Northern Trust Corp (NTRS) 2023 Q1 法說會逐字稿

Good day, and welcome to the Northern Trust Corporation First Quarter 2023 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Jennifer Childe, Director of Investor Relations. Please go ahead.

美好的一天，歡迎來到北方信託公司 2023 年第一季度收益電話會議。今天的會議正在錄製中。此時，我想將會議轉交給投資者關係總監 Jennifer Childe。請繼續。

Thank you, Cynthia. Good morning, everyone, and welcome to Northern Trust Corporation's First Quarter 2023 Earnings Conference Call. Joining me on our call this morning are Michael O'Grady, our Chairman and CEO; Jason Tyler, our Chief Financial Officer; Lauren Allnutt, our Controller; and Grace Higgins from our Investor Relations team. Our first quarter earnings press release and financial trends report are both available on our website at northerntrust.com. Also on our website, you will find our quarterly earnings review presentation, which we will use to guide today's conference call. This April 25, call is being webcast live on northerntrust.com. The only authorized rebroadcast of this call is the replay that will be made available on our website through May 25. Northern Trust disclaims any continuing accuracy of the information provided in this call after today. Please refer to our safe harbor statement regarding forward-looking statements on Page 12 of the accompanying presentation, which will apply to our commentary on this call. During today's question-and-answer session please your initial query to one question and one related followup. This will allow us to move through the queue and enable as many people as possible, the opportunity to ask questions as time permit.

謝謝你，辛西婭。大家早上好，歡迎來到北方信託公司 2023 年第一季度收益電話會議。今天早上和我一起參加電話會議的是我們的董事長兼首席執行官 Michael O'Grady；我們的首席財務官 Jason Tyler；我們的財務總監 Lauren Allnutt；以及我們投資者關係團隊的 Grace Higgins。我們的第一季度收益新聞稿和財務趨勢報告均可在我們的網站 northerntrust.com 上獲取。在我們的網站上，您還可以找到我們的季度收益回顧報告，我們將用它來指導今天的電話會議。今年 4 月 25 日，電話會議將在 northtrust.com 上進行網絡直播。此次通話的唯一授權重播是將於 5 月 25 日之前在我們的網站上提供的重播。Northern Trust 否認今天之後本次通話中提供的信息的任何持續準確性。請參閱我們在隨附演示文稿第 12 頁上關於前瞻性陳述的安全港聲明，該聲明將適用於我們對此次電話會議的評論。在今天的問答環節中，請您對一個問題和一個相關的後續問題進行初步查詢。這將使我們能夠在隊列中移動，並讓盡可能多的人有機會在時間允許的情況下提問。

Thank you again for joining us today. Let me turn the call over to Michael O'Grady.

再次感謝您今天加入我們。讓我把電話轉給 Michael O'Grady。

Thank you, Jennifer. Let me join and welcome you to our first quarter 2023 earnings call. The recent disruption in the banking sector reminds us of the importance of resiliency, to be able to meet the needs of clients in all operating environments. During the past 6 weeks, much like over the past 130 years, our strong balance sheet and conservative approach to risk management have enabled us to provide the support, liquidity and exceptional service our clients have come to expect from us. Northern Trust continues to be viewed as a source of strength and stability as symbolized by our anchor. During the quarter, we continue to assist our clients manage their liquidity, including deposits, money market funds and short-term treasuries through the transition from a period of quantitative easing and low interest rates to one of rapid tightening and higher rates.

謝謝你，詹妮弗。讓我加入並歡迎您參加我們 2023 年第一季度的收益電話會議。最近銀行業的混亂提醒我們彈性的重要性，以便能夠在所有運營環境中滿足客戶的需求。在過去的 6 周里，就像在過去的 130 年裡一樣，我們強大的資產負債表和保守的風險管理方法使我們能夠提供客戶期望我們提供的支持、流動性和卓越的服務。正如我們的錨所象徵的那樣，北方信託繼續被視為力量和穩定的源泉。本季度，我們繼續協助客戶管理流動性，包括存款、貨幣市場基金和短期國債，從量化寬鬆和低利率時期過渡到快速收緊和加息時期。

Overall, we saw client liquidity increase during the quarter as the decline in deposits was more than offset by increases in higher-yielding money market funds. Our results for the first quarter reflect sequential improvement in revenue and expense growth. The sequential growth in trust fees outpaced a slight decrease in net interest income, which still experienced healthy year-over-year growth. Expense growth moderated from recent quarters, which was attributable to both our renewed spending discipline and certain timing differences.

總體而言，我們看到本季度客戶流動性有所增加，因為存款的減少被高收益貨幣市場基金的增加所抵消。我們第一季度的業績反映了收入和費用增長的連續改善。信託費用的環比增長超過淨利息收入的小幅下降，淨利息收入仍保持健康的同比增長。費用增長從最近幾個季度開始放緩，這歸因於我們更新的支出紀律和某些時間差異。

Within our Wealth Management business, assets under management grew mid-single digits sequentially, while our trust fees increased modestly. The turmoil in the banking space contributed to a flurry of new business activity later in the quarter. We saw solid new account openings, particularly at the upper end of the wealth market. We took in almost $1 billion in inflows from the $50 million in over segment alone, and discussions are continuing with a solid pipeline of prospective clients.

在我們的財富管理業務中，管理的資產環比增長了中等個位數，而我們的信託費用則小幅增長。銀行業的動盪促成了本季度晚些時候的一系列新業務活動。我們看到大量新開戶，尤其是在高端財富市場。我們僅從超過 5000 萬美元的細分市場就獲得了近 10 億美元的資金流入，並且正在繼續與大量潛在客戶進行討論。

In Asset Management, we had a strong start to the year with the sequential increase in new business, including large inflows into our institutional money market platform. New product launches focused on alternatives and extending securities lending capabilities in our collective fund space with 3 new funds launched. Within Asset Servicing, we saw continued momentum with particularly good traction in Europe. For example, during the quarter, we transitioned in Artemis Investment Management, a large U.K.-based investment manager for whom we are providing a full suite of services, including custody, fund administration, investment operations outsourcing, and risk and analytic services for both their U.K. and Luxembourg funds.

在資產管理方面，我們今年開局強勁，新業務連續增長，包括大量資金流入我們的機構貨幣市場平台。新產品發布的重點是另類投資，並在我們的集體基金領域擴展了證券借貸能力，推出了 3 只新基金。在資產服務領域，我們看到了持續的發展勢頭，尤其是在歐洲。例如，在本季度，我們過渡到 Artemis Investment Management，這是一家總部位於英國的大型投資管理公司，我們為其提供全套服務，包括託管、基金管理、投資運營外包以及風險和分析服務。英國和盧森堡基金。

In closing, we are well-positioned to continue to serve our clients and navigate the ongoing economic uncertainty from a position of strength. I'll now turn the call over to Jason.

最後，我們處於有利地位，可以繼續為我們的客戶提供服務，並從優勢地位應對持續的經濟不確定性。我現在將電話轉給傑森。

Thank you, Mike, and let me join Jennifer and Mike in welcoming you to our first quarter 2023 earnings call. Let's dive into the financial results of the quarter starting on Page 4. This morning, we reported first quarter net income of $334.6 million, earnings per share of $1.51, and our return on average common equity was 12.4%.

謝謝你，邁克，讓我和詹妮弗和邁克一起歡迎你參加我們 2023 年第一季度的收益電話會議。讓我們從第 4 頁開始深入了解本季度的財務業績。今天上午，我們報告第一季度淨收入為 3.346 億美元，每股收益為 1.51 美元，平均普通股回報率為 12.4%。

On a year-over-year basis, currency movements unfavorably impacted our revenue growth by approximately 100 basis points and favorably impacted our expense growth by approximately 130 basis points. On a sequential basis, currency movements favorably impacted our revenue growth by approximately 70 basis points and unfavorably impacted our expense growth by approximately 90 basis points.

與去年同期相比，匯率變動對我們的收入增長產生了約 100 個基點的不利影響，對我們的費用增長產生了約 130 個基點的有利影響。按順序計算，貨幣變動對我們的收入增長產生了大約 70 個基點的有利影響，對我們的費用增長產生了大約 90 個基點的不利影響。

Our first quarter results were also impacted by 2 notable items. One, we recognized a $6.9 million pre-tax gain on the securities repositioning we announced last quarter and executed in January. We recorded -- 2, we reported $9.8 million of pre-tax charges associated with various early lease terminations. Actions taken to further optimize our global real estate footprint. Notable items from previous periods are listed on the slide.

我們第一季度的業績也受到 2 個值得注意的項目的影響。第一，我們在上個季度宣布並於 1 月執行的證券重新定位中確認了 690 萬美元的稅前收益。我們記錄了——2，我們報告了 980 萬美元與各種提前終止租賃相關的稅前費用。為進一步優化我們的全球房地產足跡而採取的行動。幻燈片上列出了以前時期的著名項目。

Excluding the notable items in all periods, revenue was flat on a sequential quarter basis and up 1% over the prior year. Expenses were flat on a sequential quarter basis and up 6% over the prior year, reflecting an expense-to-trust fee ratio of 120%. Pre-tax income was down 2% sequentially and down 13% over the prior year.

排除所有期間的顯著項目，收入環比持平，比上年增長 1%。費用環比持平，比上年增長 6%，反映出費用與信託費用的比率為 120%。稅前收入環比下降 2%，比上年下降 13%。

Trust, investment and other servicing fees, representing the largest component of our revenue, totaled $1 billion and were down 9% from last year, but up 2% sequentially. Excluding notable items, we had year-over-year and sequential declines in all other non-interest income, which is primarily driven by lower foreign exchange trading income. We saw significantly reduced volumes in the first 2 months of the quarter with a modest pickup in March.

