Northern Trust (NTRS) 21 Oct 202020 Q3 Earnings call transcript

Good day, everyone and thanks for standing by. Welcome to today's Northern Trust's Third Quarter 2020 Earnings Call. A quick reminder that today's program is being recorded. And at this time, I'd like to turn the floor over to Mr. Mark Bette, Director of Investor Relations. sir. ahead, go Please

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

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

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

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

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

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

Thank you, Mark.

Though on healthy over employees clients quarter environment, ongoing hope and focused remotely. public normal we're and means your to our been call. health most thinking our welcome are world. the while integrates In families embodiment investments, providing with join XXXX to which It operate Management, we the of firm effective. families has transition you earlier such and the Trust, our of of our planning, the year continue in Northern the introduced businesses third me clients. mode, banking, how business as practices, capital across intellectual we we Let including adapted I challenging, have communicate each and we crisis, affluent and to and to serve Wealth Within earnings call well. our the individuals in philanthropy and from our areas you experience In governance. fiduciary, business, Amid Wealth combines best service, new serving of the family continuity our the our Trust this a we resiliency as of Northern worldwide are this working XX XX% drawn Management what across Institute, of

commercial timely pieces number real in family election. current estate, the We including published of philanthropy, insights also and a U.S. environment, covering governance, research have upcoming investing the and topics

very been prospect digital and which more engagement. driving campaign, by encouraged we've Lastly, the Navigate the participation Now in our is client

of the within from space. growth our and under We in first position products. us mandates We've also servicing, our in quarter. this considerable for the active mentioned most time. where did recent business we over and strong quarter during a future the assets globally our deferral previously, into strategically equity Our tax-advantaged asset as manage management which billion nearly activity $XXX asset Within in income we've share capabilities see end ESG recent implementation market fixed is and gains have positioned index seeing XXXX products, been experienced in liquidity success

and Capital strong Limited current as and public UK, insurer and virtual is its include clients and Pension Recent Trust environment. Federated U.S. become Treehouse in operating for pipeline and notable opportunities tools the owners We wins, European-based have Re, the management developed the Hannover in in prospects capabilities ESG clients' a more support of have innovative Spencer & funds increased Mutual comfortable adapted However, enhancements Company Marks our to the office recent Insurance Azimut dynamic launch and clients and the solution-based oversight, in of front support services the the solutions needs using exposures product. to East. Middle our our and for our our being asset two valuation risk with reporting analytics continually examples to

in notably and exchange We also positioning our build to space most foreign execution. trade the outsourcing continue in outsourced

Finally, published reducing tools report our recently our greenhouse and equity progress detailing and latest vehicles, launching we ESG towards social and enhancing emissions, responsibility inclusion our our as client-focused gas strategy just I diversity mentioned. corporate previously investment

the and persistent we in forward areas. rate move current in will we focus As two low accelerate our interest environment,

greater drive drive to focus to continue on gains. will solutions technology productivity with a we efficiencies First,

us focused growth Second from base profitable clients a grow manner. on on and we're to more with to continue in new existing organically our to allow bringing doing also scalable client perspective, a

express appreciation Finally, our extraordinary for to my these staff. throughout Whose times has exceptional. I professionalism been and sincere commitment, want expertise

the Jason to our Now, review turn to financial for let quarter. me the call results

Mike. Thank you,

Mark our join earnings call. third and welcoming Mike to me quarter you in Let XXXX

recognize also crisis lines. would moment start those take working all the I this those I especially like to front brief by to affected on a ongoing Before

and loved with hope healthy. are thoughts and you and we remain your you safe ones Our

transactions identified market which put open actions the net the had have quarter $XXX.X the to We included error related our action results they a a processing position The $XX.X a on as in share was to quarter the corporate common our charge the resulted average would $X.XX per and loss. third Earnings Now The been pretax XX.X%. for issue let's dive million clients if were was occurred. share on morning return of Page equity corporate error. team This into starting million. and impacted in quarter X. internally same not the executed by reported financial income we

well U.S. on based the a lag month You or can quarter quarter. strong during And Page those the Recall index portion on the local lag which negative compared S&P the to are performed asset worth particularly that X had basis calculations. our equity It's both see bottom remains local performance-based fees that prior of XXX levels. markets of an on impact trust markets and significant on unfavorable to noting year. EFA sequential EFA our fees a year-over-year the creates domestic

one-month the on shown average during and As three-month page rates quarter. to decline this continued LIBOR

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

X% trillion grew on and XX% from under ago custody $XX.X a and Assets increased a administration sequential basis. year

from a ago X% Assets increased trillion a XX% grew and under on basis. custody $XX.X sequential year of

Assets and ago sequential a management up basis. X% from on $X.X under were year trillion, X% a up

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

billion a $X revenue basis our year fully Trust of quarter down and and fees Third and component was up from equivalent year compared down X% X% largest sequentially. on sequentially. totaled other revenue to X% billion taxable last the servicing $X.X and X% last investment representing were

the $XX was higher royalties. decline income a and ago was compared the year-over-year sequentially. operating due and X% compared miscellaneous in compensation volatility. operating income increase driven Securities higher one XX% was $XX down to prior was by with the lower driven as a year in remaining and impacted The down prior sequential XX% with income and Net later increase to expenses. down trading up associated sequentially. year million Other year quarter compared impacted million XX% were million compared plan. to related was resulted declines rate seed and partially down bank-owned investment other well within XX% primarily swap a higher volatility capital interest swap market Both XX% performance by ago commissions and The X% of quarter up income decreased increase sequentially. the by down X% year income XX.X% primarily higher lower sequential year value sequentially. ago the supplemental income lower activity year-over-year offset ago year $XXX visa related totaled the lower increased I'll relative to discuss a to trading income sequentially. XX% to the interest components as a The primarily prior program, in was the insurance and and third to life exchange adjustment in Foreign lower for increase by non-interest in compared the the income quarter which The while was sequential detail to value by volumes market quarter was in expense. down and more from a This

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

performance up institutional fund fees and million largest and quarter of and up C&IS year-over-year new primarily business administration $XXX driven X% and up The year-over-year by increase were was as the services our and For sequentially. fees X% translation totaled $XXX primarily partially was year-over-year favorable corporate third Custody in fees on the and favorable X% basis. markets. sequential up driven component by The million were as currency translation business well sequential X% favorable currency offset unfavorable markets. and a by

flows and increase and our C&IS quarter to fees $XXX in driven were primarily and up currency Investment sequentially. growth markets. The sequentially. were of and Assets year-over-year and up impact was favorable favorable quarter C&IS third market Both business increases funds. year-over-year is end markets X% sequential favorable the by $XX.X attributable strong sequential primarily under year-over-year of translation. management administration the The X% XX% were million custody at in money within trillion up by new year-over-year XX% up clients for driven the

$X.X results fund quarter's management within in money investment waivers included market fee our This fees. C&IS million

were markets Assets $XX for by by and primarily lower XX% by and X% were growth Securities Average quarter, markets, fees $XXX the while growth client lower lower year-over-year collateral up up favorable decline and the currency year-over-year in primarily was and year-over-year year-over-year, decline down sequential was volumes, million translation. prior driven currency C&IS lending declined The favorable driven sequential spreads but X% year The X% XX% was by sequentially. the were sequentially. driven X% levels translation. was driven down spreads. billion, up management from under and favorable The flows sequentially.

performance $X.X fee offset X% up year-over-year in compared markets, investment our million impacted the and $XXX business. the market Moving sequentially. and favorable in Management prior were Within to waivers. and year the waivers to fees Both X% were Wealth were fund servicing Management million sequential quarter the third up Trust, other our quarter. totaled by fee partially business by Wealth money and

X% Management markets. up under The X% Assets favorable for at billion driven management year-over-year increase and $XXX growth primarily end, Wealth while and favorable clients was sequential by up our the by markets net quarter were flows was year-over-year driven sequentially.

