Morgan Stanley (MS) 14 Oct 222022 Q3 Earnings call transcript

Good morning. Welcome to Morgan Stanley's Third Quarter 2022 Earnings Call. On behalf of Morgan Stanley, I will begin the call with the following information and disclaimers. This call is being recorded.

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

Good we're previous later little of the starting quarters. Thank than for us, joining you everyone. a morning, and know I some

solid assets channel I've clearly client the new Banking the very excluding demonstrates uncertain and Firm environment were environment. business' impacted flexes indices So profitable. a ensure down I the underwriting margin, performed This $XX assets, with of Management Management how elsewhere, with Investment this no Investment concern. continues incidents. as ROTCE gone coupled over XX% But The activity business you stability Wealth has very should attract has and success. with market of it been this pre-tax areas Fixed complicated navigated of markets expenses, and income without equities difficult a appreciate well and Both XX.X% XX%, staying expenses, remains diversification us. market strength business integration year, integration away, even and scale and An businesses volatile highly deferred. and said model. environment. by new obvious and remains advisory enormous simply billion continued of to not in excluding with net in was serious very and

bring On to share policy in X% yield markets operating But be but well a our the continuation acceptable same basis, post-COVID levels. Firm Reserve time, that coupled in doing $X.X of prudent as our the this the credit-sensitive shown a XX.X%. where the more with past this an From and must down ratio very dividend This continues balanced, the repurchases is quarter, in of long-term world. program buyback of to clear, be of CETX a environment of retreat strength Finally, expect for. billion the cautious is to strong such continued is a north of Federal wholesale capital position as with volatility management we called an at from inflation not a perspective, parts tighten to business. behoves I is markets it by

should performance model a us E*TRADE past or Barney, put now business the in more, questions. the to Vance significant and quarter in changes call Fortunately, take plus position months for in together, the acquisitions ahead. detail, the the the absolute discuss of we'll support Eaton solid to strength and I'll of and your decade relative Sharon Smith over turn

Thank quarter. good you, produced morning. revenues the in and billion of The $XX Firm

XX.X%. ROTCE $X.XX, and Our was our EPS was

ROTCE model XX.X%. Excluding Institutional and cycle integration-related attract volatile expenses, the underscoring again net advice-driven and $X.XX, In variety backdrops. our our year-to-date benefits fixed environments, quarter. income Management, a built benefited developments efficiency We and ratio continue EPS withstand and Wealth from our strong of in Firm's to new was we of was The assets, by business the model XX%. to was performance this through an macroeconomic the Securities, evidenced perform

abatement XX%, incremental integration-related tech-driven with in have ensuring and an remains and and And marketing basis. invest COVID-related expenses, spend year-to-date ratio efficiencies. efficiency our was person. of we reengage we progressively priority, to our Excluding normalized the in continue review ongoing important future a restrictions, growth an expenses our as clients development performance teams on colleagues remains business Efficiency objective and with

to and historical year, levels. equities strong slower to banking. issuance underwriting. Ongoing a meaningful was prior declines volatility Banking strong muted year-over-year relative down the counterbalance across $X.X million. and continued with fixed decreased revenues led rather, were quarter Securities revenues robust Institutional for $XXX seasonally businesses. -- actions. billion, market products, were particularly Now for activity income billion, on and revenues from to to strategic a to $X.X weigh seasonally but delay Advisory seasonally Strength investment Investment the to in clients

pressure impacted million. in Investment the windows and Equity strategic by previously Issuers were $X.X declines underwriting well We market the advantage lower volumes. reflective million volatility. Solid equity market. on the conversion year global and related valuation. balances and client industry balances. represented prior $X.X income deleveraging, $XXX cash-based driven meaningfully and including fared selectivity income dependent Mark-to-market a the loans, of revenues strength a announced across Fixed the a year rates client conditions, in better. revenues from more versus were stabilization derivative with and revenues client net as demonstrated broader of benefiting declined groups. Other the Revenues contributed by event to the deferred reflecting as strategic period. line year. client reflected central fiscal prior to increased the supported in equity and the Americas clarity was more in were billion results to and challenging moderated. foreign in Results declined overall well transactions. mix markets. which with investors business third and engagement partially macroeconomic the average and current announcement the were around the drove across across hedges Cash of down extension, took were trading the year. activity multiple higher. volatility active revenues Revenues of Inflationary are Brokerage activity, volatility grade reflected relationship performed were exchange. eventual period. products, and with flow by of Fixed bank highest offset Micro growth versus as quarter M&A favorable favored is portfolios activity remain prior loss billion, underwriting dialogues the record changes of in of issuance losses $XXX complex. macro decade $XXX results as backdrop movements as in revenues revenues declines market to and revenue completion the and prior well decreased on revenues By in last increased engaged year year-over-year with of compensation million. Equity decrease. prior inflation, over geopolitics relative the clients line of against revenues from Prime Macro The

