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PNC Financial Services (PNC)

Participants
Bryan Gill Director of IR
Bill Demchak Chairman, President and CEO
Rob Reilly EVP and CFO
Betsy Graseck Morgan Stanley
Bill Carcache Wolfe Research
Mike Mayo Wells Fargo Securities
John Penn Carey Evercore ISI
Scott Siefers Piper Sandler
Gerard Cassidy RBC
Terry McEvoy Stephens Inc.
Call transcript
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Operator

Good morning. My name is Pama, and I will be your conference operator today. At this time, I would like to welcome everyone to the PNC Financial Services Group Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. Instructions]. [Operator

go this over recorded. Investor to Bryan Sir, reminder, turn will Relations, is Gill. call the the please call a I being now Mr. As ahead. Director of

Bryan Gill

of about CFO. good information. and reconciliations Well, thank call information the of on release Vice undertakes PNC materials. our and non-GAAP Rob this President pnc.com, call Reilly, speak measures Financial in to July PNC obligation and everybody. Cautionary this available and today's no to Group. on PNC's as Relations. today's investor Executive for corporate Participating as our are morning, SEC Today's XX, them. Services materials earnings included are Investor XXXX, These other well you forward-looking all statements under conference as Welcome CEO, statements and presentation and contains Pama, as are update Chairman, as website, Bill materials well President These filings Demchak; only

turn to Now, like Bill. call to I'd the over

Bill Demchak

Thanks, Bryan, good morning, and everybody.

pretty credit we returns. higher a in continued improvements of as growth,, of adjustments had announcement take you’ve interest lot one in USA important quality to quarter minutes, impact accomplished things amount USA results created well noise second income, fair June the and of as results solid of reported purchase X. merger-related of a the a BBVA of net on couple that acquisition a in we the closing aside, fee putting accounting going through most all driven Obviously was of and month this impacts. the in capital you quarter strong Rob's but of by those our good adding As seen, operating BBVA and

within in due business. While stabilized legacy have acquisition, loan the corporate consumer to PNC C&I and spot institutional loan loans utilization did sheet. rate balance growth our seen banking from both We've increased we primarily the

the to rebounded a of new and by highest years loan couple approvals offset However, that's actually near while lows historic downs. remain been level they have in pay continued

legacy grow -- we strong within drive we're into to debate remains growth relative quarter, legacy ultimately loans 'XX. confident book, to 'XX but consumer which the the saw is of growth, timing Within open loan growth it the to the and going economic PNC as of that an strong was encouraging second that and the in half loan

During we billion through the to of deploy excess net continued purchases. quarter, liquidity $XX security

recent look our rally Going as significant will we reduce in be forward to and position. cash considering disciplined the treasuries elevated

results to sheet our to of our and the increase stock returning balance common in program. announced results a commitment underscore strength repurchase You the our a $X.X X% saw billion quarterly share and our capital that shareholders dividend following we

in we're customers support invest capital to Importantly, and to and continue businesses. with our well liquidity positioned substantial our

and with it access more integration. Regarding expands and BBVA, the running progress are. franchise we to an ground and where for us deal the years with employees conversion PNC the XX provides in XX top of pleased and gives MSAs be are great a across for growth us our footprint I with country for to successful opportunity coast-to-coast and hit MSAs preparing come. BBVA couldn't significantly The have making

especially opportunities those outstanding. as better markets. than employees markets Across deal and present to and of in pipelines are same through build, footprint, capabilities All skills our enhanced new are calls metrics we this the are going the are seeing take the finally we of original our joint or you Rob's and making we deal growth new and estimated underlying

income BBVA mid-XX% legacy to drive closer significant to level. is to BBVA's US the PNC's We USA's noninterest believe continue revenue as to revenue contribution look -- opportunity total synergy we

year. process, product the past a major lift by investments available XX million our Since to taking April, million this allows of we've applications upon low in mode and data to expedite integration simplify to reduce have expected address applications X.X we removing to delivered later cash our for existing to as customers PNC leveraging more and complexity, it the front, wallet of execute approach as cash of virtual the USA XXX and Over million strategy. On which expansion was to experiences mode announcing seen than technology to significant the it automation BBVA drive shift we're want drive to wallet the of the forward end out remaining low synergies in national frustration the many for making us it the conversion that of our growth industry. X.X virtual BBVA with customer look we're relationships to the month across customers our and helps the available engagement to customer in and convert. also mention rollout over customers June, continued strong the I end roll we customers this planning to time, alerts new and

and Finally, allowed a your I'd all this USA look our to at PNC take over of like us for new and BBVA the close that, I'll closer turn we'll questions. their it early to and success. Rob deal thanking then our with and to for close hard legacy conversion And prepare results employees by for long-term work the

