Northern Trust (NTRS) 17 Oct 182018 Q3 Earnings call transcript

Good day everyone and welcome to the Northern Trust Corporation Third Quarter 2018 Earnings Conference Call. Today’s call is being recorded. At this time, I would like to turn the call over to the Director of Investor Relations, Mark Bette for opening remarks and introductions. Please go ahead.

Thank you, Todd. welcome Trust and XXXX third everyone conference. earnings morning to Corporation’s Northern quarter Good

our morning our call our on me Joining this Officer Kelly team. Chief are and Lernihan Relations from Investor Financial Bowman, Biff

today’s we This will information those review at press on and Northern replay use morning, northerntrust.com. our XX. our earnings call. will they in Also you provided call third rebroadcast e-mail October conference available on being XX presentation, after November the the both you report webcast northerntrust.com. of release Trust did receive on this financial not For our call call disclaims find of live guide that as on authorized available earnings through quarter is will are via which any be The trends today. continuing only our quarterly website this of who this to accuracy our website, website

filed today’s factors Statement, subject information is and the Now may of statements, expectations Harbor detailed estimates those differ reports these and affect you are uncertainties results. Securities that for to for many events realization statements results and could our of current expressed Commission about include predict. read XXXX with to the XX-K Actual actual Safe Annual other Form say future what those and course risks our difficult implied or Exchange to urge I that results. Report on or conference are Trust materially could of forward-looking because by future call which Northern results during from we

Thank allow and to related again query many for us opportunity to as enable follow-up. possible ask time move your through joining today’s During This question one initial permits. queue as limit and questions please as to the you people today. the question-and-answer one us will session,

Biff call turn to Bowman. me Let the over

everyone. morning, Good

quarterly Earnings share earnings Mark third income Starting Page we our morning, review XXXX quarter and our reported join $XXX.X $X.XX X equity common earnings presentation, to quarter on you per in million. on XX.X%. were me conference was call. of this Let welcoming return net our third of

second operating impairment Act. As million quarter’s million quarter $X.X IRS a this noted and of $X.X other expenses, in investment within benefit community recorded with to charges respect Tax severance-related page earnings current Job million on release, with income, the development results $X.X Cuts to within relating of our the and tax guidance issued associated adjustments the included restructuring

during macro MSCI markets favorable XXX up quarter. EAFE our year-over-year increasing average with value daily us detail, a also S&P would our impacting results up business was EAFE On basis, quarter. Also EAFE the S&P Indices a S&P the going indices declined on factors the on XXX both X.X% X.X% XXX Before and on in the market the increased had of sequential I Equity favorable markets X.X%. X.X%, a were X.X%. and XX.X% sequential and while respectively. up basis, the some during through to with a End-of-period the like comment basis on impact the

to compared certain the a year. The in quarter down revenues you and X.X%. and the of and Bank The rate of up as the prior to Currency some currencies EAFE to and quarter, recall, interest pricing and declined therefore U.S. and versus U.S. the of will dollar euro lagged during and expense. expenses. favorable to an pound continued against on impact the British unfavorable also client British sequentially. the S&P England. euro impact X% impact increase and The the by Short-term pound the fees quarter had declines based respectively U.S. translation our rates well Reserve and the dollar for was the driven euro influenced was as ended X.X%, sequential and hike dollar the Federal year-over-year As of while assets the up X% non-U.S. pound from the rates for a also are revenue XXX prior

to the year-over-year. was Net increased third X and X% of The quarter. Let’s for on year a and Expenses Page credit sequential and Year-over-year increased non-interest million last quarter, up compared compared the of review X% down from financial up $X prior income interest with equity down XX.X% comparison, credit prior non-interest ago, $X at X% the Net credit was from Return X revenue the income X% to X of net move income X% In year ago. highlights revenue from the increased up income income XX.X% XX%. X% million in provision quarter. losses declined year. declined common X% XX.X% was quarter. but for to down interest higher Expenses sequentially. XX% net X%. with income average a the

increased on Asset fund ago trillion X% X compared increased UBS driven and the year sequential Management’s XX% of Assets half growth custody basis. a units under and in the Luxembourg year-over-year to and of of acquisition $XX.X Approximately administration was administration by Switzerland.

market was of moves Assets in partially unfavorable markets and by partially to moves rates. exchange increased year and X% trillion to compared were X by up primarily in The new sequential growth X% favorable rates. growth business driven sequential by a due ago was currency $X.X under year-over-year impacts currency exchange offset basis. offset The favorable on custody unfavorable

related trillion, was increase markets, on $X.X year-over-year were a while and collateral lending sequential unfavorable moves basis. period rate. end favorable year-over-year as by to new partially sequential X% exchange lower of management securities currency in markets up The up levels favorable flows driven as X% by well and business offset was increase under primarily Assets the

revenue look Let’s results at in detail X. starting with the greater on Page

was sequentially. quarter year last X% a $X.X Third down taxable basis billion, X% on up equivalent revenue and fully from

X% our up slightly down and $XXX prior from revenue Excluding of the up represent the last component million year-over-year was fees were quarter. investment and X% and largest the approximately acquisition revenue in servicing Trust from year. quarter, third other the

Excluding the were a fees X% UBS on year-over-year up approximately acquisition, basis.

from detail agreements to swap Class lower Visa a charges. service and the will credit decline existing related non-interest income security year-over-year exchange previously year-over-year year-over-year banking Net swap in as client more lower X discuss income $XX function $XX was lower impairment down to income, treasury and in down and in B shares relating volumes. million Foreign and well lower hedge which third X% commissions the was banking by credit up down impairment, sequentially. to as sequential was and The increase year-over-year activity due in our treasury exchange fees common also management quarter, to sequential and the due down the X% interest XX% was higher was mentioned as third and the driven trading as in and lower XX% quarter, was ago the million foreign increased Other well I valuation year lower to primarily $XXX valuations The primarily activity, compared The Visa service was third by charges. swap XX% client decline quarter, income related The investment sequentially. investment impacts the trading impacted net XX% decline million of later sequentially. volumes. related the and increasing decline

of look the investment at fees components trust on and Let’s our Page X.

year-over-year, one sequential fees translation quarter, the up compared administration in and fee of one business was and of slowing sequentially. fund $XXX C&IS fees, corporate the the Custody was to and The growth a down point. The services half due by the acquisition. currency to the up fees. Approximately year the growth million of UBS basis. but third related XX% totaled C&IS UBS of down in changes X% does on fees million, our For include X% a year-over-year half prior approximately year-over-year impact rates acquisition largest institutional component reduced X% $XXX

the by were primarily custody Excluding impact offset new these partially decline of was prior fees The by administration X% to markets. and fees was by year. and approximately due translation volumes, driven offset lower year-over-year the transaction business impact currency up growth and sequential favorable favorable to currency of translation. markets, The fund partially the unfavorable compared

custody attributable UBS year-over-year of C&IS and at were XX% $XX.X up the year-over-year end, and clients fund under was administration acquisition. Assets the trillion X% up half Approximately administration growth to for quarter sequentially.

