Wells Fargo & Company (WFC) 11 Oct 242024 Q3 Earnings call transcript

Welcome, and thank you for joining the Wells Fargo Third Quarter 2024 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.

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

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

I call Charlie. over will the to turn now

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

start with quarter me some Let highlights. third

were and were the with from $X.XX and earnings of ROE $X.X XX.X%, up of solid results share XX.X% all Our ROTCE billion diluted of income, second per net an quarter. of

selling others. making earnings and or our investments of was years in businesses Our X ago as different very strategic we've been profile is it than deemphasizing many

the interest of year, fee-based we last Our faced income and over largely revenue offsetting revenue first sources XX% our diverse, net during the more headwinds year. the have the has months X are grown

infrastructure in size have investing company bank for while to strong risk discipline efficiencies operating the credit our and and heavily maintained complexity. build and appropriate significant a a control driven We of

since and down of X the quarter XXXX. years every XX% declined and for has third Headcount was quarter

in Average the standards quarter focus over down third returns maintained quarter from continued We've year second and demand and the reflecting remains rates were the in declined ago. both the XX expectation loans have loan expenses growing Credit second for economic the to a credit on we Card volume. Our from strong our grow will quarter quarters, and be portfolio commercial uncertainty balances weak, consecutive future. with and as our that lower

balances corporate which us Overall to deposits slightly in second continue declined enabled quarter deposit treasury customer-facing has deposits. from treasury, higher-cost reduce grow, the businesses but our to

reduce rate to pricing to have closely continue recent to will adjustments. response started in the we're make Fed monitoring deposit conditions We cuts, market and and

growth. and improved consumer estate customers our In in expect lower commercial accordingly commercial well, our strong our hold in the in to and real our wage industrial second estate charge-offs allowance consumer to commercial market real credit weak, loan portfolios. with continue businesses, benefiting additional we and from and The up office customers remained Overall, wholesale labor market both Both maintained portfolio strong our continued resilient. have relatively losses performance a coverage. from and remains quarter, businesses commercial office and have

to driven Consumer card actions. other credit-tightening losses reflecting from credit portfolio, lower prior second perform charge-offs of while portfolios our by benefit the in consumer declined our the continue quarter well,

looking not changes for statistics look seen trends changes to delinquency portfolios. continue across our health, have in at consumer consumer when We in but credit meaningful we

And from growth slowed, and debit in pace credit it although year still third has of Both the the ago. up is a were card healthy. spend card quarter

customers, ease deposit strong scale. slowing should interest asset inflation of income starting and all wage stress has those rates inflation We the but segments on continue and of customer to offset where see the partially to lower benefits growth. especially end more certain in and to lower employment pronounced The be levels helpful with

position since from earnings year capital our XX% Shareholders decline as third XX.X%, billion XXXX, we $X.X in continue quarter, our in XX% quarter up are of benefiting per ago, a billion from benefited the X by to shares from and year, the of average actions the stock and ratio of return common We to share XX% we increased from same in dividend period. and quarter of common the of last over our over with our excess management common XX%. meaningfully of stock up strong quarter $XX.X Our repurchased this capital during capital the CETX stock XX% up diluted common shareholders. the over third quarters remains have significant amounts first

on strategic update control priority. our risk starting top remains which Now let work, priorities, and our with you me our

We office recent the forward have entered formal the to control we urgency of complete with and agreement the required continue the we believe required. and team, with to right includes of That culture, currency. move is what confidence of sense under the discipline the that's work

We continuing on to other priorities. our are also execute strategic

and which a continue quarter, build our co-branded X travel rewards discounts, unique credit program enhanced provide new our credit we card customers cards launched past We perks rewards. this to accelerated with business, and instant with Expedia,

to accounts new credit continue set nearly X customers card credit year. broader customers Wells this Our well of with existing to card received be and both Fargo new million products by

agreement we month, After Volkswagen preferred of The have for United several Volkswagen in no the as well. and we brands a financing States. purchase be Services. grown consecutive to X quarters, the in started has in half Starting our first multiyear co-branded increase announced of we making to for now check believe Audi card Consumer, been share Small and year, our provider with debit segment investments we've Last will starting accounts Financial and Business years net next growth, growth. Banking are the generate

or Mobile active year. last increased X% X.X by users from million

year. of We also quarters over have refurbished our in first this are investing the during branches X and branches XXX

