Bank Of America (BAC) 17 Jul 192019 Q2 Earnings call transcript

Good day, everyone and welcome to the today's Bank of America Second Quarter Earnings Announcement Conference Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. Please note this call is being recorded. I will be standing by should you need any assistance.

pleasure today’s my Lee over now McEntire. is to conference turn to It go Please ahead.

for morning's section everybody joining discussion Thanks on earnings morning. Good this were which bankofamerica.com XQ chance review available results. website. release a documents of Investor call XXXX I the had trust Relations has the to the of our a for

comments, our may Before I call. our that let we make me review of statements Moynihan, Paul the After turn open the results. our CFO, Brian's for CEO, call will Donofrio, second remind Brian questions. over We'll this forward-looking to up during details you then quarter

For our further to documents, website, refer or please our any information forward-looking SEC statements, release either our earnings filings. on

Brian. that, With to I’ll turn it you over

morning for this all about written change the and thank second and and environment our review the Lee about joining we to engaged results. thanks Many saw you you quarter forward perceived quarter. in debate Yes, good of us and discussed, everyone that

in the solid in consumer However, we to slower with quarter year at economy pointing growing a our second the saw albeit continued pace. a States activity XXXX this United during base client

increased income in our $X.XX net possible XXX,XXX environment basis. in that driving team-mates a earnings and Both history. the quarter of on quarter items reported made linked tax the That are was In per We through company’s work reported best growth. hard responsible and the company a my billion after who these year-over-year $X.X share.

an We points. grew assets XXX X%. increased FTE our billion on on basis to and Revenue return basis $XX.X was

prove end, common in tangible and shareholder equity value. And on the Our returns responsible to growth continued earnings, XX.X% strong return was

of back leverage year our Revenue the model the expenses start Slide these then of at costs driving more how basis net with EPS X% our that and XXX of growing operating year-over-year. credit so thereby shares, during X, operations bought remained and were and look combining resulted grew highlight points; X%, reflects stable, income we We core returns achieve to and generate low flat we solid than X% As strong past we we in basically year-over-year capital this strong growth. results.

from This along, way the very continue capital to strong the quarter grew XXXX. All XX% positions of and EPS quarter, second our XX%. strengthen. grew per value are diluted liquidity and share Book

and We market our growth share in also businesses. important had gains client

activity billion Client showed deposit of growth, $XX growth X% a of rate year-over-year.

billion people, flows $XX We had of investment the came we At same from also those growth consumers. customers. time strong deposit from saw a that

$XX grew billion X%. or businesses our in Loans

as number half One off position half. progress first [ph] of first Importantly, other ago, in business. investment the this focus team we're the and and drive saw IPOs we a driving market example to job and to told saw we’d in this [Matthew in Koder] volume is IPOs one have for U.S. a year. start good the done regain good areas to the bank investment in I many nice a our start products, we as well. you shares across banking, A of year continue in

in and more the All in heavily results to We franchise in, physical did We the improving with dimensions. franchise we're our stayed and quarter. our pleased -- risk expanding continue invest and all it marketing right with adding grew. we We increasing parameters, this our salespeople, our spend plant way. technology,

history. first the led earnings half This company's in highest the results to also

we we half. you look at last the So years the as Slide of show results five first four,

the can years. billion has generated was in we first last earnings. continued growth see XX% nearly to five first $XX half of after XXXX, the for Compared up tax EPS you half of the For XXXX, and that

we those In years leverage. operating have driven

to the continue to on lower ratio. growth a can a in lower our see the which left leverage excess company This led investments saw that the back and trend in first operating XX% right. year need We you capital the accelerated here. You beyond and see buy efficiency in shares, for we that This use half. can the has

driving results changes. even it sustainable all And growth that this Now we of the has did operating us drive been in primary requires drive to responsible This do, excellence can goal we produce environment we operational again so to if quarter. leverage.

XX operating to operating can different four environments; seen many move you manage for extended slowed half still streak down, positive quarters. interest Slide we've leverage but In up X, has our XX economic rates, leverage successively. a you in years and market drive to see or changes we those -- our quarters, consecutive to growth sped As you've and

Generating operating leverage any years. plus after easier four doesn't get

expense strong remain that it. upon we discipline, with However, focused

things of the quarters. results we're the some fees categories one see you see our don't quarters Now especially you in four improvement here go the through that see and last the you the consumer to of starting is as in

consumer lower the strive charge have but reductions in other and This the had towards we've importantly changes relationship fees many faced because to American for drive an accounts the our on service in strategy bank being from were the most franchise, we fees consumer and decade, of also best-in-class the to consumer. core policies, in overdraft Over headwinds based related years. last for accounts, was

we and we relationships [rate][ph] actual Now of years, the fee we've the in higher growth than reductions hasn't few had recent ever levels are past that accounts, improving from satisfaction client have the the those much past, by primary retention last in the have we're seen that accounts number to offsetting increasing before. household been

spending of year-over-year. an has balance card income, plus. resulted consumer environment. $XXXX plus U.S. In and focus card that GDP of average level we the with our seems to seeing debit at a growth and are households credit us importantly, with primary most consistent depth X% plus XX% X% with in But a relationship This

providing of it's our great our value us for but of in end of -- still consumers. look that the headwinds you that the consumers, day, the those the In at the reward are on economics and We’re relationship total competitors, end in to the fighting see impacts we when you day, and business and great shareholders. in that go the

global our Now in driven for consumer going but always business being -- piece we're can time, But you reports going We talked services see some digital our banking of we'll on you X. to add about we’ve do usage to next we're is it. couple corporate to done that each have X, a Slide impact about on business. something slides Slide to which the how now importantly and of transaction across talk earnings

shown in its broadest X consumers. the we In quarter, it quarter you in and dominated both start let's high first our had our our with touch digital, second digitally second charts. on with So Slide consumers these billion context interactions of alone to across interactions quarter, X.X are Each To or is high we've all by show have were channels. automated and base. tech. This excellent those we you be, X.X billion explains how the why

digital business. than to looked meaning you past not used balances XX not in at digitally and activity Their billion more managed primarily relationship grow have If have balance our continues center and today. customers our who the who the a clients, and with customers is are us year, our But, digital, platform across financial only have $XXX strongly. million consumer we entire that's

ranked to enhancing heavily invest digital platform, why we the both, enhancing want one while and continue This same financial best-in-class physical is access. digital number centers. customers our our Our at time

were device, left. the appointments this those a that slide and the an quarter, record see on appointment times of person lower a lower again of quarter, in with the up you see interaction set hand number And digital the to a took XXX,XXX set into branch mobile left can in come two side their you the that of up.

serve of centers million into come three the better quarters To that customers day. every our

over XXXX. financial we of financial that we XX and months and on then quarter help three to XXX to we our to added renovated the over more, renovate in few consumer We This only we we've adding in growth not years, remain targets another XX bringing established last targets XX year ago drive the renovated the centers XXXX the new established centers, track hit business.

managers them centers lot refreshed also environment. in modern touch high adding these a more new bring our of many We to relation are to up centers and

customer one Now hear lot is millennial a the Z about we Gen the customer. things and that the of

nearly segments platform. Our are Those digital to in of investments capabilities hold These growth, the our we important are to our base, one the platform Today, they in It's customers. deposit a all customer U.S. with are have for we $XXX ages millennials powerful estimate that of the that consumer things and XX. and millennial attract million population. customers billion XX XX millennials of between very our us.

of turning Slide focus many Well Now consumer trends. us the to on digital X.

activity significant a space. recognize to transformation important our the also it's commercial in think I of digital

show global investing part decade, Over transaction digital on X services platform start our the been and past investment. to capabilities of Slide the that we've as in continuously we

focus business faster, and digit attached past it billion doubling to We obviously. X. these more in users for have making secure XXX,XXX very convenient it's XXX clients with users PRO Mobile We and cash more the were and in on XX year-over-year that. growth make cheaper Online by the double in mobile to year, payment by usage and approvals now growing fast be business access easier, nearly

consumers to corporate innovation companies, who services. we delivered have type Apple through that people the to that One in enhancements, to work be companies, shows help our deliver And day convenience latest the an tokens same end the our treasurer’s with able want process the at payments. of of the Watch the of to thing have mobile is the want our

yield shortly. out the So you see -- thoughts on reduction do interest addressing let by in comes Number your of asked, is me the our forward and curve on if in curve. few that true, one, end which he'll rates we mind. expected what up I Paul what lay to the that questions here asked are i.e. a many