clients. the by both factor impacting unfavorable offset certain to made increases fees in reflect to and due change sequential and of markets currency business, gross foreign custody prior unfavorable sequentially. The by partially due favorable of C&IS and to our in the into were offset to Excluding in management with in partially markets gross X% and were month rates. X% third down fees. the presentation due translation. primarily markets acquisition and up quarter C&IS market adjustments primarily Sequentially, certain growth movements change was quarter’s and Recall a administration new decline a values was fee lag Investment to presentation outflows lag quarter year-over-year quarter markets revenue year-over-year revenue lagged year-over-year for exchange fund clients. favorable for the $XXX benefit million that primarily the The the

in This driving with the sequentially. year-over-year for XX% up in $XXX in year-over-year in quarter. C&IS season increased sub-advisor at spreads. services by by C&IS reflects was is fees fees. in the associated exchange lending pattern but as were with levels third outside offset new lower in offset with across ancillary when by quarter-end of of end collateral were associated the favorable Securities million $XXX lower The XX% as movements year-over-year lending collateral was fees averaged dividend down market lower sub-advisor a wider the partially period in business reflects market the quarter impacts declined our $XX level offering. sub-advisor sub-advisor billion quarters third by rates. lower was spreads of sequential income million second sequential growth. a fees quarter, and net sequentially. growth unfavorable were billion, X% partially and Average year. Assets The X% ancillary up quarter, services. fees basis, were Securities offset fees and partially up of The down X% with services the On driven season were and The associated other decline year-over-year with an as $XXX $XX year-over-year, clients category. under management Other but year-over-year higher drivers also X% and quarter each by higher driven service fees decline volumes the Favorable lower billion services. up international associated collateral sequentially. lending has discontinued foreign fees typical the sequentially. X% the X% year-over-year, The expense decline higher risk consistent prior such was impacts, performance analytics securities well the The we three sequential decline in

new $XXX were sequentially. quarter, fees in servicing management, other and growth a and increased Office year-over-year volumes. and sequentially. The partially markets. investment the X% Trust, by new X% reflects the offset up business. third in million Within X% Management year-over-year Wealth business our performance fees wealth year-over-year was Family were favorable Sequential to and Moving business up business Global by and flat favorable markets transaction driven decline

Within business. favorable Sequential performance markets, year-over-year the fees the from fees. the business higher as of driven growth new standard new by revenue benefited adoption from higher and favorable new was the markets recognition as regions, well service-related resulting and

Assets X% year-over-year up management sequentially. at were up clients $XXX for under X% quarter-end, wealth billion management and

interest as premium in the basis, The ago. compared impact deposits, $XX essentially billion net balances sheet and year-over-year. ago six, amortization, in rates year. prior quarter, billion to to Earning billion. net On one were declined and and Interest-bearing averaged balance flat short-term sequentially, was driven Loan the assets rates interest down by interest million X% of averaged billion the balance were quarter prior sheet margin was the sequential the $XX decreased third offset million $XX basis and year net in up short-term mix X% improvement a primarily X% point year from down The and down deposits year which third Moving $XXX from margin a the $XXX deposits higher $XX quarter XX% On billion the count. in net impact a ago. was X.XX% the income were XX% compared margin in quarter, X% year-over-year. X Total was lower the one to averaged favorable year points to decreases the Average the quarter with ago. declined by was or page of $X X%. averaged third up interest sequential day offset third in mix by deposits. net interest XX year interest reflects a from basis partially one shift. higher during Non-interest-bearing down third assets earning quarter basis, income

As opportunity dollars, recent but This for relating we the we activity see activity of did Central reducing as continue swap foreign trading quarters, to foreign we've has in interest function. exchange income our most Bank U.S. of increase discussed deposits our our of level swap our income. treasury to exchange with the out impact

foreign $XX offset interest less this quarter, million, additional net by trading For in we income saw income. $XX million of exchange

ago Looking at to of for the This deposits. U.S. the the XX% unchanged dollar is XX% currency sheet, deposits from quarter. and balance of mix total X third represented our year quarter, compared prior our

were third up to X, year X% the Turning Page X% a than basis. in and quarter on billion sequential and higher prior $X the expenses were

in with million expenses the and previously charges. As $X.X included mentioned, other associated severance current quarter

X charges in that points results while included $X.X prior related other and growth. of million, severance year our acquisition year-over-year the X.X $X UBS contributed just note purposes, and comparison of ago, included million The charges. other under severance quarter For

primarily offset other expenses expense prior primarily year to was and associated operating promotion to impact Excluding acquisition sequentially retirement quarter primarily by Other higher an employees. due related consulting, costs Trust to of Arizona expenses, growth, pay the performance-based were long-term India, out a April. partially the of decline UBS was to attributable salaries increase of a both due for up gross expense Limerick, fees sub-advisor eligible growth estate locations, Benefits the in prior locations. incentive items staff one promotional the to from half Other real presentation. expense. slightly year services expense was higher expenses, due and expense year-over-year than expense. revenue expense was servicing key and higher the and operating higher driven current XX% associated to increased growth current medical quarter following advisor expenses decline compensation compared costs, prior compensation to building to declined expense There to the Compensation the retirement X% quarter, other in as third-party Tempe, year-over-year golf than taxes of was by higher during grants the in by reductions With less view, was staff due payroll all from of charges the driven Investment other levels primarily equity the efforts. and as to the The compensation plan expenses Outside increase Approximately X% compared Occupancy-related result which the in relating software operation the partially offset in just were higher the effective include as over The staff on were third-party year-over-year and which by lower equity withholding from change tax lower period Staff amortization to increased software legal lower the incentive operating to fees up to year. the by which other our costs higher Ireland business by sequentially. costs both ago. drivers prior and service and Manila, quarter well cash-based reflecting fees higher technical expense. The spend, Northern higher within in in remaining X% the incentives partially Compensation more as base higher adjustments and year-over-year due advisor expense up the were acquisition. prior recorded year a Equipment by the impact miscellaneous in the corresponding location increased expenses. and approximately year’s and incentives. expense. the respect Trust remainder charges resulting ongoing were charges. strategy by to disposition charges, lower held X% a higher was UBS expense prior in higher driven higher our driven in growth categories. this to with rent offset was were and offset with Shifting were tournament, miscellaneous sequential cost primarily business increase actions higher primarily than excluding the higher increases cost staff called was

expense have XXXX. on to of X, discussed we a are value spend embedding Concurrently, with previous as $XXX our Turning per approach. we realigning run-rate Page by are expense we through in calls base million goal realizing expense management our sustainable initiative savings the