In coverage and help our key on to hires hire groups momentum and build We several our business. on leaders product proven the Investment bank. important to we us continue focused corporate grow made investment in Banking,

is Banking, on continue that Vice who also expand of We us hired grow focused new and franchise. a Corporate helping Chair to

leaders We to benefit reporting Wells attract will Bridget to how also global experienced transformations Bridget I've areas. technology of third financial in worked Fargo. firsthand and experience the quarter, other as me. Fargo deep with Technology joined in Engle And leading continue know large-scale of Wells large in her past institutions Head the

on corporate they our aren't, focusing Our that strategic are selling and or include priorities consumer when clients them. also core businesses to and shrinking

the agreement third servicing had our we this third-party of the we entered to announced segment of mortgage non-agency servicing effort, sell quarter, part during business. commercial As a into definitive

We on loans sheet. our continue and agency will servicing loans held balance

resilient overall, in but the Company demand labor with boosting for supporting and ahead, the inflation consumer spending. slowing commercial and market, to slowing strong remains sheets Looking a income economy lending. balance consumption are investment strong, and U.S. economy both contributing

variety returns We and and while be for prepared we'll grow environments continue downside. to desire protecting of to a economic the increase balance our

We I done Fargo the in capable to of and the most transform great franchises who company. enviable want at for top results. with thank of have industry everyone Wells everything delivering to I worked they've one a strong this management team

call the turn to over now will Mike. I

Thank you, Charlie, good and morning, everyone.

quarter in again Net diluted the the good well in was with across results controlled. pleased per saw We quarter. were common the or for growth third are $X.X third income $X.XX income and most noninterest We billion, share. expenses businesses

quarter, the portfolio. of took reposition we to During the securities portion the a opportunity investment

approximately of X little $XX per Our sale billion $XXX period This points securities. $X.XX a years. net higher of of proceeds over we sale approximately earn-back The the results basis on repositioning included the or losses million yields the into than reinvestment securities with securities XXX sold. included this share the of debt securities for estimated is of and

impact the share per $X.XX. securities earnings investment been of the Without have would repositioning, portfolio

results you compared When third discrete year looking $X.XX last ago, our benefits. remind or of I'd million at year per our $XXX share a results that tax included quarter with

Turning on and continued deposits quarter. and Investment higher-yielding decline migration This decelerated. also Wealth the last quarter Net the million interest or lowest third million slow income due that of income sweep and to $XXX pricing $XXX was Management Slide on in from deposit this and X. since advisory second was the increased highlighted interest products to increases pace of we brokerage to linked quarter net accounts customer as pricing the quarter's X% deposit to call. decline declined XXXX

Deposit up by with driven points third were quarter, the pricing the deposits and costs basis sweep this X of accounts. in approximately increase on advisory brokerage increase half

in increase lower September, the continue responded to Commercial and in rates deposits increase accounts, than market sweep rates aligned rate costs point the line basis and were we with on the quarter. our deposit XX in point cuts. the offers The on Fed cut as Federal are reduced rise quickly XX third will Reserve consumer Reserve second promotional businesses, just move to money has funds in In pricing rate pricing when rising. brokerage response which it basis reductions, did the advisory rate quarter was first to in in to Federal have deposit quarter deposit

conditions competitive deposit trends, and on monitoring adjust and tenor continuously pricing, de-balance based and are We observations. our we'll requirements

both X. by operating the other specific Slide card I'll year loan when our highlight loans in declines from and growth more most discussing than were ago, Average with results. We in continued deposits offset down second and highlight balances quarter loans on segment credit categories. a drivers

ago treasury billion year growth in customer an the was reduce $XX.X Average customer $X.X deposits. deposits quarter. were higher-cost higher-cost in from deposits, driven deposits $XX.X billion $X.X while billion quarter. a grew enabled down the our to second and corporate treasury us deposits Average This from increased decline billion in deposits by reduction corporate second

a income equal, deposits in interest corporate current a is the net environment. positive else treasury All reduction for in

on XX% income year had from Slide a Turning up strong to We income in noninterest noninterest ago. X. growth

highlighted, as of including conditions. businesses benefits income fees our including we've in noninterest investment this as and across categories, the advisory, most the increases deposit-related net from growth year-over-year activities, As our grew many well largest in been trading investment banking. Charlie We of double-digit investments making activities, reflects gains fee-generating market

investments. We when highlight our our discussing income the operating also benefited noninterest growth drivers venture specific from in improved capital segment will results of results. I

and declines Turning year on initiatives by predominantly of were from higher Wealth ago. with reduce equipment year. Noninterest year the salaries in and declined had ago These professional higher The outside both partially losses expense. the compared in declined from technology our and services revenue-related impact efficiency offset Slide a Operating helps higher year as of quarter a X. expense well levels second expenses Investment ago. to we half the and Management as first expense compensation from and a and this

