Northern Trust (NTRS) 22 Jan 202019 Q4 Earnings call transcript

Ladies and gentlemen, good day everyone, and welcome to the Northern Trust Corporation Fourth Quarter 2019 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, Mr. Mark Bette, for opening remarks and introductions. Please go ahead, sir.

David. you, Thank and XXXX everyone Northern Corporation's Trust Good conference welcome call. quarter earnings fourth morning to

Joining our Chief Chairman from and Allnutt, me O'Grady, Controller, our CEO; Mike on our Jason call Investor this Relations Tyler, Kelly our and Financial team. Lauren are Officer; Lernihan morning our

provided authorized use report is which our of that today. live northerntrust.com. call guide our fourth Northern our of webcast Also to Our on trends website, earnings in being available we quarterly information on any This available be you release call press northerntrust.com. website both quarter find replay this The the earnings call disclaims only on February presentation, review our XXth. accuracy Trust will financial will call. rebroadcast XXnd conference and after are website is today's through at on this continuing will the January

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

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

you for us again joining today. Thank

to over the O'Grady. me turn call Mike Let

Mark. you, everyone. morning, Good Thank

as his Bowman many grateful as you retiring January for Tyler a trusted colleague Trust. contributions deep for the years. expertise to successful will CFO welcome time contributions at he leader I and Northern We're He am brings and Jason CFO throughout leadership Jason previous the Biff became I as five in CFO years As Xst be very the role. financial Biff will and significant know, thoughtful for XX be especially to experience our and of as after confident his his role.

our of goes seeing the some detail, in Jason Before businesses. to on through results comment trends like we're in our I'd

on to Our productivity. while XXXX digital executed our to a exhibit improve strategies as and for performance of advance foundational continuing continued growth strength, we our number efforts

on XX.X%. the common for return generated of results year equity average a Our

billion repurchase We a shareholders also $X.X shares. returned record through dividends to million XX.X the our common of and

custody and under basis, our year-over-year In Wealth assets capabilities assets to marketplace. in $XXX to grew the XX% billion. $XXX positioning billion XX% Management our and On under to resonate business, grew management a continue

On in data, of the and we advice. well front, delivery digital, holistic spurring around capability this of our analytics some growth, continue as goals-driven the to as innovation in invest capabilities

by the closed Management, office and last the of were very solid time Best was out In Financial of we performance the new also it year Bank a year and Philadelphia, Group Wealth in the for Xth named with momentum. Private years. out We sum, the Times for opening XX a the

and scalable Institutional focused the & growth. future innovating its for Corporate growth digitalizing enable executing business Our Services strategies, business the remains on to

the at XX% ended trillion, $XX.X year. under from prior up and custody the year Assets administration

driven asset owner our We asset segments, manager organic continued by in both to servicing positioning. growth achieve asset within strong our and fees healthy the core

front We capital middle-office and making markets. are are in that growth areas and targeted fuel expected also investments to continue like outsourcing to

integrated capabilities in XXXX. management new For in we front-office solutions, currency launched trading solutions, example, and

the into more drive strategy is a sustainable executing future. to profitable, digitize the to C&IS business scalable, multi-year growth Finally, and

Asset the year XX% under the we an In management, in with ended prior assets year. of $X.X from trillion increase Management,

long-term construction, through, are the liquidity secular we shifts, research, to value management. such key stakeholders portfolio quantitative as through first, industry and of strengthening transitions As delivering competitive our advantage areas

growth intermediaries third, and financial such and ETF, Second, as in offices, growth business multi-asset. segments products prioritizing our to such markets shifting quant value-add and investment ESG as and higher active, mix family

business we service within on profitable with growth. about and our excited and enter into remain As positioning expertise, clients of We focused XXXX, driving competitive exceptional our we the are providing each efficiencies businesses. our driving

the to turn Jason details to me of you call our the over through walk Let performance.

Thank you, Mike. morning, Good everyone.

XXXX review in presentation quarter quarter earnings welcoming our conference we this you me of to on Mike our $XXX.X Mark million. net Starting X of reported morning, income Let call. fourth Page and join earnings quarterly fourth

million Earnings equipment and were was income recorded The software return charge on substantially decision a software and $XX.X recorded included current operating and $X.X XX.X%. to common results within quarter's per charge share lease the other our related of portfolio the sell expense. disposition $X.XX a million equity to all in

As the you bottom was X, macroeconomic mixed. Page can the environment of on see

both While US as rates in on equity declined strong, interest well sequential as markets short-term a a the were year-over-year basis.

and quarter X a Page The million the one $X Expenses fourth current of credit a of for interest compared X% review of and ago. a financial the quarter. credit income year. was last highlights credit Year-over-year, from $X year-over-year. income income with X% X% revenue down flat. was one year million to X% year in provision losses Net the from to through up net non-interest increased ago increased So

income on the for In in the with to quarter. income non-interest X%. common one the ago year sequentially. average XX.X% quarter, and XX.X% up quarter. sequential interest Net X% net prior Return compared both equity X% increased increased X% income XX% down from was prior comparison, and declined revenue the Expenses

up to year under on increased of Assets a sequential were trillion $XX.X basis. X% custody/administration XX% compared ago and one

$X.X of XX% and were custody to compared year ago sequentially. up under up one Assets trillion X%

on up management a were sequential and basis. XX% under up on X% basis Assets a $X.X trillion, year-over-year

were quarter largest of fully taxable last fourth starting our a the sequentially. X% on servicing X. and Let's equivalent in component look revenue greater Fourth $X.X was up on to X% investment last in basis compared year up from at up represent X% up sequentially. fees detail X% results and $XXX quarter, Page Trust, billion, revenue and and million the the with other year revenue

