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WFC Wells Fargo & Co.

Participants
John Campbell Director of Investor Relations
Charles Scharf Chief Executive Officer
Mike Santomassimo Chief Financial Officer
John McDonald Autonomous Research
Ken Usdin Jefferies
Betsy Graseck Morgan Stanley
Erika Najarian UBS
Matt O'Connor Deutsche Bank
Scott Siefers Piper Sandler
John Pancari Evercore ISI
David Long Raymond James
Steven Chubak Wolfe Research
Gerard Cassidy RBC Capital Markets
Call transcript
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Operator

Please note that today's call is being recorded. I would now like to turn the call over to John Campbell, Director of Investor Relations. Sir, you may begin the conference.

John Campbell

Thank you, Brad. Good morning, everyone. our CFO, where fourth Mike and your joining Scharf; CEO, quarter for answer our and Santomassimo, questions. you call our today Charlie results Thank will discuss recorded. being is call This

to materially are may Charlie. those turn containing we also SEC caution remind that earnings Before materials filings our today's call like to including measures financial available I to can deck release, also make you to and from including during in uncertainties. non-GAAP including and the today Information in I website. will call materials. at now on started, referenced, would our filed any materials, GAAP SEC you earnings our about website measures, forward-looking X-K expectations fourth risks the are get found statements filings and earnings that financial available to be subject that results detailed quarter presentation of are we cause may the our supplement our that reconciliation to like wellsfargo.com. our on I'd differ the Factors measures Form a over actual

Charles Scharf

questions. update XXXX morning, the very about expectations XXXX review to John, and comments of make operating results I'll some our your turn our on before Thanks our some for over much, environment brief I'll everyone. to Mike priorities. good and we and then you call results, the fourth take quarter

strong sales on gain equity XXXX our initiatives. highlights. lower a in from increased reflecting with our and earned year and asset some share corporate from progress of XXXX. management securities from benefited as $X.XX businesses. we Revenue losses me Let trust student X% common and efficiency operating lending, from X% billion declined gains start We $XX.X or Expenses per ago,

card, significantly the management. growth wealth and revenue economy quality including improved our customers estate, commercial business and consumer small levels broad-based home as of banking, Credit have and and businesses, our investment lending, had auto, high across credit real also We banking improved liquidity.

basis XX declined in half our basis $X.X the with allowance increase in in Our and points loan credit or the losses first billion. XXXX, year Deposits to in offset billion XX declines points grew X%, XXXX the by loans from of by a ratio charge-off and increased $XX half. X% declined second for X%

second increasing We also year stock stock, including dividend returned after $XX.X the common a to to the $X.XX the quarter. repurchased we the of per shareholders, our third per from amount of capital framework. share in our billion significant half of return $X.XX the to share And in predominantly common SCB

or showed We results or billion or down We to we momentum XX% ago, the in third the quarter X% categories higher fourth third declined balances periods. the to per sales spend have with cost work. Our our such but were continued results. every pandemic, though Weekly spending dining. median generated today more risk transaction, were with All up grew see the earned leverage continues and be also also a levels to we X% up driven ago, momentum. both quarter as quarter over by travel, share. also strong, continued during to strong our control the XX% Thanksgiving. in are fourth from declining and positively quarter. continue XXXX. the but year customers higher our debit from than the importantly, as the prioritize the the to three Most strong And Holiday Consumers increased and higher are quarter both than to liquidity this fuel, post the Consumer the quarter up and prior from impact XXXX and pre-pandemic do economy increases the $X.X and credit continued weeks $XX.X was from transactions card positive in spending in fourth a This fourth up categories operating of loans year entertainment by billion $X.XX Expenses week from to XXXX. XX% and X% by third broad-based per XXXX deposits Thanksgiving quarter. XX% travel. spend quarter from billion $XX.X leading continued of and common we XX% fourth and up higher inflationary up increase to was reflecting card compared largest spending and compared spend that impacts XX%

in XX% up card estate, loan And commercial in our market we growth businesses, We and in are in across and softening of while third weeks, is first strong real week And card watching banking the versus the spending the there some from from saw banking spending. credit XX% businesses. overall week strong entertainment January consumer recent travel XXXX. on commercial the up asset-based and middle restaurant, with and Omicron impact remained debit quarter our same lending, markets including

So a spend I've the of at continue over you I'd I thoughts feel energized in to our we've few giving and on the thought Overall, progress. great now, us. and accomplished been opportunities feel I about for two what my little front years minutes Company a about

our new culture, the and and spoken new strategic reputational are broader about and I to risk on think operating we've this several members progress since job just of their of remind committee made, and to talent, I changes control, and along the regulatory arrived. are talent dimensions: work XX you, ESG XX but I've to and substantial two issues. leadership financial

of the one prioritization the effective building Company. risk change in their those the level and Additionally, We implementation hired control significant operating senior-most the we the a well roles dramatic significant process a the priorities And our our outside And changed how most two of broadly. the how of leadership. work ago the responsibility framework an Company. view it, run we this from and are them how the is change across our and Company, This and with committee, who to Company. company, to proportion were prioritize new of a culture years part over and began half of we our was we've below meaning people are at

different Our approach arrived. and progress are entirely were than they when our I

on own our laser-focused of expectations regulators. meeting those and are our We

We in we for every regulatory place owners clear have and deliverable clear plans have.

have was level. reporting is arrived. operating detailed from week members on of how We single the reporting we're those detailed on review before progressing this committee We involvement different I committee the very what happening every operating plans. at The

continuing The third outstanding long taken close issues the internal making confident that highlights and regulator's consent committed would order, of case enable that comment track be remaining place reporting. multiple in we and to talent steps it is to OCC way, to on likely it consent the and in to based doesn't it's order ability makes the to in ago. have a their first, in requirements. gaps continues in doesn't years holistic It opportunities also But invest drive our two believe way earnings the to I to we will power past fact improved now next the us target the the quality see bring just return change said Having perfect. we market setbacks It to I progress, XXXX remaining in to with to assumptions but processes their also our the all that continue years. stronger we're progress in to aggressive now quarter. over more to and for we've to in work a the achieve are several beginning you believe Our discussed: that along that, been have at like and we've significant have we're we're point sustainable remain this to the and that identify ability recent now from to comply the issues that number we did We're discussed the time, of subject have the begun significant the the Company making a the that growth that things businesses. the then have we're and fact done. I financial our made that are that addressing our has ROTCE, to We're continue We're have in increasing that exciting. by same to the build organic OCC complex. to of have the we And XX% look certainly purview the to mean all XX%. goals get capabilities. of we orders time differentiated takes what of

our control seeing one continue achieve an we're efficiencies will and and believe this, businesses. to the after our the net basis. in achieve of reductions that We To aggressively driving we're XX% in on we XXXX investments expense significant focused on annualized during build-out quarters

the that We to capital framework. SCB to are we've shareholders aggressively excess returning now returned

growing continue higher We well, rates, devoting seeing and we're certain manage loan building interest while credit to to our balances doing significant higher benefits franchise. this We're and fees businesses. resources early in from

our digital We mobile out than platform new small mobile is our set XX% simpler in capabilities, In existing feel for experience a a modern lower begin adoption X% accomplish needs. beginning rolling changing. to the the look X.X a fourth significantly this quarter, help competitive customers user Teller clients. announced a transactions is more more with and experience This customers have will It providing banking up drive remained that our quarter, fallen is easily and has our logged device, their levels. behind using Even that digital This times consumer set -- in banking to our higher billion to quarter. pre-pandemic capabilities rebuilt we and business in for customers year-over-year. from than fourth customers. necessary

virtual their task be recommendations Fargo them, able provide help the their also customers manage and We answers to to complete banking personalized to better insights year, get for will and this everyday Fargo be that assistant, to the also later an will adding to all-new we'll Fargo app. questions, finances. Customers announced ask

