Ameriprise Financial (AMP) 25 Apr 232023 Q1 Earnings call transcript

Welcome to the Q1 2023 Earnings Call. My name is Boothe (ph) and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] And as a reminder, the conference is being recorded.

the to turn Charity. now will call Alicia over I Alicia, begin. you may

to good first and you, Ameriprise morning. Thank Welcome Financial's call. quarter earnings

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

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

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

which the will the references to measures, call, company's financial into insights you hear we during provide Specifically, non-GAAP believe operations. various

to GAAP website. numbers numbers found their today's materials our be non-GAAP on in of Reconciliation respective can and

call Some future statements that may plans we be overall and reflecting make and about on expectations this management's operating performance. forward-looking, events

our publicly in of report actual These report. XXXX found to materially obligation to factors be revise and list involve date forward-looking release, of and of annual results We different risks our shareholders from A can forward-looking first only XXXX a XX-K could that these to sample forward-looking update statements our no and XXXX as statements. be cause quarter today's risks speak statements or number and make uncertainties. earnings

focus first On our Below of see Slide financial the GAAP at Many will that, top enhances the X, the our of which today for page comments you'll our the see management of results, by adjusted facilitates the makes adjusted our understanding analysis. the operating performance results believes you meaningful quarter. the underlying call trend of business a that reflecting core operating operations more and on results. management on

turn it over And Jim. to I'll with that,

today's joining Good thanks call. morning, for and everyone,

in on an had a release, As strong you in our excellent first saw quarter, building XXXX. year Ameriprise

X% but year choppy the quarter, from and rates strongly year-over-year. markets up equity interest were still know, up you were a As ago, for down

hard investor of financial landing the However, and or questions to regional the in And certain concern. whether large institution see continues caused failure background. play soft banks a we'll around another

affected a quality banks. sale. as bank, With is to it's our high held the and deposit Ameriprise duration base stable, no has recently extremely with our our short regard for is confirm, To exposure available all to portfolio investment

of sweep cash Management are insured. addition, deposits In in and client the SIPC or all Wealth FDIC bank our

I'd important streams remains complemented pressures. we stable. extremely reinforce and well reflect business on results earnings, that also like firm's again. a with navigate the points. our by to we the representing diversified strong businesses. Protection enables Management deal Management This and Ameriprise of quarter, multiple environmental with & strong We business, some across demonstrated the on Asset revenue for diversity and clients is generate in cycles and Ameriprise Retirement As Wealth quickly and uncertainty market risk. and Solutions us opportunities to capitalize offset can our We two-thirds

expense able our and shareholders return discipline and risk importantly, consistently across in and growth business management to to all at levels. foundation, We're excellent. financial invest Last are market cycles attractive

up and equity, in excluding by I'll as that return nicely With in billion, XX%, Advice up were with Management. Wealth XX%. double-digit the which achieved X% background, EPS & grew growth the $X.X adjusted adjusted to And operating earnings first we the quarter. results up is driven AOCI, Earnings pre-tax operating significant. on strong XX% was Revenues discuss

among equity financial the return continues Our be on to best across services.

negative translation, exchange ago trillion. and due a and to impact assets foreign quarter from which $X.X was offset partially our lower strong at markets management a It's the Our from down client under ended by administration flows. year

on our more clients in Wealth and more our another than & and close very to advice in we and high, Management, continue be business highlights. the delivered relationships. to quarter, strong more builds an on XXXX. all-time XX% quarter. robust, providing Client bringing $XX In Advice We're this inflows excellent billion record as we up year to in deepening flows turn Let's focus to

activities and volatility. wrap to transactional were Both due impacted market flows

other and wrap see client to experience in as engagement. solutions expect client markets pickup drive the environment time. a helps We leading and The settle Ameriprise over

Our market heightened advice-based stars. and excellent very volatility supporting resources out this period of at satisfaction Even experience. during client clients with uncertainty, are advisers X.X high our of remains X client

support. Our that X% adviser the tell is Advisor $XXX,XXX. they our productivity Ameriprise best, to value love to nicely, continues grow another retention and tools us continue proposition differentiator. technology, is among to Advisors and increasing

focused new achievement. example, presentation reduces e-meeting just prep down great highly minutes that client generates personalized time matter capability a rolling For called to goal we're and out adviser a on a professional meeting of

experienced In addition firm's advisors, as client value well propositions advisor our and legacy the our strength. financial our to advisor appreciate recruits as

joined advisors quality nice to recruiting the pipeline of size experienced ahead. we're continues bringing the terms The a of quarter. and people in us practice productivity, XX Another in build first we're and in seeing

we institutions can As financial XXX quality with you provide Bank. a Institutions ago. $XX bank to that partnered know, then, In advisors quarter, This excellent financial Comerica we channel of a we new announced and partnership began in Ameriprise building who like years assets year. number billion service. of client a the Since the Group and will the end a by partner, advisor the work firm with few Ameriprise Financial want bring approximately

business. attractive pledge now had in additional just it's It's we few deposits, business to billion in $XX certificate have good And assets our with well gain rate to a to Regarding billion $XX strong this in adding growth growing grown spread our environment. nicely. bank, complement close in as an years. as We're loan it our revenue growth

quarter, we At CD preferred in year. in the follow brokerage savings vehicle later the we'll home the our launched May, as that product and with end as well savings a new of

awareness. advertising earn. in grow excellent advice the we the our of our the we further on As promote build to marketplace, we referable value next the proposition we satisfaction quarter, phase launched our continue to strong In client and consistently brand

also to immensely proud do operate are be I recognized business. we and how team Ameriprise the for And and

