State Street (STT) 19 Jan 222021 Q4 Earnings call transcript

Good morning, and welcome to State Street Corporation’s Fourth Quarter and Full Year 2021 Earnings Conference Call and Webcast. Today’s discussion is being broadcasted live on State Street’s website at investors.statestreet.com. This conference call is also being recorded for replay. State Street’s conference call is copyrighted and all rights are reserved. This call may not be recorded for rebroadcast or distribution in whole or in part without the expressed written authorization from State Street Corporation. this be of State on broadcast website. Street authorized call housed will the The

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

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

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

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

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

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

turn Now, it Ron. me over to let

year and morning, full Ilene, financial XXXX released and everyone. good quarter results. you, our Thank Earlier today, fourth we

driving execution and generation, Investor accomplished XXXX, growth Services. deal the we and in our as effectiveness as the is we to of momentum, retention remain during successful including announcing review great to Brothers like proposed and strategy successful of higher our the sales moment members total fee well Brown the These both client take that acknowledge for performance better dedication year. outcomes help the central acquisition Harriman team I of Before results, and world’s business as continued goals create investors. would Street past I strong execution Together, revenue a to State employees against to a

our employees’ achieving this financial presentation All of during towards would commitment. and skill performing highlights not advance X medium-term business XXXX, our we with our work, Slide hard we as progress our strongly made the targets. possible without been both of segments have of

slide. – Investment see Servicing strategic strategy, outsourced stronger enhanced business, core growth the front, Within in provider which we middle pivot the in enhanced of and manifested with office, across our an along our back combined business you the the solutions enterprise itself can and momentum XXXX, revenue to top

AUC/A by we diversify and broaden with our XXXX, wins As capabilities to $X.X year-end. clients deploy outsourcing Alpha continued announced at segments, in we successfully additional We achieved platform. client Alpha of back region trillion wins our nine integrated our Alpha XXXX now front enterprise to by and record live servicing XX in underpinned wins and

business our also Global We number new private Alpha well for assets management and XXXX, contributed executed markets under records ETF XXXX, against as we At to division. Advisors, that which our including enhance continue our of as in Street launching Digital product State long-term a in for to well strategy, inflows. capabilities revenues,

management Importantly, record results. Advisors a value XX%, to deepening expanded year in points Street’s by our XXXX of Global over X pre-tax percentage full investment the to margin franchise State

and gaining inflows Our ETF I share, active record performed addition mentioned. U.S. flow XXXX, just in well the market SPDR low-cost to particularly in business including

billion highest fees revenue level reach total service on in increasing back client X% improvement our $XX and year and servicing satisfaction, our at full particularly XXXX, market Notably, look quality each the heightened focus our management across performance. fee impact, pleased year-on-year in favorable revenue I by our businesses, As equity time. retention first with and XXXX, exceeding sales stronger am together a drive record effectiveness to on helps with and with a I for client backdrop,

us, will While a gross for in expense us, and of key our XXXX, savings. performance Because engineering with remained of focus expense company-wide approximately a strong management metrics a total strong to a significant efforts revenue in record revenue achieving revenue total expenses pre-tax to million increase we interest relative and Despite helping rates financial the $XXX do delivered productivity can and and sales fund and and talent, performance us drive with healthy our quarter EPS again positive pipeline XXXX. and number margin technology business growth excluding on the in in XXXX notable of fee front slide. the savings see delivered low improvement in efficiency future bottom in these that meaningful growth. the fourth year to this investment, Even leverage and this expansion, full in of growth, you in XXXX, in investments expect drive contain allowed operating of items, we to we key to

our offset notable by operating NII, delivered fourth to on basis quarter XXXX earnings total takes quarter of performance. the before fee XX%, fourth good through quarter, leading X, in or Eric rate growth, solid items. points more year-over-year notable increased to year-over-year, strong excluding will on revenue touch was The items. driven a total detail. in fourth leverage XXX quarter Turning revenue highlights you positive XX% We I excluding Slide growth XQ EPS briefly which interest more than total headwinds the

$X.X year-ago again the slide. wins a amounted at trillion The middle business from equity saw yet during quarter, $XX.X to momentum market to new items. inflows increased AUC/A fees we XX% quarter, at fourth continued a in which while for Street’s record increased trillion in margin, won, record Global quarter be a fourth and was asset XXXX At Rivers’ the Advisors, point servicing at under fourth the assets quarter-end see and notable management we increased the in trillion to to $XXX quarter-end, higher the which quarter. revenue recurring fourth the $X.X that quarter, million percentage average increased than $XXX more X% State quarter-end, $XXX billion to solid our excluding Charles installed, record into but annual expanded management AUC/A can year-on-year you of period to to levels Importantly, ETF franchise. relative totaled to the benefiting year-over-year million. pre-tax the in by

our importance balance the sheet the return Turning bottom targets of part to our at key we medium-term slide. its Capital shareholders. our of recognize a remains and to

Brown To share with share year, with our We of QX know, strategic operational financial in you reinstate Investor we our our improved this repurchases meaningfully connection suspended across second and medium-term Services. in number in As of currently progress pleased Harriman us full quarter purchase performance expect am common common line intended towards to the creating I with Brothers during in conclude XXXX. for shareholders previous we and expectations. a our demonstrated repurchases key remarks, value the opening our metrics, financial my financial We advancing targets. year of

ahead, for organization core strategic business position I for Looking future achieve success. have the XXXX, four vision aimed for are which the objectives us at and our helping

and product to First of this sales revenue executing and offerings strengthening outsourcer and continue grow year, out; pivot markets; continuing client develop particularly key management our processes. priorities underpinned is to to by build of number to capabilities our Alpha further and capabilities, platform private by completion on enterprise key including an a strategic

excellence financially will once Services acquisition is largest our a Second, the key expertise. priority. by use client is The market our it of world’s Alpha closed, on compelling proposed Investor the a capital. international successful integration of our and talent And leadership our strengthen focus further that and expand creating supplement custodian, service and add deepen reach, propel and strong strategy will BBH

continue must we we way XXXX, work productivity in throughout and to did organization. we efficiency transform driving as increased by Third, the our

