State Street (STT) 20 Jan 222022 Q4 Earnings call transcript

Good morning and welcome to State Street Corporation’s Fourth Quarter and Full Year 2022 Earnings Conference Call and Webcast. Today’s discussion is being broadcasted 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 on The

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

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

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

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

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

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

it turn me over to Ron. let Now,

financial equity financial by year serve. fourth markets the in for for impacted financial Thank you Despite of unpredictable the the rebound Ilene people and income market Both in fixed global was the war quarter, worst many an everyone. good investors and crisis. was a and and markets morning strength, meaningful since world’s Ukraine the XXXX XXXX year uncertainty the contributed volatility they heightened remain bulk increased as of global The macroeconomic wage markets today. which market decline dollar global of created higher headwinds price year-over-year several interest impacting factors to by fears and a global as and recession rates, well U.S. flows. inflations, economic chains, in supply dramatically including these

difficult Street macro well. Despite conditions, performed these State

progress result, As a towards in medium term XXXX we continued achieving to targets. our

full XXXX a strategy our State proposition, yet and of innovation, of by Our the our underpinned Street’s results which year were value distinct net servicing services, new power XQ on by focus diversified continue year and as durable clients and of relentless all demonstrated resonate to products strong, organic another by wins. with driven

in XXXX. goals for our highlights a higher and deal positive of servicing return total In towards what inflationary X.X face the We the of and strategic to our XXXX, year we our XXXX. operating margin continue environment operating shows As execute a in strong great investor Slide presentation expansion, agenda, was we to full again business achieved and a a pretax very and we year strategic against progress in delivered the we of revenue our our left compared leverage, total made drove capabilities on our X achieving growth, equity asset on delivered continued right bottom the including wins, new can slide. as you the of momentum, of pressures of and total demonstrated investment and can see slide. continued resiliency trillion on as ongoing businesses, in in business the discipline our and you expense see challenging the

management to strategy businesses income revenue deposit our for XXXX. interest rates combined balance businesses as headwinds servicing weaker higher in fee our materially average higher with created investment sheet XXXX, levels compared market asset net While our produced and interest and

the these of of and our trading investments businesses exchange front foreign model. office desired demonstrating our revenue produced businesses data software addition, growth, services manifesting the and and double-digit our fee in diversification In year-over-year business results

expanded by this installation Advisors another X.X end. performance XX was new AUC/A was back new of across the backlog X end quarter trillion, solid reported existing based asset ETF and alpha quarter AUC/A supported fourth of two totaled sales wins relationships, Helped quarter momentum segments. office our servicing broad mandates and I client quarter driven XXX by quarter Business wins highlights. with billion under offerings. which trillion at our added review Slide will alpha to quarter seven X.X management At We in amounting of additional fourth Global our presentation, good to assets by middle in Turning inflows. the

supported or economic interest strategy. to total was our of global year fourth fourth items. political by ago, X% by challenging lower driven share Turning our notable the XXXX year-over-year management balance a we financial to as focused resumption Even or execution very was was year-over-year in the the primarily highest common X% growth NII relative environment deposit positioning quarter our sheet year-over-year up on repurchases disruptions, offset shareholders. the X.XX higher increasing a marked returning revenue rates excluding quarter year items, X.XX XQ record, EPS capital in market notable total excluding revenue The XX% fourth our by the quarter performance, result by was and which and higher EPS on for increased year-over-year to as plus effective fee X% of strong in

total focus remain in with expense notable fourth flat ongoing or As the focused down meaningfully productivity, the invested our and quarter dollar. items, our was simplification stronger year-over-year on and we by discipline and in operational on supported people expenses relentless achieved X% by U.S. excluding This we part automation. year-over-year, business, in

having resumed to repurchases State our capital increase quarter, of X.X capital, ratio common back a share earlier our shareholders the Recognizing return stock. Turning XX.X% balance end. and our fourth and common strong buying billion to we stock total a to increased dividend a importance at announced year sheet CETX our to of XXXX, in in Street's share per already capital the of XX%

and to factors. it earnings common in repurchases, to conditions other stock of form share is to market the intention return For XXXX, and up our XXX% of dividends subject

a do prudent to capital and the maintaining We common will us has of mix, ratios expect our sheet to target stock our end through while XXXX. announced purchase this new within we Board of balance Accordingly, of as X.X program up authorized strategy, business enable billion range. so our Directors earnings morning, momentum

my pleased am we remarks, expansion of pretax the higher on made I towards year row to our have the conclude goals. a margin reporting equity, be and opening progress return third in financial To demonstrates successful achieving which

discuss through quarter XXXX. priorities Now, take let Eric, me strategic before the for to our will hand the more who call over in I detail you

good you, everyone. Ron Thank and morning

outlined let of I the discuss items the Slide some review Before briefly notable of recognized in on our X. fourth begin and my results, XXXX quarter full me year quarter we

restructuring related expenses transaction, Brown the and Investor acquisition recognize including no costs, Brothers which we are down wind pursuing. First, we longer to acquisition Services

consisting investment employee as streamline of continue eliminate severance recognize XX charge services to structure. approximately million middle we senior and related to we repositioning XX to million our of business Second, largely costs our manager XXX an of organizational positions,

We million in our also shrink the occupancy us charge recognized of XX help occupancy costs. quarter to further

expect We run rate of million. generate actions total $XXX savings roughly to a these

the settlement the quarter FX XX resolution, Lastly, litigation recognize revenue line. we from reflected the benefit is GAAP the which benchmark of trading proceeds services FX in million related XXXX a in to

pretax, million together, of Taken $XX share. items notable $X.XX or we recognize a

quarter of year Now, Slide begin and turning full XXXX my fourth our results. review I'll both XXXX to X,

us As I'll the with XX%, durability revenue excluding robust which offset than increased NII and despite X% year-over-year, discussing environment, lower finish allowed operating can in quarter dynamic the of by of as year-over-year and of for diversity business X% challenging on revenue the results. Total you growth the time see today's table, later model fourth the our fee spend solid or left to items, the top notable was presentation. more more quarter

