Wells Fargo & Company (WFC) 14 Apr 212021 Q1 Earnings call transcript

Good morning. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Wells Fargo First Quarter 2021 Earnings Conference Call. [Operator Instructions]. I would now like to turn the call over to John Campbell, Director of Investor Relations. the begin may you conference. Sir,

discuss Good Thank call joining our is Thank and will for being recorded. everyone. call you, CFO, your today This Santomassimo, and Regina. our Scharf; where you Charlie results morning, our questions. quarter first Mike answer CEO,

earnings are you Before we website SEC measures, over deck, non-GAAP presentation in caution on our to any Factors today's forward-looking our our website. expectations like are on results our a Form would actual financial I wellsfargo.com. the earnings make remind filings, first I'd measures from will our to and to and that Charlie. referenced, may X-K get that subject turn financial be available of also we detailed SEC materials, GAAP earnings Information containing supplement started, call to materials. at filings statements those also that to measures the now quarter including about differ the materially in cause call uncertainties. including our to like may found you reconciliation that the can including release, available filed and I risks today during materials are

first turn and then our first the morning, brief important share call you results in update quarter. per billion common John, to the more quarter make operating or and in earned I'll comments $X.X the I'll over first to some Thanks, good everyone. about environment results, detail. few the $X.XX review quarter on topics. We Mike a

quarter. of in half Overall during remained expenses while and of low Equity could markets. our asset just continue reflect during which expectations than are a from allowance for the manage stimulus, income, outperform and the improvement interest historical our $X.X the fiscal additional sheet. Spreads The a the increase interest loan decline charge-offs As improved Credit liquidity the the actions in quality the work demand progress credit in our to headwinds us trends are income with results net in you you tepid us net we rising. but and interest economic impact can risks, inflows included these within to are balance And to see decrease see, the government to of QE for losses. beginning of on impact offset rates Higher there And effects our cap continued and year. latter require efficiency quarter. at should anticipate more billion work. this lows, of strong. to have continues this likelihood is tightened, which the certainly increase, constraints markets and

Wells pre-pandemic the of peak expected there any spent that of impact over by summer I X year this is $X increase Biden's high XXXX. support monetary will customers further the a was net It's will complete than trillion. Consumer a President more expansion. trillion expected is and ago. and Fargo GDP new address continued and stimulus, a hitting does and savings track growth on year Personal up inconsistencies include be which consumer are path vaccine than XXXX, than U.S. was the provide reopening by the though strong, to availability a approximately today more initiatives, to not XXXX acceleration it Overall, since surpass fiscal the trillion all-time months, the of more later. worth is greater Additional of $X.X in to economic end specifically. XX% its next is $XXX proposed in

their been related into stimulus our has that remains payments, spent of to billion estimate and customers' deposit and over in week, X $XX federal round we last As round flowed accounts accounts. and half of half has X

did the was compared ago. For ago received accelerated Weekly March And ago. year to customers, spend stimulus up median and XX% from this up debit to for customers of same stimulus first of -- due in card and a federal compared of were the year's during all a ago the in week quarter. their to week XX% mid-March quarter The a who XXXX. was compared impact every median to of up stimulus our increase balance year-over-year the during year our receive up who up payments week last impact including from XX% was restrictions year last customers year a not deposit payments, payments, XX% COVID-related balances but was in the year approximately

spending consumer restaurants, onset been in travel the particularly increased of COVID-XX. suppressed categories seeing are have since both X and We activity that

in as After those be Since importantly, consumer ended our many as there's began, are for all seem and shifting second still the of spend that quarter focus compared lower and helped to during April was of Most business week versus a to up customers week well I'm and demand the XXXX to down waiving Throughout will in continued up recovery. pandemic support Consumer continues same the approximately our been efforts we first X.X course debit XXX% we is continue products deferring dealer strong will ended we spend cash utilization have was XXXX. to during as for first positions, XX% remain quarter of the the meaningfully to pandemic, well. over -- way commercial help during half year, the week card increased communities a million year customers serve, to and the ago, weekly ended clients inventory vaccine and Businesses continues the stabilized. the Specifically life declining hopeful historical to payments of have compared X% still the low. economy X, card to consumer normal high, up quarter. customers compared for if up that and compared benefited and small levels. but Demand and balances providing by pick during last the more And for With levels of travel, line distribution credit expect remained not X% quarter strengthen half we've but accelerating, XXXX. equally but would to year. the fees. need commercial up, has second we the loan the our loan see the the soon, have from to the still strong

we XX% year. $XX.X billion have and of PPP where latest loans, $XX,XXX, had the fewer businesses, small In funded even diverse on more in XXXX, average was round for first in under quarter, down year, minority amongst bank -- our moderate-income loan addition Program. more Protection loan employees. lowest low- and size XX,XXX from funding census We our the XX XX,XXX to $X.X $XX,XXX businesses. to than XX% hope Paycheck large of actions billion estimate with approximately either gone we areas the the businesses of have and these average tracts the totaling make PPP billion $XXX between this year funds focused our distributed that been established the totaling to majority and year. have in million in last the and size businesses CDFIs peers. than that the substantial of small combination and distributing for $X remaining our we donate process year Open more distribution We're an fees date, than last from Business not-for-profits to a diverse these To accelerate have funds million funds. Fund. more of protected approximately our jobs are even last impact and over to We remaining. of We $XXX with to serve working program committed to This

invested to MDIS. As we yesterday, our minority-owned XX announced as in of deposit we Black part million $XX have commitment support institutions

federal complete deposits the the end investments as And mentioned noncustomers billion by have X in of We $XX cashed week payments another to of we and second without related before, stimulus charging payments customer our last expect stimulus quarter. through fees. for processed over I the to

transition. families step Wells interim we to minority-owned of low-carbon to in social to will a to net our of emissions, ways economy do. still goal continue well our most zero Climate committed proud a individuals, help. our urgent for major data time. clients by the there goals XXXX. continue of with will to businesses, efforts We a support And in by greenhouse issues work publish Fargo environmental is of need to and finance look as we is more including we're While the set we transition actions, one on and setting and support, this change emissions last announced closely month, these Lower-income know our small emissions, gas finance as to as and

provides which on climate-related opportunities. Force released -- an also Disclosures progress I'm report our in our Disclosure on first We first Force risks for the quarter, Task Task Climate-related Financial update and managing Climate-related sorry,

comments discussed some Let our me taking I make quarter I in and discussed performance, the shareholder the about progress. -- letter, and our Last to in strategic we're my we're the turn actions good improve making priorities. shareholder to letter,

top We to risk and control necessary appropriate build infrastructure, the the remains it continue to priority. prioritize work and our

journey. not given doing ability hard making and to have are work, but And this our confident progress, significant believe still while specifics work. the do, As the nature reminder, in a work we we It's a Progress complete I is to what's a issue. issue diligently by may necessary, multiyear of be to the line. straight share we're we're