We public will this also introducing phase first be early the of of our redesign year. website the

we're active more wholesale on side. the In beginning become addition, to

must card around key succeed remain with Active we Reflect, supporting which approaching differently. marketplace, a as our product which were those We're transactions as we the the capabilities vehicle. digital in including, for believe the application years important reduce the not credit These also will and For Two foreign payments simplifying settlement credit blockchain-based ago, in competitive advertising, our HSBC example, as efforts cards customers cards and provider. in credit announced very of payments. activation, exchange and be including as both associated will investing optimize and XXXX, work a products financial we're driven also payment solution, enrollment statements here digital we cash-backed We rewards and a doing costs. experience, through to services Cash, risks that collaborating the believe paperless underwriting. we additional to our and settlement non-card payments products core and alerts. best In products enhancing on-time two an which launched were have We is improved believe and necessary. We increase

prelaunch twice were we're and competing approximately we many as of as opening these are products, credit. We accounts on importantly, not

the better quality the the money. than broadly fact, from to capabilities, booking were what moving we reducing our accounts card, in be and applications and to our of digital and limits In the platform, invest Away friction continues payments for across enhancing we're historically. broader beginning increasing booking

to transactions XX% continued from momentum Zelle evidence, ago. a with Zelle year up As accelerate

consider to be is approach lieu us taking that in that not broader successful. shareholders. very set and in a We in of actions. decisions different a This also we are must stakeholders of for We our believe

believe shareholders we time. will enhance over to returns fact, it In our

support beginning was working technical fulfilled recovering loans since XXXX. significant our the $XXX the taken businesses the fund to million fees small offer administering assist assistance recently donating of the made have and we commitment businesses in fund long-term from not-for-profits in and We by programs. the with to Paycheck Open pandemic gross to for roughly processing small pandemic, by Business The Program capital, Protection created from efforts

group and by Alliance, environmental year, Banking zero of emissions. zero made joined our in XXXX. gas we in achieve commitments emissions, urgent financing industry-led we issues leadership And emissions announced the achieving Additionally, the designed time. support greenhouse aligning quarter, last one greenhouse Climate financing goal most of to and the banks Net net to attributable climate In net foster to including collaboration gas an with change is Zero significant their fourth XXXX. the of we our goal social

one it first announce of will tax wind, sectors past $XX.X the finance We wind in the is investments cumulative expect tax investments the year. to emission made over Company. and it These be years. operational, oil the Last and year, commitment. in and provided our targets Once and later battery nearly for our all equity XX have power cell first we largest of U.S. in transactions. this and capacity utility projects in solar-plus-battery-storage We fuel gas XX% scale solar XXX equity solar surpassed billion solar the

We rental in in continue investors housing top affordable to affordable be multifamily one an as of well the the U.S. for active lender as developments. housing

homeownership. Additionally, we're affordable expanding to committed

to payment pay For supported hourly providing quarter, fourth committed $XX to we benefits of through as We've invest to and in effective than and employees example, comprehensive we we're end the sorry, the competitive -- range to assistance announced payment million in NeighborhoodLIFT December, XXX a this income our down down month. I'm Houston $X U.S. low more commitment our program moderate in of help $XX of also with home pay to pay, increasing at and the home that levels residents minimum part assistance.

and that XXXX, this outstanding announced Rewind, we years. fees course This in builds which Just changes over short-term needs, several for no-overdraft needs. are received in when place, customers September an access two access we over we've providing to we over accounts. existing which these financial replaced already a on grace checking changes was and perspective, Overdraft and down last include launched financial fees by overdraft XX-hour customer short-term features overdraw early the balance in changes elimination day. deposit, every is alerts automatically million will we expanded of to new the deposit for our fee, of the customers to cover in all that The overdraft for their morning, fees avoid overdraft we cash period announced roll of meet more Clear customers deposit cover overdraft these help X.X enrolled efforts fund to grace incurring week, before out that to credit elimination new made customers on that introduced avoid a rewinds customers covering other now alerts direct have overdraft up customer our days the XX-hour funds the significantly to scheduled fees, personal account consumer were the crisis. including next product transfer building by their the our account help before direct a XXXX Access XXXX, fees protection, Putting have sending than Balance by which Banking, by million of period. in X.X since nonsufficient

for We overdraft that do. is those not have alternatives marketplace. and customers competitive a This that do both want to

providing look me review let We make now our to few the goal a our value pricing continue and we of as with customer. And forward. capabilities comments to

Modest the appreciation sustainable moment, on left achieve growth continued net consumer remains income to should other and Mike restock. commented to We're continue we substantial our discussed believe the ability a in to Inventories a disrupted. balance of progress lean year. continue. make expenses combination see businesses to economic debt have that feel In past, risk financial steepening for in returns with has strong beginning a XXXX. factors investments entering have a sheet they in the strong This we'll as control XXXX. and posture ability further the we've growth on even continued a the is at XXXX. once on thoughts chains rates increase the see asset our from But initiatives; to target result small remained Company asset expect can point continue the this goal, of sheets production subject loan achieved While execution ongoing which continued interest assumptions moderate will or variants to to framework; asset and our loans to and supply variant and high Corporate grow interest unusually including impact a further continued remain returns plan curve; industrial run conditions. growth-related we is we've made that some discuss strong. adapt about It's help strong The to this expect we prospects expected as rate we're in Consumers' economic growth, we growth this to year, pandemic on condition in improve risk our adopted incremental businesses; same to ever-changing I efficiency in trends there how drive a the earlier been returns. in and we is at the lifted. demonstrated changes household gains a XX% on growth note the us balance continue And through this America potentially or provide good higher level, modest continued ROTCE, on have under Omicron and strong I regulatory to cap currently excellent increase cap. condition, to once important positioned a spending. the balances to to later basis defensive deposit our of

We put to to way. satisfy exposures with also our to have we to along work multiyear our remain related practices requirements our behind cognizant And effort that we setbacks a us. the historical likely continue continue still regulatory

all to call over that now in through work I year on their resiliency look about be to better. will hard Mike. conclude progress I embrace customers turn our made we aggressive we employees forward, appreciate our in by our to remain responsibility I our year. serve future. thanking to As we Wells continue another I in ahead. look communities, and we making optimistic challenging continue and forward and our driving to improvement and want the while will to progress performance, the our their I incredibly customers Fargo who accomplish