Foreign related exchange activity treasury trading in our quarter, exchange was $XX The million swap and income lower the year-over-year decline sequentially. fourth primarily X% foreign in up function. XX% was down year-over-year to

fourth Other Other and portfolio. lease relating operating $XX million X% $XX.X the quarter, to to compared the XX% included the ago one million loss sequentially. non-interest down aforementioned income down year was in income

by implementation insurance program strong lease during income. bank-owned growth life was growth in Visa XXXX was by the primarily security swap. excluding of a commissions and Excluding the and lease loss related related the loss, trading the year-over-year sequential favorability driven portfolio driven The

the income, period interest I'll with with - in flat fourth up flat Net period, more quarter, X% in the the discuss detail sequentially. other which and was later, $XXX prior million

on at let's Now the look investment components Page of and X. trust fees our

& business, quarter were in sequential $XXX up Corporate the up a million Services our X% totaled and fourth fees basis. For Institutional and X% year-over-year on

performance the favorable a equity translation currency X% million on and sequential fees, largest The X% by basis was on markets. favorable of year-over-year and primarily and markets. up favorable and driven year-over-year administration C&IS component business Custody a driven new up Performance were sequential by and basis. $XXX was fund fees, primarily

quarter's C&IS and X% performance market with $XX.X trillion Both and year-over-year both business, primarily fees were clients at was up quarter-end, and C&IS the XX% higher fees. administration for up custody/administration sequentially. custody under Recall factor driven markets, our into month the favorable lag values currency lagged impacting fund Assets lag by and translation. year-over-year quarter markets new and sequential that

in driven X% The markets. by Investment management XX% The new C&IS performance was performance primarily million to of quarter in up the favorable business fees and were and year-over-year sequential year-over-year was $XXX markets. up due sequentially. fourth favorable

year-over-year billion, and collateral driven for increase as C&IS The and X% well lending increase favorable under securities an up year-over-year $XXX in by Assets was end-of-period were business levels. sequentially. management new XX% markets as up

markets, strong decline liquidity success partially with increase had products in period-end was cash institutional a by by offset funds. our collateral The in levels. lending significant within primarily sequential growth securities We've driven our

up driven lending increase The were across fees lending increase averaged higher levels the while $XXX the by sequential X% $XX Average and in XX% sequentially. quarter-end Securities billion $XXX billion primarily volumes, and driven the collateral fourth year-over-year was spreads. Securities year-over-year collateral quarter, higher sequentially. primarily year-over-year were by and was down was quarter. million X% X% up at increased

in Management new investment sequentially. to other the fourth business, were Moving our quarter business. year-over-year the compared up were up markets X% driven million prior by $XXX were to increases quarter, sequential favorable and Both X% Wealth servicing the and fees and and trust,

driven primarily and at quarter-end, billion Assets X% under increases management up favorable were sequentially. up The were year-over-year XX% markets. $XXX by

and income year. on in quarter year. X, from and year. down the the compared Total flat the the $XXX down billion billion X% Earning prior $XXX were to $XX the Page million in X% Moving prior prior to was assets quarter, averaged interest deposits net averaged versus fourth

reflects while a net year in in sheet up fourth the was to balance foreign shift The quarter ago. margin the of primarily mix The interest increased points was was the ago. basis prior lower and lower the earning X.XX% a year interest versus net particularly X compared from the up X% by interest improvement basis, basis swap and impact margin income sequential year a points. volume, rates exchange - interest net a Average quarter margin On sequential X interest on one offset assets basis, partially short-term net declined X%.

one-time noting net include approximately various in for that non-repeating It's $X did quarter million items. result worth the interest income

that bank-owned During the in place program our life the was we also quarter, to added first second insurance quarter. during put

million income benefited prior million. $XXX,XXX net sequential result operating be $X.X BOLI, increase interest quarterly million additional $X.X of will XXXX reached the other other with approximately in income of a the of an while this run operating full additional quarter quarter, $X.X the basis. on to approximately a net income by and quarter's decline Compared The first as rate by of interest declined income

the balance at and of year fourth quarter. represented XX% Looking for in of US the deposits XX% our is prior currency our ago XX% quarter, total down This from dollar the mix one sheet deposits.

the driven to totaled growth, X% $X.X by the to growth X, and $XXX salaries and pay fourth million were expense compared was and The higher expenses Compensation versus offset base adjustments primarily year up prior expense. incentive staff quarter to one in related higher Turning quarter. by prior partially year and Page X% lower year-over-year X% higher ago. the were was than billion

up due X%. a On translation, incentive pools. was expense, growth currency unfavorable salary driven cash-based partially staff increase and basis, lower was partially offset compensation by The sequential sequential higher by to

to due from was while benefit ago one primarily year-over-year was growth The sequentially. Employee increased X% driven the costs. year $XX up payroll medical million of sequential up growth was expense primarily taxes, was higher X% and by

to pertains overall million, our a due to X.X% in it As over represents in increase underlying in our an changes XXXX, pension total assumptions, expense we expect of full-year in see to $XX benefits expense base. increase expense XXXX just which

Outside driven as costs third-party by up primarily services The higher on related to $XXX increase X% increased and a business of sub-custody sequential higher expense. volumes, clearing, technical primarily and million were legal up brokerage X% including consulting data, fees. legal and year-over-year due services The year-over-year sequentially. basis consulting, was was to adviser well and market growth cost services, as

up $X.X previously X% growth the year-over-year sequential by costs software to while higher disposition $XXX of amortization depreciation was ago software and and million. and from Equipment reflects and X% sequential up increase. higher impacted mentioned of the charge also year-over-year year the contributed software amortization, one were million The growth Both sequentially. expense

XX% rents Occupancy were sequentially. expense of driven X% increases up related the and up $XX higher to year and one workplace from Both million real year-over-year building strategies. estate was costs operation and by sequential ago our

The expense categories. driven Other offset quarter, was year expense million ago by Trust sponsored Northern and partially primarily operating increases in X% sequentially. down sequential X% golf tournament the in from down operating by was $XX one staff-related, prior other and the decrease of advertising,

goal expense expense, rate our our Value XXXX, in XXXX. savings for initiative, run that on with in through we realizing the - we've started million $XXX of we've calls, been As by which base discussed realigning Spend previous

current results expense in approximately Our $XXX quarter million savings or in reflect annualized rate savings. million $XX run

for productivity the and emphasis Expense management sustainable investing Value broadly more right not core cease around a across business. on of and we is productivity further to embed focus in Our striking continue culture efforts will as between a the balance company. we expense and management the Spend growth

the per prior X. with share turning to $X.XX, with was were billion, on our earnings full XXXX results are flat year. Now year, in summarized down Net Page and income XXXX, X% $X.X compared

On the We equity right compared XX.X% XXXX. a years. return outline for of that for the XX.X% to margin in out were of achieved this the non-recurring year on impact we both page, called

The and outlined unfavorable by are full fees business primarily year investment growth the new partially currency year servicing grew trends in was offset by Trust, revenue other and XXXX. Page on expense translation. during and markets, the The X. X% impact of favorable driven

Foreign treasury volumes. declined market income by function increased foreign decreases interest XX%, decrease income volatility net our XX exchange and margin interest Net trading within declined lower as a the swap points. earning Average X%. in activity exchange driven while during client basis as well increased year assets by X% in

are charges were were that both basis the X% On expenses in on from up a net growth on from up Adjusting reported the in in year. expense revenue The X% result reported also was and prior page, overall XXXX basis, X% the XXXX XXXX. expenses prior a for XXXX.