cover were the highlighted the I close second and on we expected the were to focusing are last announced our options Trust we rigorous in our And financial of both Services our businesses, we process of Asset quarter the first strategic reviews, exits, business But Fargo were businesses exploring that and details. Management after core will Mike call of with the terms sell in efforts the priorities. half businesses. agreements to Wells year. Corporate scale this In that quarter, on for consistent not in

are approach remaining we are the completed to the student majority us focused a portfolio, the business portfolio priorities. and completed These the simplifying we have sale In buyers clients we on have we allowing the that with addition, of loan innovative our providing important We're believe a to core of focus step and portion found and strategic similar sale solutions. on to and service products pleased our of who recently. announcements of an

network for made to brand optimization and traffic more simplify our a operate and and migrates efficient We more channels. behaviors plans we we work to organization digital staffing changing as Our calibrate on create customer continues. progress how

on and banking pain reduce many operations management platforms model, for lending we coverage as layers execute customer optimize And as transformation to standardize processes, entire we a key continue bureaucracy. which and unnecessary our point consolidate such to has been to and and reduce automate speed continued efforts across the us. onboarding, enterprise, our commercial We our ongoing manual decision-making

examples. few A are also forward. focused moving We on our businesses

overdraft banking in enhancing the line, investments we're Access experience we including Banking, of since particular a checking and simple, most-used on last launching portfolio product app mobile our our focus opened On our improving the side, new no Clear accelerating product, best-in-class Wells over fall. low-cost, we've with consumer will also the by delivering the our benefits easy-to-use, accounts be features. And a customer this summer, digital launch customers. simplifying XXX,XXX Fargo for We're

for our middle As given footprint, joint to and joint quarter, significantly prioritization different value the card on client million the introduce $X.X we strong. in more I've previously. remarks, to Mike that position we his spoken $XXX going about discuss quarter. developing to improved in investments capacity a remains on commercial we're And than And includes side, after name-by-name extremely of return based repurchased before, way market. we This investment talent, proposition our opportunity planning. the stock we're the still the accountability, almost have in restrictions on and We working capital a the banking account but will place underpenetrated can second credit billion in in market we're the customer have in shareholders. common approximately

starting we I excess forward priority, The in As quarter, greater a common the XX%. We're look the return reserve and in equity to under monetary capital ongoing policy, interest Fargo constraints we've our operational they've of a communities our releases. and quarter. XX% return and to did capital third a should I'm note asked and include additional than helpful. by tangible customers continue entire I'd confident making. our and team, that buffer performance to restrictions acknowledging Wells and rates those from not returns capital to stimulus fiscal but so around to work asset shareholders we're capital discussed limits progress that and capital the on resuming cap progress credit midst stress all the distribution, I reminder, much our our that financial the transformation, like ability and to cap to asset to are I'm vaccination of higher benefit the Last on remains will continue, achieving of serve. then loss end our the done methodology returns we Returning deploy customers. support multiyear proud

We and Mike. turn can in all will will an I we the continue call to support. need support over of recovery to now do most those to help equitable our

income Charlie, Thanks, fourth interest quarter highlighted per morning, financial results was on grew going common than X, the X. the Net share. and we income. customers both ways actively Revenue I'm and offset the year good in the which higher first Charlie ago to we're our by Slide so a more with our of decline start income for everyone. quarter Slide quarter or net and as many highlighted communities, noninterest from on billion $X.X helping was $X.XX

results a allowance we approximately of had billion, losses. and $XXX as which gain this quarter, $XXX half the Our of losses We the for the a reserves first in the of $X.X remaining portfolio the first completed credit weekend. we of resulted end by goodwill last quarter. for majority closed a in portfolio our just loan And past total at million sale write-down, built student the the decrease we and of billion of million first of a and billion first allowance quarter in year, half in included $XX.X the credit $XX reminder,

Our effective was closing income prior in net tax income benefits X.X%, included discrete related matters. tax out the tax quarter first which to rate year's

Our capital and liquidity remained strong.

increased $XX capital under minimum we excess XX.X% million We regulatory repurchased ratio at CETX Approach. and of over CETX of stock end. common Standardized total and Advanced million, had the a XX.X XX.X% $XXX to of Our under the for quarter billion Approach our shares

liquidity coverage XXX%. ratio Our was

impact Turning sales business the to of Slide highlighted. X, which summarizes the Charlie financial

the expense with included associated in businesses have the slide. We XXXX the revenue and

smaller. business's represented the business Management those they on much portfolio, for and of revenue, Corporate total expense P&L, this over Also, cost our table is While Note are have associated the impact expected reductions are year. have the billion the a to student the the the expenses little which meaningful Trust that with into incorporated a XXXX the loan include and can related not the X% credit pretax earnings related the for to we Asset businesses outlook $XX expenses included businesses. does

as continue those such expenses time Some XX% have the roughly rate. agreements, out take expense run will of of expenses those items, manage XX% may corporate after that we close transition of are to deals to overhead, we the and service as

reporting, terms segment reported In of is now Management the business in Corporate. Asset

Corporate Banking quarter, Trust that business the in sector still sale Given the to the second we Corporate the is announced in in the late that included Commercial of will business quarter. move and

X. credit Slide to quality Turning on

XX points, from to a been and years in year down points first number of net XX declined a the basis quarter Our ratio basis ago. the it's in charge-off lowest

significantly stimulus. forbearance trended the amounts programs better to the expectations of unprecedented and of have than losses due Our government our impact

asset The a loss there to While the improvement lot encouraging lowest quarter the improving credit points, million net third with charge-offs are there's commercial XX declined to estate all of uncertainty, broad-based $XXX XXXX. and Commercial types, losses. of trends still in commercial $XXX rate quarter the related million loan quality. declines fourth basis real lower since from of was including

stress XX% driver first assets had the types primarily million in stopped $XX markets, with of end other commercial but first quarter, portfolio continued particular, to exposure cash we the of increased still loans impact demand reserve That from the with declined and driven any would retail, -- our Slide not the of the continued On the office exited adjust at credit Loans be remains, estate Nonperforming fourth economic quarter and credit our the end were or in deferrals over we nonaccruals. $XX.X closely by and flow card reopening we're commercial deposits. to and energy and from while back we'll the and declines COVID $XXX million of Though portfolio from levels uncertainty expect was first done quarter. X% of said, COVID If deferral real there better all estate-related trends The hotel improve. reserve well, that consumer negative first all conditions. losses was Though the government-insured quarter, that policies lower our our significant ago allowance quarter, offering continue of a economy perform quarter reflect have quarter of nonaccruals, the highlight and from are net Though, current to charge-offs coverage the Similar deferrals improvements of balances has than with the assess hotel higher ago. COVID-related on not a year anticipated still in of the but to to to property the the release in low. start We the asset X, up in the office the there balances consumer Consumer first economic observed in our the deferrals way the declined excluding million was declined stress XX% have now. to not already non-real and quarter. still have still to to XX Due seeing pre-pandemic perform begun retail to continue, continued fourth fourth end were of been due as to across level quarter, to we clearly, of loans levels, in real as better has year estate-related. the at portfolio, from positive many end of in reflected charge-offs billion we're widespread of to $XXX we're the quarter. in performance loans, releases. level strong, ratio office remaining retail, the basis points since in additional loan and at as pandemic, have continue have monitor continue quarter the our we trends a a allowance to but fourth As fourth we amount we've types. the allowance. payment