信託、投資和其他服務費用占我們收入的最大部分，總計 10 億美元，比去年下降 9%，但環比增長 2%。不包括值得注意的項目，我們所有其他非利息收入同比和環比下降，這主要是受外匯交易收入下降的推動。我們看到本季度前 2 個月的銷量顯著下降，3 月份略有回升。

Net interest income on an FTE basis, which I'll also discuss in more detail in a few moments, was $544 million, up 40% from a year ago, down 1% sequentially. Our provision for credit losses was $15 million for the first quarter, reflecting growth in the size and duration of the commercial real estate loan portfolio. Given the increased attention being placed in commercial real estate loans, we want to provide some detail we felt would be of interest.

基於 FTE 的淨利息收入為 5.44 億美元，比一年前增長 40%，環比下降 1%，稍後我將對此進行更詳細的討論。我們第一季度的信貸損失準備金為 1500 萬美元，反映了商業房地產貸款組合規模和期限的增長。鑑於商業房地產貸款受到越來越多的關注，我們想提供一些我們認為會感興趣的細節。

Commercial real estate loans comprised 12% of our total portfolio and commercial office loans comprised 2% of total loans. Approximately 95% of commercial real estate loans are personally guaranteed and approximately 70% have a loan-to-value ratio of less than or equal to 70%. Turning to our asset servicing results on Page 5.

商業房地產貸款占我們總投資組合的 12%，商業辦公貸款佔總貸款的 2%。大約 95% 的商業房地產貸款由個人擔保，大約 70% 的貸款價值比低於或等於 70%。轉向我們在第 5 頁上的資產服務結果。

Assets under custody administration for asset servicing clients were $13 trillion at quarter end, down 9% year-over-year but up 4% sequentially. Asset servicing fees totaled $603 million, which were also down 9% year-over-year, but up 3% sequentially. Custody and fund administration fees, the largest component of fees in the business were $414 million, down 9% year-over-year, but up 2% sequentially.

截至季度末，資產服務客戶的託管管理資產為 13 萬億美元，同比下降 9%，但環比增長 4%。資產服務費總計 6.03 億美元，也同比下降 9%，但環比增長 3%。託管和基金管理費是該業務中費用的最大組成部分，為 4.14 億美元，同比下降 9%，但環比增長 2%。

Custody and fund administration fees decreased from prior year quarter, primarily due to unfavorable markets and unfavorable currency translation. They increased sequentially due to favorable markets, favorable currency translation and solid new business activity, particularly later in the quarter. Transactional activity, which comprises approximately 15% of our custody and fund administration fees was generally weaker due to lower volumes and lower onetime fees.

託管和基金管理費用較上年同期有所下降，這主要是由於不利的市場和不利的貨幣換算。由於有利的市場、有利的貨幣換算和穩健的新業務活動，特別是在本季度後期，它們環比增長。交易活動約占我們託管和基金管理費用的 15%，由於交易量減少和一次性費用減少，總體表現較弱。

Assets under management for asset servicing clients were $962 billion, down 12% year-over-year, but up 7% sequentially. Investment management fees within Asset Servicing were $126 million, down 14% year-over-year, but up 2% sequentially. The Investment management fees decreased from the prior year quarter, primarily due to asset outflows in unfavorable markets, partially offset by lower money market fund fee waivers. Investment management fees increased sequentially due to favorable markets and favorable currency translation. Moving to our Wealth Management business on Page 6.

為資產服務客戶管理的資產為 9620 億美元，同比下降 12%，但環比增長 7%。資產服務部門的投資管理費為 1.26 億美元，同比下降 14%，但環比增長 2%。投資管理費較上年同期有所下降，這主要是由於不利市場中的資產外流，部分被較低的貨幣市場基金費用減免所抵消。由於有利的市場和有利的貨幣換算，投資管理費環比增加。轉到第 6 頁的財富管理業務。

Assets under management for our Wealth Management clients were $368 billion at quarter end, down 7% year-over-year, but up 5% on a sequential basis. Trust investment and other servicing fees were $461 million, down 9% compared to the prior year, but up 1% sequentially. Within both the regions and GFO, the year-over-year declines were primarily driven by unfavorable market impacts and product level asset outflows, partially offset by the elimination of money market fund fee waivers.

截至季度末，我們財富管理客戶的管理資產為 3680 億美元，同比下降 7%，但環比增長 5%。信託投資和其他服務費用為 4.61 億美元，比上年下降 9%，但環比增長 1%。在地區和 GFO 中，同比下降主要是由於不利的市場影響和產品層面的資產流出，部分被貨幣市場基金費用豁免的取消所抵消。

Sequentially, the increase within the regions in GFO was primarily driven by favorable markets, partially offset by product level asset outflows. The upturn we saw in our AUM occurred later in the quarter was not fully reflected in our trust fees. Importantly, we continue to see modest organic growth in our core advisory fees. Moving to Page 7 and our balance sheet and NII trends.

因此，GFO 區域內的增長主要是由有利的市場推動的，部分被產品層面的資產流出所抵消。我們在本季度晚些時候看到的 AUM 好轉並未完全反映在我們的信託費用中。重要的是，我們繼續看到核心諮詢費的適度有機增長。轉到第 7 頁以及我們的資產負債表和 NII 趨勢。

Given the attention being placed on balance sheet trends we also thought you might be interested in some additional data points this quarter. We think about client liquidity in 3 categories: deposits, money market funds and short-term treasuries. With that background, we can provide some color and data on what we saw throughout the quarter and through the first few weeks of April. Most importantly, client liquidity was up meaningfully for the quarter in both Asset Servicing and Wealth Management then it's continue to rise during the first 3 weeks of April.

鑑於對資產負債表趨勢的關注，我們還認為您可能對本季度的一些其他數據點感興趣。我們將客戶流動性分為三類：存款、貨幣市場基金和短期國債。在這種背景下，我們可以提供一些顏色和數據，說明我們在整個季度和 4 月的前幾週看到的情況。最重要的是，本季度資產服務和財富管理的客戶流動性顯著上升，然後在 4 月的前 3 周繼續上升。

While we saw a decline in deposits for the quarter, it was more than offset by increases in money market funds as clients continue to migrate into higher-yielding products. Relative to the fourth quarter, our money market funds were up $15 billion or 7%. As mentioned, average deposits were $112 billion, down 4% sequentially with wealth management deposits down 7% and institutional down 3%. Approximately 3/4 of our average deposits are institutional. Within this segment, approximately 68% are considered operational, the stickiest as clients use these funds to run their ongoing operations.

雖然我們看到本季度存款有所下降，但隨著客戶繼續轉向收益更高的產品，貨幣市場基金的增長足以抵消這一影響。與第四季度相比，我們的貨幣市場基金增加了 150 億美元或 7%。如前所述，平均存款為 1120 億美元，環比下降 4%，其中財富管理存款下降 7%，機構存款下降 3%。我們平均存款的大約 3/4 是機構存款。在這個細分市場中，大約 68% 被認為是可運營的，粘性最高，因為客戶使用這些資金來運行他們的持續運營。

Across the organization, we experienced a $2 billion decline in noninterest-bearing deposits as clients shifted to higher-yielding alternatives. This reduced the mix of noninterest-bearing deposits to 18%.

在整個組織中，隨著客戶轉向收益更高的替代品，我們的無息存款減少了 20 億美元。這將無息存款的組合減少到 18%。

We actively manage our assets and liabilities considering a wide range of possible stress scenarios, including interest rate risks and how they may affect liquidity and capital. So let's shift to the asset side of the balance sheet to see how investments are allocated. Average cash held at the Fed and other central banks was up 12% to $37 billion and we had $67 billion of immediately available liquidity, reflecting approximately 50% of average earning assets.

考慮到各種可能的壓力情景，包括利率風險及其對流動性和資本的影響，我們積極管理我們的資產和負債。因此，讓我們轉到資產負債表的資產方面，看看投資是如何分配的。美聯儲和其他中央銀行持有的平均現金增長了 12%，達到 370 億美元，我們擁有 670 億美元的即時可用流動性，約占平均盈利資產的 50%。

Loan balances averaged $42 billion and were down 1% sequentially. Our loan portfolio is well-diversified across geographies, operating segments and loan types. Approximately 75% of the portfolio is floating and the overall duration is less than 1 year.

貸款餘額平均為 420 億美元，環比下降 1%。我們的貸款組合在地域、運營部門和貸款類型上非常多樣化。大約 75% 的投資組合是浮動的，總久期不到 1 年。

Securities were down 3% sequentially, reflecting the impact of both our repositioning early in the quarter and the natural runoff, which we've chosen to reinvest at the short end of the curve. Our $49 billion investment portfolio consists largely of highly liquid U.S. treasury, agency and sovereign wealth fund bonds, and is split 50-50 between available for sale and held to maturity.

證券連續下跌 3%，反映了我們在本季度初重新定位和自然流失的影響，我們選擇在曲線的短端進行再投資。我們 490 億美元的投資組合主要由高流動性的美國國債、機構和主權財富基金債券組成，可供出售和持有至到期的比例為 50-50。

In the aggregate, the securities portfolio has a duration of 2.3 years. The total balance sheet duration is 1.1 year. Net interest income was $544 million for the quarter, up 40% from the prior year and down 1% sequentially. NII reflected the impact of several dynamics, many occurring late in the quarter. As mentioned, we saw continued improvement in deposits from our balance sheet to money market funds and treasuries.

總的來說，證券組合的久期為 2.3 年。資產負債表的總期限為 1.1 年。本季度淨利息收入為 5.44 億美元，較上年同期增長 40%，環比下降 1%。 NII 反映了幾種動態的影響，其中許多發生在本季度末。如前所述，我們看到從資產負債表到貨幣市場基金和國庫券的存款持續改善。

Deposit cost increased with our interest-bearing deposit beta during the quarter at 85% and our cumulative data for the cycle as of March 31 of 65%. And finally, we had the impact from 2 fewer days in the quarter. Net interest margin was 1.62% in the quarter, up 57 basis points from a year ago and roughly flat with the prior quarter. The sequential results reflect the impact of higher short-term market rates, offset by higher funding costs. The prior year increase is primarily due to higher average interest rates.