Page remain achieved and the which The common Tier strong and approach. of the ratios of minimum XX.X% equity X.X%, the under ratio was our X% was approach to with X.X% standardized requirement. X bank turning at capital our the both advanced ratio at XX, supplementary XX.X% Now corporation leverage under

fourth a quarter. of million of combined $XXX cash payout to million. approximately cost common repurchased represent factors and of X.X stock two a stockholders ratio These quarter, totaling at dividends the we million XXX% shares $XXX During for the declared common

through years. dividend Northern X.X%, new the rate perpetual five dividends $XXX at of during in for fixed a preferred million Also stock this quarter, expected be Board of Xst this Fixed in paid paid the and fourth issued Trust on callable our declared are a life basis quarterly at of week be Directors first with meeting issuance to earlier dividend to XXXX. April rate

the issuance, preferred expected initial dividend is November in to cover XXXX. of the first $X.X Given million equal approximately quarter and payment will therefore months the five

be million these quarter. fixed rate a forward, expected to Going dividends $X.X are

January this Xnd C preferred January Series The issuance stock to - all redeem proceeds of of XXXX. used in were of shares outstanding on

First related include XXXX accelerated C will results quarter million $XX.X Series in costs.

back to closing over Now Mike comments. let call turn the for me

Before we objectives key about our XXXX. close I these and Q&A, our performance open by in up the for financial to against wanted talking call

between a to XX% financial target XX%. primary common return achieve Our average to is on of equity

our have This XXXX, XX.X% year For achieved our of range. the targeted ROE. the at high end of consecutive ROE we was was that sixth

and achieve leverage. have focused operating fee also both profitable are growth driving We on and objectives to leverage operating positive

last leverage we those eight achieve in the and not achieved years, of have leverage XX we in Although fee years operating for operating last positive positive XX seven of XXXX. did the

enter profitably focus are As more value innovative with services to intense gain our stakeholders. clients create for and clients our We differentiated and to to rapidly evolve clients. providing and investing we we this do for the experiences capabilities existing company productivity our in by XXXX, continuing the on combine our and improving to new company our grow

earnings your Mark the and conference you could would Trust's to happy concludes quarter answer fourth be This questions. participating prepared today. open please Thank David, call I again for line? remarks. Northern you in our Jason,

will Blostein with [Operator Instructions] our Alex first come Goldman question Sachs. And from

operating Mike, talk the when up guess out X% the expense fee range picking quarters, getting still talked fee number XXXX? the I growth organic organic last the guess on into you guys in you to guess, total just question with leverage, last as growth. be to one I line point, in is there, few fee about of over kind you growth, growth about I not X% look organic

expense pressure growth of fact not and this whether I'm on the starting year markets And should tailwinds full wondering to should naturally create or And sort we then off very growth achieve more you of for or are fees? just strong to rather that sort of level point a secondly, kind expect expense the of XXXX. level into the of could that sustainable more be despite

the a positive that underneath about I knowing focused are achieve as you which basis goal generating earlier, to the Alex, that an thinking is I fee if you're of is operating higher and So we that way, well. framework well, mentioned think on as the leverage, the on bar, that organic right is, objective

But why indicated, when operating we that. an that because, the we'll fee organic expect as stronger, leverage is from just we on basis focus reason are get more you markets positive

achieve I'll operating challenging do It's we why environments when have more leverage. than call in, that did have it, that tailwinds, In to the fee growth achieve primary but around we that's important objective to lower not the XXXX, organic. organic it's

that, if certainly have here year. XXXX, it's the as fee achieved And far leverage had positive into for same we're what trying that it, to so something shooting And would operating going that that's we get for, we as objective. the would we're

million talked aspects this roll case, as pension, there can increase you and to and things will, for about of in. try he to certain mentioned more focus on to $XX the as cover overcome the that Now, as look for like well. detail, to objectives Jason just that year. are go example, base In try expense productivity into We the still that, if

the year different same have to we're the achieve it, can it's So far as from haven't as to but trying to changed We objective. achieve, year. goals challenges what

out bit benefits right the QX the for little like are believe flesh on a for one it we quarter for QX. Jason, benefit help Thanks. the million Can It in to an as one-time. point what in IR maybe anything 'XX I those $X was then And IR. us jumping-off sounded here. there and of you bridge of that were kind out zone cleanup a you

Yes.

$X and am we the And million did number non-accrual, - a was a couple headline one about another different non right. we couple was then but we have of that. higher. million. premium of some picked a combination There much, the FTE little then You've It's headline the didn't interest a is a million a on that in loan - $X was got of items. adjustment up It's thing of dollars on pay-off

So to you you the add those factors get and $X million. together

Our next from Research. question Buckingham with Mitchell will Jim come

kind spiked. as if little about period-end talk Is we Can sheet? because really we of the much, sort growth cetera? weren't maybe something we deposit around you - transitory there just It average that bit that's they or a that XQ continuing look should of a balance that should at that up et into actions assumptions up Fed our balances, given take is

ways. you're Yes, high. - this actually but back the It already was record come down sheet importantly, as to to tends and end spike more than the put looked come we've have a but it as at not high. was but to the wasn't, did right. of normalization it Obviously, It large of back if particularly is This clients see quarters the a in I years. of some was close, different it more there. record, the higher work money you the end the know, normal, market balance into has back seen

And just the expenses then forward. and a line maybe going follow-up comp on

you - a the on of growth Just had headcount X%.

you with kind organic do digitization, to that we but of growth about keep headcount growth How trying of upward the base. we're expense versus growth, to about from employee line pressure - think specifically? higher think we - of kind do do kind below scalable how comp So off how much starting desire the core your

