Morgan Stanley (MS) 15 Jul 212021 Q2 Earnings call transcript

Good morning. On behalf of Morgan Stanley, I will begin the call with the following disclaimer.

During today's presentation, we will refer to our earnings release and financial supplements, copies of which are available at morganstanley.com. Today's presentation may include forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially. Please refer to our notices regarding forward-looking statements and non-GAAP measures that appear in the earnings release. be reproduced not our may presentation duplicated without or consent. This over now and turn will to the Gorman. I James call Chairman Officer, Chief Executive

everyone, for morning thank us. good Hi, and joining you

XX first-half, businesses. strong net assets relationships billion. year, million customization, $XX had we of new billion and in strong and sustainability. over $XXX and another the excess Wealth We delivered across of secular across added now assets, as in makes our areas, Management, alternatives, key firm revenues growth diverse unique in over those the Wealth Management, We a As and of the increasingly Management, well-positioned, record Investment in in and with inflows private first year-to-date such have both Investment of us months quarter and X

Finally, investment had also leader and the industry, remains tremendous share franchise income Equity banking our performed in performance. gains, Institutional Securities maintained has fixed leading a preeminent a strongly.

enhanced of much businesses did have importantly, Since merger than by of as we're engagement. standard both the driven acquisition, Our integration. funding such business expected. business read and Not each benefits we our long-term synergies respective our metrics Eaton is client E-Trade Vance performed but the on growth acquisitions the further announcement progress and positive, only and seeing better more by exceptional

We X, January. plus. year-to-date, XX%. next we Obviously, X% our to our over targets XX% we're This quarter, ROTCE of and was our are exceeding formerly longer-term goals intend revisit

ever. we for always to I outperformance. While performance focused assure delivering you we're we to we subject want as as mid-year, macroenvironment, on continued will will broader revisit are top the strive targets not Though

distribution. we about further talk weeks the me X on announced let Now decision ago capital

buyback the share. During quarterly crisis, $X.XX to we our per dividend our to X, cut reduced and financial

I durable decade, that our X that our and doing. have we we Over billion. ultimately path buyback to to it increased our from improvement enable from Wealth slow, steady dividend years and what number shareholders a a earnings are $X.XX, has of us grew Management of and $X past that been is contribute said substantially, $X.XX for the as to Investment pay

Federal result, a our up the our billion to our made the capital, XX of and months. what business business, a for per in Stanley X dividend, years. stress share, increased over we healthy the ability said yield, past have doubling As Morgan and maintained reset we built Reserve for this a our increased invest decision buyback. it buyback and the and $X.XX have $XX also confirmed has we in to confidence excess dividend to very next tests of our amount model tests. performance over We many acquisitions, our we These have significant do because

capital, some takes we make big that it momentum, earnings feel distribute fully current start. our time that to year this strongly Given but a to time is the

you know, Now, Second Sharon midway on Yeshaya John us. our also Chief And since was Quarter, as Operating John with Officer. in Xst. responsibilities, Financial until took role is here Chief as as today up CFO her here who through new is June Pruzan, with the additional Officer me

Thank turn quarter we all over the and look me discuss you. to forward your detail, who'll Let in of it to questions. Sharon,

to X activity reflecting high client of Thank Performance Quarter, representing of you, The of continued the and one good record. produced our businesses. be Second quarters revenues on strong, in very billion top morning. $XX.X Firm across the levels

$X.XX. Excluding integration-related our expenses, EPS was

increase also Investing expense total year-to-date $XX.X a The $XX.X new $X.X firm efficiency were enhanced billion expenses were addition XX%, operating our the billion. of the managing the business. prior Year-to-date, were expenses underscoring basis, priority, a remains of costs. in E-Trade leverage integration-related for the ratio were our compensation base. was $XX.X of of our to firm ROTCE a and Eaton reflects non-compensation XX%. integration-related record, Year-to-date and our while of our billion, power which, by Vance, highlighting further acquisitions. versus which expenses billion declined has Our year the revenues and been excluding recent On expenses growth expenses,

on geographical to demonstrates elevated. as Quarter banking lower by volatility remains and trading highest record Higher Fixed were asset revenues second Securities lower globally. Revenues areas million revenue and fixed and classes, over remain And businesses. quarter prior $X high sponsors, the markets year revenues exceptionally record was higher revenues across and highest period the a to core look consecutive as $X.X a driven in $XXX as prior increase record, and Asia year. offset our levels, perspective, $X.X remained the increase constructive. decade. strategic Equity of pipelines technology $XXX prior IPO and June. revenues as robust, From income strong were billion remained Second supported by the clients healthcare, open banking remain underwriting by engaged. of was growth. continued integrated billion. investment ended XX% in revenues. opportunities results. a in increased Investment strongest the results Now, CEO the million, versus from equities from reflecting confidence third and and underwriting activity and Equity second X% investment healthy the robust year. Underwriting activity estate, And Year-to-date particularly where a from look for The issuance were industry remains of prior other also Europe activity while were announced declined last and year and financial sales of traditional the were revenues financial equity across over M&A the volumes for power billion. despite real over $X.X advisory Institutional revenues by companies year the institutions, remained year. the banking clients for strength, Advisory to Investment of footing, prior billion in $X increased billion. sectors XX% through on the income of s, clients bank. completed from reached was after continued strong We driven active strength the were underwriting. were products The regions. strategic opportunities

