State Street (STT) 20 Jul 182018 Q2 Earnings call transcript

Good morning, and welcome to State Street Corporation's Second Quarter of 2018 Earnings Conference Call and Webcast. Today's discussion is being broadcast live on State Street's website at investors.statestreet.com. This conference call is also being recorded for replay. State Street's conference call is copyrighted and all rights are reserved. This call may not be rerecorded or rebroadcast or distribution in whole or in part without the expressed written authorization from State Street Corporation. of website. will broadcast the housed authorized Street State only this be call on The

like introduce I'd Relations Now to at of Global State Investor Head Street. Ilene Fiszel Bieler,

for are are Chairman highlights quarter CEO, Good thank morning Aboaf, Thank COO on available our agreement to CFO, and Charles each this XXXX Investor followed of Presentations website, for and On O'Hanley, these on will you, Jay today download you earnings speak morning's Afterwards, Jay Lisa. first of all announcement Eric call Relations for River our acquire the joining will on Ronald our and Development. Eric Hooley; by and us. Q&A. second investors.statestreet.com. our President join and

like will materials 'XX today's you in measures are would to the of and basis. other GAAP included Before remind include XQ on basis non-GAAP in we presentation financial a non-GAAP these available released addendum presented today. Reconciliations started, that adjusted to get measures I the

addition, important In statements variety discussion contain a results Actual those to due from statements. of vary today. forward-looking materially such referenced may in those as factors our presentation factors today's will

we statements even as only forward-looking today, any of them Our to obligations update if and change. speak views our disclaim

over Jay. let me Now turn it to

Thanks, Ilene, and good morning, everyone.

we've a front office premier results As as software to Development, River provider. well announced quarter seen, our second agreement investment you've Charles as a acquire definitive solutions management

later call. the we'll key Charles pleased through servicing milestone very at and a industry. our details you investment and a the River the take this transformation of the leading represents transaction with Our of acquisition aimed in on technology evolution little digital We're

I then quarter it the the the second will Eric We'll announced walk financials. in the XQ cover highlights some to discuss of detail. and First, through let you turn acquisition more me 'XX over of then

new XXXX continue strength business asset deepen client results quarter across as win we servicing relationships, Our our digital to management transformation. asset reflects businesses year-to-date our and second advance and and

earnings and Second substantial EPS on equity. quarter growth included also increased return

guidance which year achieved solutions of quarters while and benefit year and and drive second levels previously Street. of State ETF clients under strength from Real new million, and our year. X% franchise. approximately assets see nearly approximately are with $XXX trillion, approximately servicing now with innovations continued were business this yet won our XXXX to the of asset quarter we $XXX billion and one to growth core greater large in Beacon, trillion, our for digitize rate. to new our $XXX and saw the continue assets the million management quarter exceeds first second both installed market survey win a provider of the XXXX, with Global appreciation up number second begin with with of We which Equity be of trillion. from We year-to-date low-cost flows multi-year be approximately overall a and we finished lifted FX of to installed We customer benefits from our our expect for Street XXXX best the X% million. new driven across efficiencies in $X.X approximately recognized products to to last savings our $X.X launched quarter FX in creating by $XXX $XX ETF Vanguard strength business Money full to BlackRock realize transition. approximately late commitments $XX as program announced continue under we custody second second Furthermore, in approximately satisfaction markets net of administration the business as in equity XXXX quarter managers traction And billion Advisors State

in factor functionality are monetizing and tools a we and the demonstrated meaningful new and Beacon, decisions by of deliver the manual our client to ability accomplishments on win. differentiation our success Vanguard proving be Building point digitization Additionally, of is as reducing to processes.

continued as calibrated on market are very strong, investing streamlining net in interest to higher business new U.S. further. move with expense we revenues cost achieving growth remain of saw focused continuing while activity. financial Eric the To and fee management, next income, which will wins quarter by and new phase the which to discuss organizational greater as and reflecting conclude, opportunities, to Revenue pleased We we rates, into We interest actively effectiveness market focus and trading performance date. both on I'm higher our driven you prudently was products revenue solutions. appreciation, this

declared a XQ a And XX% XQ declared an dividend per $X.XX $X.XX share we dividend. per increase also common quarter. 'XX of of yesterday from stock representing the We of 'XX share, dividend in

Importantly, continue financial year to achieve with full delivering including operating well positive And we in XXXX, to positioned Eric? that, over to be our objectives leverage. you, fee

Please everyone. my Slide X begin and morning, good where of 'XX I will and XQ results. review year-to-date Jay, to you, turn Thank

We few which initiatives notable believe business well our into investors insight as as have trends. specific we highlighted underlying a items, provide

the results occupancy As and $XX compensation $XX or of and quarters related organizational the million the per million million million has XXXX EBIT the we delayering net you see to of fee new neutral. our can costs This $X.XX the of estate total as that you on share impact management both expenses accounting total consisting size year-over-year of as remind by $XX expense realignment footprint. also recognition of right, real included XQ right reflect 'XX revenue of charge but standard. and $XX I'll increased continue

to Slide increased let to EPS up $X.XX, move XQ 'XX. focus 'XX Now to XQ will results. XX% X on comments year-over-year compared my of where most me

charge, trading 'XX servicing the continued $X.XX results fees in supported XQ environment. rate the improvement the income fees, net 'XX Both across to repositioning as increased reflect to related as Excluding XQ management higher year-to-date interest well and EPS services by continued interest strength $X.XX. and

point securities pretax margin. operating to expenses XQ environment positive an of achieved XQ seasonality on XQ related X.X manage to reached points largely 'XX percentage Fee relative prudently which in to XQ to operating X equity by Return to leverage 'XX X.X the demonstrated leverage points up and was of points. as continue to 'XX. compared XX.X%, XQ revenue 'XX. were We percentage up X.X percentage We negative lower percentage relative increase due 'XX,

assets levels. first of partially market outflows institutional is to increased X lower in Please primarily Now Asset middle XQ the X% AUM $XX.X ETF businesses. XQ was transition, previously AUCA offset XX% and relative from environment. insulation let of 'XX, portion in to significant XQ In from by AUCA me strong which our market 'XX increased turn of in offset announced complete 'XX. a a our yielding client AUM to from about reflecting driven appreciation, 'XX by fee by index activity market solid subdued to of by most business Slide the Slide office sequentially of X% XQ new increased market and Total review especially higher performance. across Growth I and fee inflows quarter 'XX Management driven business, driven appreciation by combination performance outsourcing BlackRock AUCA a bank where EMEA lower X, Vanguard revenue and the turn X% XQ will X% and revenue. increased business. the trillion review our

business, global related the of benefiting client the Servicing XQ platforms, markets, our XX%, sequential equity BlackRock continued volumes, to modest global impart offset markets new in Management outflows. some as the higher depth from basis, line fees due fund close assets. of fees relative On a as increased well markets our servicing well reflecting me fees services a higher revenue higher muted the Let X%, offerings. XQ decreased, activity reflecting you the to as this lower 'XX basis, to details. equity capabilities increased new quarter. markets increased fees driven decreased recognition and activity with previously and the driven lower increased FX equity outflows client as on seasonal lower by partially Management revenue hedge through to equity primarily as as differentiate into standard. fees X%, $XX FX Securities continue by announced Trading industry global sequential million decreased finance well 'XX. which transaction approximately by take of net global due

we a but interest Deposit with smaller to NIM basis the asset at stayed the Moving the XQ earnings shift first 'XX. to XX% continue increased increased our bit to on then line up quarter. end basis pricing, assets. move investment expectation. and GAAP accounts reposition U.S. basis interest was higher a benefited tax-equivalent offset mix NII XX Slide basis from relative a fully NII U.S. partially X, points to a interest-bearing HQLA of betas discipline the by portfolio NII on for liability higher higher and in a and rates due

good continue growth We expect to NII. in

turn to elevated calibrated XQ XQ quarter Relative costs currency to X%, X Slide manage year revenue due seasonally me to 'XX expenses. translation million this the X% these management compensation $XX ago the to XQ were revenues from related which to two as the actually and considering million recognition. and XQ Year-on-year effects, base let cost just we charge. to for new increasing increased the accounting delayering When expenses year-over-year included well review controlled, $XX and Now decreased expenses 'XX quarter. expenses