Assuming the the is maintain volume the see loans row. in low on should told some consistent is something a as around not The can in strong it. evidenced basis asset we've last? move you can quality a because second in charge-offs profile second to -- to net the credit because many continue concerns or of the our statistics time decade we've the along, credit by immediate non-performing drive to continue conditions the quarter any and economic over delinquencies continue We it's additions This for that think it doing and we're remain that no of to documents. or for you see in we risk question work done quarters last towards you or XXXX, the

the so see levers to well, expense is that we a investments results. near-term the question further We do? later, invest of one you -- expenses to going get it's where an you talk can Paul expense okay, why produce the because The investing have is to franchise. important environment little a third to to but guidance importantly, believe more pull? you is, reason continue in these slowdown future you questions there about may given we economy result Well things do of is in you're is manage meaning presumably meaningful of to

be and in than year every our decade projected But investment severe to to continue declining us to related this automatically had obviously that expenses flexibility XXXX. lower economic want managers be, XXXX the to And costs, But base, you except there's we agree issues which we we've if the for that revenue are quickly our you as one. last expense expenses have brings then us ahead, would with reshape and strategies. adjust starting changing to with

considered are mind. your areas we they focus and on are just I minds as our on these on

more Paul? on me let few turn details over Paul to quarter. that, it with the for So a

driven Good compared balance everyone. on already $XX eight P&L. to which more morning, grew to going our by $XX than the growth, of I'm segments. billion the the sheet QX, quarter ended higher in billion since loan Overall, business Brian end Slide start covered the

the planned quarter, calls Liquidity billion billion above equity common Shareholders' dollar stock the given the issued common as global of in preferred increase equity loan $X.X requirements. average $X.X global remained billion interest billion X announced strengthened we ahead and in an decline versus in -- increased July, $X XXX in in AOCI well equity of rose the reflects and increased of liquidity sources in AFS value our increase debt billion, rates. as QX, securities

through In share XXX% to income returned QX of repurchases, total, dividends billion in available and $X.X net we common. common

announced plans recently the well increase $XX our As a in we dividend, repurchases reminder, to increase four our a as in an XX% next as more for share billion quarterly quarters. than over

lock key ratios regulatory minimum our our above With remain metrics, respect comfortably to requirements.

our capital above loan the well the CETX ratio were improvement. remaining increased mitigated driven XX.X% to the higher increased balances AOCI, capital while levels requirement increased minimum levels ratio of that standardized CETX commitments Our improved by excuse higher some drove AOCI X.X%, and of me higher

on which we than starting client $XX deposits or $XX to and average X% activity the XXth Moving billion nearly was with quarter in This grew year-over-year. Slide average grew deposits billion. deposits more consecutive nine,

Global to years deployed brought customer in billion. we more bankers middle over banking $XX the the in demand, additional Global last continued reflecting alone franchise. have than strong benefit few from Banking market the

We deposits also in to to see bearing a continue from bearing non-interest global shift banking. interest

the of to preference of funds grew near as or Wealth with growth reflecting client as Global up of that, Management deposits from amid money billion conversion $XX uncertainty well end hold $XX Within $X XXXX. market Deposits billion the market X%. with consumers some a inflows was billion year-over-year about to cash

deposits year-over-year. by banking or Consumer billion $XX grew X%

balances More expensive balances grew while more importantly, modestly. declined checking

balances checking at fact, year-over-year up X $XX X% to while grew basis remained $XXX or only basis X paid In rate points, billion points billion year-over-year. low

Turning average a grew less overall Slide year-over-year. loans to on than little our loans X% XX,

Our has running and pace been billion all excluding loan down sales. billion of per to quarter a $X $XX at approximately is other portfolio off

grew Looking X% core loans our across loans at business segments, billion $XX or year-over-year.

management at pace. grew global wealth a year-over-year and segments healthy each Consumer, banking

the demonstrate growth. can bottom right we continued see to of consistent you responsible in pattern a chart, As loan fairly

the and borrowers. for global owning Growth customers consumers cost clients, activity by interest saw more in an their lower or the was global of rates allowed of corporate we lower large stimulated increased a Within market many existing our mortgages, banking, of one. activity loans led to buying home from to originations, increase new complementing as middle continued

perspectives slide not embedded forward quarter, I'll the rates this only but few drivers future given to expectation on curves. lower find Turning review in a also the interest of the net interest income rate of XX. the our

basis was million billion as Net $XXX or XXXX interest a GAAP Compared driven $XX.X XXXX The on basis. in our FTE QX, income NII basis GAAP as the of -- interest non-FTE loan up as growth. on GAAP on a an rates billion, rose X%. by $XX.X and deposits well to was improvement value was deposit

was quarter than linked loan was from GAAP down million. we benefited of a well as initial by factors. deposit On offset an as growth, QX, NII $XXX day In which basis, interest more three

prepayments securities, of bond long term First, write-offs which of cause backed lower rates higher resulted higher premiums. mortgage in

QX other costs rate assets Second, higher in commercial included lower then growth And on as yields from assets reduced funding lastly, term trading non-earning and global markets floating such rates assets. loans. short

a linked year-over-year. but result declined X.XX% up interest yield three points basis basis these impacts, seven of quarter, of As was points net

to the LIBOR deposit rates just basis lower disciplined With points and quarter. we minimal expect repaid saw third respect to the client begin QX, increased total predicting QX. forward curve deposit and movement rates, would XX at remain in declines, to deposit point it over three we basis further lower With than move from rates

sensitivity we banking from asset of remain the our have nature of book, of sought type the and and sensitive to deposit our given us. size base our loans Turning asset customers

asset to baseline. sensitivity in driven rate This compared mortgages increased the Our of by the in QX. decline payments rising likelihood increases in -- scenario mortgage a mortgage rates, the which was

In NII growth scenario. well increased of additional The rate to QX. the caused day expect interest falling deposits, the of in an asset lower loans in forward as current also the sensitivity curve year, in and we an from half second as benefit

have three rates are negative lower to effects. primary However, expected

rate short floating should rate from assets continue on yields term First, decline to reductions.

causing third current rates to reinvestment and dilute securities of off will continue term yields. bond long lower mortgages refinancing’s and stimulate rates increased on premiums, right Second, portfolio mortgage may

rates the However, headwinds. offsetting should cost term lower partially long and labor of reduce a debt these funding other

forward expectations Last relatively on could that quarter the curve XXXX by flat year earnings earnings points X% grow the LIBOR interest the was spot our on more a call, points our term XXXX. our full basis or for has at based a than XX call. reviewed basis, we income and basis of over on are earnings net roughly XX-year rate fallen lower so. of that short rates call time XX Since That

we for we X% NII From to to were our compared be rates, XXXX if think up would here, approximately XXXX. assume now stable

Fed rate curve forward XXXX. the in in another Additionally, and anticipates funds cuts two XXXX

X% follow forward rates this indeed curve, the off growth XXXX. twice rate starting cut likely If it Fed for were this think and month, would another the shave funds to be year we NII

on several slide our XX%. have points efficiency we to XXX basis been now targeted for ratio level expense expenses pacing Turning and year-over-year non-interest to has of at quarters, XX, improved our

compared $XX.X up flat less billion, $XX with to basically than At expenses million. we QX, XXXX were

