State Street (STT) 17 Apr 232023 Q1 Earnings call transcript

Good morning, and welcome to State Street Corporation's First Quarter 2023 Earnings Conference Call and Webcast. Today's discussion is being broadcast live on State Street's website at investors.statestreet.com. This conference call is also being recorded for replay. State Street's conference call is copyrighted and all rights are reserved. This call may not be recorded for rebroadcast or distribution in whole or in part without expressed written authorization from State Street Corporation. of website. will broadcast the housed authorized Street State only this be call on The

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

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

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

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

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

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

Now to let me turn over it Ron.

today, everyone. released financial morning, you, first Earlier we Ilene, good and Thank results. our quarter

central certain and the with interest would first movements the and volatility, recent Investors the operating the eventful industry. highlights, market of I quarter. inflation, by increases, disruption Before persistent rate on review contend to environment financial like to banking continued driven to reflect segments I bank briefly our had in significant

produced strong since to classes, most quarter the very global to was equities with year across including XXXX. market start a a start year asset the gains choppy. January recording financial performance First strongest

inflation enduring in prospect cautious investors United States. remained the and the recession a However, of about potential

concerns that increase, persistence expectations start inflation, U.S. the in strong growing markets which fixed-income about the recede hikes led to bank strengthen. market equity dollar and saw February and of declined, rate saw encouraging U.S. as for central employment data turn

a continued central the saw regional banking dollar in decreased money to interest sectors month. market and the contributing number All this turn market the to March the resolve weakened, of U.S. prior the of funds current sentiment, and into trends end inflows relative in and rates, shocks to a Both the bank calm although expectations quarter. rise drove of a banks. which macro rate U.S. and a need and reversal negative from by to drove returned the both of large rates number international markets

compared the quarter Notwithstanding U.S. to experienced all well markets fourth financial year told, of across these their events, broad-based in since with performed quarter first last first XXXX. relatively quarter equities, gains treasuries while the of best recorded the quarter global global

fee-driven below discuss I businesses daily year-over-year average equity results, both average bond our headwinds and approximately year-ago shortly. markets XX%, significantly period created impacting market which remained However, equity levels down will for which with our financial

Before financial the to of banking on sector. our parts would comment the events recent I I like discuss briefly in highlights,

a critical As the system. important Street financial the institution, globally State financial systemically plays world's role in

safeguard the helped and Market the Lending Main ago stability at ability Our establish We demonstrated risk during us when Street investors market and assist times. sophisticated management and scale, of COVID uncertain size, positions, providing Fund allow strong Liquidity Money Facility help we Mutual in liquidity three the and capital start to Program. years this

investment in the they liquidity. of stand the liquidity again asset serve opportunities, insights, banking through used We American this strength offer in through during financial banks, institution the to Street XX and our clients products, stabilizing and once other world's with provision and time to help confidence in uncertainty U.S. State of people the the to support concert in the our quarter, servicing reflecting ready first the investors financial management U.S., system. system a assist which its financial During large

to support NII repurchases our loan our Street $X.XX, X% will revenues, through Eric to year-over-year well the which were first servicing benefit U.S. support offset EPS X our by and before related investor common just and detail. quarter I takes quarter first from the Turning management highlights and continued Slide personnel I year-ago were you period, positive mentioned. impacted resulting which of the as as business growth stronger quarter presentation, provision down more weaker a continued to share the in market review was of loss banking lower levels, as fee by State growth, investments system, significantly average to Relative

advance to to continuing momentum, and Turning activities. business remain strategy our enterprise focused across we middle, our on back-office our solutions clients' front, highly outsourced

our new will announced we CF transaction markets. the current March, these Global firm and to expand Street's clients in our This Trading. further giving State trading to provide capabilities, services outsourced to acquire example, agreement ability For

acquisition subject offer be conditions. a liquidity end Street global capabilities expected is our the solution of providing closing by will allow complete transaction XXXX, front-to-back to and trading The completed Importantly, of customary State to to its platform. Alpha as expand part the

years. asset last quarterly first servicing to the $XX.X with our in recorded consistent we half $XXX about alternative wins were our and within this quarter, billion strategy. performance of projected by Encouragingly, was amounted rate at fee higher AUC/A best mandates, second sales over the alternative of trillion revenue quarter-end six the which segments

mandate also strategy clients. an with to quarter resonate this We first Alpha additional continues during as reported the

amounted management at management Global by assets Street totaled across factors $X.X quarter backlog the trillion, first trillion various our At quarter. Our Advisors, State quarter end the under flows to businesses AUC/A impacted end. negatively installation while were $X.X in market asset

see focusing of number to a continue we spots are bright efforts. We where our

strong share fixed-income, in low both inflows demand for our equity investor gained the and haven safe into amidst low-cost franchise gold ETFs had market example, we in U.S., ETF assets. For also our cost SPDR while

While in activity January. were quarter, from the seasonal to slightly cash outflow aggregate negative this flows resulted for largely

money market Global inflows in part the Advisors of gathered latter March However, over $XX amidst the billion market of volatility. strong

financial balance Street's to capital State remained sheet, condition, and liquidity, Turning position strong. our

to banking the common million our our stock and clients $X.X at in common end, to Our of high was regulatory State of buying return sheet U.S. well above us in capital over ratio minimum. a shares to quarter simultaneously XX.X% shareholders our continue enabled $X.XX shareholders billion billion while Street's CETX This quarter, to $XXX capital back declaring balance dividends. returned including QX, and We our supporting the system. of first strength

part As to environment, on our remain and common factors. sheet continuing look uncertain balance ahead market this return program highly in position, and while we repurchase stock focused of announced capital XXXX, other strong to conditions as we maintaining generate subject $X.X up for previously of to billion a

included quarter number industry. first events in the -- global with conclude, the and To broader a significant banking financial markets global of with the

were driven quarter. classes While the remained year saw quarter asset many fee market year-over-year the sequential which for in prices although gains, depressed our ago first created headwinds businesses asset conditions volatile, period, relative to

within need results by on our effectively growth, do net and While this track to We I to supported income we control higher strategy. our do executing revenue durable, our expectations. equipped so significantly performance by quarter areas better, and our believe our focusing are and year-over-year were below was on interest