I growth line at there, and it be QX may There 'XX get press Page got more at on the the couple and release look 'XX comp you've X% things. there. a looking might of - be you rate Well, a QX X of and versus you

about that lens was over trust my it to the was thing So what the growth, from revenue frame. say, is X.XX%. really time And was what growth fee first

comp just of going including to growth lot we'd leverage key our and a So expense to to first is is tiny with in of in it's expense in a where bit bring see, we've though got - bring one about it going revenue get the lot we're a our did comp. line, higher to we even expenses And than that of line a like items are it's that, hit every year up, going growth which good. revenue - all, of on

second The got that, for thing about making. general, the to think - that we've we're us is technology to in investment

comp number the are of is And we're through coming making - so that tech a some that that reason in little line. that the business be in may of the investments part higher that

base right so the are just pay to you it coming the call for year, line. the $XX always third, into guys we're going have it, to million about thinking next And million effectively, comp adjustments way $XX

here, a you the so to about on the of and have And growth. of itself base in point that in to we lead going that's business almost think that

So ways different those are that just think about a item. couple line to of lenses

from comes Betsy Stanley. question next Graseck Morgan with Our

over up insight in I technology you've in see your the how on trajectory budget to you do a that give regarding past versus decelerating, that tech that I just follow you how see wanted non-comp sense think give don't that trajecting over to I you relates you then Maybe tech? shifting on know us bit know it understand, just little comp given but is. as and is what as a general. Thanks. to just guidance, could you time time. little some accelerating,

Yes.

is and of next other it. to it's outsized we've data So about we areas, horn urgency is the you in year. high think points and it couple so relative in think general of expenses sense where as to got A as tech you're about right obviously, on a

as that are I point. said, XXXX. but to about. into coming is, convey at we this on give don't what And this we you One about what to expenses, high know wanted we we want point degree there take know some of certainty that as we tell a want at we to step we things have of, back, We thought guidance do

$XX going the somewhere going with general, hinted million, out. business have. comes One, based to on just three just the million those to to buckets, those - line. of I and base in pay to we ago couple minutes about a deal that I'm adjustments between down that put see, know in we're So to $XX that in compensation We

little third IT have now look XXXX look pension right about XXXX. being - $XX higher, million back the on year that's to we million talked will in going as sense it than we and it about Secondly, was a higher $XX is than and is a depreciation over we then like, be of for what

is some it, fourth the much that can so to Difficulty] year-over know in on for develop a do of it's quarter and reflected Now, hard we higher. but we of - that us [Technical

that we So I those at got this on aware key to are point. three want think everybody of items that of, - sight line make sure everybody we've is clear

Now, do about depict in increase, a second, we more IT different think actually lot the broadly items. the hitting as how of we and is budget it line IT

talking were we second. stay X release there press a just Page on minute a ago, the So for about

a different out impacting at whether much went of IT ago, not I those items, from they're leverage you comp, if to at, how to sense because look and all line can growth a line a and actually try the of different get second pulled externally talking look of these items about components there. sense each do which I we're And of you back areas getting but just were that we get those see

benefits there pretty which biggest services. item impacts - very it the and see also equipment be smaller, meaningful why hit is but software, heavily still compensation, - in will that outside is obviously line employee And elevated, but obviously you'll and in that hits

was still estimate recall $X the most tech XXXX? that you're it thinking billion was that the budget I is that recently. in was around And given

is bit about and that rolling - this Mark. well look as capital billion in average, at both of XXXX; per it includes investments. Betsy, over a expense year $X Yes. as we operating three-year XXXX, so a a Yeah, XXXX, little kind

comes from with Brian question next Bedell Bank. Our Deutsche

Maybe just impact you if net can you seeing talk question then if far. so, interest the quantify the for that, any leasing income And can and so NII. sale portfolio? Is also if of what on there XQ trends you're from deposit into a about on future

deposit to want just trends. I - on write down So

first C&IS hit. on I increase, for and in on Norlease business pretty of really on impact both trends minimis de NIM, think - that on the how to it's strategic across perspective of And - side. secondly, a about, us On that very know clean side nothing deposit then the the was on coming accounting it's more focus broadly, in the all Wealth both that

deposits some on say we've And that out sure clients the in as custody side the - of the sheet. initiatives no have our Wealth clients more initiatives globe. make the funds across to well. in we side brought then to can it's the we side, been of grows we the coming Wealth bring of you on there as strategic volatile about, the we've getting balance we're as talked That's that - held the some to still business, there everything from about I'd aren't what and had a to about there institutional book the particular, good told thinking money in on pretty on aggressive talking the we're we've we're as but doing XaX is share of And and deposits -

XQ on end-of-period based to average. those elevated, was the basis, an but in about growth you're course, doing of averaging initiatives? know I if - Just think expecting that average is we

more was No, I deposit asset came the think really the was little NIM, - a trading and higher the about It there dollars you the billion you couple there about activity. a note, side. of related item from didn't if bit, on that if more only think but of come other think from side there funding that, then side,

And that significantly or would at be so there's out call deposits different. I'd moderately that would point this nothing lead say you to

the organic I up on mostly you being then Management from commented AUM growth, think And Wealth on markets.

organic organic versus Management the that that's for Just the still growth in a if you've wanted on Wealth digits? to that a guys think to while. comp we reasonable mid-single of comparable business. those strong And for of pension you the is asset to of a sense trends the growth wanted of growth are in a cadence still that's still sense, as trending I growth just get the to expense servicing organic growth? get expenses, similar been driver the about of the like you Even headwinds a would be rate think and the mentioned growth, that side, thinking towards with rate about IT

well, first growth with and do business. Let very on within resonates seen that it Management top come business we're differentiated nice and end the really the see side that, of are me hit you actually and market. the very this guys the trend The trends the or on approaches at through to to side Wealth Wealth well and Mike be driven, that goals market was able financials year business the well, is has top and earlier is the that continues to the and continuing the doing some that touched this there on

family for we office basis numbers see and the attractive. is basis. while can That on business faster. that We a trend report growing has both on a sequential been it's year-over-year So the going a and

it And side a the little couple am then of the bit separate going tech-related more that ways. we'll align there the expenses C&IS a is I towards of between differently the expenses the to how in the second component see business. business. One apply is

the things in those for model, are metrics be of about more we strategic our to As a think like business. side bit allocated little going things operating C&IS the

that on Wealth that in Mike about business. working side the probably the different on ahead also And hard ways. business side. we're is C&IS our there investing in they the said, earlier investments a are That digitizing little talked of the

digital clients, position even more to even Wealth seen transformations foundational interactions goals-driven that how better marketplace and how more to accessible is take with think it like across we have have Wealth about our Management, better reflect the make can and technology. things starting the to we've

digit growth go-forward And level digit? mid-single of we're of that single area in organic about thinking still sort a on basis

Brian, you confirm, just are corporation a Wealth to as talking the about whole? or

The company whole. as a

Yes.

