Ameriprise Financial (AMP) 26 Oct 222022 Q3 Earnings call transcript

Welcome to the Third Quarter 2022 Earnings Call. My name is Lisa, and I will be your operator for today's call. At this, all participants are in a listen-only mode. [Operator Instructions] As a reminder this conference is being recorded. I would now turn the call over to Alicia Charity.

begin. may You

good Earnings and to Financial's Ameriprise Thank morning. Quarter Call. Third you Welcome

call are On and me with the today Walter Chief CEO; Jim Berman, Financial Officer. and Chairman Cracchiolo,

your we'd happy remarks, their Following to take questions. be

Turning website. slide forward-looking our statements. to available discussion see On our that X, presentation are earnings on a you'll of materials

to numbers company's Specifically call hear will measures, be you during of operations. today's on financial insight Reconciliation believe materials GAAP we our provide references which their non-GAAP found in website. numbers the can into to the respective various and non-GAAP

shareholders which with will to on we'll trend of today over focus the call the Jim. Some comments By GAAP believes unlocking at business. future be uncertainties. the A Many financial unlocking statements you number that of that X, plans statements materially our in we enhances On see make more that from the of call annual overall our today's list core the the results. page third top adjusted XXXX could it revise and sample as reflecting on earnings different and the operations, about release, a and in performance operating of statements. this turn date reflecting publicly expectations only these report. update annual third risks These obligation risks and involve makes forward-looking management forward-looking see or may third to facilitates speak of management's adjusted statements and to analysis. management results operating our operating our And to actual on operating excluding We by XXXX our our factors results performance. be results meaningful found forward-looking, events We make that, quarter completed of of and and our for understanding forward-looking cause you'll our a no that quarter. slide XXXX Below the XX-K be quarter. can underlying results, report followed

our do my quarter Ameriprise call. environment the to Good Walter to and morning earnings give I'd you welcome Then performing. like cover What and will is third financials. perspective on how the is

economies will believe at lead catch it a to market causing level Therefore, a were in I to just in up, banks Fed the the a in fixed equity for that, quarter. a In they year under there increasing the and US here slowing European will rates volatility rates raised and I ahead. juncture, control. central to This inflation bit third keeping both environment Having decline this of playing high points investors more. recession. points and far been and mild it is both said third like and will Europe. and have Inflation markets have looks more other is continued the geopolitical continue of with basis that the elevated. quarter short-term income of terms and sticky XXX more risk remains high volatility heading get be on basis that sidelines and so this the interest to expect that With up in XXX we're

results in are outcomes to and And good So strength that for challenging saw quarter. deliver our this in our diversity allows certainly Ameriprise business the even you us times.

interest difficult and of bank years markets the inflows advice protection our the more helping businesses effect focus growth and wealth our service, to we rates, our rise in of a are and that we and the continue product offset We remain on continue client our in helped environment. business than asset the strong our management and depreciating client retirement business. solutions stability navigate as of the paying foreign The in made management exchange proposition clients impacted the value investments and dividends to our the technology, in strong advisors over

discuss our in X% assets steep Total fixed trillion, ago, like results decline and markets were our of a impacted I in the year from Now the which exchange equity $X.X by third is more affected management quarter foreign to and which detail. down European strength administration assets were the dollar, the rate and under business. both income

return unlocking share billion adjusted $X.X that were of time per revenues up terms this And In was operating X% at earnings consistent $X.XX. with XX.X%, strong last X%. which financials the With were on up equity to is excluding year.

businesses. Now our a let's about bit talk more

the continue cash, quarter where to to with certificates we environment reflect Despite wealth other We and had billion. Total XX% engaged. more stock and mix client advice strong flows good growth as clients up the results. deliver $XX we flows than remained the about brokerage strong Our The environment in in. saw we're and management were flows products. client

at firm personal advisors highly we in about satisfied $XXX,XXX Engagement with their and which liked billion, very We proposition, In a per compared year strong to had a and us growth good just and me was We up we to to Very and the advisors. marketplace, support seeing grow. as It's value our of good the year, competitive we of invest brings recruiting. $XX stability adding met the to quarter, advisor. them more advisors than the provide. quarter we a our are Ameriprise. the Which to value firm. the we have technology our balances As remained sharply expected consistently is cash relationship ago. continue capabilities third productive productivity to continue feel XX in all helping another I cash more strength recently $XX pipeline. our tell reinforce to added the success the of they brand, advisor steadily the we've be recognize the with business. our they recognize highly and continued Advisor And X% as good to across was than our billion offerings. up We're importantly, terrific, advice. growth discuss top It opportunities

release efficiency improve actionable of We advisors continue with and our practices. enhancements to that meet clients, tools, advice, capabilities their and and help additional engage deliver

our of investment continue been our be flexibility our deepen will important with offering very provides on and us expanding much clients. part in bank rate our focused engage rising bank. this cash good environment, opportunity As and and The a growing to further we've interest agenda, to for relationships

invest quarter. move spread. garner with the to $X.X grown continue And Today, to able We $XX additional our appropriately in to adding bank cash the we've billion to bank that to billion. been has third nearly

