Wells Fargo & Company (WFC) 13 Oct 232023 Q3 Earnings call transcript

Welcome and thank you for joining the Wells Fargo Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note that today's call is being recorded.

I would now like to turn the call over to John Campbell, Director of Investor Relations. Sir, you may begin the conference.

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

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

now turn the will to over Charlie. call I

quarter to comments to John. priorities. questions. then brief update over make the some you third in results I'll before our detail we very much, take call results Thanks on quarter third I'll our review more about turn and Mike your

Let me highlights. third some quarter start with

than profit, higher Our the all diluted income, net earnings provision year financial our ROTCE per pretax were reflected results share Revenue, progress we're improve ago. making performance. common and to a

our businesses. we Our we're in the from and revenue as higher investments as well higher noninterest reflected net benefited income as growth strong interest income making rates

to Our ago lower expenses declined due year a operating from losses.

were some economy continued loans tightening the our demand, low actions. higher and driven as continued we rates weakened consumer to expected, for second and our have portfolio credit growth we've credit well to and a As levels, from as by both take slowing down quarter as commercial loan credit Average card our increased losses in charge-offs increase from allowance have portfolio. and historical primarily office net

a also spending year the migrating deposits Average quarter. remains card and spending consumer by for to quarter debit well from growth strong customers Consumer with year-over-year driven as ago and credit alternatives. increasing both spending higher-yielding second second declined from third quarter rates the as

let on progress strategic priorities, with making Now our on priority. work, we're me and you which update the control our top starting risk remains

detailed not turned to interim goes we track on, As to validation. I've over necessary the and work. progress our date time have to the be make just finalized project to regulators is work which deliverables, continue said that the for complete the plans we

The work of is a not framework once. a finalized opposite. conversion Building at It's the of just body It's ongoing effort. there's continuous not and if bang big work. is the conclusion all our risk at as control a big

are We project, the implementing effectiveness we track throughout along and the life the way. of changes

remain with it until such I've past: is the issues regulatory continues our repeat banks we actions. regulators, as what at we will pressure work validated But said I numerous of The improving ahead is We are not is making work as the the internal work all work be focused that on progress. our And on grow. our in by regulatory remain until and even to further ours clearly risk will complete. metrics complete but environment, our satisfied show we until we we of track long-standing control

issues could need these that until and be work actions. complete, remediated, additional result in is find Additionally, new to our we may regulatory

Norwest Equity core focusing to on Partners also strategy, business customers. in our which Mezzanine approximately to of billion We funds. equity includes Partners take our continued investments $X We Norwest and business sold steps private and advance certain

investments making serve to also better number are customers. We a of our

relationship our middle-market in leader clients Centerbridge with ways support on Partners. focused announced to lending, strategic we're U.S. finding recently asset-based and a with As the

play across middle-market to will growth have of conditions. a access value-creation used broader set clients initiatives be that and continue at network, see of also variety where to our targeted and optimize in franchise. pursue customers, serve continue sources in we expansions we important Our to capital of way for we but our a we to alternative can role greater an market Branches markets look the our opportunities

Last we have network where branches our expanding announced today. Chicago, week, we branch are X only in we

giving also Wells our to of stock fractions stocks the mobile help to the app. in ability price. Stock launched to we enhancements And make quarter, buy of trade portfolio a We to company's continue third regardless clients build diversified Fractions,

availability expanded bankers mobile announced customers. was to on to Customers' this consumer in need-based visible and the with money aligning launched their enhance Management to approach will digital Available be all and is Wealth Just goals our yesterday, earlier of year. clients to personalized LifeSync the Investment all to LifeSync entered goals we LifeSync app, conversations. customers'

the ability Spanish. consistent our for in just Fargo also channels. Fargo, ongoing capabilities communicate and to across assistant to capabilities We and virtual expanded of These seamless all the customers added deliver our of experiences are the recently latest with our AI-powered enhanced investments

over more third in users our are first the since mobile We seeing quarter, of mobile adoption XXX,XXX momentum, best quarterly XXXX. quarter adding active growth

to and to We've looking Wells continued to important grow. who also businesses make Fargo hires expertise bring we're

at XXXX. he Chairman our this who's from to benefited an has the company Daley, all for Vice new of opportunity of some Affairs, of end private has and in in and company, since the invaluable both accomplished we the been public long asset like leaders, take highlight experience his joined Bill he I'd to thank this to retiring the Public Bill year I Before sectors.

programs time locally and relationships worked our rebuild we communities helped this to new with our in and at reputation small established serve, housing During both and strengthen business, Fargo, nationally. he Wells

sectors as relationships our across Tom to will Chairman as will we with an expand on us I'm joined range we adviser company we pleased of to a continue and work be alongside of ahead. senior Nides the be clients. to to management month. Tom announced have to our that important Wells asset private Fargo a this earlier continue The public business Tom's will issues, move the experience close Vice team and breadth leaders as the

invest in our with complement past been hires of to other the new new capital hires co-heads making business the These over markets. continue year. we've Corporate Banking important Investment We equity

also of hired Trust Head of Banking consumer, business new We segment a Wealth and Fiduciary Services and small Chief a our Management Head banking. and in Premier Investment and in new Officer and Affluent

our also We serving communities. on focus to continue better

managing we of XXXX change to low-carbon During strategic our work quarter, our climate presenting provided risks methodology associated with targets X and pathways we communities capital that to inclusive in financial a to to the are reports gas outline deploying future doing the the that third sustainable, describe support we build serve; transition a greenhouse with track published in to overview our alignment. emissions-based emissions by portfolios the economy; net-zero interim for approach and to aligning

