State Street (STT) 15 Oct 242024 Q3 Earnings call transcript

Good morning, and welcome to State Street Corporation's Third Quarter 2024 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 Relations Now like at of Global State Investor Head Street. introduce Elizabeth Lynn,

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

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

include will call today's addition, forward-looking statements. In

our important the variety Actual as section those results to Risk the Form due may of in a today statements Factors differ our from XX-K. such factors, filings, those including discussion and of materially referenced SEC in

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

turn to over Now Ron. me let it

and Liz, everyone. you, afternoon, Thank good

growth basis, total EPS operating both for return the on fee earlier with in Our our growth. and We capital growth sequential year, achieved financial we third quarter-on-quarter, on are combined Street for future results, which record. reaching year-over-year generated State well and revenue this which achieving earnings in strong increased robust business morning, and quarterly a released highest and quarter demonstrate accelerating which this strong and the we performance positive momentum leverage XQ, turn total positions fee when drove with shareholders

as environment with franchise XQ strong The year in financial leverage performance way fee XXXX earnings relative our growth total and quarters quarter better-than-expected and results, also items. and dynamic. third and growth period to driving of good through the fee revenue addition of positive well our expense to the operating as the solid the total the X results in strength positive highlight operating notable year-to-date discipline in excluding was same strong and In

world's number over market moved risk negative While global notably continued off tech a the and events volatility. and of income faced sentiment and These including of bouts a fixed in of markets valuations higher, carry U.S. the unwinding events drove and the investors concerns trade, XQ equity significant geopolitical tensions. fears of market recession,

navigated markets comfort of as However, well these data cut the market with taking X in bank short-lived in host economic subsequently improved from dovish Federal a pivots, dislocations including from as central proved years, through be to rate successfully laser We the Reserve U.S. first priorities against key this on well supported strategic financial will discuss. the our We focused clients delivering now and remain results, market performance. drive business to better strong and I backdrop, executing which

Turning X to of our presentation. investor Slide

period. $X.XX Our as to EPS in ago was the year third quarter $X.XX compared

notable revenue strong total driving significantly turn, areas contributed a X% in All quarterly respectively growth notable Excluding of ago revenue was while Relative quarter of XX%. delivered year-over-year, was expansion. this our to X%, growth higher. at and margin and, year-over-year business and robust growth NII ROE and XX% with the was and we XQ items, record items, earnings to strong fee EPS excluding year

in strategy outlined revenue-related that year. fees the sales see servicing we year-over-year, to we despite pleased the as the well same sharpened well costs. we are continue services the investment and by time, we last execute against X% momentum QX controlled At increased expenses within business remained increases

are in funding productivity transformation drive our business to savings, continued year. and which this investments significant We

to by XQ while year-to-date just same the a in increased on period by items expenses basis, relative year-over-year, result, X% XXXX. notable expenses increased a X%, As excluding

to third slide, the the deal we Turning which a in achieved business see momentum, great of can quarter. middle you the in our

performance business we indicators, compete generated Within illustrate to the and Investment of year. gain revenue Services better wins, AUC/A servicing Street clearly in the $XX quarter our $XXX Our share. and million, with effectiveness strong highest wins including support clients, our fee of positioning wins State of this new strategy XQ, billion,

to AUC/A a power will of mandates a back-office underpinned clear mandate for large XQ reported host our the advantage, win relationships We extend strategically in us new win and of with compelling and which servicing long-term majority provided software awarded include and now middle Alpha, of a platform another relationships Alpha a our including quarter, clear a breadth new as the this as services. our significant existing the started quarter data retain brings office vast value which client was business Street River a full meaningful premier State custody, positions solutions. levels, solution services, XQ for wins What higher Alpha to in of even manager. demonstration Alpha Street clients. front-to-back the two proposition front data of asset as deepened way. illustrates of global depth at by State our and is all evidenced by and accounting Charles together this competitive This Alpha

the quarter. with momentum at pleased very also Advisors this are We Global

quarterly institutional flows. $XXX under were businesses assets including flows, levels $X.X in and billion and in quarterly reached record XQ. flows trillion, net all strong aggregate, had In ETFs record flows of management positive quarter-end and net cash total both cash ETF Our

product areas Importantly, we geographies. of share our market expanded number in a key and