model on while are achieving to Eric over improved pre-tax and through – delivering These us fee capacity, financial more horizon, deliver that and and relentless I confidence more our performing sustain by and to client to able further expanding the strong and We leverage organization. model. our we for you operating a allow aided to future us total empowered goals quality, our targets. momentum it speed businesses. the meet experience, our and take developing end-to-end for implementing medium-term also reflect operating growth. we’ll engaged desired our Fourth, will across be scalable And will and positive resilience. turn are build strategic four goals, enable client the margin to diverse, behaviors seeing A performance our focus medium-term detail. a each have must to employee quarter required an with year experience performance configurable me operational team and let capabilities more through that, with higher in simplified and even we increased continue This scalable culture

everyone. you, Thank good morning, Ron, and

briefly me recognize quarter of Slide discuss my results, quarter X. begin and notable fourth I XXXX on review items Before in year let full our the of the outlined we some

integration First, we costs, whose which most of recognize is and restructuring acquisition now CRD related complete. were to

the up recognize staff repositioning to costs were we we million, million costs million, consists which reduce of footprint of Second, net of accrued and and $X compensation attrition our continue release we more $XX $XX as occupancy previously anticipated. a as release picked effectively redeployed than

which competitiveness accelerating saw million compensation the this correct program acceleration in impact will increasingly our Third, versus awards. incentive realign incentive our make pay $XXX attract the and an expenses imbalance in opportunity the our to us increased an practices allow change deferred in periods, quarter. tight market. compensation deferred with awards enable of The cash us expenses by will talent we to immediate an future by in talent associated to of certain mix better competitive in cash of This

equity deferred of mix remains Our unchanged.

higher this the from tax sale securities that as some base sale gain benefited to LIBOR in quarter see the is compensation and $XX to deferred expense you’ll offset on help usual This of classified quarter held maturity. acceleration Finally, just legacy mentioned. million fourth I benefits also previously than a

I’ll both begin review XXXX of Turning quarter my X, to results. year Slide full and fourth

trading lower well year-on-year partially up notwithstanding percentage fee quarter left on positive the strong XQ than XQ XQ and with by headwind. XXXX finished is expenses revenues, XXXX. up more leverage servicing slide, reflecting X%, primarily fourth growth As strong you X increased growth can ROE in almost is to XXXX of we delivering compared fees, percentage NII revenue point only FX significant and the XQ the top CRD managed, pre-tax fees points. revenue were X total management operating the see offset services. margin

On the year of performance. show right our the XXXX slide, revenue side full we

in for for positive digits. that fee As And a historically record earlier, XXXX Ron a delivered point year, highlighted rates us the still pre-tax and leverage EPS than despite low growth operating was full of double more year interest pleased the in improvement percentage we margin XXXX, quite I’m revenues. in for

of quarter see were X, Investment fourth you’ll by of pretty saw record Services $XX.X driven the growth year-on-year business. as levels, we and balanced Slide increase as a largely market of was muted to new AUC/A end higher strong client Quarter-on-quarter, Turning our markets XX%, flows mixed. levels, XX% coupled remain net At were net to quarter strong we AUC/A growth $X.X year-on-year Advisors, almost year-end trillion. and Of increased higher both year-on-year during by primarily market of X% AUM a $XX net in driven billion. the Global record at sequential increases note, inflows reported fourth quarter The with inflows. quarter-on-quarter the

the Our SPDR year. recorded the business U.S. to $XXX by ETF highest ever strong global net total quarter, billion flows, driven for inflows pushing ETF full

markets about positive again. you average, for and point Fourth reflects on up U.S. I pipeline partially higher strengths provider. strong. a be quarter, wins yet without full and client translation. business X% AUC/A levels, market our neutral. only to would $X.X sequential X, to across international by while primarily The average remains partially competitive markets pricing year amounted offset to you record quarter equity regions relatively activity client momentum. servicing single business. of On increase a a to adjustments and full Servicing of and due quarter a so activity business fees new nice in impact were can to year-on-year. fees S&P were net fourth value the installed, basis, were currency a us but only were client that back which and normal X%, offset unique down Slide items headwinds reflects from trillion, and down, good was wins see and inflows positive the front which remind by totaled These proposition billion a representing new proportion, At segments to Turning the increased new another trillion as our of appreciating won, gets the offering AUC/A the quarter-end, dollar, $X.X and a net another $XXX solid quarter

were a pre-tax reached from fourth $XXX quarter-on-quarter, by in in fee results levels of quarter. were of Slide resulting fee and market XX% largely management quarter management driven benefits management ETF quarter. higher The asset and year-on-year primarily up by million, market daily results record strong money client offset uptick to margin partially X, up fourth fees inflows. equity and Turning year-on-year for an only the These year-on-year previously $XX reallocation X% The waivers reported in X% average averages. investment million a market equity slight benefited quarter-on-quarter

XXXX. and As the quarterly on previously taken particularly the momentum We years institutional you positioned franchises ETF over results. franchise were of delivered evidenced by over both see that year pleased right can the the actions the growth remains slide, that bottom in of we’ve well and course long-term strong our full our as

in currently in March Fed on will our $X outlook. be market management rate which in waivers, included of at come hikes, first Regarding anticipated money the approximately XXXX quarter will expect based that less they million an fee XXXX we

the let FX fee to was standing On volatility lower basis, X%, trading instruction Slide sequential driven by increased higher Turning lower XX, reflecting revenue offset partially down and primarily me FX lower lines more important detail. revenue business. by in FX services our volumes. year-on-year, in other discuss volatility, volumes a X% FX

loan increased clients finance. securities year-on-year, wins reflecting as securities balances. agency X% new to enhanced a quarter down quarter-on-quarter, a lower fees balances were mainly custody. XX% sequential higher Moving On of basis, fees Fourth result and business and mainly

X% were lower CRD, Finally, in next. by turn largely driven software which and down year-on-year growth fees to processing quarter partially lower and offset by quarter-on-quarter, X% adjustments, market-related continued fourth I’ll

which I’d performance. in XX, standalone we nearly CRD nicely was growth growth Slide half results services revenues to clients continue our year, and business SaaS revenue XX% year onboarded We a grew where range. our grow the with cloud. durable year-on-year Moving second the more client in to like XX%. double-digit the highlight row CRD clients to this a to Full base. represent Alpha revenue The year-on-year the the we strong delivered quarter, and more converted revenue and professional SaaS now of of as standalone makes in year CRD

million XXXX the by addition, Alpha as Alpha at for In XXXX, $XXX new record we by achieved of demonstrating business the a momentum $XX proposition. we year bookings head million continued full backlog revenue quarter-end, of value into supported healthy Street with – the State