are from the over Revenues and and second business highest number volatility. the globally. wider were in Asia billion. We robust, in bid $X.X and results Cash decade. were declined the increased were offer prior as backdrop versus exceptional prior were year year, the income in in Fixed of X year, reached clients. highs. declined normalized versus against reflecting interest Results were a products. spreads from derivative new last brokerage this strong, strong, both Prime Asia non but balances increased as revenues average revenues across lower Asia-based the particularly region Revenues

exchange, net significant year of rates year. declined credit The This broad-based lower Other were $XXX revenue spread bid both the loans, as bound, relatively versus credit and mark-to-market markets results across compressed. hedges. volatility. year, results with were were also to regions. reflects quarter's compared on historical related averages, and offer million of revenues versus robust, corporate prior decrease benefited Prior results lower gains of back the from foreign but on range from declined lower Macro in Micro spreads primarily tightening. year, the declined last prior

ISG increased $XX the ISG ISG and Lending primarily loans and losses loans all commitments Total almost were flat. other Second related essentially $XX decline billion ISG to to was for categories. loan $X were in The facility. corporate in growth to net lending entirely billion. $X the at our relative lending Turning one by -- flat quarter. by were loans commitments in Quarter provisions charge-offs prior offset allowance million, lending, for in million was credit approximately

comparison than of as prior Revenues given the Management. Wealth relevant prior rather the E*TRADE. to a The more a period will were Turning $X.X be acquisition quarter record year, billion. benchmark a

and of to from first plan existing see clients, and rate with was retention, billion the cost to of of asset retention robust. to assets a continue of for margin recruiting growth year-to-date we XX.X%. period integration-related annualized consolidation also represents contributing drivers remain new XXX the net Growth billion, beginning TBT which this results. all in $XX Net to Further, a strength half. business new the a of strong NNA assets were Excluding NNA. quarter, bringing $XX Net contributed record stock billion million, X% also client, $X.X in

first While the this NNA growth potential full-year Transactional will lumpy revenues illustrates be tremendous the a half and should basis, of looked were billion. at be this in on business. $X.X year inherent

moderated revenues full-year the were the impact from the exceptional quarter. Excluding XX% Self-directed XXXX. in remained but torrid approximately average levels trades XX% activity high. above Client quarter's engagement Quarter, first Second average the X pace, DCP, of million daily prior for declined from

million and our expand, Our the client base households continues self-directed in channel. X.X reached to

flows bringing full-year years XXXX. Bank XX%, of securities-based of driven Quarter. by the income $X.X in to expectation balances billion. were sequentially double Management have almost exceeding demand to was $X.X the billion the $XX increased increased strong Second matching balances billion, trillion, by was five Fee-based of XXX billion assets grew these lending. Asset Net full-year reached lending only XX X.X billion, a fee-based flows ago. interest the for by $XX for balances XX%. record XX%. grown than level X% revenues or now and Year-to-date billion. more our Year-to-date, are revenues year-to-date Fee-based amount This

offset slightly. by The NII benefit declined downward the movement approximately middle which the in Excluding was of was incremental of prepayment amortization, curve. sequentially, growth $XXX the loan up million

We XXXX. expected that phased-in have for fully realized the we synergies

a forward, half going of reasonable exit the the billion inform to is year. NII back For $X.X rate

more with the well, XXXX continue this NII to grow integration expect we level experience. client loans is build anticipate from E*TRADE line to prioritize levels. in and as We to The we going of

of as excited times participants client X.X early, of workplace show and stands as around win Financial channel traction. X are gaining about encouraged many programs plans million. our are our we by year-over-year. engagement wellness continues the We number pilot to While momentum we potential The also now wins had referrals. equity continued plans, and at

of the and driver Total the beginning business increase were forma announced net diversification billion. Total trillion comparisons acquisition AUM and trillion. of long-term positioning net The growth significant basis. record benefit to approximately Revenues AUM the and The $X.X Since areas this billion. across difficult, from portfolios, this customized Moving to Parametric and flows acquisition strategic resulted absolute $XX were total as we products Management. a AUM quarter, in Eaton in $XXX reached makes flows product $X.X offering flows. multi-asset quarter a of on long-term broadened billion saw our review quarter. the mandate. at mainly Investment Alternatives our I of over increased the $X.X of October, stands prior flows which results. X% a supported reached prior high secular of was periods net as Solutions, demand timing of driven well net strength particular Inflows at $X an for the by Vance of billion. billion over were We in Because close $XX partnership will primarily pro a