本季度我們的計息存款貝塔係數為 85%，而我們截至 3 月 31 日的周期累計數據為 65%，存款成本有所增加。最後，我們受到了本季度減少 2 天的影響。本季度淨息差為 1.62%，同比上升 57 個基點，與上一季度基本持平。連續結果反映了較高的短期市場利率的影響，但被較高的融資成本所抵消。前一年的增長主要是由於較高的平均利率。

For the second quarter, our NII will continue to be driven by client demand which is less predictable than it was 90 days ago. Our average client deposits thus far in the quarter are approximately $110 billion. And subsequent to tax season, we've observed an incremental typical decline of a few billion dollars.

對於第二季度，我們的 NII 將繼續受到客戶需求的推動，這比 90 天前更不可預測。本季度迄今為止，我們的平均客戶存款約為 1100 億美元。在稅收季節之後，我們觀察到數十億美元的增量典型下降。

Turning to Page 8. As reported, noninterest expenses were $1.3 billion in the first quarter, 7% higher than the prior year, but 3% lower sequentially. Excluding charges in both periods, as noted on the slide, expenses in the first quarter were up 6% year-over-year but flat sequentially. Overall, we're focused on reducing the rate of expense growth and controlling those costs that are most under our control. I'll hit on just a few highlights.

翻到第 8 頁。據報導，第一季度非利息支出為 13 億美元，比去年同期增長 7%，但環比下降 3%。如幻燈片所示，不包括這兩個時期的費用，第一季度的費用同比增長 6%，但環比持平。總的來說，我們專注於降低費用增長率並控制那些我們最能控制的成本。我將重點介紹幾個要點。

Compensation and technology expense continue to be the areas of highest spend. Compensation expense, excluding charges, was up 6% compared to the prior year and up 7% sequentially. The year-over-year growth largely reflects the annualization of last year's headcount expansion and inflationary wage pressure, partially offset by lower incentives. The sequential increase is due to our annual payment of retirement-eligible equity incentives in the first quarter.

薪酬和技術費用仍然是支出最高的領域。不包括費用的薪酬支出比上年增長 6%，環比增長 7%。同比增長在很大程度上反映了去年員工人數擴張和工資通脹壓力的年化，部分被較低的激勵措施所抵消。環比增長是由於我們在第一季度每年支付符合退休條件的股權激勵。

Equipment and software largely reflecting our technology spend, was up 20% year-over-year, but up 1% sequentially. More than 50% of our spend is comprised of business-driven investment followed by spending on core infrastructure and modernization and to a lesser extent, spending on information security, risk and regulatory areas. Turning to Page 9.

主要反映我們技術支出的設備和軟件同比增長 20%，但環比增長 1%。我們超過 50% 的支出由業務驅動的投資組成，其次是核心基礎設施和現代化方面的支出，較小程度上是信息安全、風險和監管領域的支出。翻到第 9 頁。

Our capital ratios improved in the quarter and continue to be well above our required regulatory minimum. Our common equity Tier 1 ratio under the standardized approach was up 50 basis points from the prior quarter to 11.3%, despite resuming common stock repurchases. This reflects a 430 basis point buffer above our regulatory requirements.

我們的資本比率在本季度有所改善，並繼續遠高於我們要求的最低監管要求。儘管恢復了普通股回購，但我們在標準方法下的普通股一級比率比上一季度上升了 50 個基點，達到 11.3%。這反映出比我們的監管要求高出 430 個基點的緩衝。

As a reminder, as a Category 2 Institution under the Federal Reserves framework, we already include unrealized losses on our available-for-sale securities in this calculation. Thus, mark-to-market losses occur immediately in our capital and capital ratios. Our Tier 1 leverage ratio was 7.3%, up 20 basis points from the prior quarter. Higher net income, improved accumulated other comprehensive income, the securities repositioning and lower loan balances were the primary factors in this quarter's increase in capital ratios.

提醒一下，作為美聯儲框架下的第 2 類機構，我們已將可供出售證券的未實現損失計入此計算。因此，按市值計價的損失會立即出現在我們的資本和資本比率中。我們的一級槓桿率為 7.3%，比上一季度上升 20 個基點。較高的淨收入、改善的累計其他綜合收入、證券重新定位和較低的貸款餘額是本季度資本比率增加的主要因素。

We returned $259 million to common shareholders in the quarter through cash dividends of 159 million and after pausing meaningful share buybacks for the prior 5 quarters, we repurchased over $100 million of common stock. And with that, Cynthia, please open the line for questions.

我們在本季度通過 1.59 億美元的現金股息向普通股股東返還了 2.59 億美元，並且在前 5 個季度暫停有意義的股票回購後，我們回購了超過 1 億美元的普通股。辛西婭，請打開問題熱線。

(Operator Instructions) And we will take our first question from Betsy Graseck with Morgan Stanley.

（操作員說明）我們將與摩根士丹利一起回答 Betsy Graseck 的第一個問題。

Really great quarter. Thanks for all the detail and the incremental information here. I did just want to understand how you're thinking about managing the balance sheet in an environment where deposits are under pressure, even though it might be modest. I think you indicated that average deposits [Q-to-date] is around 110 and that's down around 3% from last quarter, I believe. So just wanted to understand how you're thinking about that.

真的很棒的季度。感謝此處提供的所有詳細信息和增量信息。我只是想了解您如何考慮在存款面臨壓力的環境中管理資產負債表，儘管壓力可能不大。我認為你表示平均存款 [Q-to-date] 約為 110，我相信這比上一季度下降了約 3%。所以只是想了解您的想法。

Sure. The most important thing, and you referenced it, is that it's just -- it's an uncertain environment. And although we've got -- we have over $50 billion in what we refer to as economic liquidity, which is the cash we have on hand at the Fed here and central banks around the world, and also the short-term securities we have, so that provides a ton of liquidity. But the environment is just uncertain. And so on -- in some ways, we want to just maintain as much liquidity as possible and not be greedy. And on the other side, the balance sheet is always available for clients and we -- particularly from a liquidity perspective. And that means we want to leave plenty of room for clients that either want to deposit with us or also might need lending from us. And so these uncertain times just call for maximum patience for us and maximum flexibility so that we can be available for whatever our clients want.

當然。最重要的是，你提到了它，它只是 - 這是一個不確定的環境。儘管我們有——我們擁有超過 500 億美元的經濟流動性，這是我們手頭在美聯儲和世界各地中央銀行的現金，以及我們擁有的短期證券，因此提供了大量的流動性。但環境只是不確定的。等等——在某些方面，我們只想保持盡可能多的流動性，而不是貪婪。另一方面，資產負債表始終可供客戶和我們使用——尤其是從流動性的角度來看。這意味著我們希望為想要存款或可能需要我們貸款的客戶留出足夠的空間。因此，這些不確定的時期只需要我們最大的耐心和最大的靈活性，這樣我們就可以滿足客戶的任何需求。

And just as a follow-up to that, could you help us understand how you're thinking about the loan book going forward because to the extent there is demand, it seems like you've got a decent amount of capacity there.

作為後續行動，您能否幫助我們了解您對未來貸款簿的看法，因為在需求範圍內，您似乎有相當大的容量。

Sure. Yes, you're right. There's a -- as you think about this effectively, the securities book at $50 billion acts as the ultimate fulfillment of -- and completion mechanism in the balance sheet. We couldn't do all of that with loans, but we certainly have capacity to do a lot more but it's always going to start from our perspective with maintaining prudent credit quality and approach. And then working -- the best thing we can do is work with existing clients on existing types of loans. And so that's why a couple of years ago, you heard us talk about an initiative to do more lending, we did that. That was very largely with existing clients.

當然。你是對的。有一個 - 正如你有效地考慮的那樣，500 億美元的證券賬簿作為資產負債表中的最終實現和完成機制。我們不能用貸款來做所有這些，但我們當然有能力做更多，但總是從我們的角度出發，保持審慎的信貸質量和方法。然後工作——我們能做的最好的事情就是與現有客戶就現有類型的貸款進行合作。這就是為什麼幾年前，你聽到我們談論一項增加貸款的倡議，我們就這樣做了。這主要是針對現有客戶。

From here forward, we're not looking to having any initiatives to dramatically increase the loan book. It's -- from our perspective, it's responding to clients as they need in different categories. And but the turmoil that we're looking at, it does provide opportunities. If you look at the -- if you look internally at the opportunity set we have, there's a lot of opportunity. And so we have to be thoughtful about how to grow and with what clients or prospects we want to grow, but this is a period where there are opportunities out there.

從現在開始，我們不希望採取任何舉措來大幅增加貸款賬簿。它 - 從我們的角度來看，它正在響應客戶在不同類別中的需求。但我們所看到的動盪確實提供了機會。如果你看看——如果你從內部看看我們擁有的機會集，就會發現有很多機會。因此，我們必須考慮如何發展以及我們希望發展哪些客戶或潛在客戶，但這是一個充滿機遇的時期。

We will take our next question from Alex Blostein with Goldman Sachs.

我們將接受來自高盛的 Alex Blostein 的下一個問題。

So I was hoping we could start with opportunities you guys are seeing in the wealth channel on the back of the dislocation in the banking space. Mike, you mentioned obviously a flurry of activity towards the end of the quarter. Can you maybe help us frame what that means in terms of maybe revenues and I guess, zooming out a little bit, does what has been happening and I guess, continues to happen in the banking world, does that increase your kind of organic growth prospects and to what extent in the wealth channel?

所以我希望我們可以從你們在銀行業領域錯位的背景下在財富渠道中看到的機會開始。邁克，你顯然提到了本季度末的一系列活動。您能否幫助我們確定收入方面的含義，我想，縮小一點，做已經發生的事情，我想，在銀行業繼續發生，這是否會增加您的有機增長前景又在多大程度上處於財富通道中？

Sure, Alex. So as I did mention, there has been a lot of activity. And as we've talked about before, when there's more money in motion, we do have the opportunity to grow a little bit faster. And so we did see that pick up in the first quarter after the back half of last year, where we talked about the fact that there was less activity as a result of the interest rate environment. That said, this is something where the nature of the clients that we serve and that we work with and that we look to bring on board are pretty meaningful. And so it's a longer-term process and, I would say, business building process than what I would call a sales process to do that.