commodities gained fund as both also in institutional region. our U.S. SPDR and improved ranked as EMEA this we the example, low-cost in well share quarter while market money For

to capabilities We and also and client expand Advisors' innovate Global strategically solutions. continue

three managed For in example, ETFs Global ETFs. new launched Advisors XX XQ, including asset-focused digital actively

will new with market relationship access expand a to announced opportunities. Global Apollo private that also investor to We Management aim

to the well by to named in as drive four Turning leader Research revenues higher, see as helped volumes pleased finance the its Stronger trading FX the our client XXXX to in Service I markets for our year-over-year. FX Magazine Street which markets and including in securities awards, both franchise. services both State clients FX categories businesses. a sequentially was place particularly in value as Client World's underscores Best Bank and Euromoney

our balance to sheet. Turning

NII a strong. as targeted actions number of year-over-year over performance year support was growth. management to NII Our the helped last have

return sheet share $XXX balance is Our $XXX million solid, enabling million capital of of over XQ, in repurchases. including

shareholders we committed in factors. ahead, returning to look to remain fourth we conditions the excess and As market capital subject quarter, our to other

will turn opportunity Street I it that banking. Before Eric over be Eric, to of State morning we also a announced new leaving this outside to pursue

been a identify support fortunate replacement through work the his will us with Eric to Eric stay search last X transition. on with to We formal the this and process team and us through have I commenced mid-February over closely years. to have

Eric Personally, I the let take well who and With to have want new wish in detail. hand his more me that, his enjoyed in and thank him Eric, you quarter the for through to valued leadership over partnership will our and role. call

Ron. you, Thank

and X that feelings ] transition. strong strategy a and Before positioned Street forward it's XXXX financial with will moving the get here know that that we've and Street numbers, State say success, team. past I'm of over I all that to is with set State been to the I proud [ the I into for and at I you a am years, during accomplished together privilege mixed and the to on. I foundation and But working team that forth with to the it been well continue into have look want the progress has

Starting Slide were are Now included notable everyone on for record through let for side and EPS X. quarter the the detailed on the aggregate, the in right We revenue to that, earnings third reported quarter. me neutral of page. walk our of third items $X.XX results which

this repositioning return, broad-based took You investment delivered to reflecting can of items, in quarter, excluding do fee NII XX% the EPS additional about capital We some on basis. more growth, sequential see which quarter higher a and increased that a talk year-on-year, moment. opportunity we continued of growth notable which robust I'll portfolio the

upon and performance the total as leverage, basis. year-to-date fee discipline, a excluding quarter first and expense quarter our in the items strong notable third of total and half positive coupled builds with on operating delivered fee Our positive revenue growth healthy year both

clearly with at quarter returns equity margin tangible on return over almost a demonstrates and XX% good pretax margins common XX%. and of XX.X% The and of ROE

to X. now Turning Slide

supported The levels, third quarter well to period-end strong and AUC/A and as AUM by as both again market flows. client tailwinds bond increased record equity

the panel businesses an on after quarter, the the right of mixed. can our you markets indicators external slide, for see various eventful were As third

which That and and balances said, by more securities in volumes shortly. growth continued in encouraged were our trading FX across detail businesses, the I'll discuss we finance client

X. Slide to Turning

to a growth, previously pricing asset approximately shift. feel abating approximately client year-on-year as year-on-year X fourth market partially momentum X% be a new and disclosed with headwind headwind client point do increased which into Third lower transition about year-on-year disclosed percentage and mix good of activity, quarter. by impact quarter servicing fee previously and points were including into going to servicing an offset mix including growth fees lower was of average shift levels client the transition cash higher the an of while asset business headwinds percentage somewhat. to client X The seems activity, We

our by which quarter, Encouragingly, focus. strategic wins we driven in generated with the $XX million back mandates of of office line revenue the in majority were

past X we've of quarters, servicing revenue fee the Over million $XXX nearly achieved wins.

to X. Moving Slide

major share well year-on-year, positive all management market X higher market average gains. ETF primarily as flows within due product increased quarterly repricing and as ETFs strong quarter to Third business levels cash to strategic fees where well We lines. expanded gained share inflows and continued reflecting as with across strong net XX% investment contributed performance the market flow our our as performance in record initiative distribution