We robust. and in to s strong platforms. and fixed were Loan income continue particularly estate real see our private momentum credit client core strategies

Related billion, million and Performance-Based Fees the Income portfolio. across strong strength doubling year the Vance. AUM Eaton prior reflecting the private Management were $X.X $XXX growth quarter, of Asset and alternatives were by driven than in more the addition broad-based from and revenues Other,

the value-added us strong global and to as very all customization, high-conviction positioning investing, partner With on our income, sustainability critical position fixed pace, integration a clients. in equity alternatives,

the Turning sheet. balance to

essentially increased flat. Standardized were billion. to RWAs assets Third $XXX

to prior the our Our of CETX to standardized flat quarter CETX compared requirement, SBB at XX.X%. including was XX.X% the ratio

of Quarter, stock Second repurchased the or XX billion million approximately shares. common $X.X During we

tax and results was strong quarter XX%. Second were Quarter rate the for balanced. Our The

the and to Quarter cognizant open. from summer retain the of clients, continues will With we're management management and typical attract are dialogues while the platform. strength. the active, pipelines a of healthy, the to Third line Investment slowdown, questions. advisors, markets now we're continue are ahead, from are new increased diversification should new open assets. that, Investment of we Looking to position new benefit and Banking Wealth starting

question X [Operator please interest of you. the X you follow-up. we Thank that limit yourself In time, and to Instructions] ask

the line Schorr from comes Evercore. question of first Our with Glenn

open. is now line Your

much. Thanks very Hi.

my interest. peaked You

comments My seen for much so investing that the made ISG. management is priority. You type. drawn growth in remains you've on done a across question We've Wealth Asset

invest gets You're opportunities now? equities you as do across to as right share in good capture it see think Where M&A. ISG and and/or I

Glenn. Hey,

consolidation We're growth I opportunities firstly, certainly and in and going acquisitions. wouldn't, I Wealth, just think more that. done back discount a it listen, that. I'll come brokerage. these I'll to back the in IM prime in huge -- come we've though In minute, wouldn't the I business, market there's on across institutional to even leader

pick us to in share there's We Clearly for opportunity grow. up will over time. M&A,

is, both different in to lot think fertile. as as above think of as do that as we Fixed years And think I I of good it it There the a our $X.X of think should a could those. billion. very to quarter it Income those, space, is, parts both we aspiration spaces to We M&A raised here business weight. the Equities are the a world M&A was with higher billion. ago upside are still In sort in $X.X of so-so there's middle-market real are we the in punch our billion. $X.XX I actually good and

got side. grow, continuing grow see the normalized a will very rates space lot business world-class I business is As We've again, our there, pool credit fee in and share. as doing inevitably of well. And to there commodities fixed SVG a the income

Franchise So, us. frankly billion just was $X.XX coming share sort of we'd quarter, has that gone very and it, interesting, across but gains than it's was not to billion. into is from It it the terrific, the it's at -- running expected this better IC $X which

people of are ISG of And enduring. the the I in about think Some real I the increases, very business. players as economies feel recover the more and big confident see the global that. you'll U.S. just other and

mark-to-market what enormous what's going that. appreciate Wealth as then little repaying Wonder Wealth in And loud of of terms business in the hear on core Morgan and Management. leading going just conversions the on terms follow-up. business, obviously a is Management, do in of a you give I and have if you quick in on Stanley within terms Asset could I and platform? us share this Within works I clear towards opportunity.

think workplace hear the on how Glenn? you of referrals but last throughout is part question, I going, didn't the and I said your integration

Yes.

said. I'd over they is look We've half very advise have clients make well, started core going advice. So we have XX%. of pilot XX% actually account, you get go say should right do as Companion at be as sort we've see But starting clients of through. back the where -- Companion infrastructure, has start with where year, we next accounts. everyone you're do We around now, we're that James that it's infrastructure, with the sure By accounts said Companion And programs and of it that working. assets, see see the we retention you want moving to the when and

we'll with working and we're new from and clients So we're the trying out technologies, there. go

about So But working to retention it's clients well. of very and then really the be conversion all it seems of assets.

I'd just say something.

bit opportunity question, piece to you've it your based because I'll comment wasn't a share an but it So little given works. me on here

growth beautiful you is in area and and then a I business, it's you major and think whole you now wave, see sort services. next look to a coming, every wave and in of me, space, the thing. the catch workplace The financial

transaction, was the at some years, back was. people we'll it expensive time, over XX Solium the think at that look thought which next and I

right XXX I and around been we and have because transaction think we merge was on businesses XXX spent a gave Stanley and fertile done very combined take street and somewhere through we've we're there's value. and wave. the efforts, ground everything there, think to E*TRADE space, pretty funds top that a think these here, and Canadia then at are with and us products. done Calvert rare accounts there things lot second sustainability to the is where are that we millions now own to I trading That we our but being our the market It's accounts. is the it domestically 's the of you wave. I Shareworks. having opportunity. I or knew E*TRADE of to things confidence we into while, platform the digitalization do the one Parametrics, and workplace And and this $, opportunity of think XXX Calvert business, could as believe how do to pushing create have going just about these house can internationally, we're sit That's the improve fundamental incredible and with both have on E*TRADE And for little might customization fold own waves those Indiscernible a them. into forces really Morgan your clients convert so I this

it's So very exciting.