XX Net of to XX was charge-offs The to commercial quarter loans from second quarter points quality by second the loan credit lower commercial from points in Slide losses of lower million Turning $XXX net decreased decline to both basis average and basis the loans. real on our portfolios. down commercial were X. which points estate charge-offs, basis X loan with average driven industrial and

estate losses losses million, real in quarter lower the X% our lumpy charge-offs. the fundamentals work portfolio by loan and we $XXX lower as the in losses net remained to commercial quarter quarter, driven basis nonaccruals XX assets in decreased Nonperforming from real clients. real card While $XX office nonaccrual to the estate declined Consumer points estate included second and of we commercial charge-offs real the loans. declined credit estate to continue be portfolio. loan market office still Commercial second paydowns million loans, by driven net expect commercial average weak, with which office declined in third actively

to X. Moving Slide

Our was balances. loans by down card an increase modest driven asset loans $XX credit million most from for losses in higher with largely classes, second the allowance credit for across quarter offset by for allowance declines

Our within coverage relatively year, over trends has allowance our loans expectations. for credit the remain past stable been as

stable Our and also investment quarter office commercial corporate since third for estate has allowance relatively our XX% at approximately portfolio and of XXXX. coverage real banking been

to liquidity capital Turning Slide on XX.

a CETX minimum remains XX.X% became capital points strong, plus lower our buffers to included new be CETX interest from our regulatory to which of of fourth in Our income X.X%, our in The the due XX higher mortgage-backed security the spreads. continued ratio quarter and accumulated and comprehensive from CETX position tighter of benefit ratio other quarter. basis rates effective above second increase well

quarters declined during With billion higher a quarter, a year common average the than and period this stock repurchases from in third same billion of first repurchased year share of were the year X outstanding the diluted shares ago, $X our the $X.X ago. X%

impact by segment ago, our to and higher-yielding of driven Consumer Slide declined operating results, customers and lower deposit Small Consumer Lending year a with starting Turning Business and X% migrating from Banking products. balances XX. Banking the deposit revenue on to

in year offset Auto slow. of lower a increase banking Lending more decline pace in was loans interest mortgage loan fee from was XX% a the compression. to year from a income. lower The Credit by personal spread revenue declined fees. and higher by However, ago ago, migration spread driven loan also revenue revenue net from driven compression. revenue higher as and balances year X% year slight Card from continued balances driven decreased ago a Home revenue ago by continued The than lower loan lending

Turning declined ago, we've the the reflecting but key grew X% XX% XX. on business the Slide quarter. to Retail some made business from originations drivers progress on year from Home a second simplifying mortgage Lending

we Since service year previous ago. from a volume was the we second of our the from reducing XX% quarter. our We at The the third Debit ago, credit XX% progress by by billion to ago, and Origination a grew pre-pandemic new period-end loan of X% were reduced from Home a stable Payment loan year-over-year Lending credit increased was card a with lower third-party our and spending last year The actions. amount year all levels. but quarter $X.X above XX% announced or Auto driven in was spending strategy modestly except card a tightening remained year continued up than from rates XX%. categories balances business. servicing in down also XX% to early with ago headcount portfolio growth year fuel. mortgage of down continue decline year, ago, size make size on from

partially Market Turning Banking XX. ago, Middle by year in growth Commercial was costs, Slide offset from net to a lower management by revenue on interest income, down Banking results higher X% treasury driven reflecting fees. deposit

weak income, Asset-based equity driven loan leasing and with results from year high year inventory a interest decreased uncertainty, borrowing improved as Loan by from lending in remain -- partially by ago. and investments. third lower a about remained demand lease the offset revenue clients X% due net expenditures quarter were balances ago, in investing our economic income capital and X% Average down cautious compared costs. many buildup from to