Moving interest asset net due basis, sequential interest to a margin mix lower XX.X%. well a shift were declining as was year. average The On due from Average to was year. as down net were points the interest basis assets was lower X. loans was interest XX% XX% sequential Earning versus income million The Average $XXX and versus margin as deposits X%. declined on primarily quarter, re-priced net interest the the primarily from prior X.XX% short-term assets securities interest up the and within increased sheet. income interest were prior X% ago. margin yields up and the points, prior the down to up was quarter XX $XXX averaged while quarter, down The year. XX% year balance billion the rates. in rates basis in in deposits decreased XX earning third a basis Page net Net to $XXX and quarter, billion,

the billion Turning to prior $XX.X in Expenses previously the quarter, third mentioned and year were X% Page quarter. $X.X than included both Expense charge. prior were higher quarter million during X. the and the

higher strategies. to due adjustments translation offset incentives. by sequential were was $XXX to and unfavorable equipment with expense costs. and was as million expense the was staff and fees, year-over-year million was to expense from mostly Both services driven was The year higher higher XX% X% translation, basis, were by by for X% of executing data XX% increase XX% costs. benefits processing, year-over-year software was higher one year million amortization was Excluding Compensation sub previously million higher ago XX% base sequential decreased cost. offset The was up of a staff The primarily a one higher increases pay offset XX% ago in sub-custody Equipment partially as up On categories, custody expense sequentially. was lower software year-over-year salary Employee growth from decline primarily $XXX and due up brokerage by by charge. sequentially. up and sequential declines $XX.X partially $XXX one of services, third-party and expense. X% increase million, lower a sequentially. services salaries and from related workplace and including up year of were expenses lower reflected growth, The compared on higher by quarter related down and expense to driven real and incentives. sequential was a of The consulting $XX both third-party flat clearing to consulting and software X% one by maintenance ago up and costs. increase sequentially. expense fees year-over-year increase charge, million the associated Occupancy year and sequentially. unfavorable up Other mentioned number currency costs. well costs estate by the of driven year-over-year growth ago and basis advisory driven technical and a totaled sequential support operating depreciation The currency across sequentially. related included ago was support Outside cost, on year technical medical down year-over-year lower X% advisory million X% Results pension was X% growth up driven from expense $XXX $XX up and basis. costs The

down Excluding one higher lower higher staff-related by the lower costs mutual X% ago associated by higher year-over-year year to co-administration the was was and within charge by by sponsored The travel, business the is compensation supplemental with the expense. tournament, compared within impacted Trust sequential offset as to well related comparison category declined comparison X% miscellaneous costs other category. expense Northern impacted fund sequentially. expense as associated with The fees golf partially plan expenses offset

page to Turning X.

XX.X% the common quarter. ratios advanced Tier remain Our capital equity our standardized from the the strong approach with unchanged approach. under and of X Both XX.X% ratio under prior

leverage Our standardized Tier advanced X ratio the was and approaches. X.X% under both

During come exceptional to $X.XX strong the clients the of third the show and solution support declared dividends to of capital $XXX base these like quarter, profile continue we activities And per and importance our clients' expect. share, liquidity stockholders. with expertise totaling common times to that our service provide cash and million they've we the its to

in management answer would asset wealth for happy call to I Thank participating earnings be today. competitive Trust your Mike, and marketplace. Northern and continues the in again asset in you positioning quarter well Lauren to conference questions. Mark, resonate management, Our servicing third

first Instructions] Jefferies, Usdin. from And Ken have [Operator we

Ken. Hi,

Thanks. Hey, guys. thanks. morning, Good

to on rates. want Just the of follow-up side whole

that better as So NII the sometime early are guide. wondering think to for you can us you. expect than good the on in that flattening Is was down what how help original out? can you And news NII? point through just do far Or I And your NII close update if Thank as to outlook us thoughts just at you get what XXXX? that? was

of XXXX, three, longer there that XXXX, securities there's for XXXX mature for people And dated. we to think I Yes. bought securities of years. are realize all aren't are It's five that -- there it's to in another going four, components that -- two, portfolio are the first important

look XX% to going down assets it's And been so book on even new the long-time it can you the That said, the that, assets point And XX% about of has repriced at whole take rate the this from break yield all securities see overall repriced. portfolio farther of you effectively been if has a repriced. to been loan repriced, have that to XX% of earning have repriced get been bit little and a this curve. floating and of book

to overall And X% the so X% reprice to here you about what from that to about every base think I can think going from the see earning best it is quarter. way is of asset

And we're where the on to so it now. everything we we've think through first not the flattening those flat majority point through. movement most this if to through that quarter a be the the but second of aggressively book, gotten prior XXX% we've play from quarter for securities of we vast got going in then about had It's get you trickles from it. And done. going at it's third as longer-dated and That's how now was the think quarter, why to just here, long-time

Okay. I And be comments NII to your prior XQ opportunity just level expectation versus what would the I you guess for third just relative your us just to on want set to give Q?

just level do confidence And question. appreciate assets. I'll in dynamic said, first went I down loans answer we on. what The could at way at book Yes. to I reinvesting from what frankly, that. of you X% think how more a deposit be of at that the The is give has from and should been in that going -- point. so happens in that comes and the the now by it point in to driven the back that's banks NII and movement business repriced. expect higher-yielding and or say not into X% what where central and all our in And -- you what here book And look the happens cash happens by about into we're now to the at going stays think repricing, I be much well that this take of it's point. That it that more math

And so it's driven. more here, business from going be to much

Thanks, Jason. Okay.

Ken. Thanks,

We have Glenn Schorr Evercore. with

Hi, Glenn.

Thanks.

So issues--. bit everyone definitely norm I guys, little think has but a not you to for higher sensitivity the

about rectify? going you this? to forth done was Thanks. that ask manual just that was have of there item, some little it? been back such was related I color corporate issue? that a outstanding have So action to more this to think a you What for I and the MRAs on Q&A just address may pre-call the And

Sure. I appreciate one.

I bit of provide people all just context to group know occurs. a of this and it well, on don't like want an little first this for that So item how

they expense I processing That's on typically think a total million the is administration, important somewhere We've And on with $XX experienced to got a security assets understand trillion quarter what $X between operating consistently consistent or line literally under transactions we for the in and it's $XX in the accounted of see. millions basis a group average. you statement that group income services the custody there. other year. on in they're million, errors

itself added we perspective the dollar bottom was kind back it bit, full so, and the than was in unusual, to million of to And focus $XX a of quarter of loss. other had on event over that think And And even normal year less a range. level, $X amounts volume if not $XX to million. had this never to up little to a a is in of on that get a that XX the interestingly, from light. of this the itself we've cumulatively losses, the million loss we quarter amount. And items even end at it a years And level actually years even, look we've if it's you the last never a

place. do what you we if our do And Once can that And about, but unpack make that We to those at the first to And then we ways processes, is we the point, we think strongly a thing we ways note, in look point, on. -- to we this This of imagine perspective, We you move at we ask, to done had terms not it's it We it order to -- did we the about mistake. course been an the were identify large felt event. needed put talk very But unusual. if did we're point, this everything strengthen confident trillion been within clients that we MRA situation. so whole. have there's is not we servicing that was in at improve that. process was assets even identified then isn’t be at of is in in From of It wouldn't the -- really to important obviously, surfaced. that out seriously. took this even $XX this that, even the exposure a had if normal very this fact I able it.

more? a part kind just biggest yield follow-up do it's I that, it's sheet. the little on community But What a investments. earning Jason year-on-year Tyler get to benefit is footnote and more line Okay. some almost What The assets of more much. you Cool. related of could a And talk see up we other such pickup? securities to it's should Thanks growing about of that? balance expand so -- expect that? part bit development and Maybe, the from the XX% on now. because you larger

