybe us in for of there where captured market us, KT of you are Management, that Lindsay, the deposit levels of and is I treasuries, our maybe Eric point. a and the that into lot the area, lot A have. can

market to at continued supporting tell on amount But sidelines the of would under it's by this that depending flows how So out point. over on cash going we're -- see the just the shakes stock the assets obviously, all ability the management you struck forward, time. sheer

of our next [Operator Cassidy And we'll question from RBC. Instructions] take Gerard

have didn't or Alastair, increase the is XXXX the Slide can 'XX in positives at maybe When the growth coming back to but back a your experienced presented. meaningful end of just which guys go impressive particularly excess on upper you what from deposits, drove of and to X, look only share obviously this you XXXX 'XX the at all you take to through left in company quite with that XXXX, today. not deposits? from you deposits, Can us you've

long of dynamics. been to I think, around George, some enough understand you've so those

move was core off post-financial they weren't chart, if kind that because it the looked we loans grove loans driving crisis, from stuff as we us. out -- lot that had of $XXX troughed out you that's of at where you we we crisis So of in financial billion it, terms the got level and a behind then XXXX, anymore that lot to call ran out now we growth. through had on and started pushed responsible a In and grow a It there. of

and you picking had loans if could then, then the the we think [indiscernible] back I But overcome of we up. $XXX almost start grow, it. On -- could so remember billion

it's right the from then whether side, there, getting card positioned growth auto now where the push play by discipline on to on is and business. loan on equity the could we to it business And loan so we home business driven on want start

we've kind source on it of GCIB And $XXX for quality growth getting part crisis a wanted. commercial, was beyond of and we know, us international, $XX that, type out XXXX through probably And the all financial side, of -- billion been their business, from, of loans billion, issues getting outstanding gone had the don't in almost it less from Matthew's great billion I $XX but we commercial to number. and has after in was of credit

of by team international credit Bruce done Green Thompson our the expansion and great and with and our capabilities work Jeff team. So

a So all that loan together, put that's side.

the about a as organic and XX% focus now the much care And that middle where that go customer said we're gone net to prior to started of mid-XXs as the the beyond it primary for consumer, lowest and really net from accounts, On ever crisis sales of and the satisfaction box, team not going as all ever [indiscernible] et growth drive checking number the in over Preferred growth checking deposit checking of financial drive We've satisfaction, accounts, customer then Dean gone Holly core X the in to cetera, XX%. top push and from et and cetera. highest the to Tom the side, sales. accounts opportunity had to levels really in Aaron began time Attrition core. We've kicked in Rewards we in. new core down

more retention accounts. and to and higher also has And led higher all then balance that

and billion together $XXX-and-something the we've at at then and merger. billion driven so now than probably Wealth the around driving value of Marietta after was to think, time a prepandemic of $XXX there, I the that And real franchise. to of That's it up probably from, between billion Management, aspects again, kept in 'XX us $XXX what's the And team That's core XXXX, consumer the from has less billion. deposit beginning grown that, the $XXX $XXX then billion.

have it. those the things just driven So products. investments are that part business all of these And GTS

tightening still your growing of that the we're a the to feel and up now the after stuff which the in good top about spread balances faster, quarter, a that which all is earlier, very all we but of so narrative the the lot one the back loans, is over those all deposits amount don't again, little qualitative position. and leased that they use of that kick hopefully, and high grow the of loans and Quarter colleagues happens. counterintuitive growing kind of So mentioned is interest rate and will still

those X you basis rate, And in that's on Page a the of quarter. quarter tremendous all-in the funds prices XXX flattened And just rate those out see company. for have of points linked deposit leverage on can bottom modest deposits, is left-hand very as X.X%. Fed the change And side, cost against be the the to

as into sense with you helpful, year Very what's see a You guys down you're when if guys Alastair, ratio you comfortable III the share read Can pointed Basel it. of could Brian. Maybe you very a in latest? the kick follow-up, I as proposal? think, next to ending, And III that Basel all ending with originally it do final CTX possibly? your watering you proposed, have may us about actually a on

until place see have the update and We're listening kind for you wait the updates out. to on of we an the come we're Look, in waiting Gerard. are. from we those rules for still out. vice chair, come the We're Fed we'll same yet, don't And timing chair and

rules is key enough us. billion, we in any interpretation, you nominal that what on about under the would increase we're to told the that even $XXX positive the under exceeds on changes sitting that did we're we sitting, propose. they in RWA Anything be current for that earlier CETX amount, the current modifications, But

don't so standards. capital we're those to off running. to and meet we retain need We So -- don't

of Global. We'll take question Seaport from Mitchell Jim that

If deploy with beyond growing on Powell deploy to or it reduced, that just put do you Gerard. the loan drive to how see other growth as -- limited sheet Just one buybacks? just be growth, opportunities loan suggested, question Maybe III that. is it's capital likely curious you last Basel last opportunities balance trading growth? building whether that more to just from is Or follow-up towards

to support is one, number businesses. the use capital to our interest primary our customer Well,

seen you've happen that So the in markets business.

committed years. almost up and also, and in capital continue importantly decade the trading systems day and technology the over of last was is only and But it money As a the management investment to best if of not we the a one said, make several being sheet every to they That quarters the other business. first process multiyear things, quarters. balance risk

So we'd the loan, to supporting supporting that businesses. like supporting it, all use that's business business, where

capital capital of growth. and to doesn't loan kind The it's digits, reality business you is, mid-single get markets loan of a of growth in the the the outside then up. that go And -- lot that

So returned. that to just is be there

we capital. basic a is And we bunch got phenomena. so One store-housed X of

years few happens proposed about with the the ago, CCAR last dimension a few think whatever and between that changes capital changed years and the now then you rules, the in them. If

of So in sitting were sort they in pandemic. that the

a Before released that, should be fair on here. amount sitting over That time were we capital. of

are forward, that's support responsibility. question a to the be third generally, rules modest going need secondly, what capital. is do primary be then you our then again, the what business, that would those and And will amount of which But

And of question an so branches. and we've technology investments, our investments annual really $X.X billion billion a of years, is of expenses that's to most technology expense more in deploying capital across more desire is last than gone from to But more and the question. $X couple

All right.

for up think attention. here. all, I we that's correct? Okay. Thank time don't wrap it Why and you your

Trading. marks commissions Wealth quarter organic call strong and Investment and the every Good fees of fees another Management This business, and of across growth what Banking quarter this business, continued quarter. we

last the NII outperform what continues for quarter. to quarter told we you

quarter, that as half meet continued the through quarter, First that second trough go of we rolled and into the the we in year. we expect performance second and

inflation and expenses we continue liquidity We and balance strong to manage the rate, with capital strong into and well start a sheet.

to are Thank we look So quarter. job next forward a We team you. did -- you this the great to quarter. talking

does earnings the Bank This conclude America announcement. of

You And everyone, great a may now disconnect. day. have