Banking Slide year X% XX. increased loan Markets down costs impact the loan ago, revenue partially Turning lower of X% X% ago, from a deposit was real higher capital reflecting loans markets driven driven by performance strong clients revenue and rates, to Corporate and from decreased and year Investment partially lower offset balances. balances, from Banking X% municipals, on revenue year lower estate higher revenue. access Commercial balances loan products continue continued from by a by capital our in revenue a ago, real driven portfolio banking year funding. lower by ago, structured reductions offset declined and and by commercial in equities. a to as Average markets estate

by partially sweep Management net increased lower to brokerage transaction revenue Slide higher with in On increased by Investment and on ago Wealth increased due driven XX, deposits year driven by offset brokerage pricing advisory as fees activity, the compared as accounts. income, well asset market X% a based valuations higher interest

the at valuations up reminder, majority of fourth are the from of ago of a the reflect so quarter assets results a quarter, from X, priced X. October As and July year beginning market as were which will both advisory

portfolio, securities XX the the by debt corporate declined investments. on to results. capital improved results repositioning of year net venture by related partially investment a Slide losses our Revenue securities from driven highlights ago our offset

in believe are trough. XX. for interest which X% be XXXX the third Turning to of in fourth line and on to currently year the XXXX, quarter to expense income expectation, Based our net approximately with interest on income income XXXX XXXX quarter we this compared an net with outlook noninterest interest We close XXXX. expect Slide we decline would net imply roughly full

of influenced However, variety exactly mix of count. pace when Fed be and the factors, by deposit and pricing rate a securities will day including changes, the

changed which from Turning to quarter. noninterest XXXX has expenses. last expense expect not We $XX still billion, approximately be full to our guidance year

from loss returns. the million We results even securities results As of investment double-digit across third growth growth our summary, with quarter, the matters achieved with fourth year transform demonstrated have to in losses In portfolio, to had impact customer a Fargo grew progress we during litigation, most remediation Wells and noninterest the the this start income businesses. remainder and the our a that are making operating could we by regulatory ago, reposition improve reminder, which will year. we benefit XX% solid We $XXX which in the took to we the outstanding quarter.

While this we better and were income, than diversify our interest drive in revenue made fee decline net offset expected investments evident. growth by was in our businesses an the in noninterest have income income more

to continue expenses for make consecutive ago down initiatives from down our progress and We efficiency with headcount year on quarters. a XX

which and shareholders credit $XX capital enabled position year Our return than results over more repurchases. us dividends through to past share reflected also and strong discipline our to stock, common has billion the

are while are we with additional businesses continue opportunity results. about even throughout more And our the to we've all we we have improve made, excited progress the pleased the to

now will take We questions. your

The Scott will Siefers Instructions] come Sandler. question Piper from of first [Operator

Mike, I start was to hoping NII. with

way your the mentioned for inflect back kind a of I just visibly? from third be to believe please, that as you So the to as me, with see close -- the of you the was well main quarter begin more to upward quarter take number what unpack swing what hoping Wells And of is bit fourth more here swing your the prepared up either might back believe you flattish factors could sort as -- it it pardon trough. end you remarks I toward should level.

question. the appreciate I Scott. Yes,

about the of it's quarters. been same mean, for now last talking number drivers the I So we've

in term. to mix is the factor those near deposits So going of obviously, be a and big the deposits

NIB we our impacted that were I trend sort IV. is see as of behaving and there well. that trend you a will NIVs though, note, think in the switch that can I product pretty deposits did that conversion in

So noninterest-bearing third percentage if deposits you take that of to the the quarter. is effectively out, flat

be case. now first a that's so where that while the And in the we've seen time

so so big the down rates out Obviously, pricing so be sort thought to that's play longer period. as behaving terms or And factors we of participating one bit going of see we'll back trend time in the little in that far, we come for a But factor. a of way thought. have that to way or is the deposit good

said deposits what we've we rate-sensitive as well look see and promo we come the If we continue adjusted on as in my on pretty you exactly move I to at, the remarks, the rates rates adjust those will thought are consumer deposits. for exactly as as what would rates we're seeing commercial interest side, CDs, already betas as most high side are started as to on the down, thought those

then haven't any first And be but we period. this you in little a you will look Obviously, growth, little quarter, for. the bit loan sort things a you and to weren't that's bit of bit the a weeds, factor longer So little day look as expecting kind over at -- of working. seen that, is time that as adjust but counts a do but of have we sort