to the management increased and robust rising was strong as Management. net asset to stable billion, the transactional supported Firm. we more Revenues despite The was the uncertainty. The continue a environment than Turning Pre-tax economic continues and $X.X Wealth profit deliver grow year from interest revenues. parts of our rate offsetting PBT prior to the $X.X margin income, the to more lower business results XX.X%. billion

integration-related Excluding resiliency net $XX new the quarter, assets the the bringing in Total $XXX margin were business XX.X%, PBT of this the against net reached values. to asset new expenses, billion backdrop assets year-to-date declining underscoring of billion.

Asset advice workplace market relationships consolidation recruiting of new of clients, sources of existing positive especially all clients, from uncertainty. value net growth strength. and net through assets new The were of trusted periods the net highlights

products the role Transactional period, prior impact best engagement gain who lower Our at revenues platform attract Firm, the plans. our of to clients. value advisors due $XXX in by retail of Management serve to technology Wealth advisors to and business related continues recognize and compensation the of movements the their declined integral the from the deferred revenues our and leveraging to million

this bank hesitancy balances portfolio, quarter a on in Fee-based deposit Asset end beta and of invest the by expanded on with $XXX by some growth that quarters, billion. deposit clients' the growth. to has seen markets. base. Management. the cash. our broadly than changing achieved which to year, Noting from provided have primarily of offset period of deposits balances we in attracted in the mix slowed in outperformed recent lower this $XXX the billion offering volatility, Wealth the quarter. revenues billion, $XX year. our from levels. mix heightened XX% Through forward was of mortgage in in reflected line uncertainty a Net quarter. guidance we of In lending the by investable was nearly Rather, rate have have $XX last lending cycle, model and higher-yielding the grew to rate interest as pace up loan billion And management levels remain this billion, The Total the retail $XX consistent pulled third we more suggesting basis, benefit accelerated expect Despite year-to-date prior was income $X.X saving of market a billion. this products products across NII declined flows moderating into uncertain managed back on the growth paydowns in to $X year-to-date X% our There to our balances billion. grown hike would shift were in of moderating basis. grown robust securities-based Bank quarter, quarter

We with net assets deliver ahead. demonstrate growth and economies continue scale of considerable to new strong opportunities

well Long-term period, outflows Turning to $X.X prior the at impact by approximately Investment billion. values the flows over $X.X lower billion $X substantially AUM declined were the driven Total of from ended as asset Management. last Revenues trillion. as of year.

from While equity fixed pace strategies volatility outflows, continue recent negatively see Interest quarters. has moderated income to the flows. rate impacted

holdings indexing for Liquidity $XX platform also likely into However, $X Solutions of and credit. private money offsets. assets. outflows Inflows continued our risk-free billion. and Clients had by delivered relocated Services capabilities, for direct Parametric portfolio market portfolios as well tax-efficient Overlay and investing as continued demand billion our and customized Alternative alternative broadened our led were demand to of

The investment of in Eaton revenues in fees of funds. primarily integration underlying Performance-based of driven a the billion. million, related were a well. the Asia impact the single $XXX loss net by equity income Vance and business the AUM Investments and management continue Asset private year-over-year other to and of public progress of our markdown average to one $X.X decline. lower were led

deliver investing We to clients. solutions that vehicles to broader and us will of a set in are products allow

direct to ability by to such products, strategic as focus secular our perform the well through growth positions Our globally distribute on cycle. indexing, supported alternatives and areas us

Standardized the ending to management at by volatility. were RWAs offset was due relatively to market Prudent quarter partially sheet. resources the an flat, $XXX billion. of balance Turning increase

available-for-sale repurchase back third of $X.X securities unrealized our billion advantage During also stock, our the $X.X OCI and of related portfolio utilizing losses we quarter, valuation bought billion. our reflected taking of current to flexibility of authorization. the

over While ratio the it this should be quarter. reduced basis points XX back by in CETX our time, earned approximately

strategy, our Our as in standardized basis approximately our XXX backdrop. regulatory Capital X. was XX.X%, of buffers critical to above this particularly requirement, inclusive remains ratio October points evolving CETX rapidly of