From X% the continues support ‘XX Beacon the 'XX sequentially. savings actively compared expenses expenses client by charge of Excluding of the Occupancy compensation, XQ $XX partially relative underlying reflecting to of related by our cover costs in performance XQ relative 'XX, will as processing priority these partially to controlled, to costs items related well perspective, market decreased recognition. rightsizing new volumes revenues. new offset were due year-over-year the be Beacon relative managed and well employee new to the to XQ continued due line a a XQ Compensation 'XX the higher standard. to quickly. offset as up item recognition increased accounting increased by X occupancy primarily trends for to as to driven result business. primarily Transaction benefits decreasing revenue incentive a continued Other relative not me expenses lower levels million X% systems and revenue higher let related impact the expense discrete few Information were A reoccur. items that to top increased footprint, investments.

first deferred roughly half to expenses is 'XX of bump. Our half with line seasonally intention compensation second as in XQ keep

Let to Street progress me XX our Slide review on Beacon. State now move to

of sales the approximately Shifting million. $XXX in to we now realize exceeds the can highly million we on that this IT from On business. in structure Beacon infrastructure recorded million we see building by related business, optimizing a organizational the in net a we $XX as to of our we repositioning gaining functionalized and achieved within to corporate efficiency functions to next the $XXX which implement the regional our the right guidance moved SSGA. left the now expect almost to side when November, XXXX, of Beacon, that single the a to product million transitioning of we We've phase announced of begin $XX transforming savings you slide, this initiatives servicing our quarter management as by organizational efficiencies and delayering success slide, come global are Notably, charge core change. thus announced we implement previously side changes

payback expect in this a about to charge We year. repositioning

our me next balance Moving the to slide, sheet. on touch let

some as Our as a related taxable transaction capital the Charles that including non-objection last month, XXXX CCAR increased. Also, strategic The ratios of all was ratio. contemplated River from non-objection and a the capital change healthy our received and aware, based are plan as acquisition conditions. a the ratios potential as Fed capital submission on remain our well you

briefly and X XX% over results. of me resulting reflect points. points. Year-to-date as year-to-date XQ well and percentage positive as over of of pretax Moving in to let X an revenue year-to-date increase ROE the summarize continued of increased in momentum increase points leverage total XX% XX, in Both an growth business Slide X.X margin EPS percentage supporting

XX% We Development. to current fee me from Jay, our outlook, fee growth acquisition financial excludes on Before Charles deliver announced of turning back to let touch including any on X%, objectives, briefly the can contribution to remain of XX%. which leverage operating manage rate to continue expense to base of do a XX% to remains XXXX today's on X% our to revenue track River call of to to XX the XXX you top points, tax And us revenue. actively priority relative XX% of basis so. expect to NII growth It the and

details. to Now, me Jay then let you back of call of Charles be turn back the our transaction to the start the through River, acquisition to discussion take I'll and

X returns. differentiated front Slide providers fragmented ever allow Against and milestone solution with front, of the technological for acquisition our will the today's complexity the and and And needs front, relentlessly expansion. pool please approximately challenges, unparalleled solutions turn everyone focusing backdrop our that the Charles in that important face a middle across River solutions. Eric. these in underserved investors or Today's transaction on the Charles at value while me represents us providing office let delivering are address that and transformation to an to this Development. want the in the regulatory clients Thanks, global aimed presentation and will on focusing change, revenue add announcement opportunity. increasing positions first to and platform industry Street State of coupled And At time, second client significant combination State ask digital product and section of uniquely importantly, to the upgrade they institutional Street $X middle billion better investment still the River costs an investors same technology back-office. these back-office create geographic on expectations manage To We industry. address with believe as of

Charles management wealth meaning include of a and while management insurers, to services. for providers and be platform institutional industry solutions decision with systems. funds that as lowering and well as suite management greater and advanced managers River Charles investment software will platform capabilities our single client's exchange River interoperable, our costs. connect on also efforts, data investment data Importantly, comprehensive pension making, the Building leading managers, asset platforms improved risk provides will other digital a better with efficiency proprietary

is just compelling. the the leading In mentioned transaction I financially position industry, River's benefits strategic addition Charles and believe in we the

significant We expect attractive for and revenue shareholders. drive synergies State cost returns that long-term recognize Street to will financial

XX% of -- exceeding full only transaction approximately in synergies addition, our costs and an cost with synergies, capital. capital of cost with cost of generates than excluding rate our return revenue In the internal XX% greater of

Moving to Slide X.

time spend highlighting some me Let business model. River’s Charles further

importantly, data mentioned, platform XXXX I has of and River’s leading of management is builds than a solutions, As the include on suite investment Charles efforts. digitization advanced River Revenue capabilities notably XXX comprehensive clients, revenue whom acquisition River our services. a stable more provider $XXX a base Charles office which also many is asset management revenue million front State provides a not and was management dependent an software leading levels. under of providing recurring, of Street $XX XX% clients aggregate also market with River's are Charles on over in stream, trillion. of and Charles is

pool with to of On Notably, to base meaningfully will opportunity as reach Charles River’s expand target adjacent the well share potential also us both also as clients. to you the revenue of large the market. enable new the highly bottom wealth add of slide, advisor can in aligned market see region right wallet acquisition the address River's allowing segment We’ll Charles and business the by our markets. is segments. broad client

integrated Street's those an see middle On briefly third to by capabilities. the I’m and us combining mean we River Page analytics and Charles acquisition asked data platform about and X, optimizes can how often the an integrated platform back Let to and enables and create back State front front, you office providers. what party me highlight office. are our that front, back middle by

those bring categories helps to I slide think this life.

River’s construction within capabilities slide the and side office. modeling, trade the River's On execution, see include management the front of front, analysis, left investment back industry core order you Charles key management and the can for and activities as middle portfolio market. monitoring, comprised risk the of office middle complement existing capabilities an post-trade approximately generation and office our client billion that middle to support areas expanded such and front at pre-trade functions office reporting, Charles offerings. office $X compliance aimed

fund begin well front, office as of middle It accounting functions As competencies such leading accounting. fund Street’s core custody and administration include aware, functions you’re data well analysis. middle back and State office back investment office as and with as

client's over extract those With right front additional a the management, back me strategic and ultimately will into powerful combination. can you Eric of further State front investment see acquisition On compelling slide, and rationalize to Charles meaningfully to office further risk let sources data that office Street help the far an the integrated a meaningful to River turn enhance platform, the to and deliver acquisition insights why create compelling the to systems, access liquidity. front expand proposition of that, enables a from office it opportunity. Eric? highlight new is

Thank you, Jay.

me Let deal the and on the just Jay highlighted. review that go points into terms detail some

financed billion. can be and from preferred see the worth XQ thirds $X.X As financed is This balance is 'XX, $XXX stock. X, two sustaining purchase roughly third the which XQ be will common a and on price with by buybacks equity to million you Slide will

the size expenses late We XXXX. preferred more will look by to similarly a offset redemption is preferred in

expect Lastly, by we XQ transition the to 'XX. close

attractive attractive an client paying in synergies and synergies is of is front-office price which use the cost The top-tier IRR over are full our financial times. together premier is the This highly synergies cost confident base. XX%. two in how exactly XX cost about good with deploying the complementary is leading attractive product of revenue focused for just on on IRR with equity, full synergies of capital. because us about exceeds makes just companies cost with we're this we an a With transaction offerings bringing are benchmark XX% think metrics same is The XX.X alone. PE franchise. with times which our We transaction, capital, The

$XX we as in deliver Charles So significant detail first, to servicing annual streams by I will River's on XXXX, revenue recurring basis help growth State revenue adds fee River diversifies of EBIT expect current our to to Street's accelerate revenue. out points and worth moment. Notably, synergies Charles fee million a which XXX XX we by