While roughly are brand, our commercial increased clients, renovating flat, adding in in in as we financial centers, and space. not clients. technology and we investment which consumer holding And and know, serve you also expenses management wealth people, office our only but

adding included a for we people shared professionals, since more years well two benefit, ongoing best bonuses as we bonuses and are portion covering success increased in -- awarded expense those our and over tax best programs time of the consecutive base. Investment as have which shares merit sales of now now,

of intention minimum the the know, minimum announced $XX our an we as wage wage you space early increase to in hour. XXXX. until our to Also our reaches continue hourly in And it is to $XX expense QX raise in

increase was expenses the QX. QX’s investment offset QX, the expense in in and payroll more also than initiatives QX are from seasonally to in as up elevated modestly decline Compared by tax marketing

to XXXX, second billion. half In roughly expect our half equal first expense $XX.X of our we expenses of the

new lower adding client We the incentive investment half be second seasonally the offset professionals technology roughly expect facing by costs. of increased in to plus cost the

billion could inclusive our that $XX.X projected flat XXXX investments. expense these we planned XXXX of hold previously of with We

estimate be say, now heard you as that. than we in XXXX Brian expense modestly However, lower will

well a to U.S. to quality slide and to economy. by Turning disciplined XX, asset on solid continued quality asset approach driven perform underwriting our

the once know, received in scenarios industry again major annual were stress you As peers. than our quarter lower results and stress our loss this test rates

more a loans. of $XXX Total net loans, in charged-off previously charge-offs driven The QX, sale equity million $XXX in quarter. ago of little than by client $XXX was which million year lower million resulted QX $XXX the from of were million the than recoveries home and

the the average loans with points Absent this or ratio just billion year quarter. prior in XX recovery, and rate net were QX $X charge-offs consistent loss over and of of basis net

normal seasonality driven QX credit name in single modest commercial of card expected losses. we the our in Outside a portfolio, a had of increase couple by

Provision release. $XXX reserve a excuse me million, $XX $XXX expense expense included million modest of provision was net million and

Our many This has current billion guidance that conditions charge-offs on quarters economic unchanged. remains and guidance roughly now quarter continue. $X net from been per assumes

slide we metrics for we on metrics, a the and consumer With credit portfolios. breakout which consumer believe trended respect quality losses. Okay both future of indicator good delinquencies lower, is XX, to commercial

sales continued improve consideration loans after into quarter. non-performing even taking to Additionally, the this loan

commercial, in loans, in criticized resolvable ratios a while non-performing we historic And remained decline lows. near also modest saw

Turning basis year-over-year banking consumer with ratio grew on of produced and improved XXX XX%. banking Slide another operating to year-over-year billion. earnings Revenue points. to starting created The X% consumer XX, efficiency than to grew also segments, $X.X the more we've and business leverage XX% quarter strong

of compared the Even basis XXXX of as increase and flat deposits offset new relatively in the deposit point rates was as decline cost invest the renovate in we to QX the in running component centers, cost the all-in financial paid. markets franchise XXX

quality X showing improved, ratio basis strong remained a rates. remains decreasing points Mortgage strong charge-off from benefited and as was clearly net year-over-year. activity basis growth. loans deposits originations lower asset Customer Client points, satisfaction XXX with solid

of much real I balance have to we And added our sheet quality, growth that that the estate is loan loans. high would consumer note

customers add and country to XX the market increased like spend for the We also lending. in would advice via around people consumer continued power small lending, sales what teams we they business investment asked our marketing And to do. where campaign, their our local

improvement X% to year-over-year by revenue driven that the Slide Turning note NII. XX, in was

the strong driven was by While year, quarter card card which given on year. more own spending prior income grew last its than was elevated tax spending a year-over-year, X% down modestly reform

in we purchase solid Versus by QX, saw improvement income card driven volumes.

also We continue that dampen deepen revenue just use you, awards on card we but not with customer income, to rewards expect fees. relationships focus would higher a total remind to to

of rewards customers now million to is Enrollment and XX%. in increased now eligible the of preferred opportunity retention $X.X rate XX% and our represents these

Again from Balances versus headwinds XXXX. faced also with QX service we this penalty they reduced year-over-year. these XX% grew took With charges, we customers to fees. in customer were respect that down quarters previous actions quarter, modestly the

we charges. versus saw a However, improvement as card in modest with QX, service

Wealth and from Global well in to strong Management across new level slide billion products, as more & driven the also by XX% and over record the gained income, Turning grew quarter. Investment XXXX. accounts markets was momentum. banking investment a approached company XX on were Net which just traditional Referrals the results as QX, rebound $X from

Within Pre-tax basis business year-over-year expenses from general revenue, X%. points operating a higher banking XX%. X% from valuations created pricing improvements impacts pressures. flows than and increased margin was higher more AUM more drove grew and than of positive as XXX activities rates fee while market offset NII leverage record revenue and The

advisors, deposit offset by investment higher and With amortization and continued modestly well related intangible brand technology as respect were insurance to lower incentives expenses, in revenue as new costs.

to double year-over-year. Digital again affluent as continues usage gain momentum use by once grew mobile digits clients

GWIM example, did used a clients year E-signature twice much as ago. they only as For

which the over or balances. X% Slide growth engagement trillion. private flows were rose and billion Strong businesses trillion $XX to bank. XX, AUM the continued client contributed to both X.X in to record $X.X billion QX Moving the four balance, AUM in GWIM Merrill both results year-over-year to quarters, client reflect past contributing balances in solid $X household in

side, uncertainty. clients X% desire amid of client the growth up market to some $XX by billion more by banking and the hold $XXX were or million driven the deposits On year-over-year cash

the X% were Linked mortgage decline customers. quarter deposit outflows in our reflecting seasonal reflected higher strong Loans given rates. year-over-year growth by tax payments

activity customer noting in respect good Merrill increase thing to referrals and client private worth saw from and lending. the also in client is With advisors. both growth bank the one to We

referrals, This quarter client parts made two we in us balances more XX,XXX other these from nearly back our than and and to help added X GWIMs referrals of other QX advisors advisors LOBs. In to had households. billion XX,XXX grow the company introductions

many and global As on you at global a banking look know you turn market combined to of slide XX, basis. I

So $X your segments QX capital. I which that to I help $X.X you revenue with on billion comparisons, as earn quarter, a on their basis last two XX% did in billion return allocated know combined these and generated that of is nearly a combined

lower, and Global Banking a lot kind would higher lot be be GWIM a

on with releases XXXX Looking capital QX XX, allocated the and for in basis return on driven absence by Earnings strong and a beginning energy reserve at them a separate billion banking earned XX% quarter. down on in business generated but from $X.X the were global X% the year. exposure the of slide prior

added loan deposit the Revenue of as deposit hundreds well reflects services. loan loan continued and our ALM and treasury we growth. compression bankers was offset how we've and down deliver loan modestly and product Strong and activities spread year-over-year benefit as growth of as investments

expenses, offset insurance technology to mostly investment cost deposit bankers. respect and lower in With continued

Brian investment quarters. the Looking last as banking year, in earlier, few mentioned and you at slide QX to steady made have in we comparing XX trends progress heard over last

down has be Dealogic to context fees the overall IB to in X% quarter but the finish put fees $X.X This nice We performance were which according up saw roughly overall XX% down year-over-year, a billion firm industry for in X% with this year-over-year. of QX. of

share In across major the half the fact has data of XXXX. half first using products market most Dealogic first to comparing of XXXX our improved

Switching on capital earnings market I DVA. to return declined excluding Overall while I X%, XX%. as year-over-year. global results $X.X talk usually will expenses billion generated of produced market about on Global slide declined do, and revenue X% XX

billion XX% on and X% and revenue, declined an was the EMEA by partially equity a $X.X equity performance Sales offset derivatives equity stronger Within of trading gain weaker compared and year-over-year, FICC a investment. Decline while the down ago and X%. to sale year-over-year fell was in sales reflects decline period. year to trading

a global revenue- revenue trading weighted activity FICC, The products lower activity losses and with sales you with lower that trading On related lower towards revenue in decline compensation. can our heavily the products. have expense remained across mix mix weighted XX, of client no to of a was due pools to where environment revenue Fixed was trading year-over-year fee weaker we X% most reflection see overall centered. and remains quarter. domestic Within are days credit slide