當然，亞歷克斯。正如我剛才提到的，有很多活動。正如我們之前談到的，當有更多資金流動時，我們確實有機會增長得更快一點。因此，我們確實在去年下半年之後的第一季度看到了這種回升，當時我們談到了利率環境導致活動減少的事實。就是說，這是我們所服務的客戶的性質以及我們與之合作以及我們希望加入的客戶的性質非常有意義的事情。所以這是一個長期的過程，我想說，業務建立過程比我稱之為銷售過程的過程要多。

I mentioned some of the momentum that we saw in the upper part of the market above $50 million. And the fact that we have a lot of prospects in that area as well. So we see this more as, I would say, a longer running opportunity rather than a 1 quarter, 2 quarter opportunity. And that's how we're approaching it.

我提到了我們在 5000 萬美元以上的市場上部看到的一些勢頭。事實上，我們在該領域也有很多前景。因此，我認為這更多地是一個運行時間更長的機會，而不是 1 個季度、2 個季度的機會。這就是我們接近它的方式。

Got it. Great. And then my follow-up just around deposits and talk about this common tax season for the extra detail. So 110 average so far in April, and it sounds like maybe down a little bit more on the back of the tax season where things are standing now. What's the mix, I guess, between interest-bearing and noninterest-bearing balances and the way you guys see it right now in April? And when it comes to the wealth deposits in particular, it sounds like they were down a little bit more the institutional in the quarter. So I guess, as you think about rolling forward, what's the approach to the rate you guys are paying of wealth deposits from here since it seems like a lot of it is ultimately still sorting into money market funds.

知道了。偉大的。然後我的後續行動圍繞存款進行，並討論了這個常見的稅收季節以獲取額外的細節。所以 4 月份到目前為止的平均值為 110，而且在目前的稅收季節結束後，聽起來可能會下降一點。我想，生息餘額和非生息餘額之間的組合是什麼，以及你們現在在 4 月份的看法？特別是談到財富存款時，聽起來它們在本季度的機構下降幅度更大一些。所以我想，當你考慮向前推進時，你們從這裡支付財富存款的利率是多少，因為看起來很多財富最終仍在分類到貨幣市場基金中。

Sure. So let me give you a couple of incremental data points to work with. One, you're right. We -- and it's typical, obviously, as you know well, Alex, for us to see a drop after the peak of tax season. And so it has come down a few in the range of $4 billion or $5 billion since that average -- relative to that average. And that said, we -- from a mix perspective, not seeing anything dramatically different early on. And we talked about the fact that the noninterest-bearing mix is higher than even it was last time rates were up. But as rates flatten out, probably less incremental shift from that mix.

當然。所以讓我給你幾個增量數據點來使用。一，你是對的。我們 - 很明顯，正如你所知，亞歷克斯，我們在稅收旺季過後看到下降。因此，相對於該平均值，它已經下降了 40 億美元或 50 億美元。也就是說，我們 - 從混合的角度來看，早期沒有看到任何顯著不同。我們談到了一個事實，即無息組合甚至比上次利率上升時還要高。但隨著利率趨於平穩，這種組合的增量轉變可能會減少。

And then within wealth, in particular, Mike mentioned the growth there. And you're exactly right in calling out a lot of it going to cash. And I mentioned that there's a lift overall in client liquidity. So of the lift that we've seen in cash, about $5 billion of that was in the wealth channel alone over the quarter. And so -- and that more than offsets the deposit decline that we saw in that channel. And so you just get a sense that the flows in that business are positive and give us a sense that there's good activity there.

然後在財富方面，邁克特別提到了那裡的增長。你把很多錢變現是完全正確的。我提到客戶流動性總體上有所提升。因此，在我們看到的現金增長中，本季度僅財富渠道就有約 50 億美元。所以 - 這遠遠抵消了我們在該渠道看到的存款下降。因此，您只會感覺到該業務的流動是積極的，並讓我們感覺到那裡有很好的活動。

Got you. Sorry. And just what's the rate on the wealth deposit that you guys are paying right now?

明白了對不起。你們現在支付的財富存款利率是多少？

It's highly dependent. It varies by size, by region, by type. And so it's hard to give a -- it's impossible to give a specific number on it. But if you look at the -- what might be instructive as you're thinking about it is more of an overall average cost across the book, which is, call it, 200 to 250 basis points.

這是高度依賴的。它因大小、地區、類型而異。所以很難給出一個——不可能給出一個具體的數字。但是，如果你看一下——你正在考慮的可能更有啟發性的是整本書的總體平均成本，也就是 200 到 250 個基點。

And Alex, I would just add that there's no question with whatever -- with everything that's happened here that the market for deposits is more competitive. So there's more price competition with lots of banks looking to retain or gain deposits and pricing aggressively to do that. Of course, we have to -- likewise, price to make them attractive for our clients. But at a certain point, if it's just going to get priced away -- on price as opposed to relationships, then you're going to see some go away.

亞歷克斯，我只想補充一點，毫無疑問，這裡發生的一切都表明存款市場更具競爭力。因此，價格競爭更加激烈，許多銀行希望保留或獲得存款，並為此積極定價。當然，我們必須——同樣地，定價以使其對我們的客戶具有吸引力。但在某個時候，如果它只是被定價——在價格而不是關係上，那麼你會看到一些消失。

And just more broadly on deposits, it's just, I think, important to understand the nature of our client base, which you know well, but just asset owners, asset managers, wealth clients, that have different characteristics than a lot of other institutions. Certainly, on the operational side, these are deposits that they have as a part of running their operations. And so very sticky in the sense that it's based on transaction flows rather than necessarily rate per se. And on the other hand, these are institutions that are evaluated based on their performance. And so when rates go up as fast as they have here, they have to make sure they're earning returns overall.

更廣泛地說，在存款方面，我認為，重要的是要了解我們客戶群的性質，你很清楚，但只是資產所有者、資產管理者、財富客戶，它們與許多其他機構具有不同的特徵。當然，在運營方面，這些是他們作為運營業務一部分的存款。從某種意義上說，它非常粘，因為它是基於交易流量而不是利率本身。另一方面，這些機構是根據其績效進行評估的。因此，當利率像這裡一樣快速上漲時，他們必須確保獲得總體回報。

So they're looking to be efficient. And with our wealth clients as well. We're working with them to make sure that they get attractive returns overall. So a lot of dynamics at play. And I think it's Important to understand the characteristics of our client base relative to others.

所以他們希望提高效率。還有我們的財富客戶。我們正在與他們合作，以確保他們獲得有吸引力的整體回報。所以有很多動態在起作用。我認為了解我們客戶群相對於其他客戶群的特徵很重要。

We will take our next question from Steven Chubak with Wolfe Research.

我們將接受 Wolfe Research 的 Steven Chubak 的下一個問題。

So I wanted to start off with a question on the noncomps. Looking at the component pieces, you guys made some good progress there. A good amount of the beat was really in outside services. I know that, that has a heavy variable or activity linked component. Should we expect that to normalize as activity levels pick up consistent with what you saw at the end of March? Just trying to think about what's a reasonable jumping off point for us to be modeling for next quarter?

所以我想從一個關於非補償的問題開始。看看組件，你們在那裡取得了一些不錯的進展。大量的節拍實際上是在外部服務中。我知道，它有一個很大的變量或活動鏈接組件。我們是否應該期望隨著活動水平的回升與您在 3 月底看到的一致，這種情況會正常化？只是想想想我們為下個季度建模的合理起點是什麼？

Yes, absolutely. You're right in that, that line item can move around a lot. So let me give you a short-term and then maybe a longer-term dynamic. In the short run, that line item was impacted by, call it, 2 things. One, some timing. So we know that there's some of that improvement will likely come back online in second quarter. And then secondly, we've taken expense actions in that category. And so we worked really hard to work down consulting, to work down other tech services sub-custody, negotiating hard on third-party advisory fees.

是的，一點沒錯。你是對的，那個訂單項可以移動很多。所以讓我給你一個短期的，然後可能是一個長期的動態。在短期內，該訂單項受到兩件事的影響。一，一些時機。所以我們知道，其中一些改進可能會在第二季度重新上線。其次，我們在該類別中採取了支出行動。因此，我們非常努力地開展諮詢業務，開展其他技術服務分託管業務，就第三方諮詢費進行艱苦談判。

And so some of it definitely is related to the expense measures that we talked about, broadly related to the productivity office, but there's also some timing there, too. And so as you think about second quarter, this is an area where you'll see a meaningful increase, call it, $20 million just quarter-over-quarter going to next year. About $5 million of that is just a movement from on-premise processing that would show up in equipment and software moving up into outside services. But there's also just business growth and timing related there as well. We're obviously not going to see $20 million lift consistently, but that's one where we're likely to see one going into second quarter.

因此，其中一些肯定與我們談到的費用措施有關，廣泛與生產力辦公室有關，但也有一些時間安排。因此，當您考慮第二季度時，您會在這個領域看到有意義的增長，稱其為明年的季度環比增長 2000 萬美元。其中約 500 萬美元只是從設備和軟件中出現的內部處理轉移到外部服務。但也只有業務增長和時間相關。我們顯然不會持續看到 2000 萬美元的增長，但這是我們可能會看到第二季度的增長。

Got it. And just for my follow-up on NII. I know you had alluded to this in some of your commentary, and I'll also echo I appreciate the additional detail on the deposit side. There's been some debate previously as to whether NII or NIM had peaked at this juncture, whether it could eclipse level seen last cycle. I was hoping you could give some perspective just on the NII trajectory. If it's peaked at this juncture or if there's room for growth, and given the balance sheet repositioning you alluded to in terms of shortening the duration on the asset side, how we should think about the NII trajectory in a Fed easing cycle, in particular, would be really helpful.