mandates of to wins we slide. this enhancing of clients. Alpha XX We’ve offering this live year busy amount on nearly Full Alpha we was doubled announced Turning since bottom a right Alpha total been product we’ve as our XXXX the also year-end, inception. year, and nine busy new achieved At year. the Alpha have

data cloud the access analytics third clients and use for In perform also private our investment Alpha Mercatus markets and the to is acquisition we providing with native platform live daily end-to-end went our all quarter, Alpha management addition processes. our the platform in our data in launching and of to their data quarter, to enterprise which fourth that

result XX. normalization loan in memorization. primarily deposits the a well in expected investment portfolio. by of XXXX was rates higher a of quarter, NII X% balances, Slide to X% the as another driven the on yields, by as partially came interest growth low the down portfolio third lower, investment Relative premium as quarter of of and XQ to offset NII quarter impact mainly the Turning year-on-year, Fourth

this about We see amortization we’ve As we year. you long-end $X episodic rise an may recall, slowing. in do, quarter. excited worth third quarter included many noted benefit in to We, you, the are expected seen continued rates million, wasn’t however, premium previously XXXX of repeat like fourth about which

flat of been the timeframe, have it’s prospect rates Fed in far significant short would which action so have a and March really benefit the NII. However, on

past the of On in to higher up fourth show levels. assets we of a interest the during primarily then we Average average this which rates. quarter, the average monetize float increased period driven consciously our by deposits X% right expect slide, rising quarter. to deposit quarter-on-quarter, We balance sheet allowed

activities as volume. resource communications has points, discipline. by we to to pleased equipment ability were our data process even resiliency, XX% more and with achieving as on seats, claims, previously Fourth of X,XXX our saw was as to Slide this to as year primarily however, continued expenses. expenses incentive some the items, also experienced we increase notable to At year-on-year we and quarter the episodic pulled basis Notably, salaries. offset year-end as compensation business. items, the by and reflecting forward we’re as occupancy than investments excluding saw our onboarded as expected and higher X%, expenses, lower up Information larger the up focus was in helped benefits digitization, year, Overall, continued costs, from were compensation cloud. to well spend in some well up the line X% we us were was costs deals in down medical rate, demonstrate year-on-year decided technology brokerage year a Turning XX. IT we discipline strong market lower Medical percentage end partially down ramp-up were this some item vendor higher automation, and performance reflect compensation excluding costs. move infrastructure higher employee elevated costs investment and X incentive driven too. continued XXX% Occupancy and headcount XQ expenses associated volumes. we marketing with Transaction another headcount by on reduce other higher and GA realized our we and down driven by to X%, notable XXXX, as productivity Compared due and the processing and transaction systems eliminating expense benefits more X%,

XXXX revenue a where flat. growth percentage environment. we pre-tax our expanded approximately single and mid translation margin would expenses interest digits, rate the positive leverage And a of grew currency year have Excluding point, total generated fee despite fee X by been year operating impact and full with challenging meaningfully in

XX. Moving to Slide

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

can see, without we whether relative our you the As navigate raise capital environment continue to equity operating levels, the requirements. recent to strong with

retained of reflecting our billion quarter-end, quarter-on-quarter, related reduction X.X outsized CETX of $X about an earnings. mark-to-markets standardized and in FX RWA points ratio percentage impact of primarily the higher of to As increased XX.X%

in to expected business We expect XXXX, in capital coming of increase previously more our RWAs effects considered and changes has our in regulatory first all normalized the of to levels the quarter guidance. which been

Our Tier driven by million quarter-on-quarter, and form deposits, mainly to of X leverage client decreased $XXX slightly the returned shareholders higher a in dividends. total fourth quarter lastly of

communicated, previously XXXX, ratios and Brown the As Brothers of the lower Tier ranges our of to closing the we inclusive – Services acquisition. at the half Investor expect first our leverage CETX for of Investment be of SACCR the target X and implementation of expected end

to XX. Turning Slide

XQ see summary I’ve and already detail. can year our of a You full covered in results. fourth XXXX quarter XXXX

let servicing on our a summary, In full words delivered Notwithstanding increase our reaching with fees pleased X% we’re fee performance levels for results for record. few our our outlook and jumping industry about management the total XXXX. year a strong challenging the say we with year in before me So highest revenue into environment, this year.

the business and well and expenses and our Our costs in year for higher controlled, full investments people. revenue-related remained despite

well include provide the pre-tax yet year’s quarter, XXXX the low me which Investor ROE of leverage previously targets. rate turn full XX, cover positive delivered able outlook. closer on not with to acquisition as of Slide to announced let recently in operating margin the thoughts first that, even a we’re year some we both Brown our to On Brothers Services. enhanced result, drive as medium-term outlook and last I’ll And environment, our As and do

first to the the We by a could continue the the quarter. target quarter, second timing fall closing end of although in

new of original XX% higher many in quarter business been global required rate interest said, That at approvals, year the of growth a high current EBIT the secured. we expect now already process given for closing world with proceeding The are instead growth We the activity. regulators is of in XX% about year post in which year-on-year step addressing the just equity acquisition obtaining year-on-year the M&A our than and forwards, the some volume markets regulatory off of deal process slower each modeling. the anticipated EBIT for acquired first around pace have

Now, me and largely curve current let some our as the share first At the we first in with I underlying usually forward outlook full hikes see current in occurring views year. do, level, rate macro March. U.S. hike for three XXXX a rate assumes assumptions the our aligns

XXXX, also in influences further around for as growth volatility, market which We assuming well trading X percentage to are businesses. as markets point normalized FX point equity our

stronger but the expenses. which for As for expect benefit will offset a revenues, year, the to a currency translation, we as dollar U.S. will mostly headwind be to be

beginning revenue. So with

expect a that be will For XXXX. translation the about X%, headwind full fee up year, to currently servicing fees both revenue include we with X%, X% point growing of X% to for currency

we expect X%. be and market X% momentum, quarter Regarding year-over-year, first up equity to XXXX, and given fees be expected to of management X% fees with X% up X% expected up to business servicing fee to revenue be expectations to X% the continue to

rate we up to be basis. hikes, depending a on timing XXXX the on projected For year-on-year of XX% NII year expect the full NII, XX% to

up we to Regarding quarter flattish and first NII year-over-year X% to XXXX, still X% expect of sequentially. be

expenses. to turning Now

benefit X% you in nominal expenses dollar. a and our U.S. stronger see to we to in up in operating be people, to to will as invest X.X% the leverage. includes and expenses the while As this a both total on fee X percentage assume walk, XXXX, can just we due that expect We driving currently this point basis positive ex-notables continue business

in fund and also the digital, growth another which year saves year for expect help areas full walk infrastructure costs X of percentage that see X approximately to tech of on can automation. will business we like ongoing investments You XXXX, points, Alpha, variable and

year-on-year the expect in line of to growth is be occur guide, compensation the includes expenses, we in fee the operating which Regarding year All and largely plan and XXXX, positive the expense quarter. revenues deliver full all, both with seasonal behind and in total positive first the first leverage. our quarter to invest

estimate we XX% the call XXXX. the tax in And let our that, range to XX% back to be Finally, for Ron. hand effective to with rate me