Mike Santomassimo

Great. last share everybody. Thanks, $X.X to was with on billion good or -- how we Charlie Charlie, start our per employees our X, income Slide helped I'm and so for and year financial quarter common on communities and $X.XX the summarized going morning, results quarter X Slides X. customers, Net fourth share.

million fourth quarter Corporate There Fargo these Our adjustments our gains sales Wells a $XXX in strong; $XXX provisions; million Asset to future an due related as Management. railcars credit Trust included earn-out to due credit gain results changes Services be be leased continue in to and sales the and for cars. a of demand for net on these post-closing allowance business losses $XXX and certain decrease could to trends million of impairment

also We after non-controlling and $X.X gains, third businesses. equity returns billion private consecutive had these billion of $X.X capital or the from equity interest our businesses, strong affiliated quarter of primarily in venture

Our effective discrete was to XX%, in related business divestitures. fourth quarter approximately income the impacts rate tax including the

ratio the the fourth to primarily for in share for repurchases increase stock reflecting billion annual CETX the an in predominantly in quarter. loan in fourth by the repurchased our assets declined Our quarter, $X.X issuances, plans. matching from new XX.X% We of growth partially billion quarter, common of contribution $X XXX(k) risk-weighted and offset

will minimum ratio the our X.X% in reflecting reminder, regulatory a quarter a capital be for surcharge. As XXXX, CETX the of G-SIB lower first

Quality Slide Turning on Credit to X.

real during performance exiting net mortgage real delinquent by to that collateral $XX continued or the X% XXXX an is net Despite fully assets in levels still primarily nonaccruals, Our of and are has the million from commercial residential there strong estate portfolio COVID-related in forbearance of they million back the select third XX $XXX of points. basis ratio well. to until million third Consumer from declined forbearance pre-pandemic a have rebounded fourth lows and above that Commercial is residential of quarter, quarter. time. as million have declining charge basis valuations customers in credit estate of hotel After have certain to exiting and consecutive $XXX has our net risk points to the nonaccrual consumer the pandemic, quarter. million increased created mortgage was the $XXX off pandemic, Overall, increase activity continued investment for with Commercial to $XXX accommodation for X off quarters, property early credit in third remain all reported from strong driven perform programs. homes office perform charge-off challenges resulting commercial performance to the reserves increased from we're legacy period were for loan increasing segments. expectations. been Loans quarters and quarter cash certain increase charge-offs change levels. autos charge-offs loans. Consumer higher types, also values assets in practice the with their the retail Nonperforming quarter. the remained first across with and exited in four fourth although be pre-pandemic aligned the and modified upon related loans four by performance nonperforming a some

from economic releases. Our we at commercial our and growth Slide quarter If continued We commercial actions continued of with grew growth when loans the X% third or from declines Average under broad-based the growth the third reflecting corporate banking consumer year in of or late from reserve with performance, asset quarter in credit highlight quarter with strong in business allowance $XX.X targeted a the the to ago remain. corporate, segment in discussing businesses fourth commercial cap. have results. specific X% uncertainties strong partially billion consumer portfolios. increased loans by the $XX.X X% would across growth most grew recovery deposits. and consumer end geographies the the deposits billion expect highlight level our Average both banking, offset and and investment over I'll portfolios. recovery our treasury, manage ongoing to period-end growth the and loans we X, reflected economic and and the that continues, in quarter had On still additional

and down up quarter full down originally to including Income being X. X% million we million for for and on the was expectation ago, Fourth income $XX reported provided higher EPBOs. be quarter The from net or from XXXX balances, Slide securitization higher was we A X% $XXX purchased year. loans pools Turning net in from quarter our interest X% third a or income the to ago X% flat loan ended year increase annualized to XXXX from or year level, Net interest Interest fourth down grew the third interest quarter. the income from by driven

benefited favorable We with billion assets substantially we from fourth $XX.X trading income In and total a of by these mix. had funding of had higher from also $XX.X balances and we EPBOs, we end the loans, quarter, these at of expect decline associated year. million the down interest a of $XXX year-end, highlighted last this quarter, to

I waterfall We from of the review interest interest year-end. to The points net from in at also income Paycheck the of $X.X had higher margin are headwind these decline and due PPP interest or Protection fourth Program the was $XXX net XXXX income X on which income million the will EPBOs. points increased to running billion that quarter We've later interest basis outstanding X portfolios in quarter from from off loans, our reflected call. third basis loans

expense Now Slide decrease turning expense on costs, expectations we of Expenses reductions I Noninterest initiatives made our and provide in progress efficiency on before specific personnel on we updating the later in initiatives, you expense. declined from progress year a XXXX X. made consultant The will spend reflected ago. the on our in for XXXX. XX% to examples call including our occupancy efficiency

from Management charges one $XXX and quarter operating ago. approximately X. included restructuring fourth Trust losses our a lower Fargo prior in month or quarter had expenses Corporate to and million Fourth with of Asset sales Wells compared business Services November their year on We operating the also expenses

activity, fee card fees. offset enhancements revenue fees our starting Consumer growth our were Banking that be quarter the higher benefit customers the the Charlie will highlighted The turning of fees in expiration consumer we're an $XXX transfer largely transactions increase from year a that with as NSF estimated with deposit-related annually. deposit segments due as as changes well spreads. Slide COVID-related Also, strong year place also X% elimination higher Small included well fees, XX. to expect debit in and and reflected some XXXX various was the activity ago, waivers. to of compared be Business on as Banking protection by ago approximately that XXXX fee-related lending they or nonsufficient of a making other be Now partially and lower Consumer offset quarter primarily the levels from fees overdraft including to business to including by help of increased higher Fourth in reduced, avoid fund is impact due million we XXXX. may to fees waivers as overdraft fourth

gain offset we higher In Credit on billion. which decline rate active terms adapts put as balances in we volumes. back on a revenue loan by due pressure December, Auto latter the and new respond. to XX-hour features XXXX, higher with margins product, a short-term expect new to income, costs, grace by ago, up banking lower $X.X offers origination and Even revenue driven the sale a lower point-of-sale of recent volume, new including have will lending out we of overdrafts to a year, started rolled to revenue part to see loan observe volume. ago, the promotional be up, up year higher the in industry from margins lower declined Card. application on increased and Cash to X% average the year for from ago XX% partially balances driven card drop from rewards by including our X% the primarily volume mortgage originations period and how in will year a customers a Home in was before

on business Slide XX. some drivers to Turning key

X% declined from originations quarter. mortgage Our the third

the grown XXXX. fourth quarter of reflecting in consecutive nonconforming to the as the quarter refinance We well our We seven the originations and expect seasonal late to improvements as quarter the in activity in increased nonconforming the months, our capabilities typical our our and originations slowdown continue of in have lower decline for market. purchase first portfolio reintroduction due cash-out first to refinancing

continued inventories to vehicle to car constrain Auto. industry sales. Limited Turning new

originations had of in we from a we capabilities. the consecutive from volume our continue make XX% year Originations quarter used enhancements up record our from to the majority of ago, originations with also benefited coming third our However, with cars.

