State Street (STT) 19 Oct 222022 Q3 Earnings call transcript

Good morning, and welcome to State Street Corporation Third Quarter 2022 Earnings Conference Call and Webcast. Today’s discussion is being broadcast live on State Street’s Web site 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 recorded for rebroadcast or distribution in whole or in part without the expressed written authorization from State Street Corporation. of Web will site. broadcast the housed authorized Street State only this be call in The

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

joining our for Good XXXX presentation, us. of CEO, morning Relations earnings site, O’Hanley, first. will slide our speak download which Afterwards, Investor we’ll Eric will you section our take and all you Ron On call through in today, investors.statestreet.com. thank the our Web happy our Aboaf, CFO, available take to Then is for third quarter be questions.

please to During limit the requeue. then questions Q&A, yourself two and

items started, Before GAAP. non-GAAP these to on get to today’s basis available Reconciliations presentation the to include measures comparable presentation, GAAP appendix IR the most I are we Web our more section remind available measure a you slide adjusts that or also site. from would of like the our in or regulatory that of presented results excludes directly will or in one

addition, forward-looking risk our Form from will today factors in in results discussion as a including to filings, those Actual contain our of such variety our statements. presentation statements due materially factors those and differ factors referenced may in SEC the In today’s XX-K. important

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

Ron. to it let over turn Now, me

was focus third and solid to clearly XX% the items. be global of the quarter, maintaining State onset year in of, with of the from, And margin, further good Ilene, out and faced results third in the different the in quarter memory morning, everyone. no XXXX recent improving our pandemic. you, COVID-XX those and XXXX our other which unfold notable challenges Thank pre-tax arising demonstrate acutely while to business faced continues the Street's environment very excluding challenging, a the resilience but partly continues today our model on during operating world like

During effects macroeconomic third fears higher by war quarter, the adverse and and the negatively including U.S. global declines rates, fixed interest several These wage strength, as dramatically market collectively were dollar and which factors income headwinds, price global ongoing impacted the Ukraine both of continued well meaningful financial turn significant in contributed uncertainty markets volatility, in of heightened to inflation, equity as impacted and markets, drove in a which flows. recession. increased heightened

We carefully continue the to business this for navigate environment.

intensely market the makes on a and as and fee growth balance attractive and focused environment. quarter, capital revenues, While well in position, climate owners our for the offering sheet third and managers we managing revenue savings operating by significant expense our and proposition can control enterprise of trading the remained outsourcing even inflationary value Alpha what in asset solid number maintained our as of demonstrated laser delivered as created We business asset more NII a FX headwinds efficiency strong healthy our and current management. to

able X% markets detail. Starting to the quarter you clients. before more supporting continued increasing drove Within our revenue, performance, total 'XX the Slide global will with lower impact the $X.XX, third equity year-over-year volatility levels Total notable franchise digit global our declines global Double in or compared fee XQ quarter in decrease. well, business $X.XX, FX market 'XX. increased market revenues equity with perform securities revenue from and for excluding as excluding year-over-year, fee fixed notable X% to items U.S. as dollar. items, the well values year-over-year, income average was of management servicing once $X.XX trading and benefit to most this of primarily of while reflecting our to EPS again our was our as stronger I and significantly and Turning highlights declined quarter presentation, quarter Eric finance the $X.XX review financial third takes through or third in services respectively, on fees XX% X

We strong continued XX% on as data, and declined quarter very NII total third within a Total Faced by remain period, also focused pressures, revenue revenue the increasing increased just rates. X% to for third result year-over-year. a the quarter headwinds office front with X% controlling revenue largely ago growth. interest which year by inflationary relative lower revenue drove software solid and was offset fee primarily we higher with result driven year-over-year, expense fee market-related

flat wins servicing third drive existing new XXX back quarter to new office expanded two relationships wins demonstrating of invested our driven and our management. Even in solid and Encouragingly, primarily stronger both momentum deepen quarter and the include to amounting as Business we ability dollar through people quarter-over-quarter, and our were asset third AUC/A clients, U.S. expense was Alpha impact in total a by year-over-year with expenses billion. quarter client broaden the strategy. our Alpha third business, with and relationships mandates

Brothers As negatively performance, was a flows annual products flows positive and equity a result AUC/A U.S. third installed experienced in [ph] our end. office quarter we quarter, AUM continued new Harriman's our increasing XXX but experienced institutional our revenue The with net conditions. Global subject were recurring of approvals environment now leadership current data Investor but weaker excited XX% Brown Even trillion our having other quarter in franchise, third assets yet quarters become of and is has cost will like inflows. transactions as Services be CEO At remains involving We and remain a and quarter fixed strategy quarter's challenging. regulatory money and to in the and of for Overall, growth good Advisors, of sales to to third X by Front also into I momentum four volatile management business third with this the this Global during business, of trillion. a markets, SPDR in announced environment, year, record share proposed by Hung cash, level President row year-over-year regulatory at the the solid business quarter and Advisors under X.X potential which global quarter. December. AUM impacted to and closing income to million. new reaching low management gain acquisition M&A Yie-Hsin X.X the market market saw still G-SIBs totaled turn SSGA's fees to would in ETF

the regulators We international with are engaged regarding and ongoing regulatory process. U.S. review in dialogue banking prolonged

purchase proposed somewhat delay a transaction, modifications have modified timing We a transaction entity in include We a anticipate the model with to and accretion. the resulting complex amount BBH and and deal structure and path synergies, the including changes to operating to a price. that reduction be more of slower would in legal developed to

as approvals modifications transaction of transaction the any agreed or and are entered transaction increasingly likelihood with to timing BBH's to regulators modified of the conditions approval will transaction. acceptable to the by or Board uncertain. outcome can remain closing and no and both review The outcome be mutually other is discussions subject proposed successful partners regulatory of Directors. our into, for on a be a While and a modified modified assurance There ongoing, the that