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

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

Hey, good guys. Happy Year of to morning, both New you.

maybe of So I’m can maybe be guidance winning really improvement retaining there’s of a follow-ups going zoning amount of start made a in with clients we some unpacking in and good the Street business. and back to amount guide, on the just fee But sure has on starting that fees. service the and a as of State well. considerable obviously

So the But in included And maybe from for BlackRock guidance service the X% is as the drag from market net markets us versus of pricing? well. and you that earlier? of unpack the contemplated the terms year. this and of much growth you within business guys revenue X% assuming of in the X% expect sort BlackRock loss how highlighted benefit What I’m this of much how benefit mandate? to help in is fee guys So new a

Eric. to Year you, Alex, New Happy too. it’s

then your and think fees cover servicing fees, focus. is me I which Let where

foreign servicing exchange. year, that guide for guide And X%. about our includes for up up to obviously, X% fees total for the headwind a Our from X% is fee to percentage point revenue of X%

guide, servicing translation. X% in currency up, for the are adjusted to fees for example, X% effect, in So our

installations, in the all the so known factored events, think drivers, and growth, forth. about new we’ve business both net you If our our

Flows X to that’s and want some we to at another year-on-year it structures. – a client continues Net more good off activity, of point start up. business tailwind about to new little equity tick we our deeply, probably worth expect is growth you If market from percentage kind a peel points and variable a and growth. level markets, – fee apart worth of probably percentage which equity is of part

offset any the expect net all that be We onboarding, up new X%. attrition. obviously by to includes business core And new

So the it there’s that’s medium-term represents for of to what that range. the gets currency, just servicing net are the obviously, it of why the business of We is, which continued of X% range. upside, to targets, in really acceleration And does low grind which X% basis. guide is fee there’s X%, And on think the our towards to a adjusted then And the X% end X% range. is usual, in our pricing. down kind our you some

And flat will equity independently? should you kind this and in other words, is of range X% or fee in that’s outlined. expenses, If staying a expense year? X.X% to just growth, expense markets, range don’t let’s growth. or of to What backdrop, is continue will expect below be outlook the the more guide growth, servicing the there’s the say, that you’ve P&L, given kind you topic, we sort maybe contemplated are the of the is the perfect. Great, obviously bookends revenue hit equity around on just like maybe of guys the at to X% working flexibility the X% on growth the think, X% on side I the but fee looking X% that to in be tougher we trajectory fee that more market and the So the

that Alex, of that’s a modestly we’ve happens might to points some a they intend equity as flexibility of can what gives of question. think markets. go, some for in create lot a flat in leverage, we it actually about leverage, some, fair should And and down, couple where you ourselves a points that of plans that of operating part the and in fee is handle view I’ll to a deliver our it’s equity whether with variability operating markets – designed call see or right? the we up couple we insulation points and us That actuality in couple that way

be business, range our flexed. can see we’re we part Part our they approach market flexed. to what full a take. a can markets. in of a but in X%, based certainly, confident of within below correction – be everything what this that we market of easy, an the today. – would not move range. It’s the fairly on this will are XX%, can nominal if But equity we’ll Obviously, see. that And flex that with we equity markets is come certainly down think, I uptick kind can be we down equity we in see point do – fairly of of And it level we or

that kind fairway plan, we So of think good of we’ll the it, we, a flex we to there’s middle but extent the certainly can.

color. great. That’s Thanks very for much the

Sure.

of from Mitchell Your Seaport the Global. line with Jim next comes question

maybe good from could a Can increase little that? you BBH. similar just rising Hey, deposits? the their much of act off-balance morning. how rates, the a how you sweep, sweep appreciate the environment terms bit is that? us of to update to pretty think fees talk speak rate deposits, around the at is those the on discussion in Maybe level And EBIT in you the on sheet about I spread

Jim, it’s Brown Brothers performing Eric. side well. on The business investment is the that services run has

higher this seen servicing seen a in we’ve year. coming bit equity for what markets, their with come we’ve So is, fees the stronger

then off-balance have on-balance as And – cycle we’ve in rates have sheet betas there. translation a on right revenues we’ve similar ours betas on the seen. that within that and coming bit to $XX And part not for but range take in on think are deposits ours. I what some provide swept they’re on-balance over I and that and swept and as And last higher good under growth early are up. we that as and billion sheet And they’re sheet both had also as range very of rate betas. to of a in the do also I think on-balance $XX the the the bit move describe very suites the billion The and expect XXXX. we actually as and business. again those ones strong deposits, will range. that’s we sheet the nice, the expectation And fee into both that – off-balance think, They’re quite have nice on around our

flows Or What growth that just strongest had Can is more of many some inflow? just growth? in asset Okay, are sustainability grade? from? think you describe management to that enhance great. the drivers pivoting biggest doing And maybe the you’re And then coming environment’s to years. flows, the you do business, that just to you there’s record where this

Ron. it’s Jim,

me that. take Let

growth the that sense in broad-based our the firstly I the in business. an from investments think it’s, is – that reasonably ongoing investments ETF

non-U.S. offerings, you are areas So for active SPDR growth low-cost for really fixed and investors ETFs, the large invested of institutional good of ETFs choice in where in core which – saw the strength or income, the we lots instruments

see institutional to expect we’ve performance we our there, investors. good position a particularly to with worked solidify as continue So to

Secondly, institutional are in the lot index institutional that to a core the done traditional companions in the – products developing space, in of work the team’s business.

environments of bit – Then a diversification we’ve some business. remainder the have and seen from in cash as but also a finally, as roster, away. flows little the We rate great benefit the does got in it rising a and ebbs waivers that client cash fee business. is great And goes we’ve will obviously, itself,

So it’s across the really board.

thanks Okay, the color. for

next with Research. Steven comes Chubak Your from Wolfe question

morning. Hi, good

in the deposit the to initiates of of in today just just or runoff, yields? insights hoping I could some terms NII of And kind non-interest spot share in Fed you’re flight where the bank first, deposit terms just deposits. bearing Eric, of remixing rates, book wanted some versus QT – reinvesting of broadly, deposit the just assumptions and was some you’re contemplating what maybe NII as you I unpack underpinning terms the of So guidance.