Importantly, we are vehicle maintaining so. the the our underwriting prices to year standards over in and about be continue increase or last cautious

Turning the from all relatively ago Credit be and a volume was continued and third stable increases point year a to were up ago from XX% third to purchase Card. with quarter. Transactions strong, year from card nearly of up Debit sale XX% the across quarter XX% categories. from

from to grew rates balances strong X% ago purchase year of remain volume payment products. launch new and a elevated, the While due

New from driven doubled we're of ago, our we've more by by accounts accounts card new card, the pleased quality and active cash a attracting. been credit year than the

Commercial higher Slide Banking a XX. on ago. by included deposit from year lower Market interest Turning to balances X% the impact Results offset and higher of increased fees, investment modestly Middle results revenue Banking rates. banking partially

in have balances. Asset-based year investments, year the renewable expense. lower increase gains declined lending securities higher and initiatives lower the third ago, with balances revenue Loan by to by lower XX% personnel months leasing from for from from as ago, revenue a quarter loan to driven started now from by grown primarily accelerating late driven four due Noninterest a energy and and offset X% efficiency expense and increased consecutive well growth lease in higher consulting partially expense net as equity December.

in credit seasonal and revolver prices adhering uptick As increases our in driven higher the as some well with Market wins Middle from lending a new modest as in leasing are appetite. the by increased by and larger clients, from utilization borrowing. Increases Banking levels. to was we strong other risk growth same asset-based Growth in levels and inventory client were driven portfolios,

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associated remain expenses revenue We $XXX expect offsetting with neutral. in of with million approximately its these P&L XXXX, so

expenses businesses million down to in over related these manage remain $XXX corporate expect which approximately overhead of to expect XXXX, to also we We time.

our with XXXX, Net now Income Turning Interest for starting expectations to on XX. Slide

As year. income net net to predict for of impact let the income drivers interest have XXXX. the weeks loan highlight that of the year early demonstrated, last variables key environment, demand and our rate But for couple full me the it's challenging this the interest other in

XXXX, in We place on capital assuming left to remain right throughout the waterfall. are asset the moving

a the have discussed we year we and have previously, loans. runoff EPBO As this headwind of PPP from

current in for the that This approximately interest this billion balances to mid-single from balance X% would to quarter to than we fourth XXXX XXXX to digits average sheet the quarter $XX.X our of is XXXX, loans along fourth result changes, generated outlook net increase low mix XXXX. with of net income from the However, other offset is more headwind. expected grow in

and rates to approximately May. hikes The rate year Moving this repricing. XXX in forward beginning includes point basis curve recent

XXXX Assuming hard certainty. interest over X%, with has approximately versus forecast income these has interest very additional growth to out, grow curve in to the forward were said, play changed an X% net up X.X lot the a net it's months, XXXX. in to the any last income That implied to resulting potential so

by an showed net of $X.X interest months. demand disclosure from next factors, is interest of income third way XX-Q instantaneous interest depend sensitivity would basis loan and the estimated shape over of quarter we that the net rates curve, XXXX we yield asset in variety to of absolute amount It including approximately XX income view on XX the the redeployment. increase filing. earn our Ultimately, points in rates, provided the in will increase the level Another of our short-term the a billion impact cash

efficiency made identify on we on opportunities. new continue We to Expenses Now our and year initiatives turning Slide to progress XX. last

grown that realized approximately of billion across and portfolio are includes Our the has initiatives from to and billion, $X identified to we work potential Company. gross $XX continuing saves

We next across we'll continue identified invest expect businesses. to three over two years, our and our initiatives on to to execute the remaining

also reducing made non-engineering progress since control. excluding complete expenses with XXX year but customers We a a our our completed examples progress branches headcount accelerated businesses, to Company initiatives we've XX% risk of We control the Within XX% of in low our let approximately to how a We've few our add continuation increased organization, control management efficiency this decrease resources we made across Importantly, spending adoption last across resources XXXX, are and We've managers work, XX%, eliminated we as to me year. branch and address with optimized necessary our we similar work. last to customers highlight layers consolidations are a down framework. important branches. declined the approximately driven the been reduced and with branch needed in our bank using continue or XXXX. from our of the technology last businesses. we'll X% year, few the by by divested the excluding approximately roles And ago, from agile years

occupancy year, we savings year to these compared real down reducing of by X% X% estate expect This from office portfolio incremental estate. to and with an In X% number in branches, including addition our approximately a the was real reduced reduction realize we ago. expense to initiatives, continue also office

banking, in improvements in we're consumer making lending, Additionally, technology drive consumer commercial investments banking. should the operations,

should service efforts more faster expenses but decisions. with these fraud underwriting customer the enhanced also reduce self-service capabilities only detection, not improve and Importantly, experience

Now on turning Expense XX. Outlook XXXX Slide our to

of Following related This we in and business reported approximately $XX.X expenses in with higher our money XXXX had the waterfall guidance, action left restructuring noninterest penalty of except the line the in from to most charges OCC to enforcement with and We civil associated billion recent largely operating losses. XXXX. was expense for September. exits in right, $XXX million

We Asset also not that in of and in expenses Services Management sold will business, which Fargo from XXXX. XXXX approximately were had $X Wells billion our and Trust the Corporate continue

believe of we a is So the discussion the XXXX $XX.X for expenses starting billion. good point

origination and markets grow and expected increases Investment revenue-related and by expenses. Banking, partially good lending, the a volumes. in Higher offset Corporate declines We compensation increase Wealth will year a any are expect This includes this and offset by increase associated assuming $XXX in revenue equity expected more approximately Investment revenue-related than to Management is modest reflecting expenses in home million. lower thing, in

to of Through increases, wage and the wage increase efficiency beyond above minimum $XXX and expect including pay expenses, approximately inflationary and million merit by in initiatives, higher expect changes. highlighted Charlie of increases benefits-related also XXXX driven well level realize expense billion We primarily normal compensation other that corporate by and our we $X.X the incremental of and partially from offset investment to personnel expected risk investments approximately related increased approximately be reductions on is commercial XXXX. management. of higher banking billion technology gross banking, $X.X and expenses in This spending to as in as reduction personnel

to versus the million expected in including also associated XXXX, higher in XXXX pandemic. our in approximately had and be higher expect for lower were which due approximately million to reduction travel FDIC spending expenses, are entertainment XXXX approximately approximately XXXX, the billion assumptions are in assessments, of $XX.X Accordingly, other excluding the $XXX operating $XXX action. areas, expenses amount $XX.X full $XXX insurance $X.X the is significantly increased which net year We a billion. in million enforcement we OCC of the billion, Embedded with losses our

made and in Company. but we have more efficient the outstanding we've initiatives, significant as significantly in we get progress have our across substantial year we've issues, legacy executing opportunity and to the While still on previously disclosed, levels through efficiency exceed could working still significant XXXX. related issues, we expenses We made regulatory last had progress litigation

in expense mix. We business focused now process, This remains while with peers your reductions the ratio line in We'll based questions. a achieving our with our businesses. multiyear of net are efficiency take appropriately our an ultimate on on investing achieving goal and

Operator

[Operator McDonald will John your come Sir, from Research. open. line Instructions] Our question is the day of of Autonomous first

John McDonald

Obviously, sense cap. could to data of HX Mike, want to have I I you you place, under better if growth the make you that getting party much just us in the like loans do if is up. asset sure you're the while picking give how to guys is industry. was and grow staying the loan that asset some cap capacity wondering It grow remains can for invited feels loans?