Management approximately up Investment pretax points growth also strong percentage healthy business year-on-year. margin a the while of X our together, over generating Taken quarter in demonstrated XX%,

continue expanding solutions. growth in private mentioned such for Ron assets, in Global Advisors meeting we Importantly, investors further its of needs fixed to by evolving as position in as capabilities innovative solutions and the digital key areas, client markets success earlier, income

Slide to turning X. Now

XX% increased Securities balance this period. noted, in to businesses XX% performance growth I to balances to all trading prime revenues quarter, our and particular excluding volumes nearly FX FX are venues clients. as relative year-on-year, markets strength continued to year by increased across share pleased higher see higher with of items put reflecting the sheet volumes revenue in support client markets. emerging excellent As we ago gains with lending in notable services work our agency year-on-year, higher driven we finance more with our

by office is which CRD, slide. software the described processing Moving in on driven to higher fees, detail software XX% associated following and up revenues with year-on-year, greater revenues were on and front mainly data

Turning to Slide X.

software-enabled our with Our front third year-on-year office XX%. revenues strong professional up quarter services software revenues and XX% increased a

the are remain potential our confident Ron we our as business, Alpha over noted, pleased business new in we've the delivered the XX% years. with growth our consistently belief year-to-date. This in X level to in X achieving clients software of mandate X growth wins next winning and has robust the this to that We software revenue up additional revenues X goal Alpha with we $X reach year. billion of supports quarter, And reported our of

X. to Moving Slide

Third was from quarter higher Central deposit was the rotation. investment as than well year-on-year the lower, partially for basis, yields quarter. The were constructive stemming rotation in deposit shortened actions. lending by driven and repo Bank sequential product repo impact more dynamic and offset activity. as loan by sponsored well security to $XXX additional rates as XX% NII security NII as higher On the higher by dynamics continued This offset increased a market sponsored of as primarily yields X% continued million investment lower growth

As this and investment the year-on-year. both right slide, increased on of panel portfolio balances average detailed sequentially

quarter, as book the the client deposits We realize of small quarters has approximately we payback efforts. of increased which X a our of to XX% also next years. benefiting and NII repositioned X X% continue the opportunistically a engagement portion the late quarter-on-quarter Average benefits over year-on-year in

operate generally a around continued we rotation. into levels, bit albeit we'd with noninterest-bearing deposit XQ, these As to move expect of

focused base, about third XX. X%, the demonstrated was of worth to investments our X% important just remain managing year-on-year technology expense were Year-on-year, quarter of performance excluding and well growth half by acutely Slide as costs, base year-to-date basis, instead driven as of Turning primarily notable We a by growth and products, on cost increase. in compensation higher as revenue-related expense items. infrastructure. on which

a $XXX productivity achieving variety As of savings Ron roughly the model quarter, we in million of to savings initiatives, mentioned, our transformation third and continue other benefits year-on-year deliver actions. of for operating through

simplification, to forma Year-to-date, initiative, of improvements which We're productivity to million we lowering this track to ongoing our organizational the year-on-year by savings, slide. us consolidation and service delivered roughly $XXX enabled from and $XXX we're basis, as target of our million on also continuing benefit our X% year. improve on the of the savings automation achieve has on including quality detailed headcount while further JV bottom a pro left process

Moving to XX. Slide

can all remain you liquidity levels our leverage and As strong. see, capital, very

end, As more capital as XX.X% of CETX on of earnings return growth supported the as quarter capital increased increase of offset than standardized the RWA our generated and rates benefit our ratio with quarter we from lower from clients. combined AOCI prior

at QX. the quarter in common accelerate repurchases on noted, our of quarter to equivalent just share returned But of from million total, third million our prior in up shareholders unexpected in $XXX of goal to delivered almost create moves I capital XXX%. we the the million, $XXX ratio a return did total excess and quarter capital. this quarter, of over In As some rate capital million falling $XXX with payout end we the $XXX to

and in higher than of we for conditions healthy we capital return quarter, subject to As factors. somewhat another we ahead, would QX, this are expect to look be which planning quarter market other

we the our expect continue and payout comfortably full right to as XX% in such, XX% be supporting balance strike with sheet. balance the for return ratio the XXXX As year to clients to capital our we range to goals aim our between

which third return total continue momentum to we're business excluding items, along and to positive demonstrate our pleased while results, quarter year-to-date sustainable our fee of both summary, significant leverage, our to with strategy ability to and against execute capital drive In delivering shareholders. with notable a operating

have in. political let environment I a me basis. is on year-on-year that, potential notable With given year basis the the improved variability that our to we're for which highlight outlook and operating cover and significant the ex all full would outlook, continues economic