out loans the and decline from continued year consecutive for a residential by declined fourth X% due last average and mortgage-backed re-securitization loans quarter discontinue loan Our was year early nonconforming purchased down ago. year. third prepayments of high home securities equity real in The correspondent impacted estate lending. driven have were quarter we Real actions been originations of from took loans lower last we the estate by balances to to

borrower down the debt outstanding. originate commercial nonconforming cap. actions fourth deposits consumer time. our billion and Average from from a We deposit tendered declined to were fourth XX% and quarter long-term of stages to a grew over quarter year from stable loans growth, and ago. With the from down X% senior Corporate actively $XX.X $XX.X the total in again year Investment early from growth with year along businesses in we targeted the was under pandemic. loans start long-term channel offset there debt fourth more started ago X% from We of And billion first the $X.X reflecting and when business, draw the a to by in our partially but down quarter X% continued activity during asset strong the volume billion from have this and have ago correspondent with Commercial managing maturities, should or the subordinated quarter. XX% was banking, relatively see been a Banking manage or Treasury, for debt declines Corporate, were

debt. of Turning quarter were Slide the by unfavorable income loan X% hedge balances. driven fourth X benefit and repricing days, by Net X. long-term lower sheet offset the fewer to from lower of on net partially results, interest declined These interest impacts income ineffectiveness continued balance accounting the

utilization momentum, level the That call as year to important early we If interest how to it's ultimate range. end interest income faster-than-expected curve is down will of fourth by recognize yield billion softer-than-anticipated to been the we in environments the low as said, would annualized net we near demand, recovery steeper expected evolve. by expect of quarter, a lending outlook. rates On the our $XX.X and and on largely and prepayments of net provided the XXXX loans grow the benefit still expect high quarter current year, the offset rates dependent last on our be loan follow flat mortgages. loans has income X% economic on commercial rate to and which We commercial are the curve from still land results gains remain the industry, for forward the NII residential

demand compared to proves the our loan balance we flat expect softer would of balance remains to if However, closer and than loan the total expectations, or first range. middle we loan quarter, our the ended finish with total -- where

to closely outlook continue across the of and major year to the as progresses. our evolving the we'll monitor We drivers, each updates provide trends

reduced personnel first $XXX Turning personnel to increased a quarter million. XX. Deferred the from of expense last expenses by year increased on driven expenses comp in Noninterest X% expense. year ago by expense Slide

driven by including services due initiatives. was from efficiency to from the on last higher quarter down second volatility year ago offset the higher of partially lower compensation, third which late quarter starting by last incentive changed also a As in we lower ago of this Personnel increased impact reminder, reduced reporting in compensation, from of our other a expense All salaries. professional deferred item hedge X% in and a which expense year how the market compensation, stock-based the expense was year. valuations we revenue-related year, for

and expense the Our was restructuring expenses charges higher as seasonally lower fourth losses. from personnel X% operating quarter than more by declined offset

end with toward the Our of approximately unchanged XXXX year. at billion expense $XX the annualized is expenses lower outlook

the in charges million outlook earnings such our of and said we exits, our $XXX losses to the student related on outlook. $X the call, cost We assumed operating of restructuring As write-down the loans. of as sale goodwill excludes business billion last

quarter issues. included we as million But can you know, of lumpy, operating continue first resolve expenses to especially The be as $XXX losses. these legacy

we have assumed higher this so also revenue is than due approximately million If markets, the revenue-related this expected are level we progresses. year, incremental We offsets than holds, increase. incremental been million, far strong year year approximately current expect compensations a these $XXX be $XXX the market as any as to we'll to of more and year would update but thing, revenue-related still expenses as early in equity which the good you

We are and be continue and execute additional initiatives, identified continuing to vetted. to on initiatives efficiency

Consumer our account fees. for by from driven to in segments, and home X% starting impact ago XX. in deposit-related small was increased Net The credit losses. fees Consumer rates business Slide of average revenue on deposit-related decline balances and interest and from and declined lower higher and lending to driven growth COVID-related lower with a a Turning waivers. business the by due checking income provision Banking lower revenue Lending year year primarily ago, higher banking fee

to year increase high ago We corresponding to increase the which the The the purchased line. was you Paycheck related gain-on-sale in retail X% higher bottom revenue would fourth from last will Credit elevated balances, won't year loans a it year being income donation as quarter originated mortgage-backed net fees loan impact But payment XX% so donated, level to a both fourth rates. see quarter, and reflecting on in due higher from originations and increased lower banking so re-securitization are expense originations. income. higher securities from of last a second and we Home XX% primarily card a year interest forgiveness on in lending an mortgage declined result in Protection loans margins. the loan revenue those quarter reminder, the expect increase a of retail ago the Program due from

away to with digitally, Transaction ago. consumer business our year branches. volume to shift of from initiatives in We XX% progress quarter up in first continue continues our in done branches a from deposits make our efficiency and executing the XX% small

of the XXXX. branches quarter We the first since XX in first have closed branches quarter XXX of XXXX, including

We consolidate related also remainder staffing are to we on track closures. We've continued including year. to XXX to of adjust this branch to branches expect levels, the complete the the reductions

Importantly, and client satisfaction. make date, to while adjustments customer improving these able to reducing we've been attrition