We to growth aligned organic our closely with efforts expense growth. more these fee expect to be our slow

in results expense X an by quarter year-over-year $XX This approximately reducing against to basis growth Our expense reflect on points. by million would $XXX rate million savings equate the goal. approximately third annualized approximately $XXX the million

continue opportunities. cultivate of pipeline We healthy a to

progress has on profitability Turning progress slide X, expense recent we ratio equity. particularly This see margin we our in can margins to XXX% been previously fee our XXXX to to equity. to and it as The a return levels is our Page addresses control. of have on enhancing ratio, key it the our the in ultimately was directly a today sustainably what focus and years the expenses of returns. pre-tax a and from Reducing most pre-tax made important this high to is ultimately improvement improve as to contributor reflects key where measure we in fees measure on return the as

was equity approach. Northern requirement approach XX.X% remained ratio under effective X.X%, respect leverage at X the requirement XX, capital and minimum that of the at corporation applicable our which standardized year. Page XX.X% advanced of under at bank ratios Northern the the to ratio, XXX% XXXX. of was our strong supplementary effective exceed is Tier Turning start the the start at common above became The of With and Trust liquidity both ratio the to coverage became Trust with that the to the the X.X% X%

could As of there models the change final Trust III the could common further million million. the In the cost Northern X.X phased-in our shares $XXX implementation a of of third progresses rule, Basel the calculation regulators the to from of guidance quarter, implementation, through at our of III Basel repurchased which under final we be regulatory stock ratios additional fully enhancements on rules.

per the quarter. XX% financial Trust just of represent XX% on XXX% also deliver growing in $X.XX Northern the prior ratio In closing, XX.X%. quarter. equity average We per common over increased for continued combined actions to of dividend our These share two a over of quarter, to the achieving results payout return and solid year earnings

Importantly, drive a we operating year-over-year operating seek as leverage on positive profitable growth, positive fee and we to delivered leverage basis.

X.X share positive to better growth rates have our basis, be of aligned. XX% the ago, businesses. of to strong XX% XX.X%. of quarters, On Through equity and leverage. operating our organic achieved continues of pre-tax positive three management strong growth year-to-date each Profitability in also our wealth fee points the Performance common a and average while operating on prior X.X income year compared return versus by basis year-to-date leverage has from year, margin XX% a expense were and X earnings been per fee points of with XX%. on grew improving we to pre-tax business As

and fee performance operating leverage in to leverage. focused margin leader XX% markets. strategies delivered a Both and The as operating similarly consistency improving strong pre-tax pre-tax year-over-year total our attractive C&IS us XX% growing with drove from XX%. strong year-over-year Our of income business positions relationship businesses

earnings please participating and would answer for Mark I for Thank our third our to to continuing the growth and We accelerate invest are your be focused Northern the Todd, on conference call to questions. line. profitability. open in Trust happy today. quarter improve again you future

with Instructions] Carrier you. first We [Operator have question Thank America. Bank our of from Michael

Hi, Mike.

revenues, that’s when Good end-of-period, off trends, market I the administration is morning. the first seems the just like we when look usually question, we there Biff, in it just fund the like look sequentially guess investment something at else returns. FX market I then lag, the markets look and still growth I the on understand at and those too, and the include but whether average we when management C&IS, it’s seems the and the rates, assets

understand anything of am I both and on relative lighter growth came basis, sequential investment impacting the a both there else custody trying in So, that just the sort administration to because was fund in market management to rates expectations? was the

Yes.

$X you add pointed let me about was were to through will by $XX you spreads a down If re-pricing were About out in decline we as sequentially, we of particularly walk tightened as So, and I about to that. that volumes, There lower modest you that. some fees. to sequential that color try look, million. half management $X a which also driven were quarter, I would fees, over saw in that, versus sequentially. really lower of we the million some the line. equities That outflows second Then was between investment and as down million half that. little of what securities LIBOR was borrower have third get seasonality. was demand, that there captured and say About you by about global some driven They in know lending sequential and decline

item somewhere or I custody are there, fees C&IS XX% and from our of currency to true-up really we driven And could XX% that, the in of growth that then you of when fund we it the $X a and transaction there second volumes, there million also not it fees dollars some you administration with to it’s create think this sequentially variance. transaction some of by we custody gross a of between driven levels. to get that some market administration – factor million remember about half was drove the to and lap they and the but So, so that important in that rate fund growth rate translation out, lack volumes put couple was line are net are by as of had the along from quarter,

an important there. in So, driver decline the was that

growth the like business, in organic As business this to bring would or growth the in to I point out. it relates

I we growth we to or through businesses, we it at think three we where we time. that longer of are our we like growth firm. quarters when on that rates we And periods of over in have and in in look range when about a you this to are organic in year-to-date businesses year, at as our talked that have organic discussed look range at the the with look the X% X% a around being

what know. any bit pushed frankly. drive potentially good that quarter, in that from view given organic can both still pipeline year-to-date. are quite cause different fees this we going a could the rate. We implementations, the little but that quarter be of we below and we In we given quarter, that could as known businesses C&IS any have we year’s like quarter, historical fourth particularly the in good getting in of business that trend our directionally slightly known about we at we implementations, growth be have their to quarter, were about to feel being about the feel fluctuation we any I but look ways, both out our rate organic rate some growth lower in quarter-to-quarter into In business, in new and than of still business that. C&IS than where lower in very implementations said, were we new that That particularly said slightly about the and good In you given can in the business feel the one talked quarter, fourth

how you then much kind in that the headwind a about how of guess outlook sheet just the on about million, just activity growth And just forward the going forward? to will swap mentioned I net we you the going included and we balance activity. interest when think thanks. given comments follow-up, about I be the reduction Okay, anyway on should that think $XX was your any think the as thinking organically, terms as that the a then revenue, deposit just given of of continue on saw side,

Okay.

the questions I a and So, there, sheet FX balance couple in of then right. trade. question got

we pointed as FX it give trade but net quarter, FX was a with in interest the the million up income additional in million $XX quarter. of the On $XX out,

One the at this to ways the… is of look

at, one can where during this currency dollar these euro is been have X-month doing cross that euro look we because quarter. an U.S. swap you area is trades

look on is that that at becomes over if and up there narrows, that spread if that pull more you So, and less up can that. give you with FX NII go to trade spread Bloomberg, and

that’s line on that one So, way item.