Sure.

mute go on sure to your I answer want we make you Just really before Glenn, specifically. question

increase talking $XX So kind you're the billion, $XX that that the is looking? portfolio about in of billion is where you're securities

of most think that securities came on growth I that lines. other

think that -- will the address I we securities year-over-year growth if in So,

Yeah.

general group or in you going Glenn a Glenn, were So add the if clarification -- to --

No.

the the other balance securities line on line in the Thanks. You sheet. it got

feel yield. confident. we a always -- items are general, of from but that where in short-term, out up cash of not pick it's little bit and types there'll treasury the group So but And cash, be are lean the for is looking bit little investments a opportunities where just there we to -- it's

cash, incremental where without instruments And of little a other much so taking it could little too be exposure. up yield, short-term be we a short-term of bit pick bit could JGPs. It

talked looking is of out time different ways. so sheet, NII part to think going we of that felt confident of last size could the this balance that fact they've part in we And I journey just the not been the but it, we of about when step central -- we just items is these looking the banks, still going are three-year, traditional can backs, do they're as or so up what and but to with to not stay a do pick group bit but yield. that in little treasury for that, that four-year And at securities mortgage be other looking short, two-year,

that's see out, not saw you It's necessarily longer so we as term initial And something this that should something as opportunity. trend. a did we step

Great. Thanks so much. Appreciate it.

Sure.

Next come from question Blostein will Alex Goldman Sachs. with

Alex. Hi,

Hey, guys. Thanks. morning. Good

NIR just maybe first. clarification a quick So on

X% small, So, like include decline of dynamics? on to kind NIR the I get as offset a which efforts flattish could kind hear some re-price. to remaining NIR the any of from gross that of roll-on could Does in mitigation the number? here you pressure roll-off more Or securities of And X% that's to then a it's there book really in do are albeit from you things help you obviously here? kind mitigate the to

is organically much of the answer book. looking the just very that's the -- it's amount in Well, at

strategy, is net strategic what's rolling of profile to So in "offsetting" rates. include looking dramatic have down think that in our even be here. significantly risk items. though obviously, income going the decline our or interest That the we're want I not said, changes to do That's just from caution to any math about people doesn't off other to

X% do of thinking appetite any the things constantly our the book just continue investment optimizing math about right be. would exists quarter we're X% in is the in and we risk No so absent change much that. to very the that But now, And to other what all. at book, we a

So portfolio, over things you are but those contemplating were the happen the other what's thinking can terms do before going of things to about with we that's other in shouldn't balance sheet, we be exactly securities frankly. came were we're rates down thinking things time. There

organic to the picture what kind and momentum of and cetera. set And sort obviously last that. et question in your with for kind business has That's comments given Thanks been maybe business, over and fee volatile a the new bigger building revolves the pretty Got very of has level markets fees. volumes Maybe respect pipeline around the clear. around C&IS, in us maybe help XX it. of growth flattish My look help what been specifically, that That growth the the on strong global year frame this months, hit I could -- guys then been little there's asset assets. organic business. in like feels despite four growth like pretty of a multi months? of quarters, significant for of fees And the over are know kind hoping office last the a next like revenue XX on fee I was lagging the also there, bit has the lag base. kind family but you still could in both

hit of question, be on that will picture bigger of if but could that guys all awesome. you kind Thanks. So

Sure.

fee come C&IS, separated think One line. of collaboration, the growth C&IS. a buckets I I come work start interestingly. different into if we take is to significant So in years, that, two the, there has of we that's on management last lot management been the that's And there be the very up from couple setting asset good the assets. liquidity in And business to and on investment able did between business

in to the close to billion to bigger at to And but this level, now this assets we're a But apply the year the of AUM. lot industry. C&IS. than $XXX $XXX of billion liquidity the if very business going growth I'm had year, to go beginning significant you $XXX billion, So these last happened corporate in do back what's

C&IS that in not of organic XXX% Again good vast majority of is. business, the a as to led that's so result good growth but And in business, collaboration. the of it is the

quarter -- of to because lot but that's of of the on-boarded And and that that they is great. very to that non-funded the delayed other great. this business. be growth partially a The fourth just feel positive, the servicing other do pipeline prospects activities was traditional C&IS that first not as stronger implementation custody was you about of asset fact that confidence still interestingly have or aspects wasn't that part the quarter result type one but It get organic it COVID, a going were high the level quarter. of the we won there in They

bring opportunity of in the see the point. it's quarters. at out we flattened market next couple it great. said, good so business, this money the to that mutual But And growth in been on business That has fund set

investment get the And business sometimes the management diversification so and from good to growth other. coming from it's in the side sometimes

up Jason I'm Mike. while water pick a get going a to he chance is to for This of Alex. sip gets

importantly term, I -- I said higher us. see to we've growth that, as again, profitable to So the it's rate. organic but we for Having continue that's opportunity at critical a said, always grow think growth longer that,

that so operating way doing coming that is it fee and with And operating a leverage in we're leverage.

with Now dramatically the that ability the short-term, to in the leverage. impacts get environment rate change your operating the in

a significant so us growth that for resources. come makes it result, And does the focuses as -- not that it with on ensuring requirement

quality that us. side those of just the and environment. in in line scalable the this keep of that equation growth making is So, sure the for high at looking growth And expense we type

this just side. management mentioned, asset to servicing on an So you And Jason off on asset management. that's been year. as wealth Again, the close mentioned has unusual

that. that had prospects interim we on long-term optimistic would to we've it additional as would some this sales new result. say a sales in But normal and volatility period caused business strategy And very so for has that has have. the I And I'm in the pattern shift our

had year there's So, positive, previous your this long-term but very bumpiness that we've that haven't some years. to point, in we had

growth. Mark. asset And comment on this GFO Alex, the could is I

clients. with the majority There's fees we having -- was just the might corresponding increase that's of that the be holding what noticeable a increase growth step-up single not of to get necessarily client of that, nature into holding clients of our can of you're platform. there in the large but, think us, that pretty And both Can't a concentrated the our type specifics seeing lot custody for that onto quarter. segment second quarter. of platform for in in the holdings type second move on asset I the because those the

Thanks for and Great. tackling that. everybody hold Thanks.

Alex. Thanks,

have from we Morgan up Graseck. Next Betsy Stanley,

Hi…

Betsy. Hi,

good I of a had questions. morning. Hi, couple

with I capital what that some typically in ratios, part the your that improving you discuss recently to first that about capital add the management the no you're That's get of to side. buybacks period management to your in regulatory might anything a us sense the be the of sense a want the excess give further. as buffers that minimums asset know on question. cushion it. do Could pretty capital to is in there how seen using with event ratio above utilizing outside your about above Obviously nice even there? you Is some and how thinking the you And buybacks wanted you anything capital On to sit space cessation that Thanks. that We've if buybacks? continues? acquisitions could might on there's on this

and good lot. is I I'm news going try voice I'll that right. about talk back. got Mike The to a -- All see I and my this it if

if to we'll don't it. be going -- So I same the on definitely on page he's

me think about I'm to and -- it's to what about, levels talk four Betsy, and bit least heard how we -- we a little we we going how you've but I it there's at start components firms deploy maintain. capital how So -- think how capital with

with about that's not not being presumptuous be we're aligned, to also without The capital genuine good there's in discussions Board conversations to it. all. having we We're not at There's that to with want say first is And that there. them. levels completely sure but tension good want where we very our any we make saying have

about cushion it So to basis, with a discussion. we relative an have to want we to we regulatory need on does then start capital really think be good truthfully where secondly, perspective. absolute that And that from

of we've And stock capital given maybe able a got strong thinking has The our prospects value levels mirror and to and we overall third down on look talk the closely that about relative to to is able on we basis. relative basis. returns proposition things have fact clients a to basis. care part and most is the When view be frankly reflect. and that instructively we we out look evidence come at to we price on It's the a things that very fourth, be side they want the

trading what the what up how to returns do we not so to returns think. what of third invest of non-organically can have about or we things has there are at are And where own it's capital lot but think for think to looking we getting examples have we And there And a we we are types take down, are secondly, that our what that we what deployment just outside. reinvest business. then do we and compare opportunities it? a we getting do capital organically in perspective or And from in investing price-to-book we're where and with by effectively. stock And