Customer of include by one managers as Forrester's trust Trust Index. awards also Some the ranked ranked of in wealth trusted two Business most our U.S. number Investor's Ameriprise is Daily. on recent being

of America's we were XXXX Best addition, Newsweek. named In companies Service by for Customer one

for business, outstanding our fourth the customer an our recognized our for were support Overall, record for for earnings Management and XX% XX.X%, phone Ameriprise Wealth Power's service experience was J.D. year, for up consecutive advisors. a And year-over-year new Ameriprise. for margin again, providing strongly

Turning Protection. to Retirement &

generates We books free high and while and maintained perform continue environment. quality. and in portfolios stability strong value nicely consistently to cash are returns flow. business This solid We this investment good our adding

investments able our and mature, rate better to interest improved reposition we're able to returns. the reinvest With environment, generate we're and portfolio as

results of we on a very liability align client terms know, that priorities, you risk much as with our our In base. focused solid profile, products which are asset and very in needs accumulation

on product we've Our our our concentrate shifted in returns. to environment seller, products Life appropriate generate And and annuity structured this that combined best with and is benefits. in are for business, RAVA disability living our without VUL strong annuities clients

but Sales to generate good sales, similar with are we a the XX% ago. slower Even industry. earnings we year from are down, up continue to

company the Company was year, in In industry. second returning highest as Life our fact, the ranked last

and our Management business. by industry-wide Now Asset We've volatility let's to sales market impacted pressure. turn been

margin. good well returns However, generated and the continues business and to perform

translation. end ago, impact markets largely of was exchange and $XXX quarter, driven Assets year first the the the a billion under by foreign negative down at from lower management of XX%

sequentially. ago. billion, better outflows were said, active excluding net That Regarding U.S. management, as flows, were In insurance volatility. our improved partner bit like total we a market retail, in legacy year are redemptions gross others flows In sales a from $X.X flows. from remain in outflows pressured EMEA,

we quarter. large Expanding excluding as quarter. estate global long-term out our wins In alternatives capability by had Legacy a estate, we partner mandate in priority, We had institutional, business LDI. earned including another and inflows of and the flows, $X.X the good insurance real where and driven are income, real building a fixed billion,

With continue performance, income to have long-term we stronger equities, performance and strategies. across fixed regard allocation investment asset to

While stabilize and strategies, those our awards regions, and credit. to primarily in this important income rated maintain market other we're we funds Lipper Morningstar recognition, in given back X year fixed including we're come globally. accolades. impacted earning strength as X by certain volatility, numbers our and one rates interest XXX, starting recent year see numbers And were Across

integration. the year of In addition we to through EMEA forward continue our part complete work look performance, to plan much latter deriving on We investment to and additional focusing the by to it of synergies.

manage In tightly. Asset Management, also G&A continue we to

overall, So how driving. clients feel the we're firm, and I results very engaging the good we're about

generating from divert chartered our we're a and in growth costs We rocky and had climate. returns strong have to not

up increase strong we going our and $XXX to as have cash to public the just million quarter, free ability to In XXXX. buyback We the return well and as increase XX dividends flow another in we announced returned dividend another shareholders. in since continue X%,

manage an delivered well, while positioned quarter excellent to we're the continue To for and to environment, well expenses Ameriprise growth. close, investing navigate

Now, Walter further our financials detail your and questions his Walter? will after remarks. answer provide we'll on

you. Thank

this EPS higher to the discipline momentum, business As past market expense adjusted increased value Management offset interest This proposition and results Wealth equity XX% to year. model. income demonstrate of continue over dislocation and fixed Ameriprise our Jim strength value as the said, the the of more the business quarter $X.XX. reinforced rates diversified than

ago. is earnings a the record. up and a firm's This grew of Management XX% operating XX% earnings, XX% adjusted represented Wealth new year from

market challenged delivered impacts was as opportunistically Solutions AUM. the flow lower pressures Management industry portfolio investment good substantial to as environment. And the repositioning as Retirement growth levels from Protection the sales a well as given XX% Asset primarily from & with well

relative the Across tightly opportunity to within to manage revenue segment. we expenses the firm, continue each

particularly Management managing make we result, bank growth Wealth by and a other As expenses. firm-wide initiatives, in overall prudently investments continue to the in

was down quarter, X%. the In G&A

strong, remain market in impacts sheet and the balance the saw significant disruption quarter. Our we limited fundamentals from

and portfolio accounted maturity. no are as to is positioned Our well held for assets

of positions as hedging. capital effective $XXX as liquidity return strong allowed our to a well We capital shareholders, have return XX% million earnings. strong to and at of us operating This