Rob Reilly

good morning, Bill Thank everyone.

now quarter, just BBVA mentioned market throughout Belt Bill successfully second Sun expanding region. which notable footprint acquisition the significantly during USA, and the our includes we completed growth our of As

acquisition spot this Slide timing in quarter $XX Overall, which the loans, will was of and is spot linked presented quarter course balance sheet June million four basis $XX balance $XX in a on Our and X the while on driven the contributed our acquisition. to of securities of cover of on we deposit due typically by end. growth investment that is quarter closing balance billion at balances sheet the focus average billion

ended in $XX detail million investment XX%, the levels over the slides. quarter deposits deal and a by cover We we and and increased next CETX the quarter, during of $X editions anticipated securities value the balances the with at $X loan $XX.XX the above tangible those share book per declined million substantially Excluding announcement. the legacy ratio time PNC declined more of drivers an estimated million, few I'll of

significant as As cash positioned common on per a to mentioned, recently with increase Bill just dividend quarterly flexibility result, raising announced dividend we're and the share. we our capital well a $X.XX the $X.XX to stock,

first quarter loans $XXX contributions. alone quarter of were remained shows for billion the highlighting and mix growth to in and in deposits repurchase million in and stable the reinstated we billion Slide billion the X.XX% up loan, beginning $XX accounting our billion due a the end loans period Slide programs and loans. our the $XXX third were Additionally, for loan increase of quarter at and the at fourth securities of in share acquisition combined quarter real for X loans acquisition XXXX. growth quarter was $X.X end Securities to period billion PPP Total over yield estate deposits the a by $XXX the with decline million residential Total linked and rate the by the relative compared $XX our represented decline balances acquisition, of consistent at million portfolio. consumer $XX to $X.X at purchases. commercial linked six contributed securities thirds commercial approximately the and balances well a our legacy billion Taking one primarily billion PNC Reserve million details past a offset reflected spot the billion in quarter, now acquired loans, third BBVA one XX $XX June portfolio. spot the end in on balances quarter. $XX balances at Consumer basis as loan points, and and two up as billion. $XX change basis loans with interest-bearing The deposits closer $XX paid the of of point increased consumer. our of from net were approximately year. five loan PNC $XXX on Federal million is were at look of legacy second $X addition loan

payment position our the requirements. securities $XX.X acquisition. for and in million linked the our of continued Our cash remains linked reflecting quarter LCR balances Despite decreased million deployment decline, fed $XX of liquidity quarter excess in the the

Slide income impact includes As statement of acquisition. the on seven, quarter you our second see the can

USA items, EPS these was an included provision EPS which reported for and quarter. initial the $X.XX billion BBVA $X integration Adjusted in $X.XX, of for was second Our $XXX million. of cost

credit improved Second or including with XX% month quarter expenses included as increase quarter, the which revenue related connection growth. was million first as integration activity. of with the of quality $X.X provision significant recapture $XXX well as as expenses as billion than Expenses of million $X factors fee strong $XXX items up $XXX higher PNC macroeconomic quarter, initial well litigation more $XXX the BBVA billion related million compared operating and reserves balance one $XXX business linked as to acquisition offset million million in organic to provision The and a provision by and reduction, was acquisition. well legacy of reflecting

As $X.X quarter. billion second in income a the result, net total was

drivers let's key performance the Now detail. in discuss of this more

Slide illustrate of XX% and reflect impact Net total mix basis point million business the the second of charts of margin two these noninterest was interest with acquisition. or was $XXX to $X.X eight, quarter. both million net income of up the in Turning diversified revenue income up a X.XX% XX% representing interest which of

of higher Within Corporate of transaction and grew categories; noninterest or treasury $XXX that a due income revenue. advisory more Consumer due contributed grew $XX revenue. million to linked and higher revenue. Service M&A fee $XX services $XXX PNC XX% million. total, fee $XXX visa BBVA income gains as billion or performance primarily million on and or higher of million services driven $XXX of $X.X $XX million first increased million by private a merchant Taking higher volume million as USA's securities quarter. by declined to legacy X% In charges result look primarily quarter our $XX PNC quarter, average revenue a of from noninterest compared fees growth grew $XX acquisition. $XX month XX% well each as increased at asset increased $X.X XX% income well the BBVA management services negative activity increased as in the XX%, addition million or equity increased of million quarter Other $XXX deposits the or linked as included of driven or fee derivative fees XX% one million markets. income Second to million legacy equity of management the operations noninterest lower by and USA. billion adjustment, product detailed

