and last some good communities covered. X we Slides Charlie customers, morning, and our X how employees which you, Thank of helped Charlie, summarize and everyone. year,
diluted for with I'm on quarter Slide fourth billion Net results financial to income our share. So the per or start going quarter fourth $X.XX was $X.X common X.
of interest, in mortgage $XXX enterprise in $X.X market venture sector. business made million earlier recognizing the non-controlling after Both revenue predominantly current operating in matters, value remediation, It's rates the portfolio the the $X.XX at amount regulatory lower note and a that the investment. including software and million or we per driven share companies fourth enterprise XXXX XXXX software customer companies securities week. of throughout public by quarter primarily our litigation, results related affiliated disclosed $XXX Our above business, Lending, billion of Home announcement remained of billion this XXXX, historical or impact equity while valuations losses capital to in of growth headcount to slowing of $X the related we've impairment, investments charge of end included impairment variety previously initial these plan to even this includes important expense, valuations. after reduced primarily the we in severance take this to of this primarily of
related partially interest million in We on offset discrete reductions highlight to of by were These tax prior Slide $XXX and years. X. benefits capital overpayments
the Our reflecting points earnings, fourth CETX our ratio from the issuance XX benefit AOCI. plan approximately annual quarter, up an from third share from for our XX.X%, increase XXX(k) matching basis was contribution, the quarter
Our CETX our ratio capital which X.X% took fourth XX buffers, basis as the the new plus well quarter remained increased minimum at effect. above points to regulatory start of our by stress buffer required
our GSIB surcharge XXXX. in reminder, not a increase As will
this repurchased not of to year. resume quarter first the of we since repurchases in the stock currently QX, expect have While share we quarter first any common
Credit quarter. Turning to the XX on strong performance Slide points X. basis charge-offs remained credit fourth in net quality of with
actions losses as expected, time, expect return from as high them and the federal to cut lows, historical inflation. we over take are to continue increasing needs pre-pandemic toward However, to slowly levels to
XX Credit fourth from quarter remains businesses of quarter fourth XXXX. only in but our average the an performance third quarter. across the basis in in remained increase Total of increased wrong charge-off card net driven charge-offs the $XX by levels loans, consumer charge-offs in net to X points the credit below base consumer portfolio of with commercial net million slightly
more were Nonperforming from lower assets loans commercial mortgage as X% higher third quarter offset loans. residential real by than nonaccrual estate increased the nonaccrual
credit in quarter, as million for $XXX well as allowance increased fourth losses less reflecting a favorable loan Our primarily economic growth the environment.
potential for actions risk to We some take standards. further underwriting tighten targeted monitoring portfolio are continuing our are and to closely
interest price to quarters The our of of down trends year-end X% rates. our three highlight Auto compared at size ago in me fourth a were Let consecutive actions rising XX% portfolios were the Meanwhile, to of continued originations due the for two portfolios. down declined and which and balances end competition quarter to reflected compared tightening XXXX. credit XXXX year in
Of actions reflecting the of vehicle new we've quarter, implemented note, vehicles higher in industry dynamic growth. sales vehicle our new originations that surpassed tightening combination of and the used fourth credit a
weakness the market weak demand Turning and well performance to real operating and economic vacancy commercial estate showing portfolio. challenging as office The of to is higher due signs deteriorating capital conditions. office rates driving market as
to this being with with we credits translate expect to balances over do and are standards to both seen proactively disciplined outstanding significant loss haven't time but our underwriting While and ago. year see content, and exposure borrowers demand a in working down compared stress we
in Slide loans, and On consumer and Auto the third X, higher $X.X growth card with deposits. the highlight from sixth our by commercial quarter. continued a offset consecutive and grew declines residential loans ago loans quarter portfolios Period-end X% by driven and we partially increased across loans loans Average credit billion year portfolio. from for our
when specific from reflecting ago segment a highlight points a quarter. of in growth business, our higher-yielding drivers ago our deposits XXX third third lower basis loan management from results. alternatives, consumer quarter, Average to basis I'll and spending. Compared the X% and consumer the points environment. year rate reallocate customers from Average reflected quarter, declined the wealth in operating particularly we with increased higher discussing continuing investment from year the X% in declines the XX continued cash saw and and each balances yields third
interest deposit deposit rates deposit response from fourth time. quarter rates. increased points quarter basis XX all expected, As rising of costs third XX the the segments basis cost across Average average during market our XX are basis in increased driven substantially points by more XXXX, to operating up while points higher since costs to that same have
deposit to we to lower customer continue to continue. yielding continue rates yielding products betas to deposit higher rise, expect As migration in would to increase from
benefit which Slide XX% provide higher the I'll our on income than income the XXXX Fourth higher on details on interest was year we to net from net to billion, ago impact quarter as of was a interest Turning X. $XX.X continue later expectations rates. call.