Let's X. turn to Slide

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

and client Equity experienced down significant market AUMA benefited fixed from respectively, While flows, year-over-year. we in were markets impacts. strong X% X%,

of management down substantially non-U.S. AUM approximately impacted by to the weakening asset total. resulting pound the and addition, XX% AUM in levels In euro, were of

significant portfolio markets XX% negative The last more generation from than year from with up impacts. garnered remains robust Free rates pre-tax our interest exchange offsetting of and fixed meaningful with growth strong and flows flow equity strong. client earnings cash income mix foreign and effect earnings benefits business

with billion, than wrap between split by accounts offset flows at Wealth X% performance Let's X. growth turn to in flows our billion. Strong individual Wealth organic Total client Management the past net $XX.X year. was on non-advisory up year, business, XX% and declined strong strongest remained more evenly last beginning Slide over Management assets $XXX market client growth client significant segment depreciation to from accounts.

and clients spread up flexible the and offering the prior markets shift, while per client from year from reached higher advisor and Our X% broad revenue, allow money pivot model the preferences Revenue advisors keeping productivity $XXX,XXX as business enhanced and growth. within to quarter, system. in

of like these of to safety The companies. Turning at I'd some X. is deposits and cash bank approach into to additional our managing Slide and that client cash. insights our investment certificate the provide sustainability our

balances stable Our about at total and quarter are in assets. relatively X.X% the cash client total $XX.X of in billion

of some there While specifically and above payments client an levels, a $X,XXX less accounts the of has generally Sweep cash cash assets. $XXX,XXX. with and XX% tax March with April, account average particularly is than been size and per remains in in cash over asset of cash component is has allocation client X% seasonality the within always with

with and set seeking our option mentioned, adding have and we liquidity. launched our savings I a for the savings client have sweep ladder From this yield cash preferred across within options of we clients to As offerings cash broker many a the later and meet and looking to new product environments. a will year. offerings certificate perspective, broad account quarter, CD account we bank In their a be needs

that assets our are under modeling asset no to of constructed accounted approach. for our and have liability we are rigor maturity, portfolios the Lastly, as held

on yield the is first portfolio X.X over a and made overall in X%. duration. bank quarter rated X.X% Our portfolio investments year the is the was yield on with AAA The

It Our was this certificate a quarter over and is of and agencies. liquid on The average, and portfolio with the with of were yield company cash, the yield year highly AA+ duration. portfolio X.X%. XX% X.X portfolio X.X% purchases a rated is on in at in governments

and operating Management of quarter Wealth extremely X, the Slide X% transactional we offsetting balances. in fronts. bank. with with reflecting increased the XX% delivered On in activity year-over-year and for margin lower X% rates organic down Profitability the we points continue basis up strong is the Pre-tax G&A results quarter XX%, up XX expenses on nearly expenses higher declined and XXX basis invest over from operating growth depreciation. interest reached up asset Adjusted growth, the points X%, sequentially. strong impacts the to in market distribution including all benefit as

turn XX. Let's on to Asset Slide Management

well the and and business assets under management to primarily depreciation are managing from negative a through $XXX market. We impact. exchange challenging declined billion, market fixed income foreign equity XX% Total

Management, was industry outflows strength the institutional a like in the in continued our meaningful outflows. quarter, portion offset global retail Asset business of in

Like others, sentiment global and strain market EMEA. geopolitical we from investor in experienced volatility, risk-off pressure continued a

As the with transfer prior U.S. asset to a BMO billion the related reminder, year in flows $X.X acquisition. included associated the

can Management results you financial market Asset see On the reflected Slide environment. XX,

lower currency and fees market depreciation, reflecting as As outflows a than earnings ago. year anticipated, well million, to performance declined foreign as $XXX weakening

we Total in were down by a areas compensation. Expenses aided manage the we to lower well which performance benefited expenses Importantly, fee decline XX% can control. continue XX%, managed. from remain G&A,

improved make to XX%. to to in our range remain revenue the Margins the continue trade-offs current very XX% quarter XX%, in sequentially environment. and We to expenses discretionary returning to market-driven of tightly managing targeted spending committed and

Let's earnings of quality Slide deliver Retirement XX. continued business. Protection high good the turn & reflecting free generation, Solutions flow cash to to the and

targeted aware, As the long the improvement duration effect change went are into first you quarter. accounting in

and under results being Our framework. this historic now current period are reported

based excess upon our and or prior six investment framework. adjusted $XXX past generation, accounting does of the In earnings primarily flow higher are equity change it million, dividend accounting as portfolio GAAP this which year, capacity, quarter, not While statutory impacts a months. cash was the earnings, impact the pretax XX% from repositioning we up from result over operating yields the executed capital

XXXX. year will $XX LDTI full RPS approximately that XXXX reduce (ph) million by versus million earnings the for estimate in We $XX impact

and to with portfolio the impact higher from consideration rates. the we repositioning and $XXX of remain the year, it As million run comfortable LDTI relates into taking the rate benefit

products Sales business. in well market reduce annuities the environment of Protection a declined of the as variable of XX% accumulation VA asset represent insurance of sales risk to guarantees without with living as the in VUL, in These represents and now discontinue products benefits total concentrated industry, over in profile volatile value. higher-margin quarter, which the sales sales force. similar in structured to one-third the to Annuity the of result management action the variable account annuities. further quarter total were over as lower-risk remain our