And difficult about were the growth. bring strong management say And feel the to so we maintain we and to fact in if we're have that our to very particularly client strong organic space it the is We base we've I'd ability is very talked that franchise wealth about in. feel open. like high-quality very where a

when firms, you're wealth that? any about about talking talking you're is there nuance teams, So to portfolios, management

teams The is harder. Yes. I think

think I various to little I'm first something like that culturally, do for a all, talk of reasons. consistent for bit not tend us -- happy more. to to about it's be super those it

that groups can you've I we you we where bring maybe billion, offices almost that's more that have we billion, about our And we the $X in the the think $XXX have, $X assets split as teams. got we that of a have. of different but the And And $X think at scale between we and are there, a team of large they're about sense firms not you billion. offices been scale think billion in.

that is extracting have -- something team kind a $XX of our So billion that to is not something of But to $X or firm we up from couple do. another out billion size teams of intended a lens. of

of base. about able with been that they established client leadership organization hasn't so with better think or to place be plan might just it a organization, in an that infrastructure succession But about a in can a an And the thinking to develop to larger succession planning a don't at a scale represent And we the organization. asset that think be have place. for good solution level, you that go firms we

Is your in asset fair? management. that Okay. And answer what hearing wealth management is I'm over

-- more intermediary done There strategic distribution. are in there our quietly to are bit opportunities extent there consistent that assets, nuanced. to been We've desire small things asset with the extremely have some management. do little It's more more a there

well. at we And closely so as look those

probably the servicing do a higher to bar might be a think bit I at size the little of distinction right something side asset of in now the business.

maybe terms would -- how the does Got pace are And you in the it. on give get about the scenario how you're might as back restrictions your And quickly want then buybacks you the capital you you think that to back us model? a to capital in sense lift the how what buybacks could if that ratios Fed for efficient up most of at? that manage thinking to you start down business

answer that? you can Mike,

Yes.

the think I laid Jason framework. Betsy, So out

our lift the we that. and we into But were the to go won't framework apply, I So, prior restrictions would should the pandemic, see. Fed the But repurchasing shares. we'll that is that

regulatory environment depends so, over constraints. that the that on And it we with lay would broader

would the beginning stock. similar where in the a that's hope to also both we restrictions of removes to indication favorable, repurchasing environment that us that an were our put the back able is the were to Fed that I So, position and extent relatively the year the which will

got Thank you. it. Okay,

Sure.

with Next question America. Mike of Carrier Bank from come will

Good for the morning. taking question. Thanks

if but areas you job efficiencies potential area First, I'm in you investing the been real backdrop. additional out we're on drive have it's that good marketing term? estate this areas business, leverage. find guys The of in driving that whether could other a home of or longer doing in longer from work on focused both and efficiencies also operating just curious

-- We take and -- a step that. has obviously been back environment think this very everybody made about

tell Frankly, at I influence accelerating journey quickly the that just there kind opening ago in months the things were right the this faster. can I not have. the there super comments how crisis we deeply A are square off they endeavor we frankly know ago, And real us midst we're how know feet thinking that estate a it that I I we're of did how We of much saying that accelerates. that kind that there there we're strategy mentioned on And my health then not are. top jokingly. many care head about were per of business. now consolidations I looked do I that it And now. considering a We are of paying and does in are are strategy. of before we And And of elements where we do. people year that we're had to things makes this know the And other couple say consider. foot. that

a resilient more how think technologically them also become more that overall. of frankly, do saying, workforce creative with about of we what and lot we're other footage on resiliency leads real estate in And we've internationally. into our the equipped think in and there to future to make creative like be we order leverage the we've order how invested to so, resiliency in can does look that. adds things that a that partners not element to and decrease the as flexibility lot about technology And very are but obviously had domestically square be areas our we we do and other try ways to try that think things and And and just talking about, resilient, and to and like in way well centers reliance in efficient our more try

pocket It's weak past, within fairly new Jason, the then driver to full going strength And and of Helpful. but the will demand seen divergent a the across forward key mentioned we've industry. trends wealth demand, loan still the be Okay. you in loan fairly area. NII

So terms in on you're that your front the seeing demand to update an across business? just of get the wanted

Yes.

interesting. You it's can't --

quarter. going days to financial statements, were everyone think liquidity You are sheets And back I down. felt We there within down. was come thought it balance loans our but thought but see cash can't up going come we that the come to But loans clients down. Deposits we you thought the to in even. And like in. were to average us. not deposits, are loans come more sheet see surprised holding that we down. from even go are We on XX was going September actually up And it's held -- balance the -- are going to ago, pick just when

and talked clients, of think volume. liquidity we terms broadly loan in of recently the you seem fact we've component are actually there or the the wanting loan safe -- sheet about money certainly strong does very active clients ready size. come like It's things about that, see to of what if is is held And clients will that opportunities more places to to they'll assets. They investment they strong they fact not And so, pull if do our balance cash or funds, saying, been that's that not, mutual they've on unclear in -- view that the at talking from and our whether liquidity trigger have the want market I a do they're is opportunity big we park or some find be or with coming actually more about and performance, be general come high-quality their as it the short-term demand if But to whether happen, whether not been we've case that up. our to it. so to

treasury Our billion. funds were to $XX billion $XX

institutional And on their that to the us, know very so then we invest. they've worked understand for with composition large various as appealing places even well. side, asset investors other clients And

terms can for we in in lender way things most the how efficient structure thoughtful of so, that. be a to And

lot. Thanks a

Sure.

Deutsche Bedell. have Moving Brian from Bank, we on

much. very you Thank Great.

the couple of way. of questions this a XQ out to get Just just

with on quarter Gulf seasonality Open, also fourth get market September we if waivers where expenses see in into could to Just conjunction typical running for which XQ in in for the sense expense of an see the in XQ. And we're money exit that that? comment on we you some the in added the uptick fee a typically that rate

Sure. to do you this? want Mike do

Yeah.

the seasonality the on was first in the Northern So Trust?

No, just in general expenses.

Oh, in expenses.

quarter Fourth expenses.

sure. Yeah,

ways that third for them. I in components expenses actually fourth So some of in we ideal curb because that think of quarter there is rate are not quarter are should run some an --

maybe walk it through just a so bit. And little

but see medical First the you it's that jump gone trend example. of benefits the an second There but enormous not an had place, it all -- is from line that it's and has for took part fact of enormous take quarter.

closer So from quarter to medical million $XX to in went some That's tweak run million in second up there. like a could was third $XX.X still up quarter. something rate typical but see

business, likely up for and like software XX%. to higher we've amortization in general. third of see And legal, that's equipment everything it's outside in low the land down services could think like And is come doing perspective their quarter. fact is that something had in are And back a and we're then coming then got things close expected we levels -- software own one effectively quarter increase. things of called in technical just believe in doing from to higher costs And my running lot category to something normal where could that similar that in a volatility category on to care D&A that's that we've expenses step-up the but to year we of There's two-thirds so the basis likely to have at equipment that going depreciation costs we're are down about relatively frankly. full cost we've growth year still saw when volume what related think within are I health can dial out. that of exited consulting, back we those the to you where and as another where fourth invested levels up. keep mind this business year-to-date that a XXXX, maintenance we're partners line we tamp in costs a -- as That's services surprisingly level online. And our large of

bit. to run to And I've make going that get try investments We're I'll occupancy. kind talk that's our volatility tamp a to It's longer-term down and so about hard There's some in little to soup. of there. mentioned the then in be little And it down as bit. rate occupancy a aggressively. frankly going

line a around And bit. see going you're so that bounce item to little

say less what And on the rate two in are expenses it's more run decrease about seasonality about try it's investments to the and to the do so we in make how expenses, we're COVID I'd One run and and our long of related things. to in going get rate run. undoing influences general, second back what is

helpful. That's

of way fee market per money at the trajectory the On XQ? end

Thanks. Yeah.