customer Hispanic Wells Black last has The mortgages We program customers strong growth, market our special-purpose communities. and and sustainable make our continue help customers homeownership of last We drive in offer rate. lower the shown has African to for or levels recently progress than to with neighborhood at a announced engagement. seen similar initiative expanded minority economic to American on year we program stability special-purpose results, launched credit prequalified Hispanic offers year Fargo refinance to refinance

grant homebuyers towards payment a We offering that homes financial X The $XX,XXX that eligible access first community. purchasing on for also centers metropolitan work live underserved currently help have including will be empower XX applied serving workshops down the education in now communities homebuyer and announced areas. And one-on-one branches, who certain we HOPE Navajo goals achieve free in we're the Inside through centers coaching. focusing of communities and to Wells financial Fargo engage their and

with support a -- signs continued from spending. across of continued from deteriorate the U.S. to labor be relatively portfolios. slow have Looking economy rate labor and the strength key strength consistent to ahead, acceleration Delinquencies at in resilient the our has market without consumer and

Our a given significant base range but economy, slowing is of a wide ahead. the there remains remain scenarios case for uncertainty continued still prepared we of

XX%. we set period. actions, RWA comment and expected. we It's rules. point, at are a on estimate be proposal changed complicated that didn't our sharing requirements adjusted, will Regarding the participating our we included capital higher would Basel if III approximately But as we the capital, and Endgame of take items are by and be some will perspectives that requirements we nothing XXX-day hopeful increase during that capital increased our the rules There proposed this

the Additionally, we rules. are evaluating make we based may changes on proposed

our the capital current a Fortunately, above minimum estimated plus are into levels this come position strong we buffers. as from regulatory

much the reduce we additional still an mitigating maintain the may rules. want we to of to of we need and decide want However, new what to take to how actions impact buffer

of the level rules we point, repurchasing by will concurrently Levels path common be increasing see CETX dividend appropriate, each a proposed economic our still and our stock. the CCAR, this as increasing finalization of conditions. of to influenced and At

I'll the over now call Mike. to turn

Thank second the a billion and income quarter the ago. everyone. and diluted up was from $X.XX morning, you, Charlie, $X.X for or good quarter share, third common Net both year per

or $XXX tax Our resolution matters. of period benefits third discrete million $X.XX prior per quarter results of tax related included the share to

and liquidity on capital X. Slide Turning to

of in on from XX% in increased above private equity certain point second earnings, from risk-weighted Our regulatory plus investments as X. lower by up effective repurchases minimum the third our approximately offset basis higher percentage This new XX.X% dividends. share only ratio the CETX assets sale was and X.X quarter, benefit partially the to quarter points October and the XX were buffers

we During stock. $X.X common the third quarter, billion in repurchased

proposed anticipated Our that for Based decline the phased-in proposal buffer strong of calculation ended be in in CETX buffer rules the the the as RWAs well estimate changes. our III implemented if impact quarter, basis fully and capital well the on us Endgame growth related in the written as position above required the points the the levels the ratio would G-SIB XX resulting to new as we factoring where increases we minimum third stress after released our Basel quarter. were capital

and estimate, subject an may this Importantly, to is any we mitigate the to take before the new of rules. actions is change early impact

continue we to we to plan ratio, for continue as wait have rules capacity be finalized. to while to we forward, Looking increase CETX the to our shares expect repurchase to capital

quality on Slide credit to X. Turning

declined average commercial to modestly charge-offs charge-offs by higher from to industrial estate. partially average $XX loans points X and second basis loan losses of XX Commercial as million continue net our net points up expected, second increase, we to lower of commercial XX the from As were quarter in of portfolio basis the basis real in loan offset points loans. quarter losses

of the continue which remains weak. market to We represented be loans, office office X% down the Vacancy and X% our outstanding. of total $XX.X from billion loans second had rates quarter, high

on CRE includes which to monitoring continue reducing portfolio, Our exposures. teams the derisking focus and

and different we is As we past, situation highlighted regularly are this that review the in many performance, which variables determine why there is property each could portfolio.

net consumer losses expected, in increase had largest the to basis As million loans. was other of loans with points were seasonal quarter mortgage portfolios our auto which higher increase consumer loan and from up have the charge-offs recoveries, average continued up lows. net to Residential to portfolio, second $XX while the our continued XX all second from quarter

real nonaccrual paydowns, loan. industrial which second Nonperforming from driven commercial assets offset estate always the nonaccrual $X.X as in increase decline doesn't estate as was the in billion of was nonaccrual in The office than loans more decline assets result portfolios. all reminder the in to good a XX% in growth consumer nonperforming payoffs modest commercial the a resolution declines quarter and and industrial by that loans well nonaccrual charge-offs. increase as due The primarily in across is increased loans commercial commercial real

X. Moving to Slide

consistent office relatively separate the for balances, auto the what you for with quarter Our shared commercial allowance lower in allowance we with losses real of did include past slide third the few real in card our not well this Since as loans. as composition which estate we was portfolio quarter. a offset for commercial credit quarters, estate by is office for credit loan $XXX partially primarily loans million increased a higher

commercial the credit for losses of office update breakdown real However, ratio showing the portfolio. for the we coverage table allowance estate, did including the

significant portfolio in yet. charge-offs seen not estate We've increases our commercial in real office

at coverage XX.X% ratio to do we the end of expect commercial portfolio from third increase our quarter X.X% higher second over the of However, time, our end and -- estate the we office the in losses and commercial quarter. at the in real CIB continue to

Average deposits. second Slide both On modestly X, a down quarter highlight and loans from and we year loans ago. were the

Average drivers to While environment. when a declined. XX credit basis loan to we good from segment yields continue specific basis points second the have most the from interest card the ago discussing higher points in second quarter operating growth increased due loans results. from highlight our other I'll quarter, year and portfolios XXX rate

our Average deposits and they wealth businesses, a also higher-yielding cash and declined reallocating deposits Banking, Investment consumer driven deposit ago predominantly into while Average X% in and by year continued consumer outflows Banking. from declined Commercial stabilized spending customers reflecting in Corporate in alternatives.