XX%. third benefits. tax 'XX We realization certain Our year, now tax driven primarily rate down of will that be tax for quarter, approximately the full of quarter last the expect was year the XX.X% from rate our by

remains outlook economic broader uncertain. the ahead, Looking

market Management, in While the cannot out, solutions our we Institutional particularly our and up will clients to in assets strategy, Management, With our be deliver strategic profile that, on focusing line ability we now all remain we diversified sure in client how Investment confident questions. will dynamics and support our our Wealth managing capital goals. aggregate the prudently while open play to

[Operator go Poonawala We'll of from Ebrahim to first Instructions] America. Bank

appreciate I to you alluded of so a that. -- James, guess fully lot cross-currents. I

from perspective, think is folks degree defensibility of your I superior Stanley why some think the shareholders' on that of own I ROE. ROE, confidence Morgan

market I think seen us ton mean, of to talk Just as we've a -- about you already volatility.

defensible the your quarter-to-quarter we you return where XX%, forward, do you on volatility. how et should tangible what Stanley's happens to And when think be understanding that we synergies is? how defensible the growth As mindful think remind equity, the E*TRADE, Eaton cetera, XX%, is us market? that think that But of Morgan look and do relative Vance, from about about to we confidence

Eaton first Well, S&P with technology that's ours, they’ve digital kick thrilled broad platform, with over the In that mean through of did Eaton business a the both Vance, company, better gift we described I I've question that that what banking with with say, deals we're of is E*TRADE, plan brought the keeps And Vance. would the done the stock having that. we to E*TRADE technology than lot obviously, companies. giving. is good with and that gem and example, as expectations. now the deposits of worked often a we've it's Parametric XX% with a for we combined brought deal, E*TRADE all, Great. I a off. it just

So thrilled with just it. things, on two those

maybe on environment, terms on we the In environment minute. I'll shouldn't that overall how of market. in and the It for a touch in surprising the just play what's be environment going

for by surprised who kind somebody interest every I'm a I had So rates surprised zero seems of decade. see it. on time We TV

We have massive monetary stimulus. and fiscal

had We first years, and Fed in XX Europe to in have land The in the the inflation years. war move. XX highest

they're keep moved going moving. And my mid-Xs, consequences. now late, to they that, remains be was are And going and but go moved be probably rates determined. X%, Now there that opinion will to they they're with around to but

guess year. We journey, this world So a it. will far, the middle in right. be at, numbers and Fed successful be clarity see mean going And inflation I abating. we but certainly is you're see by We're obviously around haven't that that's all it to disruption. -- from more I'm that but to remains we I'm My doesn't gut volatile. of next looking seen clarity The be some evident going the it will the think will seeing

some the and Bitcoin trading. where mean And at type market of what's what's washed with in last trading XXx been in Some at GameStop stuff $XX,XXX -- years, of fundamentals. okay. sort is other the sort more revenues, companies these that's the back of been in of on to on of company that's the trade going gone out. some aberration been the few I ridiculous that's there's We're

But that? Morgan think fees when obviously down. in So depreciation. hurt Investment gets I'm play long-term are down a prices asset don't how Stanley financial does I because we're not in -- Management, are

concerned particularly I'm about So not that.

As the deals. don't I've banking gets underwriting deferred. and stop said, doing pipeline People

to a fact, be deal deals clarity. morning. In get we as much this there more was there'll And announced closer economic

trading and sales remain Our robust. businesses

about in feel those. actually that. very that repeatable. We a And of lot good I is share business holding are

that stable. think of years actually billion very had $XX XX in you Wealth been quarters it's two we've brought in If in money I new with Brokerage, one of Management, And Prime most unthinkable that even we years. would of ago. the mean, have difficult

-- the are the model That's not business continuing the comes our bring money design. So ways the working, not the that's money clients all door an us is accident. funnel in and fact to of it's a

I'm really with the way happy So working that's out.