Mike Santomassimo

question. thanks for Yes. John, the

and really it's the know, asked, I is the asset implicit on deposit in what for you as cap constraint you the just us think on side. So but

And actively to continuing that's make action our for part room so particularly to that. do and -- we're where taking we to we're the clients got the retail need sure we've

the continue side On have with to on plenty -- side, loan our growth we of not on so clients. grow to constrained we're have loan the room we still still

John McDonald

loan in the liquidity what kind also And how And assumptions? you're some building about deployment given is and sense, outlook, NII deployment, your curve of here? could liquidity in you're growth thinking give you us where

Mike Santomassimo

Yes, sure. to Embedded fourth fourth low to a in assumed quarter mid-single-digit you -- of quarter on kind we've growth when 'XX 'XX. compare Slide XX,

modest the could use grow so the sort we're increases faster is some we kind where assumption single scenarios to the in loan into able low that the single portfolio, be be in maybe certainly that we'll than it but optimistic And of get it -- of in there. that's -- some Embedded to mid- modest I'd balance other hopefully, redeployment column, that there and there's could digit securities sort as of so portfolio on too securities stuff that, chart well. say sheet growth the and

so still think very to and the today, curve I prudent the are overall, small being, as is of in at assumptions where patient, securities in are the look some there. beginning we we're And kind a those pretty embedded portfolio. And we buy way, but

Operator

Jefferies. will The from line next Sir, Usdin of open. come Ken your question is

Ken Usdin

how do still and you little mentioned what thought us of type take But had out that? as $X.X about just how even forward cost Can line continue billion go $X.X an a have feeling sight did versus you like you you a do $X see past good you're gross as year, help initiatives. of this better for saves out ability of to far as importantly, to this that billion And billion, of this originally year, that you you commented you year? far at line bit you you have efficiency sight, that more where understand, last Mike, that?

Mike Santomassimo

what to trying important how sure operate do the on to really and so Yes. of be we're make DNA the embed place, what's going for Ken, No. that's we And I in is the billion And really this you're ultimately we XX the think we've X of or over of executed in executing. run. that. The billion portfolio long to process from us in the terms either seeing grew that initiatives

there. growth seeing I you're think that and sort so And progress of

So sort can accomplished we've more you of left the do built that of this what's math for so we've to of sort yet. what into continue identified year believe for haven't next do that got we've and what that year. far, we to And portfolio I

And so the every team continues on that to day. work

I that into And that. given got that our to the $X.X we put we confidence the really to line level think good. on do feel good sight. As We've you execute was have we'll on able last year, at able of the billion be what look forecast, team confidence we

Charles Scharf

you I'm on Let back firm me on efficiency. a side. company especially Mike a revenue of if the just that something one always to said, far go -- in strengths decade, add company a Even believer was the this. like initiatives, these I'm over efficiency never It is of more which this was

onion the set the get see, back, so to clearer. as peeling opportunities And of next is then we it the even we're efficiencies become starting that like where

next ginning this Company. across back we're that way a and of now venture very the did say, at what's up process the beginning methodical the in up we And where we so with okay, came same the

spend good what's And in pursue a the next numbers it to feel And become we in our I as for to ability seen -- think year. as us this. gives company. we're So to numbers, and continue efficient our it's, you've more really our feel to I about going overall investments just

don't I done. we're to close like So personally feel

Ken Usdin

industry a mentioned get you're Charlie, you're you that especially pressures, ask reinvesting? little is it. about that you're the too, How last not versus doing need if do the out? could to, But how side you that the continue which it's less we're just land investments what new enough, inflation of the doing did hearing question year. just confidence Got what that the this, you're but from I that And and you you amount other comfortable to all And do just on do things get number? on rolling you how right the that

Charles Scharf

it's question. a Yes, good

ask actually then and sit think good most I what money they we everyone and out do, think is do. come want around I to figure they with to on can what back spend which companies you you do what tables

I as have we management that historically these at stand moved we're who in spend money, as I much But as question the the broadly. look we slower that on technology in we're year more it also I gives since and to us areas. find we technology I was in a a I more physically But where company, some for to the as us, accomplished efficiency try I opportunity as good Van to extent a feel we, I runs feel think amount we about side Saul the think think done. spend And we've relative Beurden, brought tremendous going in. of versus opportunity investing others different can what team, think And we a because position next. we're we're still to ramping-up do stage, of do next the investing always as get is what's company. But asking think which the we're --

Operator

Betsy of from Graseck comes Stanley. Morgan question next The

Your line open. is

Betsy Graseck

had I mentioned. the overdraft was questions. that two fees One on you

filings but billion kind you overdraft regulatory impact, at the it $XXX fee like was look the the think filings run a show we of of in million $X like and said I a level that regulatory higher range. rate

So only million? to understand it I'm just -- $XXX trying be why would what

Charles Scharf

making we're we not Well, consumer. series I overdraft for We're eliminating all, think changes the a first that of of sense fees. mean, makes

doesn't but have we account account an that We have does allow an allow overdraft that overdraft.

customers it's overdraft behalf the on there us to benefits buffers we consumer-friendly giving than we're after they've think a continue a past, and it's there are willing them, got out believe pay through their And the and worked of that -- they're want but for so more it bunch number substantial we to to of was in that that. pay do

Betsy Graseck

Got it, okay.

the have but eliminated NSF comes will that different you'll be product fees in? a So

Charles Scharf

entirely. Well, the -- will NSF same no, eliminated it's be fees

we've as days would such XX cure will on advance. hours an you series you charged fee added give deposits overdraft additional we'll direct of but been for in availability a it. after give overdraft things you have two otherwise stay, Our to We'll an

but will we'll fees providing we're overdraft going it. the our product go down, So still be to be overdraft still charging and for

Betsy Graseck

Okay. All right.

similar, that's but bad because not... and NSF were thought So I my pretty overdraft

Mike Santomassimo

fees Yes, I pay into a charged you think something play don't item. in it, overdraft returned fee. then Betsy, That's overdraft have historically, you pay and into The NSF would as check when of something an fee NSF you actually come for you -- the return a like fees overdraft. that think when

Betsy Graseck

Yes, Yes. I it. got

Okay.

were you're growth loan is that on growth you? X. How any or reference and you going and too the bad. be CRE how used then rate All be does you or the C&I a to using remarks are longer clients? Is shifting was I right. And that about is And earlier starting jargon second So for a my the be could and C&I much able that's with about Jan your talking LIBOR rights using no or benefit as -- with loan thinking product prepared that John. that to CRE? question rate your in that any loan impact to the reference in