-- at from -- is let there. comments, So million we're as opening $X in couple do up comments pick we the I'll a of right you One me the could third quarter. it only

-- there's in billion relatively but fund have assets are point is is at stable rates $XXX Now market the mutual that the money this we moving lot. around reality a

assume stay got that million. So rates quarter to volumes the you've and same $X but third was

million. $XX run fact $XXX As rate into back could thinks go we we million year in overall right million now. quarterly than the a we give is so on we that beginning $XX.X remember what at $XX team were to sit to mean the super today to launch lower was today. have a does of as in could million think it it's exiting just billion revenue run is the you the to sit XXXX assets, this what about year the and as $XX point coming a $XX And if sense that when I much of important rate to waivers fourth you be million basis the The quarter,

up million $XXX And go and $XXX revenue. you billion is so rate now to run over the in

talking of decent have higher and in we the so some mixed a so there of about is waivers story the that kind revenue ways. base but much we're fact from a And amount

very And That's on helpful. Okay. then ESG. just maybe Mike

And of about just ESG product side, out side in management more servicing have for management your clients? clients rolling that maybe ESG But have of you you wealth are also products? outset, investing that are at And the for investment asset mentioned and your your You if outlook up? analytic the path talk service growth where then served. the take that wealth ESG are the that is the demand you from the that you and could on to all seeing organic the you you how growth in in

Right.

reason why is of each started back highlight and through little the ESG mention it our upfront the me but company and Brian go because there, I run let bit. to So, you did a across businesses it does

to of your investing First point, institutional, all, just and perspective point are investment our from in on investment clients strategies. from our an more ESG to GFO more product side, the your we clients including wealth demand both seeing and but

broadly well in there. and And as institutional then they a from I asset more -- how early demands expect ESG model, say analytics our ESG with as point, group. to perspective. investing And owner clients I as looked billion would they're over as still being higher we've So, we've days business need the us for those result to our a that about around you opportunity at growth mentioned clients, an with a this standard and as product $XXX result, would the that. thinking held our to fulfill management from they're And trend in of the as asset of -- particularly but

And I out. that think on I would So, this say rolled a point your long-term I early very trend. we days capabilities to talked the that about because is

you. helpful. super That's Thank Great.

Sure.

from we Juneja have JPMorgan. Vivek next And of

Hi Vivek.

follow-up one the know a attention. years those I hi of but Mark. Mike, for amounts just get on -- item, Hi error. I I had operating and to lot that's do recognize Jason want and I know large you've

checking? have sure do you've a to adjacent similar when errors. amount another business. And what reconciliation so I'm in stuff these step kind amount larger automate They need know you to I of up and their You plan these processes these about you to what how larger So, to Mike got this much even to like happened -- to that do do the doesn't to been more the limit that you get do to to of -- less do have trying you aware of are errors. hope those talk what's something you do do to future? where less less be need Simply of

Sure Vivek.

to there automated that our Jason is this broadly aspects as business have of are part our that's speaking. incurring find automation were certain of So, And that and errors. the mentioned would areas from automated expect in been years ago. the efficiency, processing is but transactions is of of lend themselves clients businesses benefit dramatic nature you and for -- you that also both the And what the get that risk reduction

And so that's And the -- lend themselves do and been the of longer don't for what to then some that time transactions. aspects other on say idiosyncratic we've for path automation period. the we as much particular of of industry I'd nature the well as you term that because have

of control controlled. with gets the certain some even though area other portions attention errors or been have there in have are automated level still transactions automated, of of it's manual corporate that and -- have so So, where we but the primarily And automation, an the them it's With been case been it's procedures in that actions themselves. homogeneity where much perspective. aspects it's difficult actions as parts a from of well as they've said, past, because already straightforward very frankly area been this lot this a very corporate and lack of of of

see significantly a for that additional tools investing things years We've about speaking and been risk area. that with with workflow we risk to manage we and we security broadly technology the higher to services that the haven't automate trying in to our mitigate think in it comes been to path that in as of it can. That's say able controls and modernize been area as So, there add but on that. procedures in that inherent we've not additional

we and attention it then it's certainly area, attention So, ignored additional and it, though felt modernization this as forward we've it. that and it go that more situation that it and more well. like to controls path to a a improve requires automation have as as occurs wasn't on you But rather brings we we've tried we've this controlled procedures but boy and

Jason. us a for you benefit translation. one FX A I'll Understood. ex-FX Thanks. the Could one number Jason minor a mentioned you quick CIS fees year-on-year from give take translation?

X%.

translation? ex-FX growth X%

was be impact that a a on just year-over-year Well, about impact the the and most that's is to where services currency clarify basis. fund and this The Mark. line, on would -- benefit X% of custody

Okay.

means-- that So,

that ask, a you though year-over-year also -- is And we the saw line basis. local I should EFA add even that on area down is didn't the that

a probably what say as based So because we've domestic are doing. drag that that on was I for more that markets talked line indices X:X about than line were, is actually EFA local before would

I over didn't your I think Okay, wonder notice that great. rate XX% -- fee ones, was that I'm on mentioned did But is that are you Because higher revenues. mark? which one. the were glad I Yes, because you and of and clarified that markets down EFA that is highlighting you that

No.

you and EFA asset try to are the the of much give Just more C&IS influence exclusively indices. local within as base, you try to predict wealth that's of to to trying as trust a by importance just fee you appreciate just sense levels, and opposed driven the domestic

Sorry.

you. with Thank would I that Okay. Jason Mark clarify Thanks. and offline.

Moving with Brennan Hawken have on we UBS.

Hi, Brennan.

morning. Good questions. Hey. Thanks my for taking

business to some and just could in helping the works. pricing modeling that, and sustainable? how provide all to you our the understand was there When growth have outside Just inform translate that of knuckleheads about as question at go AUC/A of But those how doesn't versus we pressure. on always you contracts here? I strike it C&IS the line some caused least us that was from the that like and us Vivek. it way from behind we all way What of trends in you following model, deals those looks what dynamics? the run the actually to and look maybe where there might us revenue, sit way at and know of rate sort up color Are some fee from the in the think help

Understood.

take I the with we're about approach connectivity solutions, there's trying to be think might to less place, a the relationship more with lot of might be investment And doing and frankly, doing the firm we're handling management, IOO holistic and with perspective to the level we're which and what integrated doing be more a negotiations thinking cash going trading how asset what of between level. we're revenue to more suite. what we from an include

is so, on just the prices business Mark it's relationships. super terms thoughts. I add it's know But frustrating more, spent it's that Mark, lot your to disconnected model about too, these time this just role reality in a more and able way to the actually the thinking the predict be not And to -- a of use revenue. of

are I part And Right. about talked of directly we've not it, assets. asset linked XX% structure. I servicing C&IS would mean, in is say, also those fees before, as to of fee XX% to

an environment higher. more servicing mandate a probably lower would the custody mandate and domestic asset and to at assets a a of in is, the with administration assets fee could significantly a put maybe rising, gets are fees factor that within fee, bit much assets then a very And come category, fund large not little And Jason rate. what are as mix large business. less was large U.S. actual even the where fees importantly it saying alone growth So

there mix helps. tough the at we we've Jason unpack, that's a that too, timing point is besides to quarter. understand, talked hopefully a one which the a So, that play It's end-of-period over mentioned. before, to versus earning about But