is around could to relaxed. in about it. under if don't aggregate, we And XX.X%. all We're that our question, answers talking the have pretty your probably am I are CETX day think. but spend I stress. So I mean, XX.X%, I know not But environment difficult, required we

you've in Any in shown your quick lot -- opportunistic do Eaton in of same did. to a here it to one just Vance, No, And both tendency follow-up to lean like that. a among peers, gain the At about this Europe. you how the share time, just E*TRADE, backdrop? leaning in disruption think Morgan Stanley actually

well to don't you've But like model. major sustain when see measures. minute. about mean any we do in We've for business -- you reason plant. built times can We're you very great actually a side. if in this are think the And coming I other sure Well, I'm being investing. And will draconian is out it, prudent. got we I a keep expenses talk across cutbacks the not Sharon making obviously

feel about position, our good honest. So to relative be I pretty

question with Christian Autonomous. Bolu next our from take We'll

your think on hear comments but XX% down, sweep Sharon, shift by deposit deposits, the decline worst the Q-on-Q, mix Maybe, is were margin. quarter which significant on think, I deposits I I

is beta. a guide I'm deposit terminal Is deposit deposit I with is beta sweep how -- obviously your deposit realistic little for surprised that pace Fed thinking said still now my in still you So you and here the question about are decline? guess XX% the line given is, expectations beta expectations. of that hiking

Sure.

let take and a just me little. them them So separate

cash investable -- mix And you're also we the that of is when as -- was those The more seen deposits going as change you would cash bank. you label that than to that that James those saw with have investable said, before. offer And which in the expanded have is aided it we've the cash products cash. we've I savings where the talking we fact, actually what by deposits is other diversified E*TRADE, account -- the is ever transactional it's what had new we and about. is we in transactional sweep is deposits, So saw offering,

Morgan it wasn't from This actually deposits you're the from Management So vast of Wealth is talking the when the has we to about last the because system. standpoint, aggregate its coming compare that the period is actually majority important Stanley that case.

deposits. sweep savings had that had but that in outside. some was we We big CDs, So of coming chunk actually from wholesale a was

Morgan So either are new what Stanley can James at investment opportunities. that has able being said time as are with opportunities you these think over that about to or be sitting these new attract different different deployed assets, transactional us assets

outperforming to the is where relates we've we coming beta which As modeled, deposit still NII are from. is deposit that it beta, that

So you loan three of quarter. is it taken know, growth. deposit different to deposit then together, that's And the NII things: Christian, going still where NII, actual the and propelling mix this as made beta, be to was

on Can seem Okay. the of guys a number Citrix, Maybe bridge risk leverage sort et to you on just deals, speak home of lending be to sheet You your appetite? cetera. balance book. and like Twitter,

of loan first managing is risk risk? are here how you you you book, however opportunities? your then then characterize about appetite And to second, or bridge book leverage So want that thinking increasing it? all, how And to capture are big your

I'd of So prudent been broadly management. risk extremely in say speaking, we've terms

you I RWAs think about just our think position. that's most when notable actually our capital and

at So over and risk-based course we've different down metrics time year. really been bringing them the the over looking of

quite into and just you what hedges, those the marks, modest of volatile the for quarter, over course a relationship we've about that's feels environment. more were entered the different of entire knowing net as like they So event think institution, that And actually period. given this

We'll Schorr Evercore. go to with Glenn next

expanded I'm have a on conversation. follow-up these curious, deposit you offerings. So maybe the

client do higher savings do the is a guide in-house, deposits on keep of the And how is sitting if in deposits you how even curious and costs have behavior? accounts. You I'm brokerage cost account? goal lot How those at monitor you the to. all than a provided the just

can The our knows know, as is position you've over possible. What we as does alternatives. choice, intention, as said, as offerings want can those opportunity is account opportunities the them it in have or be you intention other many And the of deployed talked and Glenn, CDs brings clients to things and long. as point to give you it can an types have about, in-house. they them to give the of such bring the where those or savings a of give then been issue to which is And as But marketplace, do we how yes, assets we the we in that. always has God if course into course, assets last a

As we to give necessarily the deposits, would it course, to of it cash. to versus again, what relates different transactional investable might related be,

the Wealth, growing in -- staying book. your very been you've Maybe at securities-based successful loan

risk I as securities Morgan and have a lot. of fallen But low extremely those think Stanley. securities types by of to all backed

you managing the you And be grow? curious comment whole the it how if on are I'm book? big that, situation? still would how that So Will can a Just get on is margin call mark-to-market great.