Finally, on we show $XXX reasons small XX, the net which profit XXXX. for slide than improvement. other primary a QX reported two better all are There million

the from First, sale $XXX as XXXX million non-core provision in $XXX QX increased benefit recovery to of loan driven by million. which resulted previously a

an QX was our in tax company we had the Second, the rate improvement the tax compared to quarter, XX% for lower in rate XXXX, a little than our expectations.

absent back any the expect year to unusual half XX% approximately items. tax in be the rate the We of

Okay.

for with some think ready that we're Q&A. I

our Buckingham Jim Instructions]. from take go [Operator ahead. Research. question with And we'll Please Mitchell first

Hey, good morning, guys.

morning. Good

I environment have curve the is next number next sort enough realized kind NII year strong impact seen year. of over And as year? do cut next we guys there one And it year? linear? about question is well growth grow next guidance just given in it of is Thanks. impact that Just the this accelerated for half? you guess the How might about I think two, guess we forward the appreciate Is as ask rate on as the the this NII, one, number still growth we into of of in the months. XQ, loan course can asset you think that XX do about think How

Okay.

than it book. million. our than over forward even analysis the is a cut on on plus less is end. of the $XXX is measured basis includes that But that short banking crude already XXX approximation just shock XX rate $X the in So of points isolating a down guess in end. the months that to points impact XX terms relative because that rate more a the cuts, $X short basis on on billion will of just quarterly billion I The impact is little be the curve, which

approximately in markets you If the get is you discussed to million I our include which remarks. level liability sensitive, modestly $XXX prepared that book, the

about I important. of don't We look, be terms talking to say to which rate is In we're little get We going cuts early don't XXXX. why XXXX, it's get. know would to and we're a know going what

talk think little I be get So we able about likely more to as to closer that. we'll be a

Thanks. Okay.

material the of of slow the is the GTS one Jim, the deposits you'll industry's you the to. in I'd – if statistics up customers at some other on highest thing. that Remember, last hold add years change different et for that over And frankly our company. see changes and on still occurred, in down business way catching process will rates as a the type as the one that's people the things, that that think take other was and cetera, about balanced nature which corporate necessary price pricing thought back increase look thought just environment least rose, three is you especially the and and the basically the at think a I if the come how process in thought process rate and

points short-term reversing get XXXX had out I of about you in than increase. term literally a framework plus so to that framework it, basis have think so think think, about as to of XXX rate we sort as the And situation you longer you back different the

Thanks. Okay.

Please Schorr from go our ahead. take Glenn Evercore. We'll with question next

Hi.

morning, Glenn. Good

on Good on One follow-up morning. one quick cards.

maybe you you the compressed there, spending continuing costs dynamic? up, some producing talk about mentioned to obviously current the the a but and reward be environment reward more little bit long margin How ones, little growth. Can You going bit Thanks. that? current new growth think something a growth coming versus last? you of fuel it's that continue things to how that And like from customer know base more to

So just backwards,, question really doing at in that. really to it, things continue start over it's and of up its grow it over numbers few they last starting to we just and that. like been, of end quarter. way has work card the you're fairly been of see in million start consistent cards this your We've cards now and to working terms business What has balances and generated repositioning now plus our years another happened

you on you rewards a that the generally, piece. pricing Glenn, it's about question it, relationship remember If mentioned think

a whole deposit. relationship So the across with come our including cards relationship pricing

from way but can these the actually because So you deposit. do with getting could card $XX,XXX reward and the so it, you deposits customers that's a you have you're them

at So, working But decline. you look the impact that. that we'll seeing to going if trend quarterly keep see recent the you're more you're

year-over-year our Although but it that checking the especially huge and is still a seeing to going you're reward help deposit deposits consumer and fuel X% hit, that price. payback for in growth

continue. dynamic the see you'll So,

part the and change, using expect the breakage how I big volatile. of not that's Bank don't as of industry but seen broadly card people good only but also haven't dynamics not and so broadest other America But that's and for study. it in the the kind activity to we've been are you more the fees parts business. of in the It's of rewards see the the franchise context We why for using growth

one, other One on wealth that. a Appreciate management. follow-up

growth margins household already big a for business. a to That of Are mentioned year huge doing that incentives already seems specific the being like big such spur do up you question number ceiling related an And at there on XX%? anything because growth? to new they're is, to-date. think You you XX%

incentive back Couple added better way of compensation works. now, team two modifier just One, of on lack and the the to basically ago years for on things. for incentive term going requirement construct a a Andy the the system, bonus. and

if the inverse and pick and on to the numbers team your that Andy that If seen that in you you've and a households activity done has led just and up good you job. obviously not, the grew did

we adding have much been banking Katie year-over-year sales dramatically team -- On teammates that. up the inventory and -- it's been and even It's that private been side, important higher. and business driving and profitability are critically are the that's because

heard we so from to also platform modifying does the flow comments from that. come and the the the comes operate the on between branch advisors. There's at you FSAs is financial And Edge in Merrill a that huge it the the referral business that system in way markets operate Paul's a

in, platform a has and comes move advisors, lot. somebody to financial desires amount that them the So the assets of happens we

it make those – market. think that and referred [ph] businesses executed that we're they business We the in every energy commercial success do business over that year market off entrepreneurs markets [capital] rate, you creates every that was in banking, get and every doing. on X the we will across the behind then gold the small and it’s this XX,XXX, number year banking, think all million referrals franchise, I towards sure And saw, businesses we I in and track the Paul's Merrill

And then we to XX. the margin so and -- move on

loans NII grow. see to grow, continue as margin continue to will you As type to that activities, deposits

go in We're the of of that digitization of and platforms seen advantage pure asset on this efficient. and and We're side on We're But and And you some business to operational things and business digital statement the on fighting scale happens, that anywhere of wealth we is overnight have near the years but your it industry. lots management. for the that capabilities that. the like in consumer. to compression grind not more business statements fee in getting XX% management the XX%, fingers that all not all make snap

So we our keep up. we margin think industry-leading pushing can it

Appreciate everyone. Thanks.

to Wells with We'll Securities. Mayo Fargo now ahead. go Mike Please go

$XXX deposits billion intrigued was that million information. millennial your disclosed the of that's XX I I you've comment Hi. think about time and by first that customers,

customers you they'll at guess set change how customers? be So, millennial they'll have assumption of I the are for long younger you be for that years that you they say with product instead XX more banking. since rate years? customers the do and profitability your if you Do customer what's those how And you growth millennial the pricing of the digital you assume as And what of set? so, look now XX with

between One give people's of use sound if of with checking tone, with $XXX [ph], don't just [in us. XX balances client of in want the and to you terms things our But business it's set perspicacious put banks, we the and to the sense] look millennials XX%. population, is rate we I do sales. you look about at of representation the XX you years above our to population and to Z and and millennials people XX that of at old population, don't class Mike, billion million sell the if But one XX% millennials, sales, it to to and big you the look the its you XX at XX% our millennials look the sales, Gen

the one and times basically the and to. it's a So population selling rate we're half

you -- and $XX quickly. or nothing investment, about And and balance savings balances at pure hold of holding billion the us growing just millennials checking not checking, with today if look into their its

profitable? about. XX% represent And that account millennial. so because things outstanding. of part Checking we talked our currently The basically representation is the share they consumers of and business gaining the capabilities are in for the They profitable. All we class. digital just our Are It's big is are all today. about

to So, very we're gaining times the in valuable. We share it's and segment. on all that our got toes at be

time just If value. you this been you've think those around you like checking provides alone tremendous balances you business long think about

have. we Zelle, XX in if if you going cohort if slide at it look wouldn't past you future Erica the have look plus at the the are activity platform just year, other and you Will look customer the and comments driving interactions million at the across the But it volumes work. of the with with on on mobile it back they is stage as digital area. in billion strategies, the generally in as stay this levels deck are at terms with This anybody we with quarter, the keep in and the experiences of to in so have to advanced of billion. in below we X hand is and we X.X consumer pleased work team's people. as And interaction X.X the as activity log-ins younger But very expect stronger look page they the would The great those answer a on us? long XX-year-old

you then represent And XX% clients population them Edge, for if cumulating the the to they twice preferred are millennial of Edge which if we the and competitors, when at Merrill with millennial and our look go balances new the in things. and other categories clients those we're our again, compare you rate Merrill balances, of

of competency in it’s driving capabilities categories But it's it. So We're a team's drive good. the that very those it.

customers had, have years long that how say at assume other simply I The than you the to that, there stay would reason of opening past? you with with once question you assumption banks. they'll can ago? is the to stay and offers look And some you customers the ask get at you compared out XX accounts these for how that does I And $XXX, $XXX, get maybe that certain $XXX the they you longer these

your question rewards like colleague back the and that goes things to Well, about that.