Okay.

that that as trends some the of and look then So -- help quarter that. to can quarter in the front appreciate help that the third off of about sort might kind that divergence any you the think point color jumping wider, to a totally reasonably just of have point just give caused But us can -- you sustainable? fair Was there point give little of it? some on as I we that's to noise you a -- all saw then? were to Like,

of have -- business couple One a does of some the Well, in compression. that the is thoughts. Yes. spirit

an of point be and be to are Just I is the it's think revenue COVID going maybe your specific to those it average you to a back so doesn't a specifically. they not as and sure sense assets misleading fee look -- trust short on reported want influence it realization where that that, -- at even in business very are fee that earlier, the that I going And to on business, growth a out of at there's you're be we're being compressions short-term like more be and and middle rates have and the a incremental period. if business try the run, address seems And being actually of there if that period, which on come the of into reported on asset low to higher. on is be extremely to of And growth get period were be the the though it's pieces what question to could as rates. based try do or it's have business they the very in realizing, we could going honored, not. to and they disconnect on prior flows whether on asked are you or but going the -- dynamic fees. large be fee that's environment activity, the end before to it levels much much that the added between -- can reported it's to where the market make basis. and if math the the an And are And get to

less an there, much but have itself mix business influence the ultimate So profitability. will on the

comment about second explore made but of Okay. -- is kind again. your Thanks get the wanted error might you to just this, My question think, have one. around for some Mike, processing at just trying to And second one that patience I with it. I

maybe of some maybe of potential think speak. see review in sharpen I guys Will said but for or might loss some to expense on which is, the pencils, investment what automation, those operational look is more shift Or continuing you an is that all review in do opportunities or kind you investment? so a this lines, you invest for than that for to focus to it event near-term have impact you effort this you? some of have process course, like the think are ongoing, rather the as additional or or and hire processes, staff control some automations,

say would both. it's I some Brennan, So of

from incident and the area. are in talked already that question And already changed point We're a have that the there already changed insufficient of on full resource about. operational in and the And a isn't well. to we've resulted done certainly, going the So procedures the ensure controls as the area I that at error aspects, scrub be perspective, the in resources it not was that just case trying to any forward which all this clear, same. the

always as a in situation in, without investment something but itself. resources, then expense if in would you It or doesn't always result, we're point in change will, our incident doubt, But broader the And we by environment, a run prioritizing change not the result are your a and of impacted our and you're the rate. So, -- it that financials, investments will there, that's investments. that plan. -- to our whatever on

So opportunities have focus we investments for and you those? to what there's a have And result, invest you management, how prioritize do given -- for innovation investments And deploy productivity, for a far to do in okay, outstretch risk you on productivity, we determine, growth. year. the as would investments

so now, that we And to productivity. say to the second, and every And we the And operational have of I resiliency in have in environment and would that, a process year go then levels ensure we ongoing. I that through yes ensure that's going say would forward. automation we're

the in to growth. we in to have technology We think way we need drive be able scalable investing productivity the dollars that a sure this make improvements to we're to get environment

Thank Great. you.

Sure.

next And Seaport from Mitchell. we Jim Global, have

mute. Jim? be you might Jim, Hi, Jim. on

you hear me? Can

can Yes. now. hear I you

Can you Okay. hear me?

Sorry that. about

an seems And just So like NII guys deposits. and pretty declines. maybe it seems guess, that you, helped on like deposits non-interest-bearing end period a basis average your grew on outperform follow-up little nicely bit. both where you for saw It a on I peers

side? is puts trying the So that just is the in just that something non-interest-bearing grow? -- Is there and to anything episodic Or unusual you're takes?

able -- I'd with with to in in is talk anticipated us I little held in and all, industry that yeah, actually a your of they we way. and a the hard back realize. think view but strong. reason -- that clients on position better. NII, for on maybe than a were did -- we've to lot come growth us less about theme to -- I bit comment mean good that but our as try And frankly mean, to it We to of first very we to then what they we the deposits I The bit question little certainly that tend it back played size turn liquidity the factor, non-cash to category, balance loans fact a put I around we better that but specific about that to sheet for comment they it's the experiencing, view our the I -- between. people to

assets. think on park where for influence tend to an do liquidity be I a to partner our And that happy clients so, And we're their short-term they there. has

Okay. What more That's with current opportunity fair. And upfront it you're maybe with do mentioned see examples as terms the do you any to more can -- for biggest you trying give Mike, you clients. set in what that current of to us clients? your

within one So, do the managers. the opportunity to businesses, all with would pursuing particularly we're say I definitely say first and there's of more, I'd asset

not whole back also So what on to perspective, front a office. just office about from office market our just thinking or can we approach the do office but it's the middle

with clients. institutions mentioned solutions doing those essentially I that's for or for trading more example, trading So outsourced integrated those

the and to office of really the the So more front in position middle which strength, it's is back be for them. to in using able our do office

I though side. add want I'll And also also say the and to that businesses. other could on examples that's across highlight businesses the use, I but So within it's

a executives And providing program the client, wealth so asset firm we where would are for effort that if client for can provide an say it's are plans, of pension a management solution we corporate we firm what concerted to or their their wealth to management to a have a executive administration we servicer administration say client, if or call fund firm we we group. have let's the

it's to of more that historically opportunities those be but how with we've say very and and way done we and about the it's operate trying because do culture cross-business So types that purposeful these would of I well more disciplined we're we that. the

Okay. Great. Thanks for the thought.

Sure.

Steven to move We'll with Chubak right. All on Research. Wolfe

Hi, Steve.

Hi, good morning.

the could some NII we So back I excess on comments. today just to have remix the the on yield, points question to just And reinvesting book? think wanted about you currently securities. of start hoping those XXX with that where incremental you the think specifically, versus are reserves I you basis some capacity of off a help And into was as securities modeling us about the

get to because come sometimes the be duration with stick -- we can more deposits around -- we depends we those. if on treatment get that it they're we in going The order take And deposits and capacity those proper confidence to the season is to they're trickier in. have and level, risk quickly for to how so a going one, that let know

to exactly in non-cash what so reality necessarily is And of terms reinvestment we think can base doesn't correlate size the about the the opportunity. deposit of

a about opportunities wanted where make toward in balance fact such the the distinction were the that case that deposits case of is be step sure to make was more more the there did repurchases we feel clients regulatory the that of why to is given there are we going if to there deposits, share Central there adequate. we've there want to something a banks stable. at wanted investing their missed. terms those demand. point Bank started is to balance all base, that to it. once be the And very were going of away in feel from that demand reason to significant suspended on sure sheet, why we were good we where have we were And -- come sheet this ratios frankly, assets got Part And In frankly. of I for think banks custody start significant loan people to even going We just time, large to place the were did

the client we And away. regulatory that. other we class. And a did in stable, quarter there we we securities, were we more -- realized from were more to in But asset so that And size toward on the move there move eventually more the patient MBS. start perspective, of things stability was in environment if and could a take incremental about more start what we components can the step third but you was think longer-dated really more and toward CLOs, can to toward

bit portfolio unfortunately bit should framework risk Now compressed basis this little we in. framework that non of can think differential different differential it's perspective and more a we from feel securities there that's it of as But typical you a things quantitative And environment, based and the on and point we give a -- more And in set the a on about between portfolio. opportunity other the least what the or is return a you HQLA the a well. at see comfortable XX like that at of little given the how the dynamics basis a XX point. do HQLA XX, and explore might are point

it. Got

expense outlook. Okay. helpful the then And just That's color. thinking about

double-digits income understand wanted things fee are just low Now I'm growth an to the some lags The growth trajectory. thinking growth you expense looking thinking stable. internal is it How versus fee where expected basis. organic the do on XXXX, costs, to least better relatively wondering philosophy? organic digits to should of mid-single expense rate of about I be actually decline growth better there those in are general terms to at the growing, NII assuming is help room we current out potentially to some about about of on pressures? how the just dampen run

we firm growth Well, a to money market growth takes investing things consider and investment ourselves get in the upfront even the growth. the for and times like right mutual funds cutoff still we're And it to basis. It the to When that fees get incremental you investments the some side. think some also done an expense with we of administration of about around the portals. takes -- growth on pay processing

the think, we good leverage have expense perspective. extent the then have just in about okay we things disciplined going to be good business so, the And Otherwise, feel to example that think more that's a thinking it. leverage extraordinarily operating operating growth. an we And about I from we're about to