Thank you.

Our from next comes question UBS. with Brennan of line Hawken the

open. now is line Your

by the like just for a congrats different 's Dan Thanks I'd And here. taking start to morning. Welcome Good Sharon. to role, Congrats. my to questions. calls quarterly. the saying in

you. Thank

taking integrations with a like step the of I'd start maybe and sort Sure. to back.

going substantial timeframe two kind the milestones What to and work? more are closed updates? about Quarter going a to to update that so the now doing. be integrating you're we businesses. they should Is we of or it's is to belt. got hear obviously work updates reference workplace, What are the to which They've be where your to around those -- regular able that think Fourth James, you just you're the from and should pretty about You've as should back part just I proceed to we're working kind where here? think going we of you deals with on wanted question, know but key about that call we level But the a try under out. about E-Trade. annual this think broad how strategic get it's of made are those

Sure.

more think, a question. be understand be But Jensen be there'll fair will that step, begin there that deck. in point from workplace. And take of the terms Obviously, I where think, on, for eventually goal of likely the to a who will to next regular I will be better it's then is annual it But through where us some that the think I know, that can comes cadence. are know, migration. participant most there example, also, here investors out,

question Glenn see about those accounts. do beginning. the put the out through, do there asked, proceeds that a in you terms process, at proceeds integration about How you which through which are So that of three-year think cetera. But Companion very and the how thinking you et How $, referral following from channel is is referrals. going the we

understand I well what is So isn't the you to as of what do programs the are reaction and right some sure what and working we're technology that looking and client the is think working. pilot now make think about going

a you give client experience a little it what So that's and to right give we're be because mistake think bit focused is right the the thing as on also would to or like piecemeal ensure early, it that too to a I we'd now.

And we net about there for Thanks when think Okay. the been that. assets, then, pretty really, has growth impressive. new

seen year Stanley, unusual. at been what's the entered it's We acceleration think this investors some into going we been industry though, when past to a has at look slow. happening things period. before have accelerating we were across I already and This think most little But Morgan

something that do rate? run But to mind? be color that. on debates somewhere fair guys right you been, you the single-digits, throw Is basis. has on And perspective, Any reaction have so, that number a feels like a I'd growth rate what more from a I'll you're Do maybe that targeting? on in go-forward been And out something X, the And hear helpful. how is the mid-upper feels wealth X, growth up has about X-X% regularly basis? then one your it number range. long of think really that coming there would my love to in for business the

few and Sharon And up starting a about this. got thoughts

Yeah.

very of E*TRADE. you started, the Brennan, X% and average we pro to a when chart, where we of the then historical you if look think we long beginning forma guys back included showed year, we gave the I the you

net about lot, X-X% to the what though, of these said is talked you think James this X-X% look recruiting, doing on and basis. don't a back all at the we asset consolidation, of new Now is the we both beginning we're have sustainable net spoke audience to as a a we'd when deck. go That where channels. year we Obviously on forward

we I'd can level introductory we not And place set beginning to same so, but underachieve don't think of the we're where you at try the start, that don't the I the obviously X-X% to remarks, about think James say same that the way his going right probably maybe -- way this, -- targets that's number. that's to with

RIAs in Yeah. just Brennan, the And if what we've mean, it's i the teens, this mean, never X taken the grown we organic. part wire The industry time. at of direct the I've -- we're are s, have growth -- because this. and a for -- the RIA question. RIA it's this we, out I channel, the houses, seen long Because I in channels. the year-to-date grown. independent/ years, think X% the they've really can segments, is generate moved have channel, been basically very the advisers, traditional direct has a large doing for The into high

etc. creating platform, direct then they hiring workplace that, I having fantastic. a products out are numbers, of houses the X poor part struggled. you getting it. that if look kind the an mean attrition, is and is what will, it of And you flavors organic is we're actually advisor through to the sort for our organic. and with then not of in banking it, attrition think And training, deep couple clients And the it the very of in X and a, we And a platform. And banks creating of you asset with we're with having tremendous has channel, about We're white are mouse combine at think shift, seeing the : have, but struggled weekly reasons X growth. just has new I lack you growth the be that numbers trap. have of that the combine been gluing which mortgage the arrogant high the a growth being now, And So if

and long And if did channels quarter very we It's we're think during it pouring quarter, a $XX settle. house. number where that we season, assets And wasn't thought I know going it's was pretty so we into legitimate don't a fluke. a XX X billion is good. just the it don't good. we ago the had got to billion ultimate You've tax good. But

over if now I times. it's are That going to at that, -- it but won't was a is XX going we below ago. gone on be XXX trillion. below know. it little stuff billion be around X%. I pretty X, think up have our X, X.X I XX, a X%. years know potent Whether assets mean, a number as Compounding on in X.X force land on, Steve don't it's any individual in wealth good. X, feels quarter We've you years few won't it you over We're where we'll X big a but trillion.

