State Street (STT) 18 Oct 232023 Q3 Earnings call transcript

Good morning, and welcome to State Street Corporation's Third Quarter 2023 Earnings Conference Call and Webcast. Today's discussion is being broadcasted 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 the expressed written authorization from State Street Corporation. of website. will broadcast the housed authorized Street State only this be call on The

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

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

During questions the Q&A, please then limit yourself to and X re-queue.

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

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

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

Now let me turn it over to Ron.

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

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rate backdrop financial bank global Now July the markets turning positive rate quarter to softening and investor hard for concerns sentiment was by decisively environment start third as continued for economic central and equity of impacted a a negatively progressed. market turned negative an in interest Against Global of the data, higher economic market performance as mixed quarter. longer was hikes the landing.

while highest equities reaching fell, many its the result, yield levels XX-year since reaching for continued U.S. XXXX. a years climbing As the level bond with global not world, around seen yields

these quarter characterized volatility. currency continued Despite third the relatively factors, low be by to market

Slide to review you I Turning takes highlights third through Eric more of our the detail. in quarter X our investor with will presentation, before Beginning performance. our financial quarter

share was growth item an driven repositioning, $X.XX loss Third excluding year-over-year, or EPS better fees, from significant period, portfolio sale fee quarter common fees total on notable in an a repurchases the front higher This revenue in investment revenue. XQ. reflects fee other items, in increase X% excluding share revenue. and notable servicing a during growth was and office earnings per our was fee increase a $X.XX, which by and software with coupled data management

with us to benefit invest the of market That to pleased our as fee and that together, which the ongoing of than businesses. within share well expense headwinds improvement to year-over-year Taken trading as us the repurchases said, allowing we lower initiatives, NII, revenue in impact growth. contain productivity growth in businesses offset expense transformation continue while more help our are and

to in largely asset sales servicing markets. ambition recorded associated demonstrating periods official of be private ability with and amounted over in third performance. Services, business stronger new to servicing $XX quarterly which achieve fee future recognized years, total at $XXX wins quarter, revenue to we end, momentum. quarter our the XQ in trillion estimated million, driven to level wins fees is of the servicing to our highest annual X driving Turning and servicing of Investment new during wins billion by our Within AUC/A increased asset $XX The new institutions

for continued Encouragingly, wins, for Alpha's the including existing markets We in first investors. our Alpha mandate most new recorded of Alpha relationships private mandate deepened XQ. and momentum one mandates X world's with influential

the for investment across we drive areas as full value strategic key franchise areas we regions and our During a aim potential our to outlined State focus services realize number third of product proposition. of Street and Alpha the opportunities quarter,

Importantly, we revenue and at actions are aimed share taking gaining growth. reinvigorating market

high-margin plan pool, performance sales back-office are our installed We scale revenue quickly and to custody executing our has largest it is drives against core ancillary as revenues. significant improve

illustration no sales office discussions premier in expand quarter, a the an adoption momentum back-office custody front headquartered third office approvals. global Alpha, Switzerland, until necessary to of in relationship in manager entered Alpha, our the by with into in of existing power and ] asset [ front, Street resulting State the subject providing services. relationship had As Street Vontobel [ ], began agreement the middle an in XXXX State services Vontobel middle and around of in back to now our our

for strategic Alpha to full tie together clients and rationale grow how breadth illustrates Vontobel of broaden State as value of can proposition and wins essential deepen in Key from Street's Alpha positioning true depth front State [ Street as and State further the partner. demonstrate such the clients' relationships, One confirms our can a our It capabilities the back. ] client solution of Alpha client establish, how Street our and

back Accelerating services time line, cycle important even revenue office and fee to the growth. particularly Alpha implementation strategic drive sales more remains priorities

At to office to year-over-year well $X.X a the front our record XX% data businesses. revenue office our and of CRD at cash by under reached supported by quarter, By pipeline. strong end, the Global net end $XX Advisors, software billion inflows in of has increased XQ. recurring business $XXX quarter trillion perform to a assets third management annual continues front and software Turning million. data for and

market of with Global inflows strong net Importantly, by environment. higher coupled billion market, was sentiment performance, market in ETF offset $XX of share expanding in cash partially with business, Advisors an in by performance yield business risk In our outflows the off gained institutional flow our XQ. total the cash investment quarterly the business driven aggregate, Record XQ. gathered in in impact in coupled

U.S. in reduced continued to outflows points. further quality in continued our commitment net at low-cost bright modest XQ, generating To franchise our saw franchise competitive the portfolio spot, $X growth market aggregate gaining XQ, in inflows, price on ETF ETF institutional we share. our demonstrating net ETFs, be a low-cost drive Spider investment solutions of billion While delivering to price XX spider

Street Street's year, momentum, leader. business in Magazine foreign managers After to highlight proud provider that again on and by business #X the the ranked Lastly winner named Euromoney recognized exchange categories asset X State Clients, industry for Euromoney am Real across for Best Money FX as Bank FX Bank Bank including FX Best Best FX State Real Sales. Magazine been awards, once as Best has Clients Research, I to XXXX XXXX, this Money Venue for being FX FX

our positions balance and capital liquidity Street's strong. to condition. State sheet Turning remain financial

that the $X.X and capital share of at shares of to and enabled shareholders of Our above cumulatively, $XXX approximately common stock a us capital million quarters deliver billion our was through returned of we strong shareholders. a our end common September, to $X return well CETX declaring to capital, goal ratio common to repurchases the dividends. This returned against over X quarter means billion dividends. our This stock of combination strength buying XX% last end, our In our has $X.X billion have over back of we regulatory of minimum. XQ,

subject to As market billion up in conditions look $X.X we share intention our to quarter, existing to fourth remains of it XXXX, repurchases for ahead the our other continue under and factors. common authorization

remain to To number the third actions revenue Investment challenges growth. momentum of conclude, aimed growth the plan at by underpinned environment for and driving simultaneously end, this To dedicated a in stronger discipline quarter, execution. outlined that execution and Services of while business we amidst and the accelerating our business, the sharpened improving accountability improving XQ, for we fee the market sales in

Our on high. expense remains also laser focus discipline

We investment in quarter-over-quarter improve productivity productivity our third at have efficiency while and processes operating of In aimed our and expenses greater in multiyear our enabling track our we our growth. efforts well-established reduced our even realize and a announced business. to quarter, record the model, another step operations transforming improving re-engineering

streamlining our one positive the global have country. of of operating now productivity achieve State part This of full are enable in ventures the to ongoing as will savings deliver our consolidation Street's in joint operations part fee to ownership operations our India in us of transformation XXXX. assumed and and As initiatives, transformation plans leverage we of and our continue productivity