with outlined we forward actions. keeping number In driving are priorities with strategic the of I January, a in

we client amount be For example, of to clients CRD sight expect line quarter. have AUC/A by a software and meaningful meaningful business, implementation on-premises to our into the strong, a recurring our XQ. SaaS in strengthening our in number to installed onboarding more of is Within we revenue data convert capabilities, and second of beginning

our inflationary additional selectively services, reprice environments, cost, our on ready to continue we to revenue stand will levers some productivity proactively expense our disposal. utilize the given manage efforts, and execute at Last,

capital our of With world's to to serve, our the and execution and -- to ability return of people to investors for the I and value franchise on continue of successfully focus needs the in the capital the shareholders. while strategy, our believe meet diversified they firmly delivering accountability

detail. let me call Eric you the quarter hand the Now, will in to who take more over through

review on million earnings for share $XX the our system. banking million liquidity results per $XX of good Thank an in provision financial U.S. expansion or the -- the do $X.XX begin impact a you, as included EPS my associated a with first pleased institution, participated consortium which to Ron, our part. and for quarter, morning, supporting X. we reported of quarter We We of $X.XX industry of Slide I'll everyone. were

and reduced held strong you than total quarter markets, Against product strength down first as that growth again buybacks was left X% just to we see this in in year-on-year and results thoughtfully outstanding. securities EPS the shares but both by our equity number of another 'XX business. continued can the more in On significant growth year-on-year, we challenging interest reflected client of X% the invest backdrop, quarter of initiatives. net in income panel offset the even just as and to expense fixed income slide, decline was finance momentum our

Slide Turning X. now to

decrease lower period period but During levels client and result which in markets and as increased market Year-on-year, range. a by Quarter-on-quarter, driven flows. both the down decrease across sequentially. AUC/A was year-on-year by the X% globally, quarter, equity we saw XX% the end levels AUC/A both were fixed of XX% higher on a increased period end AUC/A basis, largely income of market end

but decline Global our by some and offset out. XX% end quarter period year-on-year, primarily in volatile year-on-year driven higher the negatively first markets. AUM AUM increased AUM dynamics quarter was saw outflows. lower was in Overall, by we driven outflows. market At end levels sequentially. X% partially The increase Period levels, end Advisors, largely by play AUM similar decreased Quarter-on-quarter, was by market net impacted

X. Slide to Turning

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

Excluding equity translation, of servicing lower year-on-year. client the fees currency by as impact total were market partially average levels, result X%, XX% and primarily a down were offset up servicing fees adjustments. activity Sequentially, of higher

wins rate wins of totaled fee about more this win panel business bottom page, $XXX in generally which sales from billion quarter across The by quarter. on especially X the revenue fee highlight servicing first these with projected markets. AUC/A included the this private a the quarter Alternatives standpoint. again good indicators, total we've the which than in driven makes are wins some growing times a performance average, alternative the we in half saw the strong On momentum segment,

AUC/A Alpha strategy. our portion, installed totaled with reflects end, quarter won, but representing again, proposition to $X.X trillion which, a of value healthy the At yet be unique

preparation and this of announced, these deals planning uninstalled onboardings were the AUC/A significant Given since quarter. next expect we

Turning to Slide X.

million, down client management lower average offset $XXX were a outflows specific flat adjustment. and fees pricing levels XX% year-on-year, previously First reported day were market partially were primarily as management higher quarter and count. reflecting market Quarter-on-quarter, by levels fees

the right portfolio quarter, notwithstanding continued growth low As evidenced macroeconomic business strong you of and segments, bottom by our positioned, in can reflected strategic fixed cost In the on the to we see well net franchise momentum. build our is income remains in flows the on in backdrop as SPDR slide, difficult suites. continued equity which ETFs, our

of in cash our we the the trends industry Across while sustaining momentum first inflows our quarter, net billion. with Target institutional of defined in recording $X consistent Date the In franchise outflows money experienced contribution business, ending seasonal late X% with saw franchise, a continued worth saw SSGA funds quarter. week to earlier into which the with AUM largely the XXth, significant flight in we outflows reversed cash inflows market March quality since net

trading X%, Relative a services the Turning X. period client quarter higher spreads. now lower revenue partially down FX primarily to FX ago, volumes year was by Slide to reflecting first offset

in reminder, FX some Sequentially, the year by X% higher unusually with Europe was lower services trading a activity down client FX XQ trading revenue the war ex-notables X% offset of As last volumes. in spreads high start 'XX. caused

lower the of And consistent $XX first its GlobalLink XX% March. last with cash well industry higher during XX% specials Sequentially, three billion higher with wide X%, activity, performed balances, lending revenues environment. sweep market finance of consistent again experienced into the by offset the with year-on-year, mainly with the consistent activity significant industry. in franchise the or driven on focus driven were securities an which by and up industry active business specials an our weeks increase money money flows, up market which and increases revenues quarter was by was market returns, into Securities program partially

Moving and onto fees. software processing

shortly. to with front-office returns. down and fees I'll in to First the both a primarily year-on-year quarter down and software software away fees by turn shift but on-premise higher renewals primarily lumpy fees, and processing quarter from XX% were products were Lending XX% due which sequentially, revenues, year-on-year the sequentially, driven for lower

and Finally, other sequentially, largely $XX investments. million fee equity fair due positive year-on-year, primarily revenue adjustments adjustments to million to $XX market-related increased value on due

Slide Moving X. to

that on see software the result prior a the business annualized partially XX%. several You'll SaaS wins as Year-on-year, primarily based software and will growth scope on-premise and the office expect in Timing on through data front renewals, year-on-year, revenue. offset we and by quarter-on-quarter vary quarter. left panel of to continued size conversions on-premise and installations was our of declined renewals revenue come second recurring revenue several in of lower enabled

to absence Our XX% of software enabled true-up an the revenue was but fourth sequentially down due accounting in up quarter. year-on-year,

to Alpha in pleased report owner segment. client on right other the business were asset We the Alpha panel. Turning metrics to win another some mandate the of

quarter, the as a won addition completed a onboard middle-office to large installations we've XQ mandate XXXX. reported In expect to in the win begin in portion we preparations significant back to this of