Thank you.

Chubak question of next from comes Research. Our with Wolfe Steven the line

Your is open. line now

Management morning. good NII. a Sharon. Wanted to on Nice And you welcome, Hi, off to Wealth with two-parter just on start have the call.

Wealth still been the noted for bps, have funding when a E*TRADE at versus especially bit Management costs synergies XX in peers. that XXXX. You feels captured deposit The benchmarking elevated

rates those environmental and just factors potential Just growth to And a such costs of the speak strong second lower to if trend. there's if wondering just then part, maybe supporting at X? funding that as the sustainability drive SBL remain

runoff year-end, funding by some the see continue down. that to we mention another see deposits. as And cost deposits just that to planned roll XX we wholesale of expect right did I higher billion of runoff we Sure. of wholesale would

will have an target cost, sense. there, give on exact don't note to I just if you So a BDP that

you I In product to just asked. resonating would highlight addition the SPL That our question is that, clients. that with

money always there. and you James that in it's portfolio. product has And right point XX% wealthy minimal well. a which resonating, is LTV the something this in We've very clients has seen lend is it's their as And it that now structured that's a So said, back. historically losses

that So in lot think offer in a product works and from product also see perspective, you generally season it's to like tax it's this season. that I a especially good something of where that a

is And speaking. in the Second so there Quarter, an number elevated generally

saw the increase of revenues. it of capital Just the like management, through comfortable was running all test for capital us the with my where improved dividend follow-up Looks you amongst the cycle the buyback, to on dividend and But remind highest and I higher contribution the you're than higher outcomes, Gsaves. the dividend from anticipated. on running we on had philosophy now alluded that yield know, James, your just recurring the basis. around ratios stress setting you're much

a in so I of stool. take the might feet mean, up while. put there's Steve, little it a yourself coffee, lot cup a on Get your that

going we're Let's durable with forever, Company think to I go up, a just -- screw start it produce that is basically. revenues we unless and

not at fee-based fee-based numbers daily XXX coming the you look they're and And XX million. If Asset Wealth the and the of the Management, businesses, they're business, real and million, out businesses, they're for and they're everyday.

of the my billion view Fee-based Business, view which doesn't like of that our Asset philosophically, from carrying of buffer businesses the a CETX cetera, carrier we some of yield not what fund provides been Banking it the as Management and and like Businesses as stock, Asset in Businesses think and and the we in $XX unless into we -- is, so the day Business the just X generate if businesses it a way year. and Markets Capital Wealth And Investment Trading of engine, We've of Management et buybacks, to right that predictable, over a was think but do You earnings. growth mean will beginning Certainly it the stock, capital locked consistent it, cetera. the trouble business on our very on a in but And in et the part I'm is to the right, other XX%. that spend the

be to wouldn't exact CECL we've don't I at that XX.X-ish. buffer what than points, have latest It XX said, basis carry just pretend be, XX the points. we We you're should less I But internally, as basis that. know think, the XX.

basis You've billion. Income of X generating this the XXX+ Net got points to of first with. year play in half We're

going not half, that in who less the XX be knows. certainly under not are we we're and billion to billion. for second Assume year, the because just than under XX probably But

of of a X, to you talking of X billion, You're a XX. --- XX gets about dividend buyback that

least at generating You're XX.

of but we shareholders going the the the stream that. predictability the up in XXX deserve get points of hole earnings basis a you've businesses. It's bunch You're felt excess. into to got for X, of eat as to to years take And

investment we've or the them, bank vast got -- business traditional and not to all used emerged. them, went be banks majority investment we're out if traditional So of not of a of as

and We are a wealth with massive business. management a asset combined investment bank

shareholders that should get little over and in quarter, revenue billion very XX it institutional, whatever benefit of was was it a different the over little it this X wealth X of we profile. management. asset So X think of was, points,

exactly the dramatically this That's would sort hoped, us to bunch years, It take we're over balance. buying So it's back unless now. our buffer. stock's a close SICAD of And philosophy to for changes of we the and what the stock us get $XX.

solution way : we deals happy is, reality keep do We only investing and excess run and this not is we We we'll some that is and not buffer. in more can four to gets my we the an invest, acquisitions, earnings and and ultimate of that, currently. that's have can the actively still very the are time, all And want the expensive. at good buyback, conundrum, think dividend, business, obviously, out problem at but do and level buying over that at point, this do look to but