and terminal. where far that’s trade that the for and particularly trade on and profitable We look quarter shareholders Bloomberg trends at is to would will our determine dollars in interest we are that or just leave continue at if best in it’s still so and the shareholders see we what of to the not to looked have that look you market versus our euros if you at on it

that’s get something as we that an Mike we have an update later to give and look on into will And opportunity. quarter we the

sheet let’s their probably balance off is saw continue which balance In In bearing the provide monitor you that’s clients, your of we this, deposits. our sheet. in say balance that deposit non-interest for $X is or billion with liquidity others, quarter, solutions of balance a balance of the terms part would so dialogs whether them on sheet of with the off came needs I sheet regular non-interest number our sheet etcetera. bearing What get have on certainly question, second the to into we the around what say the and

here and also saw third the quarter quarter managers hedge would most discussed represents in we XXXX. you back these do billion. think services before $X declines remains saw that for of of with asset the that actually which now in and there is to mainly this and that billion under be rate the bucket. are just business category that think we believe now that billion, etcetera. is needs the they us the second that is that as those declines clients What when is seeing About what that of funds, from we operational is there far Most we is $X quarter $X As under are This we XX% the for have on decline there our fund – are category needs. most was which balances we the just category of day-to-day within that stay sensitivity interest are that within operational

we buckets seen the much of think i.e., that we would see. have in So we rundown that

between If billion $X part of went, the billion was remainder you other the that really at two the where $X split look categories. of

more cash institutional And kind to in basis was really and accounts. normally basis. than a I see The depending kind business. kind we putting bit our in commercial regular billion $X quarter-to-quarter DDA usual see, first that asset was clients it’s more last we see regular can of from think on of type deployments, that’s a and can BAU of a was volatility little those as the pronounced or that what Thanks. capital business quite around would this was servicing treasury I as And but part more then BAU deposits the We And would flow a that to dealings. global commercial a of fluctuation DDA our little bit bucket. work management, of say custody ebb on their business it our our portion and so is transactional nature

you. Thank

take question Ken We next our Usdin with from will Jefferies.

that just all color for Thanks you Biff. gave. Hey Thanks.

you I going core really grow it’s are to still the is, growth and sun-setting balance guess game the forward not bearing that at non-interest On moving from the I the are we customers the ask that, much directionally business of see overall all – to big be balance and that I tough do we bigger size here, sheet from guys do deposit expect where might wanted to to still or the the you see just proportion this the guess how grows, about point underneath think picture? as the we just that of question sheet is see outflows, you

coverage But do lot correlation will balance got understand drive we modeling a believe growth growth that continue business of grow the we between others. we Yes, servicing core think could business. I still grow is time. over larger, the from get the sheet sheet do. instance be that There to for growth periods significant as talked think we balance custody rates well. certain franchise we as we and we wins look sheet some other asset Ken things balance the But growth do that time the here, But core liquidity there we AUC need organic in absolutely the in we of grow from to over do with we that yield. and the bumpiness to but we that will around our have that with ratio and see as core it of seeks our will respond balance sheet continue type long and at about the to if

shown when some in Okay. pricing you then of so the split the us just terms how and in continuing there the other, just And across gotten and can faster the paid, have past like you declines terms to savings in betas deposit are it see regard? we sequentially can within to talk about buckets, act done interesting businesses talk have unexpected the you deposit that the with deposits saw in in we the you of even pricing, trajectory those just about money not rates of and

saying start be process but to disciplined when have I think Yes. Sure. it a off very – I comes and got we by we deposit pricing to competitive. our will

try I color to am looking the betas going little for the we at time, at and apart of period one need that look So deposit of quarter, betas just you sorry just over you a a at to I have of one a but at it’s longer you. quarters think following difficult we if am perhaps or if offer to at a to this catch-ups quarter year. on I I look look break deposit can some look it couple

betas So last if would what you our I the here look is over of say. couple quarters,

you that is non-U.S. within were our The probably a XX% of U.S. deposits mix. Roughly deposits institutional and dollar of U.S. deposits the beta. are a office dollar type XX% deposits. also our between portion wholesale there majority know some XX% vast these of deposits as non-U.S. are For and

range XX% or market the deposits line, aggregate. I in If you largely a our that couple the think management of quarters and last betas other of in wealth for XX% money of to them, the savings, at look over as portion we’re probably

of which the as those deposits viability just which XX% includes that funds market above and competitiveness inside line add into institutional in bring XX% that going said, money I’d we think And I savings, continue what monitor brings that are management somewhere forward. line, those wealth deposits which that range, money also our other of below and betas that the blend I alternatives range, about retail terms in the to little the and think bit are a just but the other some of we range. there’s as to

that’s enough hopefully So Mark? color.

or decline was wealth down think we and XX% had moved then or that have half did pay-downs, And of about it kind the we left then deployment sheet during bucket of by of what’s seen was and there and that in from debt funds just and have about and bucket between management clients. savings, that that would that deposits of other, that I split the Ken that saw whether was were pulled and we balance about were quarter, would then this that with see side, market on you asked investments where also left there clients is our money within into that we saw balances wealth some have management is other off-balance whether declines of sheet would

from take Hawken Brennan We’ll next with you. question UBS. our Thank

Brennan. Hi,

guys. balance made Hey I to decline I the sheet. non-interest last you bearers that I to Actually up on Mark proportion comment. about want – follow the just on in rolling good believe of the morning, the that

Given temporary earlier? beta, quarter what those I dynamics, like deposit which on single would put roll does see a that of into think on pressure those management and can that cost when wealth clients interest-bearing a upward catch-up you look some a referenced result in bit the Biff you

The in for the non-interest quarter. thing interest-bearing one the was saw we stable of we deposits Brennan, wealth the the so in saw Yes, wealth deposits, actually decline would was side management that wealth part I management that decline management in pretty deposit. the say

That was already in there.

them try how to brought the the large beta lagging you In markets given there slowdown there why look being moved. to understand some larger quarter catch-up, is can in has actually longer to I a to any say if given point be or time could there going of Brennan disciplined, But quarter, pricing in gotten there’s do to we we’ve up any slightly pricing really any and the try that’s look and sometimes either catch-up period at if quarters. over beta year be ahead from

look like some more catch-up like in lines. quarter the would of This pricing

return pace. the suggest really And the from expectation a your the about about fourth to at volumes pipeline then through speak, fourth impact That’s more on you. quarter of that which was or quarter C&IS I’m of so outlook like kind September fair? guessing rate the that and then looking that weak Okay. transactional weakness a that having quarter helpful. and we fairly think an given Was it outside. the volumes normal you Is to comments would when about you your model Thank have referenced to think way and particularly the rebound look consistent when transactional

Yes. through They slower September. I but slower we numbers some in in transactions. I end don’t with September, on got color of slowest the some August a the pick give the you the would up bit And in part in earlier certainly say were of from periods October, early particularly near quarter as little December, and quarter we’ll was that the have the

clarifying Okay that. Thanks for

with Thank next from Bedell you. We’ll Deutsche Brian question take our Bank.

Hi, Brian.

Not around so something one cycle. on just just structured is think came non-interest-bearing at the are starting the I that’s by beta, last to the This in XX% the deposits appreciate total morning. start at XX% the are the the XX% looking so dead different, that Hi, you different versus by tightening maybe side, beat on at great, deposit cycle XX%, of now out down of to from a about again bearing deposits. – end XX% just come down I down horse divided looking angle and ‘XX-’XX, or but to thanks cycle XX% in you cycle non-interest at but non-interest-bearing – just about total the far hi, little deposits, and that good company the and the from like to bit

least wealth the nature and if between could I forward about here? you the difference structural if Sorry bucket the products view understand but could that to maybe from side total to and and that the just do of we understand so just another market you of So thinking at balance of CINF, products? being that the breakout going missed to course those switching bifurcate substitute, risks management mentioned wanted on some of into you types clients wealth money of how

Okay.