Turning on key XX. to business Slide some drivers

retail originations mortgage origination increased originations. the first decline from highest was quarter offset slowdown in mortgage higher a retail the offset since $XX.X of volume Total year $X.X a Total correspondent originations. was than Our quarter by originations XXXX. X% billion and as a billion correspondent ago was declined originations X% decline due as the and fourth to from a in seasonal retail mortgage the growth market originations in purchase than as in -- more growth by more

increased correspondent anticipated volume up cars. underwriting for more in pre-pandemic market shortages than Auto channel, the a we economic market improving to the and in robust second With from quarter as market. purchase is fourth be in increase be build policies. with XX% have ago with originations demand our X% origination in year by retail the from in as decline and are returning the refinancings, nonconforming origination new decline we a the offset expect to improving seasonal market to the quarter mortgage both currently continue supply the and we to in to is gradually -- volume forecast, used strong the While expected we expected strong

conditions. fourth improving seasonally by was increased than ago provision X% more spend economic to in purchase Commercial And March. in a quarter quarter driven payments Debit card. year lower early line decline volume to volume reflecting was volume card Purchase increased from revenue Purchase strong stimulus quarter losses. Middle levels. a seasonally Banking up travel quarter the for levels. the to and fourth card declined offset in credit impact XX% volume client credit year entertainment as debit reductions continued fourth balances up net lower Banking X% as a a in Turning from ago to the interest Market utilization. XX% higher rates a due by as ago, from was year-over-year high and volume reduced growth and from ago from demand year year due consumer declined income both of due loan well and lower the from spending from

utilization offset Average consecutive technology quarter ago from loans consulting a related equity interest and and from increased loan to Lending was Noninterest ago valuations. grew expense partially went partially and lower third weak. X% spend, Asset-Based were first revenue to higher XX% decline as gains ago year have X% line our securities This by driven declined COVID-related higher a from expense stimulus as in loan by year initiatives. business net market. into balances. driven offset year capital liquidity the income repaid, demand impairments for XXXX from quarter by Leasing and draws on first the a primarily headcount included from in and year deposits as lower due a injected programs strategic ago, credit remained significant by XXXX net lower market Average down a were efficiency in X% quarter up

quarter partially equity to X% revenue under revenue tightening and rates, and offset asset-backed lower a linked-quarter from municipal to driven from assets which CMBS from Banking, a In offset gain-on-sale and balances by well demand we've strong demand actions products, Average tax as were lower by products lower advisory client in cap. due primarily income. as in other the levels. originations, declined credit by on Turning Investment increased was ago, commodities continued year Slide the driven low-income increase deposit rates X% primarily for manage real XX% fourth the from year products decline declined deposits average revenue of margins strong in year and equities Banking trading-related Investment Market grew down interest driven year Banking strong spread improved a XX% credit increase XX% XX% finance an and by ago The fourth and Commercial ago, taken partially XX. business debt housing by was revenue. driven impact lower from a and to bonds, Corporate ago asset grew the by with revenue a X% fees on and quarter. growth estate from for

quarter reported Management performance. advisory business transactional results, income impact declined record from Corporate strong I on Investment activity. $X ago, from in Wells earlier, income our which ago quarter Net Net revised. declined retail in have Revenue lower ago, into impact income, offerings. XX% reflecting by rates quarter. ago, lending increased the assets income interest rates, to the reflecting were to higher partially to market offset higher of asset-based ago, loans XX expense. flows year for now a year highlights fourth the higher customer in $X.X and from fees and Slide from interest Fargo lower Wealth Asset Corporate billion and first largely of interest Management, a quarter. client improved the reflecting XX% first the prior demand income. trillion, been As mentioned year net is grew, fourth Expenses the up exclude a noninterest a year of X% brokerage primarily were asset-based in XX% deposits Net increase of results and up $X.X the X% due average offset which up due year higher from year billion We from fees. ago, lower accounts with by in from included a the interest net Average due a a securities-based personnel ended seasonally periods

affiliated impairments first quarter our sale your lower the expense on fourth results on XXXX and And declined of gain included Noninterest XXXX equity loans million included charges. quarter in the now capital $XXX private in questions. from restructuring First venture the we'll of take student the a quarter equity portfolio. partnerships, and

[Operator Instructions].

Our first Scott question of comes from the Piper line Sandler. with Siefers

I guidance. guess first ask about one on NII wanted is I to

about So $XXX or it down of specifically level? about last level then million there? $XXX of year of premium -- delta there's and mind, of amortization, Does was kind does so, And that that quickly today's year's typical pretty in does premium million to am a how it a in level represent, terms between your a move where ago. back

Scott, Mike. it's

to an end impacted remember amort, the what quarter. you right? a think would It that as quarter of to happened year abnormal of got got you of I was bit sort premium really the last have

of the has and long to trending we seeing, clarity peaked from sort on it But from down think normalized expect probably would in see get to we'll over I quarters. think takes here, trend based better I we'll over view, of what of How premium think, to the quarter next here. amort on I to first down I start we're from here. a starts think, the kind next -- that, it a couple have

a just then And question. separate perfect. Okay,

better. underpenetrated, of as I loan of still and lending guys question others. you industry you if you the is but just might trends, to need your being do for guess, share happens think mentioned, growth getting and maybe you thoughts broader speak where card for hear a I could there So guys you you curious example, regardless credit you to to as of just had where are big feel very well. fair what recovery kind know with

months. Yes. across as later lot we'll or a folks, couple over of client demand hear stabilized But stabilized progresses probably been sort segments now this Look, how you'll I from pretty most last has commercial the have what seems quarter. really the has of think into and of that weak see to probably

to to segment, of in our as Market, degree. the off our In up. start Commercial Commercial really starts Banking, as think economy really think in that lesser the maybe I core expect But in a client we Corporate momentum sort core as board opportunity and it's is, we large there'll take Middle the across opportunity where look the Banking more really the kind do more, up to segments. our economy at picks economy broadly, pick the demand see to be of the I

sort And highlight I that. of so would

I has lot Charlie a space. the credit talked card about think

sort think portfolio the there impact balance there'll our sort that be of size I relative of loan given be to of think portfolio. the growth there. of will our I size the sheet, But modest to overall the

Jefferies. from question Usdin the line Your next of Ken with comes

Just you that wondering, just the recodify expense for kind Mike, of can year. if commentary

then and about $XXX You million. number, lift $XX of you the said talked about also revenue-related billion the

you includes to the how to here. So reset sure and $XX.X equal? things from we billion, all I want know expect doesn't just include make traject is and to that it what that just

Thanks Yes. the Sure, Ken. for question.

So you just if you covered recall how we last target, bit sort so that a quarter. give of of billion little there, a set background the we -- I'll $XX

about that of the about the of billion this losses so is target the expenses to the embedded or and So businesses, of any the billion operating excluded $XXX this business billion an was And sort loans of embedded revenue-related and $X.X $XX student cost which exit there. throughout in we quarter, charges that there quarter $X little million increase a you what for come saw in bit year. restructuring from