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

on on We to was of everyone. good Slide review Thank morning, down year-on-year repositioning impact which in begin the investment EPS on quarter periods. I'll you, benefit right-hand due future third million reported the $X.XX, at of with repositioning, results the the $XXX excluding loss connection was our Ron, EPS in sale the our X. of $X.XX, can will side which of the which up my portfolio, see year-on-year NII of and page. you

to Turning business. the core

some the at to in as quarter. our performance total investment left management our in well front, us mixed by enabled saw can [ lower backdrop X% well NII in the revenue the markets Global of slide, macroeconomic by fee you fee on As back-office offset driven ] performance global given solid see growth and the of grew we This as industry business Advisors. the year-on-year, as as panel services middle business widens

in focused managing in costs of expense environment, positive savings growth X% achieving part current deliver to as remain on a operating limiting leverage productivity this the we to plans and quarter Lastly, operating just fee XXXX. our

Quarter-on-quarter, increase Turning Year-on-year, driven X% now equity client AUC/A and in business. a net flows by increased and year-on-year the new new levels increase AUC/A business. We saw primarily higher on largely and was AUC/A period market end net to to period-end XX% by Slide X. due basis sequentially.

been net the This the have right flows as industry bottom positive, While of industry. slide. you the business loss see settlement was current to servicing the headwind leads asset muted, on new risk long-term management the in across can

was contributed cash Quarter-on-quarter, XX% At of market our competitive AUM Global mainly quarter, a perform gains. generating to record levels. quarter share the $XX the franchise end down by due AUM and a to strongly, and billion sequentially, billion. market quarter inflows increased continued to inflows Notably in net to levels lower year of our was increased performance period end X% ago. market primarily $XX increase as driven relative period-end Advisors, higher year-on-year The

Slide to X. Turning

servicing year-on-year, left primarily of disclosed client partially and transition. you'll markets, client impact equity the offset normal and see X% of side currency and the business new adjustments, up lower previously average the net a higher activity third page, On by quarter from fees pricing headwinds translation,

primarily client and the higher fees offset adjustments client and result equity servicing total markets. disclosed a were as by X%, previously activity partially Sequentially, down lower the of transition, average

of continue to client activity transactional year-to-date. point lower is has which fees minus we volumes, year, plus I've effect the The servicing impact X point percentage this the over of last years. As past see levels year nature the full to business. mentioned all of X% X the a over X leading headwind and servicing flows, of cyclical percentage to to ranged Part X from on impact

fees, office back driven generally business. services, sequentially, servicing proposition, of X% total part which new is largely On consistent had growth. Middle were services X% fees. up office year-over-year net up Within office fees good Alpha by servicing basis, with metal were another the a quarter and of

roughly importantly, this the in we onboarded future We $XXX stronger sales won we're primarily recognized the momentum AUC/A periods. These performance. new AUC/A. in of asset we panel $XX achieved bottom progress billion be quarter, of segment. new the million wins quarter, the management annual the saw quarter. the servicing servicing making we of billion client of highlight $XXX fee as wins in We revenue business will which On towards mentioned, in Ron And this underscore page,

our While in year. range a of disclosure is we servicing described this annual wins sales terms, indicate that we've in AUC/A the healthy level expanded historically recently million only $XXX to

million to us to installed against as fee You about of installed We benchmark. revenue about and assets of trillion $XXX well. can be this be servicing $X.X measure now have

Turning to Slide X.

as reflecting inflows. offset previously shift $XXX of up quarterly were by a cash X% into fees equity Quarter-on-quarter, result partially management and levels, quarter were fees a higher year-on-year, management NII. average higher Third certain management equity primarily X% market million, market record up fees net of levels described

its right on see As well business businesses. management saw inflows gains very strong you can of broad-based across had positive investment net share remains and in franchise of ETFs, momentum suite. bottom we with flows consistent and overall spider low-cost neutral market positioned slide, the each but the portfolio our In the

suite of the quarters of dropped our about strategically in and expect we low-cost coming the products growth fees know, the you X/X As on from action. more

drive business, both defined the billion contribution driven notwithstanding of client outflows fixed momentum. in-sourcing, to and Institutional income in net by which quarter, index $XX primarily products strategic our were In our continue

record financial system. you our we that billion captured Lastly, inflows quarterly $XX volatile some as can of movement across Cash franchise, the in we the of net cyclical saw I'll flows cash cash cash remind be just of quarter-to-quarter.

to Slide now Turning X.

quarter trading and reflects to down period Industry to XX% X% decrease volatility opportunities to growth sequentially a the was volumes. the sequentially. markets fewer lower period spreads. year year-on-year, was emerging partially higher to down and Third X% XX% ago, trading FX Quarter-on-quarter, Relative markets is revenue higher up ago relative to down primarily volumes. and lower developed the FX volatility, is services mainly XX% presenting spreads across lower direct FX and X% year offset which by due while the a

due down as year-on-year activity lower lower and balances. finance of were to shorting were U.S. and equity drop-off specials. result primarily Securities revenues activity recent and Sequentially, lower activity industry down of special XX%, seasonally revenues a X% agency the

X% down sequentially, change of quarter CRD, but and XX% accounting due million fees year-on-year, revenue fee to credit increased were tax negative investment which primarily shortly. Other market-related $XX and by turn driven I'll year-on-year, the adjustments. absence the Third to software processing up largely

Moving to Slide X.

and for the convert data higher on-premise that services continue more X% revenue of renewals. partially to implement durable accounts environment, clients, clients office now primarily of and SaaS we XX% which on our left result see You'll as in revenue about software a as the our by panel more year-on-year, software-enabled increased growth and to offset front professional fewer

by down Sequentially, XX% was renewals, front primarily office lower and software by driven revenues. partially and revenue offset higher on-premise data software-enabled

to development Charles pipeline remains River grow sales products. for ] and strong Office our Our Solutions continues from [

in of the some metrics panel. other right the to Turning Alpha business

first X pleased markets notably, we are also more win. private We our we Alpha. wins Most in the had mandate had quarter for for Alpha

We advanced institutional also income fixed CRD's meaningfully capabilities.

Turning to Slide XX.