BBH and the agreement notice penalty Street any contractual purchase allows State As time. at previously each sale without written noted, and upon the right a transaction the to terminate of

are to and previously an seek compelling reach to underway. efforts us the that during continue acceptable quarter. the transaction this has continue to forward. encouraged proceed We on And we can a expect the believe remains These as strategic path to decision stated, rationale actively transaction for forward we whether

end. continued Despite rise capital. to a balance a was capital ratio in at sheet our quarter and XX.X% Turning rates, CETX interest strong

noted I share we our increase earlier in the of Street's now approximately XX% year, of authorization, previously, Accordingly, and intend to to returned our an this it common existing to dividend already targets. XXXX. announced having capital end program component repurchase our of quarterly per X remains under the As repurchase which of have shareholders the expires importance stock stock the recognize a stock integral common medium-term fourth we common at State billion quarter

in return Investor at capital time. of Board to return be in and Additionally, and times more stock XX% progress, State years half a BBH demonstrated not If of that of medium-term the subject our Street's is during XXXX expect and Services proposed than macroeconomic conclude, To keeping we market the events conditions form to the have Directors does it last our share volatility intention acquisition heightened resiliencies than and two our common amount. uncertainty. by approval the with of and would significantly of the targets, model market business greater to the earnings of also repurchases, dividends of

declined business financial of XX%, addition to quarter, Even margin healthy delivered the pre-tax new we third as in notable wins. items, excluding a solid markets broadly in

continue benefit to our challenging in While the financial uncertain, operating and improve performance against and to execute strategic and confident of is and ability agenda, our we our term medium our successfully remain for the shareholders. model the over clients environment

in as to As ahead, managing will quarter let XXXX And in we it our the by highly with date control business. focused people demonstrated detail. me to flat to expenses we that, and we to turn the with invested XXXX continue year-to-date same the in Eric nine-month on expense uncertain what discipline adapt through take over intensely you our even remaining to period we in meaningfully more total to as environment solid look can has

X. review We everyone. of the our in I'll EPS panel of reported $X.XX, you, slide. acquisition $X.XX my Slide third Thank quarter the excluding costs, right Ron, and and on morning, the or results on as detailed good restructuring of begin

the with environment geopolitical these interest quarter you about the pressures, inflationary ongoing third volatility can As you rates income market challenging operating significant see as in remained of in Despite markets enabled to offset economy. and global related quarter. in concerns net from us our slide, and know, on challenges, both fixed trading rapidly headwinds the tensions, interest persistent strong to growth income business partially left the services this FX the the lower panel equity and rising

continue the third continue we franchise. prudent in management the quarter to we to demonstrate in while invest ongoing increases, as price Additionally, experienced even wage we and expense

Slide to X. Turning

decline period end in ETF The same both a which levels, decline by in by result flows installations. institutional lower a offset change by business client and and services disclosed lower basis quarter-on-quarter markets a new impact largely of was quarter, period AUM was and translation, end The and X% businesses. a our the levels these driven AUM factors. Similarly, Global partially period outflows The During previously net the XX% of driven saw was of transition at and we positive year-on-year decreased market currency largely net by market fixed offset was impact year-on-year the XX% globally, partially end sequentially. end translation, largely X% year-on-year equity AUC/A year-on-year income period by currency sequentially. continued and investment Advisors, decreased net across cash on

Slide to Turning X.

the down the of new servicing XX% On largely client quarter and activity fixed driven year-on-year, market lower adjustments, of translation, by by the fees total pricing see left offset equity side third page, normal and headwinds impact net levels, and income average you'll business. currency partially lower

negative Excluding Sequentially, the fees down in market same the that impact X% year-on-year. would fees result impact growth these pleased primarily servicing down quarter, our with translation, good of businesses. Even I digit as highlight the currency a double markets drivers. of were we're to X% total were servicing of see in the private environment

attributed portion past traditional Lastly, with that to key of of more be have across year. good quarter large we the wins over are rates in installed, a segments. we client billion trillion won the fee And were which assets XXX custody Alpha X.X deals recorded than now to worth attractive

Given installed pace. this assets of we line is quarter, our billion our with large XXX in approximately historical backlog, which

X. Slide to Turning

performance positive of lower translation. cash trading to the money levels. to driver strong share market yet ago, we and management was services an XX% impact impact backdrop of low currency money ETF volumes average market we as impact fees volatility had exit market fees see still franchise business primarily levels, spreads market and year year-on-year, in by remains reflecting inflows capital lower higher in inflows Asia defined In Notwithstanding volumes. quarter-on-quarter, services third Slide FX and to income translation, fixed of client funds. agency suite and summer momentum XX by reflecting offset quarter benefit by business, funds. and recent ETF of performed low-cost tend market in disclosed well waivers including custody positioned revenue yielding third in ETFs, Sequentially, did there's billion, were up the trading business, were government ETF higher quarter. trading FX our of regulatory in the challenging quarter higher net agency SPDR spreads X, headwinds market a to driven revenue by down another was higher fixed adjustment, income driven XX% Management offset by changes, the client partially quartile sustained with due X% higher well equity by million, In XXX X% of mainly gains of be inflows. on due X%, the were period offset third primarily institutional due was falling fixed finance net the saw partially the currency to and market spreads down equity the which specials in client-specific largely due revenues of date Third major spreads. FX the market franchise. net services higher FX down fee revenues lower X% On fund year-on-year and into our with outflows than FX some target which up driven months. FX the pricing money activity, a absence lower up quarter Quarter-on-quarter more for quarter continued contributed quarter, was while Relative previously the our outflows the by partially institutional and and to Pacific enhanced a primarily the a growth. the balances only In lower our inflows our cash institutional Securities FX top fund, offset contribution income to

revenues X% software Third processing up up by fees mix. with office and which X% product primarily were to down in XX% fees software driven changes higher year-on-year, were associated lending front CRD, quarter while were due

revenues other adjustments. fewer saw million reflecting in in negative we Sequentially, primarily negative market-related basis, fee the increase market-related fee to on negative other largely of year-on-year Finally, quarter third due X declined adjustments. an revenues, a

services performance and software a revenues revenues Moving implementations to enabled Slide X% the driven new the in higher clients enabled partially the of durable office quarter some continues software by revenue offset up nicely, grow to third provide as let X% and front X, me office to cloud-based in continued due lower software our on revenue converting Sequentially, revenue. on details platform of revenue panel software success and recurring to Front the the left data increased more were SaaS client environment. slide. professional year-on-year by

Our revenue backlog remains healthy.

new breadth million of platform CRD on owners, can Alpha some wealth The metrics for panel, and to benefit particularly segments, support. the demonstrating new and this the the be the XX was right diversified and to of client continue Turning business bookings now we pleased bookings of across quarter from with business. the asset our well clients

earlier. extremely As backlog over healthy mentioned a which on for I we up to of office, have basis, XXX middle uninstalled continue million revenue as is XX% year-on-year

on XX. turning Now Slide

from than partially rates. by as short-term offset increase by this raise central globally central impact Third client rates interest More year-on-year quarter primarily XX% hikes higher reflecting saw driven was bank of deposits. rates, XX% NII lower the non-U.S. banks dollar increased sequentially, XX% and we of interest only

right we of show our quarter. balance the the slide, average sheet On during third the