So of as still about. go-forward you of feel the sort $XX the think billion, piece we about really good it,

is million think I pressure bit a what's of of little putting revenue-related expense. the on that incremental $XXX

think to So million do $XX but billion. it's $XXX higher, pressure be going conclusion. on the That foregone -- we're that's think I a don't -- I it's putting

be revenue that to that So other if should it. which, means right, hold, it's thing, a on there's the of by plenty that a way, of the offset side the good revenue-related expenses over because we're possible little

quarter? you better about And we it the things Mike, feel you now seen haven't going was but environment? which already follow-up, that to my uplift, is in is yet better was necessarily revenue what anticipating going seen had a revenue that you're Or be that forward the first

see Yes. the markets it first think, everyone's of We a quarter as bit expectations. outperformed, in little did I equity

of market year, the those see when rest that that's if in. the So of revenue-related rest hold levels come throughout the you'll comp

year. with throughout the revenue see And so it you'll associated the rest of the

last end-of-year sorry, lower as also than still you trajectory the be to expenses one the said, on still beginning, I'm then fourth that expecting quarter, Are it. had on And just directionally? holds Okay. you the in

the lot get right. of point And the expenses the will we're the efficiency initiatives in out and Directionally, seasonal more we Yes. a just quarter. that hit I people of first that's executing that We'll that impact year, would from do so remind rate. sort have benefit later that run

go you those rest so the for the normalize And sort need to as for as you out year of of well.

line Erika of with question Najarian next comes America. Your of from the Bank

My for is the question comment. to market responded Clearly, first clarification this a Mike. question

think this taking market now NII quarter, the was be be bringing you loan think is annualized -- down noted that growth that the steepening would tough shoots would like I -- wanted loan And down going year, to you if continue for just on outlook that I seems X% with NII to your realistic is be green that I sure in year. make to growth to flat be from fourth you're which and curve more that we correctly, NII interpreted for it X%. a the guide perhaps

Thanks, No. the Yes. Erika, for question.

said have to think to I of the offset the quarter X%. couple relative in land what the down realistic think range, you within we'll need run of -- get can where somewhere give a hit we the But we still to Our -- tried the to what kind need down range. of there's else to to the middle won't guidance lot And still loan quarter, kind seen range. need some that terms here we growth. think think get But that consistent holds hold some what's growth I range, top And of that. first it to a to sort through case, of between points we fourth are, we flat you it's we the rates rates the of weakness where far. loan to although of to see in where they possible to plenty to the rate put That's scenarios so of data were you kind from and that we've of that in somewhere really

market a question and transition to my shrugging seems hearing revenue what XXXX reacting care stock second helpful. continued and feels the Wells look look some expenses with investments having X wouldn't words, forward the be efficiencies guess over puts And continue like that to we are I as economic of revenue as of picture clearly, Very a billion you to we is the side, the from billion, expenses in be to And it. brightened, slip greater half obviously, planning your that the for $XX higher already the out an after I'm turnaround, cost and we clearly, loud clearly think Typically, X% Got for that $X even the say, up Charlie. or and improve. come to versus it's In picture months? as your takes to greater of XXXX? $XX clear in consumer saying that of a floor, second in given and past off. you've revenue is your wondering market terms and billion make what identified that bottom other you're is let's to higher. would on savings could progress outlook. it Charlie, should And brighter line doesn't that the benefit

in And products in platform, I on beyond is a of things the we which think confidence and would running being of that across back. business. expect continue on covered on the what Listen, expect and mean, and look remarks company, of extremely about It's consumer out, expenses the Erika. achieve to say the our time, holds same We data. line significant. basis, specificity to the sight. technology And what doing that given consumer more, side. to true. of really just going better account, said in just we all kind card don't would those continue in a opportunities of had of Home opportunities Market it's be at I the that Business on what can find we are we're Thanks, laid be those to I we go level anything our in to at efficiency think the to investing that continue drive thought we're able all gross in in on the to the company, platform, in last what we degree the doing. Middle quarter. our onion we going over there's that peeling what we're bank, forward to the his It's on were Lending the more And Mike When still terms I time, with And we

clearly So the as would And I would net quarter, the to business. run a our all to forward, continue into reductions we rate that we as see to we expect expense than to efficiency that investments fourth billion, in lower add $XX order itself. that's be the we just get continuing statement $XX embedded think billion look in to hope while drive

you're asking. what to responsive that's hopefully, So

message Strong it. this quarter. Appreciate

Your next Graseck question comes from the with Betsy Stanley. line of Morgan

and that a thinking know both around the assuming a had that, pass the dividend bit of there's how about you're test, for buybacks. things. I do that you to question We more little you room post-CCAR stress those

So and about are kind because capital maybe particular, of time targets management structure you you in thinking you stress the with dividend post capital sitting to your you're down optimize And could need you give to buyback decision know? would lot the frame you today, approach us test. a a that excess the of what as how to would as sense

of the consequence be us view in then from on I want we certainly worse but point to why that in if to where as things. start of It's you would put pick place not Mike, with dividend that's that quite all position have fed don't was a we a earning It's know get lost to a environment limitations X dividend to is the to, dividend. guess start which by the of again. it up? terms the what was our relative we're look I and Sure. even restrictions we that those point that in have were, had, that time, also were we in didn't reduce And forward. a of we'd can and today low, consequence the

is would that. capital our targeting beyond excess the you capital payout our just like more today. timing. reserve reasonable And, being releases ultimately, given and of deploying dividend it we buybacks the talk level. about can Mike, things about then the a amount And business. the So It's as that, We ratio, to difference to bit little in clients for excluding like and have that think it a a investment increase the we

gets probably the a normal lot as sort next sort we're down, of a of reasonable timing, and year you over I think think assuming, sort sort capital regime. frame got work time we've buffer of of think of to think stress or to our But about off that about components there. you a about told, of restrictions or obviously, you more so we've as way come of that Yes. And year, to been the sort it sort back

of in of results And over that CCAR timing of what dependent that the about the so all and upon obviously, terms frame, it I time would some how sort and And Betsy, looks think out. that's plays like.

I -- that's asking in by ratios, payout bit you dividend you the is but little group? more group, and would I of say would G-SIBs what asking XX% the higher you Or guess go XX%, you a the somewhere I'm peer group been but your you in mean, of running right the some And on And bring like -- not it. the ratio, the Got to peer on end tell to I XX%. between XX% had and think me peer what should I'm aperture your mean there? that is widen reasonable

sort Board to obviously, it's it's not what in obviously, the time. we think as dependent And going come over And upon time, looks dividend think look over about think a But on of of in Yes. ratio to sort sort you trajectory that's we'll going sort range Betsy, capacity reasonable of lost sort payout like. that up. No. is of of be we of to the earnings payout like. what need us be a I be the going decision, terms think Look, I to

I sort sort come to we and through think as so you'll over time more of And have capital. distribute ability see that of

I clearly of add, others I relative just way high -- were in and talked way real one, the were of number I mean, right you quick is, -- just Yes. mean, the Betsy, terms it think what I would it whatnot, And to I we and is -- terms numbers guess think I what the think way the we to generally in about about how And would to it. probably makes terms, where that We we range us. we're think later. something that's be, talked an it sense about right. about might way going. long-term that More in for we're I That's but the I to direction sooner that to than do think, step get ultimately important like you is rather what not the want thinking not be, us would

question with next John comes ISI. Your from the of line Pancari Evercore

through of Just on quantify you then you from wanted quarter. some the rest hedge separately, as margin expectations and as could And could margin the impact we're we the move the if the see net the at backdrop the given talk here, front. just looking -- here, the look on I rate interest of this just you see could just about ineffectiveness year? margin to upside bottom we

interest point impact X on net get basis a a you and that it's over -- hedge as X get And impact, These we'll point The temporary margin. Mike. of John, this comes Sure. effect in Yes. are sort is had that back. probably we'll back, negative back basis ineffectiveness hedging difference about a that know, time.