XX% in Our preferred plus consumer customers business is rate. the base of retention

really stay they so, And with this. all

powerful that's so, And extremely dynamic.

you're pretty in have, top models So team the duration. assumption, head don't long off retaining I a and like stuff XX%, the that it's puts my that if that, our but

All right. Thank you.

We'll McDonald take John with go Research. our next ahead. Please from Autonomous question

has the balance so closed X%, you could to to a in to sheet Are X% about some middle-market and the see to pace, guess, also you we reported that growth think that some And continue that closer narrowing, loan your as run down core solid looks seeing business? Core remain core? improve number, overall of continues I Good Paul. gap morning. small momentum at growth the

one would mean, that the off half second first. equity I residential answer $XX in may run more have do say sort on non-core Of depending sales. some will market I we is we the is mortgages I'll legacy million conditions that portfolio. of guess, I see and yes. and/or billion The $XX home

off a going run-off as is billion ago, they're at or about Treasurer The know $X that – its other are mortgages. they're They're many good years to Together mortgages half quarter. bought well. you previous running CFO

can you do overall smaller component So picture. yes, of It's becoming I the a mean, the just math.

good X% business. And we as point quarter. And out, small this in you think seeing were growth year-over-year up our LOBs look, look they you I when at are

In U.S. now fact business are recently. in in companies We're competitor the I small we the middle think surpassing to a market. lender largest seeing

to the mean, grow, see really continue we business saw which suggest that large what digits growth complemented seeing consistent in of been low pickup you kind horizon that quarter we This many company segments. can growth that mid-single we don't from global now of we been that telling anything the for on the for the quarters the kind corporations. from we've I

and two versus and core and consumer runs got team’s along our of X%, middle the consistent runs Sharon I'd you Alastair at slower business on They estate just moving business growing us X% product sort add what's the of for set. Type X%, that. said, as One thoughts market. to a real is, middle Borthwick small market. their depending

stress All the sales selling and And we've good last reflected including over the potential during the for as a to asking the credit based might about was runoff that you've that. in risk few seen that had pace CCAR Remember extra so has capital our years and return book bunch that the Other accelerated which we feel that the reduce and on been very by you year last process loans and of higher expect. charge-offs year has

release. a have company and And them way the we of then loans those secondly tendency comes because would servicing risk operating down sell

now barrel, the of -- getting and we're of portfolio maybe XX%. X%, bottom of the X% used of So, It to the X% the total its the portfolio. be to X%

that the about -- narrowing are chipping away. now. really impact sales So, always largely we And we feel good

thought but money and on were XX crisis. the quarter largely was a balance, years stuff the loans relatively is sales made through. and The the are since we pay have modest now This actually these current

about last And side in loan there the growth performance feel So integration banking is the of the solid we and -- Merrill side seeing investment terms good. bank in in the that. of thing in market we middle about private and forget we're think in terms

outlook touched your you checking then but industry? or talk relative account rates or that feelings had to a you on to ability that little checking about continue the GDP your stance could growth given you've the to strong What paid. maybe and account Brian, the this Great. for to your maintain growth bit, on

maintained look pace. you that have we it at If

transaction XXXX has checking. retail at so gross look XX% consistent difference. significant grown billion the core about odd and growth deposit peer since been beginning pretty of balances you growing dollars think that's in That XX If The is account. of groups about grown our We've I XX%.

thousand, $X.XX – you if point look X that. in seeing balance I XX% current, starting So point years checking last average our we're the and couple net now the is to think at some are accumulate. yet seven like billion seven seven still in thousand, half the – what five we're accounts

And so good checking we balance growth. that we keep that feel can

depending rate on the because transactional not of It's pay core account.

the So the even either account. dominant interest-bearing non-interest-bearing though to payments and part just some is checking, there's transaction core

get If you paid through weekly, and the household the the is see that's for look in people But rate that's and flowing market the excess money where the stuff the this money balance. the it rate basis we feel environments the because monthly can on we continue have changes. all that very and a daily, then we and feel and it good and all about

Great. Thank you.

We'll now UBS. go to ahead. Saul Please go Martinez with

Couple guys. morning of good questions. Hey,

Paul, something key in on to you wanted I sensitivity. rate the said, on First,

about crude it's it's its of out. $XXX and sensitive a that know cut trading million basis I book. think quarter, but your XX short but million in your you liability banking And net mentioned if I end, you just the the book mentioned, on kind You point $XXX that's approximation,

those looked million we grown margins in move a expansion expended also we of short-term trading hasn't NII $XX benefit mitigated it but – point XX maybe of past your trading every by we've cut headwinds obviously see of trading rising So in some you my occur the in sometimes the and should we of as rate right should portfolio, thought get in quarter of in opposite suggesting for in environment, something get rates kind headwinds at Because and the your and side the is down basis book? because per the the as neighborhood in that as much that your math book? growth

about liability the sensitive but you below that's the rate disclosures think XXX When impact that missing I the trading you're point end, curve. the at down book. remember, in basis shock scenario being addition on look to a one the you're on is of in short forward piece close, modestly the those

Right.

at short one basis about -- rates percentage down and to you're would scenario So talking end end you're XX be literally a where shot points long point. looking would be

obviously, points it you rates not billion lower lower be X [Indiscernible]. more that and you XX the and is but more impact, – go. first by get That X billion have divided basis to the So know going

Great.

things. to both got you've So of in those factor

million there, my the right, get No. $XX of basis but neighborhood I offset every and in logic something the of guess, magnitude in an XX sort Understood that you'll book? point of that is on question that the trading is is offset for

trading rate basis on give I the the I too the much don't when but think get mean, prepared you kind all sensitive XXX together is, to roughly we're liability book guidance you of points, factors million cut. first put XXX to on how

Okay.

growing know year-over-year all and those talk loan the deposit XXXX, things I a the you coming XXXX script when through we'll And versus you day that how and impacted. factor got went still in so remember get end growth. up in the We've about quarter,

an little guidance? in And you're from that than book also trading offset margins baking in a bit of little and a the cut benefit, expanding bit on of rate

guidance, little In in a putting that Yes. bit, we're yes.

the did sale Okay. missed you of the Changing but on the gain the gears, and apologize I it, equity investment? size of if disclose

the trading, was million. disclose equity yes. No. didn't investment, We $XXX It

XXX million.

Thanks so Awesome. much. Okay.

you. Thank

with Research. Please Chubak Wolfe go to Steven now go We'll ahead.

good morning. Hey,

I So start to on wanted business. the banking with question investment off the

improve speak And I We fee that quarters. more or share momentum driving in whether some quarter. to could business of it anything you nice seen hoping of changes to? it's some some was some in increasing recent its So the factors maybe had attribute that you would pretty leadership to else the the share loss

Sure.