Sure.

this the have anything just risk than a terms else. it's down pay we which But an operational actual we've in you seen terms the said always really highlight, in quarter, of risk, So book. more of of so specifically

all calls, and the over they've course well the obviously seen very been quarter. margin have handled We of

on data addition noticed And think with over historical -- it was issues look to this obviously And that, well. line the there. average, as in I longer-dated those with internally. we any of very quarter LTVs, at in when what line And we So the for last course the was in have look we we it the average. at that when you quarter, is haven't quarter, much seen

well I itself. means be it that think of environment a option and client So just the dependent And managed, book will base. for opportunity great remains very on our course,

UBS. next We'll to Brennan with Hawken go

all. around little all That you the drill for a made makes I'd lot changing and you Sharon, betas like deposit in what's mix been to and comments sense. to a the of bit, deposits that in

the million there's clear that be and that guide mix and other. helps that having and deposits had to much suggests the XQ. idea essentially more to oriented to business going that NII think quarter-over-quarter, growth benefits flat sweep Wealth Management $XXX But I to basically watch it you into that between unchanged the NII is the is

that given to -- want have -- hit you -- wholesale, pay dynamics, then more accounts. -- that So to than we the is you you you course, those funding to if more going wealthier have given cash, of their savings for have is, you're clients in which attractive of it so keep have and and there's

just to see hit we XXXX? -- the -- this some foreseeable just should of at and to transition probably stable and into And the point little we so you'll slowing, longer is continue as this where right we we've Or level it loan period. with term? is able How okay, think assume future will therefore, a about growth be bit least just it a to entered head NII just it like some for that, growth resume is

Yes.

truth we deposits guidance and with take mix. terms this And continue aside -- that in-house, deposit over the place obviously, haven't think yet. time. what playing your deployed implies that, I the give be in marketplace do accelerated happening mean will think behavior aside to hike mean, also out, for intention they sure -- see, in guidance it The into quarter-over-quarter obviously is And January. deposit given an but But would assumption the cycle. I is still here the think right? is, is the basically from that you're of generally NII. Obviously, from XXXX really fact to I So that have we guidance we actually the rate make to is these into is what right that's I in have we'll reason, that I the the

about we're that's to actually doing and when what one balance achieve a the and perspective. think mix from that bank you great deposit growth trying So that is

is are lending penetration loan I positivity mortgage of that, our you from different products, think these think rise. to So right? the when things the again, see and those household factors, On environmental you where into continue side, FAs

So focused quickly out is you how is you rates itself, which going to the see on, deposit largely dependent see time. what environment move play over really then behavior you're on be fair, how completely and

Okay. That all totally that is for fair. Thanks color.

would question increased the definitely on focus Second be there. There's LevFin book. some

some referenced and Institutional managing is on those through You some marks which you need going that But to the line, about work that the surprising The has business through other thinking environment. are inventory broadly the how been given wasn't to risks? investor There still is appetite Street weak.

risks so have should how you about are hedged it? forward? how we And How And thinking you manage going continuing be that book? to those

prudent seen underscores you've think and risk far Clearly, the that so that. I management. that And markets underlines disciplined

relates the others I that market the point issuers was would over of third and as and that market. very think the driven wins, it's the mention, quarter just and think I specific the what course window as that you other it are about we to outlook perspective, a saw opportunistic

And September, so saw August, movement. saw and do and see windows, in we we you when it positive in you see do early

I for windows. one so, those that we're and think through think you watching as that. market those for looking And calendar is receptivities And favorable

particularly as talk been as much a particular, that lot in small in By the we And can't about mean, pulled over in About put we looked we turned little And they're a pulled I'd like Asia there's across just in our clients platform, a a pulled of until But this names our couple one certain book. We We individual a talk you'd add leverage a I'm margin and Brokerage aside. to we've of quite Citrix, margin with in little across I there. names there. in whole book, plant and about somebody as arena. here obviously player ago, it. whole quite in we been Prime our Brennan. transaction, deals to. sure bit. conservative, actually finance we're not a mentioned bit out hung that. our the little they're us year cautious year with way, a all ago, we And actually

might things, not for loan a been modest. bunch like losses, which incorporates is -- actually the not we've in including it's fact the line, other So account number this -- space, we're which of in is large very --

aggregate it's it troubling. was pluses cautious, there as the frankly, minuses. sort picture remain credit particularly in is serve just few comments, institution. in not said XXX. a negative like that of think clients. I I areas. not -- that there We'll And We lot opening a a of We're big in and But are my sensitive

pretty But perfect. this so get don't the navigated about I You we've actually feel good way this far.