XX. increase higher was expense on The from in the to ago expenses Slide driven year quarter from by a noninterest operating Turning and losses. third both
losses, higher lower year severance and flat by from as operating was expense was noninterest on a compensation ago expense continued other efficiency revenue-related initiatives. our Excluding progress offset
December losses Our operating the consent CFPB fourth related the in XXXX quarter accruals included order. to
The agreed one to approximately related we incremental was settlement, these million. remediation one accrual two and remediation to related that of $XXX remediations part As to new overdraft fees.
end Our legal of accruals operating billion. legal from is actions $X.X December with our the in also in as fourth quarter of estimate accruals loss losses accruals current reasonably the included approximately are other these range the XX, high actions of XXXX, and possible of of excess reflecting
from This XXXX. XX, is down September approximately billion $X.X
updated will matters lowest the our While at XX-K the in we matters develop over quarter estimate the filing be for though, litigation December existing outstanding The since change. may second of will XX, still this have of would resolved, time. be XXXX course, of XXXX, February new arise level estimate and will time
past as the acknowledge the significant, historical cost we steps they been level operating ratio highlighted of been able the quarters issues putting X we've elevated to CETX as behind in our of While earlier. important increasing has are absorb us losses,
higher we interest Turning impact driven help XX% avoid fees with rates. year XX. we completed Consumer last Business fees. decline overdraft to rollout that announced year Banking fees by new on and a continued Consumer enhancements of of product starting the our operating increased to customers to from early Banking revenue the Slide Small Deposit-related and overdraft as segments, the
in quarter impact run rate. of The changes was majority fourth revenue these the reflected of the
our expect by on XXX response staffing In reduced continue staffing customer we focus branches increase. and branch our optimize adoption and branch needs. we to and as and customer and digital usage by levels XXXX, XX%, branches continue changing to among rationalization We to levels to
and extremely as to industry Bankers in mortgage the a XX% Association of quarter, applications down end. the quarter was fourth XX-year refinance low ago. in to rates points for industry measured mortgage compared economic were by Mortgage XXX December incentive beginning applications were the declined at over the since basis year, While limited the up refinance The year at it a and still weekly is
Home revenue driven lower mortgage originations well pools. by Reflecting as loans these XX% year margins lower on Lending gain our ago, from conditions, revenue resecuritization securitization of declined from market a as from sale and the purchased
removed. under We expect will margin sale excess challenging the has remain and capacity mortgage pressure continue industry origination market on to gain be until
balances As will to we have impact financial results. Credit we this loan complete due rising and on launches. higher our to declined don't expect in XXXX rates Auto driven was a balances. a crediting from ago loan certain Card announced we volume X% loan the by end well XX% and of which from spread revenue sale of quarter. be as be higher the up as driven week, product action year our correspondent first exiting this to the year lower We from areas new by substantially revenue significant point business, actions expect continued compression by
was ago from due Lending a loan X% spread compression. higher year by balances, to partially up lower Personal offset
business, and ago strong the grew in XX% have our we from the originations by disciplined While remained consumer year demand in underwriting. driven investments
third in our percentage originations. Refinances XX% on key volume quarter, both of some quarter XX. ago declined declined over XX% XXXX. to in to originations XX% the were with year but ago Slide a Mortgage total originations and business and as from correspondent Turning from of declines drivers year of a fourth the retail half
decline highlighted of the in already Auto drivers originations. the I
categories season was -- card flat offset general card. Holiday double-digit Entertainment to lower compared compared for size. a fuel X% as to home category to was turning only improvement, with was So up retail volume, goods Spending down XXXX the transaction debit spend and with debit the by ago. XXXX. higher spending while was while compared to average and such ticket growth year
from XX% increased spending ago. year Card Credit a
rate started still growth rates year-over-year Payment a categories double-digit ago. growth. we're third well Average slowed balances year up were all have quarter, the from levels. almost from the pre-pandemic but While moderate, XX% have to to above continue
XX. Turning higher higher higher driven to XX% impact to increased and from net ago, Commercial balances. income Banking interest a results by Banking Market of loan the Middle rates due on Slide year revenue
partially from equity fourth and higher in lending year offset Average growth. X% up was a net gains XX% the second loan the declined were leasing by in revenue in year driven while securities, stabilized by by rates quarter compared to Asset-based the ago, ago, lower year. a loan balances driven XXXX from realization of utilization half growth
and up growth loan were the inventory, have larger in middle with from in are continued balances grown was for pre-pandemic which our levels. relationships, below quarters lending quarter, Growth third driven in including which leasing asset-based still new and by X% declines than offset Average smaller market existing driven customers. consecutive in and more growth clients, by banking client
on year treasury as well Turning all interest driven revenue industries. year products due lower Corporate XX. rates the ago with from Slide lending to stronger and increased higher Investment reflecting activity management ago, of improved by as a Investment a across Banking declines declined market Banking fees banking impact and to results from XX% results.