As a lower we changing environment, balance this well. our seeing rapidly deposits sheet to result a industry-wide have through of some play rate are as trend of begun and

more in X% down investment both modestly year-on-year duration the continue in average XX% and banks primarily the lower we global to on have HTM. were is as impact policy driven significantly by The portfolio deposits we than central currency now impact of and levels AUC/A. monetary translation, down of market sequentially, by the Excluding tightening by and manage

positioned to interest be this NII well and reaffirm, our recognize to AOCI. also balance results today's and tailwind rate sheet protect continues As

Turning to Slide XX.

optimization approximately which to the expenses, in expect gross a guidance quarter and XXX or again stronger in Alpha, currency notable excluding full approximately X%, India we headcount increased and of from higher and of base. revenue We've associated On and savings in up the savings with deliver in flat we primarily contributed These productivity while in X% items. year-on-year U.S. once items, were also and down of technology to private million office Third 'XX, our of COVID. were XX year operations to by the and benefits basis adjusted year-to-date, achieve Alpha, portion on million in Headcount increase enabled the the and added which costs us benefits X% positive seeing carefully markets private full It offset environment managed of new markets year-on-year the associated of growth the company, as operating offset such for products to X% and compensation invested also wage us expense wage line Poland year. in services and year-to-date compared [ph] parts post up translation puts industry, some areas to including have to optimization efforts, in notable impact our of automation. employee was capabilities our in salary addition the a savings translation approximately proactively support leverage, higher executing middle headcount. in town X% expense continuing some third line-by-line continue to to inflation global partially There which with we light quarter catch dollar operations as been invest generated currency was hiring as strategic our also we centers a for or servicing. inflation foreign to and our been

movements. in-sourcing began we offset to by pricing reflecting infrastructure headcount were to to market XX%, and Information to see costs were marketing X%, sub-custody and was and off. benefits foundation systems to processing and Transaction start technology expect level XX%, down vendor partially grants. growth our Occupancy due down investments. from securities continued as primarily down related translation. efforts We travel costs, costs optimization, expenses And currency mainly higher processing other expenses costs, X%, lower largely reflecting equity up was communications

XX. Slide to Moving

and the pleased RWA. optimize well basis highlights. businesses. We're to and by to I side to this were would We earnings respect that XX.X%, RWA On we across capital caveat we points our slide, balance the put they sheet volatility the right quarter. higher expected CETX to we that work both RWAs, of our XX quarter-on-quarter, would controlled there capital lower show anticipate retained and driven some is report primarily of increases than With up continue efficiently

Third quarter basis Tier size up due earnings. mainly points to and in higher balance X XX was leverage ratio retained of X.X% sheet the quarter-on-quarter, decrease

run to slide is buyback expected This our million $XXX the of and commitment actions capital this XXX highlights, capital common capital future steadfast. we and despite 'XX, we highlighted, expected million as quarter As uses quarter third improved this OCI repurchase higher on of stock our rates levels as quarter. strong approximately to amount The keeping our the than to with interest commitment, result strong of meaningfully negative healthy amounted being mark-to-market returned and XQ AFS, management the X billion minus position now through a fourth in X.X capital. took as is our in up remains intend another And Street's based compared of State shareholders in In stewards Ron the to to billion dividends. we in shareholder that quarter.

strong to Despite third environment Turning persistent provide our the continued uncertainties, Even market environment, performance. growth from focus another services demonstrating interest highlighting and income remained in laser headwinds the expenses results. of volatile with fixed productivity. significant our pleased enabled quarter a and geopolitical with to macroeconomic of I'm our controlled, our the partially markets, and of net both Slide trading current franchise, the equity our well on summary quarterly XX, resiliency we and offset FX us income quarter

our is forwards, Turning the while market X.X%. as interest of with of end our to of current we year level, volatile, assumptions have fourth outlook over which suggests a line Fed been me the year. quarter broadly funds current macro macro remainder and in rate rate our At share rate a look regarding let our outlook, current expectations the some our thinking

banks We as and in expect central beyond to other XXXX international to well. into XQ continue raise rates

a will XQ. assumes daily levels month XQ Our end, imply equity would be to global outlook average market September XX% quarter-on-quarter which in the in equity decline flat markets

percentage continued X to also a dollar U.S. about which of tailwind included and expenses headwind We to strength quarter-on-quarter on is our in worth be a expect basis, point guide.

fourth the So, XXXX. in of quarter terms of

levels, fees to X% quarter-on-quarter decline down Given average servicing basis, the down X% total and quarter sequential expect a X% about market equity in with on to expected be revenue quarter-on-quarter. fee down global management fees X% we

NII. to Turning

tailwind bank NII NII U.S. another quarter-on-quarter in X% for strong XQ, in from to deliver additional driven to XQ. expectation deposit we and This yet sequential expect rate some Following in our includes by increase of hikes. outlook continued growth XX% foreign the central outflow

full guide For better we to to year now prior full year, the is expect our increase NII XX%, XX% to XX%. of than which XX%

XXXX. We continued NII full year good expect in also in growth

total total expect expected environment despite inflationary full revenue. This continue year. margin last be excluding the we a quarter as expenses are productivity pre-tax a the focus and face year should quarter-on-quarter drive and to Next, us year. pressure, we for to initiatives wage roughly to fourth enable Full of challenging the in flat to flat target leverage fee for notable items, versus both operating positive expenses, healthy be

quarter. Finally, that, with expect to call me to fourth quarter the we the Ron. for the XX% approximately And would hand to XX% rate be let tax back

the let's Operator, open Eric. questions. Thanks, line for

Ladies and Instructions]. take begin we gentlemen, will now from we'll question session. And first our with Glenn Schorr the Evercore. Thank question-and-answer you. [Operator

open. Your line is now

Hi, there.

with the seems all question I the the too with enough you it, creative, you complex, definitely along not people away? just it, It really said? on not capital I like what have have as just the fallen. guess not worth now. way, merits. appreciate regulators wrap values good on and do at So creative maybe transparency is strategic complex, market But walk you could just say, more why a stuff but point BBH, question do And hate up some the I am

needless we day. the -- timeframe there's of it we to go consolidate a Glenn, the to happening to But work including here. it's going tradeoff uses to we that's possibility the it Obviously of achieve And opportunity this calculus believe global structure on led disclosure, can driving basis that Ron. this the our you're is down. alternative what's between capital, returning is environment But shareholders that say, the said can will get describing of a back and We to work versus that shareholders. this. that every still the in transaction Maybe strategic for the through that attractive what in as driving is objective. very a the way that what's we've out part that likelihood regulatory tradeoff, firm the

So the you're you take driving calculus describing. that that this from away I think what probability can the is reasons is decreased one of that's

longer. don't much we wait to that guess I Well, have Okay.