talked So that, businesses, Wealth so Brian, maybe Management. across kind address just the to of about Jason

you of strategic That's growth that nature is more. as in see, it. to And business mentioned, solid continue to even that accelerate healthy We or our increase in imperative the business. again, growth that

business. higher We're seeing our in still servicing a rate growth asset

range, growth, its the see imperative growth It's at to to for but more that it a we healthy continues scalable. so that yes, And at strategic of be business to rate. continues. the And continue is, want but end that that grow lower

just trends And the also secular would comparatively of business, asset with the certainly our asset management industry say all aware And business, our would that's there. then management well. I the impacted add, in well I we're is performing business although

growth, And fee such across that that then just increase a in they are meaning mix industry. to seeing the organic the flows, change way is compression so also experiencing it's the but the offsetting positive you're able

positive. So it's

a at the two is than it that, rate other businesses. lower said Having

the the at put right now. you still rate to lower kind we've that organic of That's at We're So being mid-single company all of fees your point, about case. growth level together, digits. our that end talked for the the

side, that's our Well, growth mean? much lower harder at side. executing priorities that end our focused the that the other the have growth on on continually expense why savings, you expense work we that's will, get are does just the company to key what And to So on but of of for productivity. our if we're more on the side those, is why when strategies we improving and one on

So so execute if on that you to positive deliver focused trying operating strategy, and the that's that leverage. fee will, again, can we the

question next from with Our Usdin comes Jefferies. Ken

over-growth fact through assets expand have that saw you rates bit we've said of can see now in some you stable underneath that this asset understand off earning you gone much of you help us repricing like you us from deposit the much still either gone happen dynamics more And sheet, little repricing to - could has stable how balances balance the the Jason, then talk the how can the a a you come as could quarter? how might level? much terms to in secondarily, through more of that and NIM if stay on here, Thanks.

Sure.

are quarter, think on on - So it's these spikes sheet. balance spikes late the happen the frankly as of these period relatively I short the time first, it's in that a

And it in comes pretty so leaves early. and it late

in, looking and impact overall just end it very the doesn't and spike so we're - frankly when It those really of does not but dollars a And come doesn't don't the through basis. balance obviously it anything and - - It at we're doing that think day. - it spikes fancy the much the NIM much. it I on drives daily so sheet NIM

out think I as be your necessarily spike And you then we think as thought look should next quarter, in don't into process that reflected about.

So that's more from a volume perspective.

As come you that to securities down. I do I likely about in - although the that's think billion portfolio, $X did that, hint earlier think of kind increase

settlement what more led happening think will We do That's being securities the more were had an securities to to security just increase, abate. at trading longer-dated nothing average abnormal. higher I I really was of some that little that that time, and think bit process and that more with, to on. trading the idiosyncratic led And

And on rates call, than impact last when at forward is the can that looking actually spread. basis held and probably all we did we that and fed XX more the we to what to that points, thought about in. a or into we maybe is we talked in spread people funds fourth thing realize quarter, see was to everyone an that It quarter. away. that going And at have have were then first impact attended XX think go conference an LIBOR there more we the will As going the of that

would the more but And that about It for so delta if NIM quarter. on for even anticipated impact that, on what expanded think that next that it's holds look the right that is you now actually if fruition. has little now, we land, compression that XX an that and bit, we in, come would point to factor have basis a X, at

the side then to what with still could much reduce clients just do dynamics have ability type us And have do of is you you and the how Like, index just reprice market the to balance opportunities outside your on about talk rate? You going sheet? right of customer discussion deposits. the of

so just It's businesses. incredibly the Yes. between different

the by a more there real lot that driven those in side, And in are first deposits of the clients all, shopping are institutional so book, on then our EMEA time. And clients.

tight we're those us And only on get we going decisions to gives so can the and frankly. - market we're what very making

a leader not and - there. to so And position price we're a be in

suit fact there to of side anchor and from marketplace. other the We're we much that business, balance the want talk assets the wealth can business, dynamics, what the on we strategically product sheet. be the about again we and more the in sunsetted there brought of think very in And we XaX and about the different looking funds out

do some about how to you depositors. on we want give talk to to attractive And we want it, we very - large headlines for be

that's always be end less more base, retaining so going we're retail to top but the to much competitive And market aggressive where we're for to be extremely how we're and - to of about figure out at And attract the the competitive. client there, going top more trying our depositors. and of be

from question Steven next Research. Our with comes Wolfe Chubak

some some changes regulatory in to It constraints. relief, XX% just looks swinging peers capital. can at of are some and of to with off your past, manage I speak time. you're running you given And competing ratios for willingness or the terms are considerations CCAR. regulatory those the - to in meaningfully with ensure to potential closer RFPs. of through, So of hoping higher to elimination SLR you to you like changes or the that G-SIB plus, that maybe how the of over competitive I'm discussed come to lower least as versus start constraints need some target a informs the wanted could a firms was from deviate in manage appetite leverage unpack question I just to the for wondering on of these know RFPs your way that you've don't business just such right if

of expect, flexibility very good So to would don't we you our about start capital. It's as Mike. with levels I and regards feel first Why capital all, our off?

highlighted, conservative on you've processes formalized focused always want business yes, we levels be play and RFP favorably the the of As what just we safety Management on and and can are security, would cognizant for that into strong our sheet. competitors, capital say large implications compare family broadly, also dealing business, to to some with our more Wealth where, for but they and subjectively, even our offices, balance looking I'll are with

And of so it's for the business us. a part strategy

Having like said to needs it resource, any be balanced. that,

levels those that your that comfortable competitor are. And flexibility of where gives we and capital the so move, we're that are, we're point, to with where us our cognizant To extent more on front.

would is regulatory I a from thing And then the lens. add last

they've front. that, talked are said Having you've As there the re-categorized also about, recently banks. regulatory on changes

a which the only as We are X model. nature take X happen to a unique compliment, be We business bank, Category bank. the Category our reflecting we of

We're X there uncertainty again, we as that But our work once implications have out anything changes of expectations. it until mean, capital not per se, also the far way concerned about they does on for Category as whatever roll management through some may but capital mean just to is management us. fully

helpful No, And me. just follow-up one very color. from

be in gauge sustainability I question the strength the revenue strength, was of quarter, to should could core we some the that the we in cleanup the versus what related how and a one-timers guidance some source income impacts, level Just line. a in other on hoping of for line of for appropriate that rate noise. a and given million XXXX $XX run think adjust or on of that the when XQ. BOLI it about there's always Even other looks just was And like recognizing reasonable mark-to-market