Steve, it’s Eric.

do reverse me in order. Let that

the I see that upward. portfolio. small quarter tick another And in downward our starting in investment – investment first But the took you’ll you’ll think starting book quarter, quarter. converge and are fourth yields see portfolio in the slow this we’ll flat that book to back a progression front a see and then relatively

let comfortable me to the we of just this rates. dependent the get So be. loan obviously, for rates in terms then tightening, in, NI off, on higher comfortably the uptick around increases. year is question think, and we’re are come And I Fed better long with and balances where the quantitative we’ll the The

XX% non-U.S. rising rates, a off is is low think of than rising short-term I last a that the half off and about quarter portion to off more little than in we’re short-term rates. is of showing rise less long the expectations rates, XX% NII, then U.S. of in

and flows geared to end that towards directly the So, rates, then through we’re balances. front really

amount will to been about this There And I rising balances, start? of of year. in it’s expect or Certainly, rates. balances we say week actions tightening Fed’s did over helpful to what’s – does this. with international I’d start For of When deposit with the tightening? deposit And I when interest in this that currently all book with wrestling and it U.S. quantitative lot be flattish, a think quantitative they think last some of just we’re two. And the terms pace has the then happen. the discussion

you started to full the and long years three, rate the fourth, go the kind cycle. after two last so rising which years cycle, third rise, ago, steeper rate after time quantitative not of first part If four and tightening was back year a a second just and that the away, of

quantitative think expect this. than is tell. And I we’ll so, on more be to and much, on hard This bid there’ll tightening, deposits. it’s to effect And some XXXX, have range a something in then ask XXXX. How thereby though,

controlled deposits. perhaps, it quantitative right, time in Fed much, too flattish. the question felt some this just, As XXXX, think recall, this in last around, and pace or pushed of like if downwards quarter, in the of some created see the just had the short-term recall, is you potentially we’ve I ebb tightened Because We you and three, know, the years back off some I money tightening. disruptions deposits them guess, XXXX markets. third ago, cycle, certainly And the them four We’ll in you as in say let quarter. uptick

we expect see. anyway, from it, see. – topic. That’s, moderate. we’ll while year-and-a-half more XXXX think so We’ll in, see. now, tightening And maybe some The pace the I the of we’ll happen But call tightening or say, to thereabouts, a

fairly be straight. should XXXX think, I

Eric. that thanks And you’re context, Oh, management. for how thinking just capital for a about on follow-up

the we give spoke to level XXXX in I payout You what look just like beginning ahead us to was buyback as as to you XQ. future the reinitiating And the XXXX. really planning some or SACCR hoping context you’re you guidance any regime, provide Basel can of about would impact IV of capital impact under on changes of to on of be changes thoughts terms the helpful. and upcoming can regime in preliminary

There’s Sure. Steve, lot your there, a question. in

be low take and we’re quarter. capital – the our end in to of consummation me guidance implemented that We’ve of range the with XX% acquisition. SACCR our end the kind let at out. it That from the further think Brown includes pretty both timeframe Brothers of I So to comfortable the will XX% being CETX first for near the

carry So, end year. for that with the of through half think low range – our think first of both And will us of comfortable I this we’re, we the those. at I

As quarter second second we in first then we OCI start as swings go we’d pace at the the quarter. see through buyback exact certainly the and year or see like buyback. We’ll the hit the kind the either on a negatively. depend how will quarter, of pace what ratios to We’ll positively of capital start

be proceeding then And we’re quarter to think third back stock and not a buybacks think guidance, that earnings. then think, return of in buying that I beyond. we back within and quarter to that comfortable at quarter, XX%-plus I or puts capital through but dividends the And in operating sets so that I the to, way. in nice, in second start that we’re in trying, fourth our then to capital point, a continue us and pace return And trying at way us, up should

I different quarter, and The the end But to a game, Basel start reinstate forward. on different we’ll path others, to in then there, headwinds loan headwinds the and quarter, get vocabulary comfortable have benefits capital half review and book a though, the there funnel then end nice of the a we’ll ops think, ways, Clearly, and and from fourth this to Basel are second of we some low pass. III refinements, our anyway, then accelerate first buybacks to year, level. So, ranges, risk then third come loan trading IV quarter, out some book, some charges. certainly book smaller than we get the from that probably

is XX% be all like bit of our continue And ratio each guess of we But guidance. shareholders. more bit to quite of capital into a a targets So before, earnings or it’ll We a said we feel deliver factored our year. can generate returning capital it’s headwind. been that back medium-term my of on I comfortable to

can start just – color. a in could models? did That’s that so you the And quantify reflect SACCR impact just great from our we to quickly,

over remarks. us But this a amount, was of RWAs, typically worth prepared actions quarter. we’ve – billion. the rough little will And the first just we in didn’t it about in carry billion I half half. that is cost of Yes. less quarter, SACCR $XXX – the got $XX about offsetting about

it around $X call So billion.

that be I we’re and RWA. our we So we’ll before in several remarks, the the and ranges our to within capitol $X has prepared think said confirming gave back half my worth quarters, it’s all first affirming probably the year. this about of basis, guidance in factored that of But I last been net as over in

my Understood, Eric. taking Thanks so much questions. for

Sure.

question next RBC. from comes with Gerard Your Cassidy

Good morning, Good Ron. morning, Eric.

