Bank of America (BAC) 15 Oct 242024 Q3 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 my pleasure to turn the program over to Lee McEntire.

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

documents on those earnings are section release a this earnings Our available everyone's hope bankofamerica.com make to had They call. we'll I of to the website. include that the review presentation chance reference during documents. the Relations Investor

of comments our CFO, Borthwick, Our Moynihan, take will Alastair CEO, -- the before the details Brian make some opening quarter. discusses

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

filings Forward-looking statements materially management's website. the may current uncertainties. assumptions and are and that cause to expectations SEC our from that differ subject risks are are based in available Factors to on that materials detailed are on results expectations our actual earnings and our

financial measures, are materials earnings reconciliations including in GAAP, website. to that found be can about Information non-GAAP also our available the on U.S.

it So Brian, that, take with away.

and us economy continued slower Lee, strength falling you, to of and good America quarter of to thank discussion all albeit stable, be quarter continues Bank inflation. growth third an in our Thank our this for for results. and joining that demonstrate morning, with you of

you we about consumer asked time So many of consumer indicator our activity. times, what customer do payments from of our time, see base? to many As me talked own in we is an

X% to steady in the XXXX in under this growing, quarter been economy activity the up is after when summer frame the payments consumer those growth to are This XXXX early control. for movement was were consistent spending October. pace The and time fallen customers economy. spring in year the year-over-year This was of consumers into in late in summer. money with payments inflation the moved X% year-to-year how money the Those since continues having has total money

matters. But bode of to low and growth worried again Unemployment fine. higher consistent overall, consumers the other is not commercial is in say it steady, quality. for of consumer living, activity are see and asset is which what respect we about businesses, both the rates well of This With overall cost is to and that our consumer report wage meant wary for is of are and with growth the they Therefore, final remain aren't not medium-sized are This being worry if rates cost They Line us the They economy. dramatic in of pre-pandemic simply credit board. with lower careful across more businesses. usage borrowing lower hold. want does and being than the small for cost being conscious grow. will surprise increase They to indolent. demand levels.

$XX.X billion called interest $XX in generated revenue we've earned So of how net responsible billion we America, the illustration of income a remains occur in commitment the right Bank In ago, over America of second Bank after to income of $X.X XXXX. Year-to-date, just that. we backdrop? quarter growth our the Four generated quarters do and this did Bank quarter this is tax. would our billion. in and quarter, way. net of did net third grew, unwavering, of America bottom that it another against income We At

we expects again market expect X, X. in quarter. NII we even this NII the since rate right X to in X. Alastair quarter around quarter bit NII it bounced as grow a will with the that, expected in has we we Even said And quarter troughed more got cuts that the rate quite indeed as environment X% grew as later, then note

Global capital we returned and our the quarter, saw also needs $X.X growth in business while revenue a our of shareholders, We of Markets billion Investment our This healthy supporting and clients. Management to Wealth businesses. in

quarter. this Earnings than offset brief per dive modestly more improvement at that At $XX.X income we from noninterest in let's the a revenue, with X. decline as quarter Slide into third in came in 'XX overview, billion year-over-year So $X.XX net share grew income. in interest

year-over-year of grew year-over-year investment was fee brokerage performance improvement Fees revenue. strong represented XX% our services, in Wealth led The business. X% by a and in XX% Global mostly total in Management

We also fees year-over-year. trading year-over-year. an XX% Sales year-over-year. XX% grew and investment In rose impressive market-related revenue XX% revenue aggregate, these banking increased streams

the Our company total expense in increased X%.

good attribute expense most year-over-year areas. by a of market-related the Overall, team. job You growth these to the can

losses told had you On we go asset delinquency A time. few quarter at quarters quality, credit this down will that we trends ago, consumer seen given the

proved and losses provision these $X.X true would Both again this expense be also resulted lower. Good you in unchanged office from billion, quarter. quality was quarter last for which We this of asset quarter. that told charge-offs net at

partly performance investors. A businesses is the and companies diversity other people company. and to earnings our balance and Global of serving and attributable than Markets more half through Banking from come Our GWIM and our institutional come serving the little the consumer businesses half from

to this So we grew quarter. let's turn organically see how

We on are Slide now X.

our throughout Our a accounts clients has leads high-quality engaged clients. and by driven delivering growth experience and organic growth Consumer the focus all with businesses. customers on way been continued solid organic

share. XXrd the consumer our base expanded quarter, net added customer For accounts and consecutive new we checking significant and market

X,XXX added In XXX,XXX months brings Also a added than our Wealth and in investments manage we checking added X 'XX small and organic us the across trillion accounts. to of investment which our businesses, of new we this client commercial wealth our net in led business. now products net clients. GWIM hundreds note management more of deposits relationships. new and loans, checking XXX,XXX of banking growth that first we consumer has This accounts Management, commercial with business growth quarter. $X.X net clients banking In another balances and saw balances new relationships We to our to quarter, customers banking strong investing in this

again loan business, Dealogic in start received pick IB of billion the We in past those a demand saw ranked solid pipeline. up $XX Global to and In third X we flows fees saw our late We into in have business the quarter. quarters. Banking

for strong services commercial last global transaction businesses our grow over and platform growth and around quarter. the Our continues the a world to deposit year showed

This intensity of DeMare business quarter, the Jimmy quarter year-over-year Global momentum. Investments Good past and in and sales the of this work the in the trading. Global trading and continued saw the teams made growth in XX% Markets recorded a enabled team. revenue sales tenth Markets X years. and in we've improvement consecutive by has a

clients continue want our and us, from it comes especially capabilities. more customers Our digital when to to

discuss this let's X. So on Slide

our Slide digital X success this highlights platforms. across continued

lead I commend included in disclosures industry. appendix, you across we each granular stats usual, we the which business's pages the for to digital our the on As digital believe you the activities. of more business, give which the disclosure

the drives fully our usage consumer. GWIM consumer stats utility Our for banking These integrated you see are and points. investment customers across strong application proof

second enhance experience. Our capabilities customers' the also language

grown those million users, than and digital XX times users billion X.X have more than in active logged We digital more to this quarter.