As of in costs average to XXX basis higher costs up rising across quarter points all to response our second deposit operating with increase, from rates. deposit the expected, continued segments basis points interest XX

However, noninterest-bearing the XX% prepandemic second the deposits percentage of remained the quarter our increase pace but slowed, average and to decreased from has levels. modestly above of

Slide Turning to on net interest X. income

due from partially million billion, in continued lower from interest balances, up as the to impact and by of net impact second to interest additional the higher benefit quarter The rates. was decline was quarter of $XX X quarter from offset we income deposit $XX.X the Third ago, X% year the average higher a rates. day

Last pricing income full We now for net quarter, growth expect from as the growth grow including the as fourth $XX.X was outflows net by primarily we approximately noninterest-bearing repricing, deposits. be The interest commercial XXXX XX% full increased expected year the our of income with year XXXX competitive billion. quarter in to year. continued deposit in interest XX% deposit XX% assumptions growth deposits income compared with to at our driven the XXXX, for income migration expected approximately interest-bearing interest quarter net on our of to up beginning additional compared was XXXX and by with expectation decline XXXX expectations from to interest well fourth continued which approximately

now expense onetime and ago a lower costs, for $XX.X to excluding compensation $XX.X quarter. to and additional expenses operating saves. realizing billion operating Turning noninterest by expectations to our full expect expense higher X% approximately losses some from we by it the efficiency the from XXXX fourth year declined billion. other severance approximately quarter, lags Last quarter in approximately losses Noninterest on comp. We or reflects increase Slide losses, and be operating $XX driven X. expense The billion second revenue-related in year driven revenue-related severance and updated increased

from believe and will reduce to head reduced additional since the year quarter X% every remained still the ago. a have additional We've result severance in actions quarter third has and was in and it XXXX, We down likely of count quarter we which X% count expense attrition opportunities second for low, XXXX. head in

through plans of process. working now are our budget efficiency part the We as

Additionally, could And we if FDIC remediation quarter, related that in have results. finalized the fourth regulatory reminder, the the our would in to litigation, as expected assessment quarter from finally, customer increase events earlier matters a was year fourth expenses. and impact it operating special outstanding deposit the

the income and ago net of Consumer higher interest was by driven Consumer, Turning driven a we interest to higher also increased changes small our deposit-related making the with and last Banking XX. highlighted banking impact on investments overdraft rates existing operating our lower across our in year we're partially segments, in revenue out year. were by from branches policy investments X% Slide fees rolled refurbishing making starting Charlie as network. Lending we business branch Chicago by and offset the network,

our for time, of creating easy year number digital a onboarding Additionally, X% bringing our by experience to fast our total customers. experience ago. branches, and a reduced we've same the from we our are At branches

declined rights. income, driven of originations impact banking year due a sales included income which of a mortgage in by lower to Home XX% servicing in lending revenue ago servicing decline from mortgage the

from to the third staffing in levels a in continue ago, expect down year quarter, to XX% we home lending continue will head and decline. count reduce We

rewards X% a increased rates introductory higher remained revenue year year have higher card by expense. to balances, Credit ago from the card stable Payment relatively levels. and been prepandemic due loan over and rates promotional offset past above partially credit

from XX% and success the strong, our to be products continued New account new increased marketing. year growth ago, reflecting up of a continued

the booking accounts new were continue than historically. be Importantly, better we of the to quality what

to of Fargo. due year by to from Personal lending loan customers, balances. higher spread year increasingly declined existing While new ago loan continued are to and is compression lower XX% up revenue more Wells attracting customers a Fargo XX% we're driven that from Wells revenue the Auto were new cards loan balances. majority ago a

key Turning to Mortgage some and a declined year second quarter. the XX% business drivers originations Slide in on XX% XX. from ago

including has at did We correspondent from the announced The this compared any as the on Fargo serving make competition. third credit consecutive in we quarters, a to third and plans Wells of the X year, or auto declined size communities. ago, minority progress volumes on We tightening Bank year as in fund XX% a not quarter earlier as end to continue actions the year X% for customers our mortgages well down originate focusing Origination quarter. declined balances well borrowers price portfolio reflecting were ago. of as continued strategic

towards actions Our continue we've reflecting origination year. scores, taken FICO shift higher to past credit the mix over the tightening

Debit the in fuel, offsetting be year from continued spending ago, a from year fuel, and ago ago. a most second card and after was categories improvement with grew a card travel. which quarter. strong categories up including from All X% rebounded year growth XX% spend declines to Credit increased home in declining in

rates Banking Turning year to the of interest and Banking a loan higher Slide XX. to XX% from revenue results Commercial impact increased ago due balances. on Middle Market higher

growth the by loan renewable in higher were ago the energy in quarter third Middle revenue balances X% Market After year Banking. year-over-year compared declined third quarter Loan second from leasing to year Asset-Based revolver to as utilization Lending X% due to the rates of due increased were in in levels loans a investments. quarter X% a Leasing. driven lending the in the to first up increasing similar to balances half Asset-based declines year, and higher ago. revenue Average and as down well