知道了。只是為了我對 NII 的跟進。我知道你在你的一些評論中提到了這一點，我也很感激存款方面的額外細節。之前有一些關於 NII 或 NIM 是否在此時達到頂峰，是否會超過上一個週期的水平的爭論。我希望你能就 NII 的發展軌跡給出一些看法。如果它在這個時候達到頂峰，或者如果有增長空間，並且考慮到你提到的資產負債表重新定位，即縮短資產端的久期，我們應該如何考慮美聯儲寬鬆週期中的 NII 軌跡，特別是，真的很有幫助。

Sure. So on the first, the reality is even this quarter, you could see there was a new factor introduced into NII, which is just client preference. And you can see just how often even this morning on this call, we don't talk about just deposits in isolation. We talk about them in conjunction with money market funds. And part of that is that culturally, we have an incredibly strong focus just on providing advice to clients across whatever is appropriate for them. And there are advantages to being in deposits. There are advantages to being in money market funds, there are advantages to being in short-term treasuries. And we think about that -- we track inside the company, that's what we were looking at very, very closely on a very periodic -- on a very frequent periodic basis. And so I think that's important for people to understand. We're not nudging clients in one direction or the other, just talking to them about the advantages of each.

當然。因此，首先，即使在本季度，您也可以看到 NII 中引入了一個新因素，即客戶偏好。你可以看到，即使是今天早上，在這個電話會議上，我們也不只是孤立地談論存款。我們將它們與貨幣市場基金一起討論。部分原因是在文化上，我們非常專注於為客戶提供適合他們的建議。存款有很多好處。持有貨幣市場基金有優勢，持有短期國債也有優勢。我們考慮到這一點——我們在公司內部進行跟踪，這是我們非常、非常定期地密切關注的——非常頻繁地定期進行。所以我認為這對人們理解很重要。我們不會在一個方向或另一個方向推動客戶，只是與他們討論每個方向的優勢。

And so the reality is from here, NII is going to be based on more than on interest rates, it's going to be based on volumes. And volumes last quarter, we were talking about the impact of QT and we were talking about taxes. Now this new factor that's been introduced is what is client preference between those 3 pillars of client liquidity. And we could see that going in either direction. And for us, that's totally fine as long as we're continuing to grow client liquidity. And so it's hard to model in the short run, but if we think about the traditional factors, Fed rate increases, the institutional business, which is, call it, 75 -- 70% to 80% of our deposits, we're at about 100% beta there. And that's kind of flattened out.

因此，現實情況是，NII 將不僅僅基於利率，還將基於交易量。上個季度的銷量，我們在談論 QT 的影響，我們在談論稅收。現在引入的這個新因素是客戶流動性三大支柱之間的客戶偏好。我們可以看到它朝任何一個方向發展。對我們來說，只要我們繼續增加客戶流動性，那完全沒問題。因此很難在短期內建模，但如果我們考慮傳統因素，美聯儲加息，機構業務，也就是我們存款的 75-70% 到 80%，我們處於那里大約有 100% 的測試版。這有點扁平化了。

In the wealth channel, the betas are meaningfully lower. They're, call it, 30% to 40%. And so still with Fed action because that's all impacted in U.S. dollars, there's benefit from that lift step. And then you've got to introduce the other factors, what happens with QT and then what happens with client preference across the pillars

在財富通道中，貝塔值顯著降低。他們是，稱之為，30% 到 40%。美聯儲的行動仍然如此，因為這一切都以美元為單位受到影響，這一舉措會帶來好處。然後你必須介紹其他因素，QT 會發生什麼，然後跨支柱的客戶偏好會發生什麼

And then from a NIM perspective, just the last comment I'll make is that we -- you saw our leverage ratio is strong, and it's in the mid-7s. And it gives us an opportunity if we want to take advantage if there's a positive carry to do more leveraging and still maintain great liquidity for our clients. That's helpful to NII, but it's obviously, it brings down NIM.

然後從 NIM 的角度來看，我最後要說的是我們——你看到我們的槓桿率很高，而且在 7 年代中期。如果我們想利用積極的利差來做更多的槓桿作用並仍然為我們的客戶保持良好的流動性，這給了我們一個機會。這對 NII 有幫助，但很明顯，它降低了 NIM。

We will take our next question from Mike Mayo with Wells Fargo Securities.

我們將從 Mike Mayo 和 Wells Fargo Securities 那裡回答下一個問題。

You mentioned taking tougher actions on expenses. I think that showed quarter-over-quarter. You mentioned benefits from the industry dislocation but your expense-to-fee ratio is still -- still above your 105% to 110% range, quite a bit above. So when do you think you'll get there? And -- should we look at the quarter-over-quarter progression or should we think about year-over-year because quarter-to-quarter looks better than year-over-year.

你提到對支出採取更嚴厲的行動。我認為這顯示了季度環比。你提到了行業錯位帶來的好處，但你的費用與費用比率仍然——仍然高於你的 105% 到 110% 的範圍，高出很多。那麼你認為你什麼時候會到達那裡？而且 - 我們應該看看季度環比進展還是我們應該考慮同比，因為季度環比看起來比去年同期更好。

Yes, Mike, I would say that our perspective is the same in the sense of -- we're looking, I'll call it sequentially and quarter-over-quarter and looking to make improvement in that and getting there both on the numerator and the denominator. So holding tight and trying to reduce where we can on the expense side and then growing the fee side as we go through there. And as you've seen, if you look at it sequentially there, we kind of bottomed out with the fees in the fourth quarter, and now they're up very, very slightly. But then depending on markets, but then more importantly, how we drive organic growth underneath that. We're looking to increase fees as we go forward on a sequential basis, while at the same time having discipline on the expense side to keep bringing that expense-to-trust fee ratio down.

是的，邁克，我想說我們的觀點在某種意義上是相同的——我們正在尋找，我將按順序和逐個季度稱之為它，並希望在這方面做出改進並在分子上實現目標和分母。因此，緊緊抓住並嘗試減少我們可以在費用方面的地方，然後在我們通過那裡時增加費用方面。正如你所看到的，如果你在那裡按順序看，我們在第四季度的費用已經觸底，現在它們上漲得非常非常小。但隨後取決於市場，但更重要的是，我們如何推動有機增長。我們希望在連續推進的過程中增加費用，同時在費用方面有紀律，以不斷降低費用與信託費用的比率。

We will take our next question from Glenn Schorr with Evercore.

我們將接受 Evercore 的 Glenn Schorr 的下一個問題。

Question on the other borrowing side. I think most of that is wholesale funding. And I know it's not a huge number, but it's also grown to be not nothing. It's up 43%. And and the rate paid on that is up 450 basis points. So I'm just looking for, is that a temporary filling of the gap of the gap down in deposits? How do you think about that line item intermediate term, say, I know you got to do what you got to do in the short term.

借方的問題。我認為其中大部分是批發資金。我知道這不是一個很大的數字，但它也已經成長為並非一無是處。上漲了 43%。而且為此支付的利率上升了 450 個基點。所以我只是在尋找，這是臨時填補存款缺口的缺口嗎？你如何看待那個項目中期，比如說，我知道你必須在短期內做你必須做的事情。

Yes. No, part of it is the higher borrowing. But part of it is that interest is doing more in the -- I think part of the reason that the cost of that is elevated is -- us doing more FICC Repo for clients and just providing more liquidity options for them. And the way the accounting works for that with the netting it just leads to a high -- it makes it look like a higher cost than what it is. And so we're going to talk about whether maybe even to break that out separately and provide more detail in the future on it because it's becoming to your exact point. It's just becoming a little bit larger, but that's the reason you see that movement in the short run.

是的。不，其中一部分是更高的借款。但部分原因是利息在——我認為成本升高的部分原因是——我們為客戶做更多的 FICC 回購，並為他們提供更多的流動性選擇。會計處理淨額結算的方式只會導致高成本——它看起來比實際成本更高。因此，我們將討論是否可能甚至將其單獨分解並在未來提供更多詳細信息，因為它正在成為您的確切觀點。它只是變得更大了一點，但這就是你在短期內看到這種運動的原因。

Okay. Yes, that would be helpful. It's -- because then it's actually a distraction for you. Okay. And then maybe big picture, you talked about capturing client liquidity and you talk about more holistically than you have in the past as money trends to money markets and treasuries. How much of it -- is it advised versus clients just self-selecting in -- and are there things that you could -- that you're tracking to see what you're actually capturing? In other words, is it actually your dollars from deposits going into your money market funds as opposed to pluses and minuses come from different directions?

好的。是的，那會很有幫助。它是——因為它實際上會讓你分心。好的。然後也許是大局，你談到了獲取客戶流動性，你比過去更全面地談論貨幣市場和國債的貨幣趨勢。其中有多少 - 是建議還是客戶只是自行選擇 - 以及你可以跟踪的東西有多少 - 你正在跟踪以查看你實際捕獲的內容？換句話說，實際上是你的美元從存款中進入你的貨幣市場基金，而不是來自不同方向的正負嗎？

Sure. So a couple of thoughts. One, it's -- we're much more accurate in being able to track the money market fund than we are treasuries. And let me just give an example or two to illustrate what -- why that's the case. We could, and we actually did have a small number of very large institutional clients that might have said, "a quarter ago, we'd just like to park some money on the balance sheet. We'd work with them on what rate that is. And then they might say, for a variety of reasons, we want to go to short-term treasuries. If they do that, they might use -- if it's a financial services fund, it could be a hedge fund, it could be an asset manager. If they have a prime broker, they're more likely to use their prime broker to manage that. Is that really -- it's certainly not us losing a lot of net interest income because the pricing on the deposit is going to be really tight, but difficult for us to track and really confirm where that's going.