The deposit Third XX% largely interest rates. deposits by million. and Sequentially, international repositioning. year-on-year continued decrease decreased offset and to lower interest-bearing the the decline balances offset driven lower NII investment year-on-year in partially higher quarter of rates, portfolio X% the and including balances, average NII $XXX by shift Central to partially deposit from performance Bank by interest was was shift, mix to benefit the noninterest-bearing primarily sequentially hikes mix due our deposit in higher average

offset The levels some than NII quarter noninterest-bearing instead. fourth will somewhat be expected were better than and the impact results will to and of repositioning, due expected deposit less repricing, client partially coming down which portfolio by delayed slightly

to the the were cumulative lower X% third the our this sheet XX% quarter-on-quarter. client continue with for right be betas range. U.S. the On show much Cumulative start during to the we XX% declining since quarter betas same currency slide, in the deposit deposit balance average average XX% deposits while cycle, period dollar of recent of foreign

month, Finally, to advantage portfolio which equal, NII higher both an and spreads, higher to take the accretive $XXX per investment of as previously towards repositioning million else I end yields drive range NII the year. million executed we and next disclosed exercise mentioned quarter capital earlier, $XXX accretive of should of all last

to Turning Slide XX.

in productivity down of efforts, and expenses, increased our items, operations Sequentially, continued actively excluding and manage and automation. quarter optimization Alpha, third the markets strategic investing X% company, quarter were expenses and the carefully notable we all as technology including expenses X% elements private while Third year-on-year. savings

and of our also Sequentially, in salary quarter, X%, brought and basis, employee On a currency driven with compensation higher incentive however, increased inflation, the by we we increases performance. translation. headcount this headcount reduced associated line compensation impact year-to-date year-on-year, wage with line-by-line down primarily and benefits

from X% expenses systems and vendor up expenses headquarters technology Occupancy in-sourcing were due initiatives. investments, increased fees. increased mainly Information other optimization and and and higher savings communications reflecting our costs. processing relocate partially mainly X%, X%, infrastructure benefits Transaction building subcustody offset mainly professional marketing higher to higher spend efforts, we and the increased reflecting by vendor as X%, ongoing

Moving to XX. Slide

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

see, we the above both which our remain continue can capital with and navigate targets operating levels, very to you environment minimum. As the strong internal regulatory

by CETX of of modestly end, ratio standardized basis quarter-on-quarter, share XX% our RWA, continuation As points the retained quarter by of driven down offset was our partially and higher XX largely earnings. repurchases

healthy was XXX% for Street for the Our State State XXX% Corporation a Street and and Bank LCR Trust.

quarter, million were repurchases dividends. return shareholders, just pleased share $XXX to consisting of we to billion $X common billion the and common over In roughly stock $X.X of quite in over

year, XX% Over repurchased of last shares approximately ending September XX, the we outstanding.

brief before to Finally, thoughts outlook. a closing turning few

Our in $XXX we third reported goal executed solid our on wins us wins quarter was and sales to invest fee new capacity have towards while of as X we in revenue fee seen the plan to look business. X% discipline as in We to for XXXX. our improve year-on-year. growth million expense you quarter years, in the the performance with fee of $XX do in demonstrated servicing And million $XXX million continuing last servicing again

down will from quarter-on-quarter. is average implies the X% equity the about to quarter. broadly line expected quarter provide interest current Next, on quarter-on-quarter. remain in level, a is X% currently markets fourth also about flat are markets be to rate end, I'd current outlook with thinking down now We Bond forwards. average daily macro which our At assume the global to like regarding our

also momentum flat approximately performance on revenue expect sales fee to strong do year-over-year to a flat to we revenue quarter. year-over-year year-on-year with the the overall be flattish be similar driver to as in what X% We and fourth XQ management fee fees we quarter be basis, to Regarding fees we saw this expect expect servicing in sales business quarter. saw the third to we similar up

We year-over-year, businesses the and our in renewals also given will XX%, to down around lower be million the markets on-prem in And million expect expect at modestly the line XX% and due largely software other processing fees SaaS to to expect revenue we $XX fourth new to that and $XX to come up be we of quarter. timing the expected volatility installations.

of NII $XXX $X the This to we the expect -- to out of be mentioned. noninterest-bearing which million range expect continued the XQ XQ now of NII, expected pricing, middle and $X the rotation we to $XXX noted, averages. we billion Regarding previously previously NII billion includes now about stability with deposit deposits towards we million in of total impact deposit more but

Turning expenses maintain controlling quarter-over-quarter. in environment flat to remain expenses. focused to in on this relatively We costs expect and XQ

adjusted always, an effective and the tax keeping is with that, me And XX%. And we regard, Ron. call let assessment. an on notables to around for will be FDIC back in XQ As ex expect this the rate basis, our on we this likely are hand eye

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

[Operator first Instructions] Blostein Sachs. Mr. Goldman comes Alex from Your question from

your management maybe couple on was hear can earlier cost around XXXX, Ron, hoping of I operating which already. very comments to very we a good encouraging of Eric, into years touch positive leverage definitely is fee after

flows, case, is look revenue And out to and to positive as than leverage. you the range the you operating the still room So of deliver between be outcomes what there if is enough customer into more you're revenues proved 'XX? about for I fee the fees assuming guess, as base that think markets uncertainty challenging

One what feel doing Ron. that good on a visibility comment Alex, perspective. we're mean, quite around cost largely we like Yes, got facing we've X it's we're from is things. I

our the in initiatives So that underway XXXX while got we into we've on will revenues program program in That will XXXX that got also managing costs investment a continuing investment some place. we've like drive beyond. includes continue and of that feel investments series

the our QX, the And terms pointing second and visibility around just to of on the just made have thing of we we But 'XX. sales effectiveness. to sales on you actions taken we've in is Eric the also, had some in note the results strengthening it's that based

confidence developing processes. sales a is and set nicely are in a and expenses those So X what we things believe pipeline capabilities and of

do mean, market positive I obviously, based but operating fee could not a reasonable tailwind. believe that's necessarily and one down, forecast markets turn necessarily We a be going upside leverage. to achieve we on can everything

new helpful. definitely disclosure on the That's great. the And I revenue and backlog, backlog appreciate the

ultimately, So you get of can backlog cadence of maybe to that going still into us million some to outflows to you [ maybe related 'XX, revenues largely of course and that's you BlackRock over help revenues. of enough fee the within service the how that $XXX ] think then going And that, of some do that be and understand expected of that quickly sort spill some to offset 'XX. Is is the of expect? will converted

Alex, it's Eric.

about that next texture sales, from couple the fourth come is of in Part right, quarter matters the is revenues, you and directions me right, as actually answer in installing of of different fee because quarter year give of because to Let matters what some go-forward subsequent think backlog. quarters. momentum what the few into through a sales we of new sort those maintaining third some part the

our then we And sure September, activity. that effective on in very talked back making retention we're as about

of So every matters. those one

in of said fees in we of the implementation the and backlog, trillion the of each backlog AUC/A basis. on terms there's The different revenues bit a a little servicing north $X million $XXX is the In on regards.

through in the about quarter. In XX% of revenues, X%, think come specifically terms of will that fourth we

So that's guide. in included our

and XX% to the come $XXX through to in expect year then We balance XX% the of million XXXX. next

aligned The -- So kind we'd with mix and good it's AUC/A what little little like. a a implementation is quicker. a more of

out. closer a they as That's we've move around play But will now. But that visibility those the XX% sometimes in good to quicker, fourth little happens, and lower. year. it's next got quarter XX% Just sometimes around

one that's services, the implement, sales around And particularly momentum been going as we've quarter to of to the provide are and what on back with XXXX. that third first into was some know, office And particular, lot half of and but our office of onboard back fastest pleased you in services. a