I So for chill another out can months. of couple

to mentioned the larger think NII of hits the as moved calculate you into I side the Just up to of in It held moving into securities maturity. AOCI what go smaller one on, the follow offsets it? rates Like can give other up other piece or been shows you XX% that any held has maturity? up. to What's portfolio

up HTM coupon we benefit give But you don't Glenn, that we make are they're portion whole portfolio quite investment attractive and to largely and HTM or then is move what some the want on under it’s you XX, construct AFS in carefully the amounts. to monetization the or you'd yards why have put want and different now that consideration make structure, do MBS, NII, an in HTM. is to that And a is you of that's contract time just and can about to the might earning takes right? what We've maturity the to considered treasuries reason end put as of what's the and sure it. rebalance held Eric. same which X, that the always you're partly marketplace. By to repo wouldn't flexibility, agencies large, The form at and earnings want you front size. time you but accounting and in test the portfolio in want whether in to maintain We’ve XX the corporation you in We We rebalance the that from to maximize liquidity you that place. like. do partly securities the portfolio,

I've So whether contributing an a that AFS got we're on upswing. quite that But XX% to like in sit NII really positive where or cash now or there's And XX% to investment started HTM point sit trajectory We've now a look, it is I'd feel positive signal it's trajectory sale comfortable. we're rather a to say, up to the we're for good in balance I'd that. we portfolio, this partly on available at NII NII see that year. also XXXX, you real and entire on because and until rather provides the you

Thanks, Eric.

Sure.

with we'll Jefferies. Ken next to go Usdin And

now is line open. Your

have to the which this context want been Hi. into putting back you clearly with Good morning, the guys. I wanted to would buyback get back you you'd the announced, to buyback saying that deal come quarter. into

understand $X billion deal through? how pricing eventual the capital So the around if end you separate if to coming the completely with up it put the help might based is outcome? anything just of sizing where can in on and and regardless through that deal goes and sits us your just has outcome context thoughts Or

it's Eric. Ken,

to. us which Investment first And or then we uses and the part the had we've in possibility that and we transaction. than larger towards quarters, capital Services that's of expect, Remember prepared consider buyback two adjustments over done. you my guided next And remarks, in current the is would to our as in that partly including factor expect the downward effectively the the of Brothers what would price trended quarter, Brown anticipated. couple that have we had any said I XX% we was capital purchase of do we things. CETX that As We levels, at that mark discussion look

those So mix factors, we're think components. are billion. I We now $X but pleased. a proceed And the quite it's can with of

planning our we're targets an XX% shareholders is if said, do Ron deal admittedly appropriate price the to it's than what which medium-term next As year earnings a quarter-by-quarter-by-quarter, are, on returning capacity of more that's comfortably the at adjusted still time. to at availed us and

bearing on just you're here, in relative decline general then I mix ending denominator around And meaningful to you'd capital, traject outlook where and thoughts Thanks. just a side your interest you from us guess here, on and expect color deposit on of the can deposits flows? just little how both to Okay. non-interest give pretty your bearing

our deposit you're industry. of in trends some the be probably what Yes, think in seeing will line I with

-- deposits reports, if I both and begun at institutions, we've think we're look rotation quarter-over-quarter, that adjusted within if down the at you to X%, that certainly see and other this look of year-on-year zone out currency for translation. of about you Fed quarter,

over going my that some have this depending play we guidance, it, series the I last to think give say you I the a can what seen year factors factors vary have but is how is out. to that it's and way impacted of on

So you dollar appreciation. U.S. have

are deposits non-dollar -- a a come result. have you down So as

lower are the for similarly custody coming means with markets hold have that AUC/As and We investors, equity which amounts. retail that institutions, down falling we cash

and so of rising environment here of part where rates we at the And somewhat independently actually are tightening. deposits with affecting quantitative what's happening is

as rising the give expected. I or rates play are because well, I five so as four seeing more than are at and a kind here is which background tightening we Now you there think quantitative factors effects of that of

in to I the fourth expect as forward, outflows some we think continue look we quarter. deposit

quarter. to that we in clients one do can be things particular, reasons doing why into we this expect non-interest And both we're and quarter. maintain, with for third But rates think, we have about We those offerings And guide. we U.S. seeing begin NII usual range are we clients a out U.S., factored outcomes. the and difference expected. higher a full flow the somewhat We're and of the with In them. saw carefully seeing rates, betas we wider the to expected is our earn. as range of one expect than I in the price in we're then have of those what what you the We're think seeing our some because rise the and to internationally. healthy guide NII bearing of some, But than there's less is

Sometimes base it's sometimes it's account, deposits. accounts with special the

you in the that cash to the business, balance set place the that on this it's we're If sheet. of is remember, some deposit is to there's business And the with. we've whether historically other put balance thing clients to that product then whether deposits businesses, our repo it's initiatives right GA, of feeding the a our flows offerings other cash support pleased whole of in have

to balance that sheet comfortable much area, of so deposits levels And So part in that particularly rises bit important think particularly of And we're but those come. also helpful. rate our we're to given well. in foreign some these with, this NII more as deposit But find I of rate what are some forecasts. is to are good there's with keep I those going international, familiar outflows. a is quite these continues U.S. on with of And is rise, the that mind even

Thanks, Eric.

you. Thank

Next, Alex Goldman we'll Blostein with go Sachs. to

open. is Your line

volatile. Good asset Eric. capital State strategy. Hi, hoping deals, Ron bit services appetite speak go broadly was space? guys. BBH not it's management space little could Obviously, pretty for does more the macro your and a morning, through, any what's conditions we I allocation in whether other Street's around If are or

as that'll as curious sure the be the go deals? how which the that, to, thinking other of do go will of And we I'm the need given leverage buybacks, you and might you top you well. or But to target CETX down about tradeoff end the if buffer buyback sort between upper on that about thinking path more with conditions? sort or macro of run then of So of accelerating should uncertain impact you your to a

which completed this lot was a being a It's area, in a a in. own about not market set next which M&A? and we onboardings begin BBH adding major that just this development Alpha does think bolster that about lead a geographies our consolidate it's a got year year, by us we're we've to by we global think have distinctive, that, to but grow. servicing mean Yes, Having particular our Alex, said early attractive is I it on like proposition, how what shopping There's And is geography, continues not why believe clients. lot we don't to will unique to and that led of in all on on of the opportunity new to basis. really even the a organic make we the the proposition strategy list of broader here. I just some

see buybacks? this with makes to we always looking how we're burning go money's pocket. hole in may to marketplace doesn't think So not And about the Eric, to talk the want if immediately the you and out a something sense, like in work, to just back something there's going we are but if it's our come else. context of that

investors I'd $X And equity would that. the add expected to and bulk shareholders. I our Yes. if doesn't of the back our deserved that go raised that I That's them. we think Alex, We think excess and we're deal from that expect to we deliver that conscious almost and capital on certainly needs diluted proceed of billion quite