basis bank products see strong wealth pledge the our XX.X%, good we in and also business, be in and forward. Overall, points. and as business move continue growth profitable to the We to up loan we'll management advice growth reached launching continue more margins XXX generate

to the annuities generate this for retirement are well with solutions. strategy solid environment products. turn let's narrowed for clients Starting living as and benefits, that variable concentrate we with and sales place, have good annuities, our focus without continued in Now firm. protection products that structured and on variable in to as And to have we our

we in the down annuities As but with Therefore, are our sales guarantees. away industry. line with from have shifted

complement Live shift other returns a sales focus again, in to They industry. to away continue also line these We our products. in stability, VUL in insurance the done DI results but and to as on solid a made flow climate give we've generate from with were the on will appropriately fixed and good cash to also down Based what risk businesses. businesses. earnings, adjust protection

Now we'll cover asset management.

and you've an income from seen across the equity impacted markets fixed perspective. have As industry asset levels

the presence Euro with in appreciation manager As a affected Europe, sizable the asset versus global Dollar. the by were Sterling also the and we of

were based perspective the records. with harvesting given and the off you've of maintaining XX-year management more BMO a performance have this market FX acquisition. more Consistent five- Very X% the and what loss under seen in are track maintain Assets markets critically $XXX in place offsetting to level environment, to the down investors risk we billion and fixed investment on depreciation. and and tax good than three-, we're mentioned good a continuing I've industry, you taking impact have equity of income

of a the the our over of above an been meaning course on year, over there's While funds asset are basis. volatility lot of XX% weighted

some been some impacted in because of interest in of Europe, And Our were strategies of growth quality on equity short-term in strategies our the income rates. fixed spike has based our performance impacted positioning.

retail, of institutional turn bit net in and gross outflows We flows; retail. quarter the had legacy $X.X but included Let's In for a higher a quarter overall, outflows, by we've the that $X more industry. pressure we're ongoing us toughest improved sales were with insurance lower quarter, in and billion third of ended billion, offset second from the flows the retail, we to in outflows, seen and positive markets. line than partner redemptions driven it in the in weak net given were generally outflows behind In equity by ago in remain Europe, remained given than see results fixed were industry for In the our income pressure, in than conditions. a year billion industry EMEA, overall product the the retail of resulted quarter. bit continental the US $X.X outflows This mix. we and a under better improvements some did flows flows with

seen net Turning environment billion remain In $X.X and asset allocation some and the inflows extended insurance given legacy with management, institutional, fundings will to asset excluding markets we we've the challenging. expect partners, global calls. get

business, stabilize. markets and settle going that's and think rates well. same we time EMEA opportunities However, be At as there will BMO the down time, over interest

the We servicing there. acquisition, as also we'll we be managing towards very for in capabilities. business have right well the expenses to eye forward continue strong X% to very to But in good the in a EMEA focus move by overall, ensuring and this and platform distribution, focused brought have BMO we continue market, make investments that adjusted G&A we as expenses and down

ahead believe markets we will a operating look these for I continue to As be in Ameriprise, for while. I

as and forward. from as what we're engagement as moving can as leveraging investments our on So strong continuing manage That to we control. you much with expect expenses clients includes very we advisors, well continue tightly our focused our us,

In environment and high know And just opportunities advisor through how and our good ahead. we employee both what's the challenging on feel is the challenges our really and see for the engagement very very for are the about satisfaction the good we clients. navigate have businesses positioned I industry people our focus total, critical conducted a business, this our allow advisors. about the generate level levels going and the for flexibility good what is mix of strength a cash the bank and growth and Importantly, returns will consistent these the very shareholders. and markets flow to and of our the We our of important free we And team. important continue and surveys of And well of engagement our of feel and I keep feel I leading. to how like we we deliver us firm. to

turn I'll and Now Walter questions. your I'll it then over take to

Thank you.

the As euro expense demonstrate discipline Jim to in environment. interest the as quarter unlocking and and excluding said to of rate with $X.XX the momentum, this than the equity EPS of results market income in proposition market business adjusted challenging environment significant weakening fixed Ameriprise value increased offset appreciation, a pound management strength the more higher X% quarter. Both continued coupled and

Across to to We relative operating year each we revenue XX% wealth strong continue the to which segment. adjusted ago. represented tightly in expenses benefit manage within the XX% the quarter, continue in up earnings from management, from opportunity of growth a firm,

other G&A wealth flat firm expenses and we've investments bank in while overall a excluding particularly On managing the initiatives, year-to-date expenses. As result, BMO. to are basis, growth continued management, wide make prudently in

for X%. We year G&A down be that the expect will

in strong shareholders. depreciation of market fundamentals balance Our quarter sheet million capital a continued we remain $XXX to returned and despite

we year, XX% to operating full remain of to approximately the For return shareholders. adjusted track on earnings

slide X. turn Let's to

ended under down $X.X Assets management quarter administration trillion at the X%.