In terms remainder year. to we're flat of equity the third for global are our assuming markets the current quarter end macro assumptions, of

aligns for broadly quarter of flat outlook year. to forward FX relatively average volatility rate we market to the current with Our remainder third expect the the curve, and remain levels

expect than year-to-date to higher that revenue and fee the market at be prior results strong end up expectations. our X% Given X% slightly now total range, our or will average above levels, we better our high likely of

the better year be full We than will NII. to Turning NII year full basis. X% for NII to now range, expect guide our also which in up be previous is up X% a to slightly on

Finally, than are given given of this these range line expectations, expenses higher somewhat revenue-related in up improved top outlook expected costs. X.X% to prior be our now the revenue higher year, and

the that, operating to to total Importantly, hand positive both year. we deliver to me let leverage expect the for and continue positive And with fee call full back Ron.

X% stronger headwind NII a pleased X% with positive be to revenue to fee expected with performance financial operating have results while to deliver roughly We you, entered To was financial together year able XXXX, leverage to Thank far fee Eric. I'm conclude, a how our so on full this basis. year. been expecting we growth,

comfortably together up strategic revenue However, started engagement and operating with year-over-year. with strong client now to environment our relative balance growth NII expect and our successful sheet to with management, year and notably fee we more where a execution outlook outperform higher we the against priorities, constructive

operating both As notable this to a fee excluding items. and deliver result, we leverage healthy total expect positive year,

and questions. positioned can the Operator, are confident to we call strong for into now open as finish are look next we We for a XXXX, we year.

Instructions]. [Operator

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

and the like say cost book you You year. X maybe million on does offloaded. within then taken? and the I that be payback. Can that a about think, $XX And next least I mean actions want X-quarter the and more little implies the I the detail. of what actually you you'll management make color restructured next quarters? that, at that over what the NII talk for all appreciate to blunt mentioned guide I

Glenn, it's Eric.

within then X the the next that The positive that the loss reverse some million in it a was and interpreted exactly correctly. will company. quarters, for next booked and the quarter -- You've be out $XX have we'll will in

$XXX sovereign continue securities ] was to treasuries, assets. were were of sovereigns. or [ have we we north lower super to coupon foreign We international As They that that portfolio, mostly securities treasury could and restructured we manage some be billion from a super-nationals bought this additional repositioned and actions, of sale. the investment MBS back the There it range felt some through In set space. particular and securities. in of

billion securities the billion to book, was adjust which $X modest. so of allows the also $XXX slightly, And It just us curve was book or of on the a $X billion position also relatively it beneficial. across

be we've So management kind going you'd as I part the think been of forward we and about this of will expect, but as that NII. manage helpful actions talking

around of the Some investment those portfolio. are

we've Some of our are around past. of in and clients around engagement on some lending with talked those about deposits are as growth those the

nice gift. That's part and a one quick Maybe one.

in curious mentioned and will it to with the credit? you if could that a you SSGA detail chose any Apollo. like differentiated to water the scalability. toe this hybrid private products in why I'm XX% maybe conversation how this give to and Is the going bits work You enough be of of how see just us received? performance is drive going to about Is

Ron. SEC. Glenn, quiet period a We're the with it's in now

past available here completed this. SEC lot talking its how more about broadly and what much are innovation that. We'll democratize really them the is what you say about put access constrained will what after But our sophisticated process. structures to I to with say we consistent a we're in has about more say and do -- it the about can of about been is So that has -- been clients have in we're we've

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

Eric, I Big the new congrats hope change the that in role. give multiples? go you bends or something on up. the create you when issues doesn't

kind Eric's brings about curious session this So of with to mind. departure,

us you on update plan? And maybe tell Ron, the So that about could board's us on latest can the front? you what

referring Are Brennan? succession, you my to

Yes, right. overall. That's

plan something when talk for you a would overseeing discussion the managed all succession time. there's And about in and expect, there's near Board constant well is and at as companies comes. this a the place about So well that time that