range. end the portfolio I said think lot in to investment in economic down of the a go even and our the willing this felt of environment when year to below end the capital lower the benign we had XX% I terms and and to earlier be when more XX% had OCI might risk of attenuated simplified that we lower ratios,

is being it. much But pushes us of hand, more change some and XX% I to uncertainties, need And one for the we're the hand, think of the a in might to with in net middle they economic extent, the which comfortable on time there. I the quite now the -- have current environment capital time. the that portfolio, That investment think that the that is, buffer think that over XX% expectation reduced there’s for I in is we the other much operating operate to middle more given now, on volatility range for reduces, our the somewhere expect we the range. economic other direction. in But towards volatility the

side very complex. That's My tend Alpha things, helpful. mandates, side, are the a of more a you sizable little the lot bit to question obviously business them maybe pipeline guys you. have of a Great, follow-up around be of servicing which thank installations. on And

of will on over the to how through sort come of going You you of call the that given complexity last XX of think on contextualize it, kind those XX incremental the revenue that's the curious us of talked to to installations would to months? need I'm next come any cadence or But I sort expenses side. just with investments how

Alex start I'll the Eric the talk and through pattern. on Yes, investments can you

ongoing there On being some and budget. but actually as the been development, our completed well that which it's is of I some completed which as earlier, medium-term has of investments, part all is development, plan this our year, year, mentioned as next

will the this. should us of that us out And much do in is you nothing behind the ordinary end. development expect or be year behind at to fact, there's of So

new mandates, client, expect, complex in just would where you particular the available more their developing partners us some but base. features more functionality, as it's to will to trillion, not larger, and be Alpha we're client with broadly development cases, that X.X the Within which the

a to onboard able that investment and being to able we because to client, result be important offering. they'll are things use So broaden get right, good dollars, just the of but to are not our done these in think

begin then, teams. well And to need plan add we I'd onboarding and Alex, are up set Those that certainly underway. to

you up headcount quarter. this saw And tick so

lower For purposely. cost and in some controlled. our hubs example, expenses was well markets headcount though were The of the

our the as medium-term the all deals the that that. we the as together some doing when the environment on come to as expense traditional of is view continue across the for and to to But advance financial in expense lift our given of That that on recognition within need initiatives, margins mix this a the as well needs put expenses deliver and franchise, the Ron revenue said, be right direction, our getting our come of the navigating next both year. the comes within to on. January we're we're both all that advance revenue is in be we're and as to through targets. to And and be of guidance guidance. from to Alpha Alpha revenue, in So installation has productivity and and have onboarding I expense some It'll commitments. get collectively our think, within we drive of But

both. Great. Thank you

Thank you.

with UBS. Hawken Brennan to go we'll Next,

Your line is open.

Thanks approvals It regulatory unusual taking BBH. be to and like to morning, getting the the seems ask Good within I'd on Ron company. approval for Eric. somewhat the questions. before

set there's made the renegotiating. the to So that price why guys deterioration, you of you if already? or ability quarter And were adjust you you drags, is have last this that to this has happening? of that been Would customers, given loss risk talent, process further reference during Ron first said when call

Yes, the on throughout on their has the process. approvals, as BBH this this actively our brand partners Board been side involved in has

was what actual Board. have in we've don't before regulators. ongoing the modifications, that final of but 'XX. would an September we not of have there all yet through deal will largely There's this we And our the regulatory the an consultation obviously, actually and figured approval walked gotten So satisfy through announced structure be we with process because out a

until So that make and the talking it's in But decision. not needs done. entire our Board thing and total not to binary our completely we're to able it's that all obviously, to Board be see

a clients. of risk people, and In with ongoing spending to time there. that's continues. of of kind It the lot clients terms We're

the I mentioned we so base the about talk to client clients shared client think base, that half I've is anyway. before, a

makes be they'd that to I sense, can this think if see there's still a our the completed clients it part a desire completed. that of strong like on way in

we further we're So have client worried about that that we've needed obviously felt are closely. BBH We the changed I attrition. which price both people attrition do like largely further on circumstances that already side. sufficiently reduction negotiated on that monitoring we extent after to again. the to And not sides, about the And but worry

if would that. do needed Of to we raise course, we that

just for Thanks Okay. -- I'll is right second then Ron. that, maybe bit a come question And out. well,

compelling? why though strategically scaled deal. seemed this largely It so was So as a is it

it's Now deteriorated.

more and It's probably more to the it's You going be out lower said earlier is drawn initially that Ron be complicated. than planned. to accretion going

use lot the you're I complexity. management of not of as constructed. But introducing lowering a understand environment good time? and that price. operational the didn't it regulatory you're work of it, Is So through, get a legal the couldn't this this deteriorated, a approvals really good focus? use Why really just come is

And to better just so off it's walk.

management is little we bit, I'm that's what And day. It but you're lot ourselves probably a ask myself time. right. a of Brennan, every taking exactly here repeating Again,

one adds I there. be at everywhere and you to that would to the other. desire there's something I there apart is think set things. does to where what's supposedly to have compelling several it that tend geography out kinds about be or describe tactical. in a useful One maybe there footprint. we out us of or strong geography, Many be single are things. are the it is out from This there really rumored things And best its scale if of

some we talked about assets in the that technology it's past. Secondly, those like. got We've

to a which we're go. long close that that's this here We're we're here Third, we here all saying the to attractive believe that is others And people. of enough also that, we to why do to and ready recognize to why coming even quarter. we're have be and set that raised and us. to continue weighed some that to gone we yep, professionals bring not people to this to saying against than you not are on has to you equal factors that has it's and a coming this our ready But and you, got go. sometimes need better of It’s

Amen to all for color. that. Thanks the

go we'll Wolfe Chubak Next, Steven to with Research.

open. now is line Your

morning. Good Hi.

on I don't question ask NII. one why clarifying So

could cycle they've your rate the peers up to as with Some bank pricing XQ exit peak this of close hikes. indicated deposit rate begins catch just to be lag

the XQ NII not be suggesting nicely NII see above representative that year-on-year. annualized potential quarter the for peak? do to that NII up that will the noted 'XX is 'XX guidance going you You level, coming fourth Eric But be in of that

to into and our deeply a trying I it's honest. be you're little do forecasts to think that to premature I think XXXX get

deposits Let's evolve see flow and how coming quarter. this

the foreign right, see central the continue are banks bank to Let's because and -- or have tame U.S. they inflation important, to going or central to wherewithal that's the not. whether

dependent that. So upon it's all quite

I over reason think made subsequent positive is there's XXXX peak. the about that fourth my upside statements think We I see more the we NII quarterly quarter as don't quarters.