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

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

periods shareholders business This free return business diversified of even contribution Our significant level benefits consistent and during differentiated stable capital segments. model to from market of all and supports from cash flow depreciation. the

our adequacy. and LDTI we release new a for of as we change, capital how This is incorporated the in of of capital non-GAAP light manage available disclosure unchanged earnings a LDTI. capital In represents accounting result

$XXX quarter, ended the During company $X.X returned excess and to $X.X quarter million and billion of the shareholders we with of capital billion liquidity. holding still

With questions. your that, take we'll

Thank you.

go Please session. of will our from We morning We'll question-and-answer the take [Operator ahead. first UBS. this question Brennan now Hawken Instructions] begin

the Good outlook to I'd AWM. morning. Thanks cash love for for in taking start my on questions. earnings and rate

growth So in you've seen certificates.

But to for level a then high-yield we think see this satisfy you for the deposit brokered to going launched shift or enough bank And costs of yield Thanks. cash further maintained levels? the offset is that that able in bank be the increasing NII will current the do you mentioned are the you that here offering to the You forward? just at steady shift things equivalents. -- the -- CDs. able bank certainly, keep demand can current Is and to

Okay.

that shift looking that have because way evaluating of -- we are What we'll to see have the seeing that accounts -- and is will bank, will the is the at we are more we we now, sweep us into to the performed the that -- So be spread answer yield that. -- yes, yes. in way right the certainly, that basically, it additional timing, also based will we on search the increase on as the it and also that will also we that give relates performed And in that. see opportunity

which spread increasing into yes, as funds we has bank, higher So look from guess both answer the timing the at and absolutely, a profitability the standpoint adjust. as from asserts additional is also we (ph) a the we shifting

answer is the yes, yes. So

then Thank at billion, bank. see the to you've previously through could for the moved Okay. indicated oriented And these you you offerings you as coming expect I to new further the actually April, do into Do well? point, of year. move the you $X that balances balance beyond plan believe transfers, growth organic And which your Thanks. then savings bank that. out allow plan non-transfer for this as you

Okay.

So on first the yes. one,

look additional you we that's our everything thought gives possibility. to -- way [indiscernible] the us evaluating the that and we in is always the have the it is what slowing, we We're -- we But so in, first with sweep as do certainly, in opportunity distinct have and opportunity. quarter, and So performing and the that. we're tax, that move accounts a would have evaluating -- more we at clearly, is but [indiscernible]

I'll Yeah. second question. take And your

opportunity to ourselves a be then CD institutions later launched that a in are that in put clients in it's see money what whether cash it They and in firm But of holding our garner came And or the March, from a these the bit in more in their a holding clients cash brokered banking have products. we just have or sweep in we in of May we're to account now much savings the from we'll So markets. more in high-yield bringing and our We'll product. certificate, a addition money brokered some that savings we launching either year. CDs. externally into

think so in. back of can we cash garner And some that we

of there's So in $XX total, billion cash. about

put think we like that about that, $XX and gone them will the that comfortable We garner of some having that, money our billion. clients that that have CDs actually brokered banking have Ameriprise. things more at to have institutions in out We offering feel much by

there's we a always there build as us X%, been X%. to we X% the also for so an for continue which of level really that around sweep holding is we And opportunity as more our So think general only out that about activities is are bank. to cash transaction lot

we is opportunity very that So there good feel us. for

Thanks taking for my questions. Okay.

you. Thank

will Bass next to Autonomous We at now Research. go Erik

[indiscernible] do at upside your more goal for thinking broader you. just you Thank the level? still advise and margins and margin see you maintain is from to the XX% Hi. at or and question and current wealth here are how potential to them

billion, money, time. expenses look But necessarily said, industry, probably the holding we a for period cash, out as the not transactional sitting think are the that hold and with and listen, things. on highest the long $XX including I the so sidelines one money other is, at there we from in it, some activity at of are that margins of way up the I at banking of have, had Well, for we big activities wires

wrap. mean, we positive flows. of so into of I money what’s go brought will is XX that billion in Some client back

deployed in bringing hasn’t yet. been quarters the We’ve for last many and that some been numbers over us record

business, wrap put they will us as contracts money also fees. into and transactions and earn So back a that

our opportunity my I excellent positive tell would has from what I and exactly quarter on it’s continue it a I positive that margin year. So some can’t business think good but perspective a that so margin building last was you VA an and say, very is,

the of it. it maybe at comments organic over has mean, It management. couple given that running coming accelerated. as driven on building and wealth quarters run been in in. then growth. a acceleration Do inflows that bit Can see and and advisors little Got Make talk the sense. about you your you you a And pipeline rate. about have X% past and what’s that clients sustainable annualized I

and our climate, clients. of because for so, engaged. we lot We’ve – appropriate of we and information capabilities and their We them are advisors get are a think this communications Even lot support. tools of with them in help a

clients of we Our them really market volatility, achieve they with our volatility. stick and what help their to need out help goals balancing overtime

We good a in are and client we advisors. also productive deepening. new bringing And adding flows highly and are engaging lot

So the have good another of in XX very would [indiscernible] added quarter business. we

We pipeline. have a good

see help we more yes, capabilities we that’s adding conduct even our it. e-meeting things very So Continuing, to efficiently. actually going news are our advisors like meetings

climate. we So we how in feel good about situated are this

next Craig We now Siegenthaler go America of you. at Thank to Bank

Good morning, Thanks. everyone.

wins back for on win, wins and forward we frequency of also should your update on financial the these the can you how on additional us So pipeline and or going the [indiscernible]. Comerica institutions about think

Yeah.