XX% touch across in sales drive properties. takes quarter. to sales that also sales for total to and represented individual the digital continued their our of continue this consumer high both, America. clients wealth We more with simply spectrum Digital high tech growth see Note it

interactions our with both client relationships continued usage AI-enabled X.X to user our Management billion In and see business, Erica, and Wealth assistant, increase its continue Zelle since increases. reached virtual launch, we in showed or are banking were Merrill investing relationships new customer the being accounts efficient banking whether accounts. more our This of XX% and accounts digitally, coverage advisory opened they investment for teams. open. enables full

Finally, banking active. relationship our XX% of global clients digitally are

and track directly initiate and service by enabling requests innovated inquiries significantly streamlined award-winning to our clients have We CashPro platform. within

just in As app nearly last sign-ins months. a result, clients for XX% the increased XX these

the see continued could remain businesses. across our great summary, opportunities generally. for out environment growth In all factors business external our still remains affect the to and solid, We economy economic issues there that

continue We are market to driving the technology focused efficiency. customer further all investing experience share in increase our our to enhance on businesses, in and

NII growth that, for growing discipline, now move leverage we in and complementing return with to With along through fee With our the details. NII additional operating XXXX. growth, our as I'll expense solid turn Alastair now to with to expect quarters continued we --

Thank points Slide returns I'd add the assets XX.X%. average of on on that return I'm presentation. touch a noted with solid equity we delivered tangible on here we starting earnings as and X on and XX basis you, more highlights return just work material the of Brian. And of We'll through common

sheet Global expanded $XX Markets the relatively flat move the balance liquidity that the cash you to the our investments in the the can Slide the ended loans billion saw quarter quarter. combination hold of second to grew billion total liquidity and quarter, at quarter. on X. see shorter-term second in the assets, securities the So trillion a Otherwise, excess $X.X available-for-sale demands quarter let's as billion and from client where balance were sheet commercial $XX investments $XX maturity securities of and in reduction of to of up

billion Global support global for funding deposits that and the to side, with the On $XXX $XX strong consecutive Markets quarter. our to compared clients now ending needs of was noteworthy second average total up grew fifth Liquidity of are basis. an and billion $XX the It's on up deposits quarter. our remained billion balance liquidity grew that sheet sources

AOCI QX Shareholders' billion equity. in compared offsetting by and rates a common and equity preferred billion it partially was The improvement the billion preferred a driven in flow in given quarter. $X.X from capital $X.X up increase our decline to returned in driving hedges an equity in billion shareholders, the in up common $X.X an improvement to cash included the redemption $X long-term with equity included drop earnings

regulatory in The shares. $XX.XX billion $X.X third $X value to the billion 'XX. repurchase Tangible turning of book capital. distributions capital XX% and of $X.X share per from quarter the And billion common dividends rose in includes of in

Risk-weighted growth. And modestly, to by was new balance global minimum activity that to level of as XX.X%, X.X% for plenty increased the needs and of supplemental CETX above and markets support was both and ratio requirement well ratio leverage Our the clients. October X%, CETX improved capacity assets remains XX.X% X. our to leaves our which $XXX requirement billion sheet driven of compared lending

capital Our $XXX billion above means remains ratio requirements. TLAC comfortably our of total our loss-absorbing

dig little using let's on from deposits So the deeper second quarter growth the a X. and Slide

deposits show and Here, linked we of X% increased grew $XX business. billion deposits year-over-year rates line Average quarter. or you the and modestly by

basis point. interest-bearing X this rate higher and increased increased worth X rate rising growth modestly, paid in offerings. management points Notably, driven again driven in product Global to noting paid continued wealth by basis slow quarter-over-quarter to mix And It's declined by Banking rates product modestly, balances. Consumer XXX. quarter, Banking increases that

is actions following since of portion below small late those cut to October in for from and our paid acted pass-throughs in XX September expected Total business. Business quickly of Banking as are only occur. in cuts the Global all point the fuller rate deposits a Wealth quarter, these our We later basis fall And X% rate the effect the reflected.