We to also tailwind may of have banks more have that we non-USD different a than inflationary those mix tend cases, a a foreign an U.S. additional foreign sheet the serious geographies areas are Bank. environments some balance if and that address to in central us in and has hike deposits. be USD and continue And that their those give

versus current growth momentum certainly want get into there's I my continuing say quarter annualized of fourth XXXX. don't view purposely. But So good to did I here.

more is NII. reasonably But come think or be we'll a I today. no quarter the what But and to good think trajectory more know we honest. see two I environment positive, to that given in on we than a there's

Eric. that, for Thanks

pressures actually expense couple some pre-tax the there year-on-year. XXX scrap the for the basis want on on year. implies you area is algorithm business? where you on to margin flexibility growth may I That's last expense my leaves, over the tea made line think what that But they're the particular an one and segment, given expense you significant you the get unpack about you and did to see Certainly, how sense I market. the declining where of reading margins have as So progress a hold much question in management that going for next the investment can to area why years. down you're But points the

answering it, growth margins start years. that we're investment three management pleased I'd by over, think the we've I in the in quite the progress call business saying made and last question actually by

in we teens into XXs. level go had if time, you got back I the think it margins,

management line. the flowed of fee market which the was through Some uptick, that

continues But Some positive offerings done revenues and the I franchises new was each franchise. what base. there standout. net managed well to team of of Cash And it have three flows, as also secured example the an those was I has think delivering strongly the the products have have new a across they've new on they as flows good. been and products, think is quite expense those launched be

And to because or a in in actually environment. so equity just flattish income that it testament fixed or the from that environment, navigated tailwind flows, they've they've kept flat I or is was think which markets environment remarkably a from how expenses markets

a I an continue need work couple continue productivity equity to what this expect of it on there expenses level, that as you If should we things. the bigger becomes at to company. think operate even focus across to markets and be should is

-- that But of we go to continue levels we're to in of fixed some asset be of pleased there markets where the get back business rebound equity equity flipside would think go, with quite you say I and at the XX% and is depending management where a that saw. we expenses higher in markets think margins, that I continue on I will the trajectory positive are to plays I if on income kind think through to financials, expect I some the generally would direction. disciplined think there margins certainly I and

for Eric. my taking Thanks questions. Helpful color,

Sure.

to go Bedell Brian Deutsche we'll Bank. Next, with

open. now is line Your

Thanks Great. questions. for my taking very much

and temporarily other and all December the X leverage say In Can BBH. within And range buyback target well? at on Can or need close you target up do billion? or XX can or that do if works X the that end range? low clean even words, Tier just quick XQ it you one above be below? to ratio that your the you have you be Just this close for deal on earlier of

Brian, it's Eric.

that I Brothers -- fully thinking not and done so months calculation part premature. transaction. quite buyback we are. think think given considering regulatory complete the We've would reduced process still Brown of as We've the a there's been uncertain to about where I this quarters opposed in the be feels of timing to able the price is this though

timing I X XX% in Y, the throughout that the committed or comfortable and started days. pleased to a regardless it $X comfortably to proceeding as we've able minimum. Ron quarter get billion. quarter that We're as whether And how out, is at than year next return we're the said with so plays to said And be more coming

of great. them them guidance, one exist you're or sort we even about you giving you an move That's sort betas of of the fairly now the you how range where course, terminal then Maybe defining for right a next can how the on like the into be talk could as it's but U.S. in of without just if just if And the a year, outlook they then deposit terms non-U.S., see versus wide of U.S. think the non-U.S.? maybe NII as in just betas. both And range? versus

cover non-US Yes, it positive both in a describe me U.S. let let and matter for this and way way me books. our because

XX% the you'd XX% it U.S. continue. to we next for betas XX% where the to to And range to in to if In it quarter pleased quarter quarter into that be given where us this up up. are as plays how and That's about but positive this banks, next from XX% were in rates. euros, expect be betas would cross quarter, We're we in the to see in uptick exactly go we think just we've to range. central XX% comfortable, and continues then from that expect it be quite the started through. quarter just last also we're territory Those inch I expect that.

in this part would little and we across well. the forth. differently And next then there. And into to we operates as tend And a than to for currencies up dollars U.S., NII The notch So quarter-over-quarter. market but fourth pound range. to betas of XX% quarter the betas the XX% forecast balance can you'll reason that in be just euros. year that rises then the dollars, XX% rate in range going; And in betas that those then prepared keep sheet be Canadian for have see in expect is into a and is sterling, range XX% the They you Aussie so are lower.

think do, there's happens. amount terminal that's you always just how I level, of some that at lagging the it

where the sheet bearing and have You play that, to XXX% to for deposits, the beta we'll and but and never balance I XX% see. will are think get you because near non-interest in you anything well comfortable or the range We're lag we NII going accordingly. some have it some XX% out

Okay. color. Thank you. That’s Thank you. great

Sure.

Mitchell we'll Seaport with Next, to go Global. Jim

Your open. line is

rates on NII and Hi. Good XXXX, but being question NIM think about morning. potentially conceptually on be or than versus you maybe more European higher XX negative thoughts positive then, apologize, big we being just picture, do or Eric, back your higher to your basis one shouldn't as to Fed I last just that? funds points want anything see than back then suggest get

the to that purposely And Eric. Remember need the it’s that why balancing, we've reasons lower we the lots way And in balance the little last on done years. because over we've changed different do deposits initiatives we actually time. sometimes on we with are our want NII we we've accretive NIM. our two, land. intraday. deposit an around tend sheet, three which but deposits some and to engaging that and shape because where reason added have balance keep focused of raise we of balance more We than done want we sheet clients I'm currencies to There want mix for to to and Jim, they a is positive. be NIMs, at NII of over

of And the I bigger is is be that bigger. think as sheet a particularly allowed is So it don't us. constraining not to balance ratio the we've part on -- the reason result, leverage

to NII actually And to NIM. as intentionality is so maximize our what opposed is,

So I think this they -- time I NIMs below are lower the were think be they'll the will the last cycle. at below play of out, highs point cycle, I be the as in think last than the NIMs you and likely that our

we're shareholders that we you that's if NII a we've forecast bottom of that's had line. what hand, earnings and earnings relative the I in and what will last calculate other focused, to NII the high that we're a more where fourth the the that On for creates new for think about to because so next print, be given cycle. contributes back quarter, you the to to And seen comes what little momentum quarter

and material Okay, as see fair any a forward material is a ETF transition, BlackRock impact do just -- you on that on the kind how of enough. revenues? much maybe And left