Mark. it's hi, Steven,

in you first adjustments the the on into a will would have been that quarter to there. continue Visa mark. was for last the benefit, that that which say As that would have made quarter, million about adjustment we the the negative more of line you I - There $XX the bit said. bump said, was a came Jason that a $X for BOLI on - at lease, little drag closer there of the adjust mark-to-market a quarter, to if million this up sequential we of favorable some like was benefit

related higher as you when and BOLI, well a the that have take account quarter, This bit into probably income credit miscellaneous fees, we than normal. little as higher and did bank

move does at That way strip that. And because the top you be layer it could you I several in last around if would that at average the of quarters. some looking to that $XX an that line look can you're probably over you one non-recurring is One had million it. that of of out would in about say items way then we've BOLI at do line, that on look theory

from Hawken Our Brennan comes next question with UBS.

about your just NII. to few normal of wanted was I help the our conference XQ best think NII. circus don't call. it to try is from have questions a way quarterly started far, a - that to out And just with that know does the from one know had like about circus, noise. and it a here had of welcome think us so know been the know frame and follow-up quarter asked I course departure forward, lot Northern's predecessor to a going in of seem I but your your I I what plan Jason, there is business.

about XQ, of bucket million. shrink got portfolio, We've over-earning an about could I'm $X lease you we earning asset bit. sold you some to us a frame if help so So the average how think to that guys need of guessing

the LIBOR. about should to this NII all How into as XQ on fed got how we will weigh fund based far? go tighter you've so on what we You've think seen

of $X talked the all one-timers, think think Well, I about got One, really million, about leading another think way the it's you items. those I - it, $X into pieces. you million. - couple Brennan, The I you

Secondly, I mentioned the LIBOR-fed fund spread.

a a of that, that think place I because this should $X in of didn't benefit year. positive important just very you the out. if think to mentioned even how full this you in be quarter, experienced assume economics which, million. then have time, that's The same we we it a about place now having for type remember, one, that BOLI, And you as last

to point. to mind, my you're on it - about thinking those those buckets with talked us, big a And against leap are so the four then lastly, We'll to count. is work going the if from but starting sequential are and we go in basis. haven't not XX, It a use XX as XX, year, day to about

and a other in we this looked like think of And was then it a sheet, jump at about the when the average a it's big liabilities the - to bit highest it's for there quarter enough of by couple we - the the skew average level is been $X it balance that temporary? about quarter. Should years fourth was billion. Obviously that a in balance

unusual in is something wind happening So or will XQ? there that should sustainable expect prove that down to we just

and No, of at were that I trading do was to had earlier the that for hinting were with that of securities time more had more longer. settlement nature the in mode

to the what so that drive, And down portfolio bring a more that's - I normalized securities will think level.

Like Okay. TBAs or something?

do. Mortgage - - normally don't that some just yeah, nothing we TBA mortgages,

little a up. obviously And to higher and Just that those settle security mix sitting higher they're sitting. getting level we're of items as led of yield those not the on

going, talking it's just other effectively is NIM of kind think there question in a about what of mentioned, I mode had is we a where The expect providing gotten we about - right, lot guidance. of you're in and thing I

down And will be do to X% I'll to at - this X%. point, will say X% NIM think X% NII be down we

gave had - And we you so that different launch of you get think square we're to say but point. every quarter a it's handful not that, give to good to items guys I do a going to that off

this think I quarter there so putting out fair. it is And

minus that X% the XXX, The And that's base off we what reported number XQ, X%? in right? should to

interest the of reported off - income The of $XXX net million.

Thank Yes. you. Sorry.

just And to it's to going be indicating X% the super-fair, X%. so is down XXX indicating - not to not that's be

X% down items that dollars, to I we'd in through. Just the expect million walked be the on X% based about to XXX

NII, it. NIM. not Got

Right.

Michael Carrier Bank of next Our comes question with America. from

came to that too areas on? you up one are necessary pension growth investments on into the any of the see like like look given that of some items working since real of XXXX And tech, much hitting at I that some was op you and more year, expected? the the maybe was expense maybe function or estate you - want comp, could when repositioning have of on been not year lighter some savings, there don't than heading mentioned higher target, a it focus the but leverage you that during organic guys

expect Yes. run have second, we've the payments effectively. mentioned to in higher have as that which rent occupancy that we double short we I'll the be start double some - with we got

where long going for new been we're So through a number to a building. building we've large Chicago very sheets those have of to time a in transition from a in close of it been a

is this the next move month, a going We're people take in of to month. starting move to place lot

so of midst And that. in the we're right

the in we're making is facility the that work is of imagine that can new you so goes lot paying old obviously sure around, There rent taking we've started move a and also place. facility. And still

the that's the to footprint lead are estate a this there perspective level of And of in areas half other going year. higher first rent from overall real to a around

second the half get in year, the we should Now, that. some benefit of from

down rate, that? actually run want to anything something And Mike, are items come so We'll that that see year. the that that's we'll add eventually but second down. see grow you expecting into half we line to of to actually come

it is to and what out question first trend came of that. is again, part and XX% so of our cost a technology at X%. of much the broader our grew of so there the your One, that depreciation pulling perspective if you the look just part from it there back year, base and overall, and Yes, the represents about about and year, group the the but expense at I'm is going expenses, to our expenses - this comment technology for IT amortization, base

XX% about cost look at our X%. you grew at the it If base, other of

XX%, across costs we Value would say that new I importantly, for part, so the clients, to objectives related the hitting Spend on bringing to for on And hit our and on there. the and business, initiatives most the

we those. achieve not that it's So didn't

and security; the technology to technology then technology, if is well, what trying think there, we're is side, say, or stability, think scalability technology. things two about is that there you within achieve about three you primary One there's our three And I and happened on as there.

the you the I stability into would expected look part, safety we which that on absolutely And that to were going will, costs proposition, sure being the that the you there we but were if you do order and that in for your think year, related make ended year, higher had have value in clients. provide the to are able at being up costs to than if you that

we And certain you if demand an clients, some of part we're our aspects didn't on owner the asset greater achieve. just need in environment platform then the it, just where likewise to say, able are clients scalability for, where asset the greater level on power, there the activity of of large to computing the I achieve call is scalability, on our that I'll would will, on we that be there and manager of,

scalability of platform, each a that. strong, not the are to stable, safe, we want those increase with we trying ensure to So only three, secure we but have on

productivity that greater capabilities providing is of So get also a kind lot of clients our business how do our also out technology beyond strategy of the focus we of digitizing the platform. and new for saying,

a Tax quick follow-up. bit was just lower. And rate a little

You mentioned typically of terms Jason, we about the think guys just some you change I any, guys range going like, of when - in the drivers. that forward? expect