Corporate impact increased by of all higher to Banking XX% lending treasury Turning Slide the Investment across revenue interest XX. reflecting management ago stronger higher activity products. revenue, revenue Banking driven higher rates, banking reflecting from increased a on year and investment results

helping hire us for and we've markets our when highlighted, improve. well to us bankers, Charlie experienced positioning clients continued As deliver

balances results our real we benefited were revenue revenue reflecting made higher equities, we've as loans reflecting Commercial slower year of a low-income offset year with partially and a banking, in combination ago, investments rates from deposit We've and had the and for business, Markets revenue loan down impact and to XX% in exchange. X consecutive second quarter. from year talent XX% this market line from Average balances. of driven foreign products, a and in housing higher driven technology ago and loan X% grow increased estate from Average ago were interest the utilization. demand grew the by lower modestly lower structured revenue stable by higher credit trading quarters volatility products strong by business. payoffs a

Slide balances into X% increased revenue to interest compared driven driven lower declined cash deposit alternatives ago to by year loan higher-yielding the valuations. fees Net as increased Management a customers income year well as a continue lower XX, as due reallocate and market balances. On by from Investment Wealth ago to asset-based higher

of in slowed the third quarter both deposits and While pace ago, second a compared the year to the were down decline the average quarter.

from Management results were were assets and ago. reminder, priced the quarter, of valuations quarter beginning Investment which X, so the July of third at market as higher WIM, year Wealth a majority advisory of reflected a the As

were a but securities-based pricing in were market lending. quarter a to which the from will Asset-based due ago decline the were third lower quarter date. down year as fourth from reflect from loans X% primarily ago X, year Average October also valuations higher a fees of in

stock investments, third had Slide nominal XX results. includes year from revenue. $XXX in quarter. that a related third Visa and segment and changes sale impact as reflecting This well exposure corporate we common lower as capital quarter highlights a our valuation income. investments the net The private equity million the venture capital the Revenue venture funds B of sold to declined on including ago, our assumption

summary, third the In in results improvement in our reflect financial our quarter continued performance. a

of growth compared we pretax months year, X and in first profit the strong to earnings provision had this share ago. a diluted During per year revenue,

charge-offs primarily losses we over lows, net and our increased loans for expected, for higher balances. increase this continued credit our historical As have year $X.X slowly card allowance credit billion to and by CRE from office loan

portfolios our monitoring appropriate. actions tightening and closely we are credit taking believe We where

capital Our capital have increased, continue to excess we to expect shareholders. levels to return and

now take questions. your will We

first Research. take And from question McDonald Instructions] our will of John [Operator we Autonomous

ask to wanted efficiency expenses, goal Obviously, about a big I the yours. of improving Mike. been has

I with you're on mindset opportunities you while into even helpful. can investing are roughly you 'XX progress to know yet, from additional give guidance the not ready made in What into for the a you are give here efficiency budget regulatory. to You that that but be Any would be probably as improve going planning should flattish? comments head XXXX? they

Yes. Sure. Thanks, John.

back it let's closer ]. brought all program -- almost to peak we track. the keep in sure a billion. ago First I think head just off, in And XX,XXX roughly now years all cut to X count XXXX right? from [ on still We from We've or that's XX,XXX $XX down set out context, make

say of very are last few over are So of couple both this to I as would there quarters, still optimized that think good more make very progress Charlie efficient. And we And at sort have and have parts I said the to we to company point. of would do date. more it the I say

require automation Now some terms investment others, some than have and in of don't. more technology, some opportunity

make years, operate mindset some remarks. we efficiency a disciplined we the to going we've every I next quarter for we to for we while highlighted But bringing last and continue same think just it few But the more Where the share of And been do now been drive do making company approach very those do you and share going what on prepared I to like to with we to in area single saying, to budget with of to that the are into in continue even do. we've process ultimately January, up, think as We'll I every always ends there that. how we that it's we're think investments we'll that the go well. year.

then Okay. deposit or interest net you And fourth what for decline. assumptions things It assuming shift you've the Are building -- like to seems a here they mix Fair are income outlook on enough. you sequential the accelerate outflows and mentioned big from similar quarter, assumptions? in that pretty seen this quarter?

wondering there. Just kind of some assumptions of what are the

Yes. there and both terms quarters can it's -- from all like may of shape it the the but pricing of deposits -- of out up. the think No, quantitative about see a the in path forever, competitive X, over tightening, all how still others. reactions will Whether any as there's certainly look, I X you as lot last uncertainty -- the we've of talked last now, X, feels we

see And so at these to continue I appear to trends we some think we're that think going point.

we Now we've would, this it at been as that to some as will. progressed -- pleasantly date fast point, but it year this hasn't thought surprised

we'll move modeled in we've as in maybe position so hopefully, doesn't it And of fast a as where pricing. ourselves terms find

you between people see But look happen to their as continue are trends money. happening spending all and interest-bearing, going shifts you're at costs seeing we those still consumer deposit and side, you -- increase. are on And noninterest-bearing the to

keep of same. base all certainly hit but at forecast to as exactly try things those give different a case modeled it, can we that scenarios, we you going what bunch under we so and And this going pace a is the to are

Steven question Wolfe from Chubak come Research. The of next will

capital you potentially CETX guided inflation that because targets to made bring X.X%. from start, So evolving. wanted The those comments does about Endgame had Charlie, RWA minimum you to III and Basel some to your

than of continue a does larger the a maintain You that XX%? what are to possibility maybe alluded to Since excessive, you would and to of cushion some to you, target. feel above run bps management factors at mind subtly, lower XXX managing compel peers the or cushion

We're We me over we let appropriate I'll finalized, and And where buffer I start the to Well, trying to I'll about where are. -- any give would thought communicate we'll be. were then Mike. is we'll buffers trying everything it determine the hand very what just factual not or -- not those. was direction once be we trying right to are just and about to

into So please any said more and just try that. I other what than read don't

think, at know to And basis estimate been buffer But what that minimum the Charlie at XXX time talked about might I point, saying Steve, be. least I -- closer might Yes. probably may our over your is And I as be that basis over said. we've we've this points. think is XXX points XXX% wherever right evolve,

the operational other is But pieces bigger the one to the of the you the some increase risk think as factors. -- RWA driven it's I Basel be III, operational risk are is of of at in look whether by certainly things that probably going it. plus obvious, pretty