Ken question next from Usdin Mr. Jefferies. your from And comes

what that Eric, that just the to end walk year. through you're wanted to talking middle us at follow-up travel. regard zone then zone? for next start and that year the positive [ you that of to into getting direction of in expecting moving just upper of website walk factors repricing the kind next kind one parts. right or just the [ be are XXX fourth you to ] NII, turn to Like to of exit quarter ask perhaps to to you're either with the Just as ] year I deposits us through the

Eric. it's Ken, Yes,

to As quarter uptick you level some this we the of see, there from fourth into factors stabilization, matter, good at next first are in cycle from NII of for a a and see that we of as rationale quarter number transition declining especially year. point the some

of the into next me how the but let fourth call. especially year. our exactly out around. moves described still sophisticated got through a rotation of that [indiscernible] some clients, quarter, see most them, just It year. a that, flatten go We'll I to expect So for that last It's starts hard our noninterest-bearing and right? in deposits. expect beginning repricing, We've largest we quite We continued NIB, There's much to when. amount of

bit that. we're through of a good And then

executed we in -- on -- We have quarter. the more third of it some

We very fourth have we and in good expect visibility the quarter.

way the kind bubble a up and effects is catch its of of works so kind the through. And that repricing

the we billion portfolio side, bonds or quarter. portfolio and the have of tailwind role investment matures investment $X $X then the On billion

come XXX You've new roughly got are than basis maturing. on at the [ X points the sometimes ], bonds ones higher that

a what's so positive us And trajectory. giving that's

and a that actions to we we of X starts it's the lending think our growth the shape we to control other get of quarter. from bit factors NII quarter fourth plus can that so first really little And of some as stabilization

But know, the update There will of we'll depend. at trajectories those that. it are as and are we all movements. some But continue point. do to be And frequently expectations in you public, as this we and will our as you

better you a little implied Understood. And one and I XQ my just a better you're slower thought a the had costs and little second growth. is than were, probably to flat market of the thought also, rate year-over-year think, than

you And that Just slow wondering, as have we of go organic think something forward incremental rate the as is we growth anything about to done expenses? should well.

we, we've of Ron. I I to about, organization. mean, think, really you always it's number ongoing of as actions got Ken, set is looking an that a talked there's throughout underway underway productivity Yes, the initiatives comprehensively

end and Some now, things early we mean mentioned I at to places combine which It's yield can look costs are that more will enable this that And throughout move end. create costs. of to throughout got comprehensive to business, excellence is done operating India. start and to be there in there. before goes -- back on of JV where models into bringing going we where this activities, year. in the next We've We're repetitive there, redundancy days the world results center to some things, JV, India India us inside, the a we own down at take our our and to a of gets underway eliminate eliminate take work what's lot down had going able oversight looking so -- we'll are

So series things. it's a of

Some of been has lot the easy them already work of -- a done.

keep statement notwithstanding a underway of see the for we realize such So reasonable are can that our in the that and have can make things visibility that check. start been feel business cost to we we But continue the we significant benefits of we'll work these that the investments it. been in we make has while, -- we to some that

down and individuals find we bear that to mean the of And time, we or team actually, have what Ken, what in efficiencies to need thing I'd about or is reallocate we've areas. the talked need the that I and in last different to do people actually features we found we quarter our talent some other we reinvest of business those just freeze. hiring part outstanding of same to is add and our need that got effectively we We on is that And so areas. at others. the different over

been effective that's manage It so And team need regulatory functionality, our is do we reallocation all while the the the been work, our an hard tool stage resources. to freeze that's actually in and from products, and at it -- human way effective it's that born to actively requirements is of this a forth. from us But for sort we means invest in new this cycle. for very so still

arose what is started Yes. what Ken, COVID what of the think XXXX. interrupted COVID. going the disruption, was coming to occurred that resignation, back now I everything about talking this, great continuation the to we out we're rudely The by I would and that we increase where some of That add quality that you has to needed the for cost were stabilized. of we quality That's issues of the led overinvest make all turnover up that saw. normalized. with been kind that service seeing to Service that to and of out

period. started saw And overcome what on would path that and kind in we 'XX, that we the the XXXX in so we're I of 'XX say back back

And question Hawken Brennan from comes your next from UBS.

year. in expecting are the come stable Encouraging range $XXX quarter for typical the your fourth within that $XXX that see middle the still to we And Eric. thinking to you about million? when noninterest-bearing expectations, will beginning expectations that next embedded of deposits One that But point of that your you question to are seasonality you is on think in through? of hear find here a XQ,

than a Yes, that seasonality Eric. the a has seen bit, typical. or it's with little asterisk we've the sometimes that but it's stronger broadly, sometimes a little moved around weaker Brennan,

of So we uptick in an total do in bit normalization a deposits. a see

we'll uptick, we'll But based really our stabilization, base. on we'll client analysis so quite guided to deposit deep an of maybe this -- is we've see And see.

manage dollar, it we Remember, U.S. manage of on currencies. each the a we foreign

-- a million. We have just average in trends example, a bit. line accounts and think is The largest IV in most quite tend I for down right? have sophisticated evolution. smaller ones and have the largest, size to account The XX,XXX flatter We've clients accounts, the [ seen we come ], $X

we just update as careful, the a But amount we of of just of So we to see here. take little is seasonality. a the of I we'll good some go. pricing inflection which But based right? of still balances think plus but time on visibility the months few guide and A There's it we started quarters. work want some bit be to And through. amount playing amount in through rotation little into, and some out. next bit to There's it'll coming that have

Okay.

for then Great. budgeting expense what a this going Do question. could you're Okay. following at you -- point, Ken's growth any And XXXX. next on preliminary through be I'm at for expense growth sure process have year? you maybe operating for expectations little in bit looking the up the here

We us and our to I it's gives to exercise. run line leverage healthy the way actually expenses. that. July, through at through fee feel is we've the stakeholders same do -- business and strategic early time. and need a we shareholders a is think through top path operating the both we a September, in and what August that the that we believe, Brennan, confidence And necessity certainly gone various on do summer, need find planning got for we've forward, and We to on of the on our that. way a

of get plans, function that, by that. business, have by to is we're sure soon little function. a part that making It's but through detailed what business And working actually doing we're we now into

we to run We're What are do -- about stage add and do out our we alternative scenarios. have We careful spend. even We developed that -- also gate. going spend year. contingency with we to we meeting plans next

right kind set of of now, a guidelines a in with lot we'll on full and there's back come guidance and going January. So

good -- that fee that for a here think well. is leverage will forward a operating for guys and it I think and got be to we'll I path healthy confident very we've think, we're way -- as about for But you us