I'll start.

going themselves on - XX% the think do think level. better XX. of longer point. And some Norlease, This something worth in to expect Biff think talked call, some be quarter time the XX% is at which to assumption I a small calling this at I of should even I impact and mentioned out, the we last term items, other in had from us don't none but you

comes with Autonomous next Wildhack from Our Rob question Research.

on On in the when the tone about have front? expect seeing discussions an to recently? think us update what those how the having with content And on broadly, And or forward? maybe more at pricing them in the then C&IS you you all and landscape conversations business, you're clients, evolve can you're going you give changed competitive would

about Sure, I'd be it. talk glad to

a the are of activity and C&IS And amount that would asset well, I opportunities changes, broadly, say, I certainly specifically, lot about create there. would optimistic out growth We're is they these very there say challenges. tremendous in servicing. So a of

me I these think some minute if to for. So a just I you're can looking give across, of run you trends that address

their parts as the So us. in more needs opportunities that about more asset you of greater even being models, owner they the for stable needs think certainly lead and if space operating just about asset we greater in might owners, have think to

increased not-for-profit opportunities of you also So sector, to is organizations. investment presents about to for foundation space, use alternatives. Universities, side grow greater large to of the manage where if on continues healthcare endowments you the they've the area the think healthcare that an us and the and have assets mix

needs greater front-office And for that. solutions how capability those call those managers. as in them out have what that and we manage And and to invested a that's gives are they result, why because do portfolios they the we've rolling

changes superannuation but consolidation again us in you us. presents great If opportunities seeing look within been for the the the growth marketplace decade, for Australia, some funds, over large you're a has superannuation the example, only not opportunity complex, that for in likewise, of which last and

allocating of clients, asset funds, I thing in-sourcing is more about management that think have then the to very a the as last to is, What of lot asset the opposed say they the as to you managers. the some large if space would owner asset capabilities asset sophisticated the managers. actually sovereign operate to And so are need wealth in requires

greater needs have and they of timing the need nature they what and is data greater. So

in lot about us. drives you provides that That that the them opportunities a investments it's position. hear because for so different putting a And of now

business, we if us asset these create aspect it lot the business side space, our and asset we including managers opportunities at because the of in to of for it that then I side. management servicing secular asset causes management talk to well, does the look trends pressure feel shift And a every on as about their operations the the asset but

And so looking they're that to presents us more activities. opportunities outsource for where

middle-office know, meant as what historically, in we you do IOO. Now, and mostly that's

types now why there outsourcing by it just are and new some in-house were they We in a opportunities part done of should also they previously everybody more are the activities that those be saying, but that should marketplace, their seeing solutions. those of are largely of do

the we them, not trading there integrated have provide side and efficiently core and really So that to would that's them that we trading solutions, that's better an can that something enables essentially are if think to trading more we do like other where it to outsource and them that. them service move about for you opportunities

years, for I growth has continue where, opportunities would alternative also to fund just us. space presented hedge the asset space the managers the with for

nicely, you fund grow hedge business large win last Our to mandates, saw services as this continues year.

other us, we've for of also, estate, then private infrastructure, those share for areas so equity, of where position or opportunities But in larger market the it us there, real growth had forward. going but the parts alternative a space, are less thinking presents market

the that we So just when in that's the growth we we talk growth, about why level and to we are bring want optimistic able overall, a make that get in to growth so activity about high of very sure profitable the that and business. on we're scalable a way

Juneja from Vivek comes with question next JPMorgan. Our

talk How all last volume comprehensively continue question, related about just seeing up are lot areas? you of following you pricing? A the expand of Mike, couple on these questions. new so that to of as opportunities. into about you What a

doubt Sure. that more And want all there. of there for Good less, clients cuts point. sector is and no across parts that

So the fee we just at as look business servicing ongoing. in pressure asset the

we part and anything. for and of do us, then ongoing So repricing starts and don't then per cycle don't equation. I see, organic the growth we necessarily that ends would se a say, It's that's

but they if service, So not lose only to client. happens we're that - client the we order maintain if drop always repricing in also a netting the out is there of or

large levels, the is asset the because on that aspect it asset a is, pricing dynamic based other portions levels. is that, just Now, on of the of with business are the based which

see greater you in the fee go markets, as that's that fees the pressure. mean, so see when does appreciation then we then you the get up, but benefit And yes, where greater

look the overall is And terrific they're that but we're it's broaden It of for trying balance parts profitable to do more their that's us that, more So relationships client relationships, base do these to the for going focus so markets then the at on that also create up. what fees. still why very are overall. them does

bend or tech growth said, little that you tech bit trying all areas, spend And build you're you these yet? quite need rate as a as for and capabilities room of the to to there of that, not is the

other think there a those when is themselves spends, when amortization is. not expenses later, now, that of here, which Jason technology opportunity believe we've capitalization about, have it, developed area happen do in how expense Mark manifest increased is mentioned costs mentioned, they I comes that to these we CapEx there talk that where, we but We an is on the in days, Mark we to lot, has it talked think more you focused, only focus a been earlier you more be a the which that's able cost about much the and way. and think cost-efficient of has lot through. piece about our tech Well, of that piece the that side

I they're agile all and with other familiar methodologies. think

time, my lower in Well, savings efficient then still earlier will it's results it capital hit that those, stages. over in produce but later we're amortization. deploying through That, the mind, and in more spend, first

I if funding may more side. on the One

the have Your grew did fourth quarter. the your of and around over course in shrinking borrowings well. turned again deposits short-term non-interest And actually They been bearing pretty conversely, XXXX.

what's non-interest outlook both should or what turned have of do and Is on and that be comment you you can basically deposits your bearing borrowings? So those? plan with short-term growing - do to

Mark? start, to want You

Yes.