I shakes And next really final out rule how we have do that the to think so see year.

requirements changes moderating of to think some operational maybe to the also aligning risk some well. while just increases capital We're hopeful that there'll that be the makes the sort from as risk sense of areas we

over we factors to we on finalized could in have good change as have a how And also go and get to so of the engage of and talked while clarity then what's that in to there go we're that But or think But needed Potentially. there. the be smaller take so going you get is buffer that we had we not having I now would for buffer we we'll to big what and rules as going our to one terms slightly the than the past? these lead have finalized, change next should we year. about a actions once we've be

final months to and months rule, for a so bit a little we getting probably X away play So XX out. I we're mean, time have still to from of this

And for a continues expectations. versus It trading on business. positively to just surprise the follow-up,

multiples to any running made, what as of forward. was benefits or the cited you in $X whether being investments above there that bogey if for speak cyclical I be underwriting billion-plus just seen billion-plus consecutive You go hoping could were you've underwriting quarters, shouldn't or that of reached a should prior volatility. the new that and years X be revenues benefits benefits we with maybe normal some we anomalous But $X we've

trading think be that Just the made of trying normalized revenue about what you've scaling the level investments business. some of to given of should

methodically you of -- on a that. -- clients we've fit a the as our capabilities to been with do investing like just I'll we what core are. more supporting Look, we the with Yes, that way -- said, doesn't more focus we've in just take I expand trying more think in scope who versus capabilities than

what think so try do us And seen there businesses. those I to that's in you've

FX businesses a technology. or it's rates like methodically of sort in of sort improving people and just of adding -- So and couple slots

been certainly of we've in this the benefit some the volatility And year. market

that flows, of we're adding So pretty each I more as could each focused one more as is what just look change quickly on the at we know, quarter. incrementally or clients, some and think businesses, you more way these other. But month

or far. we'll plus we but so whether a go, up think $X quarter quarter, we've I minus per pretty with it billion seen see what pleased so -- And we're ends as being

And there event the isn't a the that quarter that onetime in big results. happened drove

as growth we not RWA that's seeing well. see well. to this good so And do risk big market you're as in And as also

And do risk make paid part trying kind sweat of for sure to what we've and that more there. getting is sheet of balance the and we're the so the exposure that's got well as been we've

to no and time right? happy to X though, of this like add success, come We've And period to a that see under is we're over so And and together. we're do quarters got continue to starting long it's illusions, that, clients. capabilities

next Siefers Piper will from The Sandler. come question Scott of

Was in sort of direct you hoping how maybe, here. with for then guess, earlier I of the if Mike, And more maybe little these moment equity. capital $X of new just billion you you Fed thinking touched in your could the Centerbridge a hoping spend know private could the the remarks, I of RWA all discussing sort into another it also the light for factor some sale proposals. in I maybe agreement mitigation discuss but was color. of specifically, on lending,

the I'll When -- Sure. of mitigation of types thinking some just you you examples things at we're about. give look

that on you collateral haircut that don't finance don't but you haircut want just to have there to And when seem look at floors us. get too implemented. -- technical get sense to technical some requirements securities make I So there's -- because transactions, it

do And or implemented -- as we'll way what adapt -- do get we'll clients require change to they reprice and from if them. so we written, we collateral trades but the we'll

be like know And equity there'll will talked like how of just have for we renewables. we the decide risk there, math have on perspective. to investing much deals. There just gets about I number doesn't We'll do sense in weights hold from this, tax too. a make If of the very a the each it -- things that do -- it's return transactions technical so underlying but be can that, very, others

have probably we'll And less do of to probably those. less so -- we'll do

so sense. you the the portfolios we a through like we'll number go -- to. we're each underlying just make And as don't that And need of make as going of there's things adjustments to

plenty today prepared where about there flexibility we've also got remarks, Now the position in a already. right? buffer we we're Our in capital a as are talked of levels with

so building client real think flexibility sure underlying we're we want handle we -- relationships however sense have like businesses. what make And the to period we it to a long each we businesses do of time. and to makes for the over And of is

walking about serve finding us. But a return from very it's to It's perspective going from it's granular away conversation. and sense ways makes in to ways for So very, be that a about them for necessarily them both not clients.

will it Some of repricing. be

got need You XXX-day to revolvers that will be repriced.

wouldn't the in mid-corporate now them need demand our put got have that, it Look, for been that will a -- of for to bunch the the anyway. solutions that have rule financing over from partnership a Centerbridge. we You've is us kind on to like we balance where of getting it's there's very in get space done make help -- finalized. Switching to time middle-market technical once for whole while likely sheet things with a sense clients they

a an a them having built clients have. can't to having And else, partnership telling direct a them so we problem they instead solve and or Centerbridge may to client to we somebody adviser that remain go help them help of with allows us