a and commodities, revenues from a increased by results municipal rates. in Markets stronger Commercial grew due equities products. and ago real estate higher driven a foreign year XX% exchange by XX% trading and ago, driven from writing higher the higher interest of balance impact rates to revenue year revenue
third seventh loans most across from growing the average XX% loans as declined portfolios. Average utilization stabilized for quarter, a year ago. grew from rates After quarter consecutive
driven XX, the to X% fees Investment increase interest to by of offset the valuations. in in partially by was Management asset-based due higher year Wealth was ago, as net rates revenue the market Slide decrease lower impact and up compared income On a
majority win of the market X% lower reflecting decreased assets advisory first of by end the beginning year. so ago, The at slightly revenue-related higher the valuations from the the impact the of in the and in asset-based compensation Expenses efficiency initiatives. quarter, driven are priced year a of at increased quarter,
interest model X% a due loan growth from market rate securities-based to by in lending caused grew environment, volatility as loans in demand average ago. year the Even
our Wells quarter highlights corporate Asset of $XXX impacted business were revenue Management. in XX fourth resulted businesses our Both Slide Trust gain and in million. results. of XXXX, expenses Fargo in Corporate the last of these a the year which We by sold net divestitures
in also equity venture our losses. expenses results affiliated a driven private equity year a businesses, operating ago was by higher I the including lower from Revenue capital to securities earlier. due highlighted declined year impairments, increase in ago from and The
to on Turning XXXX, for Slide starting XX. our expectations
Let actions interest by our highlighting income. net start for me
assuming throughout are place the remain asset cap the year. We in will
continue Moving they deposits expect of waterfall based with from left rate our to current from forward faster the right even we XXXX. interest income on will curve, did the impact the repricing net in benefit higher on to rates than
to However, runoff, this by be by is a continued offset expected partially offset being these with growth. benefit deposit products higher-yielding shift modest to loan mix declines partially
We partially for net gains CIB lower revenue currently in increase income be This to be also to and costs. is small. the expected reduction interest is expect so noninterest an expected trading impact income, higher due by Markets to headwind offset a funding to
earned all the the of interest mix in on demand. currently which income we together, shape net this level versus grow and XXXX XXXX income yield interest the approximately a curve, XXXX. loan by XX% depend of are factors, of many amount variety Ultimately, pricing, including the will uncertain to net interest rates, of Putting absolute deposit balances, in expect we of
Slide expense XXXX our to Turning outlook on XX.
the expense from Following to of left losses. included billion billion operating $X in reported which right, noninterest $XX.X XXXX, waterfall we in
losses exclude the Excluding billion, operating in with at last you been the which operating of provided beginning have line year guidance. $XX.X would was from the also guidance if we losses, expenses
expenses higher and inflation by severance impacted Our expense. XXXX were
expenses market revenue-related than were expected by lower However, conditions.
for excludes of starting a So $XX.X losses. for billion, XXXX we is which discussion expenses point -- good operating believe
including increase the and in related merit inflationary in We previously by expect $XXX billion announced FDIC both to to surcharge. increase approximately XXXX increases, approximately pressures expense expenses $X million to an due
in expect expense expected million lower decreases realize Lending. be commitment by of initiatives, past We've saves announcement efficiency $X.X piece Wealth driven $X.X of billion expect to in be delivered successfully reductions to XXXX. related $XXX made of Management we additional business to on on gross to partially expense gross levels, realized. are we billion increases approximately our will but primarily revenue-related expense, the Based a by to few to approximately to of XXXX. Investment over time years. XXXX of expense current earlier offset savings take for revenue-related market more And be create similar week Home These servicing Home we an focus business expense through our is in Lending A the this this from reducing our more and
the necessary savings important our Similar complete efficiency for highlighted as We the we we'll have to years, separate more and risk and control from initiatives, on to opportunities XXXX. this resources will largest work needed work. resources we to prior the opportunities believe year, and beyond add continue address slide to this additional our
in efficiency And we focus our to initiatives, expect incremental of invest in also we're continuing $X.X on businesses while our billion continue approximately investments executing XXXX. to and
investing critical investments Charlie of also year. throughout be across better serve thoughtful is evaluate our the customers, our and businesses As company we'll the in continue growth to but and our discussed, to the level
incremental be investments in relatively losses inflationary So with higher are excluding in putting businesses. operating expected compared this even with and FDI our expenses, XXXX, to together, increase pressures, surcharge XXXX flat all a
in to expense them therefore, operating and included outlook As our not significant and predict, we have can losses demonstrated XXXX for be hard XXXX.