We demonstrate margin also as four leverage is positive percentage this percentage up the more prudent ROE year-on-year, a up management, to expense and in more deliver pretax continued quarter well. point enabled quarter points to while operating than is us which than

pretax slide, we pleased year operating On the side performance. we in improvement challenging margin. the delivered XXXX that a again XXXX percentage nearly in our Notwithstanding am for we I year, of right point quite leverage operating full environment the saw positive show and the

been it ROE mentioned, years three expansion consecutive Ron margin of has As improvement. and

markets Slide the both X% translation, on but levels translation. by of result by currency income quarter market to of Quarter-on-quarter installations. globally, was driven end offset largely the decrease partially end basis, XX% AUC/A impact positive a fixed of negative Year-on-year AUC/A a market year-on-year equity previously period increased currency transition, period net impact and client levels and across the end by business during increased equity in and Turning lower we X, the decrease as continued new sequentially. disclosed saw higher AUC/A a quarter

business. end year-on-year currency was market Global increased play and AUM decline end X% the largely translation, AUM by we some lower which driven impact period decreased SPDR The of cash in net dynamics in billion translation, and was by saw Period net institutional At ETF negative similar out. offset partially XX% outflows, and levels, year-on-year ETF end offset inflows, due Advisors, sequentially. the primarily Quarter-on-quarter, our of the by outflows. inflows XX partially of increase levels, positive AUM currency higher net market quarter to net was impact in

servicing Slide page, XX% partially by driven X, pricing the adjustments of quarter new offset flows, client lower negative year-on-year, fees Turning impact by business. average normal to largely currency headwinds, the on you'll the lower activity and down levels, of see and market fourth left total side translation, net

total the result servicing of flows. a impact were fees were currency servicing the Sequentially, fees the down X%, activity XX% of as year-on-year. down client Excluding adjustments and primarily translation,

in this some sales good business saw again which bottom highlights the we've momentum On panel of we quarter. the the included indicators page, performance

but solid fourth of across regions, value As portion, based existing $X.X by with strong won a alpha trillion, client to At the quarter representing AUC/A clients. healthy you yet a XXX see, be expanding unique which reflects AUC/A the proposition and can segments in relationships alpha with again quarter-end wins totaled billion traditional strategy. our including totaled wins installed broad driven

percentage XXX market management about Slide levels quarter income fees were management reflecting represented currency market fourth X, to translation, down to fees primarily and and fixed down year-on-year, XX% were negative point which million Quarter-on-quarter headwinds. X%, equity headwind. average of impact two due the lower largely Turning

by net continued the can right saw momentum. of backdrop and on see low gains In uncertain notwithstanding as ETFs business year momentum macroeconomic cost and strong year, we evidenced with you income the the share the market in U.S. bottom SPDR continued our in equity fixed full the slide, franchise the in well inflows and segments. As solid our positioned remains difficult

Institutional though of even first business, billion, a billion funds and XXXX, year, our basis continued franchise date cash half defined XX net full there's market in with share still in reversed outflows products. we fourth market Index of franchise, In inflows gained quarter. points XX our in contribution in money by of offset momentum institutional industry wide XX inflows in inflows the In target including

of quarter FX On strength XX, growth year trading engines Relative and software XX%, lower to year-on-year teens services a partially year. you period FX up offset reflecting primarily and Slide FX FX with by a see ago, double-digit the fourth both diverse our the difficult ex-notables higher in revenue was spreads up services trading volumes. revenue processing

FX spreads ex-notables was due up down by global revenue. of lower dollar. the Our muted U.S. with which pressure and Securities monetize was revenues activity risk special and activity sharp X% able performance on downward the environment direct trading franchise driven were Sequentially X%, to more to mainly clients. quarter in the year-on-year. mainly reflecting market higher liquid revenue less was FX to X%, moves indirect effectively in by revenues was fourth services finance year-end Sequentially up due

year-on-year Lending and the quarter due XX% CRD, office product software were year-on-year fees were fees with quarter-on-quarter. changes quarter software higher data sequentially, primarily primarily up XX% driven front flat down year-on-year, sequentially. were which in XX% XX% by associated and revenues for and XX% mix up and Fourth processing to and

XX flattish up revenue the negative Finally, in was other to due fourth market XX of fee million quarter-on-quarter, quarter related adjustments. the absence largely of million year-on-year and

new see on-premise primarily client XX, environment. Slide implementations multiple cloud renewals our in platform to panel SaaS on and continued data associated revenue revenue driven to client year-on-year, left the software based conversions and XX% enabled quarter front and you'll fourth Moving with growth by increased office software

the Turning front to in and asset this Alpha and asset bookings in the well future well was on XX again quarter some giving private business. across of us as revenue, and once fixed right the of panel, diversified confidence business of classes, wealth segments, office the owners, including metrics client backlog income. million healthy, in particularly office as across Front pipeline remains the growth markets new

owner As of the report for are Alpha, Alpha asset to to this new client we mandate pleased two and segments. quarter insurance wins in

increased XX% and increase partially NII higher interest Slide short due balance by sheet long fourth and positioning, million. Now largely market XX, proactive term year-on-year XXX year-on-year XX% turning deposits. lower The to rates quarter and to offset sequentially to was

balance We scale and franchise, rates. of quality client portfolio a driven consciously through well-constructed high Sequentially, by both primarily to have the performance higher a foreign including working deposits, NII rising global our loan in U.S. global that from increase repo and configured sheet investment sheet. rates was sponsored market balance and was benefit

of fourth during as deposit average some new currency The quarter. sheet was On due show deposit deposit slide, X% U.S. the our quarter. X% levels this we the assets the fourth primarily and initiatives increased well right as to beta, Year-on-year about balance impacts. translation client’s sequentially, average XX% excluding during to XX% declined

XX% the Foreign range deposit the quarter currency. to depending XX% betas for on much lower in were

an saw was be help deposits in of bearing X% loan and by offset reduction quality investment than portfolio. support more selective advantage. average quarter high interest non-interest will continues bearing accretive deposits Our sequentially. to international expansion the sequential up Total client higher NII of which We that were deposits footprint growth

once currency flat year-on-year in Turning quarter for tough XX, notable the up Slide approximately light and proactively fee again expenses environment a or of revenue X% managed items excluding were fourth translation. adjusted

guidance We expense have savings near quarter of and which million generated growth in efforts for XX year-on-year on achieving million year our or for pretax and which partially and operations top continued expansion, while drive of full been carefully headwinds XXX including us company, wage productivity parts X% and XXXX, the the strategic to approximately leverage in approximately savings executing end our optimization enabled savings markets, operating investments offsetting continued continued of margin to private inflation the positive X%. These alpha, automation. technology, optimization

partially in wage compensation inflation down of On line line impact a benefits and X%, by hubs invested X% associated were markets, as we our with of such sourced functions. private higher growth with operations in associated lower Headcount headcount. talent, to There increases as technology a and XQ catch also added was as the higher some the primarily up was incentive areas portion and headcount translation by global to increase personnel X% salary post offset in basis hiring alpha employee and certain support compared currency increased XXXX compensation nearly COVID.

increase to in modestly more We XXXX. expect headcount

optimization, sub were data expenses continued lower professional levels. related Transaction and due partially to investments. systems which of technology by was primarily benefits lease X%, data our higher And travel partially associated and was XX transaction were episodic back estate from costs fees was down efforts by higher offset XX% down mainly expenses an Information up costs, million. processing infrastructure and the X% to communications market XX%, lower centers insourcing broker real our vendor approximately costs. reflecting sale custody pricing reflecting to market equity and Occupancy largely fees up with and other due worth offset

of capital the slide on side left the on trends X Tier our we XX, the our right followed of leverage show and slide. of ratios Slide by to CETX Moving the the evolution

can driven quarter. saw range XXth we specific anticipate it's unusually in our into would worth RWA quarter similar going and see, quarter. quarter XX.X% we billion, strong the businesses operating resumption environment basis increased share points the low respect worth primarily noting currency our that the lower of partially end, repurchases to you capital by amount to this about by $XX requirements. with navigate levels $XX normalization offset quarter-on-quarter, factors. RWA's, CETX As first of to in driven ratio With billion some of of relative RWA, episodically by largely At the a We standardized continue RWA XX markets,