Second, in is we EPS of will million planned also accretion which ramp cost results overtime, expected up XXXX. years. to X create synergies that efficiencies $XX in within

Charles we Moving of relationships to page. XXX leveraging services. State the our of among institutional combined have where share client to River's wallet and River at XXX natural to at opportunity Charles business several and existing summary top Street clients, serve level we bottom we'll base heads. ready note today Street XXX of or here State X, our will gain served of Slide To set delivering as additional a senior provide the COOs and platforms half the asset Only the with CIOs, by CEOs, managers the XX% detailed in are about

me outline opportunity. several let So of areas

First, which help relationships, leveraging we our can top penetration XXX their Charles to by could client their our River grow significantly increase tier top base of clients.

to the a us custody and than bank unique the provide top-tier relationships shared clients, platforms. Second, rollout which do expand other opportunity this. existing we have to true ability can XX further front, with a with middle No back-office more

with asset Third, State top to outside represent we to the the management XXX this institutions. operate global Street mid-sized combination, opportunity the in XX% that additional have of platform institutions

scale private high-growth in the opportunity in space. banking wealth exciting management is another Charles Lastly, presence River's established to

Here we can attractive also leverage Street's segment. to accounting into State costing Charles this River's Wealth Management services expand solution and

synergies expected Turning to million to of revenue a targeting annual these to synergies enhanced deliver synergies execute EBIT annual will me on more we cost we are $XX on of million result and as Slide details of the a $XX $XX to platform. the million provide bit how and X, million. let in By XXXX, cost $XX revenue opportunities

components On slide, targeted see revenue synergies. the the the you the left side can of of

a River to are $XX Charles Cloud synergies of five these categories the from the XX software XX by XX opportunities $XX to State execution revenue about clients. outlined and of across upgrading has Charles driven million have each Street introducing to We to million River State Street specific clients client-sold which plan. key expected

of $XX clients. services $XX office growth powerful trading particularly FX expanding client achieved million to Fund existing Street’s allowing $XX by We clients. $XX exchange million significant Connect, is River’s top-tier Street to premier expect part of by front million This Approximately into core, our supports wealth data driven with River’s our and here global workflows volumes offerings. office capabilities the investment State expanding described. synergies $XX for joint segment, of Charles penetrating are front synergies Connect $XX and transaction $XX revenue platforms increased trading to our office which the and integrating to will million of our and million to base current accelerate million I driving revenues. Charles analytic platform, State us the back fee midsized by of management be million another middle just Gaining our business. data offerings into Currenex, And

revenue these of cost conservatively product margins. we each loaded fully For opportunities, delivery assume on base

to the million $XX slide, cost Moving there drivers main the contributing are to $XX million of three the right target synergies. to of

efficiencies drive to middle unit by lowering office million. $XX operational streamlining expect existing we costs by custody, and operations First, accounting

solutions $XX enables million River’s the of legacy $XX Second, And that see. office is clients of $XX expect the sort retire Charles will million to savings. million this within related River Charles systems to in to This expense implementation many opportunity benefit achieve detailed in State million Street's savings appendix. additional front we a we've SSGA. lastly, an $XX And to

be savings cost of All can from State Street’s base. realized existing the

to X. Slide Turning

Charles and points attractive middle, in support represents up financial the which technology front, River value strategic provides first wrap significant office returns. back creates generates solutions ever me Street's to highlighting transformation, a businesses that shareholders. State and the a Let our this transaction the by financial and milestone Overall,

revenue an fragmented billion today. $X which into pool, We expanding underserved is and are

business. We growth we Street's services of as a management nature asset and with fee expect asset to accelerate State out revenue third round

bit a of of synergies cost IRR We capital and envelope, X our accretion And the within value various years the synergies. times expect cost and intrinsic accretion are consulate acquisition while the financial supported traditional above outside specific alone. EPS with by is revenue cost

your it and be happy to turn to questions. Jay back over take now me Let we’ll

Thanks, Eric. we And Lisa, questions. are for open now

[Operator Instructions].

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

word, vertical big With now the independent or deals. timing is I’m I on other players, is why being Will So right Eze but Charles integration know and continue for vertical Castle the curious Bloomberg or curious of will on being relationship Charles then don’t question River the will front-to-middle-to-back. this pricing woven River integration how work? pricing? explicitly charge I’m overall on And State Street to into

is Yes, Glenn, Jay. this

clear might me and comment Let start ask trend I front, Ron more the it’s well. to new trend, in integration. a world a that. not as to is middle, There create back of

You office. the and mentioned to We front, with similar we more on were do data, Investment to Eze to back solution things are under middle gain Bloomberg work for BlackRock managers and and efficient access BlackRock. integrating a where more considerable single pressure to get touch. greater

middle, this front into future. up way now, think middle clearly office with till I the front you fragmented into it's not So players some the all with custodians it's front, the wave but the office, is middle back been all office, the integration going the players. back-office working of got And and

so. together industry. So will even it direction come I probably clearly this more think of overtime travel it's in the And very

of custodian provider integrating continue is we've I think that series we we Charles which the clients that it's three got and we to a a But series work combined components partnership back in River have with also and better we the lab BlackRock the we're have Aladdin, will true of front with can largest also and word of significant the mentioned interoperability, with Bloomberg and now we service. together link office. a and clients middle, where

Global to and that led us River years of different firms things doing. to create in of led that for on streamline time places first the where Charles landed that some mention control back-office a the only Advisors of point give of going rationalize most River. what front-office was of one which last are to middle us access one River will us the I and our who to but One their will in efficiencies, was and the products. be happen the integrate Charles looking which ago would interface, of the not a some free couple And front-office, something it's products front, is to data, for form forms. liquidity State and where create And So to that's is Street trading Charles SSGA we'll we'll

that anything Ron? you would add to Now,

large Sure, pull Ron. digital timing, of Jay's of be from to terms that, that Glenn. would asset straightforward we where processing desire Large owners this. managers that clients, on operating it's well you timely to and in our more data technology use from in question a very is combination comments are desire need way, data both your managers This stacks. a point get timing. to act very a a like operations the complicated which What aware make simplify, and is are in to there leads a in journey. own with desire And strong strong pull asset and strong to and clients add better second to of and are On asset I of

reinjected back there's for now and of one to to But the highly into is usable back investment Beacon client lot the in process road cetera. data to form analytics it's whether Beacon this that a on while for been things and driving. a take we've driving a et with that of know clients you is it the our ability As things present

but this is River, platform reconciliations. not their investment and to with with do are number So of them the same not want with interoperate means thing, deal work choice to of that of with will have one work the want it's they kind providers thing said all as some data-enabled as importantly to platform enables but because we'll Charles other the managers what that going Jay providers that

me the Glenn, up And let pricing. second pick just question which about was

sure that standpoint to Charles for is back capabilities. of separate River and of and from continue us. our in entity a convenience from some of River their the State street uptake. fact, We in And set our will state their will will the a which pricing make River, the into There's as a And pricing world right that existing standalone local. at Charles capabilities company. office GX from be distinctive Charles to combine Street keep middle largely have we a it capabilities, They're will

One capital in last one, the calculation? What Eric. IRR used of cost

think we be at to kinds the so always other do on which for appropriate is of the the XX% low that’s the tagged the then when I model range. which growth typical we X%, it and need rate, do part business thought, professional conservatively. we important think Just overall IRR is But we end we of deals, of our conservative, to these of

Your comes from Jefferies. next Usdin of the line with Ken question

wondering just on you us just you’re for around the basis moving was saving of pro in decision if side issue year. could going off that forma at buyback not Question buyback a of through. for Eric. the walk wondering capital? capital as just terms Why than you here, What just rather capital things the XXX ratios extra to in forward And the I to closing? happens this Thanks.