Here I would is say. what

large time. institutional balance between significant the and of more asset construct of for are There XXXX institutional, you sheet. sheet have business when balance the we exist that different look management a think XXXX on clients period fairly the at mix that I type

it may of that necessarily much to mix question mix in had call our now, on mix because you moving the GFS moved period proportionality a the of at I in meaningfully is it fairly space today. let’s XXXX balance the $XX part did the different and sheet that the sort business. measure to be of If not of our was XX, that So, though largest of that your look it’s XX how of over different. time translate We XX to from be of acquisition could clients second billion

to about it XX% under in of in dollars, of management just then attributable wealth our and say and of management the let some is I cash is XX%, C&IS deposits, me then is about is I described supporting in asset start XX% First, some in that about there. just really – treasury business in and support off what of XX% what managers is core remaining are would XX% the business, that XX%

specs the percent balance it of managers’ activities. to don’t that’s as So, a need I breakdown down that back or sheet, to XX% of billion. to $XX the answer, to I there the that given to our that I don’t for but But have because that be to you that correctly can different assumption that different. $XX mix large billion think pre-suppose XX% wouldn’t and company be of make asset is support kind moves want the passed

you ratio And if Thanks. I follow-up, bringing and How helpful. that would is up? super just the That’s we that about on just think side then outcome side expense sort on obviously more the or the may we expense denominator fees market-based of on markets that target we just that Great. as on guess should trust a about market that you equity drift pressure responsive a the expense or downturns that be of back should to of think behaving think fee get we can to fee that expense that in your reduce down? of to that trust should the pressure feel do natural any how ratio in

with short-term react that down market to have the absolutely given that spend in on. to with of difficult. term initiatives move that lot view quarter Remember some say, to going same continue we would drive be the perhaps that market value decline. for in a I let able think you and we longer that So, can are maybe is to market me of give a expenses, lower any things proportionality like volatility In first or that our we to going

sloping benefit, directionally tied and not though but are So, so level those. that, business, we how are control that need just some with most lot leverage, directly an growth. talked to a have can over aligned We with those the revenue continuing that why things on to these long the we they more be that do getting in can time about And we after more as what calls into are as meaning our the or there to markets it we that that over get to I seeing. of expense likely expense will that move our we we line fees are friend. upward with add others can quarters support market That’s get the we think that that’s discipline would we closely much and that grow fixed fee fast are and be we periods long much how drive organically leverage we organic

answers hopefully So, question. that your

Thank you.

Alex take Sachs. Blostein with our from next question Goldman We will

Hi, Alex.

morning. Good guys. Hi,

bucket just to up overall deposit, So of on. just talked non-interest wrap wanted size past, NII to up maybe conversation, about couple $X guess it billion to at-risk off, helpful, is you total $X think to around in I sort I range now down still X you consider break the one guys thing now of I the the can’t follow about X right but the budget, by was the you gave things of billion you and in would if us is bearing number.

So you left. kind of said look too

still number? is maybe I’ll like is of beta. quick deposit part to so higher a at that sort the a ask then follow-up just the I framework So And the on Xish or we X X maybe still risk, after. That’s dealing had are right with that one. or

Alex, than is number I to X. that, that smaller X actually think

say have moved. sensitive seen moved, rate we the already money Now, think that I with rate portions eight discussions that in have what probably now, think to think sensitive move have the should there has that our actually that we we of had moves started the in hikes have where have think we that I already already I rate with or pool,

we it’s So, that smaller not zero, to think should be it’s the clear, smaller, about. I X but talked it’s X than I

So of we seeing that action. of are taking money I already rate think some sensitivity

smaller seen than the I action. you that. think that give have we but size exact number, that of lot would I a can’t little I So

you think what moved earlier, saw we in as about was of that bucket I tried think part. I Some there XX%, describe this some to that said I so from quarter that

from that little any was of say, that. would BAU could of leave transactional see more give come I given say others, The more color. kind would we Hopefully they moves in and a that I volume, helps quarter could normal what

said about with deposit betas, know betas, I think Yes, that’s deposit guys I I or sure talking wasn’t to you what helpful. And so then are you respect XX% like XX% QX, seems the a especially the year, you I consider a higher if over deposits than of it the look at of because bit portion kind outside that U.S. course when of

So quarter. might was outsized occasionally particular over you catch-up any there or this pricing one I be there know and in deposit catch-up. there said two

So QX making again we into going not the looking move? kind of perhaps us are out to see

in QX it have the evaluate may quarter have that some I on we catch-up that saw competitive or from us in think opportunity the get to data we provides it you you and some would have to where quarters competitively. are where competitive the at fair the we others landscape. in we know larger it would benefit have we to outsized the are may and beta end that of and be assess where had to price We the of the with as assume

that’s assumption let an So, go and you from there.

like. Alright, That’s sounded last Yes. it promise. what one,

and of when correct, of that growth sort a basis said you maybe little like see? annual bit fee side, you adjustments in management about sort maybe degradation And thinking the that? organic taken X% So management obviously organic on sounded it can was to price account over growth growth was into bigger not are quarter-to-quarter, you of asset just guys an might X% C&IS guys on quarter? organic terms picture, you know guys I made you just then a in investment talking any this we on kind some fees about but of pricing C&IS expand not time drag of there investment on

sorry part it’s first question growth. And It’s the was yes, of the exactly repeat… organic So right. fee around,

within… re-pricing The

was are we have that have fees. C&IS the very our franchise a would Re-pricing management it regular we of we a them clients around to passive of press of know have large on we in in with impact as asset immune and say either not that has and competitive pricing and the It basis the dialogs some period. and have negative on we important nature and our the lines that inside business with particular you the within in I much along is of was a

Thank you.

from our question Elliott We Geoffrey with Autonomous will Research. next take

Geoff. Hi,

custody is side, so is that Hi, Thank fee Maybe serving administration the of you pressure, It talk feels more about industry like all rates on fund are how question. and the pressure the in under good taking there? on there for could competition of seeing pressure? morning. what fee generate you the you you translating can into you are terms

remain In really competitive that for what I it or pricing. In nuance where markets, more pricing, in space parts say measured see we would the broad-brush. than more could Yes, highly of just is to has very and we to and see competitive could Asia certain in other continues parts it pragmatic just certainly it we that other parts world. me say of see

erosion win and So pretty without the anything business for drive landscape you compete than margins margin space. to We in expand pricing. they our I’m our to to to able about hesitant about that it’s quarter, a ability We other give feel the continue really good talked so are competitive C&IS in still margins. in

creating So you are paid are it pretty I the business, side compete, in demonstrate still in able value we is what feel value a bring which you which the I we to the think have for good, get referencing. are this of if that the but it in very environment, proposition, is can space, you macro space. for but think do institutional landscape particularly the in can marketplace still in competitive you you we

that on side we very and seen wealth management proposition demonstrate on we on really very the value side business. fee growth think I have effectively the wealth strong the

that if a you just we just flows, are on deposit one mixture that side, flowing deposits in a And board. normal ebbs custody out you across have pretty the guess business look the in the gives outflows I been you. the because banks those confidence Thank non-interest kind quick clear and has DDAs and of across saw of what reporting bearing