to review, I think XX%. quick a market the year-over-year just down were Dealogic So according fees

were we've at picked I fees XX%, if fees reported up us, say maybe clearly Dealogic And you Our market so down would share. at this meaningful in only look quarter X%. least for

that a we were said slippage a three not bit result this going think ever do, we all we of things banking, and of had but we was should think we problem a investment there top in to I the is that there. little be

on decided we reinvigorated the market. cover so And middle more add just bankers to focus. particularly We the to

when We've done corporate the around the and certainly across commercial the be that. more that us commercial out bankers U.S. bankers I few army to effect. leadership been clients bankers to team and for to segment. think They've global need investment And We great just to there's got I probably have And those that loans dedicated the We're a adding We've They're need now investment be all relationships. They going Remember, an think making commercial with years. of to just for opportunity bankers. just is do product an something, business -- in having our corporate the there. regional market there. from needed and use we reinvigoration banking, banking more. bank bank add to have companies

more to heavier Helpful a very more are of across topic it's you one pretty me that in I to speak disclosures, a it's whether benign doctors or color. some Also of NII, terms I And relating tack. growth, Paul, the obviously flawed, are you driving rate the the different then, of it's that anything impact in offsets static There's you cited versus and speak it the explicitly deposit industry from just mean inherently XX-Q can curve, XX-Q disclosed on on slightly to? some the comparing issues forward maybe volume snapshot. versus sensitivity your else the know lines the what which

of the couple Paul basis broader down Paul lost on is sometimes, has shock curve in points Just statement. and the a to we gets that XXX precise, it. XXX forward I'll points of top that disclosed basis said let one times thing to get across be the into When curve what

see so two curve from stable having current off they of the minus confused of that the And case the think another XX sometimes its by environment people because get by then in rate rest XXX, and its actually off. year and cuts we rate and the forward XXX today its

which have, twice We're we've careful sort broader miscalculation have. factors. And people. you're sure people making people other so But that you other that can you that us. ahead saying dynamic, but Paul of not seen get that not don't mentioned be just through take Paul of But has the make

Look, lot change, you we've add. not sure you've rate about those I'm clients, same clients go the where up on got And Banking there on down, done mean probably if be clients roughly a on pass-through. of else great the if the going GWIM right, can just little think room the or pass-through rate of bit we've I right. rates if are got rate paid you job cycle, because our consumer up clients, in clients Sure. what to I the Global where more but they isn't got downside, be

we're with. living dynamic So the that's

On you've going got interest later to top on rates that some a impact only you're quarter in effect factor It's doesn't write-off you long impact. an to the so see and term when month of on. an what's down continue of later go get going when in forever. or the go increase that down, rates the lag premium, That

away due by the Paul, basis the points basis of doesn't just goes during the fall quarter seasonality. if couple again the quarter, that sort points on next to basis which XX a premium of tenure in so this of compression the and points another amortization quarter

listed those away. is we of and of careful talk pricing. instantaneously deposit factors, literally basis and spot But you are make same about deposit when think seven understand always long to as it people these estimates And a sure that the next change that rates quarter three quarter. in things effect – quarterly quarter goes on, pricing, twist growth, then about to can the loan basis. when loan So, points, that's velocity growth, are that the early some this don't that these have a they think And back all that's away -- go move it issues affect of as about move Paul you as online the why go where the market of sort really just

going grow colleagues grew Now, rest in securities. earlier The got We of grew is grow. loans. in and ultimately and the that different. along be the this this That said deposit is billion make we've deposit twist growing loans $XX-odd would turns of one drive we're and deposits. that's to. the clue the The of We to year-over-year. and core up company is the way your to $XX billion NII little and asset question the earnings is will power can business average That

Brian. questions. Very Thanks my taking helpful, for

comes Please from go Bank. ahead. Matt next Our Deutsche question with O'Connor

Good morning.

tie ago. beyond thought you few at year? I mention, think what think kind if alluding other volume area rate thoughts can then that pull is areas thinking puts levers below if to just like you costs. of that But is you try question months or But I earlier mentioned it's a You some on costs? did about related were you're capital to what little this at on revenue some shortfall related on some market a gave lower on a I driven what bit if the to cost you costs there's or stable and there's one this is your point, expenses be to areas the flat rate environment takes on year for if have have the base can your are in? And and those it weaker pull? case, side environment, you that guess, there said relatively you $XX keep call just So billion. guidance And

So had over one $XX.X markets think I around quarter, It seasonality of Except plus. if that. I quarterly ran plus, with strong was we the billion first stuff the FICA the two quarter think the you billion, we've it which a and sort of $XX.X think was for about billion, in like expenses. last billion, quarter $XX.X years $XX.X

a rate. got run basically, thing at we So this

remember, has XXXX, picked that rate but to up. -- got in so And run you've

million last came through, ran investment year, million million them technology A reform we'd in when $XXX back chunk said through go you to If and this of tax of put or platform. the about year. through it's more we $XXX run $XXX

over then there's you did other And So We rent near-term with great We increased share the expense. $XX.X be this we cost billion the part, the benefits. and it all we'd then have so And stock. the in stuff, in billion a all and $XX.X amortization said we all P&L incentives, today. That's that, to X thought billion, there's the the that of is deferred did programs. was an $X for success. There year.

And Paul that all going has that and to billion told we'd that closer extra you on basically to investments. all $XX be assume with

can -- relative there's to which company. mean health, org where the understand BAC, but to you we all us. billion $XX so said keep [Indiscernible] goes excellence, us we're if billion. even of So know $XX back operational to it we of billion, driving SIM efficiency have the we listening -- believed lot lot teammates when you invested allows New And here. do. that go XXXX the Nobody doesn't the We the kind still $XX a whatever We've we'd growth. not ability we we environment the is world more were, on, running got in are That of at just that, I $XX billion. will be inherent We don't all know, more you at -- you, a running of X% and low told

Mike's turns more rate second additional do of to the delight to accumulation the year-over-year of the ahead last which you is then population, the frankly, level, it's point, then which -- won't this comp in drives the through quarter scores quarter. want still at of of marketing That don't then accounts means but investment part of those year, kind efficiency sustain customer the that we into get of $XXX that That us in the serve down was efficiency, model. that satisfaction roof, million digital ratio. to the millennial the is quarter, us to What twice future allows because, driving customers, which operating

here to to push models our But we happens. flattish what and those we're said, so that from a were all down because you and they We in basic just do come benefit. back, anything. pay down investments XXXX to -- don't is saying But management. driving goes through think do And which will the of and see your gave lever. we going now, right what we continue any the saying XXXX kept you we're teammates good pull XXXX to of basically XXXX, in said, efficiency just We to is didn't XXXX a platform million We this hundred didn't couple under we'll we by that.

long-term But lower be to go market happening. 'XX the million strategy, XX couple good, going the investment next shouldn't that comes accumulations investments $X.XX frankly, importantly, and and seeing belief that you. as that adding if there, for the And is in now, change our quarter. our middle-market And are pick again us over we're about and talking to $XXX wouldn't don't and right your years paying we adding that get because, bankers the Board's shareholders' expenses the back. to come on -- you investment change number change by up of belief, investment just in share strategic are belief make banking, the drives our it's are but our than doubling strategy we investment wouldn't to you're

you all have CCAR Okay. all It's to? is of use that just use you that? front even to flexibility helpful. wanted should if mentioned earlier. And the you as if you separately ask the plan or an spread And timing then do do end Do billion you plan XX to the approval, to impressive, we assume

use works guidance equally over way quarters sort they the plan the you. all spread under method its Yes. We to give the and of and

quarters spread use we So four it. its over of and evenly to yes, the XXX% plan

you. Thank Okay.

now go We'll Jeffries. to Usdin with Ken

Your line is open.