Mike Santomassimo

take obviously, of like and out business, calculate rate. based of something on or that maybe mortgage SOFR, at the in we including simple offering that the facilities point large started offering We've are there's WIM, probably we the so stopped products -- started we've ways sort LIBOR-based -- new done, as to already the a side, -- you mean, in loan in new wholesale would shift the I Well, SOFR, we've new imagine, stopped daily -- consumer X,XXX some different large those right? fourth done just And the under majority quarter. with effectively using majority

will So moves, if adjust. obviously, that SOFR

used start And wholesale think seeing to we're use the LIBOR-based doing got clients we're what side stopped on so we've to ARMs start year. it last get offering it. Complementing we've I -- and is to

on using got, of of couple using terms -- we've SOFR don't a ARMs know, the books I point thousands so of tens well. there of as at And thousands this tens in

it's think I hold. so starting to And take

Betsy Graseck

competitive like product yet thinking to for be just half capital the year. be markets first not or was I of the least this SOFR Yes, might deep against enough at

a you give advantage little in that could So originating? here

Mike Santomassimo

bit, impact I don't loan on little having see we'll surprised maybe huge but don't happening. see but that growth be that I a a

Betsy Graseck

I SOFR. the right, think was All for CLO yet because didn't bid there

Mike Santomassimo

Yes. I happening. guess I don't see that

I SOFR, some and think but being that a see big to starting CLOs like I driver. there are be don't happen

Operator

comes Najarian question next from The of Erika UBS.

Your line is open.

Erika Najarian

runoff for you presume? Mike, deposit sense you. And simulation? XXXX of my of you us deposit have repricing is similarly, your what give what first you question assumption Could NII growth kind in a or

Mike Santomassimo

you cap. asset spot given than Erika. our can different a thanks, a right, Look, Yes. No, guess, bit of like as we're in others,

every now. we're already and week deposits we're And pushing deposits constrained on so away so,

see And down, if have pushing off. stop so, runoff in deposits. this I don't a going levels to we'll start And others we of expect year deposit to much

don't for see a big be XXXX. driver And so I that going to

four, deposit years, pricing bit. quite our deposit the I base As say about the But largely we has what over cycle. that assumptions, changed betas would you similar a saw and last five three, rate last it's think to

you If of in, today. at consumer shorthand, are segments small in just look where are based as the business a deposits our XX% and banking our business we on

If or that XX%. to probably was number closer XX% go years, of back a you

the some similar we go pretty we're quarters. we're be on it overall so of as what growing And the kind the I think constrained of result the over imagine, remixing of as of And you number number to lower not the leader take a hikes. we of to first will saw. sort look But next will can to likely for our had pricing of going rate deposits actions deposits, the we've of beta as on since

Erika Najarian

clarify, in out, -- betas by some been were asset to the given has I right? just has pushed pushed CIB And deposits, if of so that been handful restrictions. driven assets cap out, cycle, remember, a given Clearly, the last that of

cycle you much and last actually So better is deposit those number this the contributed by out deposits, have whereas betas embedded of that NII experience today, in the less as a the rate-sensitive look base. included we

Mike Santomassimo

the lowers For percentage sure. And as overall the which have on of similar beta. We just our betas book, less of might the overall them CIB deposits. a be

Charles Scharf

mix. Just the

Mike Santomassimo

see. but the that we see have -- of on so deposits, just competitive a wholesale lot impact the but So we'll driven past, in will Yes, on a did environment, will mix. the than And us those it in it be particularly what by given right? smaller

Erika Najarian

is Charlie. And Understood. question last my for

favorable enter of reinvesting a identifying a identified backdrop? I cost as think you're how perspective trying you receiving what your have the bank savings yourself for this growth from revenue is more in investors what said Mike saves more to more we do a and to fund about out by change and looks as like warmly very are favorable future see we backdrop, you banks, rate investments. thinking backdrop revenue constantly And look

Charles Scharf

think think much or is don't put how I'd making I in I what rate we're don't to we it is it -- relative about way the guess the scenario NII.

think, where limiting of always the want do we're and investments to you much of around based again, to about I in our be upon small where we how have couple our which I just not there mean, just to done, the prioritize. based are think actually physically stage people spend. place can a is we spend upon evolution, are want what places

determine for do, we strategically, also, But a answer the to think want to Company, about do you work capabilities lot as build-out. on question of know, we're lot number your sure. additional about just where as infrastructure across of I'm infrastructure. the investment talking basic of talking spending Company. money to our the to risk to expect continue And would we have the the not grow I'm create the I to will we a

today, So opportunity continue the to efficient that's both to still have we we I drive much level are business think need to to as more as we results because of the this become to at I we going investments and sit that change upon think that upside inside would say, an grow company think And here that to we much opposed relative be to how to we spending get should focused is any where of a had money rates we just the as in point. Company.

Erika Najarian

That's it. clear. Thank Got you.

Charles Scharf

is done, as it I challenge rates ourselves that this to up just we're at way. still We're And And challenging to pressure that it earlier, we because lot have with be investing. no where think stage come having become more I to add, if as in takes a think -- to the just us, of said should as nothing still a think that start we should in just for to then reason I people if -- us this Company pressure the were we've good okay, If thing, for up, that that phase were we we us we as be. -- money. efficient off gone across of this spending would say, is to still

Operator

of O'Connor Deutsche comes Bank. next The Matt question from

line open. is Your

Matt O'Connor

submitted and still, cap. there consistently from ask changes? Have Or those in executing the to just everything it, process that your So remind just you you matter of can you perspective? it's the changes on you're are that like you proposal issues? address And call a making I in your material us where wanted about those implemented are to

Charles Scharf

you're understand I that. in to very and the certainly I know answer Matt, consistent appreciate wanting

that we any us right Do into when again, done it's making make we're we've work. determination. do. matter a necessary. we done? me the to We satisfaction. to their the under for they're comfortable think we regulatory said have, to unhealthy really think this because, are the amount those have consent is of I game of they whether all will to that order conclusions? talk process all ultimately really to get in going that's what I substantial it's on It's it's to our right across specific to about satisfied obligations, continue think is not And think believe We And where still we they're what's do regulators do

I just sorry. I a not you thing again, -- seek just get thing so probably more of the why specificity. level for detail, it's to but that to us And understand right and I'm difficult

Matt O'Connor

ask of I also the And asked I such but kind know key follow-up of every that. I've And this obviously, of a kind it's quarter, part line know I appreciate stock. for question question. this I

is that the flavor ones any that the be kind local there? remind regulators I at of frequency more think on think that a more virtually. site it's of general, there's But kind least going you you are on slew on communication of perception And us, of of regulators? a have some add And the or like regulators those I make the central to just the call. central can with in just the like dialogue what of site

Charles Scharf

is meaningful. with for tell. a and the think the most thing we knowledgeable are I mean, the as about important we can would these on. just tell staff. important we increased, even have can it's of And I monitoring that you, banks a both think on extremely conversations going D.C. as as and often the that banks, want right here. it's do. And open extremely we're willing them do and I dialogue respectfully. of very, side it's Again, I There's their it. last we treat hard dialogue those important very, direct we speak they journey certainly local be And D.C. role, the I issues. both part here But substantial from I with the it's well very to how as I big to say their always the that that staff fair has to and big both level local have and all staff since as I conclusions the to the it's as on available of Company. level far I true that as put all And them. And communication to to the regular. they're team we do people staff the But again, have both of gotten on local hard what's with the the very worked D.C. we think, to in think And way specific of same new very draw about in said, my we're

Operator

question next Piper from Scott Sandler. comes Siefers of The

Your is line open.