Gerard. Hey,

us give equity fee year in grow gave you this inflows, color from to some out, you some the markets. us expect how growth, on, can you the also Eric, X% servicing that on some as and see X% with new pointed for the you but detail good improvement to

flavor, of think us your said important and markets EMEA equity geared points and versus other that U.S. markets I at is markets? a toward give it is you number. the U.S. of when you X how look growth? you the that percentage generally the about – you the Can take When drives kind the portion,

that’s ranges, some European by markets it’s Australian XX%. markets the just XXish thrown think almost It’s the that of the, Gerard, then could XX%, closer if emerging I bit also important, I just it’s about to a and know, Eric. rates really don’t because mix, is probably, worth half, think, a U.S. in higher be fee maybe under cases, markets I a

we remember, of assets fixed income is have book service. that as other, our The you part we

of now the point. to the is not of we a that – of half as year go end to effect then in tailwinds us of talking if should or what side. of rising can the us – last market were a of on on about in in our of into we extra opposite flat XXXX year, equity XX, servicing fee point-to-point whether part and income half that purposes planning year we book, why fixed I that’s so, What book a lifts. December our average thought at give versus And stay though, just point-to-point give from the from effect but we’ve rates, all as itself a – point December and the from through the XX we’re the least XXXX, growth And basis

roughly So, percentage coming point baked get I way has don’t is that in go markets modest then And tailwind X down. the from in we somebody you that’s a think how assuming piece appreciation. a some smaller expect,

short-term should rising Fed of it impact carefully we meaning, AOCI, income discussed in portfolio? peers – your at mark-to-market the would And what with Can you portfolio? fixed follow-up, us a as fund the then be would And duration negative rates watch the share for good. rates the that the Very of about the expectation rates you rates, interest XXXX.

seen at about that We slide could in have the I of we Yes. think, investment – this inch we’re that duration the X.X had, years. down the you portfolio, we quarter, NII

now, from trended kind – investing comfortable. We’ve a a curve, in five-year last right quarters. we’re range. the of And down two to couple a last of more the quarters So, bit belly little of the been

quite I an X through standpoint. us, think the is points from percentage OCI management for XX-year up comfortable including

XX-year, get get obviously double kind you if – good a hand, have you time. X got you buffs, over I percentage which you creeps a on an one the points effect. OCI of of think ahead, On bit back

through over quarters. coming the rates investment flowing And So the the celebrate it’s portfolios hand, temporary. other you higher

at if it’s think how sort just mechanics quarter-to-quarter margin. operate but I of So, net end. of the spike mix, would affect back we have positive some the the it on But we

that. appreciate Eric. I Thank you,

Gerard. you, Thank

[Operator the of with from Instructions] Autonomous comes Wildhack question line Rob next Your Research.

guys. morning, Good

average into growth loan here good You think had quarter drivers with were And that is of XXXX? the there? What loans do another up how you sustainable sequentially. X.X%

Loan good the been has honest. last, couple Eric. us it’s of Rob, years, say, to be for growth

quarter I basis. think digits quarter, in the loan growth a comfortably on up driven year-over-year double after we’ve low

shifted investment good see also but client form, to – added the continue we we portfolio. in as we form CLOs also from loan CLOs the demand, quarter, we reduced securities some some This and

and build to that’s And as But continue equity them a multiple clients that’s to grow as the how clients, – with lot capital it quite relationship our line of and more the and to us low the is call do strong the part and because demand of broader but in So estate continue a with fee biggest say well. of loan operate to our renew we’re alternative we work from to the said, markets more there us momentum That alternatives financing. us our lend shift. some is quarter, make and see was this capital focus efficiently shift comfortable to rebalance parts comfortable, and think this where grow the motive We have bit for that’s constraints. what sure little we them – as grow for real episodic, that stress demand in still testing really private of seasonality, double-digit I play is build a is see we’re a doing There’s helps a because we just quarter. it and think, portfolio bit continue helps reputation the poor of and loans, we happen a in in. range, deploy is and I’d we won’t won’t every what general, we always every about

expense outlook investment? the is forward? of X% growth, costs. delta the to it Got some and of bakes implies still longer-term? X plus there’s of going think Or that more And X% operating is investments point turning also it. growth this And expenses Do of but in investment available level kind you. and elevated Thank or variable leverage percentage then an you fee required operating and between a from leverage, maybe level

spans some to accounting, attractive The the forecast to office. office functionality back invest partly also we what’s into which the areas feature middle the segment of you’ve around Alpha, partly And and segment. front in and the investments by custody differentiate enhancements Alpha amount particular in and in sort offerings. opportunities also in table back finding us is clearly, do marketplace hard we’re where invest stakes in is And see of that the through It’s seen in future. and of opportunities around in to our office

of than say, last So think was of a probably range. what’s probably, X.X during X% a it’s there the this, investments a me less investments, to for I’d we there’s We bit invested say, XXXX. amount we hard less necessary probably to X%, year, of instead think

to I So year us you’ll flex the is, investments one think you’ll amount see see the what of next. from

the come seeing. what what I and we’re growth from conscious growth think revenue the we’re of is confidence in that revenue investing that’s investments. should seeing from past seeing And

ways. I revenue to invest some investments seeing to in accelerate franchise, us cases, think the but I the carefully continue past that, in think on the We’re modest and that in across growth confidence we’ve the that made gives

And savings productivity a – you part that’s part business we this automating saves, in how other the and that’s I the invest, should and run to executives, the very – time we and from and we’re of virtuous a more processes, been comfortable we culture senior but the same think business, think circle. and that over that’s think engineering. part a a in we certainly the important has – our find I savings. more our productivity to of productivity, at digitizing investing, come an think other hear as drive business our I time, of And with can feel that’s

Yes, that’s helpful.

Rob, what…

I’m sorry, Ron, go ahead.

to the would just that management managers, Alpha starting we’re the it’s we’ve markets. we’re opportunities which add invest Because to as aimed now in asset that originally traditional particularly for out roll business. private actually to platform, is good Alpha seeing I the news asset was that What built the space in at out

goodness, that notwithstanding we more good underscore on And would Eric’s that seeing there. is see productivity. continuing to we’re what I eke we’re opportunities higher But point higher opportunities. it’s that focused So out the and

longer. So that we virtuous we cycle good investment a there’s the see because shows quite there are thing, of the while plenty a that where narrowness of it to places to opportunities, of the for And ability is grow. this fact our, actually operate, notwithstanding continue

it. Got year And gives investment and last of to maybe you fair the defense? play this capacity that it level room both then and characterize this and year offense the to

Yes.