Our was of mainly ratio Tier quarter of quarter-on-quarter, down points at X XX repurchases quarter. end, due to basis the X% fourth resumption leverage share in

the were and billion quarter, a million to return in common of $X.X dividends. X.X pleased share common We repurchases billion quite to of consisting in XXX shareholders stock

Board XXXX. a up of this authorized announced of through repurchase that of earlier, new morning And billion has program the to common X.X Lastly, mentioned as we pace back our we other stock in Ron Directors our dependent. conditions for this get as both execute market Tier said target X factors at and to I and to CETX buyback leverage and expect December, ranges end

XX, which let provide well some both significant thoughts as year potential for Slide on quarter, outlook me our the as macro in. have the first Turning cover full the given operating XXXX of we're variability environment

which growth a In terms points to as about point X basis. to equity today, percentage of point XXXX, our we markets in on current equity in we macro being full year-on-year expectations, markets some stand expect global year here equates average global down

the for forward continuously. outlook would aligned which is Our note XXXX with moving curve, rate largely I

However, X.XX the and X.X rates peak of at reach at of the Bank England. to funds, expect Fed we X% currently per ECB,

than As for major expect saw than dollar currency U.S. currencies on modestly translation, stronger average, we less the to be we but the year. what last

will fee flattish to translations As and other total revenue, laid and a currently the expenses. year revenue due be we factors fees to both ex-notable on modest items In expect management or likely up fees just with of NII. down like revenues X% of macro that out, less currency I servicing and bit, X.X fees, such, to impact flat reclassification a light have point full largely

ex-notable and first be items Regarding fee fees our currently impacts business that expect volatility XXXX, X% down market X% down X% to be expected X% we foreign to management expect revenue up exchange a normalization of quarter trading given be on quarter to basis, servicing of to the to to X%. with fees sequential X% some

And in the This XXXX. NII After to is up We and XXXX, after XXXX flattish. quarter XX% hikes mix the XXXX, levels. slide and remainder in the dependent X% quarter XXXX of very to fourth a first with of on to up of year rate of the be NII about be expect of expect significant we on XXXX. then a to expect course strong outcome we see deposit a quarterly a full of first NII, sequentially quarter basis after throughout X% step attenuation expected stabilization year-over-year XXXX

driven to investment be positive leverage. in expenses business Turning will on nominal our wage and can see still and and expenses, X% ex-notables expect the pressures a by as to continued in XXXX, the up basis X.X% you in driving walk, inflationary we while people, operating partially

full on and will a approximately see private the and variable saves year areas pressures offset inflationary automation. help X%, like we growth that markets and for also can of investments You costs walk expect further which XXXX, alpha ongoing and in

the first to on Regarding of up a XXXX, quarter expect items basis, be year-over-year expenses we X%. about ex-notable

in expansion for be XXXX. with call the XX% us target deliver goal strong to and of term a our margin This well consecutive operating EPS the and towards should for XX% our hand leverage XX%, as year shareholders. me back taxes Finally, range growth medium of would deliver to outlook fourth positive that, let advances Ron. as And

Eric. Thanks,

we an XXXX, we As uncertain enter see environment.

supply from the may inflation pace. States risks is policy Europe, at short have performance better rates slower and the and outlook are Ukraine the as its War, approaches China geopolitical, energy the The including particularly been peaked. and known world term, anticipated, it for United ceiling. an perspective, a than debt in Russia but significant economic most have developed positive rising in interest side, many the repaired, chains On proceed supply continued We

be term we innovation, as year with growth, Turning its XXXX to to another value continue our on plan towards shareholder control. clear and drive targets. strategic of ahead what to State Slide enhance and very in we progress can even We to priorities continue uncertainty of for Street us, economic further focusing deliver medium we XX, further geopolitical

and value private by improvements First, we growth markets business our alpha its Street’s enhancing in profitability further proposition leveraging and capabilities. are State targeting

As the outsource aim In in while financing, we in liquidity, our businesses. to to and research enterprise in industry, or become leading build ETFs wallet of on positions fast growing share provider At expand a we markets, leading key provider maintain our accelerating professionals. growth and as service investment we we strengths global areas in to organically the leadership of intend and a such aim where Advisors, to to efforts platform solutions number we solutions segments aim Global can as cash, and win. investment extend

past transform Second, we a our several end-to-end configurable driving simplified, must we we work years, productivity to the throughout over scalable, as way have by model. as operating out continue organization and build the increased we efficiency

client value with service lead a core of proposition. our differentiator will excellence, we As productivity become

performing higher Third, we must continue to organization. build a

We fostering culture accountability, increasing are even growth. for strengthening an skills results more and required execution thereby oriented future

first expansion, operating priority priorities achieving the our year of and is financial is and leverage, intended by and positive Our outcome supported meaning returns. three aimed another the higher margin at fourth of goals,

manage towards Street our they we will as XXXX conclude, investors distinctive in supported with people offerings, call financial achieving each priorities State as to the we now our diversified for challenging these an able essential while believe the advance on that environments, can by open and ability operator, and well being be To world's the value we I to execute proposition of questions. that serve. through partner as our goals, to all And strategic

you, Thank [Operator sir. Instructions].

Please line first Evercore. comes from ahead. Schorr from question of go Your Glenn the

a to Hi, on outlook, want I the that. question thank you much. NII like ask very I you

of rates. deposit seen quarter, tell down stable of a what to beneficiary deposit fear lot a almost side, but have the higher betas banks XXXX us You've sequentially. the I for the drop big and the we've that wanted you actually could curious for flat the and gives you confidence you attrition deposits outlook what about in and for year, thinking for I'm or curious in deposits, so on thanks? year-on-year that a runoff about been think up in XX% you're

in of us in have multiple broadly Eric. with avenues think, internal the program. we sponsor data. before, our fair $X also rate understands really of that some engagement some cycles Clients an trillion so a that's cash, interest have them We've right, clients of through of we with I deposits, for have, and And it's repo that's navigated cash. our putting Glenn, amount of their

advisers, in products State our Global in that's complex, suite some market of our Street of Some global franchise. money in our it's Link

clients And a gently an use need reasonable are it so for ability a their cash move they outlook reasonable it and for as need also that shifting an seeing They But necessary. that we're different at between that to deposits at outlet is cash. categories. price, what

So kind with few happening, line expect think more out context, see that a as continue think, that a seen of I to and rotation the noninterest-bearing of before, interest-bearing, expected been what next some in reasonable we've we we into quarters. that's to pace I for continue at or less with and