當然。所以有幾個想法。第一，它是——我們在追踪貨幣市場基金方面比我們追踪國庫券要準確得多。讓我舉一兩個例子來說明——為什麼會這樣。我們可以，實際上我們確實有少數非常大的機構客戶可能會說，“一個季度前，我們只想在資產負債表上存一些錢。我們會與他們合作，以什麼利率是。然後他們可能會說，出於各種原因，我們想購買短期國債。如果他們這樣做，他們可能會使用 - 如果它是金融服務基金，它可能是對沖基金，它可能成為一名資產經理。如果他們有主要經紀人，他們更有可能使用他們的主要經紀人來管理它。那真的是 - 這肯定不是我們損失大量淨利息收入，因為存款定價正在上漲真的很緊，但我們很難追踪並真正確認它的發展方向。

The other end of the spectrum is in wealth management, financial advisers are literally calling their clients and saying rates are higher. You're sitting on $750,000 in cash. Let's talk about what you'd like to do with that. Would you like to move that into a money market fund? Would you like to move it into a CD? Would you like to start building out and ladder a treasury portfolio? We can track that much more accurately. And so different components, but in general, we're -- the statistics that we gave are biased toward the information that we can track and that we know stayed in-house. And so if there's an information bias, it's toward us ensuring that the numbers were telling you are reflective of what stayed here.

另一端是財富管理，財務顧問實際上是在打電話給他們的客戶，說利率更高。你坐擁 750,000 美元的現金。讓我們談談您想用它做什麼。你想把它變成貨幣市場基金嗎？您想將其移動到 CD 中嗎？您想開始構建和構建資金組合嗎？我們可以更準確地跟踪它。如此不同的組成部分，但總的來說，我們 - 我們提供的統計數據偏向於我們可以跟踪的信息，並且我們知道這些信息留在內部。因此，如果存在信息偏差，那就是我們要確保告訴您的數字反映了留在這裡的內容。

We will take our next question from Brian Bedell with Deutsche Bank.

我們將接受來自德意志銀行的 Brian Bedell 的下一個問題。

Maybe just staying on the -- for my first question, just to stay on the deposit trends. And the question would be -- as you think about that deposit pricing strategy in the wealth channel, specifically, how do you view raising those deposit rates versus the alternatives? I guess at what point would you be inclined to just let the deposits go into the money funds or into the ladders or rather you would raise rates incrementally to sort of keep those wealth deposits on the balance sheet?

也許只是停留在 - 對於我的第一個問題，只是停留在存款趨勢上。問題是——當你考慮財富渠道中的存款定價策略時，具體來說，你如何看待提高這些存款利率而不是其他選擇？我想在什麼時候你會傾向於讓存款進入貨幣基金或進入階梯，或者你會逐步提高利率以將這些財富存款保留在資產負債表上？

Sure. So the -- in each of the businesses, there are pricing groups that set an overall rate but there are also leaders within the regions and then down to relationship managers that have the ability to work at individual client levels to do what's right. And -- so we're always thinking about what is our overall pricing relative to peers by geographical region within wealth management even. But then there are times when there are very large clients that might come with $50, $100, $250 million, and that's obviously not going to be priced off of a rate sheet. We're going to talk about that.

當然。因此，在每項業務中，都有定價組來設定總體費率，但區域內也有領導者，然後是關係經理，他們有能力在各個客戶層面開展工作，做正確的事。而且 - 所以我們一直在考慮我們在財富管理中按地理區域相對於同行的整體定價是多少。但有時會有非常大的客戶可能會帶來 50 美元、100 美元、2.5 億美元，而這顯然不會從費率表中定價。我們將討論那個。

And the overall bias when we're having conversations with clients, again, when we're talking about what to do and if they're going to keep a deposit. Looking at us versus competition, they just keep it on our platform. And so even though we've thrown out the beta in that 30% to 40% range, and that may seem light it's -- we're looking at where the market is and making sure that the balance sheet, again, is available. And making sure that we're not cannibalizing the whole base of deposits in order to pick up some volume. But obviously, and we've talked about it from the beginning, our strategic bias in wealth for deposits is keep the business on our platform.

當我們再次與客戶交談時，當我們談論該怎麼做以及他們是否要保留押金時，總體上存在偏見。看看我們與競爭對手，他們只是把它放在我們的平台上。因此，即使我們已經放棄了 30% 到 40% 範圍內的貝塔值，而且這似乎很輕——我們正在研究市場在哪裡，並再次確保資產負債表可用。並確保我們不會為了增加一些數量而蠶食整個存款基礎。但很明顯，我們從一開始就談到了這一點，我們在存款財富方面的戰略偏好是將業務留在我們的平台上。

That's great color. And then maybe just going back to maybe an early comment that you made, Mike, on the picking up of business given the banking stress that we've seen in March? I think you mentioned $1 billion of inflows on the wealth platform, but that -- it was a longer-term dynamic. Maybe if you could just sort of describe what you're seeing internally in terms of, I guess, thinking about I guess, maybe the panic environment where clients were moving assets quickly going to a strong provider like Northern. Are we sort of past that phase? And then what is that next phase of getting those clients because of the dislocation, I guess, what's the sort of the -- either the sales pitch in as we move to the next couple of quarters in that dynamic?

那是很棒的顏色。考慮到我們在 3 月份看到的銀行業壓力，邁克，然後也許只是回到你早期發表的關於業務回暖的評論？我想你在財富平台上提到了 10 億美元的資金流入，但那是一個長期的動態。也許如果你能描述一下你在內部看到的情況，我想，我想，也許是恐慌的環境，客戶正在迅速將資產轉移到像 Northern 這樣強大的供應商那裡。我們是否已經過了那個階段？然後，由於錯位而獲得這些客戶的下一階段是什麼，我想，是那種 - 在我們進入該動態的下幾個季度時的銷售宣傳？

So Brian, I would start by saying that the way you characterize the first phase, kind of the panic phase is -- although we did have, I'll call it, like a strong week of inflows around that time period, it really wasn't a panic environment where people were pushing deposits over the counter, so to speak. I think there were different dynamics at play relative to other time periods. And that's why I say, what we're seeing is more kind of the longer play out in this -- I'll say, clients and prospects thinking about who their long-term financial partner is and ensuring that it's somebody that they're comfortable is going to be there and has the strength and stability. And so that's why I say it's less of a blip and more of a long-term, I call it, trend is the way that we would see it. And for us, without a doubt, it is playing off of our brands. It's playing off of the 130-year history of being around and being a strong partner. That, as you know, has been consistent for a long time. In certain environments, it plays better than others. We think this is an environment going forward where it plays very well.

所以布賴恩，我首先要說的是，你描述第一階段的方式，有點像恐慌階段——儘管我們確實有過，我稱之為，就像那個時期前後的強勁資金流入周，它真的不是這是一個恐慌的環境，可以這麼說，人們在櫃檯上存錢。我認為相對於其他時間段，有不同的動態在起作用。這就是為什麼我說，我們所看到的是在這方面發揮的時間更長——我會說，客戶和潛在客戶正在考慮他們的長期財務合作夥伴是誰，並確保他們是這樣的人舒適將在那裡並且具有強度和穩定性。所以這就是為什麼我說它不是曇花一現而是長期的，我稱之為趨勢是我們看待它的方式。對我們來說，毫無疑問，這是在利用我們的品牌。它正在發揮 130 年的歷史，並成為強大的合作夥伴。如您所知，這在很長一段時間內都是一致的。在某些環境中，它比其他環境發揮得更好。我們認為這是一個發展良好的環境。

We will take our next question from Ken Usdin with Jefferies.

我們將與 Jefferies 一起接受 Ken Usdin 的下一個問題。

Coming back on the expense question. I know you talked about moving the trust -- expense-trust-fees ratio is positive from here. The 6% adjusted cost growth rate is the best we've seen in like 6 or 7 quarters. And I'm just wondering, just philosophically, are you thinking about managing more towards absolute levels of cost? And is there a way to help us think about like how you think -- I know it's tough to generate operating leverage in this type of environment, just given what's happened and what you've walked through. But what's the right way to just think about absolute cost growth and how you're managing that on its own in this environment.

回到費用問題。我知道你談到了轉移信託——費用-信託-費用比率從這裡開始是正的。 6% 的調整後成本增長率是我們在 6 或 7 個季度中看到的最好的。我只是想知道，從哲學上講，您是否正在考慮更多地管理成本的絕對水平？有沒有辦法幫助我們像你一樣思考——我知道在這種環境中很難產生運營槓桿，考慮到發生的事情和你經歷的事情。但是，僅考慮絕對成本增長的正確方法是什麼，以及您如何在這種環境中自行管理它。

Sure. It's good to take a step back on this because it is how we've been talking about it internally recently. And one way to frame this, Ken, is if you think ex-charges. I'm going to -- because that's just the way -- we're not ignoring the charges, but the way we talk about them internally, ex-charges, we had 9% expense growth last year. And we don't -- that's not acceptable for us. And we -- so we've got to bend that curve aggressively. We know we're carrying part of that forward with what we know about the impact of hiring and merit increase and off-cycle adjustments given the labor environment last year. But that said, we're targeting getting 2 points out of last year's growth rate for the full year 2023.

當然。退後一步很好，因為這是我們最近在內部談論它的方式。肯，如果你認為不收費，那麼構建這個的一種方法就是。我要——因為這就是方式——我們並沒有忽視這些費用，但我們在內部談論它們的方式，不包括費用，去年我們的費用增長了 9%。我們不這樣做——這對我們來說是不可接受的。而我們——所以我們必須積極地彎曲這條曲線。我們知道，鑑於去年的勞動環境，我們正在推進其中的一部分，即我們對招聘和加薪以及非週期調整的影響的了解。但話雖如此，我們的目標是在 2023 年全年比去年的增長率提高 2 個百分點。

And in general, all the expense areas are going to be addressed collectively to get to that 7% or better expense growth rate. And so look at a couple that are notable because they've got big movements to them. One, you look at comp and that looked good for first quarter. If you look in the second quarter, we know there's about $40 million coming out because of the seasonality of the retirement-eligible grants and some other dynamics there. But we also know we've got $20 million in merit coming online in second quarter.