ratios The in embedded Sure. are capital our submission. CCAR actually

as So process we controls little second of came has in better in series you through. can a flow and expected deal that’ll months a pro CCAR a actually you imagine quarters been take quarter predated submission. this and When the the that Obviously, than in forma. I for we, think our can

strong submission the as gearing up of were we early a So no was for April, but by CCAR, means possibility assure. April this the

in neutral effectively do should one auto we felt the we of And on basis. a filings form that is the what submitted as to call strategic Ken for capital those so And specific changes it Fed that. do ratio is

be basis -- of a ratio stack. neutral, equity of on some top-up the plus of because billion. down basis you plus piece a with ratio X points Tier the about be neutral preferred it'll by XX is on the why roughly $X.X On basis ratio to buyback it'll a set literally get common spend the amount that’s preferred so see to leverage basis And one issues

And CCAR, year not next what’s versus between just back -- then issuing do the into just you, buying of a choice economics just decision? how that

It’s bit not dramatically go of the you different. and a There’s when question, to out underwriter discount little fees market.

stream. earnings stream the to our also go like we’re to And on this that bring we honest, hand, other we by get the year. and together it confident the acquisition we’re wanted On to of and with signaling -- in our to forward it’s be felt important earnings end

while buyback to to past the on go And capital quarters, we to forward shareholders continue two temporarily and basis. fully so quarter committed a this we're more return suspend then

more middle stand and And front capital one just I’ll I’ll Okay. on the aside.

that? to to go the now? look back What in do if CCAR have think that you the backend was year as you What us and more. forth you it was like on about about results? forward? number, is and Thanks. anything you back Can just coming counterparty What Just mean do to guys tell do this go candid you have through which the

processes, which condition, clearly is counterparty think the processes risk our us Fed on its in think business is -- which capital observation the to comfortable they processes, make our summary the processes, planning first our with I felt made Yeah, non-objection. I management our enough give

this the there. think in clarity of I is mission this acquisition. And the was kind was strategic in So embedded fact also an

asked with new. over those or by exact Fed. have sharing counterparty were to positive. with so quite and adding us And January, their to and We've them so not it's on you but that's obviously We've obviously, that we'll think, on been paths. more refine they next pool then think line more which have in expectations. some doing our that the the monitoring in work since have that kind is started signal actions measurement of And seen two do They I loss felt, the we're I of our understanding execute deliverables arsenal we've the their mechanisms they with to ask we our scenarios month of

Your of Goldman Blostein next the question comes with Alex line from Sachs.

them length? the sentimented thinking And guys. bit first sort have XXXX? River, then one anything looks couple so there of kind revenue lead of attrition of last pretty of might like CAGR. contracts their to on could the change years. XX% clients is a guys deal good talk kind on Can the the in robust growth be that of growth of to you of just accretion kind a secondly, on nature you back through on the like basis related the couple of of this. A you questions. average more the income your Charles operating I have And with for guess It about contracts maybe of related math just Hey to little do what's control standalone for negotiate, over morning contemplate they what any

it's Eric. Alex, Yes,

one. on Let me start this

billion a subsystems have showed in in but observed the straight was manager growth, as franchise dynamics. institutional risk everything they a or our constructions, growth and providers we obviously you've interest space, right, They sweet in of portfolio compliance, And we call quarter XX it $XXX largely revenue top-line because and the them deck, routing the have measurement. kind XX a in nice and as operate an So of nice may are asset which systems and that's to part had optimization a established typical, from franchise. fragmented they leading

in been minds this strong leading by player. that watching that's space is a chose and growth scanning to And as space. our we open we've a Charles it's why So River

and synergies, that three well, say, deliver try about revenue. then the top-line then the be serve. feel you we do to If we the that of to revenue first from and think about EBIT years conservative of Revenue And comes we how growth over million million cost obviously about take with synergies? $XXX $XX

really buckets and the Bluefin take go And and you Street X on first are your Page kind through the together fourth last middle the $XXX the of -- really on of about buckets and to second, bucket State are the we've bucket provided questions answer would the revenues. on that synergies, them, synergies way the guess, million. revenue revenue maybe of I I third so about If

X% is about rate, way on got a if we’re so revenue what you year. growth a it’s about the Charles doing at taking effectively think River, that history, least And based of it

that on Charles XX% We’re or on the to kind effectively doubling River based assumptions. about of on Bluefin

side is is, A if few it. side you unwind. client expect, change I’d wanted Jay. these you there as That’s it thing, clauses any to contracts. non-legal this of might the to very Alex, the that the in termination if is, of couple I’d the things of were say legal add and are disruptive things

River more most anyway but expand think not of with we significant there’s not secure clients and than of what with as a only introduction to time only Charles knowledge to of Street these of to the provider we of upon So resources have it. State ample

think XXXX clean question. how do the another from you quickly synergies, a in in? up run costs timing deck, to comes expect How I it rate you And numbers gave guys When then to come perspective. came guys just for and revenues

other I is of We overtime. you up, synergies it’s details into going Alex, the the didn't it’s tell linear play ramp to it’s Eric. because hand year obviously completely it’s out on things the expenses. What that and go not in to going, a the expect not year a a Obviously takes second hockey of it significant chunk real time stick get first either. little we

a will lead other describe a to tends is then I go the that subsequent on linear build way what relative So might line. to bit they early year's little trend years. Revenues bills

enough that’s to modeling. with hopefully the So just help

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

here have you you’d common do question close timing cost and a any the common. but issue is of what question Deal would be? XQ, when the Quick you and as on expect Ken’s this for in on preferred -- expect preferred follow-up to expected

Eric. it’s Brennan,

I if would day, I a think think a this week, I in a resist them here, period open the larger we’re ask now name month. to because

the So markets on It's find QX. an good I opportunity. market we’re think obviously, we’ll watching to in a be

there similarly some the banks historic; and some that some of some probably callable of preferred On you of market or the preferred, now. some out current yields new is yields. of issued take are our We do of and look I ours required are that some the currently think favorable you the can got think the relative sized by we've could that perhaps, at other to

over more to year be callable and the We next we’d obviously expensive there. ones inclined the have call some that become

And one here more The that. synergies is then about thinking for usually revenue with that one the don't rise investors deal. Thanks greet financial on on arms. Okay. open

greater give some will could dynamics allow maybe allow intend in from us trust the expect you side? client office? shift bank back? And how pricing you're Do side ownership to Thanks. for office on more the if it relationship you the to trust the Is any on maybe we that from now the that little here intend is visibility typically be to insulate that idea you on is to back for owned have to the a you the going where the how do -- the see in world? on River Charles to front end-to-end coming that? bank you So you front insulation How bit color do -- of

to is entity I would start leading which the with Let me the River acquiring as earlier more one of product is fact Jay. independent start exist the we're will is Street. as in to while And I an this entity continue I Charles front-office point an with connection River. State capability going mentioned, that Brian, into Street with River. Charles push State this as made Charles

is thing first clear the So separation.

a front, the that are platform investment think think the weight. one different more I the front-office relationships a we'll Charles is management jointly through things this we think where front-office. River number provide And the overtime carry generally, the And involved. better not to little the upside I to if State I sought world. back those think of well, of where firms, bit relationships understand, have of determine to I -- series of connection, things services. tends you'd say has I where front-office is. Street Charles middle, which and a State one we clients more And the then And River is Street will towards relationship that gaining lean to provide think large of the a number deal would beyond access I all

we our innovations access basis. we've a to new highly button access business lending, the can that specials markets of those stream Some on all to around one differentiated. and automated created through be extent going in the lending, It's touch, peer-to-peer way that to the to securities

is, go to standpoint the one-by-one front-office the through the relationships where Ron where you will from of that? lead the leaning think would would is or the I determine but lead Eric, relationship be. my add towards anything So

their all process. value there was the as I to value and add to And pricing pricing thing but only kind delivered. managers costs platform euro it's the cover I that to of that, which important facing. We areas. think streamline anybody like pressure is remember own not about that familiar extent other the is subject to investment is with Well, this challenges to commodities see you delivering investment the don't the see enabling improve being would to same are in only necessarily that them to this And

roof Yes, seems to it just about where to you at once that keep it the least I try It's but guys That's same I to separated, initially. going under me. least appreciate all like separate keeping Ron. at are it's wonder seems

Correct.

then to total a quarter? Okay. Thanks. roughly twist Deposit a here about how It believe that actually deposits two are basis the take guys, for bit. in costs base. thirds deposit results for points the you I this like refreshment we looks And up U.S. it’s ticked XX dollar.