Turning XX. to Slide

decline higher First of rates XX% quarter bank short by offset the term NII positioning, and by performance The sheet year-on-year, proactive partially NII but due higher was partially to rates central driven hikes. to primarily bearing short-term lower $XXX X% balances, from additional out year-on-year offset million. sequentially rotation deposit in declined was increase largely Sequentially, balance deposits. market client by non-interest increased

Average first preferences Year-on-year deposits the show assets of quarter-on-quarter, pricing and right and balance with which for X% rates. expectation sequentially. we consistent seasonality the our client average first periods X% of On X% quarter quarter. relatively sheet slide, declined the declined our during is rising average during

X% contrast, and off than saw week and affected of rather inflows space regional at -- manager Of stress asset asset as the we March the the serve. note, depositors average that weekly compare week deposit we some levels consumer the with ended risk XX. bank in increased with end at end in quarter. quarter owners corporate The institutional primarily We, the deposit

consistent are a Our at remain XX%. determined as deposits operational percentage deposits guidance. total of by regulatory These

client the XX% dollar to were quarter, expected. betas during U.S. XX% as deposit

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

to continues be advantage. Our international footprint an

XX. to Slide Turning

Our light X% elements continuing to environment, including first notable In in expenses, quarter of the expenses approximately just Alpha, current private revenue and for increased X% year-on-year strategic actively or company, of translation. we're technology excluding invest the markets, adjusted items while operations managing up the automation. currency carefully

and driven inflation offset and attributable and salary wage Compensation employee increases higher variable increases the by Total other benefits increased X% rates with higher costs more headcount year-on-year the than continued X% on decreased optimization expenses, attrition to hand, year-on-year, in-sourcing. non-compensation productivity services. in as and primarily lower certain professional associated and savings

basis efforts, X% down line-by-line On systems down optimization was infrastructure and a non-compensation well declining investments. costs. fees, for information up Transaction ongoing communications costs the by reflecting sub-custody expenses from to lower And expenses, partially fees. were technology and benefits offset from processing were reflecting X%, as market professional higher broker mainly marketing mainly X%, travel, other and lower expenses levels as due

XX. Slide to Moving

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

let targets, you above with navigate which see, levels, environment to the As operating alone extremely our capital strong are minimums. regulatory can well continue we the

expected last end, percentage slightly and quarter to points year-on-year, ratio program of of that which was but largely share our up RWAs repurchase by we XX.X%, As quarter-on-quarter our quarter. continuation CETX the X.X normalization standardized driven of discussed was the down

flattish leverage at X was Tier X.X%. ratio

$X.XX pleased We to quarter-on-quarter share billion of percentage million Corporation in to stock transacted. of were our $XXX of to quarter-on-quarter increased Bank XXX% Street Street quite common the State State points return X percentage where XXX% for businesses points shareholders a of Trust and and in our first for $X.X of LCR capital common most repurchases consisting quarter, and to dividends. couple Our billion

capital high expect to AOCI pull-to-par trajectory, form the course. up the of strong positive we in pace of conditions level in to to measure, billion across and our earnings this of subject buybacks given capital to return market year, $X.X every Lastly, continue at of

provides first quarter to Turning which results. XX, a Slide of our summary

certainly and still our durability business challenging continued this of are competitive strength is quarter very with work do, there the franchise. the against a While to we global our pleased backdrop of

ECB the degrees Next, I'd quarter. like to Fed, outlook current suggest XQ. level, the second At of and broadly our to provide our Bank hike current to line thinking which varying regarding with a England, the in all in continue macro rate is forwards,

up bond of X% markets, be quarter-on-quarter global In to markets and equity flattish. expect X% U.S. average markets international be to we equity about to and terms currently

Regarding fee a X% to with up up and fees expect quarter revenue X% XQ X% and on overall approximately up to sequential management to revenue we servicing to fees fee in X% basis, be flat X%.

significant We a and as in a line of conversions have software in XQ. of renewals see to we revenues SaaS number increase data on-premise front expect to sight office and

fee know million, guidance this difficult the In to to expect of see $XX depends We quarter is estimate recently XQ but would to issued levels. new between total $X our other which revenue forecast, intend million we in regarding always other renewable line, market a revenues on energy adopt uptick in accounting we to sequential investments.

effective As roughly The XX%. XQ tax rate is adoption expected we be adopt to EPS. this our be accounting will change, neutral for to approximately 'XX

driven deposit rate deposit NII, quantitative to XQ. into the to decrease NII and second interest-bearing now as bearing rotation primarily XX% tightening X% expect sequentially, continue by quarter betas hikes Regarding we non-interest in the and

to costs focused this productivity on remain We driving expenses. controlling environment. in Turning and

basis, quarter some cost of NII as sequential fee seasonal a we to builds Overall, excluding we manage on momentum business XQ flat be will in expenses higher expenses. through with the $XXX and million. XQ revenues quarter and the offset trends the year of second actively continue that compensation will expect XQ We

to And let me call Ron. back with that, hand the

now for the questions. call we Thanks, open Eric. Operator, can

you. [Operator and we Usdin from Ladies Instructions] ahead. gentlemen, of Ken Thank begin go Please Jefferies. question-and-answer session. will the question First now comes

morning. Thanks. Good

things. wanted side of Just the up to follow NII on

and So your of to early averaging in going you Eric, X% quarter simply -- (ph) type you. of maybe you point can your second growth through deposit dollar of kind a is end-of-period Thank just walk could the we and in for basis the that effect about XX% the in an just release much made how March end. since average increased the terms expectations forward as well? going how What to both on about also

Ken. The Eric. quarter deposits. them about usually of trends the down of to first billion. right to is fair the past about expected a forecasting quarter February. we Those in on through largest opposite through think Yeah, U $X and driver shape NII whether our a this. January, level come do $X.X play or -- We the down March. non-interest-bearing in about first It's the it's came quarter quarter billion. to had quarter of second now, fourth And of March, this some actually we had We amount a it comes had really

And driving what's so been change of NII. the that's in some

we've interest-bearing seen contrast, deposits same at actually the in in And time. flows good

on a under amount the there So is fair going surface.