總的來說，所有費用領域都將共同解決，以達到 7% 或更高的費用增長率。所以看看一對著名的夫婦，因為他們有很大的動作。第一，你看看 comp，第一季度看起來不錯。如果你看看第二季度，我們知道由於符合退休條件的贈款的季節性和那裡的一些其他動態，大約有 4000 萬美元流出。但我們也知道我們在第二季度有 2000 萬美元的價值上線。

The incentive accrual is also in that line. So -- and that varies with profitability. And then from there, everything else is going to be driven by what happens in business from hiring and other actions and expense measures and things like that. And then we talked about outside services and how that's got a big step up next quarter. And then -- the last one, I'll highlight equipment software even though we've got that move from equipment software into outside services, we've got clear visibility on some incremental depreciation coming online, maybe not in second quarter, but in third. And so you could see a $5 million step up in that line item in the second quarter. But then we know we've got $10 million in depreciation coming in third quarter. So -- those are the big pieces at a super high level and then as well a couple of the big moves underneath it.

應計獎勵也在該行中。所以 - 這隨盈利能力而變化。然後從那裡開始，其他一切都將受到業務中發生的事情的驅動，這些事情來自招聘、其他行動和費用措施以及類似的事情。然後我們討論了外部服務以及下個季度如何取得重大進展。然後——最後一個，我將強調設備軟件，儘管我們已經從設備軟件轉向外部服務，我們已經清楚地看到一些增量折舊即將上線，也許不是在第二季度，但在第三。因此，您可以在第二季度看到該訂單項增加 500 萬美元。但是我們知道第三季度我們有 1000 萬美元的折舊。所以——這些是超高水平的大塊，然後是它下面的幾個大動作。

That's super helpful. And within that 7% or better, do you have -- is there an embedded impact on what current FX currency translation does there?

這非常有幫助。在這 7% 或更高的範圍內，您是否對當前的外匯貨幣換算產生了內在影響？

No, not from -- no, not from here. I mean we know we had a lift in this quarter, just an elevation of lift in -- on both revenue expense side hurt on the expense side, but not really modeling significant change from here.

不，不是來自——不，不是來自這裡。我的意思是我們知道我們在本季度有所提升，只是提升了 - 在收入支出方面都受到了傷害，但並沒有真正模擬從這裡開始的重大變化。

Okay. And if I could ask one more kind of bring it all together question. You talked about a lot of the balance sheet changes happening towards the end of the quarter. You talked about where deposits are, we can see where the betas went to. Do you have a way to help us understand just a range of expectations of what you think NII can do in 2Q versus 1Q to help us put that all together?

好的。如果我可以問另一種將所有問題放在一起的問題。您談到了本季度末發生的許多資產負債表變化。你談到了存款在哪裡，我們可以看到貝塔去了哪裡。您是否有辦法幫助我們了解您認為 NII 在第二季度和第一季度可以做些什麼的一系列期望，以幫助我們將所有這些放在一起？

We've been giving a lot of information. I would hope to give you a really good answer on this one, but I think we've got to leave it with where the deposit levels are, where the balances have been, where the deposit levels are and then look from there on. There's just so many factors moving around and particularly just client preference and we're being so emphatic and saying we're not going to try to nudge in any direction, just provide good advice there. So it's hard to bind it. I have to say the big factors that we see from here with volumes being down so far, it's -- I'm hard-pressed to see how we match the $544 of second quarter. And so I'm going to say down, but not do too much more than that to give an anticipation just given the volatility in the market about client preference and where deposits are going.

我們已經提供了很多信息。我希望在這個問題上給你一個非常好的答案，但我認為我們必須把它放在存款水平、餘額在哪裡、存款水平在哪裡，然後從那裡開始看。有太多因素在變化，尤其是客戶偏好，我們非常強調並表示我們不會試圖向任何方向推動，只是提供好的建議。所以很難綁定它。我不得不說我們從這裡看到的重要因素是到目前為止銷量下降，我很難看到我們如何與第二季度的 544 美元相匹配。因此，我要說的是，但考慮到市場關於客戶偏好和存款去向的波動性，我不會做太多的事情來給出預期。

We will take our next question from Jim Mitchell with Seaport Global.

我們將從吉姆·米切爾 (Jim Mitchell) 和 Seaport Global 那裡回答下一個問題。

Just maybe on the buyback. Any thoughts on with your leverage ratios improving, but you did also talk about maybe using some leverage. So how do we think about your thoughts on the buyback from here was a nice uptick from what you've been doing the last 5 quarters.

只是可能在回購上。關於槓桿比率提高的任何想法，但你也談到可能使用一些槓桿。那麼我們如何看待你對這裡回購的看法與你過去 5 個季度所做的事情相比有一個很好的提升。

Yes. It was good. And there's no reason we can't continue to be in the market. There are a couple of things working in our favor. One, if we've got a good return on equity in this -- even -- it's something like -- we picked up 35 -- 40 basis points from net income, you give up maybe half of that in dividends. But we also know that we're getting a lift from over time, the AOCI is going to pull the part and that gives a lift. I think it's also noteworthy.

是的。這很好。我們沒有理由不能繼續留在市場上。有幾件事對我們有利。第一，如果我們在這方面獲得了良好的股本回報 - 甚至 - 就像 - 我們從淨收入中獲得了 35 - 40 個基點，你可能會放棄其中一半的股息。但我們也知道，隨著時間的推移，我們正在獲得提升，AOCI 將拉動這部分，這會帶來提升。我認為這也是值得注意的。

The balance sheet repositioning we did -- it was -- that was accretive to CET1 because it helped reduce RWA. And so those things help. And so if you think about those dynamics of what is return on equity, where are we from a dividend payout ratio perspective? And then the pulling a part of AOCI, in general, it gives us some room to buy back stock, while at the same time, increasing CET1 to be at levels that are more consistent with -- if you look at our long-term history, we're still a little bit lower than where we were. And you know we're always looking at where peers and where is the competition and making sure we have good buffers. But that's how we're thinking about it nowadays. I'll tell you, we do look every day, we know -- where we know the impact of rates on AOCI. And so that's a factor you should imagine, we're thinking about intra-quarter.

我們所做的資產負債表重新定位——它是——增加了 CET1，因為它有助於減少 RWA。所以這些東西有幫助。因此，如果您考慮什麼是股本回報率的動態，那麼從股息支付率的角度來看，我們在哪裡？然後拉動 AOCI 的一部分，總的來說，它給了我們一些空間來回購股票，同時，將 CET1 增加到更符合的水平——如果你看看我們的長期歷史，我們仍然比以前低一點。你知道我們一直在關注同行和競爭對手在哪裡，並確保我們有良好的緩衝。但這就是我們現在的想法。我會告訴你，我們確實每天都在看，我們知道——我們知道利率對 AOCI 的影響。所以這是你應該想像的一個因素，我們正在考慮季度內。

Okay. That's fair. And then maybe just maybe a bigger picture. We've talked a lot about NII. On the fee side, you had good flows at the end of the quarter into money market funds, which is one of your higher fee rate products. You're talking about perhaps increased flows in the wealth side. How do we think -- and you had a move in the markets, how do we think about total fee income? Any puts and takes to think about as we go forward into the next quarter and beyond?

好的。這還算公平。然後也許只是更大的圖景。我們已經談了很多關於 NII 的事情。在費用方面，您在本季度末有良好的資金流入貨幣市場基金，這是您較高費率的產品之一。你說的可能是財富方面的流動增加。我們如何看待——你在市場上有一個舉動，我們如何看待總費用收入？當我們進入下一季度及以後時，有什麼需要考慮的嗎？

Yes. We've talked about the -- we give a good sense of where we are at the end of the quarter relative to the averages. And so it gives us a -- the launch point, frankly, is positive, relative to where we are. And you're right that the money market funds, in general, that's an attractive fee business for us. And so those -- all those things play in our favor. But we also know markets have a really big impact. And then also as much as we talk about -- we talk about organic growth in the business, what happens with markets in the short run is often the bigger driver.

是的。我們已經討論過——我們很好地了解了本季度末相對於平均水平的情況。所以它給了我們一個 - 坦率地說，相對於我們所處的位置，發射點是積極的。你是對的，貨幣市場基金，一般來說，這對我們來說是一個有吸引力的收費業務。所以那些 - 所有這些事情都對我們有利。但我們也知道市場的影響非常大。然後就像我們談論的那樣——我們談論業務的有機增長，短期內市場發生的事情通常是更大的驅動力。

The last thing I'll mention is that in Asset Servicing in particular, that pipeline in the short run of 1 not funded, 1 not onboarded is still above historical levels. And so the short run looks positive. We have less visibility out late in the year but the asset servicing side still is also attractive relative to history, and we gave you even more information, I think, on the wealth management side of the business.

我要提到的最後一件事是，特別是在資產服務中，短期內 1 個未獲得資金、1 個未入職的渠道仍高於歷史水平。因此，短期看起來是積極的。我們在今年年底的知名度較低，但資產服務方面相對於歷史仍然具有吸引力，我認為我們為您提供了更多有關業務財富管理方面的信息。

We will take our next question from Brennan Hawken with UBS.

我們將與瑞銀一起接受 Brennan Hawken 的下一個問題。

I just want to try and make sure I understand something on expenses. You had spoken to getting below 7% expense growth and I believe that was on a number that was ex one-timers. Do I understand that right? And what is that base on 2022, if we back out the one-timers, just so I can kind of fully level set and understand how we'd be really thinking about that.

我只是想嘗試確保我了解一些費用。你曾說過要實現低於 7% 的費用增長，我相信這是一個曾經是一次性的數字。我理解對嗎？如果我們取消一次性計劃，那麼 2022 年的基礎是什麼，這樣我就可以全面了解並了解我們將如何真正考慮這一點。

Yes. It's -- Think about it as 4, 8, 9, 3 to be very, very specific.