QX to credit commercial And turn X% balances loans X. loans. as in drop improved by by driven Let's well of Slide year-over-year, this a average looking year-over-year. of X% commercial trillion $X.XX real solid loans on in X%. as commercial at vehicle included estate loan growth grew importantly, and card Overall, Loans loans

from muted grew Commercial real paydowns Consumer higher estate, by year-over-year were in consumer mortgage annualized exceeded originations in credit growth decline overall quarter. the as second loan environment. balances loans, the borrowing rate Banking growth commercial and and business was and X% a driven by card, small vehicle excluding a up was X%

X. and Let's to turn our Slide focus performance NII

slide that is at nearly XX. we in excess our value were or note in and higher-yielding QX Page billion in in $XXX the that shareholders, lower-yielding book source excess a trended and good loans $XXX AFS to longer-dated our short-dated for hold-to-maturity liquidity assets. of XX% excess off, of of deposit and continue end billion continues be securities. So of to cash levels roll of The reinvest appendix our investment Deposit is on

The blended on rate securities cash remains deposit yield above Page well of paid. and our XX

inflection our third our that on in was basis, to tax provided $XX.X back quarter by number expectation GAAP million of going point last was begin a to would and the quarter. second we a the what by NII NII be quarter, QX $XX equivalent the billion. non-FTE Slide second quarter grow third X see And the quarter and this in first we billion. increased earnings trough that's factors. regarding So driven year, of from call marking an basis, $XXX then NII NII for fully you a NII would On on 'XX,

in Global asset impacted higher extra pricing; September repricing; basis one partially and Markets those negatively NII. also fixed NII rate benefits. activity cut all funding day and point while The costs XX offset benefited

are there to and more basis. NII, quarter expect of NII expect $XX.X a billion grow view several or the forward still we a be and obviously in quarter, variables to tax fully fourth regard it equivalent With to fourth on at play we

we curve basis Now includes cut another so the XX basis assume the as we points materializes, and note that XX forward assumptions: that one First, point following on a the in that October XX in December. November

assumed modest the balance loans in QX, deposits QX. building We very also in both off in activity seen and increases

for higher-yielding as from $XXX assets you described expect periods fixed securities aggregate in into to of to that told $XX many million those and rate loans And benefit BSBY NII basis. And previously, in billion to QX provide the see we a quarter, benefit ahead. expected to alternative Last a and transition. expect the we reprice reprice we rate roughly on quarterly are about

us this think we So XXXX. well for up sets

rate months a below by interest curve. to an $X.X shift billion. while a by the would above NII NII $X.X the in regard basis, change increase points decrease for basis dynamic a benefit would we on On decrease deposit forward NII of XXX over XX XX-month basis basis, next billion, point or provide XXX sensitivity instantaneous that With a

Okay.

X% Let's aggregate Slide Investment earlier. year-over-year. that all X% by reported the revenues, We banking, we'll fees up revenue now and primary discussion. and XX the have up areas from than and they Brian incentive and in activity $XX.X billion improvement this quarter expense XX% driven to more for and second X brokerage variability and trading and expense, quarter noted in revenue the were the use second turn in other up investment sales versus quarter,

roughly our nearly received. quarter, a welcomed and than college the summer was up XXX,XXX applications of X,XXX and graduates we QX, XXX,XXX we In X,XXX interns, of roughly headcount little from more the X,XXX this saw departure

billion. expect head we Regarding QX, to don't investments, And much we with in QX $XX.X expect our count. a expense line forward with be in view, change continued in at

our return look and expect of we with As in expense operating a expected ratio. and through efficiency an XXXX, leverage into discipline, we NII return to our improvement growth

were range We've to Let's compared $X.X report lot news in to credit there's Net consumer pretty to the of good losses two from second billion And flat charge-offs turn exposure. tight basis charge-off QX. unrelated now. ratio commercial few And X losses of we from losses. on the a office Outside not here compared quarter. a down otherwise, we that, had net QX. XX Slide for points, seen quarters saw is a point somewhat XX. lower The basis to was

reserve Provision $X.X unchanged as was constant. remain expense from at billion QX levels

on And reserve X.X% to by most with rate basis, weighted X% end unemployment the rate an XXXX we to of recent for the compared regard levels a remain of reserved reported.

commercial highlight XX, portfolios. really On nothing highlight quality for the we our metrics there's Slide noteworthy And this both consumer and page. to on credit

the on Consumer strong to their in lead company various the Consumer to continues brief move on for with growth XX% included $XXX of comments and XX quarter new investment Slide a which some climbed Banking. let's business So to of consumer openings results lines Banking clients, of strong another and starting organic card and checking record net growth, balances period billion. this another year-over-year

It months $XX strong billion addition to also XX of at included market in appreciation. flows

Practice As related Solutions small doctors and leader. our One where professionals note, vehicle noted for loans credit as and remain lending earlier, business we card grow highlight XX% dentists nicely to loans as year-over-year grew the group and industry year-over-year. from well saw

to organic net of in drive income All $X.X billion this growth in QX. helped

from year-over-year reported lower card as NII, higher by declining revenue offset X% earnings So strong, partially declined income. remained

that we shift of earnings continued business those minimum And included $XX,XXX. shifting our to Expense begin investments for to our trajectory well. wage business per X% we announcement the associates our people, those should in $XX the investments. rose and this salary to in annualized the as including see in NII, our as nearly With minimum moving raises hour,

continued digital capabilities remain the and satisfaction appreciation of to record from investments. As adoption illustrating Page you XX, appendix, levels, in can engagement and customer continuous our improve the near see enhanced scores

XX Bank their nearly in of usage the writing the Zelle up Zelle checks and are XX%. of checks and to Customers using ATM more than and million are Zelle usage has Xx is at users past volume America's the surpassed combination now meaningfully XX% months up XX written now rate withdrawals.