we into look expect continue we deposits of to non-interest-bearing quarter, this rotate. second to pace As

volatile. then you $X then down down $X back, billion; were been where we billion, billion; billion; if $X deposits last So then down right? quite had step It's non-interest-bearing $X up year, periods

zero, that's deposits And then it, you those for -- Every we're second deposits can million $XX is expecting into X% asset of sometimes to and another amount quarter. about or worth kinds when now quarter. more be billion, side million, right? $X $X on billion earn you a probably the think $XX non-interest-bearing down come right if And $X significant per billion significant of pay a NII, that the

we that's And what flowing are through. so seeing

last probably was and does out and hard we hard, you low was we're looked does -- low deposits. that forecasting at The non-interest-bearing the XX%; trying of last play XX%. do a standpoint, the the do, last is and to always how trend we've work do forecasting of peak from which where the trend peak some what is The is

right terms, On dollar other about and billion. billion, we're $XX peak hand, sitting last the in was at was billion, about the last $XX now, the and low $XX

of that then they really clients looking that be expect so we into some but as non-interest-bearing strong And our funds. institutions the honest, NII some in get are deposits, rates of or the to rotate And market money play deposit we through what's interest-bearing either also can that's playing who to are out, treasuries other that some forecast. sophisticated see of at

cycle, we all second rates, we in And the few with trend client forecast. this billion as level another deposits so, at at our and point activity of of take expect the but dependent is high into this probably the quarter, to a prevailing look down on behavior kind

Yeah. down, client outs in Thanks, expecting of just ins to last a seen you've obviously, of to this are -- Eric. events types were the just one and that is were the deposits terms as activity, where is in follow-up coming I came in we of And than month through. that changes come behavior past the the the and then from? mean, you, all different

just base? happening or Thanks. across you making doing of what's different describe even the clients their operational are cash kind client how with what with would decisions they're So

Yeah.

kind clients rates clients of at of whether three and will think about time are of think over -- so why what And have fair be always clients they're is to decisions a who how are especially are we're what interest the how are their amount we own -- price-sensitive. in maximize not X%, for different to alternatives I deploy, clients, and in an a Fed environment or and variety And yields we're the of here. right? thinking you the where six-month have treasuries, I that clients seeing, we've at put interest that making seeing lived part (ph)

very clients our and from deposit were from Operational the to and some are to operational comes it steady be an of When operational operational incredibly we stable standpoint. can the percentages disclosure nature a balances added you continue narrow this, sticky and band. very -- of deposits, in see the

clients with but if in operational dollars each not of significant why nature. payment billions You they're accounts very and thousands have as with individual often, flows, of have transactional that's hundreds, and categorized several they typically

is changed. that ingrained they What we -- so those they that do And of try the in of the of want deeply accounts, overdrafts deposits processing structure behavior to to the don't that that don't always want. they behavior -- hasn't custodial for core avoidance that them, -- we

we're what there. the instead prevailing is find, to here for and they're they're of think discretionary, seeing I clients And on -- at deposits, the margin of to their is rate-seeking. rates, dollar going $XXX be going will look these last there

sometimes, match with rates. Now them we those

at deposits offer we'll So exception rates.

them help or interest. their treasury of repo their we Sometimes some sweeps with

so have. our we there expect you ways patterns do that. But point and we'll have clients that different the serve this of you variety to continue we in some clearly, would of And the of a is and at cycle, to rate kind

Okay. Great. the color, for Thanks Eric.

Hawken Please Thank of Brennan you. The question next ahead. comes go UBS. from

Thank you in Beatty and Adam is good Brennan. for morning. This

mix a follow-up NII, particular, in of deposits. geographic and quick Just the on

trends, So lower of a the beta. then fairly beta, as non-U.S. U.S. going kind down called up somewhat going you've a in and steady past, kind and out higher you've got of with

yields those those the as seeing up trends be with say, going the see And Just to betas deposit non-U.S. based wondering as, on continue. if competing your now you could particular, are continue will somewhat you maybe you're balances? right U.S. we clients, to pressure In higher? you. Thank what outside expect on

question. the for Thanks

then non-interest-bearing hand. I think are, we're incentives, a prevailing to to have think of behaviors find just clients in the point would of to the U.S., mean, we one a with geographies. settle like this place across where where we'll And do, with kind clients at see you rates pricing on at I you And on range have now describe way general. at nudging continue I in interest-bearing rotation the they them I have that us. to is

We've new, pound been kind and rate first, in two-thirds the Europe just think still it's the at of right? increases. maybe I the of half, sterling,

to tend XX%, attractive XX%, hand. range continue in clients jurisdictions somewhat to betas good have relative those quite They're and alternatives one the on clients the XX% for the there, that And in us. to be for are because international U.S. XX%, fewer

continue. there deposits. jurisdictions, expect to tends flowing with other, the And to see I increases a that through deposit -- tends And On do those play be to sensitivity more that less the price through. lag international offer to to be rate us in to more modestly rates allow the we think the there on that we continue

That the Great. pretty buyback, to the Eric. sense. turning And then just Thanks, makes in quarter. healthy

the target got still You kind not-to-exceed of out there.

backdrop wondering just thinking capital So and maybe banking in needs how terms disruption trends has buyback. of some about the deposit affected you're the in that whether thinking and the of your you. around Thank

that something we've and deliberate Good about. and very thoughtful it's question, Yeah. been

saw thinking about sheet, stable the an is is been strong March unfold, daily balance for and point events we banking system. broader The weekly incredibly the us imagine, can we've how as in we've got You starting right?

basis the our our in regulatory points thinner basis basis -- in of end a buffer. above higher bottom always chosen of points many range. requirements. the XXX points the And terms with run XX% regulatory know of with And Our capital we've ratios much That's to are above healthy this you range, requirements. of XXX the than top It's run range. XXX kind

of think point around conscious we're starting on I our return, one in the ongoing decisioning for capital and us hand, important that. is So

happened like had would our March, the assess statements if we And the we were have think the like they of about other you this banking buyback. the market beginning around say, hand, we'd banking of the those. is We system. -- economic for and different This some make a just the conditions in us, and we'd conditions other I On capital environment, at because is parts not assess not what's us. of about

get do And our is we'll a like levels concerning And that, more factors be there gives at and they if may evaluate we so feel -- of conditions But a continue pace the these fair to and these feel conditions should we'll can we has then we proceed. that beginning, we're we'll healing for conditions, think at, will us week-by-week system, stability the March, to that confident thinking. been that of we since if -- what it middle amount right, that reassessment. differently and systemic into be to market continue continue of we

those aren't the more next than buybacks quarters They're linearly over the and to one done you them not. this And course weeks. once is Our done. eight of of XX where do

But position quite of evaluate. -- latitude. we'll amount I our gives so think quite fair us and strength And of a high just is

Good Great. Eric. Thanks, context.

question next go comes Please Graseck Betsy ahead. The you. of from Morgan Thank Stanley.

morning. Good Hi.