Our you'll I estimate guidance that points revenue is Ks And pretty outflow percentage it we the in has been consistent about fees. this. of on that and find our think XX-Qs X

changed. So that hasn't

worth begin to come out X You of saw quarter this some quarter. that this million was about that

of If AUC/A. you million And for to kind just was that worth of quarter under be fourth it'll XX $X quarter. full the get amount, about trillion

majority probably half and So the occur, we'll into to XXXX time be you and But second but and BlackRock. did disclosed closely continue and updated as with see. working previously of of just keep the XXXX will We're we'll sometime that. that on we will play it towards talked then take deconversions out about, just it,

be and area, them other We servicing pleased business do work we're existing the one evolve, them plants. we them providers which they in for to all alternative continue certainly support want diversify the quite to the with do and we with largest help the of and as their

Okay, great. Thanks.

you. Thank

with to we'll Gerard go RBC. Cassidy Next,

open. Your line now is

pricing I all? Ron. can Can talked about pressure. pressure? changed year. prepared little the And Eric, revenues past, second, us, to but Good that neutralize remarks it you has also about that number that you it Eric you was a I in at remember, Thank downward if assets custody you've of be a and see under a certain in and as I the X.X remind that, pricing of us could to amount every trillion, you wins part bit bit fee you. of wrong remind I that your pressure afternoon, indicated think think don't neutralize new needed you business

it pricing The just Because as are our continue to remember, is is a Gerard, area based. AUM let an condition of Why? that or me that headwinds industry. we start you on. pricing and work AUC/A

basis That as go fee of And saw on line aggregate we 'XX, to anything 'XX, not a XXXX, equity in that pricing that And that's them. when so come ticked expect that's to X% We're to well in markets within And clients headwinds what the today. it's that. so of it's back points different down. we down And are an servicing percentage some bubble headwinds up, up our or than that been then seeing seeing The come year. and level. well back X are expectations. managed about back

particularly we business is was to we you've actually always good and impact to little new go. already that for year another about and We as on some that for a in of seen direction some still business. that wins a year rates, think because nice I at quarter to I both the the a remarks right, want always had we new This have wins. prepared X.X nice year, positive wins, wins level, had trillion honest, net business nice trajectory put focus terms my new benchmark did I've We there quarter. fee we're The positive. to they see and In net comfortably matter I last like new be in point. your to net of year-to-date, this clear as on revenues net drive and was But expect that was strong. more AUC/A a to positive CFO, and be to out business

sales continues. our based. it been important it's both to And what offerings, accounting our continues I the close broad momentum business Alpha and find so customer and is traditional So

example, like of intended delivering to other costs the costs well data focused margin at we to And preservation. the on would than and in market to of high in words, Gerard, is underway. targeted quarter where what things is topic you or offset In that that pricing, have the places. to add to repricing on the increasing achieve launched that. a And high second of where for increasing value the or mentioned end initiative is and I cost we disproportionate areas, of we value areas are it's is that the other offset higher something

that initiative had you So talked is underway. just to time, well last we it launched. When

So in we dozens clients. were of the

conversations in number. we're Now with triple digit

too. progress pleased we're with So that

conversation And has why of this take or well has it been clients say, should increases, price likes but place? to nobody the understood, I received understanding

understood think Gerard. I word, is Yes, the right

on. I these They think see institutions what's sophisticated themselves. are that going

understood. I think it's been most So for the part

points your as so rate your Very remind are revenues. therefore, customers under can Eric, to us obviously, priced products, good. then, under meaning you And value under when it assets custody and a up, goes basis paying percentage point, up assets on affects custody? And of follow variable the management or the what down,

transactional transactions, XX%, some activity then relatively fees. for or so Yes, it's this tend and funds of saw trades, pricing across transactions, semi you based thumb and a the volumes, good move different and last base, DTCC but XX% And assets down with on derivatives, transfers, be flat are sometimes or fixed to a of up we bit actually segments There's XX%, under rule tends be mix forth is the the so geographies, custody wire market. of custody number a quarter. come XX% of down another XX% to across fixed,

thank Gentlemen, you.

Thank you.

Okay.

Mike go Brown KBW. Next, we'll to with

now is line open. Your

I been in Good while clearly my resolution performed could we on BBH, for Thanks that moving afternoon. a I acquisition. not gotten it's Hi. a on up we've update questions. and guess with since volatile how that environment the forward end a year-to-date. taking financial it's suppose business the this a And have possibility there's

is how performing, here has think we those as company how the you models of can about our share year-to-date? with aligned anything and kind performed BBH So on getting

And in it's back to seen can take monthly, September, think a case, year -- expect shared what performance custodian. of you've Yes, We're and base quarterly. you business but we’re I obviously we book right. some go had management oriented monitoring that of materials closely; asset the that as some you -- the should our business, an extrapolate Mike the ago, could of you

partially benchmark. or that as fees, they what at because say markets. our of programs And equity uptick in on You their in kind the sharp the offset NII services downdraft an run which cash, rates, their a see mix boost of plus NII some fee servicing that find we've bit book can even I'd FX think in of business. with a peers for you'd seen, of clients I And bond is look some of there's and then you'd

ours what think other it's you've custodians to are parallel I and So seen. large

we conscious earlier, you with from to at this And and we a it's about expect would talked considering. perspectives, in something what performing point. different as need worth so that line it's we think we're this But about couple but

last think Okay, one Eric. the impact losses on color, XX the the back just capital could cleanup how think for about unrealized how we me. next call understood. or about that one that ratios Thanks portfolio ratio, for should it that the Maybe period? time to as How AFS we your over months over will creep capital XX

actually included our the buyback provided part to was now. it forecasting in fourth related capital next is return intentions we some and year. our capital the that And it for but only quarter, also estimates of of for Yes, not

accretion million quarter to it, mature. reversal as little or the to accreting that that's the There bonds the capital worth just be $XX the tends I that's accretion. lumpiness the mark back a was of of think start so this of and but

provide shareholders, tailwind that'll to some with shareholders. did be the part certainly And and we'll to as just back builder in, accretion right, it we can opportunity that which then of that well. like so return does earnings share factor capital capital because an And of amount create modest ratios,

my for taking you Okay. Thank questions.

Thank you.

Mike Wells to with go we'll Fargo Next, Securities. Mayo

is line open. now Your

Hi.