And strength, guys hence Clearly, been But NII has repo year. updated the there continued we the Great. for tell you And see comes then you what pretty Okay. play about into your expectations? some could solid. should strength there? recent about repo how outlook the us think into

Glenn, We money for cash one sweep, in offer right? many various a deposit offer repo market The Eric. it's of product on clients, Money is we forms. collateralized repo that market, activity. is them

one -- there way, it a the in its trended elements broad range offer. wanted there's been to broad the as So found and is help we operation, repo market, obviously What think clients. more the activity to of of repo down be of as we've that the has in we reverse Fed our

repo will around That XX%, said, XX% XX%, the typically. point sponsored repo X. bounce It percentage do by a the NII our that we activity, is or activity of

cash both percentage we just stepped are through because There's are is, happy our for those sometimes about in them. And stepped markets you're a looking working out the to And and we bit. for of on borrowers we're the activity it cash who have increase are called transaction margins in NII are found up due to more market. a where that collateral sometimes, are sides repo a bit, post. balances in I there And point quarter, while activity. of I up and more there And as you've more This out added think to clients seen. serve and also up

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

profitability your with guys, for how as for of transition more think and well. motion what pretty Street improvements the that how that sort durable meaningful to aspirations And words, much of vein, But likely rails search these some to this are whole has for be? of like sort in and a to So in CFO pretax the made the next. is congrats underway, already you State profitability you Eric, do of the margins are other in I you on over firm ultimate whoever guess both seamlessly perhaps time? progress recently. new as improving question can comes

board expenses. start been and both I at I'll Alex, on transparent what doing we've about Yes, mean that. firm, the fairly been we've the across revenues

a So regain we've quality, has I starting kinds Services we've that sales to restore in distinguish to lot some we us what place. grow which in turn ourselves and client service of we've all the We and mean lot actions about talked restore really growth new actually done Investment of with had motion. past. That's talked our the and in about business. have a service in enabled in the and

about. Is continued break broad-based there how clear? would launched new We've plan is appeal lot we derived through XX that about broaden see the a new we're year. more what We've got at a to that its franchise with retail talked at the all the to they're institutional We broaden do? optimistic the had, clip really Product For and Yes, innovation sure. talked But that. and some get the expect we've we we But In ETFs. we've hurdles a very actually the beyond do assuming aimed ETFs of traditional there. in we've area there, which is GA is. occurring partnerships low-priced about really core. from done strategy benefits it this the being regulatory

got so like feel a we've we side path. that covered pretty And in clear

a reflects franchise past more over seeing based done with the there Services innovation. franchise, to progress Investment this that is able to that enough, of that's there. work market's You the with largely In but we've business, think on be the Markets yourself distinguish couple the that's right? some quarters franchise of to overlaps I in the have client not come. you're our mean I And

as year, typically more in you productivity every go been about way XXXX. sophisticated of to way, it productivity, different finally, then since and transformation at each And sophisticated year. we'd I application of terms a talking including low-hanging The in we've have operating model a fundamental guess, a we And These years describe technology. fruit. later early years much all been more were about about what, transformation,

is our lot going, see of much but to there. we a investment where I is more do that think

So going anticipate We'll with is through performance the firm new search No, we're confident, CFO I shape of plan have with look important and the in us. this wouldn't transition. to We've change both have to strategy. not just we're months that it's a to say we're the already Eric a it commencing kind -- any role today. a very we to that overall help and not signaling vitally process inside good is literally we transition outside, that be going and but coupled place, the firm of of in X the in engaged

Board. in executive our also senior teams management deeply embedded medium-term are stated. with our stand our our and I'd culture as Alex, They and targets and add,

to And so and areas Those rate we the are and revenue growth X% XX%. on. continue topics strive there and target the term for to that of X% deliver purposely medium for pretax margin

mentioned long-term incentives. our Alex, it's And also, of those part Eric targets. that also, realization I'm of Yes. Achievement glad

makes sense. Yes, all

to clarify wanted Just that.