Hi, Betsy.

we talk I know you leverage how to total for for on wanted think but at specifically, more mentioned or I operating you're the full the fee about little a it? bit thinking that are think what Thanks. get and basis about a we on basis. is year. XQ leverage as to either how Could a piece trying rev I'm the Really the NII you how get about you just on XQ thoughts outlook your operating managing about and thinking expense about

or percentage going how the plays markets to conditions or up give and the see revenues. look to our we quarter, for this. bond or one up to quarter out impact down need Betsy, there by more and environment year. different second point is equity the at ways markets than started X some because couple a And into outlook down, is a we're we clearly, of We've

that. that, to in drive more still leverage really to the think external need information set to for the but out And to operating see conditions year I and ways We positive continue look year. so it's about early do we this

think the about would have trend positively as opportunities but NII positively expected. will I for here we not the as think year, we as though,

So that's a consideration.

took actively. NII fee XX%, a we little continue room right? line, that momentum, we'll as spend manage gives saw second last You I ballast so was a to for guide up quarter, up didn't would in quite that year expense honest. and be say expenses the XX%, or on right, XX%, half, and to the us our XX%, that or the we And more breathing

also productivity but it investment, drive and to in continuing calibrate expense of conscious quite our were growth. We

And the we'll try where forward, but revenues so -- obviously can. track and that, with obviously, we'll do adapt continue to keep as of we a we direction to of look

so you should a going in that? and follow-up million just is QX. color increase be $XX just renewables? to on us So trajectory line in And about a in that of growing of investments Or we should think your Could there. a line quick that the one-time line other investment million renewables then that sense you $X discussed, with the to into be Thanks. a fee little how just step-up increased to increasing a give you Are that? the

quarter do a Yeah. fourth It's in That's is catch-up. the much there written. year-to-date guidance as be there and third not from additional catch-up. is to need -- how and some the specifics both, the accounting the revenue And impact will second quarter, revenues the on be then second doing in little forecasting. discerning would we as -- all the that of have In a we're still quarter, line bit we

to out. map we're So trying that

as the of And be instead have a through some little we will But coming all we'll zero, to to the around to higher of quarters, get and in get proceeds, that tend forecasts. on number kind guidance guidance quarter try -- more out that slightly out. line will around we'll being a try as centered go the centered

you. Thank Okay.

comes next you. Gerard Please of question RBC. Cassidy from ahead. The go Thank

durations as thinking Are come about Good the are of your proceeds that portfolio you're that? in morning, securities you Eric, the with you that terms looking investing cash share to the duration every us quarter? your you with What's your gentlemen. at? how shorten cash reinvest portfolio off guys of can you trying in

been amount We're quite we've a Gerard, running over careful duration. of Eric. years portfolio modest a with the of -- it's

I from rises, interest some years. some and do benefit two in think us has without we've last it's to what It's what rate which is of the forsaking ability some the create given been historically two typically us in over in the to provides in that the to benefit to X.X from -- that NII of able yield been half a amount also curve. opportunity steepness stabilization years amount

see as or if there if year like or after the We the that we'll in because late also -- rate it the is there protects next income fall, duration if rates that. amount and of are -- that year cuts statement year

stability some well. us as gives that So

risk we tell portfolios the though take. careful do is, shape of there terms on some I'd be yield you we MBS carefully time convexity curve think duration where I spend pickup, you much to as running on as that additional level also in what some is you've of but got

was different balance and in of the a gives we're et as us got in pound different we We've our third Canadian, duration currencies. those international run sterling, real of Aussie mentioned may earlier, this because about franchise, And doing in sheets around that invest. then euro, somewhat globe. deposit levels to opportunities cetera our And jurisdictions, dollars

might are. We and views reflect one, in longer the other, in on where of rate shorter our those partly be cycle to each

stretch good kind and is that we deliver us We to to we there to We a We we a but careful. don't obviously approaches for of there, many find gives like So yields continue flexibility don't portfolio that for range duration. our many, some want conservative run some want have of to take being years. want for opportunities in NII, yield. stretch to

then And about deposits. a comments good. on just follow-up your Very

sense year $XX approach get and cutting X% rates could we X.XX%, do that on the at next non-interest-bearing question, and two-part that were of year Fed if I think start rate, you And here, basis? that sitting low the point at the billion; billion $XX you funds this non-interest let's go-forward deposits say, do $XX doesn't bearing stay where just said you -- later Fed billion you're rates a now. a

accounts, interest on you your accounts? do And those pay have operational second, to guys on any

Yeah.

accounts in sometimes sometimes reverse that do order. me The Let interest-bearing, operational are non-interest-bearing.

in but -- payment asset accounts a of the remember for accounts is each be the asset variety tend the the the for. there and about pricing the nature of to custody owners So different of with us. deposits it's our these of effect with each managers funding leave of wide pricing they they structures, that accounts in thousands about are than those or -- we that oftentimes And less for and -- transactions that are clients

We think billion trend $X I guidance. non-interest-bearing In was billion downwards. continue which even more than last -- of early billion saw expected $X terms had quarter, a even we'll trend this a back that deposits, see to or at back we past do gave $X when we

in that to another $X is billion going be probably believe will to out And do expect some then begin stabilization. billion, We we the quarter. come there I think second $X

that are we'll that where by could be be provide. probably is to movements $XX I'd that but later this it at it that year, level, amount no month in to billion we've to sure could think level. There get that be billion. inclined we there $X really crystal-balling can $X is this hard of billion or seen that be -- is month around non-interest-bearing plus/minus It's

as we've when Even in billion were days and average the example, were where $X in billion April, non-interest level, above billion $XX $XX at the level. an had bearings recent so the days they

that around trend's one $XX through, last to that year. later be So trying approach potentially billion the benchmark but we it's range we're may that volatility here, I level that forecast think this -- that clearly, the and kind of of and

insight. Very good. Appreciate Thank the you.