So year. we’ve number over added financial a the institutions of last

so we in was bit little on cetera., to more other longer been out a that own comprehensive I'll larger et for orchestrate based financial nature bit the they that deal Now we've banks winning broker their institutions. had but a -- business it there and comment was

that can larger we like institutions Comerica. now bit think so it, we're with a work opening I

solution And a provide service. like capability. like They can to We of bring we the of I think advisors. support lot They their good we like what are situation. the They good ability to gold-based do clients. in we their our a

this we we think move build forward. something So is upon can as we

to a So as tell orchestrated when business pipeline again, good we here have and I forward. exactly you we be we we'll think there can't adding move deals but more get sit

recruiting. on follow-up a had just I And Great.

very and quarter. a the hair was on but side, employee franchise modestly on basis from count down advisor up side total last the down So on a

your existing I because also us provide robust. just in So now advisors perspective could any how new reminding to ability March, wanted but both this of bank March pretty on wondering, trend persistently failures April and and including any then in we retain are first seasonality the impacted to advisors, I'm recruit us downward you if quarter hear

Yeah.

in no, Retention our and strong numbers very strong. stable. So is franchisee is very

X,XXX, As doesn't so with advisors it mean have I there. we anything

So nothing of quite first is have in different what occur the you we've rate are in in advisors assistant than the retirements you retention strong the turnover but and some quarter, have some -- their assets some also that here. there's seen

we're So we that planning, not about concerned as succession cetera. et go through

the As pipeline, feel very far is good. as we

clients how of and have stand-by about would and But of institution when accolades what navigate One what are the and told really very market able that like is what positioned. they do they a us. have firm Ameriprise, integrity you few when that's mentioned I for people is circumstances we their us a provide, these trust how things but well. we looking very value much advisors we're stable as strength clients also I've value the the to that the

Thank you.

Thank next KBW. Krueger you. We'll now go of to Ryan

those give -- assets My Can over you Thanks. partnership. that the was type question into coming the $XX what on platform. of morning. Comerica Good of are your first billion

it's there So There a combination insurance wrap assets, funds, mix other is an assets invested market, the example, handsets as various of things advisors those is hold a like type that. in contracts. of that of

and that what advisors of clients and to do we -- that those and base more we've base expand and it's what add the for their to been is can to client deepening bank. able So do show help

us that they're help $XX with what grow is There will the that transfer for that's and billion them So opportunity looking that. very to feel to good do. an we

the the on (ph). have a the within your Got initiative within standpoint banker or it. to characteristics Thanks. from of do see preference significant new And certificate balances profitability you savings that the introduce a as earnings you bank. Do then similar to products

We the believe, it investment will be within based strategy and on it. the actually, higher elements other

So on the we yield were that. actually pick up

And $XX client CDs? well predominantly that just money outside of was from then cash The does or market mentioned, as Ameriprise that last of one billion as you include CDs quick one. funds Thanks. total

Yeah.

their on brokered from our institutions. clients in platform clients, financial would putting CDs So include have it we advisors the

Okay. you. Great. Thank

Sachs. go Blostein now We'll next Alex of Goldman to

might so maybe Alex. on Hey, guys. if basis. how trended and balances get seasonal that's This figure have I kind that cash It already, to but impact and be All a is taxes. seen looks that XQ in I of update March sounds like on an else what monthly X% for Michael equal, like maybe be a out wondering could impact. it sequential the on in we guys might X% was you might far April on historically,

So any you so balances give quarter? the update cash us can that on far in

we [indiscernible] I is it think totally stand, from the it best sweep, -- at you from is the -- looking totally give that standpoint. is the can slowed that

quarter, And so -- move, now fourth was of and have something as I for XX% it at its the under, and -- XXX,XXX end it. the look the indicated, we like you if of percentage of

it. of it's XX% almost Now

from the it comfortable at that basically, standpoint performing that way we standpoint we and thought very it's it's would. So that stable feel very

the considering and on And bank are more are [indiscernible] that finish the we our that. I growing so And on certainly, on transferring we as basis, certs strongly mentioned analytics into from it. we once before, back

ahead. sorry. Go helpful. That's I'm Great.

No.

seasonal give it's quarter but that. a from you related mentioned, -- I element fourth certainly just to quarter of because it's the or taxes. I outflows -- you the whatever, -- don't first can't to there's X% I go As the when I the exact can't

help through assets from at those bank roll off and Maybe bank Can mix of impact maybe then on, you the yield? the and might what the maturity upcoming fixed the duration variable think roll for the follow-up. between profile maybe the of the And us at like? NIM Thanks. look

Yeah.