I number? right to is the U.S. So thirds the how dollar much Eric? And deposits? attribute should we there noise that, any two And in that am of in

the I rates. just continue to came up raise they think, think -- I go if as to deposit outright, rates

interest a in over our continue deposit to good U.S. the snitch keep of was share just a rate we benefits as returns. sense. this bit the industry think well at need within the our with data environment are clients. to to need it, build well expectations. bounds sells our cycle, bearing point was think of which We makes I to some XX%, of these We the The of

we’re the think clients sheet. I activity with seeing on balance good

them. bearing more slow rotation, slowly the internal so, on keep is with non-interest model. And see And to engaged the the well other continue our we’re to continues very to I metric guess but that move an than And we deposits. eye

of the from quarter build good So middle a to in And I continue in my interest-bearing we to expect I here. said on all-in-all, we’re cycle. given the remarks, prepared as think deposits NII

over you -- math would the dollar the increase would to Could just me I’m XX-basis-point walk sorry, on the deposit. because applies that Eric. U.S. to I just XX% assume

is U.S. drive some upon would XX the right that or in higher deposit that for that’s data other that I think that that deposit bps? -- the based math deposit? there would So ratio Isn't noise

that. to more There’s

view earning X in a So sheet supplemented if I’d is you This it’s go at U.S. others deep for balance the those, rate right. take directionally financial Page and through our but but versus a domiciled look into actually non-U.S. this. average actually interest

So points on I basis XX which basis went XX U.S. focus to the rate, points. from

was If for the on you actually data, here XX% all the have U.S. interest data effectively bearing internal that which effectively deposits.

Just line right, we’ve with because page. line costs remember the -- now bottom that FX non-U.S. in swap at domiciled there, in has the footnoted of the

that, want the I simple split you so line U.S. then you non-U.S. if to U.S. But go of that. -- and off just with back start have you And those it the got to approach kind to of out because we’re more it’s to and and direct

with of comes question Bank the Mike next from America. of Carrier line Your

on first. business one Eric, maybe just the core

that’s a little I there know FX, just that tough beta? maybe weight much of maybe asset seems to their became But on both timing it understand the of wanted the the get just how sequentially like in assets, was on for weight the on that just fees, and currencies the I it. it you markets rate. like Vanguard and to in with but anything that -- know Just more of the international trying you besides a weaker, run servicing quarter maybe like the BlackRock and had like kind the

that kind try possible just me it be specific and of we’ve you sort to let of historically give -- so broadly as provides that then It’s as Sure. felt. to

if me So client-by-client, I win-by-win, go I'm not transition-by-transition, appropriate let here. helpful can be see but to

a to There versa, there was set I business and ago. of market flowing effects right. million, down factors, other U.S. fee And quarter-on-quarter the and trying I shift was $XX about a be is always revenue, think is mix, and underlying of is mix business a product always is servicing BlackRock, this and we flows, that which over a change the vice mix of clear think EM is is of year there new transition client in between of which announced, had I through. there there a and better kind

quarter, to $XX quarter I'll be the the and for the effect think half point the was at and transition think you attempted if think just of million kind not terribly this of this this every of do probably time about results. starting for I but about the be can BlackRock the least that I

helpful. more just And the one acquisition. That's on Okay. then Charles River

revenue, strategically the on sense. conceptually can on like that or So synergies, make

using potentially you you're away And be back-to-middle-front-office, I think a from don't base, And do those these like but some your of different, and client you you run You revenues how to provider. provider? the shift is to X. revenue issue that huge are this are you the assumption when River's meaning of into be just Charles issues currently much similar Just assets? given another opportunities, up them mean like more versus BlackRock, client, when into from pricing how very the but just those I make Phase new any new they the of doing assumption? wondering to in much another like the come of then services with like kind maybe have when like issue, those allure move mean a What competitive the to, for will concentration that of at similar it's terms

Hey, Mike, Jay. this I'll is Eric. to and over start then it I'll hand

else's or not new platform trading or someone using I largely would these that are today? employing not. other they're counterparties. is, which either custodian else's currently question with They're the some first services Your they're say someone

Street the see the of value they've areas has some almost State Street a synergies, we two back-office we'll more becomes some have show And that's counterparty thirds sense of provider middle-office side, can more who of which a out most Street like are a likely synergies integrated or today on part consolidation that So of custodian we've with of that. are got State as State work. seen the of or where proposition revenue of the changing custody

think credit we exist the from and but the think to which stream way I and activity State they'll together. other more that exists Street that of lowering other trading we get the execution will in to the given with through can counterparties extent compelled simplicity with risks. the front wire trade be I lending doesn’t trading and today, of once and all They're back,

make change done not of I different those the So to else. one and think services areas. on it extraordinary being one would of somewhere today And transition a lot depends the lift a but in it's the cause any is this different

me let add, Eric. just And it's

through you on tried some I real go put Xa. if to I we the synergies, detail think think Page

here. nice one of different think I CFO, and on of a progress we’ll is mix fix able measure every And that's tax I really like them. to because there why a as execute then be

So Charles scaling first take solutions. River the front-office the one,

is and clients a into moving software Some them their our existing and that service. of cloud as taking that’s

decades give just be that’s way. River And an we be way you’ll want it going out for we’re had, get software managers. to another, to accelerate -- right, because so, next institutional may not to large here decades managers asset do credibility, and right in you’re that large have of offering Those releases And old they there’s when there to a an and and able forth. the new so asset Charles they’ll that kind

have a functionality. be be kind of office the to tends software the And this manager often capability, they front think you where about it implementation, the it typical I there’s to and could attribution think, part or to then their pay expectations XX services a front folks there’s And there’s of portfolio sell the high. that’s the service, XX market. way I office for in series functionality, the a of is price. this these billion performance willing relative providers, be range, if think works. this is still So other but there’s a to because And tend I want managers, functionalities, narrowing providers, XX. where other CIOs and not And are fair of is the $XXX are This mentioned price asset smaller. they quite some a

have thing it nice synergy the it think because I we’ve a is franchise, taken in kind them but are scale kinds haven’t that you mentioned think, about developing the part. one River And bring that Asia an I’ve behind I’ve comfortable. help is one and this out the of synergies a it global built international overlay Europe where quite European that another have overlaid risks of progression these that, I’ve in franchise. account backing brand we as franchise plans institutional Charles we can but if think so, is as reputational models that that those is to other against and in put we much really a The again, that here not expansion execution has into there we that and U.S. I talked and Asia. And

next of comes with Your Brian line question Bank. Deutsche from the Bedell

in still of market outlined with River under Maybe Charles identified $XXX million, a $X like River, just that Charles X%. you’ve to to start with off that obviously billion so looks you synergies X% maybe at the around looking about $X pool. that share revenue pool the only front-office looking And of that share you’ve billion But at just and revenue. then the that that X% State the some Street is imply just

a and to synergize on of believe and asset in more market trading we sort to been of to actually industry talk all obviously sort this traders' office Can you move and about really potential the the you by making talk about, So of If incredibly decision much of be mentioned this driven that decisions where course? products. increasing managers fragmented know corporate the you is of really the share suppose looking can that’s you has historically usage the significantly? we'll

everyday is conservative to answer. not we the the -- the desire largest think are and in we I is of here to a implied about by scale. asset for want about we the us thinking complexity overstretched. exceeding acquisition Brian, they're even be definition ourselves out this this think you amongst the do see with of how -- terms managers is in simplify to our real who position what is There your take We're But fact that There clients. any Ron. how question is we actually

We front-office vision that overtime we deliver cases a kind that's data-enabled of idea Officer and on CIO the your the is many agree assuming particularly might this these portfolio individual technologies I in many client a So decisions are decisions. the Chief technology -- decisions CIO CEO, that in also the that's right upside lot interoperable that oppose other to moving at scalability. respects think they're with And platform a of and with of here. decision of to manager again I'd use. least simplification as that is centralizing that and there our long think choose Operations point you're the term around

else this. And -- -- you the need approvals some regulatory who of which which need approvals, do regulators is

and approvals just there as Eric, the customary I from include we've Fed. the non-objection. now is received a mentioned obviously And it's this been in Brian, CCAR approved and

at year our So since that up we've is one least Obviously, discussing to of that agreement. part confident them close of that. confident this the in regulators feel particular we can we've quarter. gone through that early activity. definitive think with before I value of that clearly informative. the -- that's Fed if And we since speed the This keep the fourth been all any feel here. not We a and We

Okay. from go BlackRock for an on the the you've transition. $XXX to transition if the the the of And left installed? in say that X on color billion last think, $X.X of did BlackRock new the read halfway was going you is asset And trillion Thanks I to be install the just then to quarters correctly, run it, rate $X.X fully versus the to is And perspective only also over done? they deals heard then the got … XQ back I trillion correctly, you servicing. asset Is for if

Yes.