Yeah. Okay.

Please next ahead. The Mitchell go question you. Jim comes from Global. of Seaport Thank

Hey. income just story. fee Good Maybe the bit morning. a little on

but about great a servicing necessarily momentum onboarding. hefty in the but about from coming growth, line, servicing talked talked pretty You not sequential you so -- and

the a about we about onboard? full Is fee it you as how thinking servicing back fees? do think are year story line servicing of with how you trajectory half So and the more on

Jim. Yeah, Ron. It's

amount expect be AUC/A as a tied A it's So couple driven occurring. of a maybe systems to now to One fees, is servicing that things. development of and to we've I'll while carrying implemented. for was occur start that needed of we some that -- noted, by here. On do we growth, Eric lot is, been fair a

So we're AUC/A see of that get to expecting a hefty to amount installed.

this Secondly, large easier -- was to time install. it back alternatives, amount, was much they the but take traditional less this plus were more quarter a install, while it wins to which office both of are AUC/A very low

up shaping it's actually a quite pleased the shaping year. with we're how up good is that sales So in XXXX it's and early perspective from

So we fee stability, servicing believe if that of with all we about, growth. the that, good forward. amount meaningful to there's that market depending feel over about pretty but some look wash That to expect what do believe we of markets, talking tends on as with you -- I'm a you coupled everything about kind year have

Eric. it's Jim, And

equity second us servicing appreciation market give as quarter. as have out, lift Just some should and we to round -- the that bond Ron's market fees appreciation covered into some Management fees. well equity

to -- I will through good. usually headway think given volumes specials been with much the go trading that through play you've so nice making you have how but and the if is sec see seen in quarter We'll lines, just we've finance market second continue. spread, volatility likely

and this that just XQ. renewal the line, And of on-premise processing had software varies. -- In quarters one lowest in the we one

million, If to at it quarter. be That could swing from look quarter that fourth deck, could first you some the you literally materials be the $X just the in was of $XX million.

sizable had we there as some upticks We as said, expect, well.

areas. businesses we've been a in that range of of management one standpoint, the every momentum the opportunities harnessing and And a on So effect, there focused client from and seeing. is we're

that. is I'm new lot in momentum Eric. out No. in second increase have or the a to like beyond back appreciate seems but of trying from XQ, XQ, as we the of is sort X% of coming we of sustainable of sort have little whether more it's all X%, in other it jumping -- a Yeah. revenue terms continue to it's Sure, when about that back. don't sequential that lumpy gain of But the of the But that some streams that of these a I really necessarily of it's just momentum can whether rate you streams kind run software sustainable? think to kind it catch-up, in processes further longer? annuity-like nice revenue you in do a sense half, out some the quarter push jump get of

the Yeah. perspective. No, I understand

quarter. the remind first we unusually you low software in an print think I will had and I on processing, what

That's follow the printed (ph) this quarter. could revenues that reasonable million a quarter, for rebound in one of continuation. then about million $X past have a quarter we up average and On-premise part averaged first but the is of second kind expect, So example. $XX

of, it's we're the within expecting that in kind it I think, second should rebound stay and averages. quarter So then the

servicing very as to fees office, then fees, more the we've FX as flow-oriented fee finance management your increasing enabled, in momentum which mentioned, momentum beyond it's in additional that, And diversity. software, of some and there software gives point, the then whether it's and mentioned, office terms both areas, middle of we're back And annuity-like spread we are the SaaS in revenues have and whether Ron us servicing securities in -- seeing is and books. the the

give with of provides we'll that should It's to hesitate activity But there give hard and through. for certainly more some onboardings think clients April expect be the we June we're to continuation but momentum the us some to -- able second every quarter I'll half certainly positive. will year, we've indication. year, an the -- come I and beyond get to you know predict then I'll as step-up these be we and seeing second re-estimate of to full that July, be a of and think And and

All all right. Well, thanks for the color.

Yeah.

Please Research. The Wolfe go Thank of next question you. comes Steven Chubak from ahead.

Good Leung Sharon on morning. actually Hey. is Steven. for This

I get the maybe in to it any that, meaningfully numbers around and billion the not assuming -- guided that number example, NII, you put XX% as for will up, noted can sometime rotation you continues but previously. know be year? as there you that NIB expected $XX the had For as you you to still that Is

the have forecasts just range wide outcomes. I this mean, of is the Yes. a where --

we and that reach quarter, report don't year. -- given quarter think second at for can the one the the in think we what first XX% up that I expect full

of see of what's just with determine. in the And harder the what's the and of that's to rotation pace wrestling pace is point sensitivity we cycle. this what's think what clients I that we're at the in the price some U.S.

price say X% kind more XX% if is forecasts be thinks sensitivity, have. NII of had if way you, dour I'd of of and instead to And more to there we year one and with XX%. this a more of So a I expects up in range could share rotation it

the other one's could believes there NII some hand, attenuation deposits, non-interest-bearing the XX%. XX% be where the to real in is optimistic and of up if On history,

So hard larger we information and here. we there as in transparent than a maybe expect trying and that we're that to perspective. the than that expect just a the facts of probably really quite quoted and forecast given range but will like is have. we data the range -- in usual that outcomes, be some predict. April And to the some be a bit of there looking year-to-date seeing, that the larger But you're levels It's range range just gives I we have to forthcoming we we're be -- honest, the be those of for, that to you as can

much. Great. Thank very you

Ebrahim America. you. from Bank Please ahead. next The question of of Thank Poonawala go comes

-- Good the follow-ups, Eric. couple on the on I guess NII. just comments morning. I heard quick of your One all Q&A. in a

the repricing? you given Just behavior the the that customer bit of probably that intensity January increased trying behavior rates surprised customer of, that higher in were going where to or back changed little is you make last sense events today versus month a assumed the it is have were Jan, and than of we that

to to but quality; -- bit geographies. are I different really we it's really client which different events of not we we deposits, sentiment than those No, what we very this the think And clients serve. and a that different are month, flight who a a segments, last of Those ecosystem do that's with serve. very whole had we flight from don't different risk-off of a quality in bit had little the just

what's for of not are unforecastable in in decades. just us, really careers, many, of trying clients back to had operate what think our estimate, We've prevailing is right? some X% at scenario probably going But some in us -- I States, our right? or the but how happening for we've do two United rates when that many -- maybe unestimatable is been here and

that the is so thin on And data question.