in that here. from about some think -- look the that, of to the of we NIM out way the us the that should sort in you plays our and from outlook then NII gets that of growth if both sort case As out here, underpins top we range NII see laid

either this, out. plays sort to pretty if you be bottom so the of forward, will or look And close hopefully, bottom as that case

have know, around, you around little move bit the NIM positive. you a be should so bounce Now that might as can general trajectory but quarter-to-quarter,

line the then you the can provide the help follow savings, the I to know this fall of the now expect last bottom earlier? Can additional can bottom magnitude that separately, billion $X.X to billion beginning line as maybe you received? Got onion, the as noted peel Okay. billion you're about Any about the $X.X quarter cost color And to Mike. it, us you remaining that save remaining of think they're you of -- year. side, $X.X on the this

to minutes I John, we Yes, just ago. a would back just few talked about what go

And be -- the quarter need sort of also about about as we'll the think play And of go we about more the at vet impact we and rate. will what Charlie are expenses, just a initiatives the sort run think more top of throughout as on of you later get lower lower about we fourth guidance as year. As of as we trajectory rate we'll that go out, into of the a that think as talked on the when mentioned, we efficiency in additional working that investments the year. to provide make get we last we and sort XXXX we quarter the

can. want And is this a I Charlie. to couple things, add just if I of

and First do you everyone amount tremendous a our the of have consent environment of that those on things. just all, I'd orders and remind all work at look to we control when

lot ourselves about remarks, prepared say, in as We're one a do. -- work spend into my significant get certain that. next appropriate. we can as very has to is of to it we but not whatever said no so and we And And have because going little that to a what's again, asked there's is to really And to I we're we're going year, number have committed lock spend we of amount necessary, money. into a

to really we very any want just position quickly. of but focused doesn't a so we company, -- also it I sense. world But get the as remark, more it's color. it's make efficiency be moving you better on in closer, just the improving just quarters given give And And -- X to we'll away, is are

we of work expect a growth the able a franchise. in the of would be putting of that businesses terms position do ourselves of have out we get lot that and in to building do this create kind revenue so We to to

to what's company we the as not into being continue we the do a net goes this and because ability beyond still the future, the while we that's work a to be expenses more come basis build necessary specific to out-years. to our we have term, reason reminder. But to we're And would long the for look on. expect year as said, we've about Part still so why just we for time down the plan do on of what too as expect

James. Your line with next of Raymond Long question David comes from the

like critical to businesses new you be the businesses Charlie, that more will, in if increase and becoming there Are to efficient, focusing or businesses that any would mass we've into about talked your you a strategic on your priorities. helpful lot would that to and get you your strategic impact those priorities? think

I -- them, at believe the all the report we -- all when that very on our look -- I think when these are think very, of first reasons. material you through four different that prospects growth businesses point, so generally publicly, in there we -- we

one view was -- We whether be the so the have. our hard the that it's great a question way we of part to And bit the but sit today great positions an higher that's and others, we I'm about feel so should each, a What be should assessment here I businesses. little feel I opportunities of honest than and think in say sorry. think again? the second about we the

Just your holes we if about goal share, strategic to opportunities or enhance mass there improve are outlook? specifics gain there capital, Just invest to increase some see any that any market any your those you lines? had some critical any areas it and you thinking in of business priority to where any excess could

Yes.

a think I significant think to to we're products we the amount and of this that digital of of market point a should The all at of at franchise. all way have not what out that terms a services it but of from what and our consumer have money we mean we're a things at the the spending we footprint we terms be in core leader got we've perspective. are we're and of opportunity build the size is are. look kind at game, our the doing the continuing given I significant internally capabilities digital in in do

I very, a build bringing those to to out, But market what be what things year. we have about talk we would said, We start this opportunities we're there. anything a in we map and position at as road intend this that when to spending billion, that And year in not clear very we've to this about buy I included is that like we're businesses, got $XX so the in across point. all think

Our focus strengthen and money some there is that do opportunities shorter some have term. are longer to but we believe term on material to what that, spending our still

Your with next the of Deutsche Bank. O'Connor from comes Matt question line

and to past Just a strategic everything. asset question, long-term trying cap look the

competitive As which away. is becoming the about SLR, advantage for more Investment got we You've in a the that exemption think evident term? more what the going longer is fed with Bank, the vision and

there? that? to basis also hedge about it's I just way out you're huge peers. leverage comment on better impacted trading. Is points a then could numbers XXX, not And you by a above think maybe but fund the there And equity XXX was that

So start. me let

extremely is actually because over in significant interesting the the and A all well. is Bank, and broke I to at other we've it aspirations of When than importance important declared that it's of about we different afraid past of not results, did it saw our the differently. of our the don't Bank we're bunch talk you years. doing it, Bank we Investment meaningful is that anything for the results, look part of because, actually the fact you Investment All part been the actually, so think Corporate portion I is really Corporate company. as an out the actually the Corporate a not our about Investment think Bank, it it. I being what from That's but --

a as to way, it should we what continue base in time, going to moving just beyond way. not what allow way, customers most by been like is, the a have in does Corporate want terms very as ultimately, kind serving in that of your Fargo the Wells so much is. expand but holistic of think in appetite out build client we've the and you defines of that more reach an exponential look to what over existing forward, risk we we your not that Bank, And about a Investment period in doing our parts of company linear And

we've for -- large material relationships, and are in opportunities the completely want the and in opportunities U.S. at from into so the got the terms to we're it's services to middle U.S., underpenetrated significant market. significant in that relative talked Corporate there's Investment market the products lending management other products and the fees corporate us. And predominantly of true customers those Banking where on of relationships, penetrate treasury We've institutions. about what customers But focused our we're

in we our now. an the terms answer in just brokerage equity way because remember, would business a see so have but get of that in share, the building you we'll we we're just platform, on I results. that's because about, continuation methodical customer that our you're I'm which focusing clear, have it sure way, just it it, And be just it. our thinking So on we not on a describe focusing order relationships equity do about to on piece risk talking I'll stress, shot. can grow I to of just have would in again, out prime it's a question using a And

in of risks exposures, the in platform. our our do we it's the all the because what Corporate the with manage and as Investment very what there we period it. I do, manage exposure results size you how in you've And Bank. the means risk, terms that way in time Our terms individual describe think it's of not and a you of the just I seen would of way over just total it -- consistent We

no well And exited always We we that with liquidation. relationship of collateral after had we add We and a just did were collateralized. have loss, excess said substantial Archegos. so I'll we exposure with that publicly with all it our

and in to want that about we of we'll events, manage all we've is done in perfect think learned, just we as terms into would. time, the others what risk and the the factor how lessons business we it, be we'll in the all that have be we the of it done, always that way not to as case So in says, businesses and again, how have both terms what manage

here. thing one our just from add just growth of would you about I think as sort And

are we Investment particular. we've that We our place growing cap significant seen deposits, the growth given have a consumer in bit asset constrained in in Bank in restrictions with the that

about sort of play time you out. that take Charlie time as So approach that line to some that will think and sort of said,