BBVA's by X, XX% and expenses expenses integration remainder included the as month up by or million Slide to The marketing million our second one linked $XXX to related activity expenses well addition of $XXX was million a quarter as reserves. increased to items and of the increase Turning $XXX quarter driven going going million PNC. operating in with for of have operating standalone previously were and business higher remain significant improvement expenses $XXX our acquisition, expenses full legacy to around year reduce the through continuous to are forward. we expense and management disciplined we're to we by program our achieve and Nevertheless, as Obviously our on stated, target. goal our XXXX PNC a we've be track legal

Additionally, the we're expense $XXX expense USA's full savings we'll XXXX. of in million in base realize net BBVA confident

$XXX of approximately at since loans Our accounting to the loan the were acquired billion charge-offs loan at of initial billion by $XXX credit charge-offs XX to credit Upon XX or Within change for the annualized acquisition. losses from metrics BBVA value PNC ratio $X.X legacy acquired $X.X addition the charge-offs declined legacy a total the portfolio, XX and of the as million APL June million our changes. with related of of nonperforming Nonperforming USA released million, both related legacy length legacy acquisition, billion Slide shows the XX points. in and within in treatment loans an for factors. loans both are credit XXXX loans. second PNC allowance of of a performance macroeconomic net Net commercial of considerably $X million PNC improved to to acquisition. to the end reduced purchase the $XX quarter. X.X% were $XXX initial the portfolio. consumer. loans. a impact X.X% non-PCB presented was were total and we to fair reflect on were the loans, $XXX the during and loans largely result quality $X.X an our million of credit subsequently to Legacy acquired $XXX improved we due to result deteriorated portfolio APL declined million. delinquencies X.X% level Acquired for for credit and which billion through decreases marks lowest provision basis PNC established The loans closing related reserves Slide related Apart purchase quarter the required the

total loans outstanding. total reserves yearend our in So combined consolidated X.XX% a for entity result, of $X.X billion were quarter as the representing

to of XX, deal to USA rate Turning have improved which BBVA acquisition, we same Slide all the announcement. I now or of update since provide to closed that metrics, an the the our deal some are wanted

you our As closing relative mentioned, price and was expectations. price per the purchase $XX.X share approximately billion to and fixed know, tangible are value favorable all cash book CETX an at already in as ratio the I've original was

million XX% $XXX and return in XX%, We annualized continue in per an accretion reduction than of share XXXX. expense internal excess of of of more an earnings to project rate

cost expectations expectations. be XXXX loans at our recognized of initial result, announced we expect BBVA the for all better as million, a approximately our majority have the nonrecurring our total is integration than consistent Additionally, these metrics, in to expectations. look improved is a original deal and USA $XXX the and to credit merger we've APL the which since Taking with for

and net the which of million, several as is $XXX net our majority be over adjustment next anticipated, value amortized of a addition, premium with purchase accounting In nominal years. the will fair

In assets, by short net second PNC second-quarter acquisition million For highlighted successful not of to the $XX the strong maturity due realize dated quarter, a income, reported to of the USA. which the will some recur. acquired interest benefit BBVA we summary

zero the as to economy, during expectations quarter rate the are expect add overall potential surpass sometime shareholders transaction begin of significant funds third GDP to regard we prerecession realize our the to In for We for to our XXXX. to our remain value throughout franchise. the levels of this to and combined near current the fed view

to quarter of BBVA impacted quarter USA at of operations Looking now the include will the which XXXX. third compared XXXX, quarter full the second

We spot On loans. balances expect $X.X NII be PPP include be a basis, up billion percentage mid the to loan in the teens. in total modestly up expect decline we to which

fee income the be expect in mid-single-digit. to We up

up expenses be in expect excluding total expense, non-interest high integration We to the single digits.

net between non-interest income $XXX net between offs charge activity. other million third to be $XXXmillion and excluding expect $XXX We to And visa gains and be securities and million we $XXX expect million. quarter

I Phil take of be with during acknowledged is account addition year but your we of are modest the We XX% half be in for BBVA results result integration into the XX% a and spot ready with standalone months remains XX% of second And operating full half our taking the XX% second some and up forecasted compared questions. six the our revenues guidance, between exists operating annual not and upside Plus year, guidance. more the XXXX. costs For as first XXXX, expectation excluding results. USA and half loan to be and our growth PNC expenses expect up in that, the for included loan in to between to year, that of to seen growth, to

Operator

Betsy comes Thank line go you. the ahead. from [Operator Instructions]Your Graseckwith Stanley. Morgan question first of Please

Betsy Graseck

morning. good Hi,

Rob Reilly

Hey, good Betsy. morning.