securities of the sensitive think quarter. to maybe the talked about some think the today. update sheet talk a the the of about balance broader positioned, lot sort in think follow-up, a should the still, about as But a and U.S., probably So of on sustainability in for very NII. help you framework with recent bit about for think, fourth little back of quarters? neutral nice little the durability repositioning with we I 'XX. being about this the maybe you've of Europe too how asset maybe rate you to run especially next 'XX Obviously, How my of NII kind early talked earlier more just more couple over about quickly in how is on past, specificity. us of but

Eric. it's Alex, Yes,

still We're levels, quarter it's bearing, you say, As operating our through noninterest by portfolio deposit early. by interest-bearing, quarter. quarter composition

that past to deposit don't got that's right? what through, got on the share the quarter, this slight you've modest rolling into just quarter said a year and or lending a activity. expect really next We've bonds smaller fourth bigger, for the other benefit portfolio and than amount we've We've get we And so have headwind. information some additional exact said continue before. regarding investment some of we but quarters, rotation you then depending the

And open then and purposely that come from. see you've where then a can what But the you is got some earlier exactly language up pin can do NII level. I've up X-year bouncing we've talked think But We've growth it's quarter. lens quarters, see that used hard if repo, the expect really from which as to that I down. call, stabilization X-year, you over you few X-year, period, and it's about next that on the said in and we to the we of

expected for we're a zone can in, X of the kind sense. You not but you'd that zone as point colloquial percentage margin. quarters, just But our some growth And see and we'll few we're the I difference, we helpful stability It's zone movement, a -- some think while in zone next the operating the I'll see also nice we're some generally. find thereafter. a and in as see

right. more quarter All you. you for Well, we'll think Got get that. I after one

again. topic yet that I'm be another will So sure

next with comes of the Stanley. Morgan from line Your question Betsy Graseck

miss you. Eric, I'll

cuts. be about pace you for the just trajectory see in guess, of my Is better should final State we is you next where an I that here thinking for to Street? luck environment And how get go. in question around NII Sorry role. slower of the Good maybe we

and the Yes. thoughts. Thank for you, the Betsy, for question

neutral. relatively is sheet balance our directionally, think I

We have a slight asset sensitivity.

NII better as fall slightly down, a that quickly. position, And didn't so basis, not has but quarterly have as we if -- NII given were rates it's we'd rates dramatic. on But a that direction to impact come slight

think collective seen rates rate here I come the the our will down, on reductions. is overshoot view but we've market

rate what been than Our the that substantively past. the in is likely think to higher it's economists be terminal

some of stabilization absorb lending think repo And from all the engagement those client there. And as And contribute out do and we of our activity, growth that, we're we'll so reasonably NII forth. continue so deposit activity, build then to our Central and I and Bank zone to actions. the well we'll activity will positioned around

And one you. All then Ron, right. for

I recently, effort? leaning that wanted put context Street expansion maybe new are into? countries into Or just and think And around a business? to an Mexico, growth saw lean a And this about understand, there existing State this I is it other of to is into strategy? you're headline looking

all on a we Betsy, bit of the -- you would than so markets and Latin America. have APAC and the and as tend develop as a arises servicing in as it really is we presence but out it's for But develop, expect, services. we us. certainly the -- in that's Yes, -- investment countries smaller EMEA to for us. It's And opportunity the area, this little -- markets have

And there I capabilities so America in are moderate that. we what and would a, you and out say, saw at Latin reflected building pace really our activity

remain and as markets, could core imagine, the APAC. U.S., EMEA you Our

you in as More over growth But really their developed many skipping kind emerging lots had EMEA been of years, they the markets of in done back that start what markets or past had had kind recently, those of seen the in in that same as the the the milestones growth grow, developed But you've are development. to and couple markets. And some of APAC. we've markets over cases, on from we've growth we've rate traditionally. so-called got of gotten developing that also, have our need it in it's capabilities U.S. these --

and modest opportunity of important term, things. expect a the those we it's to some the an to would it's again, foothold it's get But over bring advanced but technology growth, and short modest investment, So kinds there.

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

also. terms in which asset strategies detail support either Great. conjunction your can Congrats, bit Eric, balance a that, just the into maybe on clients asset terms that both mentioned, your lending? in beta clients Maybe you about mean go just model? comment more your I of in and revenue of then work to putting or sheet you And about in of on clients. of if you areas deposit pricing more side supporting taking talk the with Can Eric, little a assume also deposit with you to terms servicing

sure. Brian,

Let me those cover in one-by-one.