XX you expect maybe the you'll in to that clarify, I the extra that either won't deal correctly? they'll proceeding $X with or BBH next you billion to interpreting Just and be that weeks, be buyback. proceed should an so Am say we

by the What or this to we whether of proceed from you on we've end forward that said, decision is to forward. proceed quarter, should Mike, what away will have take a not

what Board a on On authorization after for we'll a first, authorization. the intending we're further we buybacks that buyback, communicate buyback need and

Okay. just topic. this the know walk the and of that that's been why was call I away just question not And first

you change wondering, unique mindset But to mergers? you pursue it put like that, something make thought about to sure the larger? gets roughly is you the general. flipside. of lot Is take it's Now scrutiny permanent I'm wondering, does of I'm to I XX% as just years can and Fed other the what, box XX as can't a out I easy deal? talk this almost trying We I'm this. strategic Are can't when in figure the issue either de not that real get just worked just considered change. of know deal it broader it'd this invested me this it's statements into particulars And any all the regulators? G-SIBs [indiscernible] extra time mergers Let you've the size? resources right? generally. and to like to at relates I'm your XXx or to it know And When at minimis, penalty ago, a any XXx be anymore? like just you just But through Or

some about personnel were change. Yes, agencies, in in worse come Mike, the some deal timing what kind a of you of regulatory have to at going think retrospect because that if through our say would of I is this probably the announcement time, couldn't many them extent

that situation? very some things The change is it's change regulatory or cases, of is not. In So in did philosophy. think be don't beyond know. will question that your to significant like itself a in Whether down. think I change anything has I'd the not, from But philosophy slowed driven permitted I answer nub no. to the answer

we've the to we September deal to is stated strategically back last the all that like feel of going compelling. year, For reasons

going And through, very our we of all talk longer sympathy it to that. that's we're that which want in, work conversations about a way abstract a don't what for we're that I It's transaction it means the regulator. there's does something et our to terms I for this think beyond to it's cognizant something is position? mean our shareholders, about In for it’s in of subset. way term, and something that's our our work with the situation some that that cetera. about Again, certainly all not primary have BBH the But means through deal. what regulators, but And think what clients, we

to of help on follow this, is Or up it simply there can last then the based And control regulators? the is this the anything this outcome that do you analysis by at on time?

to modifications to about the -- navigate Well, what concern transaction concern. we required and to through meet is believe to modifications regulatory or we've meant talked regulatory or the either do to navigate are

that's So what we're now. to up

Thank right. all you. Okay,

Next, with we'll Graseck Morgan go to Betsy Stanley.

now Your line open. is

Hi.

If would you've to follow ups. quick over works. a in had anything that of answer couple a there Just just you for past merger M&A any I One, is deal? I understand know sure the some few charges I'm charges, guessing no, integration want away Was that make quarters. the walk be I of BBH that how refunded the is but for?

have and Betsy, cetera, we that not charges the those incurred. that et incurred of of what service staffing there continued not are we've are some our some through No, closing, the are done be deal But of those -- about it’s on the some would avoided there are is have those Eric. costs advisory fees, providers. played and primarily -- also obviously then

of the So expenses. kind those are base level

-- And then

and large. There's by no those tail on

Right.

possible it how for much or BBH those to have And for --? Okay. or were of been size is

this earlier they work. primarily Since year, been transaction the BBH around have

ins dollar Q-on-Q. see performance strengthening outs strong quarters AUC/A, dollar it expenses, And bit AUM benefit volumes. and very to of little a revenues, the Okay. the the I on here, we've on deck two of drag the then had in a the drag on

You've volatility got one. trading the from some benefit and

your get sense and you dollar to has wanted how of do how strengthening That the impacted just managing? you about think all-in generally Thanks. So was just speaking.

also all also an assets tends foreign almost reduces Betsy, jurisdictions. impact then on balance a balance dollar an all But neutral it's have symmetric in all where EBIT in effect Eric. similar so terms currencies say as the Yes. the has U.S. reduces that on that is downwards almost sheet to in Dollar and have currencies the jurisdictions appreciates, and are And time, say in strengthening but do sheet. What are but on sheet, relatively expenses, and I those the thus it’s you the and of as I'd and P&L. describe not to terms. effect balance revenues, revalued as the P&L you I'll And neutral. our it deposits EBIT

you some so And symmetry. have

that hedging on it reporting we that's call large, makes a in and all a roughly to by what we So to needs do manner. neutral, which more it because it any community comfortable it's don't I'll our you the in through Except we particular manage of that find complicated, but happen. is why just little it, investment can

is to have is growth And when that the footprint, you today diversification that think the about the non-U.S. just higher, for or that you in important continue get exposure from feel strategically effort footprint do scale a outlook wondering? to the you and international the markets perspective

Betsy, it’s Ron.

Let me I a got say that. would good that we've mix now. geographic take

like minimum And can not it's which think extent scale virtually we'd so we're more in the to there, our efficient about that. of not scale. like we the all to way it achieve But we locations, at

there, little non-U.S. the on U.S. to circumstances, we general, in markets If have we'd think than get continued in all bit I balance. that. not most like could markets faster grow a more

Got it. Thank you.

JPMorgan. Juneja go to we'll with Vivek Next,

line Your open. is now

Thanks.

billion elimination could deal, buy BBH, of as billion, it or dead you pretty a given percentage. the you back be a a value that's substantial talk buying horse, X.X stock, is other way, thing? going piece or the buying when that you beat Would you had but about full still some to of to $X flip entity part only a it it was you of the is intended of the there Sorry back And deal announced just to available it? whole a

And outlines, business to. of that Brown perimeter That's Brothers business. that's transact. we're one the with really hasn't the services attracted of it’s deal their Vivek, like Eric. investment to changed. around Kind It's the they'd the that the

been real there. not any change So there's

buying Yes. the And never Vivek, we business. whole were

the What they're Could complexity regulatory of different to given attractive the difficult sort your a investment and geographies whole if of, to I buy piece it meant it's are business. since more you geographies, own? services more replicate on was

I down itself to business smaller Then could that which Vivek. explore, that's we attraction what exit not not to now. have that suppose clear like accomplishes goes have And more even the accomplish, even Brown something already they'd is than trying the bit they a so. Yes, is Brothers

I Ron, want to to back go a topic. different

it You understood discussions your around clients. understood understood not and having or the and you operative open I agreeing but the interpret increase other it to you're as said word price mentioned and it with to with understood providers? Should about is necessarily shopping

pressure. the say, not would really client. to thing. our Vivek, said, to a I value added been most across are the like one so of highly targeted, So board where X% under two, delivered costs high again, this where has it's the We've we've an kind tied there's there's And it

But some for on would the cases fact far and more should understood talk this. more you There's getting right not, asking think I I in as than it you're interpret certainly in than say understand cases -- number, that is not, et we're agreement we so And around it. why cetera.

Great. you. Thank

you. Thank

This concludes additional the question-and-answer I'll remarks. to today's turn or call any for now over back session. Ron O’Hanley closing

you, thank for to of the all thanks you on operator us joining and Well, call.

please Ladies that you you and and gentlemen, ask this lines. concludes today. thank your conference participation call We for for your disconnect your