Betsy Graseck

So it's great here. to growth the see start pick loan to up

The growth should your think first how loan question in book. we is have about just I on the

big here a loan where to there you've through likely really matter in about growing that and is growth? suggest that's thinking book USA exiting Now when loans that, you're we're to that has you that that would BBVA some period to enough churn the be going then, churn in, or come got not be

Rob Reilly

but we're rapid going going not portfolios or sell years. of -- Well, it's We're the a or matter, -- over it's extended to not bunch it's exit. to margin

industries, mature through So, run things balances will we over, bounces target from, and but from we from time likely that X X, grow those X, industries, as years. stretches will off certain other

Betsy Graseck

footprint does that All in separately, do Okay, then middle-market? the their them Great. now business house for business BBVA with loans national, right but already is and obviously you've anything added your

Rob Reilly

It's conversations. just It and adds of larger at network clients the right. a margin, potential

now of these would already, it have more I are some yes, more therefore they have dialogue, but expect all to markets and clients so will obviously So, now in we well.

Bill Demchak

introduce so they Harris-Williams to introduced. already be we'll new able commercial for Yeah, to if haven't BBVA clients USA our sure, been who

Betsy Graseck

we quarter. was from the really payout That this hike that perspective then just right. already expect -- full dividend setting all up? think Yeah, a in, were you just them announced in And about you And when that about wondering, result should do how the lastly, strong is from the your you of USA you recently out your, do run that how I'm how thinking BBVA coming earnings rate expenses that in, ratio? dividend outlook, of

Rob Reilly

I'm way this. to simple trying to think of answer the

story us into but could the to thought, kind in forward on the So and of in we, going a did what were short what CCAR coloration on a deal we bit close that say thought. then we fire and closed, had to results meant to a acceleration We short out of we threw month not on a fire deal income. drill which what in which figure I'm which drill our hurry, of we dividend long there's notice we've do because, is room kind than sooner the of managed we the

what we to not get So, go so was forward we is, something on. acted there's room which it that. this cycle on is just and and done thought miss as certainly we important which

Betsy Graseck

Okay.

Rob Reilly

that XX% a payout range. I'm this the on to is our we in with sorry. that for expect, and dividend target ratio years model said this XX% We business mix

Betsy Graseck

there. room Okay, no, right. Yeah, gut. that great was Feel my there all was that

the Thanks so commentary. appreciate So much.

Operator

up next. for And thank your you question

Research. question. Bill line from proceed Please We question with have Carcache of your a with Wolfe the

Bill Carcache

strategy. your guys progress made expansion national You in impressive have an

additional per PNCs to productivity the saw terms BBVA great acquisitions is of sell natural the revenues in place, to national we're the first what to why the to and branch incremental traditional branch? are next BBVAs those the of integral As sharply try better branch, begin I and generalists, significantly idea opportunity falling where your you -- but know But a branch example those your mean per it additional you we before revenues given to improve per acquisition for necessary ahead, analysis pushback expansion to in in rev of of paper? to decade. a there's there, on what look It's count a was that easy you How at of branch isolate in seeing how you would acquiring with that branches where the rise when furthering branches on revenues do was XXXX the point digitization the business.RBC I look hoping important part speak to with, to a general? acquire branches there's lot your could is

Rob Reilly

I branches so would focus much I wouldn't clients. on as on

So would smaller share? see seemed branches it in and you high market way we after be too do RBC get the today did the to the purpose deals to to possibly, was us se, get the Possibly me, then fact. optimize wouldn't that just per future, the but could in be we to greater now network of but gain instead would values branch and clients with

Bill Demchak

to solution we, we've conversion natural point some branches been to foundational doing. your centers, And which Dell