So two? what or confidence in be those you a of kind gives again that quarter back might

that…. break So, you side, wealth don’t I know said apart, the them on I think let because me

and side DDA… casualty the the On commercial

it We the back, we have moves have seen back, things we that client trends past those tracked we we level client we they level they over excess clients quarter. client in types of but which can’t cash, I that do that we before. a from well, come that in they seen the some flows I we those client types have of at types drove tracking the I guarantee could had. have are this a these and before guess at Yes, but that and and come ebbs of from time. these guarantee clients track can’t these by seen of in

So to track it more that we could that’s was you and absolutely informed most current that and right, are nature, will but be our permanent continue something in view.

you. Thank

We our Betsy Graseck next Morgan will take question with Stanley. from

Hi, Betsy.

to in to think Couple One dig of the do morning. analytics good the could set, know of product recently understand release Biff, Hi, of what wanted I we for rate little little that lines out in integrated the bit look are if one on opportunity was analytics all and to services there see questions. a risk about and you? about just and I wanted driving trading forward at put services drivers you discussed fee the you bit solutions the a press some adding prepared risk and the also and remarks, that and

Yes.

provided will so the or I analytics pension the services, a first two separate have long we analysis whatever. particularly will call to time and So, fund performance analytics for and what services, fund risk go of I of

another been we value-added a pension provide what have They analytics it’s high of performed, evaluating way the very provide Mark that very it’s fund part continue will with have business data their ITS. call us is have value-added and performed to and update you give board have a when work board detailed an I relationship. a and on and able fund their great grow or for I and let to So public services. been to use the we do very how them managers work to assets

Yes. Betsy. Hi,

when So, Aviate to a of we an really, strengthen offshoot business. in acquired brokerage bit the XXXX from our ITS is global Global of kind kind of

quarter-to-quarter have really So, a fee it say more at seen owners in really look we being including by lower on interest security that and volatile those was – performance trading I a would trading trust in quarter, is this and tend commissions for It’s as be categories that and management we to and transition I trends, but impacted underlying those security would activity activity asset growth commissions the growth when it’s well basis, lower see there. than ITS, and do space would area. and the say that like we asset swap the be more core rate some for being as our solutions the good good within managers. brokerage

it this like for something as or here announcement well? U.S. there aimed is accurate that ITS to And at is was looked Europe,

Yes.

the because availability Asia. or I that’s certainly being is applicability the the look run predominance we I primarily is it where Europe of think U.S. in in the now, And was. through if Aviate right or will acquisition U.S. think there to see

for thanks Okay, that.

you. Thank

KBW. question Brian from We next will Kleinhanzl our with take

morning. Good Thanks. Great.

comp is in the the where that So, we question point I off make third jumping on when expense, are the just sure to fourth quarter. think a we good quarter going quick a about want

think incentive the this about the quarter on think impacts you quarters. for posted reversal there number there fourth comps were in that quarter? from I clean accrual that number mentioned the or to some in previous Was an was quarter you a

say relates we in the of retirement recognized $XX first most it’s I was of quarters, that had Mark. really the then incentive that in issue first clean the it the first for million grants we it’s the the number. the quarter. I mean over compensation hi, would two fairly would to decline expense it equity Yes, quarter have in Brian, that and a when gets second for eligible

have would off the third quarter. that rolled in So

So what’s probably would compensation I solid as point is say left good far a goes. pretty starting as

like seems you going Okay. year that is services those some And was number outside an or do maybe forward, but it manage the it there about you keep in looks it mean ‘XX? opportunity manage down, ability that think mentioned up, going ago ‘XX then I how on to that about expenses that just lower there a was to

probably but to recognition of what’s offset of Yes. but by are you which a the includes I accounting X%. the that for And at X% by look outside on slightly say looking by the been you a net services, things have are There we third-party about for year-over-year market when at technical then at at pretty advisor lower services basis. X% about adjust lower is when would would costs, is year-over-year revenue sub-advisor from legal data, would higher expense and you when the gross say looking are X those look about to we growth we seeing acquisition. that in left There amount points growth, of growth. fees impact and we modest really driven offset probably consulting of

services that’s year-over-year outside on basis. So, a

I I expense, And have line up line the add have to some in some service to outside should the will outsource the Yes. we line compensation piece down one come the that comp where in commensurately. be chosen picks the think There of there. cases but you can trajectory seen improvement too

our of have we technology So, driver as have another about That’s that managed we talked their well. underlying have services of some done. that around we some –

you. Thank

our from next question with Glenn Schorr will Evercore We take ISI.

Hi, Glenn.

what show and sure Can all One change pull you it ex-UBS, gave the ex-FX to – expense quick Hello, questions. operating expense those of revenue revenue pieces just together summary you ex the what think and there. leverage and pieces? clear us I on was of ex-charges. just Two make growth

we we of out. X.X% organic, to is the X% of would that’s would probably trust Sure, look we our and that all up so be yes. it. things pull too. excluding I all ex-acquisition, those to or expense if at ex-charges, at the say say were not just fees would That those way you That’s ex-currency, in at X.X% range look items That’s sort we the if good. core pull

that expenses that’s all be and at would would So we and items we how of about about X%. Core fees ex the look revenue talked revenue core X%. be would they

and period beta didn’t do the grows interest customer new one, rates would thing I sense was that the – never shift sure net your on meaning a people When as And make basis you X I it whole what grows sheet but we doesn’t over that pieces, is what over balance growth of to about organic you sequentially, heard final it do issues am interest but issues. NIM what together just net think it the point like altogether each looking are income, the of what question grow, grow a matter then you time? maybe title your as no have I then pull range deposit time, what at Okay. is sounds much, interest mix should down years business do, you business, and income if accompany balances have income net ballpark as X% win is X% customers you a idea with have would or the

sheet the I that can NIM the We give grow expand. range, say won’t the I think that will this. Yes. balance and NIM can can but absolutely expand and

in we we just one continue the about think and see we not looking seeing growth at can move get we are to again betas deposit before. can that as it talked we quarter, long but trends organic looking sheet and the betas deposit the industry expand at As with the trajectory at think sort have bigger of balance where levels

expansiveness are NIM. to the even in exist the it. bearing terms sheet. expand think some had movement in of quarter in But are shift This we that rates that rise balance mix bearing of think non-interest non-interest some going the in if on particularly absolutely environment that had deposits had greater can our We of We it you runoff balance the of sheet value that deposits.