flows. We continues base the Wealth good together diversity management Management assets banking under and improve. from investing market with XX. the our Moving our increased of continued clients, With on growth product of clients with a results, usage Slide increased produced to healthy reflecting levels our organic increase client revenue to strong in banking activities activity of and impacts

In banking XX% in income XX% earned revenue interest 'XX prior advice billion over billion, management by than of from to have revenue income of our earlier. $X.X quarter net now that growth we of third fees and the More this the our Brian asset the reported in QX, now model. us is complement $X.X with year. XX% wealth Net year highlighted nearly rose clients products fees to in our growing led X%

growth and households growth and our business digital growth Average graduates future more had openings Merrill on we this in graduates by those hiring a and Merrill and pickup and year-over-year, in new more program. capital from generated of lending. continue to our X% lending advisers net a Expense our and strong program. We Private custom up were adviser were our of quarter, X/X growth by the XX% driven force training loans Bank XX%. than The training return both a margin grow welcomed of other X,XXX fee for from experienced investments reflects as through driven

strong assets new which client producing well of putting Both billion you'll on should a to good XX. under work. We as Merrill year-over-year, healthy and also clients continued to existing money reflects that highlight money the see the of continued as momentum digital management Private Slide find $XX growth, mix organic flows Bank

quarter. were example, X/X As bank opened this accounts investment of Merrill digitally an and

Revenue rotation. managing results. Global and income declined produced On see continue the business by down rates. Services offset NII and services overcome $X.X you expense. XX% Slide fees net rates the This by year-over-year were of driven pressure some deposit revenue Treasury banking billion, higher of Banking cash interest X%, interest Global business, XX, of treasury to fees the In higher earnings clients for our from as improved of investment and lower impact provision

What banking Investment fees We leveraged mostly billion, investment maintaining year-over-year the banking An a debt commercial to solid. the quarter year led noted fees, had this slow was from looking losses. capital momentum began in gained and by strong and increase through and fee expense $X.X a markets pipeline quarter, by as summer, #X position. growing some the finance strong, provision in CRE XX% investment looks previously quarter forward September, finished grade. last our driven

technology. year-over-year, Expense continued increased business, in around including X% particularly the investments

Markets impressive earnings on I'll do. of to Switching was normally XX. achieved comments we team return capital $X.X billion capital. continued return excluding on allocated and And Earnings Global deliver on operating streak continued as performance, they leverage Slide strong average focus of to revenue good and the and XX% DVA year-over-year results their XX%. on grew

investment institutional both DVA, improved Trading Revenue, third again, Sales quarter clients from of for the improved last and year year-over-year. XX% ex as nicely banking fees &

over compared currencies prior year Sales the while both by of the equities 'XX. Trading, the third billion. strong, year-over-year revenue FICC X%, XX% on increased $X.X ex Focusing quarter to second in and revenues growing improved & driven remained quarter, trading. to momentum increased FICC DVA XX%

and our expenses investment a by revenue performance the improvement strong had driven trading and business. on Year-over-year were record X% third in up quarter continued in derivatives cash. Equities

charge roughly increase of Finally, in legal $XXX and other lower Visa's on lower All included expense driven million escrow by its Revenue reduced million. business liquidating Other income expense. a to litigation shows of $XXX The in to XX. was and of account. was cost loss related Slide decline a

X%, the affordable housing, been related XX%. credits the and and excluding tax discrete rate items tax renewable and tax energy approximately rate would Our the effective was to for in investments effective quarter have

that, And stop. it that's with open Q&A. where I'll up will we So for

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

I guess I'll Alastair. question, ask the NII

still about feel poised quarter, in talked troughing You the comfortable second grow. to

on So box kind can curve, than little thinking thinking beyond And kind 'XX? forward of trajectory bit Just a any on, XQ? how helpful. in here may more any of about you bigger a maybe what on NII kind would based be growth conversation give bread be the from of the us you rough

sort second back think we position we'd were the find deposits a trough I this floor, felt if see in growth. the we like to NII we beginning begin appearing went be of to And could ago, X quarters we where quarter. in as a saw to

QX. in So QX. we're point, do feel at good And like obviously, this again we position a happened that to in that in

past XX I XXXX think, from when advance quarter moves provide the curve. at X of this awful again not the quarter, And we we do one an point, is market one together year, think point, guidance, Remember, in with with back we lot now. try extra surprised even reason had to the we Part I cuts, months had We'll for an cut. a was it rate another cut. get because this

is growth. What just we're then on driving the underlying focused organic

is flattening where finding a a in slowing back we So to to Wealth X is we're pretty to floor. is that think close normal Banking getting now had and a row. we've out Global that we're deposit place consumer quarters is seasonality. growth, point in and

pickup is in deposits little growth loan good. So in this We past got a The a That's rotation place. quarter. slowing. good

got time which We've cash well. from swabs we've as some got flow repricing asset and the rate fixed benefit over resetting we'll

us set I that rate of position a first of believe in -- where in fast terms going we've importantly, quite acted we again up, in we're we're And XXXX. grow well That's to going we're fourth look, NII the cuts. quarter. couple think, So to with

we good to grow from like in a put ourselves here. feel we So position

just maybe And helpful. That's follow-up Okay. on question. a the deposit

seeing change little see you net the cuts? deposit how of retail any rate in pieces yet but bit. behavior thinking thinking Or new have deposits still commercial I we're wealth Do you of checking the really guys but are guess about in too? are that growth sort shrinking growth, strong How You consumer a those growth that? accounts, on since inflect. side and had you about other to consumer sort

across Jim. consumer weeks, $XXX-odd billion the that look business the will level, bounces you has billion been And If it around, several wealth basically at the management last move $XX flat it on basically, a a pay sense. moves to give about But are now on to day. XX X day around the XX ] X a we're given major to you [ over,

Importantly, the noninterest-bearing has of checking balances in piece with seems slow. for movement Much the consumer generation at seeing clients more going you're back moved accounts that and of rate-sensitive the also to business stable. been new higher be having to large interest

about accounts we So today -- what new future we're of can consumer -- feel that's building deposits And we point. putting the the this good of at franchise, and stability the on keep the are we towards.