-- question, going in we same the is because mix off area that's X.X of And as have we as to the have, and somewhere and certainly, and to lease we strategy that spread billion we the right So that $X.X now, base mentioned, we relates continue our assess certainly currently interesting increase will it is an with point the at it. that rolling we duration. looking it as which supply, year previous

increase certainly very -- comfortable And with yield. redeployment will of So that maturing the we but feel that. the

Thank you.

Thank you. Jeff Schmitt William We Blair. now next go to at

Thank Hi. the think of rate was I all? reinvestment was it strategy shifted MBS quarter is I in but at it, around at first continue and the year. mentioned or What may the last in invest had of mainly you have the that end bank missed you. do you to X.X%

bank, reinvestment in the yes. The

that -- we I sure the question. from So standpoint, I'm understand not are

was mentioned reinvestment rate, yield? X% essentially year, The think new I end money of at the you'd last over the around

I sorry... your just getting not question. I'm

last first year? referencing quarter, of the end not the You are

What Yeah. was in it the first quarter?

reinvestment The Walter. yield,

believe, I the quarter yield I indicated X%. we're first tracking was reinvestment and in the at quarter, X%, in The as

Sorry, at I didn't first. the get question

the when Okay. it's XX% of up, mix And interest of the now. look around rates go as at then certificates, just client you allocations

look a similar any rates could I in do interest just go XXXX, think your cycle, and expectation longer you back sense in or have it when level. higher what's But this with -- that for there? we at on reached where

Yeah.

six So to six, from gives three listen, your gives get as are because basically the you the them the that that increase three into and it stand meet months. opportunity and certainly set. you in It seeing it primarily basically clients objective

us bank, certainly products there. see which offering be we it we yield. will brokered the provide Jim additional in increasing will But certainly still mentioned, the as So

as -- alternatives So will clients. standpoint still you that think that provide the from to see our and I think I what we it's on would grow it based tracking so

all assets, it's of And the to more going to directly going in market. be in deployed not bringing right? grow It's because we're Yeah. client

to So type into going some cash holdings. of that be go there's

some the for some accounts positional and yield emergency -- things in put transactional that cash sweep it be for. expenses that the and earning into of be So will activity will looking kept holding that use they're of others will clients for type

right, of well. lot CDs necessarily CDs, CDs a not as And these long-term brokered are

cash the where that's So will grow.

it from And has some activity, of imagine. regional the been I would bank coming

So I of offer certificate feel want clients garner own grow. our why like into That's can also the to to move the we're going that firm. program that brokered cash CD some to

call which seen basically short the three into going clearly pattern a reserve, we from the we've And And cash basically cash six and term. the is more months. what

[indiscernible]. and competitiveness opportunity the because people taking of advantage rates So that are of the of

you. Okay. Thank

Thank to Kamath go now you. next Jefferies. at Suneet We'll

Yeah. Thanks.

cash. Just a couple more on

$XX $XX of So which have number, think that you had you I billion. mentioned billion

$XX billion think and over expectation realistic So of much your you on time as how in would of what think we that terms what could to a about balance, you I period? guess, platform the is bring

the think something right? is it now, it's would around which Usually, that's way for mark about or think bit a the roughly clients, like X% X% the that. I that our Suneet, higher of Well, I total around assets is

being more there's held So now. cash right

et cetera., coming think go things own from are that we these other into we we're garner and can this as other as looking our in that banking even banking think for coming over and go from some as roll I So of we institutions, of through cycle, cash bank CDs some can some holding institution. alternatives their people well or that

comfortable. I programs, some also the But people think over type or volatility wrap cetera, of will that that into as feel deployed cash et more time, be back as market settles

deployed into as right? other can up had and being not But well pick transactions as pick up. over into money could though that every in We going isn't billion the it So market, wrap it's quarter. $X back is,

some over So back idea deployed it's be garner exactly, hard will, but in bring say then in the time, for and to piece products, can flows we're others to and we into cash goes which market. type the our more client helping of me that is then

So we an us. think opportunity it's for

that this, you it trending I that I'm give quarters? the couple the maybe billion. of trouble cash decline, $X guess, but on where billion know help in it how Understood. into And over Yeah. us I of guess, rest of some some then sort to of help see that we you And was went guess I commented next I went think think the if into of went? around in billion bit went I some seeing of billion cash of you if can give terms because certs, little balance, sweep down, terms quarter-over-quarter but of having us exactly where -- banks, $XX Can it of don't $XX it just the about some $X you a