At have And in sheet. to levels. lower are the planning. cash rates but the the investment do They it's of risk-off on that engaged closer sit like as they general, especially very that cash, in at some noninterest-bearing, They some same clients the comes like obviously, some time, found their transactional, market us at And balance part pricing. cash with leave given they're environment to rates all we our flexibility. cash of some at when in

March won't is see prepare folks out. until is an quarters say year so in January see bit, It the seem flattening and engagement of little and tax a And half that won't of the then change. ongoing to couple them the in down. seasonality And But always payments a down for a in I occasionally we a of then deposits April of result, the February, we up after is have first with zone downtick. good. now can reasonably bit be be visibility it's seem to coming we as

But we'll and through So forward bulk some see year going of from deposits that -- the of into kind year. we average, to on movement. the of be expect next flattish

That's color. that appreciate I good.

have I'll would question. what Thanks. for, that? get created follow-up it it is that inventory You get paid the repo, minute you go -- you this for, will how peer-to-peer how for slides, In and my on mentioned maybe you noticed who -- so repo, love a I to is just for platform I

We we XXXX, in billion sponsored heritage think, through $XXX the, of here in And now sorry, back $XXX instead Street this our started franchise, of example. to markets franchise, which size, we how part program, do we I this was of balance I'm repo State which clearing borrowers is FX, have sheet the a corporations, repo working Venturi offering This that innovation books. go think, the at an is a as connects our the the that securities cash. one directly billion history is area. but Sure. in global sec do And across inclusive I if in I now repo we there's today of lenders or and right, is of do lending. in and actually --

to want And on it's so asset to And seem -- raise working or cash. for want what may sometimes early without of want just another selling part cash clients is who venue with. calls so is long big that they with another calls, it speak, have to securities find make when engage right. and they platform, margin booked to those A margin have the to -- we owners, securities, are

of a to do I where who's And lend other repo structure, who I someone or so a question securities. repo trade, wants natural I side actually the do with repo, on that through do bank of against well, right,

there counterparties to would one connects doing actually so in who And borrowers the we direct access another. of a that find side it what interested that that. is be lenders and Venturi does And are with on other trade,

lenders you slightly to the different rating. pricing flow-through So the force. and counterparties, then underlying different with positive is the and borrowers. get they as have actually counterparty stabilizing appealing have And the And that collateral they both sometimes both and quite

course some -- a in bit returns connect grow that's connect folks it how of it to But in our to capital in We positive. like markets, and provide but core little of are innovation So bucket early put for I'll who nutshell. the to it and during services of year, them. folks a a amount the the it's additional clients

thanks. tutorial, Great

Thank you.

from go Stanley. Morgan next question Graseck ahead. from the line of Your Please Betsy comes

morning. good Hi,

Betsy. Hi,

expenses. NII one question then Okay, on on question follow-up and a

I I you as Eric, debate attenuate, NII the I which pace the ticky-tacky, so understood follow. word wanted to NII attenuate we just are on here question sorry traject, but follow-up appreciate make was cadence, that it? over way suggesting the to should going used you a had a know ask the Just sure to but to

all we be matters, and transparent always But language as to That's you sometimes right. say. want

downward, Our NII. next quarters. downwards, X% trend a nice few got we've to for the from then the let's we'd very attenuate quarter we said step-off expect flattish first roughly point perspective fourth quarter. to be into so And is say, We it X%

a stabilization interest interest X% as And because out see about noninterest-bearing end on the rates we'll the we X% to creating out couple XXXX, to and But we and And Just but that a being of think we rough of area. year more a NII stabilized take and we year-over-year, the burned full is of deposits bearing be from rotation, then all it year get into kind there. see to up probably we've XX% in, rotation you you quarters. positive NII of headwind. of then tailwind towards for net continued a see that you net of the down a see expect

actions comes time, I that that something XQ, then the just And XXXX, right, helpful? is am or the rate. you know Thanks. be when the run to is Got immediate that $XXX the in it. I on that's of you've helpful. wanted that that that mentioned taken, over expense No, I million side, into Yes. in understand just would comes benefit

basis. about half XXXX. hit payback that in, a these we'll actions the of run million. five And comes of or on comes fiscal in then the most The let's run it quarters on of about half Roughly in something call so roughly actions is after then whatever, XXXX quarter. rate, the within builds in to next most actions, The are next rate these few quarters, these I think, sixish $XXX Yes.

So and keep in the of good taking payback actions of kind to this we kind want environment.

Yes.

doing line my forward? you, was, have on based point, feel there extent that not follow-up, for working So which or going disappoints if this that whatever more do out the you top is is what you would or your macro was final consider reason,

mean, got obviously place to XXXX. We've we've now we've pattern in I got ongoing an that had Maybe really Ron. also of execute. it's since that a Betsy, that. investments take running program we're I'll intending

every those background, So want less a we aggressive. we of keep ongoing change the to expense take to an mean, the have business. we system were would more environment certainly that, we but continued lot think I also We would also the in or more see about out about of -- gross to year. materially, if ability to investments. being in the think We investing do

to started the is So in balance go an do a which things levers. unanticipated But I there we have to south there. way, to mean extent

Thank you.

you. Thank

comes of question Your line Please from from next the Ken ahead. Usdin Jefferies. go

any of good -- was had that, just BBH billion -- forth just I post well, $X.X you we acknowledged morning. within and decision if the and you this wondering kind thoughts Thanks, capital if post-game -- plan. put

going Thank just forward? Just as we have your you. now you about about acquisitions whatever commitment think to that will how might thoughts to opposed

faster, always to and we've M&A a it strategy strategy. clear not it it's as strategy is strategy, enable move is But we've said, M&A get a mean, to help way to than by got a a was itself. anticipated. execute further Ken, to a I not very

was doesn't liked organic we change. scale strategy. comfortable BBH to very have with are have acquisition our done, would but We enhancing materially that a it

all In fact, it our doesn't strategy. change at

we like. we that where have sit, point, a this at strategy we So

committed strategy executing XXXX. to are share We delivering buyback. against. have we're There confident we be to we're that And are a some milestones on going big in that that we're therefore,

great. one, then been expected already point? BlackRock any, at deconversion, of has understand plus in revenue where much, how can of help And impact us flat the in recognized attrition you and fees, Thank are if that we what's ETF this to that process, Okay, on your the servicing you.