Scott Siefers

to in more ask detail wanted bit I a Mike, rate positioning. little about

disclosures I guidance thoughts. this out would be curious your think still can to mostly figure from but I hear your

you'll benefit your can and most as powerful? or the talk it the little same and where significant is where third you're is the bit you of more sort on? how like, when Just less where put is simply, sensitivity, first about Or benefit asset a hike, with -- when it and sort or sensitive the on of curve so more

Mike Santomassimo

end. state most So short curve of to at obvious, on the And meaningful, of the benefit look something the curve is up Yes. the ends being you up, probably X/X just like the shifting the short end when whole right?

going And most so the to of far it. that's be meaningful by piece

I the exactly rate rises, think first of how to for number many. it's hard say

I of use first to way think model three sort our And can though, the as disclosures linear. that. a or you pretty it's four,

it a so -- earlier get in it if or it than you You it's get more the get worth June in March, forth. quarter and you in

good way. to pretty a point use guide it's so And at it this that

Scott Siefers

so one of of criticisms of Wells Fargo. been And the story of the it's perfect. Okay, there banks from still separately, a lot over competitors, and talent that out steal to smaller suggest just there few that years past business sort a pretty on are then is number that the easy

to of for and terms you growth that that workforce? last kind of seems loan sort the where on are of Can couple of running of argument sort been contrary stability sort the years. of in comfort touch Your emerging and you of what's with criticism to growth be just

Charles Scharf

very here. seems a people And feel to very, I to great been to for listened And Listen, specifics, feel very for little competition from We people I've the I've when have people since we all workplace. here. hire people that competitive -- We that about Yes. I quite Listen, of back. a sizes. it's lose we come ask competition. while

and my in Mike, when customers, it. a at look all tell keep I say, would way to to we people the that we're losing about we great room team me we the knowledgeable sat conversation about, I'm both "Gee. around about Company. competitors I attrition I've happened. senior all going about level at a place, that can before, at I honest people -- here, trying are we're the you, if at to Oh it?" said we look as talked what smaller And have think honestly hasn't I that's and these do That very happening God, And we down you to that the cover feel remember,

a So deal of enough set banker, a We're not for a if small But big it's that's company a to competitive. to hires very might them. not officers. it be lucky have broad coverage say

we So are about to here. good right, but to maybe we're keep that are hard here, they're going the work and people the people feel that

Mike Santomassimo

line. happy hired able in a we've like bank. We've bankers. little in few dozen at investment three front We've would senior places to been of to bunch on of I commercial hired Yes. the And sort recruit investment We've almost a the add what been just the people like a color. two relatively bank

at do find place where I to somebody you of think story definitely or go people it's good always think bigger so the feel the competitive. Charlie an could as roles. job a said, forth. feel attract I good And And we so able to left being -- into But anecdotal smaller teams a about

on We've be pay. franchise to got we've of direction. the be the attracted to And sort attracted competitive and people so are obviously, got I to but think to --

so it's constructive there. And been far,

Charles Scharf

you I places And the Bank to down other one like which say get consumers. that Yes. when want businesses Commercial cover different especially thing, is into just and

exceptional of to huge really strength we've the is and long talked It's a very the deep. time. areas a strength those of Company. in the some parts it's talent we the it's really have having for As the talent in a Company, about Company that And improve been of

about I we that people point. not never want the So we hurting And it have. about again, franchise we think the again, to that worry at tell you how but people, might we that good something just But this think lose it's happens.

Operator

come will question Pancari next The from ISI. Evercore of John

Your open. line is

John Pancari

on credit you're ramp among of to growth activity how assumption, versus And to either consumer? there loan commercial you've that any the the single-digit you been little detail a us card emphasizing that are on breaks low point doing more core the C&I to out opportunities really real seeing separately, then this similar book give at or the On estate can in products, what mid-single-digit loan side? your areas and

Mike Santomassimo

a on some really everywhere. the little the bit And Yes. Look, if it's -- really growth look expecting seeing of at across we side, board, John. opportunity card side. see are card think I to growth I we're And in think you the

revolve that Some be will through balances. of like

year the off been are in year seen assets, terms with happy at environment which of what auto we've good there. assets to quality pretty of products, pay end short-lived which we've the pretty Some what the the after. that coming be this and in in will high of the really space, next off seen intro will We've of start really new some balances into

grow year. then opportunity continued see covers. to on a side, on have the sorry, mortgage below the -- little consumer the I'm we look go go we EPBO go by have So offset there. these little you we will loans bit are to bit seeing And a into going That's some away. we you continue you there. nonconforming to side, which the And see the growth But at think some space, if nonetheless, some growth as we there,

So asset it's on my Commercial in do in And color apartments expect some Banking really some we gave in opportunity the more multifamily comments. -- that and like the I and classes and real stuff commercial estate.

the a that. the it. like And and even So given spreads better, places are places to about where are little real equity of we've better, in see limited structures in -- places quarter, we're even in really up, estate, that, targeted commercial like we're you growth office what being sort way managing in cash are ratios like

little really So do of board if successful. we're cautious that being be will I growth the space. think it a in across we're bit But

John Pancari

separately, in your of the came the on your buybacks the the you're quarter. outlook front, buyback the also buybacks a thoughts and give Okay, -- you appetite in on fourth just thinking we here deployment? great. expected dividend there about helpful. little than can and had how if us bit then Maybe That's And better terms

Mike Santomassimo

we've just given this a about I excess we But think before, Look, the Yes. spot feel and we're got of cap. than still we've different talked capital. asset like have others, the we constraints maybe in some on

yourself. that growth. see do can continue the we'll in some to numbers loan that expect You see We

So thoughtful that we've drive so about be RWA will some to that. that -- and got

billion if said period And we so, four-quarter this the earlier last right as next laid potentially year, ending we we the we out either through the quarter That path $XX of quarter. achievable to we decide in opportunity that's quarter. second go -- at above least or and buybacks do would that have the is still next

we got make of we and to look we'll sort think feel the at that with So about how things decision. all

about it's As this the a take think is, we last you times a you to covered basis couple that sort on Charlie think about dividend, normalized And get payout we to onetime hope what to get ratio of I think see out year ratio of to to in a some of that kind the some there. time XX% target payout just of you time. the results, things a XX% takes is that really over

time get -- it when down And that's but increase of But we'll that how to think we're Board some in -- marching the terms decision so ultimately, we'll takes we dividend. and and path still much I a there. --