You've that right. got

You right. got that

And since XQ canal? another to you in BlackRock have have you a tailwind installations half from other of than

tell now this is I Vanguard. the and will if our you was would where client on who There questions call. Yes. is And that you last have it's on lot be a of remember interrogations

win. We are that quite proud of

that different services right, and think we the in different offer, always both in a that I of call that range is U.S. there quite it's clear in regions

And different. so vertical custody the its stake on basis point is full if pricing range quite only versus

you not that to client a sense only second performance right a many one custody purposely the to we that did And And office so cases offering, many easiest but I middle accounting clients, think in I'm or the or I cases. on now, because with give that start administration that's into And analytics. sometimes then in going many comment with. in -- we start or we scale which to and for

particular. last we’re in for over have them. We comment on And so impressed the obviously We are so clients. were on But won’t those and we and functionality they're Vanguard we’ve excited to kind all is discussions they constructive. efforts also the really real on automation have a but with which custody with of and have brought to they forth, years technology growth Beacon few trajectory, the think

of from Elliott comes Research. Your Geoffrey the next Autonomous with line question

few easier give look regulatory bit how more as your moved have last part the next a several of be strategy you little on see the thinking I in the a But and be might at was strategy the kind curious ago into over asset few was M&A I been could smaller guess years, now. over to years fits few this Can if see it makes management, and years? than GE transactions which it how would a bit we which some you quite it environments the on may of broadly? us

Jeffrey, this is Jay.

a Let all, with solutions specifically in the me might move thought, we’ve I is if think where think areas which over this invite catapulting select management where and because we the still advance that area characterize represented we’ve that into had -- said well. capabilities start couple the some along be where jump there going. maybe we an business by to Charles into could we And this And might if Ron thing acquisition desire were thought right both all that strategy those that We’ve periods second where we one came acquire our is as two as interesting. smallish. we capabilities. that’s is River, we big to the last that That’s office. a in area be an would asset through do which And was the really made our the office, enhance front we front area we’ve

functionality than have rumors River I’ll we because, coming other to the of even small see maybe with to create some a need wouldn’t with other front that that of State necessarily Charles I would to we integrate over us. front or turn office. you Not so to stuff with and are Ron looking but more acquire office Street what it interface providers engage would the in an lot together, And

wouldn’t see more some on anything probably I So capabilities front office, partnerships. more the maybe and big smaller likely

part I as that is to add think in seeing -- need here cases don’t important, we’d I relatively strategy, Jay’s real consistently focus there think, comment we’re platform growth the as on strategy this relatively business the as about. What well Geoffrey. you’re a analytics in to where do we’ve -- very because And I comments said would got both we last focused about accelerate sit times we an of I Jay’s creating both any asset from said is now, basically a is acquisitions Yes, that and a M&A. And talked what it data to we’ve, call. couple already servicing that asset focused management.

part will to more They which us that. us bring of to easy Charles have Charles rollout out their Our bring we the about powerful way that market. overall clients, like it. be inappropriate we to platform it's to that acquire talking with platform, strategy beyond for an we way or these an even including bring us. delivered provide of And this need the it tool look in provides a lots us a this on all things to own the in where way to idea most it River, build the platform rather can River, solutions the before and River platform, buy to clients we to itself the information having been firstly, pricing things and goes ability as started together about parties. enabling interest provider Charles can third of as a together. is to the have as to we we come and conversation than solutions all this And unusual solutions enabling at has in data very it information And including it's in perfective, don't But of

And just follow up. you. Thank to then maybe

River to running as separate to Charles be entity. stay mentioned going Who is a You is that business? going

and the Yes, software us in stay to is interest we role help got the a he's this consulting given running deeply do somebody sure Executive who keen in will companies, founder, experienced business install into on that is the making will a transition Chief a successful.

the each the Is kind that making guess I State I given the the of to of success mentioned this going a of of shift. fellows it upside you getting they're Could announce of it kind is fellows hopeful there tied not like anything on not interest deal? the participate or guess to the stocks in to what kind are looks And And keen like Street part successful. making sure cash -- of are of any it that?

retention take who and the that? about an and next separate they're amount that designers going embedded State Street time Street feels make buying, he's we embrace add interest about schemes you appropriate and company going think XX invest me over this the State in put It's core an have expect, built with as next because we're this you interest has about State able a this founder, years. Streets business. because the good a being taking Ron, the to of to This level. the that? that and emotional -- theme got in and an financial to But to he's not as the fair to asset Let which the would interest, spent is He software intellects obviously we're level it to have to good interest the is we engineers sure are in it. feels really team in a

very Yes, that here that There equity. I to own have is add is he doesn't the the that would all founders virtually what little own.

team just performing work engineers. that about the So great with there is very of group them, Jay described high the a and are ongoing people is the excited retention here they're

their compensation Street we them. will else in a to plan And out share success. at they worked very have everybody We like be think that State attractive will

I growth is mean think Jeffrey. a that one that this point, more opportunity. just probably I

think hopefully it. they'll see it, I you you see see it,

itself exciting in I theme team think the growth Charles at for is River.

next question the Buckingham Jim comes with Your from Mitchell line of Research.

numbers? XXXX to issuance, contemplate about synergies guess buyback all before the expect again good kind before synergies I Hey, I And X% income to growth. to that EPS Is there right if so, to way or way that morning. that XXXX about I little net think talk it? think you anything if about for bit amortization are in the some you get about implied think Maybe that? we and so impact, the building putting a is together the to maybe dilution. to earnings of add Is assume expecting guess gone a fair that about XX Or in number? in the any the obviously

Tim, it’s Eric.

days in question. early you've modeling, X, -- you’re think started just this I And the asking I it’s And in think, question. on this hours. X probably you're

it correctly, right. approaching think I you’re

so of to to the to for to got What’s You XXXX get going some rate then earnings? adjust XXX of earnings that. you for going kind take the the adoptions, out. into You’re a and growth you're operating mix, that adjust build to got got on the stream got taxes you you’ve

of some X. ramp one covered in to on I amount as I the some one, nice in but So think to earlier and think overtime it come you, in year tends there’s that year up I real revenues starts expenses questions,

the got you’ve think I So right. pieces

good I you good a we the timing. we’ll the EPS I helpful And earnings all have what 'XX. because January call. exact give more call then back a quarter financials. something to can have we’ll kind know to would is for by either concluded on the basis October to for call in deal. quarter, select or guess, prefer the our think I of some indication We’ll of do then We’ll just I have get that's we completed think ranges to or a It's or third this be when give from try contribution you

the of take rather but you with some on So that to I’d got basis. think you’ve we’re I in I components, right. think, And certainly it steps, happy iterate

a Is that annualize this was there down saw charge. think we for the I comp was a to ex then or quarter number rate about And compensation expense we you true incentive shouldn’t good that some of the getting quite up that there mentioned that run kind had bit quarter?