Yes, maybe various to in I just think answer that components. the

I there's rate. $XX just of with think you on. a end the obviously in natural in of was transition it, the that run continues a at begin them XXXX, last in schedule the closely you worked quarter, out call $XX year we've transition million XXXX That to that saw expect sort and BlackRock million

And into XXXX, XXXX, comparison basis. fees during servicing so about XXXX, you during the it'll impact think just our year-on-year and when

as there. December crossed. in forecast. continue X.X% be very build let net in always be seen then included was ahead. We two from pointer it's ours. of we've included of But they to of to last and just out we'll in last about about couple fees. And us It in you've want We the a net XX said broadly. growth it think want regulatory to positive model bit we've filing, net we about of client fees you net attrition, think new if our I sort broadly, business, as of And BlackRock, to sell. right, be of to worth with of we've we specifically, to -- got we continue percentage organic our it It's a you years, now it important with been And our have the will forecast. I'll continue said

kept also We're that for good And which last strong been quickly. business do and amount a them. continued business alternatives, providers year. in over have of we is we've them the We with new growing awarded

it will go think that will I just that part as -- just so give be we outlook of you forward. I And the

Okay, a lot. great, thanks

you. Thank

question next line Alex Blostein go ahead. of comes Your Goldman Sachs. from from Please the

the Thanks question. take XXXX. where if Ken's Hi, I the year, servicing fees. fees just you around servicing implies guess end for versus gap run point to pretty it last a Maybe guys of morning. rate on for your at you follow-up still end the to good expect wide

bit the to more provide from. a going where little just So ramp maybe is come granularity

$X.X the a But know, you still are get past. market kind rate assuming, that guys equity thing, know equity, I run billion, that seen think, is I off XX-ish-percent to, one of certainly exited growth So wider the of billion that's in $X.X-ish that's growth in X% you than I and that we've so to don't helps. global

So I'm will that you just on help that curious whether that it's horizon new gap? bridge see you something business or the else

a sounds it Yes. you're and I kind modeling like in well, if think quarters, little on of year we fees, It's a right. model to you year of obviously combination quarters which to time -- and next servicing have four the full really tend spend our factors, more full Alex, the I budget. as four then the last

think particular, adapted as We quarter see -- to in we'll that and all. and client activity, out, just appreciation with be if was XXXX, So there then will headwind fourth in positive be on and a some this neutral, you in stay of a with XXXX a not expect you new maybe clients obviously work equity that should forward, start We'll it if think a is we have like markets. touch -- tailwind. maybe in environment. We flows plays

And so year we positions. this to building as when trading, they're new be going see year investing, new -- the a time

Then So we'll out, see will it. of that business. new that we net be part if plays have

a base good in to do I area. client and then amount remember, in that areas. the but some assuming have out. kind we're of we be normal four servicing point-to-point to so of Alpha but And that's those basis growth that, growth continue we see a you But And plays traditional both always wallet our of of mine there's equity if have on And share part some through markets in. the pricing And think factored there. pipeline we'll can because headwinds, go existing positive finally, as

just the the follow-up something today? the or also some actions sort little you guys looks of month the you. both there might the to not heard whether might fixed tailwinds us maybe When help the comes strategy. RFBK what guidance, some got just here. makes so. roll-off repricing can around NII more a securities With last roll-on, be dynamic over Northern the respect Maybe a commentary frame roll lower-yielding fixed it attractive that portfolio, that's I [ph] And sense. I are all portfolio, with the the from helpful. you securities take like Alright, deposit opportunistic liqutine balance sheet or of more into [ph] reaccelerate and off to

Yes.

maturity as it it years. duration two so an portfolio has over of average describe me Let a years, follows. average and investment half five call The bit of

year. bit. you will And that a through it math, rolls move so about go on, means XX% and off around rolls of It the typical a in

so invested there's what think it's that's currencies, mix. and I in various found, across a we the invested curve,

to tend to are get quarter rolling sometimes particular have X.X% So you rolling off for rolled-off, rolled-on you tailwind that and on. between as X%, somewhere the that amounts of X.X%

and how actually the so in the been improvement factors of yields was designed what pleased that's and one And on and yield it billing we're see. both profile the that's to what's the

tailwind gentle more to float and less rates five-year stay rates continue they a European be assuming will or where are up. that So

the And we will have of we'll tailwinds so to -- be just see. one that that

to accounts a P&L. for just AOCI, instruments, -- and equity obviously little a a you might push. securities, in I already you a through NII asset have in that are you your is right. loss, treasuries, always think do. take the closer we why government-guaranteed positions number They're put agencies, of vanilla high positions we helps what that. your terms In dramatic players the action, what more about Doing the losses future. risk-weighted you if accelerate on in there's are risk-weighted -- We in buyback, benefits noticed we've the What portfolio, the through could asset-intensive think the reinvest, happens, it take I the of think doing some then -- That's could

compelling around always the just don't I we financials, of think We'll just to that's that well. and that's do. find trade evaluate particularly moving a

we as see way. guys see model some might economically. So don't that positions adjustment. can It's kind of out the But have if we specific financial compelling And either need we compelling. not benefits really particularly that you

where The significantly processes, next -- the -- I and portfolio where they've been is think we it and to another and year, are we're for and our it up going. with pleased year we've in NII continue manage we up we're numerous. this so ability past the well I to tailwind And got and line current XX% a with bodes think

I got you. thanks much. so Great,

Thank you.

Please line question Brian of Deutsche from from the Bank. comes next Bedell go ahead. Your

much think that's we XXXX, don't of Great, good by reducing you the U.S. on talked cuts rate also your interest sensitivity revenue about I net bit in morning what if higher foreign assumed foreign incremental as that just for you expect folks. then the continue think outlook, view that the little you to back here? half in which better thanks, moving can the deposit whether Eric, you you see about talk would deposit but offset to you on beta do than beta? just that dynamic And about, Do betas from had year, deposit Actually talk you outlook is can or say and a be that if

our this deposits. different do Yes, U.S. versus partly U.S. tend let it because interest-bearing betas noninterest-bearing levels, experience, prior to order. structure me in the at cycle, has The currency do foreign the versus of run in reverse cycles,

So operate because a and I'll set deposit over, industry, a bit of partly subset have for and expectations differently. been call just paid differently, client those the betas international are markets operate it, that we're total decades in the the the how how --

Aussie basis that we So be I bring U.S. XX% deposit Dollars and client next the look other as of Pound any Euros, Canadian think to and into Sterling, the look to is the the the in betas you in an think we international going at for continue when new XX% money currencies. initiative the few some -- we in quarters, that think ex range on XX% betas, XX% to we will Dollars,

gives us So we that to some and rate continue advantage of of the the take interest they're be in they're increases. think kind ability -- zone to in going to this

before expectations, rate the the If there happens I question, a a your part be forward there cut. some then in of that. could that cuts, be that's probability what curves, our with work could other U.S., cut in for that's through There's the especially December

as cash goes. they -- some forecast, in actually it to probably point kind as betas doesn't which of so the because even the rate rate at on in keep of The help you're think don't impact. intimating, clients there's and cuts think some that hand there's more going U.S. there'll NII this be conveniently if affect we'll do well. bit the be it the take year. it I I offset, cutting dramatically rates, a obviously, as NII Fed's dramatically probably late you're and with higher, offsetting the is system, with the cuts are affect deposits And

there's -- in let's So of it, range I of next the call second fair think scenarios, a amount there's year. half a of

my posted certainly to some you of we're having we those we'll as guess variability. conversation keep you. often see And going more develop there's so be scenarios this is, Brian, And with or