on bounce around like could based little bit quarter you that as So well. the factors a on depending

a as touched I on well. loan then Okay. is that. Perfect. touch And demand factor And you you appreciate then --

borne reserved there, please. election. I additional to thoughts been borrow out get the getting on correct. year, the backdrop hopefully, clarity issues to the pretty and we're some has which just on like be guess overall closer throughout that of I unresolved regarding possible, beginning You we're all to outlook Maybe if guess, been to some cost have some the

things very with thinking of I about I mean hit being you borrowing. No, are couple teams a think conversations -- still clients, think Yes. having But the people on about. that I people our based on the are are prudent

driving XX backdrop, by need to if to people force. The like uncertainty the confidence reduction will more little case helpful, they'll come that itself the down I think factor you down a of election, as see I I landing around come that think past a think that's drive more point see rates get not uncertainty just materialize, the you is election, the borrow around bit. but will people not, or that basis the meaningfully the macro a soft the baseline get

together give inventories making I capital building they're those just expenditures off more on about further either and clients -- help think they're now. all come things will or that holding confidence

of those And you as there, little year, think to get the got together. get a to goes. more of we'll the as things you as you'll I few bit start So see we to say, closer see and come end visibility a it

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

addressed XXXX year-over-year; flat I enough to trend fee what guess it and opening not you've we of see two there remarks shareholder assume grow flat personnel forward? in question, appreciate you're think to look at where I but savings without in continue change is looking said, all doing, Charlie these you're expenses. stuff in flat this big do given the a are categories little as revenues first platform, fair meaningful that I Slide seeing noncomp we this today. your bit And talking But the to X, X.X% a some a reinvest lining and X.X% expenses around his picture, perspective, From about year-over-year.

said is it be because past, -- to to continue And job got good risk our in And I what think share, to the continue well guess next regulatory balance something we'll but to both investing in and need which a is that we thinking. get want share we've we've we this ahead whatever in talk to in we've don't just done of of the specifics going company, balancing quarter, we'll get forward XXXX, we to that's historically, efficiencies that as and about spend I'll repeat it. for when ourselves. future. we we'll space also meaningful are Charlie. the we think as there we Graham, spending just the investing and around

one I'll maybe thing. point other out Ebrahim, just And

at look go like obviously, that As personnel that. expense, there's things underneath lots you

efficiency seeing business. wealth are mostly revenue-related we So And expense, and management through by on offset that's items. salaries the and come other investment in the

And a pointed good coming it continues headcount is that so came again think through right? down underneath we but efficiency around, that I come So that's the down, out may in the bounce as you see probably quarter. headcount thing, that really both to

So we're part all on agenda continuing to execute that efficiency as other the expenses. well as of nonpersonnel the

don't But I'll own as We again, about about thinking I opportunities -- when efficiency invest. need just think process finish also just our I and but XXXX to think changed opportunities, has and our to we share. go internal through we

That's helpful. bond and I'm points declined balance basis And book one September, quick, maybe $XX there's have fourth missed go just restructuring of an Mike, I It's sheet, asset-sensitive maybe to would NII XX cut. it we quarter have if about assumed NII. would sorry help. I million on

forward? then why restructuring going is there we down I XX not Just room despite look for as additional basis more the points? And

of happening the a look, mean, that all the I it's deposits. mix what's around of confluence sort just come Yes. with right factors together of

a Our obviously bit is mix than different others. little

of seen into I deposit you continue up. also normal help the as across think then we fourth took got And quarter the reprice roll. but maturities assets repositioning, to as got obviously, pricing we've well. the base look We've we've actions as the reinvestment just kind

you right horizon let do as do, we'll we've always repositioning, portfolio sort at now, to and and at but continue on think it I for of we'll we know continue if we'll it. a on look repositioning the more. while, to the we to decide been Nothing look

need curve. thing And think at the you to add different movement, you rate when only look I'd along about the the is just points

better, And the I steeper Got assume. it. the

of from question come Erika Najarian next will UBS. The

us what based as understanding, after next submit first to question review work cap your you happens your asset Fed the relates stream? to My third-party you could remind is, on it the