BMO from client respectively. impacts. experienced down late the benefited and strong we year, XX% AUM/A significant markets and Equity flows and XX%, fixed market of were addition While last

remain from largely US year, rates from strong than substantially the XX% With addition, impacts September. interest AUM Overall, to Asset Management pound last that total. environment, businesses and with approximately strong of income significant negative AUM were In in client euro, and non- and pretax this benefits and by markets fixed more significant the up foreign impacted of offsetting equity excluding in down levels the occurred X% meaningful earnings unlocking. weakening flows of exchange

a result the low by management Let's wealth client margin XX% nearly of higher basis bank timing $XXX market wealth with year-to-date distribution management continued in year, other transactional depreciation initiatives. partially the T&E, staffing X% and can with assets turn The the on investments X% up performance continued as be over anticipate declined higher-than-normal well segment on to you year-to-date is substantial growth a in year quarter, year-over-year balances. anticipated slide XX%, volumes management current to drive per in wealth and and as year to brokerage, expense basis. significant beginning expenses past associated the year, pace, declined we quarter, X, billion individual X% reached G&A into interest sustainable the activity unusually of to operating We XXXX. the continue into points up growth this quarter negative remain $XXX,XXX non-advisory relating X% of market activity. Pretax line pattern 'XX offset expenses year-over-year On in the higher interest X% driven accounts, $X.X organic the productivity flows Total up operating net last the up X, third growth. our organic wrap by rate and full enhance up XX% will and strong year and Revenue billion slide with to $X.X XX% billion, growth. asset business in and client in as reached expenses and XXX year, with in a increase sequentially. strong lower and expenses strong in basis expect levels flows points the fourth certificates specifically accounts, quarter was billion to of from Adjusted from over from the in increased XX% reflecting the in and prior growth and retail with as impacts from the prior see that quarter environment. profitability depreciation XXX and benefit down significant transactional up lower with exceeding from rates benefit advisor $XX.X

Let's more components detail. discuss in the

billion including accounts certificates. products remain continuously First, of cash needs, is to this less meet $XXX,XXX. working cash majority crediting and brokerage multiple is available cash bank And clients our in our competitive. at half cash, $XX over benchmark with high of brokerage With quarter. client and The remain balances have our balance the client for rates than

experienced we others extent result, a in have the the sorting to cash of As not industry. issues

liquidity another offer products their solution garner certificate offerings. additional the Our product looking rate some clients for to in ladder upside multiple and

the duration from $XX by ago. bank - our In the bank creating sheet $XX year investing provides the bank in sustainability cash. higher balance from above to we XXXX, bank pickup spreads from interest up quarter, optimize wrap the quarter, the high Second, quality, in flexibility points plan longer to billion the XXX of to the the investments grow in benefits earnings, approximately XXX rates $XX billion a nearly billion is securities, basis range. In the reached from

XXXX, from us to earnings this by the over we spread have million past opportunity rates continue year rising client Over to $XXX In XXXX. benefits our years, over the balances into lock-in client prior the several increase term. the trend X% and total cash consistently This and been X% expect assets. positions total versus medium to of those capture well will

acquisition well a the in foreign of X% the market. Let's broaden as unexpected to market mentioned, We're asset Total on slide about turn Euro I $XXX managing business management and under billion geographic to BMO primarily pound equity X. declined through and exchange from with management diversification challenging and assets negative significant XX% depreciation income impact, EMEA. assets fixed the our

diversification our foreign this exchange exposure. However, increased transaction

to out global from market offset in like the was outflows. slightly portion our quarter is target declined our experienced of geopolitical retail strain which XX.X%, XX%. volatility, in industry XX% we is institutional in and others, continuous sentiment business exchange of mantra range As above and last year a EMEA, foreign the risk appreciation quarter, a versus global markets to Decline flow attributable off broad marching impacts. investor the pressures an Like meaningful strength to

depreciation, foreign margin September, market reflecting you financial expect slide outflows. results erosion reflect see environment. the to we management Given weakening in currency and depreciation digit asset exchange material million and additional quarter. market On declined Earnings significant next foreign double can weakening $XXX market the XX,

Importantly, X% aided to control. by years remain expenses mannered, were the we BMO well a decline G&A. in excluding continue we XX% can Expenses total manage down

and environment, committed We and very trade-offs spend driven revenue continue managing the and quarter make the tightly remain to stable at expenses rate points. discretionary XX basis market current remained to in fee in the

$XXX action quarter and variable in benefits our free pretax the as environment, risk a result Annuity risk higher the we in remain quarter, and turn represents inforce which variable actuarial sales represent declined to of Let's lower without were volatile asset limited sales generation, products unlocking of as flow well clear million. discontinue the concentrated to total total profile one slide of of risk earnings a Retirement solutions accumulation as of resulted assets. $XXX earnings the assumption deliver to unfavorable update, business. the stable industry continuing differentiated sales products management quarter in account XX% to now Pretax annuities profile. the excluding with third of Sales completed were VUL, In our impact of adjusted annual VA in result similar to margin million. operating XX. which market protection Protection over insurance and annuities. These value. the structured reduce guarantees in cash

the our reposition to portfolio interest to opportunity. begun rate have capture investment We

to extending mix short environment and over increasing now without We the past credit in the have the duration this low-rate we have risk. changing on years, remained business enhance by opportunity asset in duration the portfolio several given yield

let's balance to the XX. move slide Now on sheet

high In significant Despite below portfolio portfolio well investment is hedge only remain diversified investment our strong credit rating sheet with positioned. fundamentals portfolio of securities. quarter grade XX%. in in strong AA average VA market the the the in dislocation at Our X.X% the quarter, the total, very effectiveness and quality balance of remain remains