I a think And how just pricing pricing typically an I be about believe That's there servicing, so that And just on I seeing is or maybe for is a confirm on could maybe funds, this maybe you from whether set year offset headwind then ETFs the you by also super mix want asset you're know expense helpful. expense the if that? talk too get maybe fold you towards I to just some headwinds out in if of an then so do an update think alternatives? and offset, offset the say, you just should say, mutual versus ETFs, on growth might obviously, the you shift again margin same but

year beyond. they're experience going few us they over just five, to I in because we're and the Brian, whether expect seeing to and pricing that paid, be stable tied to has markets, they over We want years, standard years, we of into more contracts consistent our coming and going next they that. are markets last the some thinking four, folks to when and industry roll every it equity equity pay expect in typically, six the share consistent They have the know Yes, get be. to think the we're years, are been to

But a pricing relatively fees per And offset. been consistent. the and it's year headwind on in X% partial servicing so there's

lower. the economics scale when the different, us, expenses you're Brian, that Yes. not a are -- to been the that's revenues lower, I the -- ETF added are More of there's also fees conversions you're going at ETFs to of some it's what The much seeing shift, is to mean But ETFs. Ron. yes, particularly but like there's mutual lines. mutual fund typically, being funds on. high-profile And are lot

So we're you. it's not meaningful in this overall revenue giving kind of guide that

Thank great. perfect, so Yeah, much. you

you. Thank

from question next UBS. Brennan comes ahead. Please of Hawken from Your line the go

for my taking morning, questions. Good thanks

start on So to I'd like capital.

comments a sends Ron, that billion. about very M&A. wanted I buyback up the buyback $X.X message. on your clarify hear to So the But strong to encouraging is to

So range some way think and AOCI $XXX upper stable? that range going rates assume about still accretion quarterly the to does the is are it, million there million of $XXX end the of right see to you're to the if

and million P&L, it, Brennan, think comfortably a in have hedging plan about is that tailwind. buyback. continue which that. yes, then right? that we growth foreign at more the we'll And guys I RWAs, activity or apart just continue in it's through with and But $XXX to bounces in it some it be some mentioned back the you to just plans There's yes our answer a us get to just million and AOCI you and good authorization first the to gets there. into may pull to forecasted $XXX quarter, is because pace, do want exchange there's movements earnings a is RWA bit will quarter, you to support of there little us our then into Eric. lend range, so The we If their range rates. and more the has And as nice around with and clients been our normalization coming to

but market side before, if there's some fee can least also degree there? have corresponding on fee there moves impact then revenues it And the Thanks. about we maybe whether of the Okay, expense to the on revenue, or at folks impact on you update I'd not excellent. of to a think a and please us impact assume touched couple

do it Yes, let me this way.

consistent markets, we you of change been let's here to in will about it, average typically X% right, those I and increase call if will think average. in think fees, have an we've equity both relatively -- lead in as guidance servicing increase I the XX% hold a a have on

management of have. X% It's to So fees. gearing that's we to fees, equity tend kind a XX% higher markets the higher closer on management and increase in be

but moves to range average I -- think I the increase it say let’s a market percentage expense in as well. it's be cases, close a have XX% in the are bit, expenses point markets. around data, if less, in subcustodian around equity a markets, a markets and side, increase On Probably around some income depends. bit of our could But gearing a costs little -- kind towards equity it does -- fixed

we So and in that’s we point, [indiscernible] what be expense it given with it revenue growth that have a that are that's of when because the EBIT and increase outlook be actually expense pleased earnings point, have growth in you and to see part a a particular bring half particular increase together. we think all and I that could real comes the some and could expense walk ways

Excellent, for color. that thank you

Thank you.

Please question Next from Steven comes Wolfe Chubak line Search. ahead. of from the go

morning. good Hi,

you'll NII part So Eric, I indulge if have the two just guidance. me of a actually some on

saw the last cycle? that for guardrails mix, of was given you you're the is And pressures NID NIB helpful? I assumptions NII NII cuts, start provide that to tailwinds First, through XXXX, alluded beyond relatively isn't hoping abate we your outflow since XXXX, why a function you would just close beyond any the stabilizing to could some even just for -- second and reinvestment the was curious work international trough on as be remixing actually rate growing really sheet, perspective to part, balance

balling a central where variability in about banks. there's know it's what whether crystal playing we I a economic, NII, XXXX, tell got does get after then you, whether -- lot I -- to we've the got it And go we out talk well I now, happens into of lot and Alright, do it's think of to peak. a right to, what's happening

So stability. hard, scenario of a There's level you to not. scenarios see set and it's where But where are far be out you're There trying I XXXX that in forecasting it's predictions may we honest. on -- our kind to see was growth. just getting we

the that come of maybe let's good will conversation. to So a in be that middle back year, the

about $XX terms average quarter. of bearing, you noninterest billion was this noninterest-bearing on In saw

fourth $X could bounced the quarter, $XX you could billion have This It's a quarterly next -- I out X% you billion, don't it we down know, see around but quarter, meaning quarter. off rotation was have sequentially.

could You next Then -- to and on it could see $X it and that quarter. then be starts billion $X billion and so or so again into the forth.

at going amount level this think we're where So the at I we've rotation. been think of some that it's continue pace it's seen we're to roughly -- We going.

first and we just what to expect down billion, XX% starts could factored the have into $X see the use So billion anywhere to kind done to And increase half a our then into What base changes case year. between of that year, think it in that. into second is that it's slow be it you but we've of and half. the some do And to $X billion we'll next we in all could that the for NII some of modeling. continue is it $X quarter,

of like it I That's forward about talk stabilization, talking great. window in had about Eric, look you more the middle my bit And opportunity, I little that a since of did to take of defense, felt advantage the year. to to

give for at Fed into just or in just buyback ratably optimize to strong planning for the update how XXXX? executed scenario hoping I little Basel capital early your the Should bit a should insight that front-loaded the more that IV we given like you us commitment could one cadence. expect management, from effort And or Just a we was levels, early to some are be be or the more capital me speak you on be proposal least here? or to getting

discussion fair have the we All a want it's buyback. kind internally. of front-load and We Yes. to

past particularly of us front some strong quarter. saw this And loading. want start amount we You

other actually to buybacks a stabilizing basis. hand, the on quite On it's have stock the to consistent

front buyback an load to at it ratably we the good market think, at call but loading, a don't of through either have I consistency the to kind don't in year extreme, I'll it's extreme well. we're think front some to I practice the because gives, reasonable as -- So we be and want flat it, want

are of I might range think operate then kind how time. a into to is over of the middle I That's And goal up. is pace. our our get range But then love target at to the to in want what look economic range set we'd towards benign the and capital be end. to out the to range we'll that's about think end upper rules, think prepare and either they're are is maybe the that want have learn horizon run may of changes know. run year, at we comes well. I to so later lower rules, with right? more And And to worsening, as the of of other then close good you we do is conditions always to on be the the we'll insulate uses areas in don't they range Similarly, another different you I in in particularly and this some capital think Basel changes and reason III of capital, evaluate the or particularly and

the like and for horizon quite where So that. comfortable will plan think it what's think we're to go with about and you all -- the want factors on we'll in, we but I then direction

my That’s great, thanks much questions. for taking so

you. Thank

line ahead. from Your go question of Please the next comes Gerard Cassidy RBC. from

guys guys. more program? would it repurchase commentary, be afternoon loaded, on guys did the the you an front-end you in did stock as share and Good especially -- Eric, sense accelerated a follow-up consider repurchase referenced you

of repurchase There Gerard, is of the we share are in typically stock did. way that benefits accelerated is quarter, And within period. the within right, three-month the I some typically a course does program think operate the buyback accelerated that. what the such

interest that environment, to also actually of NII EPS. the rate $X.XX you a capital. add high or in benefit lose the tend You It's around interesting

be that to a roughly. tend actually found we've So ASRs the push

way market the quarter the within a available fairly return the capital more a -- And often buyback all days way typical that's so a cash in you. to we and we're trading of practice in do to as the