$X,XXX time. with investing we're balance and household start move in an $X,XXX, those accounts over $X,XXX $X,XXX, to up that accounts average generate of $X,XXX, the primary are So to

So good it. about we feel

thing basically One of in Jim, that in earnings to level which just is the about shifting consumer, business. from went it, you think we're balances a remember now, $XXX that billion significant the difference we power XXX the as

RBC. to next from We'll take Morgan move Betsy of Stanley. of Cassidy Graseck We'll our question Gerard next

rate you terms of in of growth thread the you've degree last the rate follow feel deposit on of of here think? you has things, impacted shrinkage driven, and one, the that it that Two much you've deposits. businesses? do to do How generated you this the the Is rate questions. up some seen in that environment Just

grown rate is customers $XXX,XXX have that, at guess, when their of X deposit have consumer up, in than with holds I -- What so moved less $XXX,XXX, Betsy, think for the the quarters. the about aggregate the honestly, is us customers at constant margin, since straight the been end that we've driven remember had have then. that deposits day, that pre-pandemic counts,

people And money people is the and summer and in just so paying the down from that based of paying bills movement seasonal like taxes bumping things and now spent the flows on that. haven't around

businesses in commercial customers. lot of consumer there's the including evidence those stability a cut. pricing automatically of given and imbalances wealth just activity that of cash side, balance the on higher that's both And a management side, the feel So we just buildup stability the on and the balances, rate sheets movement market. of of those And on then the levels on the corporate of

and quarters value feel good in higher end across the several we driving really interest is because to the the noninterest-bearing for row lot the balances. rate in a cost we impacts stable So the board low continue of basically a is checking remember, The consumers in grow balances and a balance.

say Right. whole in how dynamic. I to that the this lot know Anything talking about last quarter, about we a reflecting that quarter were And sweeps and pricing on you indicated the slide.

right? this here whole X So we down at mean it's question is, underlying just past basis thing? minimis, de sweep the came like I it X.XX%, You're point. are

through customer a affected question We've last. fully that our if that's base,

us corporate up you quarter. Alastair, be Global loan the Is a helpful you and then some And late driving what's on that function mainly Banking. was that picked just other picking up that? in M&A to give color the the could on Okay. you demand I that the question would the Maybe had legs mentioned understand. really that demand see of to

Yes.

the a course the put NII we've bit and But loan more we So growth obviously pleased to of guidance. little over see that our quarter quarter. see forward it's we've loan previous seen end quarters end quarter. That's up the there. more a prior little you the the X have last balances of growth been of why at loan better the perhaps the And period past year, in modest were look, the growth than modest pretty than

say probably quarter. business not we're in to revolver up too or our that obviously So hadn't pretty a I pleased early but our don't call business, consistent our clients. it. across it late until small yet, to if the down really And that. utilization see really down banking, know banking It's picking for been I'd seeing commercial streak, that's we're come early haven't much come Rates

in So guidance we potentially in place growth at time, haven't for over upside is but our some put this that stage. a that loan

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

portfolio NII play quick a thinking One the the securities how I'm out? of starts floating to on duration current forward maybe as mix duration about and short follow-up just you're that front. the curve split curious, fixed and and

Yes.

So what maturity of said in to hold the us for securities great the continues terms Glenn, off. not of a to from run Obviously, deal portfolio before. change, we

quarter, $X yields. at XX another I this which think it's us reinvest a now billion higher or so quarters row, in allows to

with first basically respect rolling that allow that thought our strategy to is the So just remains continue down. to investment

to to prioritize supporting we're the cash HTM from And sort that over deposits normally expensive loan growth we're liabilities. growth is putting clients. equivalents And or you and over time, runoff short-term Then down for cash over funding our into whatever we're growing, can see time. that had we've of going left paying continue loans

if just bit of about a X-year looked, to we're roll the see portfolio at last couple of balance composition less is quarters. over billion a rate, quarter. so $XX institutional to we've taking So margin, off CDs X- maybe you'd little the you or about earnings, capital, allowed how And remember, $XX fixed billion that to liquidity, it's or rate $XX But of view, changing and billion more and about in it's time. we're the this trying

markets quarter. mentioned it. sheet improvements and can see. continue lion's straight quarter boost remarks, little quarter-on-quarter bit to ongoing that It's it I exactly to share us both Good people single -- obviously, to in is you across color, color. more results of you've meaning, this revenue. an get investing is where that capital markets. a Can remind get maybe the and effort ongoing process tenth appreciate in you been the we clear, of But opening Yes. we can't it's the Wanted balance an every to

look, Well, out and Yes. you it in this results before, again quarter. pointed our we think see I