Great. you. Thank

Schorr Glenn Evercore. with question next Your from comes

like deferred acceleration, that saying portion, just talking? because I competitive. the Question, you deferred I’m on obviously, are what we I’m we get level – practices And comp employ curious, to Ron’s. asking more the

well what included, is why going are that expense you more than and you and was cash forward. presumes what’s forward, that sticking? that probably it’s – here a in your guide, I’m So have going that different curious piece peers changing but higher just obviously, on,

Yes, the not middle the be you – will, to that the for if our lower and feel this employees, Glenn, senior employees our – are down. would of most would senior, going it be kind senior,

the VPs, Presidents AVPs, So will and Senior Vice our parlance, some fear. MDs in of

Okay.

competitive the in this might equity, to give to now cash, take XX%. for change years cash range going way change, content cash of we’re to a immediate we’ve final And XX% to back, and marketplace. help when deferred fixed a the senior ago just with the and about the out most of to just XX% had average immediate was XX% years XX% you folks bit deferred to was deferred back Glenn, mostly equity. XX% I think made the at the to then deferred was then, That be got context, equity a And this And we the – – X% compensation way that stays deferred up the XX%. – little this and the five of we deferred was the us one facts equity the cash change, gets place five now to the two-thirds market. had immediate XX% we’re for that that employee, is and the to We and cash XX% completely to with XX%, made that cash,

P&L P&L to now this period. deferrals we’re you’ve the what think we is – line of into these the with change. as do market but don’t to to the future. then previous allows because mix. What of of crystallized in So the in got hit add cash forward we’ve hit in P&L that to the part us new happen some going crystallize is future, the the in those does the current some And cash the the deferrals, will And the

this expense periods the be line. So neutral on to will subsequent

Okay. curious must a execute doing, Thank your objectives, high – Very the you you. straightforward, talk can what to what I was on you the how and four how in do and to helpful. curious are those. everyone think, higher ability you’re to be was confidence first one through and how I’m The which organization, measure? us number your the And three, going that? to has performance think I just on Ron, you’re four, oriented going I

Yes.

sometimes behaviors. it think flip really of and if is And on behaviors. is desired the I culture. an you this and So objective mean, which term, performance is And of used it’s maligned kind about very around a undesirable ours, us, side, eliminating for Glenn, culture, ongoing about

middle serving behaviors, in we all when related that now now future. on a we’re puts else on is more all would desirable foreseeable focused world in we’re of started managers. our those the requirements important now kind ago, those because we burdens on and That a even new top our operating clients years than operating, – that of – of hybrid this argue of So for managers, serving new particularly everything and it’s we’re performance. terms couple what need burden shareholders, to driving all I

of but the in we terms that which So making those considerable a cost are the estate continuing benefits, eke to hybrid about sure and some able of employee and savings in to world we’re kinds flexibility all at real where things, are. time, it’s being out deliver same

in and terms think we of high So behaviors. and terms culture performance we about about – in of performance think

Ron. Excellent,

Brennan Your UBS. next with Hawken question comes from

just Good wanted to to circle questions. for morning. wanted I you Thanks of of some clarify I the Eric, points my believe, kind taking back, made.

and expected XXXX in XX%. talked you here EBIT to up about think I to the growth BBH accelerate

make did provided then apply million previously, baseline? when that using provided to $XXX So sure just to should it’s I we And setting all that to? That strengths talked the we work shakeout line the think we And how alluded them? I’m did out for expectations? that think about announced servicing, you level three the here And not in year did NII. around those you a shift am Or whatnot, actual XX%, the when as should other you some the number little disclosures and to we better, correctly, you should quarters they about deal? revenue of be right – in also you that from about for expectation? a with baseline Or

Yes.

accurately had, EBIT estimated their of they around as questions, in performance It’s and to that Brennan. $XXX right remember, be level. fair – came Eric. me you We Let about XXXX million,

case. So Investor as we that you the expected base XXXX to from XX%. shown at if base documentation, of acquisition. Services the perspective, announced, XX% had time, XXXX From at of about to a in our model Brothers as grow we a had we in comfortable recall, growth off with And we’re – the some Brown our deal XXXX

equity set activity, Brown rate services interest in continued line colleagues and was that because of really client nice the the that forth. to growth it’s tried equity finding part grows, the our past XXXX. play with of environment, just a Brothers investment to and the the – at now, about and of performance, initiatives of try market the part in to through, what good be so business XXXX from to tailwinds off So, year EBIT a we each we’re expect market and step XX% roughly And was

of the line that servicing the comes on through portion – the fee comes that the sweat probably on-balance the is fee – the And more sweeps, a think portion have from But rate sheet and those the affect tailwind of is significant on as that then interest a from remember deposits. clearly, don’t factors, is the on NII, I is sheet is the a is equity handy. the pieces portion the on-balance both that I well. and feeds line, and that’ll

both Okay, whether great. a is And retiring been in looks Thank issue. with of it like does a seems whatnot. where business my And leadership business transition far business. the strategic a and the in transition that like can From discussion What all asset question, you Cyrus That’s transition and direction? you a to management there’s Thanks. not direction for as then leadership, there separate present the that about clarification. an know has want is been speculation your to open us past updated in strategic impacting the leadership go? second about on let what you and direction shift as you or thoughts opportunity

as mean, invested we’ve that I can in see our from maybe you business. results, Brennan,

core core a R&D better have years, It’s at owners funds, asset sovereign an having business are business. complimentary wealth has in leveraging. it the client also to overlap to of the We’d and we’ve that paying let and been able our better largest investments There’s asset managers, one client segments off. laboratory. like like bit of business, certain gotten us of the the the very our servicing Over as

stay like business. the in Under Cyrus to we’d they’ve So done there. great themselves intend leadership, business. job, the a We numbers for the speak and

So broad I change see outlined. all I of businesses. wouldn’t our in in strategic better more that expect there’s here. do to just direction always Certainly and do not to opportunities mean, a I

the look and strong talent plan attractive we to we’ll continuing continue but this to full person one there, and a to that. an intention of So do in get is grow level business inside that and business. base got to us but take want have very We’ve and which to will right next we out the here,

questions. my taking for Thanks Okay.

Your next question comes from Mike KBW. Brown with

good taking Hi, question. for morning. Thanks my

the there. the as date, in just move that to appreciate curious I I was the closer made And guess update and the closing in change the consideration would paid? will valuation outlook BBH So be outlook you on we actually I announcements. that does trigger increase the lower that EBIT that than the any environment, be operating at in to total implied – Obviously, need be