But we play and dividend, years. really stock about for I'm the happy go we'll board's I'm quoted how move a hard the board Let's the that, and that's a had to a got how -- saw about market. particularly for we authorization thinking as we billion, over in up XX whether few the it. if it, the big from we at out reset. And this thinking

you. Thank

comes next from Our Matt question the of with Bank. Deutsche O'Connor line

Your line is now open.

fee that quarter's had good one month combined last you Vanges Investment rates Bernie have the (ph) only on Matt. in Hi, talk This sitting inclusion in the revisions and mix? fee Eaton on products in and Vance than you the as of expectations are lower of you standalone, some My Management morning. know about In XX-Q, the average Vance just performance platform. product is on Vance. the disclosures, Management Stanley platform Asset Morgan Eaton data Investment made I Management noted on the certain actually XQ. for rate questions you the diversify Could today Eaton

example, product, I creating the on that other just Also, an that's lower necessarily and you Obviously, some the products, if overlay about might is think mixed rates. client it what think that's a in for focused you across one think rate product. individual fee takes. not I of ability right. It will service be will of see the obviously if to gives broadly. that But fee more the it's we're platform, have you

are as its of ESG, bring own to come going might with people i.e has what's platform, product. the how which turn i.e, trends, the while have on then rate a rate changes offset kind to continue discussed, of the about that and cyclical there obviously trends secular volume you is to parametric In into customized could that fee And assets disclosed, there overall we portfolios. was which secular right? would particular, A which caliber trends, should down So of -- trends tax the on that growth eventually secular growth legislation times are total concept. parts product basis, think

we are Stanley. Morgan clients And to to income that, AUM. in bring in might see All of portfolio addition growth reasons in fixed those to the offered products ability that their changes think that the an I things entire

fees that times And assets the so on there should volume perspective, our in again, rate broadly be so, come But those to continue from time, will in. portfolio. difference and more a over

of 's with Eaton just just Again, distribution putting on some it's around know a the efforts of then the my on the your Eaton Okay, net of you Full core flows channel, Eaton then versa, combined Vance about follow-up. First just Vance platform. can 's sense trying with thank I your Quarter on integration share anything and Just And any retail products platform? to putting international vice That's helpful. Vance products the get just you. up. showed domestic But color

We been We're -- sales through as noted, we've working has forces. it. But have say that not it I'd the aligned long. you

open expect also the deliver in see and we businesses the client the to various I think experience, workplaces. to a invest but for better customization we new

etc. international, So not to just relates but also it as workplace,

we course we're update year. rest still have should that an working over of the and the through of So the

the are the but Vance. a my teams. answer Eaton that flows, short knowledge, it the in Vance putting the They're on of There'll But yet. just of to zero zero terrific what has going lot you flows Eaton our in and the is of international exactly appeared wholesalers a on upside of products result be ; said forward, through putting product

you. Thank

of comes with question the Autonomous. next Christian Our Bolu from line

Your line open. now is

let things And a just on and morning, you of Good congrats James, you've follow-ups to echo you, prior James on Sharon. the a said big questions. me ask Sharon. to couple sentiments,

I a M&A couple you do deals. of said, more that mentioned think you you maybe before, just questions can

management Is a trying Management, Just grow doubling down Wealth traditional that or assets? look to you're thinking consolidating to client of sense what space is on to there. asset get it potential?in? the as you

done deals since TransMontaigne, morning. we've spun-off dispositions, MSCI, I and guess. of good crisis, had We've think Christian, lot Hidemar, a five acquisition we I disposals, obviously. the

this, we spun prompt point business our PDT, Discover, Before to set we off shot.

better number folks acquisition the a also done else have rid huge deals that wanted on but or fit. of side, to focused are by getting we've of businesses owned just in somebody So

we in Now, European Asesores in Spain a etc. private as I business the remember, UK, sold, quarter banking

done the by in Vance. workplace the the Barney management, Eaton and E-Trade space, Mesa we've was in -- sort followed and the of was So Smith side, deal the in the water first toe big on one deal West Solium obviously investment then

guess, very is XX the cap. side particularly billion fit technology plus on us. to in, internationally, digital and time, rate, big don't of in of but right things run I particularly we're don't saying know, and in we're -- is, the running year, this a So interesting we market at I'm big have to all Company, is generating, we're billion revenues this enough XXX sight point Finding line I transactions

Now, are right. pricing to is transactions we're as always, major you've not got more to they These be feel highly disciplined, happen. but it's are something about bolt-ons that we're unlikely and very it. But shy watchful of,

international. keep thanks. Great, follow-up, you mentioning just And a

about maybe I that the and businesses post Wealth don't And I before. want you if think heard I've said internationally? you financial cautious you E*TRADE you I expand remember correctly, and to said past, eight you Quilter, just divested E*TRADE, Management, expansion, think crisis. international in were Which international always about covered

So, you sort like how vision E*TRADE. can here? more you you the about just think about What's expand would of international, talk how

while International be is million the The market that, is Europe Sure. complicated within even Eurozone. business U.S. people, and people Europe is brief. jurisdictions Wealth because though and XXX XXX I'll about try is million multiple its

China, Korea so Vietnam monolith. Asia -- people Indonesia, Thailand, is Australia, look not Philippines some Malaysia it's not the is is not It's at not is it, not etc.