And leverage. so One different operating operating trust levels question these your total think how three three, leverage; just about -- of trust operating let different and in it to two, organic me break in it do fee three leverage; fee is, how down levels. we

and I the it's which very line item focus from as declining the component first, of to think a going about a that rest and business leverage think disconnect be you it's so test very the this of we'd so is of difficult. the operating the one don't the right revenue, including NII now want very to total Now pure given with unpredictability And that on that's on.

GAAP The other end of the spectrum is number. organic not trust fee leverage. Unfortunately, a there that's

think of so can't it's some we're to we how components really And just we expecting. you us give we going can what about track to but ask and it, that you trust that

leverage a the on on certainly And fee front went strategy. those it capital. one best expense We we're re-plan it's about think trust through trust you discussion on very focus trajectory probably us. for And But from elements middle as from I of next the did operating the there leverage. think the expenses. entire year, us to and mind -- on so we probably that's focus re-plan. that's our We the three Again, we did for what fee it in what We big track incredibly can and and let's about did think how doing. the way to we see

should giving million. to go key XXXX, we're the leverage that We're be going in. into to give sure exhibiting trust item income $XXX environment we're the in net is fee we interest doing we as up a so make And discipline the

the rate If you kind hundreds that doing you think that. to what far millions given of and -- -- the sense We're to dollars put possible this as of we're environment lean given high -- a ignore we have not to done we're to going we're we've up so what if in try year as got what get extrapolate of that in. you going disciplined And be we run be and a to expenses on get we've NII. urgency can of about

$X for a there's just just other that questions, modeling Thanks should in waivers, for be sounds to and the I if jumping-off as the just we million point just that quickly, this lot And million right? million of $XX impact into quarter, was $XX on heading exiting this your may. about just headwind the then given quick XXXX? look quarter like still clarify in of thinking And context. XQ noise to is we One is out the two Is but somewhere year. it fee expectation how for range income in the quarter

Yes. Yes.

right. That's

right XX% and everything and I hopefully sure the say assets call less. want products but the if we now mode $XXX or at you imagine biggest $XXX look at different and if XX if base it we Yes. is you levels. it flow if -- days are at for NIF -- waivers. to for got Again the can. repo, look you've the funds earlier, we're this giving think -- mentioning products, those treasure is The make overnight I different in waiver of over And this look the into at -- where treasury guys of call -- are to But billion of you you you it is example, have. that all about jump thought about is and billion And somewhere it business

you're at And talking about per so point. $X million billion and roughly, -- $XX basis

strategy if it that you that And much million almost if volatility a $XX down is rate but run year. dynamic by influences have so think just of them, guys that basis I a a numbers single fund that point in giving comes how such literally cringe about --

everybody And the are to be to of better track sense track what so quoted number track I think a you get the like. market, it's looking repo XX-month that numbers treasuries, X-month, important for right, might intra-quarter track overnight XX-day but

so -- And operating difficulty income certainly Mark, it. it modeling appreciate can I on the volatility is the other this has

last or the looked -- you upper the to over at at years looking in If mid range. X.X you're XX so averages something probably

did quarter we that that within This we're line what sit have from a they've the versus outsized benefit been. some supplemental plans normally bit compensation little that

said quarter. to this And high little average a like upper at you probably you're So if mid XXs. looked I the

for my Thanks Perfect. clarifying that. taking Appreciate questions.

Thanks.

Mike Moving Fargo on Securities. have Wells with Mayo we

Hi.

wealth custody in of best-in-class up related which on then said I And the XX looks as fee So the your have the you like custody much. up And twice fees by and XX%. last assets that the custody is is which need are best-in-class if much months you at half twice it only part asset up and disconnect were as between peer growth. growth it. But fee you're look is you led timing line But in assets management of under line. under the growth still year-over-year pace help up

fees. outside to going said fine. So that's you But it growth it AUC relative seem is like explain to everything still seems there. And just tied of fees, the AUC that's know doesn't to I the some on not

else something? Thanks. exciting So I'm in either or price? on you’re there based Or missing something just there's

us but business business that manage outsized of the use of want a the that kind that address it. business. institutional as The we're me is between reason that vast in -- that's here let not the business wealth And wealth for majority is portion So the GFO. -- hybrid of It's custodian. clients might to a where most the vast, AUC of and

so there that's client it's the vast spiky. you very, very, GFO. That is very look at when number majority very base -- AUC And

overall of of the AUC the mega number a And pricing going very of billions liquidity on coming if to we influencing so that We it clients small has of in could not get be clients from relationship client a think about billions about -- dollars very the have how of relationship. high influence And that holistically. assets get of that perspective. And -- number literally will fees. a number you line move events or without you dramatically from that the think an tens mega, number small that's can item AUC

And net customers And worth super what what's seen What recently? are they then? doing? high those happening with have you

Yes.

of they'll where be could assets decide they'll until business single for lot dealing period So those It to exposure time sale. be to us ask custody put a life funds times to those event. sale, have could work. stock that they're with a a they of It large

a to liquidity might them might selection And provider first advisers, from to that the other aggressive of so tax very -- to if -- be They and goal a that change an all some manager adviser. and but the They of our conscious. -- in is going then they a ESG which work the off of those we're those especially assets. what equity obviously can that are run the is also move for might it's assets mandate. financial significantly to might do denominator, so the is for size do business managers and we that They introduce where we change do We can might mandate investing where be a ask short provider. getting custodying become those might not of more tax-advantaged them. We do numerator to they OCIO into best-in-class custodian manager be put funds. it's in fees us into the our going a to we're But assets

one Okay. And then just follow-up.

the Is to better? the might make -- the scalability? competing? sense How business. question the behind because So you think gist gist I servicing take competition it do pricing in about getting worse mean sometimes it prices of lower was

be the value hopefully in do here moving conversations about those early helpful talking the from earlier just that played able How year. what in investment like are through more year. just is so there to like? to capability the you been performance, did as hinted general, solutions away. long concessions run What just starting should about those were we all and asset do in set, are the short business away And from resiliency talking run moving from away your In -- we be Yes. operations about handle does pricing have what investment trading the either help the to Mike -- us management to added. agreed the And moving things every The you in integrated more at look crisis? outsourcing?

but pricing severity we're service and about hoping about But in those discussions. have... conversations run you're of more longer and these going frequency we're so are reduce that to capabilities quality the the going And to -- always

work sticks just a word that they does you? -- kind come in of are The concessions they there so is out back? my for Do concessions? how magnitude mind, Or of Sorry.