income relative any look organic different each to X, for and no Page big Markets at or highlights pretty continue the equities the X good other invest segments. X see area fixed that you that of our on regard pick we If investments. in . I particular people business. in growth wouldn't is out in to growth you'll in that

it's them, I with think sure us gaps as we're filling Jimmy making Demar there existing and clients time. about has over for for highlighted,

little businesses. added various with we've sheet, a people respect across to of RWAs. balance the So it's then bit And

the a sales to organic As of support us of businesses. income from it's in And we're the fixed benefits we've I'd elements equities bit liquidity, say and fact of Brian that a got capture franchise leading allows the highlighted, the an us of major allowing that to a diversified benefiting business with each strategy. trading having little growth financing and

keeping our company think and -- been position to grow, we company. you've I when saying a balanced long following started the Glenn, it's the X start X, for to our that business been it set time, years X, we it's could in was overall

trading no the row So see can balance turning the every great of well many Jim quarters a team, job $XXX of the billion market sheet do at it to day managing or in and the the managed, $XXX for in in you billion X risk over, maybe. security losses with many, ours, a they well

And running business and trades so around it they're a measurement, long-term data, requires this of but reports, the it, reported. reports, nonfinancial a investment controls, investment day was financial trade way reports, billions

-- do to have decided long-term that and think a team the to business build and a it's a of a it's because been continues good we a very balance we've job, so it's about talent we job. not of yesterday, and position in keeping do where the rest something the and building good does it but growing good So company, we

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

if share buyback. wondering you outlook talk for about was could the I

quarter, like outlook loan for so. not did sounds growth a capital, it some, but is excess the $X.X this ton, obviously, have for of and billion capital a lot generated You

capital No what's the strategy. change over the we've year is past to Obviously, capital. of become clear the very the got course

to to the more every position were points built we capital we build the III it over that as So if in talking capital for time generation And of over make because Basel basis time XX dividend, today. final put proposed about quarter. together we good sure after originally time you're have a were

at they So time. to see over this more the out. come give rules you a precise That's to waiting allow much us answer to we're final going point as

the remains number one, of priority the clients. to we same. It's the got And waterfall exactly support

loan and time. this dividend the the quarter, to regulatory hurdle be grow clients, the future over with maintain That's and we're to to support X% dividend quarter invest another business. You growth. we sure that Number the that in of the We've going to place added last to saw minimum. make we want the always a in our want great two, priority to the

And three, there. So return shareholder. you, number the then use left we what's we'll it good feel to to

billion. quarter, This of on last $X.X That's quarter. $X.X top that's billion the another

position, to back in to the future support we're company and I good think, the growth shares over a to time. of So continue buy

topic. different just Okay. And then a

the X.X%, You But of of lower the out about this that? is level margin Can asset that by couple it? interest for few years. lot the example? rates of being that how a rate concept And current talked or updates on driven repricing. does guys looking the I impact you have Any then timing with net about fixed of think a reach forward curve normalized

look, to growing thing believing Well, NII, we've to trough. X is QX saying quarters would most the we've the that got be that been back Yes. get now for and important

We've to good position improve to the So we We're deposits. with next We're here. growth quarter. got again to do from a We've poised path. quarter. the to got this loans. in every quarter. to NII It's we're the demonstrated grow the grow grind a on continue And it

about got pricing think sure board. that make to the across We've we

an fourth But remain And is and basis the then us over like will to we going some flow have this with we've You goes over rate asset attractive time. got watch extra what to are right some is on we then rate obviously, over got XX reinvestment will fixed that to points We've a curve time. when surprise highlight repricing focus. might our the the through weeks. time. a an income growth the entire growth will few it interest And back doing, doing output NII be net fuel set quarter, we're what NII keep organic just

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

ratio I'm each but same question seems worse. it's guess getting the quarter, the I to because be asking efficiency

adoption Slide to all slide, of digital XX% of lines and again, reconciling your the adoption which with Slide XX, better. business XX% your shows Slide X is getting all trends X once are in So

then So efficiency we if much ratio expense more up versus versus Slide with at this and last of a look is company. quarter XX% your XX XX% XX% non-comp quarter. And digital a ago year

when what's positive to the leverage get disconnect and So consecutive kind those back of do the days quarters when we we of here? operating number of count

Yes.

Okay.

on to focused The Mike. incentive comp fee coming pressure getting the businesses. operating is back that that's look, we're So to what is leverage, largely from now right related

XX%. So think about Asset up Management sales XX%, XX%, Banking up and up trading Investment

If you in we're look just wealth management talking loan, million that alone. there about $XXX segment at

investment return. well see inflationary think a it's that you good in a doing you environment. good that's strip out, I if So and an And pretty we're

We expect good from fees here.

with we in We continue it's normalize, we're expect deliver the costs operating that that. digital. excellence. the with a position the the as expense rest. think good operational about It's about And to And the comes leverage together as through, to shines then fees. about It's credit managing good again. And the NII

NII grinding point. forward looking and out at this about to that period, So to it's back we're growth getting just

that a a of little think from the it's us And year? headwind you preview a NII. Is admittedly will when it next this been you year through slog sneak next event? shining what inflection? on quarter give Is NII thinking fourth bit do you're help because the for Can a with just

kind look, think, precision Yes. that's operating get going into in we this those a Well, fourth question, got update the the I feel deposits like We we'll all turnaround be of we you, where businesses, that some able of to trajectory. make as to NII and one the sure to see we XXXX leverage things the of and got again, quarter. be to is got we've think, I with

going by depend curve. go play it on that's just and -- rate to through. of we the as We we'll Some year

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

Alastair, coming since that had count talked the had Can waterfall on second slide through NII. on about to was the pieces Obviously, slide benefit just quarter? the go and you on. the BSBY slide deck in you've the you day you wanted other hedge not through this that the you've quarter got talk

Yes.