Very good. think course, the RWA I you you to may your which, you this to of And XX% said when you you XX%, CETX think then ratio. targeted I CETX guidance have at reach know had pointed targeted on range? XX% for XX% the any you're quarter time. this is Do to in your you above range slides, you're benefit And

to our get It of. range, some to And there's range If and it want RWAs various utilize this -- our I a that's, would Christmas. can same take will as to quickly. nomenclature. pace what a me return what little depend at to pace fully and the If the it a say limits our more move. will target you we I've at want businesses we And in areas, That's that don't on bookends a not At means. -- let way, know, not then next again, it'll be in given my that we longer. off and want capital just I forecast guys time, little to lighten don't build they think, we the wait go until, back be of might

it's down, said, hard We'd direction. driving into as we're a going we're at get to at -- and range to but a to So we'd pin execute pace. I pace range to that -- we'd buyback like it to the to like back like -- get to

you. thank appreciate Great, it,

you. Thank

next of Mike line Wells Your Securities. comes Please from go Mayo ahead. question Fargo the from

notable the about factors. And cyclical game in end with game, end quarter last markets, account And the I I Like last in the more ask, Brown yet Hi, seem XX Well XX a structural I They to quarter mutual the restructurings the of debt. Brothers. some thanks of notable to fourth I the ask wanted technical headwinds, years. is funds, like XX one strategic items around the reason on it. The all quarters. softness incredible you get items, count answers come have for post Olympics. five do the

at is improved of And I like the gone seems You've it been what you But other row. the recognize a agile front-to-back, serving at way and yourself reprocessing, ROE cost. years said one expenses, start for route that issue also more look I has when reinventing the tech. clients, maybe and straight margin a fee the couple in that fixed

and that really, expenses the like And assuming more is the So a how come after percent Brown are of down does what the take is end your you they've I'm then would what that? question, question to where compare fixed, game past, strategy broadly, to Thanks. Brothers? concrete

Yes.

on a that ourselves. going a we that creates lot need we going benefits the to simplifying I'll have simplifying the A terms on Let [indiscernible] comment of we're me having done organize made this We in we that, advantage that restructurings, back on It consistent business. can the comment there. stand our management way the with talked out to accountability middle And one, -- about that. not We've I'm changes there's year. smaller the some take right. start in of on It's restructuring. of past there's of by managers, some and structure, to in senior of number take comment

In it's shrink. tied very do take investment to It's terms of we a they lot grow, has -- it of Investment to business it. time. forward, this markets where don't benefits going over markets

fundamentally business. It's a changing the a is thing is unit like back outsourcing enterprise go So the the kind from actually overall actually more also pricing price you have kind pricing We if may of an being business. overall lowest of the show revenue that while much more one tailwind. actual, pricing not down, will, unit that me than to -- times of office,

We're the best people early new position We that marketplace. the advantage capabilities And to the are the have we have, very transition. technical of of terms in think we we very that are we by in that have, that far, take in that. positioned capabilities in the we

help wins position. we will in that, will but there's but talked that a in our delivered We've that made lot initial about beyond, it only in of and in be development that strengthen XXXX roads XXXX and

which competitors a easily see our here much susceptible more of put kind to core be up RFP. And akin capitalize business -- we're lead lead, less the being going much an of it. one right to we very we and servicing is because And stickier in now, going caught business. we can to on these that I'm respectful we wary just have it of to believe having we So on. are But edge services and instantaneous, it's end and edge an investment as a outsourcing terms game the to business,

the management investment otherwise. do, changes again, an increased kinds there. the seeing similar of desire we We're for of systematic and things business, that kinds In

Asset about allocation, of or to model, doesn't work thinking XX-XX for that. is which we decades everybody on and time. and a will it all reliance it at of the good after lead what, work literally at that lot are didn't very, very is demand guess now an area It talking

like are So We we strategically. where businesses. like our we

is environment mostly core the business If to Brothers kind XX capital see might enough requirements of going over it the in terms structure, other high, of increasing business continue is your number invest not their be are too Brown we The And business. outsourcing this to What above think will to believe are terms this XX to there. time the saying if demand really In don't want does -- will, much more business like going may it's of in business. capital technology. will this into competitors what's you that investment of of it happen, decide an there an where you be put in you do be out is requirements I enough.

it see that's we So going forward. how

And terms, expansive, rough way, of just you report was don't question, the part cost the in you. it but fixed That thank that guess. I

management, less degree you like you it's where enterprise I outsourcing, But to not instead are more servicing, manage. the you real investment model. RFPs, a asset costs mean of of brokerage a old that in price, So lowest still fixed this transition, okay, tough holistic quite have reduced certain as firm bonuses.

your are they've past, expenses costs down floor trying I just of way much you're think more? from to any come how probably the to and ballpark them there fixed is So

Mike, it's good questions. Eric. All

you to on that you when this used fund hire and in industry, of intensive, Excel first was ledger think add the it cost have variable be manual, which working actually right, We're sheets a on I the very paper next. to new then section accountants. and business, piece

to think the comes custody times, just oriented manually evolved movement are the oldest the to custody. that on sits bring literally And business, and franchise, we in, the Those means it's in nanoseconds. few the have, about most as computers business process most so the in business for the talked truth. And it automated, quite in intensive and a really cost kind that the we automated in, core a variable of business, that fixed you part actually we've but It's of of developers overnight, nature. about has cloud, and what semi-fixed plug data centers, this and types you've certain in more not that our

so has And business. become this a cost fixed more

that deployed, we And how we are dollars so how each think business will help feature we that will do that we'll and technology, fixed in need do want shape the that new about over can do we what is do add will right, we help year and manage they costs, how development retention those to bring -- time, that if to and growth. because functionality