I'll very specific what so timing where we work, way consent we to is. it and are the because relative talk about the Well, just generally don't answer orders anything

do the to We you feedback with a very execute look plan. give We submit we're develop then it is a plan. us to go some they out done to And work the but of done, find through generally to the to plan The done submission. out formal that a you need in after won't, about a way, when they have whatever when plan. haven't has do decision they've that at consent And we then the it satisfaction. whether processes and on submission We is about done to detailed get the required it. them. that find they work along regulators work make that got on then been series And order. review the that's And their work, we the need on and and we

it. Got

June? is framing And buyback quarter. over get expect opportunity is to next as -- that shares about billion the SCB I'm the quarters? follow-up, think this back pace a about few Okay. of trying you $X.X we third in the bought just just in the Mike, should until we your next

reg don't we basis stand perspective, think pace. quarter-to-quarter about But minimum really at if Erika, points where we're Yes, XXX from over of new a we buffers I X.X%. talk plus capital look you the

going we'll exact far generate But give as to to top capital we to back back go. that and billion so look of that risks were then out we buy we more continuing us. of go. to to opportunities excess we look we that happy earnings this So we We're And pacing normal capital. of is to the able of are $XX.X there, year-to-date. then something on go we're that's And shareholders the decide as for sort at mind into capital, help through clients. obviously, through go plenty at we the We excess go have with process every support environment sort quarter through the

Morgan The next question will come from Betsy of Stanley. Graseck

are if to would it -- first say is doing asset just asset cap asset in asset But And do. -- you the to you opportunities times, terms you keeping past in and well, lean be it wrong. want from What in anywhere cap removed, today want the if not to that lean So Because is question, right? when I assume of to there understand -- it's you removed the anything you in for want where should when were get understand the heard to growth? would the several removed. just cap I that's same I maybe that I've does

start Sure. then I if you change with either I'll amplify anything can and say. Mike, you or disagree

have see and is what is we about liabilities the about the and have we most our what today talked think the places around. bit assets careful we little a I where been

significant we to because be been their consumer relative wholesale elsewhere, obviously, it certainly both to when cash the that as And deposits needs borrowing very brings On there's room want places the we've had where come as careful with customers in, to serve got to make bringing it. deposits. deposits we've deposit well not on sure side, about commercial

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O'Connor with Bank. The next question will come from Deutsche Matt

so it was and in outcome that, the And mean forward? hoping about value anything in also disclosure color anti-money if and I some expenses that might going just we what laundering XX-Q investigation could around could on Wondering mindful the and it? the then be you was you your then was to talk else KYC, add XX-Q public. should it regulatory and there guys given just of some

formal and something entered the get to out And take put other that agreement work going OCC. into when we things mean we the find we the seriously. we We're extremely I like with done. them find, Yes. they

got it. the said necessary. say, there all spend pieces, we to the whatever as see my built, and I've would different think things issues I'd is I confidence that a we're we've discussed. get we remarks, that this which that we've and the we don't work to think required And it, need ability the I At sit also mention that about As talk cost this, the that, is and to do say, point, significant around have got would is work, is going as to I in relative consent meaningfully we've of prepared it we've are about two control-related identify the amount our we of spend in just $XX said look billion anything on. to working base, been that to we've the order, expense which ability as beyond at having I see something like

as to already. we're so think money that we're what's And significant what necessary order in of a relative we spending, spending about amount

are of are to a around. because industry-wide banks is broad... but just Okay. their of for comment be kind And able is track moving policing thing the kind responsible or keeping money Wells customers, like it you this all could seems then kind a area an that the of It focus you not specific really know of

we going for and what ourselves -- know. speak speak we We're not to

that, right not or is Beyond appropriate.

David Long question will from next The Raymond of come James.

opinion I without just mechanics when of be consent order the the insight providing may being can up you cap side. as any wanted with your to can follow off. cap the removed regulatory removed of the without you asset think remind asset But in completely? come the it to us And

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really it So is digestible. very

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the their what's those that's out so things to laid interpret way going in in relative company bailiwick. the the is on and will certainly things, Fed And

to As done, good feel do I've shown can our we've get the given work done, focused said, getting we're on very about it that here. what and ability we

appreciate the And I had basis? and line, on create that in line some was billion trading What some gains. quarter can $X it. puts trading are that you've per over Charlie, related volatility been a of it. to in takes quarter-to-quarter question gains Got other there and then putting I the the up