So to stay it. tuned

We'll to go Dan with Jefferies. next Fannon

biggest in a about funnels to this slow that in terms But advisors, broadly out change various on more maybe the backdrop. of both seeing you're could up or little the did that wanted growth have maybe challenged or the I just organic as the more might maybe well rate there? talk And of what's follow The be growth you growth. existing side that's in slowdown a I the fee-based type being you bit. the -- as whether wealth of in through think, Sharon, bit mentioned channels some slowest, workplace where flows you total either decision-making

Sure.

I is of of the one, assets this think $XX that's it a different parts funnel. really it question because see as to pretty great such remarkable coming is a quarter think in from I billion

referrals through the more actually you that more and actually also, where surprising. what's Yes. the different time see so might the and interesting we see channel more through have Specifically, stories the But most from beginning we're isn't seen this is which itself, relationships. a, is aggregating about But coming more though, one that's is the it's workplace advice-based and and to versus channel the new in at actual anecdotes channel self-directed advice-based the point coming clients? the advice-based existing and referrals assets

how about more very, And so more we've of when various finding have, talked think we've and monetize which lot a specifically within content and better time The referrals, the when various to and this FAs to, been the more is about those to two at data more better is to that you it on workplace and way FA, very employers, number provide and we point who's a The sort well the received. a referrals in more and a, better match workplace. lot content is. of the able you look environment,

And the might we so from integrated FA to with that perspective, workplace we're have workplace actual seeing teams. also then have relationship that pick up. seen And a various into we continue managers the

coming together All through the rate might a taken that channel, but is you if be of where perspective, of from the sort from. think of change an things advisor-based those of clearly coming positivity some of it's NNA

results So I think net very on asset new proud of the the side.

just to up follow then expenses. on And Okay.

You go doing being there that broadly to specific you on? efficiency. that can But next the year that anything you're is as change a focused you're start budgeting into obviously as focused for point thinking differently you on talked quarter of rate about we or even or about from fourth

expanding you that, also make but business need invest, -- of taking coming controls growth focused on in the individual earnings two expenses, to from the of -- a also not we've only this -- say understanding all on there spring with and of continuing balancing all that level, hard project the and been we're side focused the and and them are sure course, been at where to infrastructure very costs the very think I'd I spoke well, mean, year to look where that about it expenses expenses, but on the the always all understanding the last about year, on an we've is manage call, to I Well, in continue as business. are we're just much continuing the

side around you those foundational as So really of might be cetera. it's also where et coming some migration, about expenses through technology, think

we we're So that it's that -- perspective. as it's of just nature holistic cognizant. at But budgeting sure through the something as very certainly making tactical of thinking approach part you're well as it's look in this just

more last the rate I about learned few We in I got how we've of headcount. years, can we're some mean account at we're had growth we've to -- mean, -- operate we also in and into looking COVID obviously, efficiently. take the things through you've

management team And some efficiencies. something again, growth that's provide also we but the to and So want end now opportunities that year. we've the is working across the between identified the of platform,

that So become clearer. will over time,

to next JMP Ryan Securities. Devin go We'll with

in start these noted, want rate a trading. revenues fixed I been rates. healthy we've you Customers seen quite on as income been time levels since guys of environment. have Obviously, to moving around portfolios, the their long volatile

historical settle in. broader be assuming thinking curious So more are just once yield movement fixed about basis get like helpful, or absolute from a to for longer income you it how but any environment what an looks I'm views rates higher context on could be I'm in your guys for trading expectations. would great

Absolutely. It's interesting.

economies. different we I on going this the the of isn't beginning dispersion you environment? think just how in also year, do stood at when absolute the and of said, fixed income of rates we looked what's level but okay, about think the out What it's

a rates So if and all to decade zero you you economy exchange, back sudden, where moved you a foreign have -- you divergent a think place all every obviously and go for of also driving views, had you've example. at for if

think a taken keep that at. likely where higher all definition, volatility by engagement. one higher client I together place one and, looking That's would It's we is that of therefore, continue. So clear should expect that that

been, the years it's forward, say, we is I XX as go right we're something that clearly so market how at. ago. And income that's looking fixed where now would reflect But that's where versus

Yes.