Our flow stable we business contributions from capital from all experienced and return that to diversified business depreciation consistent market free cash shareholders, supports periods This this significant like even of during model differentiated level benefits segments. of quarter.

the quarter, liquidity During company $XXX remains returned in we strong. and capital shareholders excess million to holding

operating questions. return in of XX% the We we'll your track to are shareholders on take adjusted XXXX. to that, approximately With earnings

[Operator Instructions] KBW Krueger with We'll our from question Ryan take first

any your excess and update Hi, thanks. give quarter? question you us Good the morning. first could My position parts is capital from on an moving

that. from last it's billion. is I'll the unlocking. and that number million bank quarter And drivers dislocation remainder down Sure. market The in is the the $XXX the the from $X.X and the take is coming main on growth and

forward? and more it. retirement you. million ex in than think impact And us $XXX running our they'd run Can Got to that? also you range. Thank million help earnings in previously business $XXX how separately million are going been this portfolio will repositioning over quarter And rate about protections, then the unlocking that earnings the $XXX

little say did it, Yes, we And yes, do I out. we it we'll we about anticipate But run are the that's talking would reinvesting rate forward. I between is yes, up are XXX that going take that you as one two, think certainly increase the range bit. a again, interest rates, because

short looked basically advantages duration start opportunities the move As would But XXX because I say portfolio with the ranks. off, would we're we I now, but say out. go we taking will at it and we

with question next We'll from Financials. UBS take Hawken our Brennan

more that to is rate with and than attractive. it place on good to the you of start that a balances morning, that billion about in capital. Good environment some question. Walter, we that saw some you'd in utilize taking not Jim the moving $X my of comments I XXXX. I'd like And believe accelerate XXXX, love bank. indicated thanks certainly be in for seems move Why

number bank, demand the And maybe one. number when as where is that's eased change seeing two, are you about growth the of you result loan book the any demand pledge up. higher So or think then rates a within in

with will will will investments it I balances that. both capacity the source capital. gauge to next to both we it we, also say from is situation, as We certainly $X feel least do of with key availability to assess obviously and that at the relates liabilities was standpoint, 'XX, would of be that from and meet of we and year, add So we will more, standards, probably that the the the the, the the we it's And have that we that indicated two, diversification standpoint a quality better availability very a have that. in our be element factor associated comfortable billion

So I probably modify $X billion. say least at would and

demand and those pledge Have in seen higher shifts Okay, Or to rates? you is thanks with loans. continued then that grow? for clarification, any

On the -- pledge loans

is it. standpoint, pledge, markets, we hear, with the didn't over actually, for in pledge sorry, On steadily. from now total with an billion it's comfortable total adjusting standpoint loan right with it's the it's I is that And And I growing a of $X feel am but very program. that range our

So comfortable very with we feel it.

Great, And -- wealth in the wealth then thanks for business. that. in

there. assets and that? higher? in with do is maybe a recruiting taken generating capital even considered Have returning build you to net had pushing allocation actually track you've having guys the and the adding and digits sort an that of on maybe I shifting any in have new capital and excess appreciated. it's really steady of considered of to mid-single that so to your long And great You you're far? a you that a comfortable continue that some the to [Inaudible] you've little record Or shareholders, success just job and advisors, of But recent that capital approach using think have

per processing we, continuing platform in recruits, to us been focused we to very to want people much quality and on Yes, bring se. associate a just have don't so we're

very grow practices, And good ensure retention really their have margins, proposition. excellent returns quality and helping see, a and generate client we That's on strong we can assets, our keeping good That's experience, have we client of important. value high. very that advisors we we build. an really good focus satisfaction why you retain good As good client

IPI time continue their And bringing attract good we're building succession in. and bit practices We're look on teams. their building also people we're group that the younger going again, channels remote and grow more also some compliment. and in advisors force. a business some doing in is extend expanding our and some and think winning advisors to we're nice out work activity we spending will and in advisor also our our that So accounts to be institutional which we're there And on helping a

along lines, putting money work et are we investing those to cetera. So we are

it's continuing areas but much think So we we about importantly, drive build so value the the generate that against good to continue not use of that can about our both in more proposition. capital, it's more areas returns, out to

Suneet our Kamath question next take We'll with Jefferies. from

thanks. Great,

the I assets another currently bank, Just to have to in more the guys adding that guess maturing are supporting. deposits wanted lever to thinking to that you is go back deposits, addition we're some could. reinvest I if are

you're to if rolling So the XXXX? in And those of your possible, to those frame able on was are assets can how what maybe yield invest where assets you today. off much relative money

me you XXX yield, that. on mature. up numbers to that but going I you back in so the And have you an is Yes, to I basis expect it, it's take that to least what's this year. where at don't tad should points at duration mature over Walter, because versus the exact billion can short we're on And have Alicia, XXX approximate, pick over if $X imagine look duration, we're you approximately get or let three, is should

as and I UK progressed, on questions Thanks. So in And how if on about impact to getting quite that, possible. then that Thanks. be? your for management want maybe just there? where you exposure towards or risks going few make And that UK, business an we're thinking helpful. quarter guess that's any opportunity is, as what's what where it's Well, could could there the terms out? Jim, Okay, of frame asset your are, in you're the LDI sure a the clear on