Evercore. comes The next Schorr from Glenn question from

you of a weeks little comment years? us. time advantage curious talk you and how the sprinkle market, about to today of both Could the this all our servicing Can about for and markets, be for Just markets a this a in next like in the growth little from outlook life on handful industry to standpoint that. bit. a trend, bring private clients So what whole of seeing passive all that access over is you're and the kind private that's

equity of Glenn, pause, the managers, may coming it's growth seen of asset a large of recently, equity private many more of if fundamentals point that and actually Ron. taking private is Obviously, lot the in and abating. the but credit a markets you all -- large of private. none be look you from multi to have the of fact, kind some industries those their private know whether the growth Private we increasing. at And infrastructure, that see a of bit

Much today lot for business. experience few LP expensive locations in there's remains not [ very serviced standards investors. ultimate And very very is ] and business in of that of in-sourced. the a it good the gets A

was it's arms becomes to firms area around ticket the [ fast [ XX is average LP was get years for ago, an wealth institution. because growth ]. the ] going for very fund So fund ] investor, It more [ sponsors, and of this us the size LP it XX, for typical down. the a investors sovereign a actually their pension [indiscernible] it actual --

the investor pooled some average some fund. of person that's a affluent is in Today, kind

all And is of the And it, technology investors. as for quite thing as And this us. not high demand is it. as kind a both an with in lot of right just so very one firms actually and associated in important, lot The in focused that of area. but increasingly, providers, becomes investing all Alpha become multi-asset, idea important. front-to-back these getting a on We're also very that's

private the owners the just but funds big not the is private asset also big here and sovereign opportunity investors, the here. providers, So wealth

very as significant yes, So see opportunity a for us. it we

little has broadly and the And on expectation just elements our our our next to XX% in bit a add our this. growing We the in XX% Glenn, And base strong range year. which X%, of that of servicing based that The to is markets pipeline, are a a which the described the been is year. private area. performance, kind quantitative in quite client standpoint fee From world. -- we should growing of be around find

large we're and to in have privates, traditional serving so focus managers as and Part of investment in products we who both right? and increasingly private a core asset serve wide many processes global organizations, that who the us to right, want So they're processing. is because opposed partly their increasingly, coming because classic range, to on what

as And see opportunities segment so outsourcing that more more we from for and us well. and

to one that just follow-up Maybe all detail.

of on lot outsourcing. the offshore the early were You

outsourcing this you fund in over rate you're early think competitive a the landscape. time. it We you front? you head don't see on edge private your have helps on early were hedge same You Do on just have and growth sense that you Do here? start competitive a

I'm thoughts. So your on curious

bit Glenn. little It's a hard tell, to

think that we the traditional amongst we asset early. -- I that servicers, certainly think we're

activities as got administrators fund And we focused ones the kinds terms some full that tell, some certainly, there. there. includes the of a very far in that only solution we're offering of You've do narrow of front-to-back in can as data, out

in general, think So early. we're we yes,

Stanley. from Ryan question Morgan Kenny from comes next Your

newer on existing your fee or rate for industry currently in And a update are rate? has fee contracts than while. fee wins higher been the So you're fee of rate seeing us repricing? coming a what at in you terms seeing rate lower the servicing pressure a Can

industry couple of The been years. cadence us, repricings Ryan, for stable fee think I Eric. last overall it's have of the for the

but level, or through from back consistent a was the phase XXXX, they've what XX know it is in so last been in you headwind X, different that X% not that went over which kind higher years. As we relatively of of repricing,

relatively been that's So stable.

The of fee good activity, servicing, tends the process. fact, of of that couple our it rates average on because business. quarters, part that of be just the And new manual-intensive average rates rate for business What had we is is are business. discussion last on have the where fee seen the fee fee just we've privates, in nature above very new seen the in multiples rates And a we've to the we of comfortably the seen.

fees bit quarter, few take do quarters wins. of just you and can quarters of cautious last for the comparison you we'd a that doing view. but last You take of about of kind to every be it get AUC/A, -- And the little in few

we've in that reports And our mentioned in year, quarterly in ways this particular.

both complex think clients. fees ways, middle back find and disclosed have the we AUC/A the with I to in front across right? to that the So able but on been have which some a client is Alpha, base, the office, we've office bring more what So side, we we we separately,

quarter -- just us quite that is year, quarter been that area industry. well. of by much is fruitful And kind rate gives we've that together of of then for that's higher third revenue the alternatives very the and a as so us. a and what seen is virtue the And private we the into And some expect of this momentum in fourth fee

volatility about? And helpful. driving the a that there think function it did of that in and AUC/A over average lower else down number anything that? bit. there that That's servicing if we come Was a quarter, rate like we fee at should just look the anything timing? looks Is is Or

No.

effect are the right, the equity kind in at of and this rate natural look management remember, markets sitting schedules aggregates, fee kind because right just of you just this you If they're in the got when are quite like up, of structured, where have you've asset business. the are not how they fee

been seeing. that's fairly line that -- been with in and So that the ranges expected was we've

Brian Your next question comes from of Deutsche Bank. Bedell

to servicing the point points be would the representing $X.X basis at to follow X last on that billion so. opposed million as to $XXX math, the over revenue the $XX you and this, one, appropriate more over actually $XXX the look than of on, or that, if a basis installed to be just doing correct [indiscernible] Eric, if can Just just million is on confirm and and way the like trillion -- that I'm

business? what's guess, market all is am for, that correctly? servicing and first at that fee types of that type all, run -- of differential a new is that I private some I I of rate And guess, is sort looking So I revenue sustainable in characterized driving of it as revenue, we guess are --

sometimes disclosure you answers glad with and really I'm Eric. because that asked question it's simple very textured Brian, ones. new more sometimes comes,

approximate look at time, the rates what AUC/A new I'll our provided wins. analysis by is an average, that will our over you've on So of fee wins, that you done stress the if wins which,

challenge remember what business. win existing on is The one some is in we AUC/A any quarter, of

front one of we Those to Because already base. and middle relationship. managers, that for AUC/As in doing already So Ron we the had global mentioned both Why? our office office processing added been them. back asset were

be apples to cannot and way, AUC/A. So fees in of That's quarter in any oranges. of a the new compared wins kind those the