$XXX capital want side On risk-weighted we've about supported a balance to sheet. And historically to we We've balance that clients the got our we've billion as got expand. sheet, think to continues about of continue and three we the areas in in, asset of assets. be $XXX it billion deployment,

growth ecosystem of management that circle lending, capital BDC and and we them them. the sheet, do constructive our call if we or growth of So clients, likely as clients we for clients they find for us, those really real kind you everything from mentioned. for activities, activities. And forth. that's more they're of one with and servicing constructive that we virtuous there's is you a support asset is markets much financing with lending to of very for many you for. your an do that and there benefit And asset balance And private for relationship there to lending, first so encouraged there's to that And come management what

of lending part very a So is important we what do.

do than do we'll if world. to activities our that a X, do have our trading do sheet. relationships clients, happy balance And our X forwards our and we clients those that that for options with. large more we're to just require sheet balance especially months we around substantial in the require again, for X, we clients, if Secondly, And support swaps, FX

that's business, both right, then lending we're we're III out capital business, the So the around of who those capital has Basel services in component, then prime which lending well. to it's financing are where borrowers but markets, the really rules. some area thirdly, where the box, an lending a And been as out of that requires the part. growth good that's And agency under and securities an

as we areas those relationship about and really act right? what of are So that ourselves we the the think -- lenders, way think we it is

lend it the itself, deepen a returns, to for it's that but have. comes good not We clients, lend our it broaden comes but way and support and to we we relationships at as because expand

And fee and more across the more areas line. doing. we'll the in different see support We them three that's we in those do I lend areas, we've to growth like continue been So NII that what those and the to will described that. both

that.. Is of... question the On

accretive. be also Perfect. the of Should of know And -- pricing the and we as those rather. I on one, the Actually, on on market your I the of tie some the question with thinking in as are platform the fee I second private back as half just you new side products. well rate flexible Alpha those compensating initiatives of that can revenue Or with that's well. balances? fee revenue particularly know wins, on deposits the Alpha

I'd say bit a both, it's honest. be little to of

a of example, XX-month fee we for booked million area, the on have, in trailing We servicing wins basis. $XXX

continue year from we'll a moves land, fee to in But hone a in of are it's a million wins clearly continuing delivering $XXX and where see quarter, of to exactly target have sometimes mandate to pulls this we $XXX out and obviously quarter, forward fees. sight. that substantial amounts We target lumpy million but sometimes we on

are As we to but too a that understand on more clients there's that, of the if the of levers a they They move more are the part relationship, trade. understand that both lever, much pushing ways. in of opposite it deposits one and have balance They other then do think direction.

of in and of how with real clients clients support more we and those we've doing what On as opportunity we have see needs. our more work And up clients as can more found with there serve the more more other that hand, -- is our areas. got we work we to discussions, that end to their

opposed to and tend as And other on to being so offsetting. they build feed each

Jim Seaport comes Securities. line Mitchell from Next question the of Global with

mix deposit to reaction the Eric, deposit and cuts on the cut. did rate just after rate initial on the How and side? behavior in volume Any thoughts pricing? look the growth

of we last months. change. discernible I Eric. point up the saw Jim, trending seeing think been system. X That's or more in quarter. few over a points just banking X.X any really it's what Deposits the We been we've don't saw across the system generally are

a more see lot You've are of results And a really that. changes. seen our didn't little we of

cash just carefulness amount system. see fair a of Part of Part market and investors our political the in is, continue that think, -- the positioning. our there's of that a environment economic given to We I have investors with is where that uncertainty.