Sure, Suneet.

the trillion and in the supported it's that long-term it's by abnormal, this to seen The market, deviation wasn't over September. think in The European something the And the and a affecting is clients So really regulatory post everyone rates funds, the additional by XX, in up, going very pension I $X.X large all so dramatically they're cetera. having on And event, authorities. gilt interest markets, that ratios. it UK, almost as in increased depends their is really to aware resulted the maintain coverage day. bond which standard in necessarily volatility the ratio was interest was LDI volatility collateral type to rates that past, is et XX, used

back have back maintained over will do we And some more you sense positions, collateral systems. This come expect reverting to would as the their but then clients this free mean. market So LDI normalize will to think up the had around the the time, and and they it. to post a assets of stabilization and

to important But their adjustments pension the the continue forward. to continue we feel the there. get they have way market we to utilize going that very like And assets going will market do forward funds some be So returns. for manage the the will in expect to

And may get with you some you, sure be these in. that the easily any market, us, as more fact, make course would flow in in leverage of we of dislocations. saw but major there And new bit, of the can some players markets decline, to to level seen adjustments there's meaning that came a really business fashion. haven't the depreciation asset operational reduce a more outflows Some from types have bit

we recover. and will effect. this like a we there good feel long-term business significant do still can feel it market we like So a And won't have

than a AUM, term significant of opposed kind near earnings So that. to anything of more issue, just potentially more to summarize, as

Yes, exactly.

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

you Great, good for question. the Thank morning.

First, just around kind of wealth, and that's and and of dynamics and the advice over how advice some trending. cash

and beta the in third the in seeing as that the whether if cycle, you is demand positive you guess, part improve very sweep, b I look you clearly any still to will to point forward, progress? well? this as at that incremental party curious So to do see great is starting channel from that low bank spread And how think

have demand, And the So and do issue directly that an I as standpoint. about more our certainly we as with to from as extensive third-party program, on also, we talked funds an have of the far capability placement and we certainly institution. growing bank reinvesting the bank allows us not again

account As we change look at rates, and I'm look, and evaluated we you they rates go will the beta, will sure to compensation do far per competitive be scan we week, elements, this. deposit look a as going competitive up the crediting as each certain the at as or certainly up relates they because client

our our is focus are appropriate that clients course, Of getting competitive. to that are ensure rates main

Got you in Walter, seen demand quarter. real saying I to from third just understood are improvement make -- banks you're change over or we've it in that seeing what an of terms couple sure no and party the the, last

saw is say a healthy ago I And couple a it's but would environment, this that we Absolutely. healthy back a months certainly standpoint. environment. of from

of Bank one opportunistic some think the management been about articles talking There's a Understood. you Got guys potential very I when In about of Jim, platforms kind And couple for past, it. Columbia of for obviously America. acquisition from you. asset then been the sale. have

about potentially remains, or of on think the gets environment house? you side Ameriprise M&A incremental here. opportunities of guess the How dicey I management do kind for the As asset for

consuming well, time see dislocation attention. a flows, the focused much that international the now. you through So, as very we of appreciation business time and that's BMO and some and and right can of pressure we and integrating the We're At the this again, alternatives. from and some that think we I on of really And same are and ESG have been in level that's and engage have now markets us a know going some market right going to some areas lot good going and et OCIO new and from cetera a our in to we clients the for the cetera, is we've maintain in really and it. of et of time, disciplines stuff institutional the investing some that on

but play sense. it it's we some there's know down the the we now hand, as we'll significant on So good right don't something about plate. feel road, dislocation, and that have more the we not makes if Maybe

Credit take next Kligerman from question with our We'll Suisse. Andrew

topic Hey, thought. I end, little robust And Could as the that some give volatile. talks of on locked general, insurance been to care, Ameriprise annuities respectively, been have would transactions? And about in good staying just blocks having and divestiture M&A but would life optimism transactions maybe pretty a we insurance you long-term some not do had Maybe the the of the divest? morning. have on variable potential and types as markets of coloron you're assets

Sure, Andrew.

sense, more interested participants using high invest transacted have or what a with quality focused books. that in more general In survey their so the to what opportunity we what -- said, as so that evaluate. potential to we participates they've structures aren't would importantly, call in markets market be they just there of the doing, So found, and and been count a assets to various lot capital I may And is wanted much on can most that we situations.

that of to So we type from look that and market don't that realize sufficiently think evolved value the business. type at the have, we the of we business has

types our we business, living feel without annuities businesses lot business that including move portfolio. benefits so de-risk this juncture, very of variable actually we part good about the on that bit we of And mix volatility a more have out of holding significant a as our a long-term at of or tail of actually business, tremendously, of

with the benefits that's other The way in the right with actually this right done portfolio and was benefits closed the point, right at the living hedging.