And has fixed XX-XX. so It's it I and costs. than cost evolved. and And Where think it? semi-fixed this fixed more is semi-fixed XX-XX more is business actually of a

no manual sure areas. there products offerings to have new to to Servicing then do are we've add private, part the systems. and right we're of, They not program of we that example, those have And complicated. are the it's and more support there that's complex ongoing important business. and and in variable that find manual, the cost for add variable ways of of what's about need that us software to client third-party to so could and very quite type the streamline are coverage oneself where with the and underway. little are automate the And industry, investment areas Typically, we make still standard for one talked components, there's that for we continue is -- the to the is business, new some to avail in where doing what

you. thank Alright,

you. Thank

next Rob Research. go question ahead. comes line Your of Wildhack Autonomous Please the from from

those client strong category, area, fourth a level are you Eric, pipeline business And wins pretty good. service XXXX? out you from you do new wins specific of Hi there. coming were see the What in cohort, in called guys. And AUC/A any quarter that? like anything expecting

pipeline have remains we strong. As the said,

of target sand with that trillion new we we're to I good about XXXX. in about in I for about this year, pleased or Wins want that year this year. is wins think space we'd as that per drive growth of $X.X business. We in like I have kind did did it were year. we feel this line What think full to the and closer the trillion we've organic $X.X to the said, said we past win double

And expectation. so our -- and that's

further to more We well. as -- new We in bring think for we want or that. existing more par sell expect XXXX want deepen Obviously, and to relationships new that's we than clients. with clients

rates the year. what in think new in come with are actually rate come fee is I $X.X this business fee we that fee our rates. good in good at feel has has here both about overall year, this the wins of line The the trillion new

even will that it or fee And on-boards be accretive so to rate. the neutral as that means it

the important program. that's an that's and part of So important

In I a to past that broad-based. particularly in this third literally, across was we this terms regions, third, strong past third, mean again. think for saw of quarter, repeat broad-based We'd example, a was year it I growth segments, Asia. and it's a like been

an as well. got and have think -- I intensity America on we Europe we North

pipeline a particular So there's segment broad. particular it's one overall. But region. or one it's not fairly good not -- I'd It's say

front-to-back the compared to your only more higher And Alpha it. clients talk clients? there, traditional you then business. some back renewals mentioned or is how among if you Wondering retention middle rate the could also Got office about retention the in

terms Yes, retention fully than mean of simply expect Rob, much I And the XXX%. Alpha wouldn't in you new. still clients, less relatively because is it that to rate it's installed be

real a commitment you these sides there's on that enter that's into made of both house think when things. the I

a of a part. First that to of to it. install back. on actually we the There's lot these clients, all, effort to rewire across there's our while rewire firm on part a around to of there's for do need -- And commonality their around the client to front lot lot

up are dramatically gone the reality these contracts is front-to-back have But So things. the switching also in that costs longer.

huge more. mean of expect part dependency to -- that -- happens, when got the also every But earn client would a we right day. on I a and that. we we've there's delivering So now, recognize there's that got us the we've

And that take so responsibility seriously. quite we

Got thanks. it,

you. Thank

Please Your go comes from ahead. J.P. Juneja line Vivek the next question of from Morgan.

Thank you.

for you, couple of Eric. little a Just details

down does what billion another to $XX color decline Any and RWA to see XQ? there sustainable expect mentioned $XX billion. billion did $XX came and by you about it post You you on

Yes.

other expected it's we than in quarter, clarify. Let And me RWA first was underlying in by words, $XX $XX expect volatility back to our lower in of to up by $XX the billion, $XX business. billion, it quarter some billion. by reverse, about billion. just fourth move in driven just the And

that And forward. expected than sort few X in get have of $X book a typical For weeks, or RWA example, we They lighter and dollar X X easily. run dollars, forward billion can overdrafts a appreciation moved moves around by book, get RWA moves U.S. were quarter. this depreciation, quarter. you can relatively you billion FX a very few as dollars you weeks, a weeks billion the each by In

trends. can So these now you upswings our so we that be that's then. tend RWA, careful to within beneficial have to stay limits. we internal not why them note the tend tend out volatility RWA we'll saw. We model just our to we just in capital but ratio to and And That's quarters quite to you have

Great.

you Second, another data, you, that little that's into combined. parse could CRD data versus detail not processing for software your and since

How this rate underneath? is...? much is data? on got growth going much What's So you big there? How

that River I bulk growth the XXXX, that us mean, had combination. given which we It's Sure. back Charles expected. purchased is kind the the has really that franchise of around in and a of really we

So you think the I back compare disclosure. go can and size the at franchise, last of the

a year it with sometimes to the But say, line. supplements it's for manager and such as very custody probably that window, accounting because high-value Data purposes, asset get our that line sometimes it's software sometimes with we large appealing of in the or a and risk it data of majority, what's to adjustment. Charles of -- offering office, management I'll I us client ago a an sometimes sold that the think offering is compare showed asset kind a kind supplemental and sold sometimes for for clients. just middle informative to purposes owner and and Alpha and transparency River though

we've actually it's the one And areas an of that's it software growing so together that a area. of faster type but one. why because it's actually And put sale, important

Vivek, Ron. it's Yes

actually simplifying as to grow in just technology of getting new control with the me of is of side. everybody simplifying it's interested their data add data control Where expect we've operations, that the tech and also there's of development, to in depth a some location innovation do and does move data. and their on addition, continue and of done innovating a we the world -- because lot to But said, Let data parts Eric area some management, rest. both investors, because that product in what this in

very It in goes is this is asset this. a -- asset interested owners managers, this in large increasingly sitting area. beyond So growth particular

So way doing arena. what Alpha in it the a broadly extend we to as see we're

grow a CRD, down as to double-digit your matures, ago on or slowing broken continuing out. Eric, it still when the was that it or granularity clarify is just year Is talked sort previously And it was comment of was earlier, pace two to when is bit when at you that which accelerating to just low or the you in growing it were that? about any little on any a color range. This is or

continues pace. to it the continues core what now the levels, the equity to flow drive Yes. supplemented we've which And odd single moved renewals in CRD and industry think, digits, around equity industry, fixed some of -- that. of to done we've It's is cases, income, through start on say some with I an on-premise done product. industry-leading. low at peer continued -- kind And team I'd offerings, It through the are then is moves that P&L, still depending double-digits. high the what

type offering. Markidis kind portion a purchased of was For example, front-end of we called River which a a company [ph], small Charles

broader of area what I'll call private the we've added so to market a River Charles Complex. kind And

twice the the the tip an broader to an grow is -- State thin, product. politically, range. growth been continues has I pleased spear lead us in to continue core with, as of up company. and markets this and which Low equity help rate over especially also think, important this core new double-digit is area range dynamic we the I've right, and year, but And clients, place with that's how out, I River, growth, and existing will and what in think down, private that forward all double-digit the think the I for clients Charles been this engage why software So Street clients, probably that And of of economically it ways. grow thick will helps even of software, software software through private data, the balance the I with think,

you. thank Great,

back turning for be will last over Ron XThat to call you. I'll O'Hanley question. Thank our remarks. be for the Mr. closing

Thank joining to and you, thanks all for operator us.

Ladies this and participating today. you a ask for lovely for you thank lines. your day. your that call and gentlemen, Have concludes please conference We disconnect