just believe do this it’s we that of flattened So it quarter kind out.

longer over of may at at but some the of and to trajectory stair we I know than to time. need migration need have one NIM stepping I look it its you what over quarter. that’s periods more just look it our think you it to times do,

the asset And assets…? for sequentially translated upside quarter certainly saw quarters the of would less were sequential so moves side muted two versus first what the we that the LIBOR year, have on the with this in

LIBOR – think the duration averaged Yes. quarters. a second you we three looked I sheet third balance and X.XX the mean know I we shorter have for as both months

So expand essentially largest quarter. previous month of half in no about movement month points, what our in One basis is about XX that saw LIBOR saw don’t was we three One from the that what rate the so we LIBOR they long second – quarter. be the did to move. know both I were quarter. this second, that impactful and don’t know in is months the relative I trend muted what LIBOR how will

lower, is you bunch this other the XX on it out the cleanup, on other XX us things guess year right it had off hang impacted words was that quarter before, all you of XX the quarter, income right is go gave it, was ago, why XX a range? what operating in XX last my we kind reasons jumping point was of was it Got a to the question is line I it. forward, where One the is only

I any breakdowns operating at look this other of in won’t community think income million. we X if hope investment you have certainly the we quarter,

consider In certainly million year our was than quarter ago. Mark recurring was investment. $X So not it a that derivative, I Visa would higher this

to back think range don’t add. The but those I I more out out, if in items you those that somewhere and then bucket Mark around you let you two extraordinary moved two a were you the… are those pattern, consistent have a two. figure So any on color rest if those of want know somewhat But in

– slight hedging And hedge. the kind true some a hedge which is does basis. volatile of a impacts. of statement doing overall the off the that across that’s income we up one of revenue and netted year-over-year the the of the is net get is The thing hedging, that the that But that sometimes drag within impact of currency on where those are category

you. Thank

take question with the Mitchell will from Jim Research. next We Buckingham

Hey good morning.

Jim. Hi

seen guess the quickly how so deposits kind so been I about what Hi, any asked far? seen runoff are most you typical we of seeing stickiness from of seen what thinking and my or you are a just lack but just thereof, maybe answered, I have questions far in end, October, guess have period on have have again you you

Yes.

some give can of on at our in we a chance update you that at have sheet to large months end period of color will And a balance see December on and had that. end an as We look in you quite when you period. two it get the give

a back we public can better I give able you for in week displaced it or don’t mid-December that we around because And it’s moving you will that, some stick I view uncomfortable until the market a average of cleaner are average much would and be by when sort the so into a be any look. put of giving think of and to gets forum,

you Right. mostly money feel like most of hopefully But see to growth here. gone we hot the overall, start can from has and some

Yes.

then about fourth anything the XQ, think the in terms you we it all I should month looking on seems out third, portfolio turnover the sustained, how balance And if that X more X Okay. into there? maybe in too, equal, move in is right. sheet the just like NIM, should mean, there of at be else or for LIBOR that the if have have months else and I yields versus maybe do help securities more call noticed Is might quarter reinvestment

item LIBOR important movement spread track. an for to X-month the So be and you

chance would month book the And months more maturing focus in that in but LIBOR X have the average, and X I reasonable the X spreads business primary and reinvest be of look that, on space. we fourth right, are that a So do month then, but quarter, with than would assets larger that. in normal as slightly you at in the we a X month to

Thank you.

Fargo Mayo We Mike will with next question from Securities. take our Wells

Hi, Mike.

you ever X% what Three, to you you for us achieved? have you $XXX to I range million much ROE organic four have and of that, remind Two would on for you I look you financial it’s the XXXX your update think value Can fee for by of you will growth spend will the XX%, X% to how said? that? looking growth in core expense did right. looking sure savings organic are update target One not I then for as fee is growth am targets, that of you have you and XX% tell outpace also I be

target, external absolutely public XX% one are XX% a is our So right you stated to ROE.

We that point. this at updated not have

that. reviews We have that’s we if range at look establish and regular to right the

be should was if that through I secular contemplate to why something the think its actually world priced is it away financials reform time tax we change not through that’s Obviously, the impact be assess cycles. react to that be think like we have particularly we about what range a that have reform goes waited tax flow to going to some just and of have and how period to that. would looks

value given trying those are they right, growth XXX a process targets The formal about. are expenses other we talked a to view have items fees longer X about of the talk targets, we phone, spend, as thought and in rate your to to all range tight organic period not on organic the specifically positive is on for get but X on over to for

have you core all Was trust year-over-year the third said what that X% X% deal the revenue Glenn’s had that question you quarter? core core to to and earlier, answer your growth. growth fee growth, And X.X% currency charges, ex noise X.X% expense

that’s right Yes, exactly

are what those same numbers? And

was our our expense and is that am that Year-to-date, XX% want X% fees quarter. the I on our was a X%, were revenue it I if year-to-date. total you was, year-to-date, sorry trust say would third

leverage quarter year-to-date. So are a than tighter, it bit just we a managing quarter. little lot one The was of more but

the that’s So, performance. year-to-date

every And what is times is Northern by I by I saying be should quarter, several year judge is that think not I what you hear hearing? the

some that see is can you you what little wins, can think beta net quarter and I that see XX slight in are but very that some catch-ups any income nuances, with and bit have that are a you hearing in we it. move sized which given in hope has we just are where days, particular our in business, at. any in on interest C&IS quarter others those periods lumpy given I metrics than pressures longer to that’s some judged and

Thank you.

Mosby next Sparks. Vining with our take will question from Marty We

Marty. Hi,

interesting. morning. you together matrix be it’s giant pretty Well, will different and with I all putting pieces think if a look have Good at patient to these I me. been

are up income you is single-digits. look is you double-digits, like at fee higher said, If NII growing, up revenues year-over-year

the the not year, have just it’s had momentum it’s over the quarter. So, you sequential

increased up, expenses tournament quarter, but look that? on the you of quarter If sequential at most second right imagine that are refracts about quarter. I expenses I third to the golf from Am

the also to Open is sequentially Open. Northern have some down, So, Trust last we out that called we offset the that is sequential There certainly an partially have equity from I there run that impact impact but incentives of that the offsets it Northern we a believe quarter Trust is in…

In business that right promo $XX and sequential are we range. about see million is you will increase the XX-Q filed in when

can you that seasonal. more understand So that’s

swap you and at million particular but impact in in the quarter income look from going FX correctly, you revenues If million, hearing down get NII $X NII. this I $XX am this this about the

income? NII. a So, back million drop, and out it million instead be Net-net, what’s $XX million take a do happening that in you increase if you add of take fee would that $X $XX in

you it decline so Weather a here, in $XX apples-to-apples, was $X of Marty, would also FX down I Xish. guys the from have drag so quarter do million, prior the is think a been activity swap there million