So the obviously, up in is cash as total. Jim mentioned,

of And went pulled yes, into the a exactly we into certs. you're so certainly, right, that And the bank. portion

been went within some But into -- overall, brokerage. have issue It's of So it's our the point it. is is the we that through. basic cycling

the we base of as in evaluate. $XXX,XXX feel dropped is pattern, again, the basically us XX% average it a is fact that clearly, from range. So I'm for to as X,XXX an I see say important the slowing balances we And is basically we is indicating -- the have below we and that factor and would within account it and sorting X,XXX the and

think, know, into of for okay, tax million into have part the don't or so use had it (ph) also then $X us, few going and had, things. Suneet, client flow I cash we you billion had, you some went And of XX I might but payments but in, and brokered you hard billion bank. $XX -- went then went for coming have search, some that more others into the from a of it's other CDs of XX

in pretty So overall, I think compared what we've seen the well to industry. held we've

positive a in flow had more well. we And client of coming as

-- box think said, fluid but situation can't well. use their I you as clients and number as ideally, money it's necessarily how So a a regarding I

but So stable overall. -- it's pretty

from a for X% about billion is total things. shift $XX other it's bank and in and sweep the the So mainly

that in So I wouldn't look isolation. at

sense. on one maybe last And Makes one Comerica. just

the As we Walter, that year? incremental kind think through associated of opportunity, we, costs we platform that move about should expecting with be as any

P&L a has a it this again, us look think, for as you payback I standpoint. short from

but relationship it's revenue economic good some for on So a is, the for payback we will it. us a certainly, quick cost, obviously, the answer Comerica. very and do But it there'll be have and

the clients onboarding Yeah. for But mean one good work got stuff that think moving and and I overall, the advisers arrangement and we it's stuff. will and you and a expense parties. both

Okay. Thank you.

Thank Steven Chubak you. We now go Wolfe next Research. to at

morning. cash for are metric have. metric helpful I that the on Thanks. I had to Anagnostakis we cash gauge $X,XXX to of potential to as Just a Where trying Steven. you gave wanted relative seen for AUM. metric for quarter, cycle? relative the touch guys to to a on last know trough certainly It's Michael account downside per of percentage the Good the -- you Hey.

would give the and portion I always it's I stability a balance there. but us and been say factor that it, capital can't for the really working

as exact I said, So from you just at it X,XXX. if dropped I you look can't by give it's dropped -- -- the previous quarter,

is we we that did stable a it, lot, went very it. -- and certainly, So in been cycle again through, it coming It's through about as balances. the the from good it and element within was increase standpoint, that feel a harder

can't just back numbers I going So you give the that far.

No worries. it. Got

Okay.

well want I So did on Asset touch is controlled. to expense Management to very

continuing efficiency range. end run low there XX% target assuming the Thanks. the rate XX% that reached stable any markets, you're I there Just downside deliver some is color on or sustainable of You the is efforts guess, be given to would helpful. to that?

it's at downside, this you standpoint. think in look variability at are rates managed you I the as and certainly, [indiscernible]. well mix being and expenses lot at of extremely it a that look look from But

the a to with basically that move certainly, lot look you but factor we variability. is. as back controllable is where as feel that a at And we industry stop we the pattern, again, in it aligned But we at on that it's, better And into certainly getting we're certainly XX% XX% it. look that's of hopefully So comfortable.

much. so Thanks

We to of go you. Gallagher next now Tom Thank Evercore.

balances. on Good cash morning. the customer Walter, just a follow-up

or the questions had be stable. contribution you customer from asked whether one I the of not earnings balances earlier think cash would expect to you

a Let expect or Will be stable just the you be way. in next the do up earnings contribution different higher, to some me What for do -- you of it couple to kind of range? expect it ask quarters?

of we maturity shifting it clearly, me to relates the in it bank I an the as range, let So can't be indicated, but as exact are element you and there. give clear. The drivers

The the we as rate timing and [indiscernible] get the from net take get that's spread So on take transfer that on certainly will up see up. -- the increase the standpoint see certs, where to comfortable. the is interest we do increasing, will maturities again, the that the an at as opportunity there. more those down looking We rate slowing going risk, certainly we being bank really

it elements, but So will I to certainly, please, would stable movements as now up rate there. say, look in get at have the you we

You it's is different elements, what today. of factor but embedded stability that have

yes, everything to if So frozen, should up. you stable feel got

I to looking was Thanks. Got for. That's up. it. Stable what

Is definitely Now rate? are RMBS? yields, Is still in Like money getting it terms it I've of questions that. new the been X% exactly? what buying on you floating

the but -- are and highest We where have we we really that's rate, is it's it floating and a of quality. combination structured basically

are are selective I especially comfortable, -- and like benefit there, and feel are the in in we the through very yields being are we environment, We're especially help and are But manage bank, -- its we finding. certainly this work very there. that's that that. just CTI levels sticking the we of it's So those having the having us and but but we there, AAA, patient, said,

you So is -- structure. in at should it look majorities the strictly

$X.X cash the with billion what the of we'll rate been? would like or XX And rate deposits sweep that, the incremental it, points would bank. call on crediting consistent net that into basis Was the credit

funds, Basically that why certainly, is betas. a go And part you're comfortable we and up with rates exactly down, on. deposit evaluate will spot if feel -- But AWM we that's of that. the of and and is that its as yeah, cost --

spread basis So you're is right XXX the on points assets the shifting in? incremental over now

coming of is source, the source sweep. the the is spread, As yes, because deposits out those of the

that's is be Thanks. the to some And going the upfront to up just that Comerica. but a one heard that I you excess going to payment to that at the to or made share end be will year? -- work? final How there use cash just them one on capital going revenue said what Suneet, of is is

upfront like the this believe again, is get not feel we you and any No, through and I do then paybacks asked it, that work the combination. you basically with comfortable -- very like deal it

of contribution, as So look a we said, P&L then from make it breakeven. certainly will, at I the cash standpoint