On low we've and a adding we a hand, of we're high, quite we're last quite adding that's the couple -- of be service, over one fee sometimes the small quarters. had because where a opposite AUC/A that's other might just right, the happens, and some those

to manage quarter of gives need an of a growth the kind at rates So I'd we against maintain to. revenue a over the the just to do is I is sales cautious at a about you the And momentum we time, you in amount encourage we'd math. be create of the that of But very through servicing to revenue, that the think can I'd look servicing of right, you that dynamic quarter-by-quarter revenue. and base indication take of healthy time. net a billion encourage our effectiveness million the wins can the look we basis $XX that on what against fees ability retention fees, $X

in most the better versus AUC/A indication, you'll a There So momentum. do I AUC/A spend of wins direction think, encourage another But do to I because that little gives to I'd of that a encourage you you time. the it get our you can base, indication. bit you

to lower incremental follow-up this U.S. some maybe just I deposit we see non-U.S. more on the the as heard deposit XXXX the be aggressive we've maybe well in for And Europe much? the then move And custodians thoughts the catch up And through or the to we significantly non-U.S. higher sort as deposit potentially? U.S. into than other U.S. data potentially and this into the more so differentials between And or helpful. see versus moving markets and on of from non-U.S. of beta, -- almost even U.S. super That's should betas longer terms being not Okay. would

a current the part it's there's later, go and the there betas side, in to U.S. of the in think construct currency we same see more some read. around little through differences so clients structural in interest-bearing market deposit that construct. And have harder so, an are on U.S., well feels Our see. in and least cycle started like We at the the It and we'll indication, it to we're just international just between even U.S. the the you've that interest-bearing noninterest-bearing non-dollar for some the got deposit internationally, versus cases. and the is you this -- to do tend

a So more straightforward. little more little it's it's -- a

in cumulative described, XX% I've XX% the deposit have to as U.S. in range. betas So we

levels the -- kind can another and the another it the that XX% same starting see. let's on U.S. the reach we'll that it's points, others competitively we indications we But go have. a more up And of see priced have market. both in way XX up to not you based cumulative cycle going maybe XX price up XX little to points, beta. as the to In Europe, we the of XX% -- percentage We we we And in it's finishes. in we're but the range points, off. level will expect X, float say, go Could as ,

and -- to sure the in to tailwinds share supportive of have how between international we given areas international our international clients. to to currencies. to plays in that of both But -- We've need of some one balance In the currencies. NII the some manage our continues some U.S. of us. the the obviously that So that composition way continued ways, non-U.S. We fairly be that's that good in U.S. that's currencies. different We in trajectory. for and make positive of sheet, know with our a

from Ebrahim of comes from Bank America. next question Your Poonawala

heard completing follow-ups. quick I buybacks capital, in of $X.X to on billion year. couple One your regarding a up Just you think for the

Would you some the capital close paying Just with thinking rather CETX with sense as and look your the about at uncertainties going buybacks just of some give excess. target. next year? excess of amount into management forward to XX% are How capital to continuing out you you any operate to a relative us macro

manage. and start is the of -- uncertainty, in the incredibly most We're Let to facts we quality. of upmarket have what on capital, it's elements and thinking of levels right? We our the earnings and Ebrahim. we Eric. we lot spend important about what And me the lending quite economic liquid, sheet, confidence very in momentum, the of based a are how the high on right, book, of Capital And is one environment, earnings a it balance is can sheet. see strength circumstances, that, which balance our time

So many together. things come

tend above of what is in and got XX%. because with on we've that way. think target that. the that also little the laid minimum And been our of the a over to a both out XX% We bring page bit history at thoughtful and a last in we've years pace way range, partly we in requirement X%. a materials range the in to that buffer But I down. capital on run is We've above healthy very X

a given I to then slow what see think what you get going little you'll is know be markets today If because bit. careful. this and say disrupt, we're do, I we I us --

But in middle requirements. want you that's above keep to extra, for still bit that If you to market and the range good towards, you've because place X.X partly a in the confidence confidence a points of got us go the of other there's lot a aim fees of little is percentage that direction. might

On like like doesn't run uncertainties that would it wouldn't right and end appropriate. be it the range right? lower feel That some now, the to feels other -- in world there the are of we should hand, be down

I So capital pace. capital is $X for say. like at a last quarters, to been pace what continue few the I'd certainly returning We've range We there's more. a at to guess, reason, billion in return or

of of the XX%, to You can math down middle range. kind of the do go the

matters from that par provides capital accretion. RWA that earnings. there's And ] tailwind portfolio management. AFS the then [ a There's a pulled there's remember to the got and You

tick You a bit saw RWA this little up quarter.

an is goal and well. into continue Our that as obviously advantage to to turn optimize RWA

authorization quite that. So going healthy and quarter. it's of authorization, the We've We I know deliver good buyback think, shareholders a a plenty fourth important we to see to path forward. into on our have, got

point And you're helpful. NII as asset guess, management, are reprice That's thinking things [ on around or, securities at about I'm next any to a how of be question about you're duration. we ] the the the and on? I for will the that willing ALCO the you're few thought informs take duration back quick holding the book duration the as just is side where thinking to there -- relative follow-up kind book, cycle, within wondering years we evolved just how to environment process the adding might is,

above. Ebrahim, is the answer all the

of duration. to us a would right? some factors steepness we to against one encourage want, more to ahead that. rates, to every be more the matter. that add the So right we curve, those get If protect you -- yield duration ideally of we At what need little falling right, may to want That's time,

to could want move On the other so you further, careful. and upwards hand, rates be

portfolio. I configured think we're careful in how we've the

do but then that focused us some that repositioning. so also we duration of foreign products towards of on curve, right? $X the the of curve, saw the treasuries the and mix also it's end, or an there's points the we [ work through of curve we duration agency convexity have of the there's the billion bonds, We then then position we've And You And curve. do other front the are U.S. a duration ]. billion at like not $X a average the reinvested -- where on. some whole unwound currencies. the across But put just of clean the We window -- middle euro and around MBS are

-- discussion, basis ] a of an there's both active basis an and we'll a risk range, we protective we will I on that think be say, but have, both So on management wide also that one think, [ it quarter-to-quarter. Alco economic at think and but I'd it's

Steven question Chubak comes Wolfe Research. from next from Your

helpful. level Eric, frame a follow-up business. I you the spoke needed want the the the was would to flows on attrition, In But that that you question was offset are will level I disclosure. I that required depending attrition to vein, natural wins. any of frame could offset of vary earlier gross in ask wins revenue gross be on could natural certainly the hoping rates context In new about asset be it you think it that to -- new Brian's similar a recognizing for past, really fee would revenue in way

Yes.

what AUC/A of had, AUC/A we about some volumetric described. a average wins, $X.X kind the can we you got trillion about ] Here's discussions rate, In talked through we typically, And higher had of wins of current year. of and the fee I on the past, than that. kind benchmark. work talked so That's [ we've winning as

servicing that servicing $X to of really On $XXX the year, I'll this and of of is fees goal gives sense to is you $X wins. trillion this you compare around fee XXXX for revenue wins. that deliver for, the year, can gross our billion revenue side, a the about call of fee for and it, fees, -- million servicing sorry, And kind

next the year, wins As to revenues. compare some that is of to effectiveness, just that appropriate a capacity, provided product like servicing that of the of get last sales And we'd to $XXX of million initiatives, adding for got described, of gives servicing series of that while of year. fees. gross sense we million and forth. was kind sales you playing again, billion And $XXX to which $XXX functionality already disclosure kind part feature fee a we've month through million are And around closer so to $X can Ron of this you

have drivers work is follow-on We net at is attrition. the There do growth of amount want just basis, to a about like of typically said you servicing fee the think think revenue other right? to we'd I retention on some XX%.