X.X% still comes of back of year price to compression. kind I X% think it the a to

that's don't maybe So is kind just And word the that accelerating seen Jason, little I at that picking know, I different, consistently. or he's -- don't the thing concession about the talking pretty all. business of if a re-pricing but we've up

maybe, hey, either client talked client asset at pricing and have assets where large so says, And custodying, And because know a bid be and much but growth. then that have relationships as but grown gone just a time. were work you tied have assets at about because we our would grown fees have not have it those to as what more on good administrating they up, like tend look fees assets their to this, it the looks perspective add, over take I'd are gone are the yet doing a to you Mike, may your from up, you meaning our then whatever the relationships I that when those go on up just like

the that's so And exercise.

for get they're more pricing that aggressive not If to on agreement then able rebid. an it come say, going can you're out client to a then likely to to result take process as And we're it. then a

nature try when that. be just very at through Now, the that on also that factor think we to full like say, is again, But I new large course, pricing business process. to I a times. of business and to we minimize would it for institutions has price on go clear lose

is to us, we therefore required at to So have We can price and be able through can't win. there not as though price we picked. think either not you or enough you what your for it margin a out determine the where why pricing is lost where to we And aggressive you models we if to with who relative just ultimately lost. profitable are to it? win and was price it's get a reason resources And find they the process

Thank you.

Sure.

RBC. we next And have Gerard with Cassidy

Good we'll try. able but give -- be morning, got it big everyone. answer, to I've question a a to picture

Everyone sheet the have today, earlier What liquidity was Your you much you question. do deposits and think I obviously Jason mentioned because size that that, balance more Difficulty] think where on to that normal cost do it a of XXXX, and customers your [Technical stay. actually get being this? your [Technical at thoughts you maybe good. sheet any Is Difficulty] Difficulty] will all and we do fact normal surprised you're XXXX in know -- you And you base there? mentioned you have balance it think any [Technical in size may or

at? is Why the call your expectation sheet. it question, for with you're your picture normal these as going balance bigger a its all first question getting for size clarify I'll don't just factors around the Gerard, on what it you what but Mike. it's that Is normal started just I

Yes. Yeah that's correct.

Okay.

Okay.

the led say, across picture has provide. it a globe since with of boy Jason can elevated been details all your policy much that me might comment. of that without answer one in make But as as big the Let And me then lot would say, that there's to the sheet. I you and balance allows monetary size you

to come And and of kind see the go down. so that would balance your sheet of expect you back system out

into deposits" type period on So this "excess monetary right of is My we're for a do long-term it perspective you now? very have policy.

our marketplace they're I with be as it, going and know the now doing how to But define as some period. clients I the in that on balance our liquidity of And to sheet there's don't liquidity funds, a have what right in normal. so think time it far the be lot for

will our client want higher, the funds. it know some and period. water balance Now, sheet and far it think time add? is as don't as think for and if But to level in you I Jason, our I higher I just flows remain ebbs general, and

as the think I go today use you one-teens think when the and are just bookend I deposits a mid-XXs that in build. think comments -- only so to were probably where at bookends, you kind is, the look maybe about you end those of deposits the thing And but reflect higher if to of would ago it I back if Mike's bookends. it's near year

to been come to at just Very then have good. that the very what error good happened. back And you explaining processing

second And was into to you You it and upsized processing of out? caused occur processing of is the then mentioned the rolled execution it once it to the year days outsized means couple course. an that your it [ph] was take normal every actual processing [Technical Difficulty] a time. the execution processing Was execution cost? to whatever errors have And all figure services --

Yeah.

have So the -- think I just Gerald your I little because but I bit, line out in question. cutting and again is a

trying corporate say, get that a would the was size The two things action. arms first I of the large there loss. one, is to your it are around one, And you're

So corporate size corporate were action that in it our wise clients in particular large a marketplace the and action. active was

was soon do as a been just the one that identified made far minutes then size. anybody larger for as to So not It it's And It of the any could wasn't large was market. to having and we necessarily was within second else. timing large ultimately aspect for perspective, vis-à-vis just was a of it. us be then practically and the action. so as remediated be corporate it happened air It -- clear as

practical risk change looked not anything We're were about just it's unfortunate But it did costs we period that were the as disappointed situation. mitigate extended a very to do like worse for we that. position obviously that soon we going thought or got markets time carry because So it. to and potential as I'll we to able call an

Very Mike. good, you. Thank

Research. Autonomous on Rob Wildhack have moving And we with

Rob?

Good morning it remarks past the you last you've the guys. in Mike started tech today your you emphasize touch one-third a the little call emphasized scalability to bit in on solutions. of And here. in upfront

progress I you here made scalability the on are your up you solutions and us think you've hoping best So the an could going where to was tech and increase these update opportunities give forward? on priorities

I that's So the all processes it's do which asset the say certainly mentioned say has. from And I one be here you affected servicing as opportunity. would around Rob, and expectation you operations a it. largest that think everything XXXX and we'll it's pace the that the if our that been within continue that, perspective in to and would would And it the point is business we've happened did dollar that that's I pursuing is has and only say

is fortunate some seeing I for of seeing scalability And operate differently the within the business say would model. opportunities new circumstances and model the of it

more a work processes is part in facilities in that. And than a managing of is different So in based the a model. it frankly remote is remote environment person definitely

becomes And in as level will environment acceleration because it. it's differentiator highest The a seen for as this positioning. that nature our so that's changes we've well, then, our some we service as scalability. of get the offer of But that. aspect the again, an more And That's come adapt. also I'm other as And And for that to always much to with clients. market accelerated. But that -- there's becomes other of has own risks as been areas that want on be or do over example, in more we changed and more to scalable there scalable, and saying to through, their digital, more specific, being mobile response of need be management as great. things digital able well. going only that's that we've to that also where clients where The have and opportunity, for acknowledged devices. wealth business that even my see And so was had relatively we've time. in Being point to it's more already

So just that certainly much someone phone or increase instead scalability as of done. changes to can calling as can Well have of done, activity, and something can the to the can you doesn't resources because same it get volume they it that their -- of get go at we here rate. the necessarily that imagine, but they

just we continuing of execute. I So, see as matter it across of to say, a And kind the it's company.

Yeah. That's great. a Thanks A Mike - Sure. O’Grady lot.

All right.

question - A Brian. Mike we'll KBW. Kleinhanzl take our O’Grady Hi, on, from final Moving Brian with

and environment of that process services you Thanks different I when in about you guys. different onboarding think have When think versus pipeline, I environment is O’Grady in operating have - just How but what we this these could longer previously? know a mix you're the point. have Thanks. that about Mike with lag would one A work as how it's underneath to quick to in, revenues been current it there question, at the this onboarding, think process this today. about the you clients that Sure. are much onboarding

needs level do of been environment. have up transitions, in cadence of second a And identified in much those you've transitions, that yet, be mentioned, transitioned. have we business the the them So back the virtual some one picked third because quarter. quarter, of picked then, a sequencing easier said And that has And back that in how a has to the the the we as are up of to he's did quarter. won, high Jason changed in of, we it call end towards transitions particularly deferral or also of particularly -- aspects the

happen. there's activity you or I'll that's of already, think virtually lot lot A would was mandates, custody call about Investment Outsourcing are IOO whereas you if that could But to of frankly be if They type about difficult it a So can mandates, required. it it happens it done people. Office involve those digital call do. broader more I very think or more

And those when take or whether implement ours be to there's that clients would between people people or hiring And some that to business are to we're in on them. types longer able to then, of on so, us the they're be And are all transitioned. for requirement there. mandates to does take and I remote, say moving there's that get

So on. which other little you questions? activity the the great. take that wins fund a the heard any you're it that longer, had, of some that XXx does we've nature has Operator, But administration been taking of bit space given in

conclude was No Q&A sir question. the That final that session. does our

I'll the sir. remarks, additional for you So, turn back to any or floor closing

you for to us. everyone days. joining XX Thanks We'll in talk

All again right. And that our thank for you We call joining conclude today. everyone, us. does do for

You may now disconnect.