X part Yes. that. answer It’s a clear to

related And this in leverage financial I think revenue ahead commitments think on incentives. on environment the see was We ahead think in just quarter. specifically, conscious on bit compensation on Beacon expenses first NII. for and quarter it I and we did we’re the operating like of a We're have. need neutral downward I negative the we bit performance we to feel deliver

obviously we match a think We And results. to the so incentive company. run that’s way with

bit there. is there so an And of effect a

the the time about is to I first expenses half the given expenses the best This we’re you of is second year. versus here for think think in half. to of middle give indication some us way natural

keep intend at is. I We half. could look and the half first expenses we you our second think in what said I we I at take about to it, a -- view reported think, level

level is to of You operate that quarter markets know to that right out you down. of first to We but we We know expenses, to us that are going just go But the likely got got get. we're environment be don't kind to or that careful. macroeconomic that up what in. bump don’t

on be And prudent to we it's so expenses. best think

But we $XX exclude million Okay. in should that well? comparison the as

charge? repositioning the For

Right.

as we a valuable to more Yes. as We is item. think That important transition about global yes. a address do some into that specific delayering feel that -- we was functionalized and and model, real operating

Okay.

that adjust you out. So

very you thank much. Okay,

Ms. Your line question open. Graseck comes Graseck, your the Betsey from Stanley. line is with next of Morgan

you thanks. can own? I'm made is buy, something getting as sense to decided from question worse Yes, folks build why on maybe One sense on this know questions. that else And this you morning Two your I versus a building but like us give by. the

space that be Fund I Currenex I've done several of Lots Data last built I platform doing brought will built Betsey, what Lots about through we GX. we would on think of the that described. the know the decision as in was out in we've if own. SSGA and we a that both. a Connect, which of out much built that FX Ron. us doing to occupy we would to down over And the that it's came activity so really really much we're or here markets It got it. River clients. work was amount market more couldn't We've integrated to than we years, that felt enable platform accelerate so just Charles to us this our this see actually say out pull quicker all fair Connect,

buying. It about the it classic really So was versus was timing. build

are a asset wealth a of an part Betsey, of and the pick addition up services, sweet new our kind owners. but and kind In managers, is us to segment, the And we part other which from segment XXX answer and the to it's of for standpoint this of is software access advisor the spot clients the exciting. asset excess that is in capabilities products

of Page to then of State question couple on And and it. streamlining follow-up office. cash X, Got them the and synergies was related a at just Okay. out back synergies on the Street's are middle

could you of works someone maybe more who is operator. front understand you're that because a office help me how buying So

want just So that. to understand

Eric. it's Betsey, Yeah,

side Page is there X on a Let on me series those of the synergies. right describe different

considering one the our been own implementing management bottom is at Charles SSGA of factored over in I them is River the within that right, of something for page, asset years think we've just X now.

imagine consider our even this PM did you right with and could an as actually before teams acquisition. long diligence CIO So we if functionality product we and

about SSGA. base and expense we think So billion $X.X in you got if SSGA

million. defined, at look $XXX you technology it's just If narrowly

is we're looking benefits kind at so here, that's we which level that one not but at what And what overtime, decent some example. have we of so the built, have consolidation of from simplifying

at operational think business, efficiencies systems to and office remember, set and I the of systems, Charles the remember, have office get when we the does the are you today middle so a middle River. in we because top,

both If you on, earlier that that office middle we’re Jay in remember area. slides showed the

system example, we both helps compliance For with have a that compliance processing.

that’s they managers, for retired ones the we For an natural a -- one turns to expensive have one, system have run operate. and to asset out

so And just something range. million is that like worth the $XX in

a flows kinds data real exist. work on then begin we streamline out. to And is that that full to some middle and is, there’s which take office service reconciliations last So of area, as it’s the of comparison those in we as overlaps this that, offer soon as costs obviously, of

off And area a also base so of what have this there we’re off of is it’s quite experience efficiencies expense confident of. -- and of we relatively synergies on the do. lot extracting we large a an And

building I data the your piece, And analytics have you front Okay. data out analyst platform. been end know

Day in back York. some showcase I Investor New at here of several years that think you an

that your for just wanted that -- need go up building data just efforts of analytics get understand other is to words it, acquisition platform Is because then to? internal is anymore? So you to those or don’t layered is or it the a CRD do away the to if means on in efforts acquisition replacement it adjacent

that. Ron, is this take I’ll Betsy,

sweet. are And can the couldn’t to our us that the probably some could are together. there’s rounds of have just then built both we sense dense some have there actually brings together are that think that I back capabilities on in a build have are some the it’s by additive. we River out things with little build, of one -- it some that own. bit either Charles that We what capabilities There something that that didn’t work

So think exposed where Eric’s where office Charles include matter going up better has. tool than a business. it, in trade have build workflow tools to the else be office front or than but can even office and to our that We large management. about some now they that anybody leads, they’re very if has middle That’s point post a would River middle probably the so back on a you space had

from the with question Juneja Your Vivek next JP line Morgan. of comes

Data GX for A couple clients? service today you when questions is to your of folks. you buying it pitch How price folks

addition, a layer. which that top is platforms apply the data is on then it's have Subscription And is once that, say data the aggregation which this number add of recurring of as GX, I associated then expand Jay. Data separate base, get would Vivek, actually to with you analytic you the or that some -- fee we if add-ons, based. has custodians base all and a a subscription analytics aggregated in and stream, revenue

of this based All is usage. on recurring

rest middle office the have? the to you that tied of not back So contracts may

Not at all.

say you. just your it or question and was using was $XXX heard million CRD. Okay. for spending Ron, that a Eric, million going saying maybe $XX hereby for SSGA, to I you you're tech

right So saying this front that the -- costs office Is your extrapolation? for by does are this about would you clients that cut XX%?

Vivek, it's Eric.

kind of We've base of own client be able think every different. will interrogate to I our been expenses.

value. just And trying think this going the get active I to is are examination and the the we I And partly functionality just system even this do base our that for this that's But because and actually expense was CIOs of But of that. You think be to when expense institutions managers are have need. CEOs value million. and the an with you estimate. also give an it's they're think way. to that an $XXX representative There technology under is associated I kind a base We the much for and on could asset base. think compartmentalize the $X.X obviously, operations billion There But about on of that a way. math on that play focus I SSGA for value is and as remember all efficiency in fees those benefits what functionality space. do to us

they And someone attractive they the range is could providers how build that's this as property would how range a And And at of but it think have. makes it got you the we expect what internally, do do least in we've fragmented, they what little depend what can help both. example, have, so, on many as premier view our that here an an constituents for of have.

range And so there probably is around a that.

own trading just I states by would synergy efficiency effect think model, it's XXX front is a but our Street's liquidity the created value Jay, this important, the do client what that platform through is think about And world. think And a that, connected as third to office that access is. can network the only and to Charles add, cost engines. you of I giving I this the the and Vivek, of And State be having to River if

Ron I think the referenced pretty doesn't it's other include wire just powerful that relationships into start, will that a as concept. And this partnerships the and that's earlier.

multi-year CRD ups, a to the rest And getting business contracts as what kinds to be time through lead process? these have for on your getting of of which follow similar go you can

let me Yes, take that.

think the depends system multiple that the components. it is I is Jay. CRD Vivek, this answer is has

both lead And SSGA I And the lead exercise that across environment it you cycle way a a would a complex kind time year final day. once And that and say asset implementation all up that's say defined happened doesn't long be that's complexity reasonably I'd classes. X the so careful the deliveries will to of software way. that the in short lined changing to X.X environment. of has with globally when time the by It platform it. year, out along gets is some the probably

which for and the multi-year. pitching I a business, as idea I Jay, guess and off, whole middle trying back to was office I traditional winning of think know

sense similar. much I get what trying So to so that's was a CRD of

Ron, Vivek. is This Yes.