So we very good feel it. of

both Jim As for us. economic we'll some upfront expenses, good have it's said, but a of deal

Thanks. Okay.

to Piper Barnidge of next John you. Sandler. Thank go We now

opportunity. And the a for about Management the tends My is in? versus you cycle. flows Can rates very institutional on then have segment. talk you to much on Thank morning. longer the leaving Asset question Good fee sales coming

there Thank into pipeline So any the be visibility you. helpful. would

Yeah.

the they rate. forward. were of outflows, estate, have are that the retail The bit in institutional we rate higher a than you're a higher the retail some thing have of good real margin side. But of got good fee And we we which going on a if always decent fee the flows like rates. institutional, well fee is So course, looks in as bit pipeline very is than

on So a we're there. are where net-net, that's bit negative the probably outflows,

retail -- so turn but the hopefully, will around. And

We the has if look It in that slowed. neutral good. actually fee quarter, than Europe which is positive picks U.S. has the even And almost was rates like that up, more

positive growth But So down. for that bit weaker has side. us But there. the is a the redemptions come the be on U.S. would still

So hopefully, we'll see a turnaround.

we more And through hopefully, so I go the think occurring stabilization we as will and that see up pick that year.

question. follow-up my you. Thank Great. then And

you Management being end be a or synergies You through flowing the announced by about were may talking earnings the of period Thank those be longer. sometimes with Europe, to in synergies, Asset integration talking by additional year? you. of about completed absolutely in additional notice synergies 'XX. Those Are know I end

of it So XX% XX% in around we this about should it but not garner in that year. as realized, garner relates to certainly range,

tracking answer we're going Did on what's it's question? your track. on, feel right, comfortable and we that certainly it's So you're but

additional synergies, I was about the you... talking

I'm Yes. talking about right now. synergies BMO

talking you're If about...

going can getting now. integration Yes, then do them back more the we're so and we more the from technology year, the a and we then We're of of to of lot office. close out we're year middle some that, year into because next as this then continue tracking. And them through

take it And as so does et the U.K. in bit longer different legal and a through point, your cetera. go to -- Europe and we entities,

to what on said. we're target we So originally -- but

Yes.

talked but certainly was about talking we not number of achieve be we're we end will million, year. as the we will about, range, certainly basically, not XX%, this it in by that the think So have the probably realize, $XX will XX% we

very you much. Thank

Credit Suisse. Thank you. to of We Andrew go Kligerman next now

Good morning.

of couple follow-ups a So quick on Comerica.

think finished onboarding, So $XXX relative with plus billion should that you should should of materially how with be to other Will that? the we that you it Will about -- assets? better? in, bring the assets once think we it in How about in billion think margins how the non-wrap $XX $XX billion be we on get line? your

look would range, acceptable but activity. grow us contribution certainly I the and certainly because as them for is our like margin this channel said, P&L strong. direct I there at to P&L ability and it's the certainly within our very say -- we is And said, that with but that and totally this cash balanced good distinguished within we I it's It's the I it's between what of add for contribution and good. will and direct like feel the from looking and side standpoint, at comfortable it but from

the not to will contribution have -- we So that. be it's else margins denigrating anything

then could worth, XX you And you the advisor brought us a the it. net And AUM in they that to per what to advisor in, at? respect AUM now? little on of a sense $X Got advisors give per have relative in spectrum you to maybe million with of Perfect. the $XXX,XXX spot. that they end their come sweet Are color maybe the do

and AUM growing trailing thus, have quality we the we continuing really is on would that. the the and the are Yes. say, I pattern stronger, to of that keep track GDC of GDC,

selective have. that. they feel that So very ensure we approach basically our that about good into and being fit relationship We're to we very

very aligned much it's on And that. so

about very it's feel we the of them. -- quality good So

a better average? so net than per Walter, adviser your So assets little

you, would better I be continues to it our tell than average.

to a going And XX-ish the of the XX% grown sort or there? change range forward? expect even XX% on operating as management. is at capital Historically, were little then bank Anything like better. your just that of it. around lastly, XX%, with coming likely ratio a should looks It Got maybe lot, a in we earnings having guess you in payout percent payout And something maybe percent, less. I

we yes, their XX% opportunistically about have that standpoint, number said, talked there’s that market -- -- a indicated. we into So just we it people be are built standpoint, as look basically But capital, from really at have ability the And range. evaluate we’ve the that -- stage, to will we building but it capacity, from as and at indication an -- most given the everything we in that we our and up. organically, but set. But this we’ve projection and the is to feel will take the that we XX% as reasonable had we we

Yeah.

lot. have. We Thanks a

Ladies you you. this conclude today's questions have at we and no Thank gentlemen, will conference. further time. participating. And this for Thank

now may You disconnect.