We expect morning, And Good strong charge-offs Thanks. quarter. XXX a billion even a continue. living opening range to in credit went of guys in have that how you you mentioned then guys. this under it the about remarks Brian, your quarter. is kind just to talk and

barely this XXX-ish just in any see kind be any great? can update expecting would on Just with why moving about is? change of you even we you. you're what reason talk as Thank So losses rate an should or even run card

it. about talked Paul. one, because Go to let Paul just hit he ahead, that I'll

quarter. net this lower quarter. than a So, you're we billion earlier right. charge-off our charge-offs we because But back with I we mean, that's associated took this loans wrote sold were the

one that because now we will bouncing or thing. will billion approximately on billion to And it’s always we been quarters follow if see be. around the it – if that can that. that we where then the net where commercials move think now So bottom commercial a up And environment that's think to a bounce many number, in client or it we're around ��� out and if for another it’s $X provision is to is the approximately number, to back good its many, charge-off. think a number, if stays going we billion But many,

our at charge-off rate so consistent we're charge-off And when current rates, sometimes the day, our you XX% year-over-year you've if basically the you in live number, fairly And because growth the think about the cards the it's credit. basically right? stable of -- it, portfolio, of look is the end all stable seen year and At And increase card consistent. XXXX. that activity, since this be XX%, lowest with

probably very, focused to prime through to a basis that combined strong is primary base very the going lead that customer book, account there. rewards customer So

So our economy year, not change. and move the what we that, around we then research X%. credit, is And feel That's about mid-twos. along next view would the in given has good team see the low a of continues and it to to

about issuance, question some the just Okay, where think the guys I expect more of just you opportunities capital part preferred there going you just stack, refinance lend the some least And or second My that on to got and calls. preferred a dividend did to is Can is it. you pending talk forward? at either stack?

really roughly place just the preferred in Well, end we're where by preferreds to up in plan to like of higher some place that we're talk terms started because lower-yielding never stack, we of of going preferreds. yielding reducing same about stuff. cost the calling we the stack But preferred

forward the terms based those But fourth of So kind approximately the get of -- the quarter while could and kind little on in quarter, because after fluctuate the are upon floating in the the hand, the other in quarter bit a XXX dividends first XXX second well. it's range range. some the based quarter we're of as and in in of them third a rates. That of upon and some we're

Thank OK. you. it, Got

Thanks.

you. Thank

from with comes question RBC. next Our Gerard Cassidy

is line open. Your

Gerard. Morning,

out capital if run in stress SEB? this. addressed be Good morning, next ratio guys. the ratio now apologize How share buffer you are your you? it CCAR? already. may what Can And year's Have comes with you're us missed how numbers? under Paul, you CETX the I I managing have with CETX is that the included you guys the may

we ratio Well, scenarios, what the know company. the be X.X. run now years years. our growth CCAR you we be would scenarios, past don't CETX and are a our that's four got prime the final going And look using if rule's is to floor and and X.X% SEB those and you And our below of of to just super-prime. yet. four how the ratio right the at loans three reflection run that We've responsible consumer last in But

We have a that's off. legacy very running prudent trading, we've portfolio and got

we're last three So four out the of below we've below, been years. for

which XX.X% was what referring What is minimum and this clear, Paul CETX is the Lee. to to said, he X.X%. be our our requirement, And was is

very Brian, the are said you with can Very good. then, has the midsized but business and numbers, and in about numbers share but We employment economy both seeing businesses? which customers their you outlook? Obviously, at what I small your you what the are the for strong, from had know you talked consumer larger saying guys business themselves. are to speak all about see research And Merrill what us Lynch,

fact the that. flows type So, reestablish loan and fact is current wish the They that, all of good. thing, dealing core impact. more words, international so that they're in If that's of say the near impact the is the down. running the resolution belief with there. they the and because their all to the they're the a the of sanguine. would future XX% stuff, the chain, The supply of would the feel have. one is China trade trade the usage activity business, lines global I'd of commercial depending on has levels and the growth whatever they're But slowed They come all strong. relationships discussions there's more customer, It's good. is that high

they not So growth, struggling are the optimistic. watch especially. but U.S. they in that. their They're like business there's place trying plans business were investment situations more being in start hear things I'd the see thing And I to They fall robust that's resolved. they're say these get solid lacking as people think to that in still but headlines XXXX, to because if out we're in if situations pent-up figure to continue the enthusiasm daily, and these you'll as

i.e., the the were -- more they about coming right reform, indications were they On their the to hand, in in there where are surveys our consistent peaks basically where other were they as are confidence in XXXX after hit tax up they XXXX.

And limits and say other the little they're I between But around discussions of out them. mitigated levels staying reform they've has again. down are and get they'll and to came That early to now, the but resolve they're by sort bit, year and accelerate the XXXX speed enthusiasm they'll then as come XXXX this Right been of the a and So waiting and push they've kind been, uncertainty back business as they're there's high back of than anytime tax. solid. within trade for overall, regulatory -- that. tremendous think in

you. Thank

And Brian with to Kleinhanzl KBW. we'll go now

open. is line Your

you those? Are were trying Great, conservative? the that thanks. being sense gave. there. assumptions beta Yes, just What a get deposit the Just behind on NII sensitivity quick a question to you

Sure.

and have in got different bit a concept you through increase that to clients, a of basics. the franchise consumer just the it, but not the rate going So detail, and the GWIM give got little we've up more I'll we've the on way down, again, former scenario paid. pass-through think get where have in to Global roughly just we obviously to a down about That's the lot got rate similar, sensitivity of than clients a rate That's passed up-and-down Banking an scenario in scenario. we've

the would look So again, XX%, if of and scenario higher Banking and at and the Global range. lower, you XX% we're consumer a approximately XX%, be rate a kind talking be that lot down in an GWIM would average lot pass-through

Thanks. great. Okay,

you. Thank

St with we'll ahead. And now Research. Kevin to go Please go KSP Pierre

morning. Thanks. good Hi,

you're a tax to the the has constant backwards channels? spend increase. strong, the and obviously in Going looking investment trends and pretty mobile reinvestment mentioned digital really and spend been tax several which Is is that you that back digital flat, but mobile to last likely quarters, your over

savings I Yes. I tax It's spend been said after consistent. elevated we think We've what tax -- been been consistent. then relatively and is we've

on provide about we're the toward like Brexit, that over of One time think and to that's look for you things a more a are and and as number pop, planning receiving years, more think term, you separation next money as of about better that, flat op say that benefit I'd good. the always we spent if actually broker-dealer been resolution that reposition bunch happy other of ends to we that. of the hear forward money couple combinations can initiatives a a lack of teammates would our And for number,

But are that these impacts things compound.

I'll you And an example. so give

weeks took of do were digitally do $X year at $X originated But weeks billion. billion. $X little a mortgage, us XX, a a to third billion. this It the it over you growing. which second the took to If took year look billion do $X us six it's so the the eight -- digital first the to quarter us It

client really investments happening actually experience. these then a made of as be And origination happens remember saving lot it process good implementations it's in -- up. and with money is ramps well the what technology a what's as is in digital So the mortgage, us

customers, told and first million take even there that. But you things businesses out, month, it's small or growing. it's see XX and Erica, -- though to haven't a interactions out at which going numbers, is Business moved you people so million take can now And XX% each went type that several it's we year. like week of

digitization. this now compounding the more $XXX down written so Checks year-over-year. growing points that effectively. effect are to All of really And coming billion

at. consistent investment three, renders that that's driving out, So and benefits we're what two, five years

So lines And speak. don't so We in there's coding careful X -- problem, and so our you about wood. have be million only much There's a you -- weekend be to to on can we've and every do got consistent of do. we'll you've knock investment. conversion

have we the implemented job, team that tremendous great so a the new done haven't of over codes, here. and issues and seen Cathy we've to years any course speak

can And what so we are are and we the bound out we of done more get benefits it getting by money. by than

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not a numbers X,XXX system. distribution to X,XXX the be but obviously, see We'll the from complete the it's dramatic as

more them have XX,XXX So take number up etcetera I check to have the something branches XX,XXX now. go because deposit. more people to, think side, versus They the transaction up The People bigger. and completely They're have are gone down. needs, the ATMs them. of from Rates complex different. come in take or

driving we're So co-location. more

whether if remember the the one is, whether than in news day, Denver, it's of you States. United still in XX retail share the markets faster think markets have whether interesting real it's at end the we deposit growing what several that's we're number about But the not it's We're the in and else, but whether Cincinnati, top it's the Columbus. we're Minneapolis, Indianapolis, building out, now anybody

top in how other we and are cities XX that over the here. many the we of out against XX And we piece figure a and top there's have drive Pittsburgh, time in them to next configuration

a the it major So branches cities, enterprises you with the But and private see Business branch the drift have net, net actual of teammates teammates co-location in banking Merrill the going into elements teammates drive. or to down little have teammates small business because thought bit or net, is Banking or consolidation bigger count would part even you different than may down. constant back of

of the fell and That on And four it's is five you top by about on combination that, that. and operating deposits. of get less on X the add if It percent of of it total of that think further investment term this that. top – consumer at focused cost cost franchise and the year-over-year And flat everything a in less if get you're That is goods basically wonderful that focused the look would the produce to just deposit about better for year-over-year What of lack platform. of don't a actually everything. I as or basis sold franchise is you phones. powerful not a that you engine, talked if is points the transaction repaid, of it loans franchise that on so and So a but I we this. branches or cost