Operator

question of James. David Raymond next from The Long comes

open. is line Your

David Long

initiative. You've savings the and/or talked operating past the being a plan in expense about multiyear

so guidance we expecting should your year operating to be And with still expenses this the in below that level? be range, XXXX $XX.X billion

Mike Santomassimo

it, year. goal net a at to this about point, see Look, think our reduction next Yes. be as would we

get inflation more a invest obviously that's on guidance like I we progressing And we and think of we can function as towards give end our we'll and will how factors. we'll bunch properly to on you know what that certainly that, you on be you what looks the think what more year. the the don't of anything add. I later but year. view given targeting that if efficiency have side in is whole the a guidance But give we're of

David Long

orders Great. do a longer Okay. past, consent maintain today to proper a follow-up, if are sort much the And internal as how there? controls upgrade you cost see and little management bit mostly of improve the for the down and efforts, operations to you your then savings the just replace road, risk cost once in with the expected

Mike Santomassimo

work think now I done our getting is properly. focus there is it's making but -- operating there, and savings Look, Yes. the the some place and that's all getting sure in stuff

thoughtful And the and making that so about but efficient a being we're stuff, little on focused -- a bit less process. our we we're little bit focus optimized most implement how it is

we really risk done -- for in a that the and of So is few when that's optimizing but think, will terms get I all compliance. while, and it a years there running off, stuff

Operator

comes question Wolfe next from The Chubak Steven of Research.

open. is Your line

Steven Chubak

looking squeeze more in to just reflect fee here of the you noise fee quarter, point fair impact know equity how just weaker amount and mortgage income, we normalization I just for to But line gains, give and the some of in the business broadly? So guide right an on ahead fee this change, we 'XX, jumping-off A XXXX. the one banking should sales, the overdraft for outlook. be quarter explicit thinking didn't about fee question just more next as wanted

Mike Santomassimo

think you I to it, just outlined honest. Well, be

to a just you and think the other function you primarily. take equity the of asset-based before. know biggest this is the what I talked look our advisory at And about fee assets that's lines, you doing if client fees, calls one Like right? market and investment the have of I lines, we've take on

And consumer grew And as too spoken of something side we we some on I I able really bit good that the the you last all then to a quarter And so -- we probably well mortgage be expect we're as how year. do a in think got refinancings to sort that's see the said, And we'll can -- modeling. market a function about side. that have others And and model. of point jumping-off went we've the is mortgage that. as in with penetrate purchase down space, your start year to how you driving the through is we're fourth place will be probably the number think well

market So hopefully, but we're a down function will of we deliver. that is, than be what can little less the what a

of you got those think just And so and forward. lines I to take of it sort model each

Steven Chubak

And maybe I if squeeze one can. more just in, I'll

discussion liquidity amount hoping And the still as in on earlier the excess be you you relative noted seen those excess doubling as It you've that given that looked I like to willingness there size earlier, of deposits end to around available balance yet, the you appetite in just was just for the contemplated excess liquidity the should the QT mix. sheet, initiates deployment. of pre-pandemic quarter. Fed NII a that the mid-single-digit of deployment stickier that's than to deploy changes long excess on some or today. in Just could I continues some deployed grind is growth of look have walk? guys And higher, any deposit more levels, and reserves you if if aggressively

Mike Santomassimo

how we'll that's liquidity mean, to want see right? obviously, So are you'd the growing, -- customers. deployed first be at to the support loans first is Yes. thing I place fast get like looking you'd that

And look over so of I function think when to is portfolio, what happen the a we and we But of securities that quarters. will a think series at going -- be year, exposure, in mortgage treasury the structured last decline product both CLO was the the exposure. you our you in increasing The that have lot increasing really side. our place saw done in a

And rate sort so given environment. the in of what's happening

over we weeks. as sort see last couple And already us I so very started seen what way given earlier, of a the small mentioned in I I think you we've will And we've happen deploying what more. And start of is think will think going how we go also loans both really grow. fast or how how with much function to will -- how fast think rates be we we a of go much but

this will in And the in things, outlook considerations drive a increase the point, we do of sort pace. And modest portfolio. I our two think, embedded expect so there, those or at

mentioned. we'll that And so I on but determination make that there -- based how factors we'll see all the

Operator

for question will RBC of from final come today Cassidy Gerard The Markets. Capital

line Your is open.

Gerard Cassidy

you Can should How about might Net-Zero peers. with risks to coming deeper your And do guys how you what for and guys out the frame Alliance joining into of get Charlie, us, up peers as those do monitor you as some types be your as well? of estimate we talked try that you you risks? against?

Charles Scharf

Listen, I it's think a great question.

those we're we're to the is have I this how to all the parts alliances think these joining think experiences, world that understand risk everyone I And through a it's impact much opportunities perspective going understanding all us a from about to businesses how of the are. the that. but question different climate we're is where actually from What that about basis whole ensure longer-term can asking. each for think that point also other's benefiting the doing the and think is other we of experienced in of on impact

about climate people think And on so to get often doing that means whenever talk we going to with we're stop to our goal we're jump going things. where I net to zero, too

everything or things doing And the on all, we we're of embedded invest what disclosure think in that trying of that different can doesn't clients. lots are, it to ways. but emissions broadly. more we to we're First different is also mean and the very different doing is our to the see walking what in helping from is others I more own a markets And very, balance the reducing with It clients that sheet in do Company all public whether you'll transition. our to we're areas, all to risks invest play them of to part across start away us lot do -- and can ways what that help our assure in from means

continue just in than significant I to disclosures think that to all I should continue provide the ask it's we past done think the question So all a more we've as topic. we on

Gerard Cassidy

give to looking guys' Can you through. I some on the on us appreciate obviously, pivoting you. the just considering Thank what the your is came that. follow-up color question fantastic credit And we like industry, credit, I the -- should in reserve? and is? credit, building you over the loss going we as assume your reserve we loan be peers, at reserve building, into the that XXXX normalize how next XXXX,

Charles Scharf

start, me up. pick and then just Well, you let Mike,

I across obviously, industry. what starts done I I reserving when everyone at position is not have the with this the guys think you one thing look across you think all the same know people

what's a good way we're we're losses a the And very that remember, think loan feel different that determinations. thing, I just of Remember, on idea doing are. and the It's we but conservative. the got it's outcome forward to for about addition the our think provide I think on have what think on make we of and forward-looking looks. everyone's to growth seeing. I as of that to in And of where -- embedded still of assumptions growth the are performance I change are going we're appropriate in And what the to making relative terms basis ultimate the sure balance in the to the to that, we right going point depend on at looking view We sheet. beyond all economy.

level But made today, feel of turns. we're good the that sit here from downturn the sit uncertainty assumptions exists insulated of about the we've environment. very we from given that because today, some can where in it. we lots very, hopefully, of different still And as so take we And it

think personally, a we where about breathing we calculation. that, but are I worried as in living not it's look I'm XXXX beyond So

Charles Scharf

Listen, over next we the you to thank time, talk Bye-bye. you the very much, and care. Take we will appreciate everyone, for it, quarter. and

Operator

everyone, Thanks, this all call. on today's for At parties your time, conference participation may disconnect.