Okay.

follow-up fintech quick M&A year. the and Obviously, also dramatically here, a pretty Just across over of opportunities. are on last financials corporate kind evaluations down just

were potentially to that I'm sellers so the of months change emerge, maybe coming challenging but year. more market the things to in given for, nine just you're macro last a also we're opportunities looking some more big over you and whether And seeing maybe curious valuations the seeing

little I reality. bit going space. a to in of mean some mean you're washout I of fintech the see this a is

you'll dream only companies in just with at here are these washes A could modest little God they're we over not of businesses lot scale-driven of But our see reality. house. seen that And trading You've businesses. consolidation. out, valuations which

We data management support so client have and and to on. technology and control enormous fraud, stop cyber and requirements

in services end reality, financial think for a reflecting across just catchword out of at that the is if At consolidation scale holding and fintech think only right next the I decade, year, projection And the key word. sellers for sell. so I there And my Generally, are the So be consolidation They're a been space. these need sort aggressively to prices, little has maybe of probably they we've that's to if is something more balanced. of moved the matters. that. front

next Securities. Mayo Fargo go Mike with We'll to Wells

the about change you to maybe you're know cost on you with how tech a Just cloud, bones. meat you appreciated how general to of one, growing, the details your many I've that a spending, you've much avoidance give asked how just bit you just June. of more that bank? before much move that's recognize you on First little look achieved held is more what I in how E*TRADE. the apps have? I expo wealth the much workload to Can acquisition spending, question. your the I the

Now that tech your kind comments tech are of you've backbone, these that made. complete, but high-level is your backbone

any that bones comments be give on would more meat to the So public put appreciated. can you

deals But was moving And that. take what I in is, don't out focus publicly a break just Mike? saw of tech. we we'll deal, next you Why sort of big we to sense maybe cloud think some that, the you year. to would more don't that through I obviously, give that do and the say, the did I of

innovation some workplace. virtual and work the probably advisors, saw of technology, taking action, next that's best in think the I we've of All of all the you the channel, place done that. advisor The around financial the

Building is E*TRADE electronic We're reviewed workplace goes fixed company. work. financial that it around of equities, bunch all tech a a revolve intermediary, of a trading vested platform of income. basically platform accounts. doing into Equities, just some they're doing is E*TRADE We stock tech doesn't in Solium a some our straight -- did but company. a straight plans from

And some with of our within our the Group. opportunities to leverage the derivatives trading Equities within platform the trading electronic E*TRADE

data of around a effort. and -- doing a huge lot data stuff management. is So cyber, protection, AI we're

appoint think group welcomed of engineers each group it designers and had We we and new sophisticated year, people, engineers, actually we very distinguished a of have him was. a software class which technology last I just week, our

mean on. going your So enormous tech up. is going spend amount of base to I work question,

I it's we doing it's shouldn't areas, fair think and our compliance be part that's because to this would say of be displacing along fastest-growing doing things manually, the But of we which Firm. with it's good manually. some controls

our basic backbone see is but to billion that lot innovation, spend up. plant. happy just modernizing go of around of it keep is a running perfectly A And I'm infrastructure tech tech is the So driving we're there's which $XX also new revenue. we that that plant in

of hopefully, a So you bit gives that sense. a

All drive area. specifics another Maybe in right.

noted. wealth note definition $XX I and see earnings have changed inflows billion of That's the You acquisitions. to interest asset dividends, the to from in a year include also But in last of over inflows tough market has supplement. the the

and how billion acquisitions? interest asset of wealth were to $XX the inflows much dividends, So to related

quarter, always are and no highlight, included the this asset would acquisitions and interest there was just that I definition. in dividends

so. least happened two I -- a at the last has knowledge, that's not Yes, mean, change decades, my that's in to that

with go to We'll Jeremy BNP next Paribas. Sigee

I implementation E*TRADE Or ask done? that powerful. is because major be about multichannel there steps think that and operational talked the fully workplace integration now? all any and steps just down to very are Is which business model, or bedded wanted You to I still along? humming

will time, we'll done. there talked last the be office a to conversion But integration, in back that about see that that's major XXXX. call in thing the I actually left January, this be most So have we in

course it well integration similar As to look third in expense, the of from over will of specifically perspective, fourth the quarter, will we the something as terms quarter. expect an E*TRADE

of already. That's channels, referral in capability that's all place. in fully happening between capability, is there. happening that terms It's And the the