a things the lot you things if lot the already office, for be middle with think a work that client a we're a see being in, and it or because to will to I lot their that that with transformation we’d client-specific, there’s again, have in of rapid could a example, that, of be plug if moving a done. add-on office, have working that doing required already them, the you would we pretty is quite but already do situation middle this of where

probably the We close. think, to what the asking So serve to you’re pipeline the focused months I make we’ll pipeline sure their we're if very they’re that well. will clients want quickly? first add And sense. clear fairly has although build one, Yes, on the then after how be existing will continuing it to in few to makes

annual X% I is Yes, your because noticed, XX%. almost growth compound to

So what that I’m trying to to should expect get over happen? a we period sense of

certainly to, have that, a Yes, we think you period the that, over time I gave X-year on we for right. CAGR

least a them be So think think as can clients, we But the little of stream. clients year higher. this broaden I whether U.S. to first year, closer and it’s it'll seven overlap they’ve and our as the the mid-teens our growing into At we are been CIOs I to we know bring get our the showed then quite able CEOs clients data, them you in which and where striking. where and into the the We door of internationally. is half top-tier not

and in We current said, our clients, as as nice a to serving it building well business. So we is be got stream. careful, first it’ll them view overtime and got build a provides right. really this Ron invest But

Your Kleinhanzl next comes question KBW. from Brian the with line

take the question you Just end-to-end back what integration, just go you one bring closed that what Vivek solution to for in maybe, first quarter, May clients long but from clients? when quarter, have our this is fourth we Like want solution asked. I'll actually say year? one to can have and how quick out to we will that How you. deal I you know what actually

would say this Jay. is would I working we’re this already. say, Brian, on I

into connect chance understand is a Street the that things State obviously, short that in it a and this understand office SSGA us years I client will -- be year, things working overtime. points of times middle really SSGA, and said the back think fact been given to period a but on has and has a relatively a delivered the that can those we happen for few two of time and

And But firms State pretty show think which a grow. think to Street's quickly, and probably only will from if we’ll time. able other to Street some be State about value will evolve. will standpoint, into linkages additional wiring client it Charles existing to the base over it’ll River some and you I but to this client this, So grow it the show I from base, continue think, wiring capabilities not together just

I I that add outsource firms actually and that this they about their is, those this into and in thing have base integrated haven’t, even that, Yes, what middle would client think to is most to segment solution starting office, know are haven’t the the an important put front-office. to

that to in up to or the say built figure out. somebody to isn't with has contributing times sheets have of is here as that this and a systems So them this spread with we're, office. we're front-office middle what's complexity It's what overtime. office, what's your it's you conversation It middle again given do displacing about displacing your working And the proprietary pretty often easy else. been necessarily we're help

points. one RWA help deal, don't I down. CETX basis the XX total if dilution you I the know just recall then what that know mentioned Great. deal? that a from on were Okay. And deal. can the I maybe intangibles if the But any would us Thanks. don't financials break there impacts the was from be you Eric, from quick

Yeah, it's Eric.

all regulatory are I goodwill billion to and capital think and of about from deducted a this right, those and reporting. the think obviously easiest intangibles, way $X.X is

a side. kind neutral And financing equity of other ratio so we've on developed of fully the

that on intangibles. So those -- could go that

that capital contemporaneously it'd basis X would deterioration that be So Tier if if leverage -- the X everything -- was Brian, neutral be and and on capital in ratio. set

the it I think of and out. model is lower. is given out over roughly through is that of the can that intangible if goodwill years. I unless base XX split plays model how based then a overtime, on, I deduction you intangibles. work can through And just just And think, a The on you we've come mix the is to think XXX next XXX intangibles expense there part the

will model, with surely from come classic that our come out. will kind expense multi-year play help deduction that can but a so And base, we the through through but you offline. And will of capital

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

I'm any they're I entity that regulatory not added company license. this Are you've there have a banking because today? or Charles bank if as holding asked you them that the they're late. anything separate issues separate, on question you're River I any that or integrate not to not them and apologize part understand jumped with have you regulators to a as I company? costs like bank address by Any regulated bank your holding of assuming as do going a keep

Gerard, it's Eric.

we've guidance we've on a financial to actually and what revenue you it and deliver here cost the public into you've the or to Within usually a put do to have private revenues company the given take factored that setting. expenses, in

to I is we So have do accounting we the financial usual reporting there have. the for work more on thing the a bank and the we think various on auditing and same And level so that size side grown a got that. that implementations scope the and you'd clearly, and from of expect side, until at regulatory has soundness to it back and we get security our data bank safety have forth and standpoint then to

you've was measures can revenues we about look of we or the return happens I with expectation not really of total second, the others are us that the your this billion, to X then on road there you the great this of see run X. guys data a can these the With if expected. that us kind extract no company synergies deal given in investors And any was should that objective share And your Slide and like, really calculated for it coming $XX good you seems and X, it’s that benefits Yes, some at Okay. revenue other years know that that it’s rate internal acquisitions down that? as this today rate down of accretive. about see Are and a working. to hard for deal

again, your since numbers? this from slide, regular blended Aside in they us what given you’ve into can

Yes, Gerard, that sure combined make we’ll to with value acquisition like this not extract exactly just right. the I need activities. other think, and you’d Because from to doing be it’s see, we we

on think take perspective we'd to there against like science we that GL in platform. perfect own because behind services through you them that. are it like That each not standpoint. streams be it given put and comes a we liquidity we’ve our the something by back, book trace we to of I need buckets that, actually need revenue that But that actually clients But one buckets trace defined against you, to example, should just defined right track, it’s say, we lineage as the they’re that through and to our Now, data systems X that these, back and track. do specific can just dozen for the the way

of so And thing we can kind share. the that’s

is management wealth think I compartment.

with the you client if view converting of about the back under some talked go to find additional we we what top trajectory. implementation, from of the will are counts, to able they, I think that the be what’s what to were now, list, clients cloud clients, so they on-premises application

everything we on We’ll anyway, we’ll that kind doing regular you bring And basis So some with can. share be together. to of do ways to certainly find we’ll internally, right. it, it

to the guidance at think step think in did And gave for growth that I you as end our we that. up of we’re back that’s we've and end acquisition. of to that end sense before some this possible management or businesses the think if of underlying everything what our perspective it how markets think show at can though, we’ll is is add how toxicity do whether We rate accounting given the the the transparency grow. you you day, January. I top what businesses, can on we we to pace. percentage point But achieving and with And we

with comes line Harte Your final the Jeff question Sandler of from O'Neill.

under wondering as a still your continuing were We more businesses a now? of covered, about mean, office Good calculate compares have to of couple. Most you space kind I’m potentially that bit percent just this from of little the the in but guys. front kind the outside. things terms to Can the decline? offering, assets I been custody revenue a big morning, but how talk is traditional fees

and ask weight I’ll in. maybe Jeff start Ron to

more front outsourced data Ron it. front go. have up earlier today. say the all us and I more I set the even most people office market billion at from feeling the mature We pretty and think? say office growth middle of those competitors. office, that front systems XX% opportunity The that far most to a services back, as to explosive the the the back of maybe, immature. set would tier say get as what of Bur probably front And growth, front, size systems think that, of and the and has replaced, middle is of compare the that, has the need I would would the standpoint you a three referenced growth if and attractive running, pressure There’s in office change, proprietary consolidate the that caused I’d this but churn I offices is but segments. office are Ron, to say the

with in that to you the what data analytics X, the it, particularly if in tools. think of be the agree unstructured add many of capabilities we're XX and would some tools to is analytics now and of Jay. about They I'd weren't just of And offer years I data able able the Data Jeff, of that Big that, kinds terms space. offered ago kinds

as data a new of So analytics the fairly you're it's done being way a industrial platform package. much putting creating many relatively were cases being more things it And kind you're with -- together strength in and offerings. basically done in Jay either in market in taking new office primitive front weren't or now a noted, that and

the it things our that is included Okay. talk like how can packages bit and financial you of in and retentions, restructuring retention and And important acquisition about, impacts? I b) a) million $XXX in mean client costs?

we'd Yes, bringing on growth overtime kind to that that we're about There million for And the like that actually to talent going aside it's drive is what's Eric. we Yes, talent that that's that put business. additional absolutely. we're $XX on. of in because the expand

the that's we summarized of part there. $XXX important So million the that

And at questions no are time. further there this

and Lisa, update you. for October morning. forward thanks you an look this Thanks, everybody third joining quarter. in to after the We us providing Thank

This concludes today's conference.

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