Okay.

quarters. was kept I that trying the to out millionish what that’s about on So about between know get incremental it’s really you $X in sense

So NII flat relatively was quarter. particular this

your over quarter. out, NII you of fee at was third and yes, components actual take income at flat, look fee If and relatively income look you the you flip if that between quarter income, impact second look and the the at so fee then

in then above You actually had million of seasonality and million core. $X $X you impacts, of pricing had growth the you had

that’s up what million and brings you that two actual core couple your to see still noisy, where is X%, pricing things at a actually kind that out, different but down of comes you ends understandable. the of you decision So, that’s core basically very seasonality very in just make quarter-to-quarter, that dollars, if that’s is of one but so it FX and down look it’s got kind up. then a very business, again are

seasonal. Also

The July lot There we a is is slow. holiday lot particularly drive third where a in Europe, August and of of seasonally in quarter that.

that we this if look at be on item then in and number the at to taken and B the million commissions million. $X then down going other $X you decline, some it’s the And related basically looking swap the to security already Class thing the training you with unusual Visa got start going that’s million out $X

that’s mean driving that. I So,

So, we here. in down other got words, unusual sitting an

quarter-to-quarter. from got We and some noise have trading that’s

revenues instead seasonality a million a other. if got So revenue, one and this seeing you decision and you have core like million a something $XX have spots, $XX through have then some you of that I back of hitting couple decline of are up noise price got have to in got and really you pricing

in of looking particular revenues we are start still it’s once you particular the quarter, which what at everything start to cause at noise just the to you got you when am this that of XX% covers say, a looking way the really things round growing that your negative, and this year-over-year for well, it say litany So it I is quarter. hearing in but trying kind to conversation up and

So through I just wanted to I walking kind of correctly? make was all sure that

following – calculations your all think I there. was of I Well, mental all your of

I could what but you are of think that impacts about they happen, are that sequential all accurate, a quarter, kinds happens talked moves in the the and those that’s others. right,

you days they the out how portrayed in sometimes. and I are more are and the make think continue that themselves and moved to right XX in to focused than that we longer accurately sort things have think quarter decisions we these decisions

a ratio, franchise pretty on a XX.X% X that that will Tier continue consider way, you also in equity those returns. with going XX.X% terms to all pretty a that that’s it’s those of so strong well-capitalized still generate we we ROE a when return an things strong And we still believe a it’s at say common ROE can sitting pretty attractive would return calls. So are and make your I

you. Thank

Gerard question with Cassidy our take from will RBC. next We

morning. Good you. Thank

are you, Thank you. Gerard? How

$X other the being of mark amount the Good. Biff, Thank total in million about talked that differential just Visa you you. in this the what quarter? quarter quarter, was Visa income greater this the

we that Visa If that again was was of to series large all expected we year Visa, a at over together add ago duration a of our $X.X was. it A shares. price driven to factors look million of a the at it closer It our shares little a quarter, by X. components of B by And contributions the mark was but number, to look the X.X so ratio And conversion that’s is cases in equity any settlement of made we look funds. the the litigation, many to at driven we

all stock Visa and of the those has kind So, come of valued price any moved. quarter out, given be in

duration around the quarter. thinking move and a change up significant this all in any ended being given Our can the litigation of those quite period of

our $XXX today, Class in the You sit range. somewhere know in right queue. it where Visa depending It’s stock it. somewhere the It’s that Visa in to our don’t range can in on price I is, calculate are shareholdings billion as now $X B we here but million

So, it’s off sheet sheet, a the substantial it’s zero. on balance balance balance it’s sheet, not off at

valuation. on, is but it’s it So, zero

I that [C&IS] this of we share color. the also you up show for you Thank said activity with in administration volumes, should see from the a custody what in outside from to area? you of volume quarter XX% transaction XX% us, come think to Can type monitor fees good. may what Very transaction

sometimes try good could network, the of it’s well, with then fees through there types when recoveries but in Gerard, I come might at come of is through volumes those market market they and think probably the timings mean hard. volumes judge be way overall as at into the I that. different looking to driver. billings general, overall to a is global you sub-custodian Yes, There look of

Thank you.

Vivek from question Vivek. next our with Hello, Juneja take will We JPMorgan.

Your line live. is

hear me? Can you

Yes, yes.

I am sorry.

CETX So, for taking my it’s pretty the question, quarter in grown ratio, your thank you to XX.X%. sharply it,

if what do being that accelerate balance secondly – with especially basis And are point over XX increase? even your you slower, that drove – significantly your your time? what with above you so it’s what do sheet you Firstly, is far more since plan buybacks growth targets,

Yes.

of total in portion, drivers quarter were XXX, decline in a the lending assets the north foreign assets but that the anything exposures, the we can this like exposures, didn’t lower assets, add weighted lower to weighted so our we ratio quarter settlement things payout earlier, risk The risk of client securities a did bit that we said other what have the really as in securities, we So, have in will little lower drivers overdrafts of risk exchange call because weighted and equity was were I quarter. client lower lower others. and really

period drove up and All frankly XX down, of in of they those quite our CETX drive kind weighted which at out helped points. basis end win about favor risk the asset

quarter. Those the can in end-of-period driver volatility the was that So some them. have to

The was, the stock on or and the that. increased objected by to continue dividend quarter, of we executed to were the to do the third really we question was billion not as at second more our buy in bought approved, and can you were up think part we from Federal XX% this in Look, Reserve to we that. the around in we that your about look we of quarter we see how quarter starting buyback $X worth

board at what all evaluation are, and mentioned of quarters and it’s strong our return board you others will the into with we capital our that to We take return. factors consideration CCAR spirit see capital position capital with the in a the ask look we the right at coming year’s and in on next of the look but levels and as that

because you be this years used your payout it thinking about where to ago. below ratio has are payout several been how in And dividend

are depending XX%. increase are XX%, this only anywhere You with now on at about still quarter-to-quarter quarter you this

do going think So, that do term? where you about you see longer

dividend ratio that want around payout about to about ability that dividend. stress, to the we able certainty we be how sustain of Yes. that and think We and great think deal that take would pay consideration do great and itself of we

we have stress earnings things in are stress. that so payout a that do dividend other when make can sure itself our And the we we want in stress ratio sustain testing, to and when

of that over to that but that, we said area XX% where publicly I feel to being think an time I is the reasonable dividend that’s being from a our ratio the around think in of and to continue think payout dividend and gives the right of comfortable range in comfort that rest with others. the right evaluate we board the that we have XX% range form total us and We with that obviously think buyback, our ratio payout stock importance but mix the will we

questions. We today’s concludes today’s for This you. call. thank you joining Thank

a You may have and day. now great disconnect