so flow good get from these good And cash stability. and we businesses

saw In even nice has is side. And equity get able current out book, even now to quarter; could of number the you on years, the the I the been appreciating our is yields get which for long-term good. you've higher us longer markets and quality a invest as this think over the care years. that wealth even stability of you book, on in see current a

on the here juncture, time the up the to maintain we're people this we type And see. book so businesses of invest that businesses And that the in, we'll we're opportunities, again, over more move starting some at think informed I as we manage. might get and but with and this we're very have start what hand handle businesses, to, doing we I type comfortable think type of of there be to we

like And compliment, so an think particular a this. great we environment it's actually

And peers. income. you figures management around excellent do helpful. and a kind color Jim, really retail-, numbers little over those equity turn strategically versus to to shifting maybe are fixed three-, retail just have to in what why XX-year for asset seem versus that peers, numbers and one-year clearly deteriorated might of performance. retail That's and give you presentations on both five- But deteriorated the have in Could

think good that again, and a level. we've So higher little mentioned question I

a me little you. let dig So for deeper

good So down. underperformance we some not that few portfolios, overall the for pockets a the it's year, in by really brings across even where very have averages lot there a but one are that the our

So of some income. our that's in fixed

the and rates rise, our duration, credit more longer. as so the the spike of because longest interest some was much quickly, were a in of the focused side, teams bit So in duration on the

reverse in it's impact now yields impact growth, be Europe. on duration Europe, second equities, of I versus probably part come and longer. and they It's And But underperformance. break some et the because benchmark they shorter cetera. that their gotten when And the of then the will will we value And further in not the say that the don't because good cetera. have we've is around into so as where on that's not where out et would get

less it's understood has than portfolios. quality-oriented And a growth bit it's performed in have wouldn't we value been so down And market, you as growth oriented. more better though down, even have this

benchmarks benchmark know And in there that our a basis the they they longer and the on underperform that But portfolios, good invested and clients the but understand feel why benchmark, that's is term. so the got about what those over you why that's underperformance.

question America. our Craig take Siegenthaler with from Bank of We'll next

you next see as And Good question XX months? balances. six cash My expect brokerage, cash a How AUM what market do on activity you everyone. money Thanks. do sorting the over about to sorting. is and fund trend morning, the impact direct

start me and let to complement. wants So Walter if

already in of growth cash occurring. we in catch there's you've the of cash, have sorting So had seen what the already an all

category have of a than itself, and some gone in into duration $XX if logic gone growth markets, is higher has the cash because billion into activities. it they funds call So and money you'd shorter brokerage money

growth And have, that is programs. transactional of this we so growth more or our of with the more of that's continuation cash in the health the certificate in the the

some it. occur some may of of to the cash the sorting as we of have But so more grown you said, ties quarter, the And the saw sidelines. third have we people see money in because that cash moved

this $XXX,XXX only thing The over said XX% I'd less. $XXX,XXX cash I yesterday, Alicia of is transitional or less than add is working there think

competitive there. And So we we is in are -- do. its is certainly stickiness what

So of Because higher less tiers, that constantly an issue weekly, I for is this think ensure stays. sorting from and in standpoint. the us I to we like are said evaluate, we that competitive,

it's think different we have. stickiness. that model it's So a I its And demonstrating

sheet balance And reach then balance Thank cash an mix you, when cash, are of opposed that off Walter. effort. equilibrium to bulk you both inside the your cash longer-term on cash, sticking I'm your as transfer brokerage and the what bank. for of thinking sheet more in with Then targets

situation, me current and getting with clients take we certainly a So obviously, shot. coming. new Listen, cash is our the growing have a year from let additional

feel the so all I this you'll And the about said, to see yield points, so ability profile is standpoint, billion go. the we've think is substantial there's see the as sticky. situational certainly at where is strategies say $X it ensure over because said we we stage. in we probably alternatives hybrid we again we the case, to on that reevaluate from for grow that, I risk directional my to our ensure And have gauge at for, certainly that impact just garnering clients' but they're I very and But it's top would to this stability see as going opportunity bank, that to will the obviously that from potential with the the looking our as use low with least we will redeploy needs that developing we a investments also something when bank as we increasing do percentage do And $X our both that's not we're it's do driven. we I the growing we that that high And at we that see because why transitional that it of but billion look progressed to multiple products indicated to meet projects deposit capabilities then the grow, in and going talking to as of earnings have comfortable, the higher the standpoint.

yielding be It the see in of the other types the deposits you in institutions year. of and then products of a in first in later deposit launched bank, quarter will starting number in other the things some high and types that of

in not to absolutely an the transfer grow opportunity So just deposit there's we but to base. money feel

our next Capital take Lee RBC question will Markets. We Kenneth from with

morning. good taking Hi, questions my and for thanks

Just range are benefits the you quarter outlook there's target for mentioned on driving And wondering that factors the obviously, specific of any erosion this that FX. one any of asset margins, on in the management nonrecurring. based potential past business in potential if above terms the margins, terms

further just could expand Thanks. you if wondered, Just that.