Centerbridge help excited a work quiver way I arrow the provide done lot that's with And so And for time. to another it. And gives about we're us solutions in the they we're they're a over us to very thinking team, think and and that high-quality clients. this have team,

grow way. hopefully. it's clients will see hopefully, it same in time, will the so and early, over And it And

then year, hoping NII and certainly maybe shift But get there level to we pressure ultimately still beyond revisit appreciate Okay. thought it, want might later? revisit comments -- pressure. was that I a to this on enough as see guess, opposed pricing would follow-up, on is that or the downward continuing of the asset is NII out to the things I would Or all discussion repricing bit. end there as allow -- settle for And be I on as deposit is a that? mix opportunity the Perfect. balance maybe of as to to sooner the you at kind

we'll Yes. mean see. I

the give the still ourselves out to of think I would and end do this get to view over play think, it far lot too we a ahead mean, I at year, next a until and to there's to and over point. that on I show think number over And get just a be here. on last mistake -- for wait quarters of need for the towards January year I you into we what XXXX. of have real us

a like but for matters but period we've right? it as the a deposits, while, it's it's to to -- of look, It's the long now, still talking right same degree, well. then So And time same the over about pricing. the happen going what's growth, loan -- been mix, with lesser drivers a

question Bank. next of comes The O'Connor Matt Deutsche from

loan box of just comment I of, it And there? is maybe leaning later real I of then, bit? thoughts know only tightening the the into a into time card, elaborate you it's have thoughts about still credit book, you've card as been cycle. leaning right the credit growth. be And I had Can good on guess, really wondering kind credit X% think this of we're and your but to your specifically in

card I'll and Yes. with back start come to credit the broader point.

card refreshed what So we -- done really is in have a since product of almost after And bit quarter the started 'XX, Charlie to really -- refreshed on that still We journey transform started. line. then the fourth the we've do to completely business so back right little more a there.

to of the account And that in good in putting products have you're really new seeing what the -- we you're really actually probably quarter through seeing people so in our best part buy. quite out growth come And want results is quarter, some good time.

it that's seeing starts and a of product good think, with driver, what you're and just And so it, good here. service having the key behind I

non-Wells a first Fargo when there's the -- On Wells majority the with so profile dig new -- Fargo and even you first-time adding when -- seeing we're customers, look the time originations, back but to those the them when at we're on at still really both good. Wells accounts And credit little deeper book. you good look those more credit customers, to Bank side the relative and of new traction more is customers. And there, really customers, are are the bit you

what with see And going But feel being And continue of we're so far. look added seeing to in originations, like terms we'll the if seeing we that's feel we in down. comfortable risk. tighten it to what about them, pockets And we risks good for we're we're so of there.

been the a Just last side on consumer we've the box broadly now we've quarters, for while. said on or tightening it's for kind credit credit, more Whether the X probably X of board card, loans, personal one or in some credit home auto, X lending, the a quarters. had over And tightening. X every bit of been single across incremental it's really them last really the incrementally

And like of sense last would X% or sort in that I that or a still that think doesn't could X% of make taking origination as be of what out so X% modest or sort It's really not It's environment. And of in then of box economic that shifts wholesale the difficult in. approach incremental. operating we're sort on and more the... underlying the

be I upping clear, it's -- risks. it's mean on lower layered boundaries, very and it's the stuff. Just basic and FICO the It's just just to --

kind things just just just types And without of these just you continuing wholesale exits anything that. as -- so smart we're continue or to a changes, you like of tightening. just make do to it's It's same the

of place consumer, real only there's Yes. a consumer years appetite commercial the commercial really than but is And And then outside estate. haven't really the outside changed estate. meaningfully real some few think probably that the we we've over tightened the minor I of other couple tinkering, credit much outside or last -- space years of that,

Can helpful. think amount then linked a the and versus gave was change what costs. clarification I And quarter. That's this the a just the But give absolute on Okay. quarter? what us absolute the ago year level was us severance quarter? you this you

so it's not a Yes, wasn't off lot ago, a year there total. far of the

wasn't So -- lot. a there a small difference, but it's

Okay.

$XXX million? about So

I next in at that will we're the of seeing. go. we that look script attrition we mentioned as Yes. and my sort year that And again, evolve as rates

John Evercore question next of Pancari ISI. will The come from

in real from in comment increase could you us you give or commercial there can underlying were seen Do And increase? you color the X.X% have if of maybe some office there reserve loss think anecdotal the front, loss estate of from the some -- cited well. the you've hands incremental you the CIB with know here? for On seen just reserve XX.X%. have loan loan some cite change reappraisals, in the as to increases revaluations Could terms you what collateral as the I of drivers office the you

cities, right? trades a yet, the bit sure. Yes, -- office all right lot they're their a certain few of and that There's of hard complexion. part in is When aren't happening you in there little now a different

lot information somewhat a price So limited in have still discovery you of in places.

to updated. kind bunch work starting the to we're seeing appraisal scenarios. And so up, different and be evaluate is a to catch of more and we're of could we try -- where they lot And like realistic feeling then underlying it's our doing worth that they're properties of -- each more market do what of are the appraisals in own a

different certainly all at our plays And out we of data embedded up quarter, look conservative. in way. this it's think come the here, at the end to data look and So those this best we do loans it. looked and as at the and we could bringing that's that's points But nonetheless, points up what's look possible range in different we to being we try results. Hopefully, like that of what sort loss as underlying the

losses underlying just to own situations, of time And looking resolution for analysis play but to bring significance coming it any longer maybe life. underlying all significant any than of some some it points, hope are really really we the data would then you -- so the we sales, it's properties. will. stuff limited for to us through each takes faster of at But each -- probably this the for of real these out of could that haven't it takes yet, our the new than And really yet seen and appraisals hope you'd that in

we're seeing around holding Are more multifamily estate, or to more just questions any how you Can given then changes any noteworthy they up are well in reserve And and for comment markets. within right. exposures commercial All some underlying getting that really book? certain supply separately, stress also it. issues there? just and Got you real

some mean Yes. out certain stress it seeing certain places. in the lot. systematic itself this feels time. markets have appear at oversupply We're like might to point. Not portfolio period of that a certainly will real in you see a I in that condos over work not But