some the they we've -- what to one back words. just one quarter had they in little $X $X you're all our forecast, we've were use for guidance And billion, to can third think we I they down non-interest-bearing seen we were is situation of where to fourth guess, billion. down up given were in quarter, those estimate where got we the you're this And on quarter, NII where then quarter seen when So January, bit, right? trying a deposits, had

but thought shifted. not do There we didn't. some playing and another reached we rotation to have of for was It's think so through. that, I And might a we they've step attenuation, rational clients

sophistication. from to they across non-interest-bearing Now of shift their currency They interest-bearing. sometimes shift because

what's in net interesting is got deposits we some reductions the more in Europe that and had we or -- and think Asia. some U.S. I outflows actually in in

of out have kind you a so mix there. And real

about. full But are it, -- And call deposit deposit or I think there that to what this we're NII we're serving, trend it's to enough realizing is serve, the we're a all bit of question going the but to up I'll business thought, better It's went sequentially. sets pricing continuing data we like And clients what faster estimate. the still had this on data than to up trying behavior what that's we is is clear. coming see how have not just there actually because or, need for not that's momentum And think we're here the year, the we'll a I down is be much. in is

from for the we just us if higher, question. small it. expect what from know forward. your of that should credit the but Got economic look balance that a the you, provisioning provision is are the I perspective more remind sensitivity other cost an sheet as that means rating credit a separate like downturn, it's And element from agency rating, downgrades, we portfolio credit there

million. we that's the cash about we good $XX question. the CECL all -- for It's regimented calculated the from made, -- mean, using provision one was fairly that the aside techniques I Yeah. that the provision for placement that and had

of provisions million million, change of $X through. it's We've in in seen $XX or little economy that that different migration bit pressure range thing prevailing and kind And but us, the probably of in for bit a think higher parts we the plays have that in been of million, I puts a of the have little typically. and is fairly think I rates, dozen ratings typical. half $XX a part credits, it's

the think we're the Even distributions book. A little high-quality that typically more even a are A- run call we I range. market, or we in -- right? better where or high a quite grade down lending and we a down have market, So ratings BBs

have we'll to sensitivity conditions. economic So some

stable bit back start with a it's drift banks reserves, we It's what that positions you we'll direction the continue down well like can sense number little around what obviously go individual And You in It's but the we're both feel given of and a But of to right? can that now reasonably quality. of -- reserved the we given built monitor, economic the rates COVID, know, conditions hold. we on give diversified. to highly of A we'll of economy. situation feel like high just sensitivity.

Thank it. Got you.

Mike Securities. go from comes ahead. Mayo question Wells next The you. Please Fargo Thank of

Hi.

to can need the markets went issue down Valley. billion is answer, clear? mean, you a I really think the generations As this I your sure earnings know correctly, it deposits you issue, not liquidity $XX that’s you you $XX know, non-interest-bearing just little why explain I and earnings (ph) heard issue. the Silicon just I crystal but a billion. I make make from And to an to on And

going possible of case, go non-interest-bearing deposits base this would which down billion. money. it $XX $XX $XX That billion range, billion the down the to is maybe would but might $XX low $XX year that would end than be be from think You billion, to later less be billion, free

was it billion. $XX to $X $XX million per said million You

X% just at million million, the of talking of you EPS, or $XX the it be of rate So lost X% if $XXX sort thing. you down hurts kind worst run earnings go a $XX we're of billion, to your around which look you might about case, taking

that it's reassure So first, this appropriate, is is my if And math there not the a then earnings issue? that is that issue. liquidity correct

case, I assuming get your case, but Mike, you're think in that I worst think on math correct. deposits. is impact we worst math I is margin XXX% right, your We're earnings the as all roughly start? why and to you I don't effect, -- calculating how the can doing avoid think the to the the

right? In is here deposits. approaches a terms are of issue, there that These liquidity, liquidity custody nothing

we've give Eric As a you number why operating of little a explanation a of They got number but they're and noted, accounts. sense more clients, multiple X of deposits.

And per fund if if it, account mutual more. has It's actually have run about they a you their fund least at us, funds. think company probably one with not to

gone ratio, If up now. you at which look walked through, the XXX% you at not coverage liquidity up, Eric It's it's actually down.

continued source our an earnings So the fees primary offset as expenses. well yes, and to revenue, extent of careful to we intend one the as which possible of is with this that issue management is

to a that. follow-up And then

not you're You buyback. changing your said

for billion have you So $X.X year. the

You've $X.XX billion. done

left. billion $X.XX have you So

current the of market XX% With decline, cap. market would that be your

you toward life-threatening, a enter completing appetite the what's and but see market? how your to as soon that buyback the this are extent you step So down, not able to

it mean -- explained think Eric I well. I Mike,

most environment. If last year, We're the we held -- feel you for capital quite shares the of obviously the comfortable our back we that continuing a look levels, buyback. large conscious basically amount of fact for off of buying at and

to ourselves, today, doing So feel the even look is that. or system we the extent there lot like ignore we the in certainly which not what we a about to look than but and started certainly we to it that, March, different which and to feel is very system saw comfortable more in worse comfortable we're going whole live, from what

I put within will cap. it our range, But -- us in market our think terms CETX about we to think think and forecasting of still don't prudent well mean, financial mean. -- And so. of us capital in it's what on our our do we actually and above based We strength, ratio, I about terms now this our our quite so puts it our know we -- ratio, what's range,

this at point, So feel something doing. comfortable that, we very is this

incredibly year. Eric. see. the quite it of said are Mike, at just underscore, high bit And it comfortable that. the liquidity it's And we've just we pace. I the one that's the strength every us of rest reason why by right, and we're measure prepared shared ratios I that capital with I'd end And point and can buyback. do remarks, in at with my this said -- through proceeding do we our We'll a

day execute available And execute we days even course, of buybacks weeks start within quarter. on subject the we then a will quarter, on over earnings the of the and during to after conditions, to eight market and typically typically but XX them operate them, we

enormous So confidence we've got it's our in particular confidence -- good in broader position we'll -- here. and the system

down. does when manage a drive fees our obviously to earnings when On some earnings, rates rates is focus is and give of sheet earn we'll was work drive we continue our trajectory. that issue. back balance NII and we'll sheet expenses through that multi-year the move -- the something to can and And come up really what balance on figure