are now as the was that of benefits XXs. which to taking markets standpoint, market you're business. we've we margin, we're we appreciation the place. the getting absorbed business, we So nature you to saying certainly mentioned as BMO saw from their that indicated associated on they're relates at already the the their lower from as And is margins, looked to in And last that certainly running they the year that

But that of everything place the foreign that and other took XX.X above, impacted as the is markets, mentioned, by timeframe. around substantially I there's that. been above the range abnormalities we target is primarily, exchange in XX our than So basically impacted no see to September market that's XX, slightly this have that deprecation the

see market a into we'll will but there'll situation, range. low the you driven be of a fourth to carryover that quarter, the the probably So end move it of

see you year foreign the and the acquisition the that assets. And and sizable pound exchange And And ago with in depreciation can size the Europe, have UK, had in of our a we a the euro. of that XX% BMO effect. of

positive. combination will bit. maybe strong, fashion have a that to stabilize so back over that of start squeezed be But that and a because and Now, hopefully, the would markets that dollar the come a in time really appreciating

driving follow helpful. review, And wondering may, just of the you. just impact. of on one Got assumption the Thanks. I annual share most us the actuarial up you changes could just some by, with key Very if if

one was we we net and was is are looked Okay, coming and was our that saw then elements a It benefit also extending key that pattern. in our out from that was lower actuarial from of adjusted our at only standpoint partner. drove the experience tables, that those it Again, that and nothing the trendline. the mortality -- living and therefore laps so the we just

interest not ago, in we And rates. our a interest than you and lower where rise rates adjust year the had did can we see

Evercore ISI. We'll take our Tom question with Gallagher next from

morning. Good

to that's those difference build high the used the just about perspective I curious up? on bank give level compare versus from that some the and ROI is to repurchase? share however that benefit would been return bank question share are ROE, pretty you've if what grown get you of ROI between wanted how do you the assume how right you to and ROE, size can about are just build First but the think and describe much that the you Thinking how now repurchase? capital of

inhibited because think, cash free shape we at does the in interesting, listen, any capital our have, look Well, manner, in it's of to and generate amount I as ability accessing flow, grow not you or amount that we of constantly the we of situation are that access invest the both and it to and our and to a is to have. form evaluation we the our the making benefits bank continue generation as ability garner in excess

very our things standpoint bank opportunities, the we certainly look impact is the ability of key that And opportunity certainly then or levels. constantly reducing business. investing element the return other not to shareholders, are And that of respectful looking from the So a stopping that and do buyback us. would to return that one we is at are to but at, we excess, getting basically to the I in the say to is an our that the

So I exclusive. would mutually We -- not can't they're say

And not expand find help products it complement. is of offer become that today, for it's and clients, situational deepen just us our you'll bank will also a what the I a actually them it other lot business. And nice strategically but think the relationships, will now with for wealth

capital that great actually we and it. so it's was on and diversifier that a And a very great think applying good get complement, will a return

in I on least whole at me going million the clear and to so directionally less to XX% to whether I pickup up just XQ in a or on to then listen it side, little have And I'm thanks. XXXX. follow $XXX just compare correctly. this go I XXXX. sure cash to earnings, a in want But would benefit If then it's revenue to much of I'm to correctly, add, thinking see on everything into up, at would expect you've give revenue heading you But into billion pretax how cost said a revenue to a had any. balance headed the get on the side, XXXX. that all-in the and I rate million crediting, the should to XX%, you somewhere then run that's to $XXX can where Okay, you look still expect far, the about $XX can this make of

the I'm revenue So, give credit. right pickup also me can then Walter, curious some if and whether the on directional place in idea you

nothing the of feel that lot in lines potential very going and move we're with the increases as forecasting, we because coming in as And I have, certainly, report But am elements going it. you accounts we into go of certainly cash trend as will bank, fourth say, to go -- very, fourth positive variables balances up are, the and and strong a a certainly, and see in out short but of first to line the the have the against is And the instead investments rate we and XXXX. trend both picking sweep trend you of be there's there. we Tom, into we complement the a what imagine can quarter XXXX. the the into spreads that of the

move up can for might think Walter, Whether doesn't you sorry, on Do so am fairly how change? a be look still of think I a to sense on for Any just going Okay, much up that's that impact? curious. anything crediting low that just off, it offer, to you far. that had might give you follow you've like cost

on that's ability going the case. Fed's I'm the going well as I what will up, of if accounting, transactional not there's there it in crediting cash, will rates transfer. next rates? the that sure with size have the not keeping rates to a what adjustments to it's to I assets was this, pretty and of be invest we in go an a we we as whether be I based so rollover to again, Water out. we as there's going said, is or I say the raise also is and be increase much lot could things some is that make pull continue it's year. And go back know saying inflation But invest as but to is Fed to persistent or offset But of will mean, how the the of if would up be some we based really on bank is again, continue question in and think persistent, have they to a

think offset the markets we overall the we're very here. compliment that appreciating from the will I from good feeling business bank, what us nice give So we and a get what get