ask can I just If it. last one. one Got

all? look anything? risk every occurring the head or head the cuts area contracts with much. risk with any any at the changes yet in pretty you cuts, you Are Or at the in On count business overhaul consultants area count mentioned

the need going we're it reg done. and risk spend towards... that to we're we do the it spend on thing to the against I'd Look, say Yes. we to need whatever continue is get And that No. put going resources to to work only and

that. to clear, be we're head related Just to count like cutting not

with get is on the In we fact, past only The bunch up quarters. which consultants, will we're thing help in given when down probably said, with if work going it's the done that opposite over we and of down go work But resources depending sooner, number where outside the use you quarter. look also a are to. to we've outside goes can or up

our as scope efficiencies, the So point as we just think about for about think not just in future. we is that -- this foreseeable at or

question Erika from of next comes The UBS. Najarian

the on is first revenue side. My question

investment As year a follow-up to Chubak's line I only the come but better banking. this of also numbers questioning, not think trading

guess, everybody revenues made, And you're for capital the higher sort you is, cyclicality of quite also example, surprise about I have of everybody But I if advisory of business. wealth other businesses trading so that also think the you the in help you as it's that hear potentially generally yet to of upside, its us sub-question the investment about revenue obviously, card, markets revenues. going and the get is loud industry versus production? optimized where sense share clear wallet, XXXX? And us about that have a to to about management the levels, are terms mentioned a in we not And could the return XXXX thinking and is investments -- what thinking you to already and think of do

at shot that. a Yes. Well, me take let

answer of where fee-related yes. or And And -- what it's bring on growing side people we that. And on of at driven just in got the is, growth on, quarters I we the they think to within lot stand new on. share, side some that Corporate brought just occur you Investment certainly, think a on our the the overly of couple we're in and reminder, the tracking of last over people grow. bring we've shares on That's grown. -- as of we've these clients by your beneficiaries been We to of people single the that do hope to listen, a -- we're continue and relationship-based brought we on fee-based clear every transactions investments some the some question have term. without to I the and that trading expect, But short targets getting and be side, with whether business, them, businesses, they don't And meaning investments our by we look share, terms of certainly, going whether capabilities. person we in transactions are specific, making, quarter. goals we some the in when it's think our terms when Banking on the our

going issues did. we had front incredibly business that which very and foot our grow. And been than So that we that that taking business. business different actually can business growth basis. in because the to risk and been front expect our reminder, the as banking without by where stabilized -- historically, to the we going on additional consumer to we've difficult our And today we relative risk grow a on did the to this look continue it there share we've be -- was overall I in have. exposures not see treading it we way any the would taking we When organic we're back on a but to are to company and an just share been at -- thing because segment our just we small we've go entire opportunities basically water there business small an overall to do business. Absolutely, -- coming not We're company, in foot there, do, across as we

we've And so there. share where That's as about growth. and we're where said, it's opportunity. Not after, it's mortgage. we're about going growing that not incredibly in talked about about not returns, excited, I excited -- Auto,

if much And see our and we're at like the means, industry look at spend you seeing, what the our selection of by So to don't numbers. spend evidence When we want of it than a by great the shows energized in is way, that out you which the relationships. there look that growth. our for the levels. brand dynamics positive higher with spoke a real and lot put I mean, just the business. Mike impact incredibly about get there, change growth card. We're unless product the look

treaded no as Our also water period wealth products. time. and out We're you out, attracting for long question, pointed of business, new a rolling We're people teams.

Kristin it's businesses the such really our ran for GE. us. little usual feel look bit a the at are So because the a and And back from we lending segment, more middle that we where business things They in we there as for acquired opportunities about strong Lesher that stand-alone customer and it that asset-based is are product market franchise product good there. Even through that Banking Kyle a long here Mary period DuBose product. as to to and MK the we businesses Katherine and Commercial working of or bases. time, entire the diligently of DuBose didn't bring set Wells Under entire those Banking bringing Investment Fargo Hranicky,

opportunities, company historically. we growth, So be I Most on out, in lot have point not a fee-based as just is a I that that opportunities of about just will NII could the broad-based. excited should on. it out it, play of we've we -- we because I'll way, period a time. that focused a but go And by of terms when because just dictated see we over of lot get it

a And early, bank that do anything 'XX that I think you, broadly Mike second parts to totally give more of a all point? one saying hand, expenses. bit on think feel it's my I few Got of it. agree was with are the Because is, I taking is excitement back, you clear, little that Charlie. of optimized. question given company on discussing, inflection like very is an the But And step in and too

count XX% going a the up ROTCE. side go you for it's I the that framework be about down. But other, this getting way, wondering think on company revenue the all the about could as outside think think to wondering And guys is of you if seems in flat, expenses head of fees just other comp. the but that as and really you mentioned about some on consulting then you I'm of On I'm not how momentum the budget and that to asked you and the perhaps get

III Basel you flat the revenue the revenue sustaining some that versus the excited shareholders put balance denominator, need just versus of so expenses obviously that of you to Let's that that terms aside are in be to expenses how seem of do about? about momentum in the analysts momentum context and you asking would the Endgame keep

along Mike, well. make And your comments you come either end in the as Let me way start. at or the just

companies through go So -- think are, exercises which the I not think, even this, through. themselves. we've X we company in efficient, for separate first it And of present the timely the surprising of because not going it's is is like other year the we middle most And story. I've exercise made, described things reductions this and other period, about all all, very as with it's we're as that next we're end peel of back, that because you onion as of

are the of things progress. and if management company. down a told I'm here feel ultimately we and as were clearer about see I more when in And you'd of expense have much the that period count we around go going time, no stood which the us. to so order you we that this sure of the not drive drive the there's that And numbers, way if believed -- head obvious And we count to sit like great you things in that. But than in head team,

going And so to we're really mean we something, when do do say we it.