I'm that we I continue from lot integration specifically perspective, thinking the how were misunderstood to say you still were will there's sorry, more a about the would done. is that I referral be and a question about talking expenses that

refer this just a It that scratching sense gives funnels the with beginning, what best better next or referral need bringing workplace capabilities stock do that the programs, her the that's just at we're mentioned, that they for a these across to the a understand aggregate aggregate as we they example, have house, someone lot right? What you invested that his and data better amongst in you data would that the of data. happens channels, you to together. -- stage relationships what for entire just and FA So all the more those Management business the distribution, a you think cycle? nature. mortgage? as kind consider life we does Remember, buy about those surface Wealth So of -- So referral do plan more someone's more powerful do AI of will in who's better example, Okay, of continue becomes. the we've relationship to the and I and in more

that what investment, point that genome James' the we've is continue discussed around with project to technology this we grow the to technology to So business investment called be core to before. able

three Andy every said repeat something the new money is that money, recent plan trillion Saperstein years. our of of to at generate I'd new $X one that just client conferences

where So it's than that rate more this, $XXX environment billion. -- difficult we it's higher are very been Obviously, in but like is where much challenging, now. we've we've quarters a run had

quarter. did So $XX $XX is this more it's That a call unbelievable a it, about, little in number. an $XX we billion, billion. quarter, billion And

we If XX you think dollar points about XX -- of $X generate over assets. basis per points trillion, basis

technology. the many, model unbelievable workplace financial advisory what different are done machine. contributing interaction with to the many bank way through the because whole is and channels, direct an factors of changed of completely is because with business there clients of it. It And we've because we've that So a revenue their the

this go. and a business. towards on, exciting is we're basis $XX goal that's here where clients' points my in heading it's money billion what that path long-term is very $XX for, heading we're So at said, trillion and we're And the target that's XX going I've to

Cassidy with Capital go We'll Gerard Markets. to RBC next

of give of some year. the you first seeing into raising year as quarter real fourth what described, that for of next a the pipelines we've some little you're guys Investment color market obviously, us no to you as the surprise Can your in confronted on trading is issues James, the back conditions, further capital And areas? obviously, possibly we at it's and going go you Banking come this point. mentioned the

are The solid. The base diversified is a interesting companies. across pipelines continues be activity, different think I of to what's

factors, discovery. the that sector about really it highlighted, therefore also in in cetera. and macroeconomic just particular. one price up uncertainty really in which valuation, around that's But creates it's and But is capital I impacts of James So cost doing ends think et and it's as what not I geopolitics,

And clincher that's of in what kind of remains the the what's -- terms solid so realization a of this pipeline.

that you discovery realistic today, months maybe Do Sharon, versus are price about ago? clients think more your six

are. also to about the various time took and the we issuance I do that you're right? are of and if prices think digesting companies understand you to cost different are in think perspective, think where beginning on, that see that rather -- people a or regime I say, time digest capital, an that people to treasuries that So

prudent means And away or sheets more treasurer And because see capital you also of necessarily CFO. or have seen were cost And an now is their behavior higher. those issuance from not right there. balance that it corporate opportunistic might a you might so

mindset shift the to begins valuation I begins well. as mindset shift, over that time, think yes, to so that And as then

companies mean I'm on want I of you to realistic. I see I mean to road on I CEOs. with sort hands getting on on established to -- forever. get very sit are the CEOs path lot your or just they the I and the mean established And lot, business. can't a think of a of

business. if you got to And have do out environment, zero but the that's way figure to it's wonderful You've better rates, interest a always unsustainable.

little but we're obviously, that. to than adjusting to that higher inflation moved beat we've a normalized to going go a So to and people are back,

the struggling that's revalued entrepreneur, companies just think and the same. baby just paid And are that want their doing new that private to I they're they valued spotty they're levels finding hard they're let's ones an say, it's at, not companies that were it and markets and -- traded rounds was peak. still, as at And accept peak. have that because maybe at what their and believe at expensive. the it money a public from again, to of price some That's got has offering that these do. different more profiting down what we're And just environment companies was the in it's

will quickly. of a groups different I But longer while, is around it. been sort take cycles. around So to pretty this have for adjust. We've through those they we real that adjust been businesses politic all core all mean, get

lucky done harder certain deals things in aren't. things and got a You to move little in little when really cycles get a little a you where are faster then cheap. both of And we've And kinds cycles.

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

now may You disconnect.