So there sooner time us you that And through? feel crossed more remind on fee do you just of you. thought mind. is, then close just the that which the ones the after one to Thank versus one can the confident unexpected synergies my can was that take specifically, you follow-up come that will deliver

part the Mike, the and risk or down that in of why than up terms to, management. you turn contingencies that don’t purchase no, price usual there’s But the over no start expect I’ll would in synergy Eric. ones question Yes, the I other than either of

will So here. due that no no, there’s additional be payment

Mike, And, Eric. it’s

Just on together. a sometimes each We our that’s the in, put probably then sometimes and and synergies of largest that’s of there some three, base is obviously cadence, had would balance, year opportunity, come estimated come year of did XX% base about the the of and area. expenses, I has synergies, single in will synergies, cost I the out which two as of them think expenses, one the two our spell out we one, and cost think on which the we of

synergies, value./ because terms plan last got quickly. capital then we And actions versus can of the We through of I balance In fee deposits, that. we’ve revenue sheet real create swept the for fee one the the sheet one resources synergies. should that of ways amount the relatively on And the on-balance think modulate the the come that’s

it’s is, And mix. simple as the on than right, capital those, opportunities, swaps a quickly about markets, on cycle, the and tires we tailwinds about for And intensive of the doing there think in of some products announced can little do say, hit we’ve bring go FX also but next our the you exceed round a are definition up we’d it ground of as like well. that, I of think as little targets. servicing forwards, broader old FX to fashioned so I that the we kind or And market, take closing part to more set when like part being longer execution to were the quickly, there’s more offering on them. through on is the clients, synergies in, a which on because Now setting Brothers of and of, expect said, deals, of come more running. ones kicking meet then obviously, what been And Brown but exogenous of I good the some a then as the work and we sales we’d that are what part how

I And think Appreciate did a Or the way after last just color benefit? about one, into quick best you is rate? there. is just the Apologies, tax clarification. But just to discrete maybe missed. that one considering tax great. back it quantify Okay, typical that your

accrue help map as credits then those foreign in taxes, some Mike, there of were foreign and quarter, books, came that there the which a closing a our wrestled, back with into then actually then payments tax tax as the deduction. I series was – tax year previous credits that, there of some some It’s because U.S. of that through there’s this jurisdictions, GAAP were benefits kind that

series a of there’s So them.

the full do XX% best the range. are to rates probably tax take in our to it to think XX% is typically I year way

– So, rates. which tax you to elevated about take this full were way to XX% the more usual in think discrete, year now with midpoint closer of us good a year than that, this these with got

the kind years. think is of call the might we’ve many – the what difference I We planning piece. for lumpy I – tax thing has What been probably you would that notice also the that I it. do do done I though think

carefully. side able being part to it on a other the line, bank. banks, of like international some international of an do planning. it we modest and tax always We, – We bright of We’re the do amount are

than come And it, so little a and that through it’s usual think lumpy, the tends to particular – it it a lumpy I quarter-to-quarter annually, we P&L this be see more little good see you’ll just quarter. was

subject. taxes always The are Okay, complicated understood, I appreciate.

So the Eric. thanks there, color for

Sure. Thank you, Mike.

Your comes Brian with next Bedell from Bank. question Deutsche

morning. circle for the on thanks. opportunity Great, deposit back Good BBH. Maybe

the initially, to portion you plan you say, million deposits then to to balance on I capital think update now of I to if clarify, maybe on to what you’re XXXX, and additional $XX right balance maybe might the if for quarter of do was $XX I sheet the billion, sheet a kind what on at the balance deposits sweep in about I guess of then program. the billion. set to, And Maybe inclusive think planning about billion initially, $XX opportunity on total $XX bring Just on conversion over if convert, close bring get on? of of BBH bring think more And sweep you talk billion said sheet, there’s quarter-end $XX you’d of the you in at to like you the us strategically could submitting? what – you first just that just the

Hey, Brian, it’s Eric.

this to we’re sheet, looking they quarter, $X on time. are balance the billion $XX to $X I the today. it we $XX just broader you first we’re of We’ll a at the said those targeting sheet off-balance first and end for targeting, – just are could bring billion on the the on said as is swept. the the estimate think quarter, have in the probably And of it group, – billion acquisition, balance think we the good we have stuff consummate sheet takes said be about another About billion that second or and we’re quarters, swept. to XXish that so, $XX billion and we I

bps, really, currencies, of XXX obviously, aren’t at is if more rate you or inclined terribly rates you But let’s question say, on attractive. then bps, more basis prevailing the of and prevailing different then rates bring time, can when hit XXX balance you’re short to sheet. this across do points, over on at think we I we’re deposits interest balance what at XX sheet operate do levels

of range. a we as so And think it

works. – a Brothers want I clients, that, we financial are primarily and our for that think Brown with who of well number have those about though, Services they for appreciate a to institutions, well, the deposits. works maintaining It we program It that deposits works quite sweep, quite also, to relationships thoughtful dollar be global clients. Investment they that

here billion beyond to maintain program so initial clients the we’ll and can we $XX to see hand, with we the the it goodness get there’ll of And potentially. opportunity another in swings size. you maintain And the we’re in certainly be and there. I I want And circumstances. think it discussions of move one with part on when be it suites, But see certainly – will of for be the part counterparties. will most themselves But think want

That’s segue great question color. maybe beta And just this to second on deposit expectations.

they thought deposit its mentioned, little that. to it you you a to the be around, like bit don’t profile? in be ended would or It a you’d might last you if – XX% cycle, cycle, can have similar that I different think beta know would deposits it relative do of and you seemed think the Fed I fashion up of cycle just you moved at if time. looks around but similar during those maybe the similar they clarify confirm be funds the if to hiking kind a this over like and that treating BBH obviously, rates a

deposit we past, or and you deposits standpoint sixth, XXXX, fifth actually fifth, they’re and or back what the did XX% to a and really, get beta When Brian, in when saw expect, into from but likelihood get back as the play in deposit in and we to because what a hike, I through. minus So, Fed saw chance rise to maybe XX% hike, range, XX% fourth of was funds, do the think we you’re both are of revisit were XXXX, a But rate hikes, good XXXX. get opportunity the Sure, first XX% get it right? similarly deposit I betas, in managers. to as interest-bearing but it’s you quite to rate, said primarily in have by see or where ours. some to you betas. the are quarter-on-quarter third, interest-bearing we go it, low. rates back, see currency it asset behave do to usually disclosing range currency, XX% expect in our rate likely to by we the call how again, They and one two betas ours. about closer deposit cycle. the Brothers the first similar They And the But it’s if Brown you to range, plus the and, betas you’re and currency with good and seventh go you we like

Now, truth, in that there’s I’d – – we’d rates. with there XX% with to But capital. opportunity because earn ability quite been covers our to prevailing with be I if there. think there’s we limited NII get like a our here, in level cost of I pleased get good we’ve that

long-term levels And to so averages. a are a lot in just of up with that is more this catch line in the a

color. Thank great you. That’s

are There for call I’ll closing further to questions. the O’Hanley over no remarks. Ronald turn

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

Thank participating. for you

You time. may disconnect at this