And so the being. And levels. this discernible in level we cuts we're in on for think and time didn't general, a or around operate going impact to the deposit have

backlog, just a installed in yet fees. be That's servicing to pivoting to servicing. asset maybe helpful. Still Okay. business significant And

discuss So you and to business trajectory can here? you that how about how you're onboarded new quickly how quarterly -- from thinking expect you're be the

course expect that if of the next roughly think of And between, trend the fee our We next of enjoyed with Both to we've backlog, kind steady-state that X/X On as build. of Right to to in in to the are of think it, somewhere of about coming in servicing the we of The servicing up rough year, build somewhat it we coming system. forward, -- it pace obviously years we will year. that to installation think X/X ways. X few continue over quarter to all about just look through fourth it about want next over time, right? to continuing itself, Yes. deploy and level. the through and business in backlog want installation. of important backlog basis, and AUC/A about installation the you an the out terms come then now, and get And we a to the think I half

out on business, What right, the there's within that relationship from there revenues our that X and new X then always means then sheet, I months, same and backlog should winning is say. and installs into XX that months. months balance coverage months, X And the the our time, or we're installing P&L, business to at force

so over -- every you'll the And see a year, mix.

that a backlog have period, longer comes from you'll installation You'll that see year fiscal time a and within business that from comes business that had itself. then

line RBC. from the Gerard comes question Cassidy Next of with

that with And Congratulations, Can new you the those the us share from you existing where came or much clients Eric bigger wallet $XXX Or the versus ] from they new said business you about wins think United in position. custody/administration. mentioned the were in on of you clients share Asia? second, primarily Europe customers? I the And Ron, U.S.? quarter. the the billion States, how under wins in assets [ were new grab outside

question, Yes. Thanks for the Gerard.

to a competitor footprint to of And Alpha wins these including, us. a we'll And a had the is in lot Charles a with has two very AUC/A. non-U.S. Alpha in move this this were them. win, and were interesting with it's just U.S. So relationship significant them result with about -- existing. divided for -- very, service between there U.S. true presence. them, what's wins And is both a But with had importantly, as $XXX case, that's very modest that they is dominate this It's quarter, the front-to-back of one and have player Alpha we there wins the of Alpha. we two about very, both that River servicing We from $XXX billion only of was -- a institution. global asset

custody with like lots and sorry, the us with competitor me, from comes asset things and to opportunities like And excuse I'm that. of foreign the to do deposits moving things -- a exchange custody and

think it as I for has important why and the about -- advantage. now, years we've this we talked us it's a and why think gives been why So we and competitive think strategy

One the of relationships. it's reasons just to the opportunity that. It's deepen

longer one from here. from much decision making to other is an that model but insourced outsourced because of a quite generational And that -- period. upon very another, doing, that we understands client these And the the to tends in both institution outsourcer a a why enterprise sophisticated happen taking that this side result, itself as insist And flip be moving doesn't are model cases, moving contract cases, more they're analogous choice frequently. work the are parties most the some to business is in a of really understand making long buyers, important reason is is as outsourcing to to of sticky the an it's install quite the it's where either, so actually because

so get it right. want they And to

follow-up a capitalized. obviously, Very you well are good. And as question, guys then

your obviously, your acquisitions. them and using an us dividends as give transaction to the intended, you way thoughts there Brothers for with Brown used can did out out, and increasing Can organic with work lending paying, Eric you're Alternatively, back capital for acquisitions, your be but capital update support buying can you and of us been you the pointed stock. as You've course, growth, your well? recognizing, share appetite on obviously, not

as more more Gerard, efficiently. to a not strategy, a or implement as Look, we our about either rapidly way strategy, think but M&A

be always promise seeing we we have paying of that. lot a plans now developed But see in attention the organic like that fruits are we'll opportunities to So of. the and

important we Charles was felt costly So that our creation know, proven That the reasons front-to-back knew you to platform. Alpha time, a to was often it's last also long-term it's acquisition, It to disappointing it significant times at of be. investment, for strategic done was was and shareholders. enable and River. a as the We but very dilutive the acquisition. But important

very seriously. what able to we And what organic done. basis or we've on we our we're of do stewardship -- So building like we're take an on responsibility capital

I be strategy said really we never So and/or not at bar, these but realizing this more got the it's to efficiently things, say a as of to it's could the than we'll got the it's about accelerating about, strategy to do answer, high beginning be and organically.

turn will I call the Please Ron closing for remarks. to ahead. now O'Hanley back go over

Eric. all the emphasize, of to And for to get one on more Thanks just quarter joining call. us you

us he'll with mid-February. report basically us through and January the quarter February So for basically us and with be in with fourth through

you So thank all.

gentlemen, call. Thank today's concludes you joining. for Ladies all that and

disconnect. now may You