-- haven't trying I a view it time, we're it we just and that you helpful at back way. get updated think to X-month it were the forward was do if because to look here to

give you Now giving just the guidance. X would figured we the overall months, we're we just

there. You're Vivek, same going to laid the out see parts, component as we

get out feeding up is QX transition say the back laid the speaking, benefit would the the that from pretty also. thought some way We're same to P&L. much BSBY into setting largely going way and I'd we QX So it

time. We're going assets to rate get some fixed over benefit repricing the from

like comes some of that things mortgage on it our mortgage, from Some comes CVL. residential from books, of

reinvestment Some will from some rolling benefit off and come from HTM get swaps. we'll cash and securities flow

in work rate hard sort curve. that's something growing the coming remains of going growing the the forward. the that quarters is And showing underlying It's piece the loans, the organic and on. with forward it's that through we remaining So of growth all deposits, so part numbers the what then happens versus

give like pretty looks we goes together probably what a that sense through we'll you QX, So it good get as as I think in for XXXX.

impact about the rate what negative NII. and those obviously, other million Any pieces? on Markets Global then more there from $XXX X had two Alastair, have So color you the And you components? cuts,

full in quarter I'd or to say out, it's on were September. fourth quarter. flows not know we time the one to we guidance we all QX it two all the extra X weeks provided in the rate It's in turns there one November. said That back were in the weeks, that go through just at quarter. the when cut X October, in cuts cut cuts, as if And way September, one you the

an So if like. you headwind, additional that's

their that to sensitive, So Global they've and Markets loans. continued grow obviously hurts is overall. liability

in bit more a if think waterfall, back you that the hurt us little Global Markets original in that I So of a NII. get rate cuts bit little

elements. So answers two that those probably

take Sharon next Research. We'll of our Leung Wolfe from question

Chubak. am in calling Steven I for

an update bit the us Can side. security know XXX those a loan give you where out last on repricing basis about figures on I on the of on Just quarter, had side. sit securities, today? little just tailwind laid less the you points

on I you probably I'd ballpark in CVL, used mortgages, gets the securities, the probably on the on Yes. the just XXX XXX probably say XXX that Sharon. probably right

a peers? I are thought you action on repricing another know to then securities seeing market doing guys just you repositioning on tailwinds of seems And have the the given to Perfect. of but actions favorably some your similar because quick like ever portfolio. bigger any some some just follow-up responding be there,

sale. if available we any composition treasury in most like NII for of at don't it's stage, company the this time, to sensitivity come of with over feel in the got this we securities that. at at And down look the the of for floating. you Well, swap held our We've portfolio. need point see Remember, those our

liquidity earnings we're we like obviously of capital. So NII, very feel good with good grow start position in a grow we and base to and this at point a

So to at no reposition any this point. plans

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

how much update, NII wait much in I been January, given to want give us the appreciate how changing until that an to curve. changing you Alastair, or is has

So to maybe I'm way. going this ask this,

You've your in talked sensitivity floating specifically rate past about the loans, commercial. of of the in in hedges terms

that about rate out ex you sensitivity think floating in significant way floor as up. curve we as a is should the forward, your way way on some the hedges again, it turns rate up, excluding you loans similar and think or card, BSBY the going down or ex-BSBY not assume was your to on will we repricing about As or on the essentially whatever sensitivity forecasting give for

Yes.

maturing. we've the various time. going we've this it's with from the way time, to about mentioned way. finger that your replace And various company that that quarter, on are down on the got new already last in and securities think talked we those is you same are the to largely call, speaking, same the over positioned put the repricing okay it, we start I and sensitivity fact the the up same benefit loans At So as because on originations

lower remains the 'XX, commercial then pointed a as fourth quarter repriced rates because the quarter of we've And will are there we -- So that see flow into at ones and of the as commercial. get and you'll be we are swaps, in against yields them in third they some cash QX number And those case. particularly QX. got benefit and a

little there. So cushion of a bit

this the we And It's yields. And we're place. over quarter one can back where taking look now it something a reasons repricing XX deposit that's see of period coming Remember, into we of very, long off got it how of to time. that very you sort the period, coming That's while. forward now we're set base. low to with as develop see takes quarter. of a can a of years, NII, our a full value We really let by of just

And X. neutral my deposit behavior U.S. rate a of seen clearly, on long you we've in that's since the have follow-up one question it's best so is, views the not And been