be the business-related year. business other operating currently losses, we we such $X.X However, billion provided to fraud, ongoing same assumption last theft this as year, approximately losses as usual anticipate which is and
regulatory outstanding matters impact It's an and we -- amount disclosed, previously that As could remediation outstanding litigation, losses. litigation had the important. operating customer of have
based a note opportunity made goal mix. remains to progress efficient important have our It’s peers achieving business efficiency the that substantial we get to significant our multiyear process our with while still across ratio of a the company. efficiency along more on with an initiatives, we on executing This
critical how on to our areas on for invest provide Given to story, focus we continuing Slide continuing primary into XX, our of XXXX. details
for infrastructure highlighted, make to digital right we and to this continue started priority, payments, invest we've in invest risk we our customers. we to commercial consumer in important to continue make As in top build improvements this both areas many our and investments of will remains year and continuing control discussed work. the to Charlie the plan of to and these
also coverage to plan and transform our our and to continue increasing continue our platforms, and invest to moving We banking, in investment and cloud investments data commercial to client applicants expand consolidating banking cyber. to investment and centers including management to more wealth technology
operations and growth. investing and operational expect not reduce While but efficiency, in our branches, to we improve only risk drive also customer experience, improve the and account
by call, several operating items, discrete and severance equity impairments fourth tax but on quarter were quarter, our As we notable results reported X% the show in of the including higher highlighted an securities, impacted XX, we Slide of ROTCE, losses, as I at elevated benefits. fourth start the
show been our As quarter on notable fourth items, exclude will approximately -- the you these if XX%. slide, have we you would ROTCE
funding, levels. expectations income believe a for Depending expectations higher slightly make was our funding you However, would higher, If loan Net were long-term here, long-term our get we than to accurately reasons. different what were our were rates, lower. mix adjustments to on mix charge-offs balances, may to interest rates, pricing, and charge-offs we be longer-term and interest pricing answer. all closer ROTCE following our due at historically low penalties, net Also, this don't expectations the reflects and
to credit interest clear, returns. than to our are rates be are and work because more our expectations, improve higher longer-term we lower So to the costs have do believe we
ROTC call XXX(k) on first XX% billion included headcount of $XX We per reduced saves by in repurchases, $X.XX goal expense approximately of of gross XX, our common billion we billion executed since to plan. XXXX. On have in our the stock highlight $X.X important Slide we net discussed stock $XX for dividend increased our end returns. XXXX, a from we common We $X.XX quarter number our a and the the delivered of We issuances gross of to path Since fourth higher items. earnings in executed share.
we've to capital, past to returning a focus good of to control, we higher-returning should that, believe the over can in returns. higher things term. and our to achieve So to redeploying positive be years to In that processes, have medium business in sustainable more sight shareholders we capital Home our a including order on the progress to line we also approximately ROTCE of two a clear we capital made and continue adding need contributor Lending optimize XX%
initiatives. to efficiency execute have on We opportunities also additional
to are Additionally, from planning businesses, I investments in the highlighted benefit our we expect we earlier. which
expect While dependent that goal we controlled term, some the returns will segments prioritize a time, believe to to investments risk will environment, market our will comparable and we to manner increase the infrastructure. continue we the same company peers. to longer these a ROTCE. At our produce In control them to disciplined operating and continue be on returns of benefit our is and more in running our best for building four
the significantly earnings had the fourth of the although in to our continue quarter operating capacity. reflect we improvement results, the summary, underlying high quarter impacted in in our In losses level results an
be operating our to to continue inflation even we in expenses, our investments drive As expect and losses interest after net forward, relatively expected to to excluding flat income we and incremental grow look growth. businesses are
resume and credit our fourth the first performance Both remained in quarter, repurchases quarter. and we strong share in expect capital the to levels
your We questions. will now take