On on we're talked inflection the Vivek. we especially I I an have, an capital do assets several side, calling on on demand what that with depending increase investing. be off they we the that either balance this deposits, before did say occur fluctuations doing positioning sheet might or the We've quarters, last institutional quarter-to-quarter don't think over sequentially, see with own their would clients point. their

have saw on to here, quarters. would we a we that in know that out trend demand out how don't I just call with deposits So fourth the several starting over what plays quarter. specific We'll new see

would say to we've line, of at leveraging the doing that would And back those deposits on you non-US ago, now, this that point, last there that some that running And year we five level. three, couple itself are - the ago, borrowings. but down within that lower short-term wholesale over manifests quarters in the also higher a kind look a four, treasury say office on a discretionary is if level. had And I quarters, I borrowing both side, of at the area the was short-term a of on

opportunity So with would isn't where that. point balance that kind gross tripping - sheet. The it's the through leveraging go really we just there up function at the trade of actually the a to of

we reduced discretionary kind some do. we've of of So that that leveraging

to it do not say It's we wouldn't again.

environment isn't trade that for us. Just the just rate providing today

Our Harte... next question from Jeff Piper Harte with comes Sandler. Mr.

Sorry Can you me about hear that. now?

Yes.

been about talk line, pre-tax top I kind tend of of first of our compression kind saw years. the deliver what's the on guys In expenses, but little let's XXXX, kind growth a a margin So of margins. with to can you ex-items think in more of number

given keep expansion with current we that environment you bottom and to margin kind return in should the kind near need of rate that's and of the with facing to expect of a and end those organic Looking to XXXX us? range, kind things the investing of growth XXXX even fee

start. Yes. I'll

we're the we lined and And they expenses just reason looking the our that different at Before of against expenses nature is up margin, we to our are relative get do pre-tax fees. the the revenue why how to streams.

drive we is And bring saying we to that to because other markets things, organic that's leverage. we be it's operating but affected focused focus no again, that that ratio the fee down. want there down so first. on part want on by question able on because we're to why we're front, positive and And That's

other the you as go revenues; you net income. some of Then but with FX then, by income much know margin, and some through, lines, it impacted if other things happening like the what's more to the interest yes, extent, gets to mostly flows pre-tax but that

gives to quarter-by-quarter, as we and in of, far that what trying as things you indication from and - we're not provide as deposits deposits that some And pricing marketplace but know, like the see we only predict year, it. rate drives to it's last activity deposit project big hard and and in drives that's a times it's tough at that it in every really factor interest year, also and to that client but in

then, answer down. for up certainly our or but your margin go up, - saying, that of our as of and be going focused frankly question to are operating like, your your are just able - that's It's We just are are go is difficult there more control it well. pre-tax control. is So aiming out to on it's it out factors are to positive of, there well, that not to leverage are that positive to things aren't we fee forecast,

kind stable think So expansion like attainable. and of of that when holding - really kind you of some interest pre-tax of declining, that market environment trading, potentially stuff FX should the margin rate this is

on right, a can make depending Yes, can difficult it it the environment, tailwind. more - you're it give us it or

secondly, kind about run of even should we there's we redemption, kind but first rate you should looking that, and in And what net be of thinking on the just know review issuance weird the can impact preferred after then I preferred year? stuff next be dividends what with at? the some quarter,

Yeah. Mark. it's Jeff,

at redeeming at first five-month that dividend would million. remarks prepared it - essentially, need So to recognize if first also new it, our the look the call Series $X.X would you E quarter. will a costs were, Series when back we also some look the upon you have from what in quarter, There is which be in C

each $XX.X we and D, you first And Series which third then see, So million. quarter year. that's the have the in of

million first quarter, at into new the right Hopefully $XX.X in looking point, if the we could a million. you're normal second expectation would take you $X.X like. C. for the And helps. then that Series down million, run this probably preferred dividend you that at you'd consideration, dividend the quarter, don't to quarter in around and the - E, We if new rate is, have is be come if which Series offline, through where it $XX talk our that all So the in

question comes from next with Brian Our KBW. Kleinhanzl

that three the question pay a mean, already? investment in on depreciation that on that items have then additional you're base Just adjustment, I have that you a laid consider quick rate top you these be of to you you out, items pension that growth it? investing IT are and the going expenses. still Was the doing. Are expense saying you're to normal included the all these expense, three

of Portion it.

always get - adjustments into about So to factored how we in we pension We're we growth. we're the can - leverage The that's that. mentioned still pay base it. want do for still ignoring not obviously expense are one to everything that forecast, not anomalous, that's is and it's think earlier, always our Mike and expectations -

leaning working but that's element our run long-term assumptions. the And at The in and increase, into we've part into in And I'd factored IT then pension even to then spend the going base rate. known the hard we're be least, we're that pay depreciation, already adjustments still the more depreciation short so run not, of IT cover say, try to fully third of that. the to

about is but there the of we of we've And element the so sense in BTA to urgency the in sure and of key the that's is across difficult one have strategically, we're get given near long-term to it. we do it - And the portion reflected items including got own itself there, depreciation it to expense leverage the but a trying each term, high increase key equipment point expectations. be and some a software. certainly to At do that's going making our

I to And or then to to you the not the regards be. it where separately, in something at strategic there? point want growth mean, hear you management, need bigger do restructuring Thanks. with taking again the organic more of unit that kind what actions I do asset

relative you our very a at I just but business management that within then performing it think environment is We the the lot talk secular change, at we it's say feel looked positioning, because itself. competitive the I the to asset others And good profitability, if looked very through growth would is at sector how well. a asset the just if you you repositioning going is look management strategically, about and business the performing well. about

also I doing time, for what is long we've more And which talked but we've areas and is, years a the repositioning mean higher been of some though towards strong by and what that few areas, growth, index last scale the about. value-added like certain liquidity, like been had in I over

So that. things like ESG, quant,

you they from perspective. strategy, it those growing, so see are - that represent resonating, the they they portion longer-term any if pie, although of a but the time of financial And takes areas, smaller before a are you impact like will,

I institutional it's you not But looking and say distribution are the that. on we will, the on strategy call and as side. far our if also but I'll just the as I on about, thinking bigger, have would - say, would looking as product talked it, - of side going side We're well, well, been executing at, I

the You the saw well. that's the of fourth but that where half gone in quarter, only not second year

but enable rate last to intermediary we again, saw the of that's business a that in will that which the also have you is us platform, think, capability already utilizing are there. that we acquired type technology essentially we small, And is the that then year Emotomy, within very a But space. we accelerate which - growth

So, we our about yes, strategic good secular but there. change, very positioning feel

have gentlemen, you. and we questions. at Thank time, this Ladies no further

attending Trust like would fourth for you I Northern conference to call. XXXX quarter Corporation's the earnings So thank

You may now this us thank you for joining disconnect, and morning.