Wolfe We'll question Steven Research. from Chubak next take our with

Hey, good morning.

within the So financial that some with opportunity that institutions tape, channel? you perspective? you from the envisage how organic the the material some on a during wins in question help choppy you growth, just the in was can wins growth why frame result, those channel quarter, start And growth given M&A organic the organic it of off an X% good certainly recorded a drivers don't like we AWM, looks

those wins. occur, are And a getting pipeline nice good some follow. some Yes, so usually we're And of arrangements. as we size the deals assets of have larger even actually deals types

on you cetera, et occurs, channels. So and in pipeline to that have then those that the help that advisors, sense, grow you bring

a not be we over will very to So road. something business in the but it'll this the businesses. progress, on of be out other size it. look feel compared nice grow scale based growth, think yet. scale don't we yet, scale We good That'll the so and we down information at a time, break It's again, about and we'll feel

up Got some relating discussion the just follow you've relative cash noted it. on cash sorting seen that you earlier to a trends to better And sorting, peers.

to was balance peers you activity levels alluded or Some also you to peak cash just expect in balances where terms and the we maybe what update once in terminal heavy from cash out a across of your complex. benefit activity whether you're hoping and settle an of more October, little a just on selling September bit in can Fed of in funds give reach sorting just it's or trends seeing specificity terms

clients, is would it always level how we've we reinvest based mean, to I and to only liquidity you ability for in do allocation, the position it the thing allocate. way to a for our on emergency is how or needs balances what, cash in asset Look, had even have I we that that and certain cash held

if case, way. can And that so that's the look X%, assume X%, you you at it

that's a cash some types there's structured. other cash Of holding these up et I bit et built markets the into and, cetera a above gone has broker why saw CDs, we're things that other course, of said cetera, and what and of so and that has more, money and complement we

amounts a in not within is feel we're So that of some type probably bit. level a say cash just holding people again, we advisors off because that or that percentage usually, there I that huge a gone seeing product holding, would if we one up our they of where usually of term, very a may assets. will that be comfortable even range it's invest adjustment are be there are of dramatic cash not fall at in it's Because the type bond. anyway, this cash short to But

think management or businesses decline seen to But our will be I wrap for over that in rational accounts. the I X% work think back. fixed That income as the come go asset time we've would and past. well bodes well still a over X%

Sandler. take We'll Barnidge John Piper next question from our with

now much. talk coming very year? Appreciate reductions important you know asset the management outlook it. expense regulators. Thank on acquisition I about and for the one-year is for full a Can your you rule with European up BMO

The acquisition. the synergies from BMO

Percentages.

now Synergies, right track. Synergies actually from. on

we on in As obviously, announced that when tracking talked we the --what. we synergies, from us about, gave between synergies we that standpoint, and are

The well. as next year

expense of synergies we what that our that's then will And would transition also complete our say the as XXXX we the it. most relate I For will bulk achieved of activities go. be to

in. And and pulling we're on track, so we're

current of the synergies necessarily reduction wasn't And most from expenses yet what in in saw the you periods.

our expenses. tightening up more that's So of

we're maintain synergies As that expenses, and a asset still be a investment are the we markets. rationalizing what that I well of as But the the offset the go will in. of seeing go in in will those that of doing we look management. as think is, helpful making compression we'll nice job And some team's control European we to good in

follow the the healthiest Thank retirement business. Thank solutions you. XQ question. is you mortality up mortality strongest return that Is And annually. you. or cadence in pre-COVID life only best, Do trends protection then my think to for

you're a if doing So, mortality that table look, it. addressed we

about talking No, -- I'm just

the business. life industry our now in basically there. totally tables basically saying we are in our right The that industry is using been mortality our are are that that mortality consistent normal out Again, we've tables life we with trends

Bass Autonomous Our from last come question Research. Erik with will

May be wealth for Hi, thank management. you.

like and you'll anything put that unusual margins interest from there's forward. to this doesn't going some trying still benefited expect rates see It it to quarter, Just benefits together. all sound

stabilized? XX% the something a that see margin So sustainable move market could you do in that and range even higher near potentially term if

increasing. lift the look of cash. So, listen, as getting free rates look and important is being the the contributor. an a certainly larger interest is bank you But we activities from those element margins we our you that at a are the margin see business do And really, from and at base

yes, see. So the yes, is answer that upon see be we current we margins assumptions do the based the will increasing

outlook. in on you because on things advisor just are to Are affecting change new recruiting the Can talk just a seeing how market of quarter, sort you a quarter about any advisors happen it's you. know last Thank lag. then this thing this your the And I conditions was ability pipeline? recruit good

No, we see a good pipeline.

sort and seeing. of that focus We that levels are the our maintaining you've areas on of been

from whether joined very what as they cetera, et what technology very say mean, our as capabilities the is advisors times or breaking through finally that mean, our we're capabilities, about advisors, business. us way I compliments, nine our we stage beneficial the far our support advisors from do technology, independence think get the join former us compare understand XX of I wires when our I cetera. we et good are think I be And out impressed. we

So long the as we is feel as good we about conversations. very that have what

And that does conclude now disconnect. you presentation. today's for you and Thank participation your may