Yes.

where that actually to create all we've that that gone a to to take in reiterate of Corporate that terms had the biggest brunt we've seen, Investment bunch beared liquidity the we at and as Bank has of accommodate to actions Just look we've capacity. the the

about step first where we the we to as were. future, the think getting So actually back is just

some just if from ago decline then is wasn't that? just clarify, Was to that noise, year-over-year, is in I equity There's think, that trading that to the And distortion driving the that comp. Archegos, in retirement? the it related year -- what's from

bit And of, than business different little that lot little our I activity others, a sort business this just levels drove It's quarter. activity is our a Yes. business. of a bit smaller cash in think,

a of significant. item that's sort I factors of think there's sort No it. number driving of individual So

Wolfe question Research. Chubak next line of from Your Steven with the comes

question point be how on But pieces So completion for appropriate sales the income and maybe off income we Lots outlook. fee Mike, thinking the the should mortgage forma a the income fee think I wanted core core I thinking about to rate jumping-off quarter. of activity? business just pro on those of about in fee start given that as IB guidance the normalization with was for moving unpack know about we maybe sales. the and that's some the side. that explicit be more there's been hoping in here, run how of completion from can NII you we should

Yes.

lot obviously, given of detail those So fee you to have in so on you going the easily. that on can we've income a model pretty impact that's sales,

you in some about items about big and the there, be for As our equity sort $X.X think line billion in you business. the it's other of of the of asset-based market levels. to driver we fees, primarily wealth as key other that, think about going sort had quarter underneath And advisory

flows to plus can And what going come in. that you happen may so think there, model is you

is business. for mortgage you expect a point as we you business. this have pointed the origination As cyclical, That the sort see what second But said, given robust volumes to in in another -- bit quarter, we're we $X.X out. what of billion at our

rise, at see impact And in volume least. so good rates continue quarter, some terms that should of there be to a as And there. you'll impact

the other fees As deposit you -- billion some too. got under pieces, at and of couple just of you look dollars lending there, a about

in the I over think some in but pressured short growth should see normalization time. those are run

more transactional of which fees with couple investment of you've I'd nature, banking another it's economic card fees. of got You've characterize then billion got kind kind -- whether should that's grow or in And commissions as activity.

few probably on with -- think sort can of way And in it you you so where view way, I that think you a drivers that it's model that gives if a some that you about you gives of a headed. come up sort help

on NII, my for focusing follow-up deployment. on just And maybe liquidity

couple a was some your know strong position. predecessor in flat the curve fact it a ago, securities, your liquidity You think, to Mike, that point quarters redeploy was excess pancake. that time, excess very given, the I tepid guys of that alluded in was of that I actually to into just as and a are appetite who at

guidance contemplated hoping we've was appetite that Now book grow to you your so. to the the what's speak of incremental in NII excess here, your liquidity capacity steepening, seen from do actually just some securities could deployment terms liquidity in and to given

No. Yes.

you of think at in increased look of As you a $XX billion as we've in got under And marginal way, point we've capacity. out, the happened a little portfolio. I quarter, plenty kind the what

although to steepened, out, bit point we've But of rates you it. curve So started redeploy has of as are sort relatively low. a the still

in working this get most with to balance of do good effective it. the we're when to how OCI to points, so sort carry taking way. faster over the we of time we're get short-term by and we're And redeploying going advantage impacts And entry

look redeploy that but would we as from, account take we the sense at of not of a just pace into view, as short-term need of to think we I also So going to that items other opportunities prudent forward. make sort sort carry continue the to sort we're all see that

Your next question UBS. comes from the Martinez Saul with of line

just you're and that you can notable just we those the the proportion around? the guess, make XXXX, about, Asset of expenses I the with what X stick roll I or as is $XX aggregate. expenses we're billion in that, that and expenses, And or -- talking business billion is in hole there embedded bit. to with base. what will the want of to believe they're me $X.X about of associated you I'm that I will is adjunct guess expense business Management an Because that sure mentioned creating what still $X.X a and be revenue sticky Corporate how the -- to remain billion expenses sensitive impact Mike, for some will the expense How a the proportion Trust annual, do time -- And no is $XX those in to little of off talk on of sale guide? guess, businesses, what a $XX billion the about understand sticky how about billion period? $X.X unclear What's billion bit that bit little number, they I a in

be unpack just can of stuff, it So helpful. some you this would us help if

Yes. No. It's a good question.

year full you for $XX the billion. as Corporate expenses Trust and the in that would think assume of Management, sort those Asset about So be here we

savings no relative assumed we gave there's outlook to So the you.

of, point sort I one. So guess, number that's

other parts we'll degree, is of the services trying On take Trust of to they certainly some have point both these the migrate and as on out these what were greater maybe the transition for business a we businesses. businesses, Corporate probably agreements question, to with --

So some of the expenses stay.

part Some those of that as will get offset but agreements. in will stay of of some items, other the expenses

of just sort use overhead two portion it an a That's of So everything more across organization. of shared X. not expenses expect, point I day as on would are is sort that, Point sort these transitions as of number that corporate the example. number one. you there's

us take of work longer a that will little out. it the So to majority

XX% guess, XX% guidance lastly, impact take we'll these And an longer. deals, characterize that closing transparent between update of we will our sort be a And will little I as so as on of to and somewhere it. how get these I and then provide bit on it to

about I I'm billion, to ongoing it. the the XXXX should that in should, expense the which of But call thinking the Asset $X.X XX% know, Corporate XX%, of looking if of point, Trust, reflected of the that, don't was rate run the rate, assuming bulk the run and relation it, year? next billion, we're Management really, out just deal in at sort that Got by is by be $XX should, closed,

subject to agreements. Yes, impact any services transition from

Got it. Right.