So And about the way attrition. X% that which a amount $XXX wins gross of a servicing headwinds, fee compare to gross we then a can the million about losses. year fee is there's described. is That's some versus about X% think we've year

elements to of growth, [ is for in I'll ], trying do it clarity growth we're can an you kind you of the we're really say all So see manner what on where of create so the focused. that that Altaba analytic

those levers every one And matter. of

a what what I is and mix fee, particular a activity servicing of the you with way year us to and for about be internally bar to then we to one think, it's accomplish that good year the in each externally of But growth and on for, all efforts the and that to core those. sales, clear organic tens have good will success. sales year us organic We to need growth help from deliver as

at range that to of assuming recognizing on XX% Just could the execute a appear be be managed XX% response does buyback And one if in of be going benefit, end lot levels? just to clarifying guys $X.X squeeze I we to you'll you're entirety, payout anchoring that given the that in there'll run much in pull-to-par the It XXX% to its there's past? that should billion but XX% excess level, question. in at more management. not to the you those recognizing to There have the as unpack the XQ was around a CETX, you to Ebrahim capital lower if

third but the middle the the of the the where year, the range range. ended we to to the necessarily range, point, I do and about kind you is rest of a I'd not think to encourage of this for quarter middle that's of think analytics

accretive of gives That in buyback. us healthy continuation shareholders terms that RWA quite pull-to-par, there's a capital management. think For the fourth I is And of substantial quarter, there's return. something amount of to that's quite

I the about we think XX% of probably we range, the think once earnings how -- level be that and to But get of we're be the likely next to next that's will year. more but I middle year. that think -- then over

have good comfortably amount committed to, of what medium a it, we've capital there's the I'll and think -- good and over I I into term. return visibility healthy we think call in

Your next question Brown comes from KBW. of Mike

Great. Okay.

multipart asset business. management So multi question here on the

quarter, flows fund And Can investor you you there maybe I to and some some on maybe and was was money thoughts So believe see come on on flows. was when the thoughts the in what touch first, there. gains on share it great coming just there? to those just market your this then the and mentioned could quarters? that you gains contributed consistent side look the pressure equity What's with flex there and at the improve sentiment there industry,

look the back from perspective SSGA to future be today, is you that and to [ M&A could the then part in accelerate you asset or strategically growth just an here, of when you step potential some interesting last a take ] help the bolster at anything business. mix And there

it's Mike, Ron.

So there's question. in your lot there a

the also business, And capability side. up I and it's on think this we've channel and on the built for side the on mean, had both investment Cash really -- distribution competency long I the we've that time. a is core a

connectivity custody kind will, the and pools. So lots hooks that's the into water in including, distribution of you And many the business. in way, by we've got if core different of

money seen being been business. -- -- the of of in of Most performance money most flowing. market But you've it kind from where captured for external. of that the as of been it's is and deposits. example, the rotation around We've a So investment some lot it's

while. other The [ been only. [ date investment it product ] real that one the that's is got annuity how and did go-ahead SSGA also [ fund, that, very growing put broad into there grow ] And growing in areas a DC are the the figure source growing, to was it for much out regulatory before a actually actually a has been to innovation-driven. D.C. now Share of and that's to and growth. ] continued target first product an product to do of has

and growth benefit people a as away is area. that that The see that we need. longevity just people So defined goes something realize protection

with some combination important, longevity that that. will date distinctive of expertise we've real think in got I kind and be product target of insurance fund a

we mean part, growth a us late space. and Hung of intermediary institutional who In out retail areas, expertise the as most built an for too. Ishan capabilities ], I there's last lot got terms are year. -- She's [ the there, shop. the the in of We've really joined the product

moving where ] illiquidity mines private of blending in of advantage got but and enable those line take there's don't and that those and don't sense to that really a retail the be intermediary And then the [ and into expanding share move just liquidity, markets liquidity products need blended premium. will the between make sufficient the So you've the it belief the some real space. public

So organic in whether inorganic, some be of there's this design, I mean in we will or think that's opportunities product both.

-- And of going got on. lots team's there's the development product

committed to business that We of in that and excited fully about the we're see So business. growth prospects lots there.

The next Mike question Wells from Fargo Securities. comes Mayo of

where front-to-back how Alpha. long we're out has the the results. you financial figure seeing Well, trying I'm much get that it's just a in been for to and And solutions journey guys to traction that in

these On hear operating excitement -- that you you of new fee your I and now positive guiding leverage one and all the and mandates. have have you're for XXXX part program, alternatives

this it see? we look right? in seeing On is expect Is the front-to-back a and simply long X, something such momentum evidence to Or the be X, wasn't other growth And should X that that at fee thinking the I hand, of out? quarter it results? cycle the are so you that years sales great, we

me journey shelf. nobody ever maybe done let was that because something It was off actually before. and here the address just start had the you bought that something Mike, this not

I that awful think Charles the River But do, some in in an was [ the to needed ] fund a we clear, beginning. development investment, was income mean, particularly to there itself we fixed I be important that and signaled that was and lot area. an [ of So at need acquisition. ]

overall years several in it's us They've to particularly of of functionality, us the to last longer and income build to very income fixed purposely been of to ones to -- explicit that taken came but helping it year. very, particularly like they in ones getting the partners the position them. help features a fixed over large shape market-leading We some doing idea is targeted of the been par and selling with some big early -- not this as been a things development and has what that up we've out. around development capability. they're were what actually of of just are the the the Many alluded early targeted partners. this because developing. much So They Eric would and terms in terms

XXXX, pleased where So we have we're the I when with in in have actually think of program would number this, and we terms we quite thought clients we are. do that don't the we of XXXX getting back running, up that now. just launched

solidify and we're thing to we're be ship And to prove but others share. way to a to wasn't was generate existing other this a to clients, that's it what The now. starting we actually new that we of, there's grow convinced to that the way could had see but one, [ was was pipeline. ] that a Tobi share ourselves actually it relationships, just tool it in

believe there. maybe leave a will rate. And an we I'll that see So journey accelerated at revenue it growth it's