One crystal clear. time, last

there deposits buying non-interest-bearing in nothing money the the, to give that reduction or anything So in about your pause is else your free quote, continue stock. results would you back

None.

you. Thank right. All

The comes from of Rob ahead. go Autonomous next question you. Thank Please Wildhack Research.

were some X% but up X% sheet, guys. the think, balance RWAs or quarter. down X%. Hi, RWA unpack the overall to the was wanted I of in dynamics I sequentially,

give what going color So just us there? on you can was some on

Page there's and further in on addendum. the back I some think materials deck Rob. Eric. XX It's earnings in on Sure, RWA then both the And

came call low fourth quarter print we earnings lower than a Overdrafts signaled our quarter, you at RWA, which remember, if particularly expected. think we I had in had fourth in January. in

assets Some books with rates. the FX move because the of dollar the risk-weighted in associated lower came December late in of

or RWA rebound that. we of billion we so $X $XX little is a and about system deposits that of $X billion got quarter to saw fourth that cash expected cash on first of and about had fine. billion in we're you quarter. $XX the We on light the our from of clients. And billion, is the overdrafts, still came of in amount of a Part And which behalf holding

of down fair still and is a RWA year-over-year, that's see because You number efforts. of optimization

for hand, in our support RWAs We and one deploy felt grow like returning the on very but opportunities the to ways high-quality on real there's higher and us franchise other clients.

And so the deployment we've books. been across FX adjusting the

think smartly securities well deploy RWA are and capital our to to really find space additional forwards how organic growth. comes deploy amounts. in spot quite continue there the we're But long-dated to You about finance, want when additional it and drive the and and versus plan much to here is ways capital off forward to we different to

you from you. installs and the Thank but installed then remind us revenue? long take typically the color to just enterprise business the those on on-prem trajectory could here, to-be to how appreciate convert I And

When going we described into quarter, realized the installation revenue second those Yeah. as installations. the we describing were

accounting book you at the the it's date we only book that works revenues, typically So when begin them. is effect, don't but the we win, installation the in to way

And the software direction see the data to under both float assets and you'll for servicing similarly, processing come something quarter and of upwards. well. as that backlog see in begin office in areas, you'll and middle revenues custody So some the the second down

you. Thank Okay.

go question Morgan. Thank next you. ahead. The of from comes Please J.P. Juneja Vivek

questions. Hi, Eric. Ron. A of couple Hi,

just revenue should on-premise your back full-year bounce look for in I it want step second Eric, you and three at CRD the that at back -- all expectation basis, CRD the to subcomponents looking but know is Firstly, at revenues, on in point those revenues. together? entire it should said What full-year this -- the quarter, a growth

that don't in of know level we we Yeah. I detail. I Vivek, went that -- into don't -- January,

would in past I described middle growth. is different described as office growing We've back in is We've -- there the think that fee single-digit said lower traditional the the that of growing our a we've categories. to at what front CRD growth office, and which revenue high growth. range towards office revenue single-digit closer back include

it There will double-digit when be growth. could revenue years be

this about said we what -- that's that category So category.

what particular real there'll on-premise year. be in software will but not around in grow we -- in, typically digit the in that should software higher-single in over the and given all see time combination momentum But be SaaS. in think some heavy, though range the see a revenues of as that we is I the do may enabled revenues

come this and you over exit up should how much large time pickup in Ron get Okay. to on the would of And for Eric, how in to And what question course done? be amount see then that's should there the should new that be servicing, that going XQ? expectation business this said [indiscernible] a installed and remains XQ. this of what's XQ, by to your back year, expect from of And installed be that? much year, the benefit we XQ, do therefore, you you

Yeah.

there are what a of think that because happens here Vivek, is that think, ways I tranches. couple about in it on onboarded to gets --

services assets often multiple might administration, are assets. for we those under we're onboard custody, So there providing that the but

trillion. some they the So some we office custody, had middle of had because some in have were had they performance Those $X accounting, over analytics. $X wins wins last had would many year services a some couple They cases trillion with would years have mandates. or Alpha two might have

kind right, revenue under or them is as sit we there describe of, of that it, custody each the for there and balances three, I'll So administration. call when four five assets installations,

expect and view of this to think course administration I to during right? in roughly, year. our we'd about backlog roughly, custody through vary. that say half is tends I'll that It the come the of

what services And layers that pieces, get But revenues that kind be won't perspective. assets that some think custody, the it it, over the that because time revenue provided we'll quite is as do administration. different, broad those I may associated be are under -- -- of you the I'll then of -- with at it's through come call level we'll

remember, of systems because, to quarter to visibility for you implementation we've clients, give that adopt. front-to-back points only those and to that try get we've are not designed as configured a each we offering their processes more parallel many that we'll these we need where have reconfigure but with is to What more do -- and implementations in clients

effort a both And so sides. joint on it's

Eric? any in more, I And just to could that [indiscernible]? may what fee CF to one start your to when expect If that color on add sneak do Global, you revenue, add

very trading the Europe. in Global large space likely real CF We some mean, I heft done and the an years the This U.S. at that over the Europe. Yeah. It's particularly for of historically in and gives acquisition some in Asia. us in attractive close that end weren't opportunity. is outsourced a credibility will We've us year.

and range what XXXX next it's So we between be a to million to really $XX business like have we're I revenues million of adding And in think we're what that the looking topic. $XX at year. a

Now, we've what drive distinguishing Global product and of got we this growth. some but -- around what of purchased in in build today, is lines, have lets then really real terms CF some us capabilities, incremental that we

something enterprise And excited we're so being fits about outsourcer. very the it because into

do do small it the well for middle and front accounting, -- You midsized CIOs of And and office, very and custody, our positioning office, companies. a fits it's it positions -- really we that for with strength.

you. Thank

you. over for Mr. O'Hanley to I closing questions are will this at the no turn remarks. further time. Thank call There

for on thanks operator. And Thanks, call all joining us. the to

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