Great. Thanks, much. very

now we'll with JPMorgan. Vivek And go to Juneja

Your line open. is

taking Hi. Thanks for of the couple questions. a question,

out curve. pointed that NII forward of we about and you times the on of that sure Brian guidance based over was, it fact couple above Paul making the and take your account since is Firstly,

realized? since linear, that second may being a So sense would as what are not us you given let's period. do back, but what a these curve you've What look realized can that NII out the things give of --what half, would happen. or outlook forward know is not NII, with given realistic on forward curve that you be the step when over be NII likely the a is if to XX-month I for

not very be I to But Well just question followed quite I'm your sure, Vivek. clear…

Well ahead. could….sorry go

Well, we went were in the read the call, curve. this were asset we about the What of impact earlier that through XX basis those the talking the you the somebody disclosures of was. asked forward thought and in excess next of we in that is what about Q, what sensitivity company, points that

exactly you XXXX saying, I growth X% what is X% to goes which think in And you're Paul’s and those the Great. earlier rates XXXX remarks that prepared the statements gave XXXX. – curve rest of to and are follow stable forward he to of

Right. Right.

I Brian. rather half. fuller simply I'm XXXX asking months and for Now you’ve for that a the guess second given XX just than

comes, happens few we or next you the We better that But growth, Oh growth, do add over two view quarters you know exiting the all deposit said cut months, run but level factors of of he more you did. me. and given comes, excuse whether have it to at are as we'll we there. those the a can it, we watch better XXXX what XXXX that can rate you think when in loan XXXX

So next Paul a about little bit said, know that talk think we when I we'll more. quarter

Okay.

probably Residential last seen accelerated in we've in the that's rates of years, let’s another And lower to than far more despite actually this Okay, you've mark, loan move quarter. of dollar so growth quarter couple one. what mortgage seen and double in sharply more the refire.

conforming, So a such jumbos? are some there is you holding on in sharp or to increase

now. mortgages -- six, years have held all have we seven We for

even mean We the conforming.

to that everything -- from a our mortgage We else worth goes sell balance the away VA frankly someone basically risk we take FHA, because sell in isn't the portfolio that passing and on the risk us. sheet, to

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our prime about remember good super on and prime. focused These But customers. we're risk. are feel We the

other was actually detail, that Okay. Is is amount trading? you $XXX Got in I web know that the trade included income gave. it. million One or tiny game. in

in that we today I discussed trading the in was global included income presented and sales markets. we It's that and external in numbers materials. presented -- That other the in not the in

not revenue trading. in and sales the in but it's So

you. Thank great. Okay,

Thank you.

now Generale. ahead. Please to Lim We'll Societe with Andrew go go

of more just rates. Hi, thanks interest, terms questions. my of I'm side in taking color looking bit for deposit the mix sort a and the net for on

nine. So this slide is related to

grow and deposits global interest interest we quite much emanating nicely. know the growing And bearing you in So very banking see side. to from deposits struggling going what's the that's on here

it's deposits talk just about bit especially more side? more So why bit in your the competitive grow a banking could non-interest global dynamics a you to as to bearing if wondering difficult

second then bearing And is to deposit my question relating the interest side.

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bankers to treasury focus That the and what world. that at us. XX% the the the have global So is X% relations from clients value grew fact bringing that services the in reflects we're banking XX% added, we've sophistication you climb the and good and should and on around reflects U.S. the is year-over-year. platform in deposits feels we growth and it in they gone that

So was question? that, second that’s all in for the first the question. What

your deposits. on your bearing -- rates The non, on interest

at look -- to we your X XX. going rate we're up to interest your U.S. basis then I supplement a As disclosure, as XX points bearing deposit think to looking from

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expect to shift forward? continue mix And going that would

if their Well, environment I depends It what don't he's going to know continue. does.

call were business looking it are the expect business. said banking because know that -- were institutional continue in Remember, question growth should into global growing checking the like you consumers consecutive in businesses, of trends we the a quarters, that XX to really is earlier different so you the there

and see wealth a other way the then they if that think of the down, and have And sort look As of manager’s will little thing you the use back stabilize the you you at to movement, cash. or you rates way then bit. moved, about a saw come actually as between, come movement stabilize rates if half

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much. That's very great. Thanks

follow Mike today ahead. question from Wells a up last Fargo is our with Mayo Please And Securities. go

AOCI $X.X good. Hi, quarter, so by what, I guess that's linked billion Your got it better

growth year. necessarily You lower don't like got that. it NII from Investors this

interest spread guidance guess, this it, because I you capital to of rates. better lower lower while better have better for revenues, lower don't with revenues, environment asking those credit securities guidance how I'm book So and values have value. I think AOCI, like you also investors you you about but know do better

worried do think how you look fine. tradeoff, think those you gains Do So investors, securities, that you about from get you monetizing this is of you and at say, hey as it? when as

You to there. we're paying look at a value few or economic firm, of attention points not basic here the the

you We are as the your term look at long and going earlier aware Mike to well back question.

with worth securities then invest So, the we through the half for what AOCI trade whatever last optimize sheet. efficient mortgage current we we're quarter. the People to always those when advantaged and the that to talked But shareholder. you We're have going look here here but about the come at all dynamics it I, time. are up this that always quarter most activity as we not debate and so forward the the in lower long use about, of about came customer forget balance that's you period NII every are from half treasuries the to rates the backs and treasuries of term offset the more now and let

driving long don't so of that the the value try so penny a to because to at said And as say of you let's we franchise. here term end day try we're -- get

payback optimize for things billions here returning the is that is, quarter? are growing have you you absolutely the But though solve is months, manage and value a an the day, you make question we keeps of company. you week, trying do for And of long that not company the long XXX% know And a to referenced that. always we're decade for the turn reality the dollars, term ran for the and that That's spirit we're by to that. getting going given answer decision the real in on this is -- tens your it many Yes. And value, excess mindful of the term for think capital of we how constraints our a driven we're of it run part how of we I the company we we CCAR that So last the we week. yes. -- even is of of

And then last follow up.

interest activity Just low that this recession, going rates whole of maybe down. we're falling maybe into discussion is head assumes to

have. better have than data You we

overall So just read for what's to your your read conditions on you on What's do the business? the economy?

any don't We see condition.

If by consumers, U.S. about driven level, employment two you and of think the it’s counts. thirds think job the you the if economy, the

economy plus to rate in year. do is reform accelerating, wage averages paying not we're the than outside are It our quarter. recession. some last wage with about mean the we consumer in is a can to firm, quarter. in I for our teammates they share the it, is, their did think says, U.S. in the is impacts a anything a I X% two you industry, don't X% first times other of of benefits the higher tax their and our about much not success. and the the peers growth good growth second last through see versus of has with year their grown due We largely consistent think It of national of anything benefits which only in quarter business plus X% spending talked shape. more growth see the the You and by and consistent running We a three exceeds wages rate that What a see growth. my borrowing second things and lot

very, feel it’s we very so And solid.

was Mike. a but it quarter, quarter bit plays pick And a predicted there and everybody up how consumer seeing first second slowdown the you're seeing actually yes, see it is you're by evidenced, from little slowdown but now side so we'll that that out and in

right. Thank All you.

Moynihan to at Brian time. no remarks. to closing is It turn now pleasure this have for We back our further call over questions my

much interest company. earnings. time We and Thank very had of a our quarter for you in your record your strong

a it see terms off risk We're the by of Mike franchise operating we the managing focused said, the to do by and to issue to in We continue a question We’ll to environment come growth, we model. sustainable investing on, right continue manage plan back that. value But this capital wonderful responsibly any and we have. just well, the to way. is franchise in end on have to you. deliver by basis. driving continued that the you moderating customer Thank the where have we good that share change of push Growing

today's conclude you does participation. for program. This your Thank

at disconnect may You anytime.