I'll Yes, it's volatility the a in factor. Michael, Obviously, market that. big take

kind in. operate the market conditions it's So we that of

think seats. in improve really then methodically the and You you generally right I sure as the that line the right focused there And we've been holiday make though as seasonality capabilities, item is the have to some continuing just season. got to quarter fourth the in well get third people to we where

that of sure happens we'll make based that can the going there, to to that, pleased we performance together e-trading we've to now forward And continue pretty our that to good clients. something we've X probably strung results conditions we're and our is bit, around it's quite our of good move but just continue focus capabilities. all -- market on a improve technology but seeing We of quarters look capabilities and forward. to serve been have right And

come Pancari John The from next question of Evercore. will

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all Very done. little in the It's third quarter.

in it's quarter. the fourth for run So the rate

have then Okay. that sized mean NII what you would And for it quarter? and impact up for the fourth

we It's where $XX in the We picked that. remarks my repositioning. of in did on about XXX -- up basis points about billion

model. to but it's you easy mean, count I obviously, other go day adjust, to pretty things to and So got

Right.

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Just what of underlying terms seeing drivers? there you're in

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appreciate No, helpful, it you details there. the walking Mike. is I through

Gerard final of the RBC question And Capital Markets. will Cassidy from come

as the of go here? is Can less share months property or XX were the markets when portfolio. may they any you aren't maybe in severe with down you it details on as little estate guys credit ago. office X Can quality. looks into indicators be market a color the stabilization sitting on Or getting It -- maybe us like commercial real further months worse? Any ago the

weakness question interesting talk think depends to properties. we they are that better I Meaning, actually are well little aren't an It's more to for answer the there's ask you properties there the you because and -- actually contagion it. of of extent, looking kind because people things on happening, it -- same depends take Maybe look getting out is is better, at to it how when how some question. more of who it's but impacting deals but there. a I'll actually leased, you think on and it bit fairly what's

just see properties through demand a more see bit and So significant But because little of cycle. kind as you the revaluation of you move of these on that. what that's is going of the supply

things are impacted. big we changes our out, there getting all. play that at upon but kind seeing aren't So look actually being is more as based what worse at expected of properties there We're it, material picture are we because

the it's it period. seen versus what or your you've on in whether So prior expectations depends

Yes. one piece. And other Gerard, I add would just

office kind But older across U.S. good -- same same buildings, It's it's kind for the down said, the doing now the we renovated have it's buildings had, locations we space as are the buildings we're been -- new where So the expectations consistent seeing a of which in of fine. trend pretty within pretty on Charlie were we've while. pretty

take not what that's continue of period out to that And over clients a like it's out to -- take range to We going to like so we thought. It and to within over through will something play and X And a going quarter play or feel what it. over. over, of we playing with it's as This here. can going of said that I largely of will to while But as and appropriate allowance good more time. be expect out. kind we work feel is for coverage we our ratio. it's kind longer see we're for a really best about than And have

early, doing addressed cut costs what Fed consumers terms since I about only in the course, gosh, comments of with obviously, with then the over levered? second And the it's ratio but funds is less you Mike, customers your room -- not deposit curve question, you high, remarks, with as and and as The know of the in being Very on seeing calling behaving again, the lower know, they're as it's be than expected loan-to-deposit is rates? deposit rate that guys, concerned as to prepared their Fed the been not there lower more of any for very deposits you good. for your corporate month to behavior, And being And forward part more. a and you I costs. -- are have

look, better much is answer the the significant short that Yes. all seen last any weeks. trend, across still any now in part And shift of on not that is deposits businesses the less since migration Those to higher-yielding alternatives. we've have true. We've I'd good The this seen say, not that though, changed X point. seeing are of stabilization trends way at year-ish businesses. in a we're the the side behavior seen we for in has of the

approach deposit at think brought and the pricing on look sort consistent loan side, feel of very side the of equation that you the we have up, as to really I it's you been think over both a other important continue -- think and well, to that's period that's kind the that's I And where credit underwriting time, to doing. approach. us we've and of served to what long of going I be a

I we'll do worked have. And again, we client far, make side, by right well client relationships deposit for the product and the to us. -- and on that's the out product -- so On think the decisions we'll think are I think by -- based we decisions

that's the we're to approach take. So continue to going

for everyone joining thank next time. talk we you and we'll to us, Okay,

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