-- You've Issue tend these got not equities scale in so X, number be financial very They're trading to number market. traditional get to they it's very markets, hard heavy to planning X. issue well-diversified markets.

laundering, conservative might has things a look velocity know We very cross-border the we're to type asset one in thirdly, to are. careful bar And day. all flows. ; and You of just is That's Japan, high, of money institution. the at obviously, money your The night about compared the and that Japan, be U.S. client

long you has view my trade carefully. very a been, time' So that for

Latham basically got New in and you've done where we We've that York. because Miami go it You of scale. out run

region, and with bit Singapore, in where it wealthy in So have Hong deal Kong done from as of you you as we scale. but run Asian it a go think and basically, clients where out single countries. Australia, to we've of a Hong And little lot go you Kong we

platform So the and products digital we internationally, Malaysia more a than people Early team trying about. know, through up excited attractive under be thousands rather brand new interesting but days Indonesia. can taking likely to is don't something that. to build the Hence, good in, strategy I at what I'd look the that be with do for path of E-Trade very is forward electronic that's becomes and a very

Thank you.

next Our of Wells line Fargo Mayo with the question comes Mike Securities. from

now is line open. Your

to achieve the accelerate you expect metrics cloud partnership have and on-premise? announced your you the first Hi. This with with is with how ultimately, public possible, a to do private what that you development. otherwise you on talk Can processing any or about your cloud concrete cloud hope the of call much Microsoft since and to

spending The this Engineers. world, our enchilada but any It's a deal biggest in brand. with of X the a for won't business just internally move contract Yeah. but it's of done and very basically long-term have the is also to necessary providers. details, just I part occasion. all I we've E*TRADE, maybe Microsoft have think whole technology Mike. in into those called but I step with a don't of other Microsoft. our Microsoft all have but is We which cloud. banks, think that I technology deal Microsoft, top put one, the our don't largest head think into It's to Pace which call done got, we've move designed of are them working century, we've on $XX the of the my done and important technology a Distinguished way, part And have different move around by of we're with interestingly, name some organization. called the to think large We I do the this contract of major Cloud what billion it's we come and And what off it Company with call, we of something a they've reimagination of people think platform. programs place that in not the And to a created Agile technology on I organization the tech the just We basically a fantastic we're through of. we this large providers. group this went on doing job we a happened

Okay. And separate then a culture. question on

you to work a pretty or comments right as you stock If made on be them. take all that back comments think employees recently, relates I you I office, out for people years office? in and like had upset, were you it the tough outside less. needing debate a the they office. you'd was solution? move harsh you and in ; some And there's X other ago, some the guess be to be was should And paid and have people made the big to compensation, for X hybrid Should back there and

X So on taking comments right, my were you the you ago long-term. that those you X question -- about years short-term or recently? elaborate the Can was, being stance perhaps well just saying, made whenever hard for

of Well, I We $X.XX. that's X it had X%. We X profitable. it and was about barely had dividend buyback We were not and an to we think was ROE certainly We I the think connected, cut XXXX. years ago,

somebody asked And And their said about the I me people interview, at I in TV time. about how said a bonuses. complaining what feel I would

your Mike, at bat reward below XX%, reminded point, some If you was their home. they you've over when years, our ROE the well ball up us don't as shareholders and go and picked

and stock in a in it we lot be happy what's It's were I, being before to room, a low Sharon stock, gone my cheap, fact others I for and paying and those in a their certainly developed that's us. skills at by, And today. lot transpired, their we where yourself. to career. from dramatically careers by mentored our by comment experiencing I hang I think believe get very The was you who and sitting employees in employees professional they'd very this home the and that workplace, the are about made don't that I'm that and of is can do watching the sitting the tough, Given affected fundamentally and stock very obviously, very, rewarded. number, come self-interest have And John, you of has way

good how I to limit can Zoom think as far take you. as is, far they there's how the a technology

having we've I issues, in that well, back would would So what There have is COVID circumstances, up certainly sort Day. and picked start also that family by bad. flexibility people past Labor are in great wanted from too looking In home work under who where for. health I years, members. through of But we certain said, be to the people the wasn't said was we What coming said, media, learned that makes who have I after there office are that which individuals was, sense. called individuals flexible

issue of couple have after you move a be with issue, if look Now to family manage for to or that. a months your health can we to family a

have We some flexibility extraordinary that. people can manage around commutes. Some