as that, payoff efficiencies the we're for about it's it. we many and in there working the are And place, we diligently when around sit making more then those. And a talk get, getting to investments separately are when so through team, from we

out, marketing the just we Mike spending that it's quality than feel about, not volumes on the the more modeled business, had the marketing where we to relative whether but that. how past, getting had so pointed money card the we're and underlying we great as in And we're in

it to and at that far, able it to And where doesn't, include efficiencies. everything. as aware It's our guidance tactical transparent out, And investors turns -- you'll of And for. important us. if opportunities to -- of just the But revenue -- aware us we are. where as alignment with hear place have we an the -- side when it's going supporting at you And so and it. overall a out. We're company we'll to make I we that next so to that this incredibly wherever level on have terms we've is we we explain as is unlocking those to in that we of do making what And makes we make. for shareholders we've just finalize we well it's and way of we both reduce is so long it. talk And won't, whatever much value, we process decision the that if ultimately, look to investments include in budget sense, to of to of stays a in sure it expense you basis got we'll we more clear as how need looking tell a But to well expenses like overall, We're would net invest. that investments. this been equation each the you'll saying there. But and Whether of check going It's us are not lost be. us, we where of and come I see will there year, expense out on about explain what why it. and things we it think prove growth been have that can there far, important

will question come Ebrahim from Poonawala of next America. of Bank The

staying through. credit guess, for as look charge-offs I nonaccrual C&I Mike, the we follow-up relatively a on on Just flat, side, you,

your expectation on resilient. where segment? you seeing any by now C&I Fed in terms of bankruptcies the you're impact right customers? -- evolve? certain C&I And talked us felt is to the you seeing the Just spots being a you soft you economy vertical when talk at seeing how rate are of a the look rise within that hikes about Is your Are book, book that or

you're in much aren't right, moving revolvers, check. cases. down through They which much some No. utilization Look, seeing first, pretty in Yes. come are it of I think, and in

to building in invest So people on are. like their are given They less fast rates decisions want inventory where businesses. making may they how be

seeing -- you're their come through for so perspective. that And in is which loan growth, from sensible

you across portfolio, still there still I the look are may margin certainly the compression issues. idiosyncratic be think pockets when good. portfolio, credit you where different seeing or quality the But is across

it. that already? from think your rates the have is comp? felt higher hit Or Got you the And do customers on

they'll rate maybe it But more. them feel I impacted. loan it And Well, they certainly so the longer been high, think far, most I think mean rates certainly, right? right? I felt that have they obviously, of service, they've stay variable

just your Got buybacks. quick one worst the banks you Clearly, lower. the on have excess like actually big are capital, -- stocks reset have outlook question probably near When for very the it. Basel that rare on case visibility Endgame. on you excess lower. And It's when separate capital

do tangible quarter? the of pace SCB did think what in next we quarters of book. of few you How CCAR to buybacks relative near-term terms this over a about outside creating and You're

a go Yes. go get of to -- We're going trying all every I quarter give at you through process we're have we to into a happening. look view mean what's we to on to going pacing. not like

how assessment the seeing, out FDIC clients, First, the there. we are what's have we're potentially of are demand special risks going like what it's coming. support fourth kind we quarter, In to

a there's quarter, -- things going whole whole of each and pacing. there's to through, range on be going And then a we're to decide go so we'll that

from [Operator of RBC. question Our next Gerard Cassidy Instructions] comes

real or I to it Or increase? that that commercial high going you quickly you but been any net of deposits consumer it And Is X with Mike, this deposit can a it's something worth there slowly? than moving that just your within expect -- categories is just surprised gradual investors, says how next expected. said happen, into share as is well more your deposits or with the deposits trend moving higher-yielding is deposit base, could your there it and slower know as all you we've deposits pick are money peers regular us months? whether up in the nonoperational you

I think Gerard, pick have it by different to Yes. apart really you the businesses.

business, in where terms deposits the wealth from that were in of is think it now seeing decline I quite moved they right, and quickly, moderated.

shifting to quarters. of in So last see has it's to substantially sort that slowed quite down the quarter relative that, of the good couple

the got side, deposits less than majority the accounts $XXX,XXX. with of the consumer sit we've that On in

to to so operational accounts for folks. some large a are -- these these And are degree, degree,

funds places And that the are so other day. accounts it there's to into every move of and some portion in operate need those live because going never to people

think they a at there, think And in rates where think I this -- quantitative all I so what's we're we'll and bit territory see, the point they of are right? with And at pace tightening which so I being uncharted got happening.

think I over a and what way period we haven't it be modeled ago, to the for at sure. pace what change. deposit we need see. so pricing certainly it we'll year And we seen prepared of Exactly to move time, for But

-- buffer guys board, done Wells in follow-up, Can that whenever a there? a very as above share you basis since that? that's described capital. has you buffer is really with then on come good are color point job guys and XXX going returning numbers excess come there keep us, on out, And have good. the to comments. Very and you Charlie understand your today, Or planning a any everything in you a it final I

Yes.

-- these that better would a we'll I range. for of to the about get think we end going as bottom probably of sort what targeting. number We haven't for we've exactly what times it'll points of running where Obviously, -- But what decided about XXX a now been we've after rules basis more. is is above look we'll that at is out, talk buffer will shake But so where been that view points, the of III we've the basis But like that while. far, is are Basel least a said implemented. XXX

will it over final closing that speakers now question was to And our remarks. today. your for I turn for

All look care righty. forward much. you talking next thank We Everyone, again to very you now. quarter. Take to

on conference time, At participation parties disconnect. your call. all Thank you this for today's may