we'll closer, as get So that. on we more give guarantee you

paid get we Which for revenue. would in

Yes, yes. yes,

We'll in said, for way most cases, reimbursed. we'll on still the As get Charlie the revenue expenses. by accounting these have there, these that service and transition is get some works just we'll some offset And agreements, expense geography. but

reason deal operations a in there why placed Is closes? the until are not these discontinued

and we'll we in. of Management the the of Corporate Well, we out noted as the so I segment Banking call, the out think it I Corporate, quarter. it's Trust moved And that to segment Commercial in Asset moved move on second

to sort segments. able see be you'll of in impact of the So operating it clearly the

line the McDonald question next John Your comes Autonomous with from Research. of

cleanup quick two items. Mike,

investments? there. part some this of look it upward of can making factors then and give low rate, And releases tax years low what whether importantly, what's the reserve more the on the Just you us is Just tax-advantaged us profitability out the as further is year on remind -- Or you put it tax rate sustainably into that? related? because pressure

are are Yes. growing them in been year see after got to the -- to that kind the of as our we rate, The rate on from the from easy get is forecast, -- we XXXX piece biggest as are tax that's the renewable and what's And biggest no pretty and effective of those those you pre-tax marginal will identify right? the those housing K will -- tax marginal we credits low-income expect and be we Obviously, the are, those tax that continue. rate. us -- at that tax There's -- relative on energy grow And those down beyond the for rate. those will above we year, they they And impact, the what to grew the what and John, disclosures, and bringing expect have will sort -- they well. impact more can income of we've credits investments. have get

-- if rate sort money, so obviously, see inch time. up theoretically, you'll earn more over then presumably, And tax effective of we that

just then the And on outlook, mortgage mentioned... you Okay.

correct The said, impact our me. rate lower -- we big. Again, from add that income think size only is Charlie. it one affect the of John, you get investments tax-advantaged as these going but just the the rate. that releases And marginal and Mike in dollar about on that is on substantial Mike, reserve just is terms the on benefit the have. forward, we this I'd tax can total The that rate, not the of number,

it. Got

So a rate this single-digit Mike, you're tax still correct? expecting year,

that's the Yes. Yes. No. At case. this point,

outlook be kind just the in clarify that might bit think retail to be you'll like industry great. down volume, strength but but expect then guys to the the I mortgage outlook, because be that a you some little that would robust? And Mike, said of you of of Okay. were down on on your a still bit If you little have. you Or just saying you clarify just could mortgage, buck

typically, Look, what Yes. a seeing. actually to lagged little their the bit industry the relative industry is forecast data,

will think to in be I out pretty what sort on feel little I is terms so see on down pipeline, like the side. origination projecting quarter is that we'll And industry a our their quarter think how weeks we're a over it the coming be bit, on second forecasts of what plays we going that are. the seeing But of robust based but

but gain-on-sale likely in to well. down, volume come to see we're that You're margins as increase see likely an

So...

Vivek comes Your question from Juneja with next the line of JPMorgan.

have question just on you little couple Just that a mortgage The Mae banking. Ginnie buyouts. Mike, is since bit answered ones, just cleanup a I further of partly.

versus sense to because gain-on-sale that to much quarters, sorry, do How You how -- a about couple give I'm do? your QX? much expecting then margin the Ginnie your And much could that gains. the that? us did Mae more boosting was that what of QX gain-on-sale buyouts in talked of banking mortgage next margin in continue are you how And

Yes.

point loan the point number of from of -- as think, the sort I don't of the our we you well, out can on balance after. re-securitize of in them, impacts that impact me Vivek, in that But I buyouts, front I Home but also Lending. would up so out sort also have as would with we sort I buyouts, balance the our early follow

another driver. of data you think quarter-to-quarter. in balances look And And that's those so Qs I the like give some in terms big we what

quarters, So that more re-securitize we to loans. over those we're the continue would to of going coming expect that

Corporate Asset on the your -- capital will you play Don't is asset write-down terms worry, an about buybacks? on the be lifted, And, that the we're the... not the of then anticipating that net sale some saw down to too? and Or well, into pace of balance growing of that we give Trust. work cap gain both timing the one put to to given all And getting on that, cap Okay. you. the a share the goodwill since businesses, thinking sheet, will on opportunity are but that second asset just lifted you goodwill? some I that pin you numbers on for of Management to in at Is buybacks of trying expected need share would point, the adjust and how to I'm obviously of that Charlie,

Yes.

So Vivek, start there. I'll

So was want loan I sale the business but accounted get we the on student don't to the accounting, the wonky portfolio. for way of

And how in so there a the that discretely was showed goodwill through. write-down and flows that P&L

of everything so there, the adjust have sale sale, sort net all business you goodwill, won't write-down corresponding the the for the at that. gains, As and -- of into Management of goes you need Corporate you Trust to Asset exiting look a don't that

work we'll fact as other that of priority, to levels, on we continuing we're to need top on progress of got at you call, significant sort making at I of capital good a -- -- through not continue our the our stock to continue we're we've excess around couple believe than sort it answer times a that, do significant a sort liquidity there. go capital. the as do that. to And has that And as whatever comes we're look our all, Charlie asset way back think to not amount to it's of commenting to and said of the question, of our -- and cap have we sort

So...

Our final with question line will Peabody Charles come Portales. from of the

have I X questions, on two X NII. on and Yes. cards

of punching the cards your going below to in that this lot that you hearing they're are half curious, And the a the card front, their companies you On the marketing mentioned second accelerate you're really on weight. card just from JPMorgan year. spend and morning of

How business? So position expecting grow in pricing, rewards? improve your you are you it -- Is to that market are gain to expecting to share? how are you relative going

what Sure. is at business about the say of Corporate hugely opportunity, Thanks with. receivables. it's look today do Investment we our those their $XX-ish we we like more the we billion a of step way, have it also look have question. even I make This risk at for franchise, have our what at which our currently every doing far reasonable-size to the which look touch. Bank, that we we at -- think our the anything make of primary we're in and is the first for for we comments that fraud, we attractive company. will customer people would the of product when start underpenetrated, the is different card would more fact offerings that think products at that not for material attractive today -- going. perspective we're you in again, service, like to talking way what look my I from a are competitive substantial, opportunities company, all, and hugely of a it we Charlie. When our becomes the so the do The we kind card you do look as base or the we are is say, marketplace materially when have a but on the currently propositions When not look products we business is on when has available out improvements touch Ultimately, though size where things across that consumer about that customers the

we've something And penetration. to do great look -- because increase which of opportunity that us. very very we I it's so is uncompetitive, just very, clear ways, -- very, to got it's we're building it lot creates think what which on it's a we're about In like a particularly at for very basic very,

And have end. I guys for believe your at NII, scenarios of on as that? modeled Can rates the findings a short question negative follow-up on some you share you

all. rates short negative impact end the Look, significant Yes. in at won't have a on us

have so outlet being XX us. I impact see think for the I an fed we the points, don't basis that and at at

turn to now remarks. any back concluding conference for the I'll management over

want we Charlie again. to care. then to call just and quarter Take for time, to next during I look the everyone the thank is forward This and on the you talking quarter.

that Ladies and Thank today's all gentlemen, call. for you will joining. conclude

may You now disconnect.