I a So two-part question. guess

X.XX%, think you rate it where of think growth, better that? about if relative natural way may we repricing we the down does have of deposit if it on costs XXXX, do neutral same as America's -- recapture deposit to we was X%, where to the the fall should on as is loan deposit beta? our And same in on way ability up Bank terms is, first The similarly the assume

and is between basis much points. But almost the Fed quarter, the about deposits of third betas difference think the last I years interest-bearing around our Erika, look sort XXX XXX of total discussion and of -- where stand everything. over at we if couple you cost of the the end funds

highest think XXX basis difference you cycle, you looked when basis rate at XXX was that points, last points. if the quarter -- hit the in the funds X Fed 'XX, If in

there's there's has piece aside of fundamental you're leave a difference we what spread pointing impact. betas basis fund a a out, obviously side noninterest-bearing everything take -- against the interest-bearing points So XXX else, the and and bigger in that

you've and around will a industry long this are for but this settle in, right -- time. for So you the been

in in and level, corporate think due businesses, wealth go last to was was deposits the of to management value more extra about years noninterest-bearing if the the funds money XX So to in the the small sustained the and businesses X.XX% this Fed's industry business. commercial rate make the X%, back business able you and X.XX%, relative the when consumer of

feel good positioning. about we So

deposit We the primary is makeup, driven businesses, feel and our the good the the the side small businesses accounts operating consumer about management. the and even which core by wealth household operating and activity,

you So rate -- what more you we're see see confident will I'm and in. the as structure should forward looking that's settles more to value.

that of quarter not I'm key your or blue-chip key be cuts end your sure at path 'XX. the get economists I of a the quarter. in cut another the think and our as whether they to were so terminal cycles And with different The past at all X the is there come to is economists, 'XX starting is the economists, rate didn't to the we'll end where of that rates predict ever level a we and opposed up X% point,

of And we'll take Cassidy from Gerard a follow-up RBC. question

your earlier that apologize you Vice color from I any that come position what one on Alastair, in. your quarter, the Barr are in proposal. Can might that for regarding how Chair from good missing queue. capital you on views you're what comments you your the original in seen you touched gave in Basel earlier presentation give of standpoint from the us where guys have

group how stack about and I capital that? think might you said up of was against of they the there for an increase X% average

only you speech, is about, take granted give the for it that, more specific be repropose comes enough the to outlined entire not we're Chair favorable changes the will that the I'm will Barr but it point. at When than proposal. up original a reproposal Yes. we out, you Gerard, sure by picture, including this whole detail, what have was could told not

And something So be give a benefit we from estimate, you a little once better favorable it. able see us. to to might but more it's therefore, detail, we we'll that's

an Brian, comes more expected, could in as returning your maybe to than you capital as And would you that activity it that see. of think capital better opportunity I do to step more up take shareholders? return

old excess In the day, the end the on based of the capital we estimates have one. of

end day, of generates et are we the Gerard, the its franchise sending would fact deposits, the the using its of cetera. at because remember the the capital yes, So a to activity But that back loans, without of that ton and margin. shareholders at capital earnings, it grows

of return, proposal, we the of continue no return we'll favorable we're So and And capital with with fair continue if sitting the be it original if available, more us better, rules amount set will over a disciplined new to set than question. excess a are more the to and set of is capital current the that rules. of up more would

branch Great. What to numbers, what And a are digital makes great you've customers. because the -- on of great this excited you your seeing got got is consumer that guys that these makes you the you read system Can combination really a go, you and branches? really way banking us progressing? in don't is out on markets big have have presence. And which follow-up, then your country just an in guys just been update as throughout a you that how obviously the you give building you

think all that of us and -- FDIC you data out. was at you so these nowhere because markets, Denver in -- market, first the I years, we which at last at we into markets, seventh kind and see and everything, the of the look continued years celebrated the look as at And building kind if this from in to we look first if the moving markets keep the of stimulus and progress just looking after. we couple you is XX it's from by opening, and eighth, among of up but the first X the tenth I went chopped

a cetera, times in does for et are individuals even even for even utilize Denver tech full or And middle that if Columbus multi in no need that in mean touch, or it's by when across Indianapolis What high all little branch is, little we or high hard to believe them we and small there customers, they to And market. what bit a a businesses and get is branch. experience. you have the the or Minneapolis

that. done we've So

the We're out about think we after had extreme comfortable feel to going this covered. discipline. we level markets a build have it, to as we Now we market

instead there. Merrill And a a us of build network already place, to in that in We now. build presence one I have a we're business. we so think putting Columbus, XX, And have the out XX like to every branches place major trying allows where

it. This We already us there. presence had allows it to underneath banking commercial build

term in capacity so why digital per past than now it is those deposits the that And from. you're the and and the that's seeing can of and branches customer $XXX we get density more because which and for prior a doing different see base much our we push branch, better others lack the

the So doing team job. is a good

We to expect have about types which top day, though and effective we're start opposed of in businesses a the all digital to only you XXs, so different that's of we're why as the sales down we're like efficient walk end American in it's go of relationship, in the still that of checking in sales people products, But the markets the the to at -- means the country consumer, lot cover to even across a there. population trying XX% and all And the truth is coverage branch matter a path. and the way. in we XXs get across an the those

today's Brian conclude Q&A. comments. does the call closing would this like to to Moynihan for And I return

$X.X tax, earnings share. of of in delivering joining for all thank us. you after We the well billion operated $X.XX a I quarter,

quality second a told to we couple the past things we by that. good in continue the would see economy. an As health good It's told consistent quarter. NII consumers spending the that asset a behavior with in hit in -- and point We done of overall you, among solid inflection you

you drive continue the the future. see in to operating to we that We ability told leverage

drive Now leverage. the pick we efficiency ratio operating can will and as it and see to up, starts NII that

continue you did this We return of capital $X.X to billion to across board as and organically quarter. the we grow the continued

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

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

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