And Mike, Eric. it's

it's for current On large you there I servicing fair year remind is very because question. the other a just the financials, the context on movements fees. some

recorded we organic year growth a headwinds it, But servicing that's overall about think from that you kind creation fees. new to we important after if need were away tailwinds there demonstrate business in the So and of year. X%

tailwind for year-on-year for quarter points market servicing X The this percentage was about fees. of

of to described out points about where Part hey, that? bit trading is client activity and little seen that lower -- X comes headwind almost which activity, did was of other goes, previously as thing And say, you'd we quarter is points as less right, So tends we've and that volumes from there, this a worth came of is percentage exit what year be which the disclosed see X cyclical. percentage was then well. client this and we

disclosures financials. of I So that this year-on-year business, headwinds at there through tailwinds, right? fee everyone our of we was percentage and the apparent think, we'd like over positive we're new see and more If servicing value fee to traditional the to move X Net quarter, look value of in some that a private time. points adding of And the part a larger the want particular, to sales, reasons where value the just of are, sales. flowing that's take why make to to servicing Alpha,

Eric, inning of and then are one exit year, thinking Alpha to just just large the Ron, Ron, long then growth timing, as client. it And you years? are in follow-up, as the that's revenue concerned? What [ far as And ] that several journey from accelerating then, we relates quarter of

will XXXX. And get come -- there's previously the because Yes, of very disclosed roughly. bulk then comparisons we're were, that The of out you'll next XX% how just year. -- tail through that there's another into through year-on-year client, on a

Mike, sure And can on just Yes. make to you the I'm want [indiscernible]. clarify I question? just

headwinds to to initial revenue to But accelerate of result financial growing the and Alpha, Eric My should some was due wondering accelerating about Alpha. from much, I statement benefits benefits frame a in the aren't time fees talked that that increased around you activity that just that. was identified revenue growth growth. the question

Yes.

answer we to and enable going think, there's operating Alex, out that going side, you believe we've -- to revenues at to fee as got mean, on my to expenses we're revenue So the there I signaled, includes I was positive believe I it that that's There's we do I beginning, achieve the leverage. we're the a place program we Alpha us -- in that. probably telling think think

Alpha. by driven is that of Some

been in we're that's be strengthening terms into which Some others will and revenue-related driven that quarter of of sales by implemented, capabilities. actions of implemented this and that next taking, have some

is So around us you growth what business. related to core confidence generating revenue from capability be should hearing our the

We the institution as it's and along ancillary also of office, brought is -- began other we should the we -- the strength example such the back with revenues. felt front which of strength kinds with. an anybody you ] pure a did because into pure what and you normally Alpha of [ had no that but And point well example as office. relationship the have generates it it's illustration relationship Mike, a of then we know, middle as we client such don't Vontobel example go the there, And a

we So competitors. our that's share and illustration a be in way able it from to pick to pick believe, enabling up to up this of is Alpha wouldn't us, that how that's is -- we an distinctive otherwise do

Your next Gerard from question Cassidy RBC. comes of

I on budget share you -- Eric, you're to us us details outside year there's into less when process or expenses can of your budgeting frame upcoming that I'm you the XXXX influence last the year. wage for for not as this though on 'XX go feel you -- the such with time inflation doing were other types like know your you Do inflation? budget? asking going you pressure out could But factors into versus

but Yes, still headwinds lessened. lessened. Gerard, the they've it's Eric. They're have there,

when for point, carryover we're the which through of had budget of at If it you we play some year, a merit fall XXXX, basis actually, formal we that on were done to for was doing think about the 'XX. it, XXXX, X going then increases that

little then spring partly 'XX. merit larger in was the increase than of we bit had a in headwind. a And that this a by typical So probably year

more but much reward So done that's something certainly annual XX We last higher. or line with years what we've X was that over to in merit our want anymore. increases, environment with that much -- the opposed not to we're employees as in

cetera, continuing amount inflationary actually some you'd We're benefits. see activity, side as wage of claims, of expect. to kind dental, the on that's So medical et

that's pretty I broad-based. think

So prior years. -- but probably that's to similar

then area is a lot interesting where right, software partners us costs, non-personnel of licenses, work the think right? And I and spend, we're on vendors our all the doing what's cloud for and appropriate. one area Every is those various an computing think of to about

we'd continue there. year. summer And and seeing inflationary the think so, less so but a the this fall, bit to discussions year still higher I those have next little than we'll We're this inflationary we increases A have we -- we've way been and them around seeing having we're like, increases into were there. ago winter

automation. it questions get with and And partner scale. How How a to drive benefits process so we are do important the suppliers technology and use them. do little in expensive we of do we engineering if how more increasing our is cases fewer some offset

one part a what budget there's that more working through, we takes during way. do of but we're the a initiatives process. That's some that of So number in that's

going pursue not where industry environment the to operate couldn't crisis. and to that the that points gone of rate the then an Very such. back incredible that business your we you is our industry, turmoil strategies do follow-up, obviously, we're good. into as And a to. in X now the you we world environment pandemic X have operated now the has this ago? -- with in X that years approach X financial last or the for approach years the And we rates higher post possibly basis And through or interest we period that and the crisis since is or longer, changing seen X% time XX to Does some at way is it's that versus today, not extended the that X% assume had the the the prior going how you change rate X is were to let's all are that it level were Fed financial not for an bps say, at to accustomed you or XX this customers because if may of

Gerard, it's Eric.

add we and actually business, like I in think gives positive talked us ability feel tactically, our on higher has some how duration aggregate steepness about that's manage some the earlier, yield to and impacts we in it which and several us, on rates tend curve especially for to be very engage valuable.

tactical some there. there's So effects

want more management the cash our and in activity, cash described especially $X of value [ think trillion. in sweeps our valuable $X -- for versus ] trillion risk environment. rates, asset activities is clients in our higher ecosystem broadly, or cash ecosystem, on our offer To our cash business, in we across repo of is money We it for clients, bank and risk means cash with for us a be a there the I wallet and to rewarded only especially to sweep keep, relationships cash our but management. that platform with markets but deposits, clients. whole management us, And out engage a they risk-on markets it, as capital market of of to right? is also not of To who've got offering offering way to is us the banking money deposits the with money a repo, deepen our offering and way there's

So to you'll product see I us think offering. over add our time,

of consider number that's to of Alpha do it about and in the proposition else platforms our but integrate is are cash A of say, our those quite about broad into, think how way Some how today, it, we'll do we activities. terms important a we generators. think market cash

the can it's senior it also it today. how C-suite about remunerated, most it's how safe, care actually they the with I at be think clients, redeployed. then who cash but They how they And our how keep with, cares levels are masked, about

that our more growth think of a given can And we activity both so way a becomes but offering, become discussion and more a business also broad that it's and time. C-suite over our business a in real activity relationships strengthen one

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

concludes today's your participation, call. may conference you now this Thank and gentlemen, and for you Ladies disconnect.