COVID Not So was in what I of when right asked I the premise think said this -- beginning of -- it, was but would February at the basic I "How and XXXX, up?" I of end XXX%, XX% going worked, in that think where be but that's done I our end to I all employee up. it's would said of hours felt probably offices. And not one X%.

you. Thank

Bank comes next Poonawala of Our America. Ebrahim question with from of line the

open. now line Your is

investment Good mentioned you early of to about, and compete question some thinking allow I next better experimental-type to spend think as had bidding it budgeting the the XX% just morning. a market just a plus around in terms gain about that forces, or return earlier and you about return relates more investments us competitive your how as you to know the and wondering can talk share? I -- outlook main talk next dispute -- you're you on I could year. R&D if in years X was

abstract it on to in call. we discussions don't rather to have until get that that You probably would do here, because a investment rather actual don't lot undertaken, initiatives tie if the Why that and discussion this I'd hold than take I than much we we know, -- longer strategy mind. next budgeting year you were just the

you. Thank

from Gerard the with RBC Our line Markets. Capital question of Cassidy comes next

is open. line now Your

the Sharon could you if James. was it. Can you talked elaborate achieving ISG you're guys how you wondering on I think morning, in share Good gains And Group. about share with wallet you and us,

you weaker peers because or share your opening your technology, said of wallet with, this deal competitors of people or to other and it your the are some invested is have amount Some of take thing. gains? in it you've the your to issues which just size, gives same Is have

being closest talked oftentimes Regulation. consolidation share I a the also which that from that above. you perspective regard. is Very to I XXXX, you the there of relationship in you what periods we've over are Hi of those importantly, say said asset all relationship. about your saw Gerard. something to end in up you. think to Management nice think a that And I'd that course hear of is more It's lot But which similar times, we've it's on from gaining call a are in this about Wealth closest crisis,

goes I -- Securities. consolidation the the think Institutional about you the same for if asset think relationship

which in what example, credible on a we've to income, business. that player that be is to equity in not done XXXX really in that the So the be shares fixed marketplace. forgetting gained But for be coming since equity really underwriting,

And and the where retreated I in equities I as with things, that certain All right from, probably the technology think the of to well continues. and it you share investment fixed over gain it's those market helped Europeans said, places leveraging like have technology sense, income beginning in us places. moving makes others in think of?MSAT? that

Thank you.

BNP Our next question comes from the line Jeremy of Sigee with Paribas.

open. Your line is now

you. Thank

affect quick on or coming whether level view in Just in through base I that? asset further really just income to any whether expect sort volumes a grow of Management. sustainable moving there that should are interest here NII wondered are your follow-up Wealth that that the now parts you with line in and

Well, would fundamental that is I moving say part rates. the

into we guidance the priced marketplace. a at you when base So the if presenting or it, base you is about case, where what's things certain are think obviously, case there giving look

for XXXX, which given part ran And And number you as around the that curve was we've that as forward to go had move we've the quarter, that's I $XX which going I XXXX or But a think predicted. really said so now, for of we did we what and billion from come build than for use at that most we that just about, think talked lending the guide. that more the is least expected mentioned you, why as the this actual medium what right year. is

lending for the quarter, So in you that's a billion growth per that $X-X the end can the quarter of of think through year.

you. Thank

Dan Our from the question last Jefferies. with comes Fannon line of

Your line open. is now

Vance. Eaton forces mentioned curious Investment through couple platforms, on sold know potential but that a the for questions products the Thanks. to Good sales morning. Curious, you're be you the at and ESG, integrating on the do seeing seeing? what broadly about Stanley types within Morgan just distribution think just demand today. have now Legacy think which you I about do that product How Investment the look side Stanley. Calvert given the across distribution you Management the global I you have with of And Eaton the Management was capabilities Vance you're integrating We're have for as then multiple of industry across and more lineup you the products Morgan segment, the those most

Sure.

So to in complementary the interest of which continue Management our of so answer, an just lot just just think see Wealth as lot and alternatives fit" management, don't we of particularly, to terms about the the from distribution we wealth two. I ESG, say, franchises advisor-led a time, own. my of distribution all parametric. Vance I the talked not is the above, customization Eaton that private of, the well old Anthem being I always a the we've and workplace products. about talked and you I think a that came seen And think from we've in that's that's sort one not interest Alternatives, credit you product over broadly, And I an think as had think a product. "perfect where had. about more think is would all similar last But I

an with Calvert U.S. was product Vance force. domestic products and So ESG sales a Eaton

And that really products sustainability and distribution also the ESG taking about coming that's Europe are lot and of and those sales We have force. where so can a international a elsewhere. obviously, strong abroad, the products think that interest help we in thinking from

conference Ladies questions this time. at this Thank There your are and you. no participation. Thank gentlemen, today's concludes call. further you for

may You disconnect. now