Bill Carcache

a near process the would around deploying from, there are And worried for of within thoughts? comments has term? to different how any your different love sensitivity of since hearing your we're that, philosophies percentage all liquidity get giving last your but having your your to assets just thought larger securities in benefit exchange banks, with bit future a curve, right. quarter I the been separately from about some up with Understood into flattened Okay, and change you

Rob Reilly

in I at put the, off writing of saw after as a barely you aggressively rally the BBVA. even Well, the, We saw first have the the, it went our liquidity. big liquidity, We we it pretty still guess check for we before down here. lot

during And Having tactical that very down I personally we and we'll watch said going is quarter. we rally to, out. So saw in be last fully current that, is or quarter we're we're had, that relative us more than likely w to slow it. the sensitive. slow not plays asset I that likely don't we this cause recent the overdone we and what last the how believe the will to to down still understand been had way and rally

Bill Demchak

are And our of guidance. into that built expectations our

Bill Carcache

steepening ask, Got right it. if around level to last of moving just opportunity we ahead And to competence look if and could one XXXX of forward get there, one assume if at the no the another 'XX could longer-term being to to are sort XX% and a your efficiency hike I lot further squeeze in there could curve of drive know, drive there, in that into you and the but your the one ratio high, one a speak improvements bit efficiency middle parts then I to able is wanted end of you range?

Rob Reilly

actually out we time to but look you The out environment as of whether the when we like. math there. of what see map takes expect costs costs franchise we there. Once simply of takes it, and question function BBVA tailing that what see get you revenue it you'll that you look the to would the integration period a it, 'XX is to The function

Operator

the And sir. Mike up question go we with Mayo Securities, line from ahead, you. a next, of Wells Fargo please Thank have

Mike Mayo

inning Hi years in, you common infrastructure guess spent And your long-term have BBVA a together, what .So, transformation? seven is getting integration. for I The and question. prepares well are the I tech a question question, long-term that in you short-term you your

you news BBVA you're worse this bad synergies that. I you operating when are having expected from And But So don't that that's some I the is negative think leverage what is guiding why news of last for slide. slightly in? kind banks? year like the the, good And and then be than inning you know should the having

Rob Reilly

first up you but term saying, conclude the our the six have the in percentages cause that, acquisition we're revenues with asked we're I than percentages. that's you at efficiency Well, not short they they guidance of expense year are, just, USA full Mike, That's raid, one, ratio. saying for that question, going They higher overlay BBVA what results. I'm less what simply might a glad months the into

revenues PNC think about we you halfway if beginning are we're that the the low up until, do fight were going year, leverage, expenses that's, said low I stable. you single And it, standalone the single And digits, if the don't it of largely there. to so fighting. a at prior to want that's So that to opportunity I as up fighting positive still through for Q&A, digits going to mentioned in keep comments be was my going to know We we're operating long-term.

Bill Demchak

PNC Do be you of on it's, down to what business them opportunity us new that the what causing the efficiency. it legacy is on my set kind top of of it's better. organization level to Yeah, a we less to, layered is is. target event, That's the And for it's and a We drive, then we're organization a efficient to out simple. said. follow

Mike Mayo

Okay.

Bill Demchak

do look Yeah. to modern to automated we way on would on platform and mean, call centers and like terms The we're the everything just the from of so way XX% where along deploy about the forth. be technology, to testing what we and develop, across so we I issue would of in way a think data I

pretty we're So along. far

to new We're and And and effectively technology about fintechs we're the stuff. that technology facing much with road more going prepared that. of is all ecosystem of to ability happens payments in client the hard where I are think down that. invest into for compete going what and the

is the but technology allow think have behind to that to where play started. space, game And I be. getting that's the that is fight in us to just core us We going

Rob Reilly

start is while. explaining a And we'll to to be going for technology metaphor around going extend games the the into

Mike Mayo

the, others? And is you're, you a do where number mean, been talking eight seven that, modern bank think, appreciate but years doing average a think I in about and like do more that you've platform, you this or transformation building where I than again, of the after because XX%

Rob Reilly

else's I Yeah. I to might informed think look, don't PNCs are. to know. If where ideal re-engineered be I out spires are and an our I may about I plus people applications It's, that other that, hard that. different compared about Other just to, people than through state what with somebody doing. figure care state plug some or be API. certain to don't may it's play to, need kind we see ideal be view. still not us to actually have of

So own you we're, we're game. playing our

there. is in of cost, Our not of offer right on technology of advantage, to, our to terms as but in able clients to be we're use goal obviously just an what can and terms also to to speed we way as and market well creativity

Operator

Thank ISI. line you sir. a now Evercore question. Carey with Please for go ahead, your And have we question from the of John Penn

John Penn Carey

what are demand give starting And can on a and on you beginning segments? Good seeing borrower or draw Thanks. a areas Morning. down? some aware CapEx strength if more of loan commercial see to you any line are you particularly activity color side, the little what see are you in to influence Want signs if

Rob Reilly

of our there that that in demand. in to to little be first quarter rates utilization started color asset seeing leading indicator business John, growth tends loan were Hey, of quarter a Real encouraging of, give because green is not I generally up book. credit can see speaking bit we is over we a growth Rob The and much a to as it's are you where continued Yeah. the quarter, shoots little that there. bit though, base

utilization in expect So getting that's, that's has general growth largely more where which we've seen the up. growth. middle of would be to coming show terms to where book But we the, would to the strong see yet on the margin, market loan across

Bill Demchak

and inside facilities the of mean, of we're that. where is a The a extending at for clients been actually beyond we're we've they're pace drawing credit good all just of bunch the under I winning facility. a not that is news years. lot problem

grow way, to TM loan picked in share, for, that other see we're, that we're activities the for, again. client back by good comes getting growth place a when we're, fee the continue and we we're demand through on So and we and up

Rob Reilly

the So in definitely quarter. we advanced first

John Penn Carey

the front curious And is then way? I Order are you your deal take markets, change that? a Thanks. critical any more think digesting Does that still just bit how sense mergers. could everything, are like about other and at mass on think a you how you Executive just on and talk see around make And Pres. geographically wanted and you BBVA footprint there Biden's they would your to the markets as deals? deal you bank a to southeast more particularly give think other little that that you you the what look M&A I then look Bill but about am if implying scrutiny about at separately

Bill Demchak

the may larger you You the same us the that am asked when issue, we'll It you of do. you us assume through would to or stuff for of to rules on value additional mean small that bank process seen more environment order. we expert clients. product look actually it's very with time that based capability likely Biden's existing mean geographies not banks, more I'm may to add-on on filling it, did I acquisitions amongst safe will mean than weighs than just area coming second and scrutiny to all feds of not I decisions give look it have practical an the BBVA should may going noise what that continue shareholder country so matter that would it is on you’ve to and or but not that a today's first be be think may -- deal creation the we on to geography. mergers that do competition would looking for at I The a make deal much you say approving think change and not the in on would give about executive change in the political approval out get us. at President order

Operator

go a line sir. Please Sandler. Scott have Siefers now Piper of We from the with ahead question

Scott Siefers

on curious the parts of how the would just margin from cash things of hear net and a I got in premium on the lots as letting shifting you’ve and Rob can full rate BBVA Just value thoughts well. interest fair some then to between securities back moves here? the guidance moving the based your amortization the quarter but be

appreciated. would So be any thoughts there

Rob Reilly

a the we've said not We we by in I we There had necessarily bottom. and I will NIM. first think still there call in that higher lot, seen but drop the quarter, drift the We're Scott. in fact think NIM lot a do holding

Scott Siefers

XXX-ish reserve. even that think just And a I around to good you pre-adjustments down I with gear were for COVID guys the in on BBVA but that you'll CECL, Is the made assume toward the then number reserves think were now mix?

Rob Reilly

going if our day we're do little not was one BBVA one then to of on some XXX, that the was XXX standalone and Well you and you'll that day higher a average. math be find bit

we as So consider you question times that somewhere neighborhood. to that would said those back normal to and if in normal be clearly answer

Scott Siefers

thought. appreciate the I Okay. Perfect. All

Operator

a have with Gerard question now you. RBC. instructions] [Operator ahead Cassidy from go We the line Thank Please sir. of

Gerard Cassidy

you you with it can given long smoothly? XX based with the running delivered you the but share to seamless with RBC deal deals? you us have those different you out, the us that out? they're fully years Can that ago confidence you it on has really very think gets you and deals three is experience Is two prior you years National when Bill, deal. guys four guys the become obviously does think City the can't than everything where deal, How years integrated upon BBVA this experiences and tell back when BBVA share that granted

Rob Reilly

what years, we newer of actually lot the the expect in been it'll There's product the to, in I playbook. end penetration RBC for that into Today that We've it a applications that a delivery, secondly, stuff, the of the will have done just structure, of we could had we sell legacy newer book kind a be rates in to that immediately. and BBVA a better at in fee markets. cross of so while. we basic PNC business question. happens this do embedded And so around by all I client that year. the basically service And some Right, branch, be then reasonable took becomes, guess, the get we grow question faster. is first, real Rob, to what found penetration mean are in that, of somewhere markets because those the a how three markets. growth

probably the the that teams ago, So to we I, than a think so I I fast. I generally too. is receptivity XX have helps and built I'd little it a brand And today. calling we'd more They're the PNC little years today was think would expect be that that, yeah,

Gerard Cassidy

or repurchases? you and going I you on want restriction you tests addressed it's limits but said like apologize but good to quarters, in the calibrate your any on if how have the comments, this Robert, CCAR share now, you how the four I you be do repurchase old to no on and many there's Very gigabytes, think thought guys program? guys timing I then you any had know, over given already

Rob Reilly

what it ideally like Well, it past. some then done obviously. will together, That's And piece the discretionary variable that we'll we'll, chart, we do. we've some and we're that, so continue That's put on discretionary going we of in to will program. always to do the top the opportunistically autopilot do be what piece have

we'll there's So more of take and flexibility advantage some there obviously that.

Operator

comes next you. with from question Go And the line Terry Please Thank question. McEvoy Inc. proceed of from your Stephens ahead.

Terry McEvoy

morning. Good Thanks.

if million color the know And consumer strength I Last here, basis. and fees. you what increased just the discuss more business a could activity, there? you any could provide was quarter questions wondering up said I on was if it standalone two $XXX wonder Just in release, services

Rob Reilly

really up was it. you team there more a purchases activity a more our but what want, color economy of than gone And us is was spends. saw It debit activity Yeah. telling particular Yeah, debit card as comes showed Hey this we the set lot was is in Terry, there. consumer Maybe spend. just acceleration strength you'd strong. card that, of big spend And that away. saw component most we is that lot of where debit card the did, on micro is as this had of was we Rob. quarter expect, Inside of is that track. What a back they or

part to purchases of of the, morning work again. coffee the now cups and the, So of the way on are on part volume

Terry McEvoy

follow-up rate revenue and and run pipelines just rate run Perfect there's corporate million then the is service a, talk there now, the in about that is plus today? a fees. quarterly Maybe the $XXX you could quarterly

Rob Reilly

got little terms say look it to the the a so of Williams, in in activity, color, months showing BBVA, corporate of just the said -- now, are put obviously with take corporate twice which of the we a fees. Also, a quarter. second of three would elevated Harris quarter I but because form increased at you volume combined Well, as him in we and full earlier, first had

So you account, take rate but mass you’re got to place. that the in right into run

Operator

a Thank you. Bill Please Research. now question of And follow-up we line from Wolfe the have Carcachewith proceed.

Bill Carcache

there. opportunity follow-up. the you see a that quick the I for transfer Thanks money one the on quick, had and business just

have cheaply. fall you help and cost over money in just transfer about helpful. disintermediation leverage maybe to growth expressed that'd continues money that risk to you speak the Some technology outlook how guys? risk investors the disintermediation that legacy business as in transferring concerns that speak, and for And technology if competitors be of business opportunities for and business, concern thinking opportunity to consumers a BBVA's you could transfer general, and that space, money you're to the leverage discuss more guys Is have the may that in

Rob Reilly

sure think I we the disintermediated and have The Latin whole thing frankly have that scale. is are the It do it. which make compliance distribution to services building same what that through business other be you the more networks, transfer success we and Europe people able America is receiving to doing and you that on was have build have product; and to it including is product. to key

competitive a it's have So product. I'm the space. glad we

going banks. the think is actual table to I be for stakes product

hadn't question, Our original think built to bring disintermediation cases ability we're becomes going things it, we're BBVA was to to built grow thought before. of scale of stakes table other kind just a it core we happened of products through your on that This corporate banking through disbursements potential But our platform. have that and it right? integrating that into I the started that different outside and use one, now system.

will so think pretty uses So, evolves how I and we're time And that excited by who tell it. product it.

Bill Demchak

it's of in under, large, upside the thank isn't And the financial anything so you. more impact

Operator

questions. no further There are you. Thank

Rob Reilly

quarter. Thanks very everybody. right. good. third you. see of the at we'll -- All Well, end we'll the And Thank

Operator

concludes today's you. Thank This call. conference

now may disconnect. You