是的。它是 - 將其視為 4、8、9、3 非常非常具體。

That certainly is.

那當然是。

Sure.

當然。

So one more just clarifying. You had chatted about how there's some noise in that other financing line that we most usually think about as wholesale. So with deposits coming down, I would think that you'd be probably building out the wholesale, at least in the near term, given the quarter-to-date decline in the balances. Is that operating assumption fair? And then if we were to strip out some of that FICC financing line, what is that core cost to your wholesale just so we can model it appropriately when we're thinking about (inaudible) up for the -- some of the quarter-to-date trends you flagged.

所以再澄清一下。您曾談到我們通常認為是批發的其他融資渠道中有一些噪音。因此，隨著存款的減少，我認為你可能會建立批發，至少在短期內，鑑於餘額的季度下降。該運營假設是否公平？然後，如果我們要剝離一些 FICC 融資額度，那麼批發的核心成本是多少，這樣我們就可以在考慮（聽不清）到 - 一些季度到-您標記的日期趨勢。

Yes. And in general, it's going to depend on where we go in the market and how we -- and what sources of wholesale funding that we use. And so it's FHLB and sometimes we're doing other sources. But in general, it's been in the mid-4s this past quarter. And going forward, I think it's just -- I think it's obviously going to be impacted by rates and where -- and what happens with the Fed. And so -- but I think the fact that we've gotten 2 questions this time means we'll probably, in the future, try and give you guys a little bit more information on the impact of FICC repo and how that's impacting the borrowing costs. And there's also impact on the asset side to be fair as well. So we'll provide some more information on it.

是的。總的來說，這將取決於我們進入市場的位置以及我們的方式 - 以及我們使用的批發資金來源。所以它是 FHLB，有時我們正在做其他來源。但總的來說，上個季度一直處於 4 年代中期。展望未來，我認為這只是——我認為這顯然會受到利率和地點的影響——以及美聯儲會發生什麼。所以 - 但我認為這次我們收到了 2 個問題，這意味著我們將來可能會嘗試為大家提供更多關於 FICC 回購的影響以及它如何影響借貸的信息費用。而且對資產方面的影響也是公平的。因此，我們將提供更多相關信息。

Right. That would be really helpful. I'd love to just to -- this is a little bit of a ticky tacky, but I'd love to just do one more on expenses, if you don't mind. You spoke to $20 million pickup quarter-to-quarter. It seemed like on noncomp, but $5 million of that was just like one -- going from one bucket to another. So -- does that mean it's like $15 million quarter-over-quarter? Or does that mean that $20 million is the total step-up we should think about for noncomp? And then underneath the surface of that, there's $5 million moving from one bucket to another. Just if you could clarify that, that would be helpful.

正確的。那真的很有幫助。我很樂意——這有點俗氣，但如果你不介意的話，我很樂意再做一次開支。你每季度談到 2000 萬美元的皮卡。它看起來像是在 noncomp，但其中的 500 萬美元就像一個 - 從一個桶到另一個桶。那麼——這是否意味著季度環比達到 1500 萬美元？或者這是否意味著 2000 萬美元是我們應該為非補償考慮的總升級？然後在表面之下，有 500 萬美元從一個桶轉移到另一個桶。如果您能澄清這一點，那將很有幫助。

Yes. I'm going to -- there's a couple of areas where I mentioned 5 and 10. So let me -- I'm going to be a little bit repetitive, forgive me, but it will make sure that I was 100% clear on them because there's a couple of different areas that you might have been referencing. On comp, no movements between buckets. We think it take first quarter, reduce it by $40 million for the retirement eligible and some other factors that play into the incentive line and then add 20 for merit increase. that gives you a decent starting point to say, "okay, what's going to happen with the business going forward?"

是的。我要——我在幾個方面提到了 5 和 10。所以讓我——我會有點重複，請原諒，但這將確保我 100% 清楚它們是因為您可能已經提到了幾個不同的領域。在 comp 上，桶之間沒有移動。我們認為需要第一季度，將符合退休條件的退休人員和其他一些影響激勵線的因素減少 4000 萬美元，然後增加 20 美元以增加績效。這給了你一個不錯的起點，可以說，“好吧，未來的業務會發生什麼？”

Second dynamic that I mentioned does have movement between line items, it's movement between outside services and equipment and software. And there's about a $5 million move that's going to happen in second quarter from equipment and software into outside services. Outside services should be about $20 million higher than first quarter, that $20 million includes the $5 million from equipment and software. On equipment software, still think that, that line item is going to be up a few million dollars in second quarter.

我提到的第二個動態確實有行項目之間的移動，它是外部服務與設備和軟件之間的移動。第二季度將有大約 500 萬美元的資金從設備和軟件轉移到外部服務。外部服務應比第一季度高出約 2000 萬美元，這 2000 萬美元包括來自設備和軟件的 500 萬美元。在設備軟件方面，仍然認為，該項目在第二季度將增加數百萬美元。

Thanks for walking through that.

感謝您瀏覽該內容。

We will take our next question from Gerard Cassidy with RBC.

我們將接受 RBC 的 Gerard Cassidy 的下一個問題。

This is Thomas calling on behalf of Gerard. Circling back a bit on the fee side and following up a bit on Alex's question earlier. Can you give us some color on the competitive landscape you saw this quarter? And any organic growth opportunities you see as we look further into 2023 on the institutional side. You guys gave some good color on the wealth side, but just on the institutional side, any additional color there?

我是托馬斯代表杰拉德來電。在費用方面稍微回過頭來跟進一下 Alex 早些時候的問題。您能否介紹一下您在本季度看到的競爭格局？當我們在機構方面進一步展望 2023 年時，您會看到任何有機增長機會。你們在財富方面給了一些很好的色彩，但是在製度方面，還有什麼額外的色彩嗎？

Yes. Tom, the additional color I'd give you there is that -- certainly highly competitive, but there are quite a few opportunities that are out there, so active market. And I would say a lot of what's driving it is with the impact on the markets last year, equity markets being down 19%, 20%. And that put a lot of pressure on asset managers. And as a result, having them look at their operating models, how they can become more efficient and looking to either outsource activities and/or consolidate providers. And so that has increased, again, the level of opportunities in the marketplace. And can cut both ways. I mean situations where they were advantaged but other situations where I'll say we're more on the defensive because it's an existing client or 1 of 2 being an existing client. So very active at this point and obviously trying to win more than our share.

是的。湯姆，我要給你的額外顏色是——當然競爭激烈，但那裡有很多機會，如此活躍的市場。我想說很多推動它的因素是去年對市場的影響，股市下跌了 19%、20%。這給資產管理者帶來了很大壓力。因此，讓他們審視自己的運營模式，了解如何提高效率，並尋求外包活動和/或整合供應商。因此，這再次增加了市場機會的水平。並且可以雙向切割。我的意思是在他們處於優勢地位的情況下，但在其他情況下我會說我們更處於防御狀態，因為它是現有客戶或 2 個客戶中的 1 個是現有客戶。在這一點上非常活躍，顯然試圖贏得比我們更多的份額。

That's helpful. And then just lastly, high level, can you detail for us what an ideal environment would look like for you guys in terms of an interest rate and a global markets perspective.

這很有幫助。最後，高層，您能否為我們詳細說明在利率和全球市場視角方面對你們來說理想的環境是什麼樣的。

Yes. It's the -- it's interesting, I think Gerard actually might have asked that exact question a few weeks ago, which seems like quarters ago, and my thought on that is that, first of all, the trajectory -- the slope of the curve matters a ton. And having a somewhat steeper yield curve matters a lot. And Secondly, you want rates to be above, very low. And so when rates are, call it, 50 -- when Fed funds rates are below 50 basis points or below it's hard -- it's just hard for us to get good return on equity, and we start to play in the fee waiver land, which just is not -- it's not that we lose money in money market funds. But that whole business, the economics of it changed a lot.

是的。這是——這很有趣，我認為杰拉德實際上可能在幾週前問過這個確切的問題，這似乎是幾個季度前，我對此的想法是，首先，軌跡——曲線的斜率很重要一噸。更陡峭的收益率曲線很重要。其次，你希望利率高於、非常低。因此，當利率為 50 時——當聯邦基金利率低於或低於 50 個基點時——我們很難獲得良好的股本回報率，我們開始在費用減免領域發揮作用，這不是 - 這並不是說我們在貨幣市場基金中賠錢。但是整個業務，它的經濟性發生了很大變化。

And -- but then lastly, the pace with which you get to any environment matters a lot. And that's why a lot of banks have struggled this time. It's not the yield curve, it's the pace of change. And literally 12 months ago to today, and Fed moving this aggressively in a relatively short period of time. It just creates -- it's very tough to deal with PACE. So those would be -- those are the 3 dynamics that are forefront of mind from our lens.

而且——但最後，你進入任何環境的步伐都非常重要。這就是為什麼很多銀行這次都舉步維艱的原因。這不是收益率曲線，而是變化的速度。從字面上看，從 12 個月前到今天，美聯儲在相對較短的時間內積極採取這一行動。它只是創造——處理 PACE 非常困難。所以那些將是 - 這些是我們鏡頭中最前沿的 3 個動態。

We will take our next question from Vivek Juneja with JPMorgan.

我們將接受 JPMorgan 的 Vivek Juneja 的下一個問題。

A couple of questions. One is the headcount cuts, the severance that you took in the fourth quarter. Have we seen that flow through yet in terms of the numbers?

幾個問題。一是裁員，即您在第四季度採取的遣散措施。我們是否看到了數字的流動？

So we have actually gotten a pretty good head start on those but very little impact already in the numbers. It happened later in the quarter and just the areas of the business where they happened, we just haven't seen them play through very much yet, some impact, but light.

因此，我們實際上在這些方面取得了很好的開端，但對數字的影響很小。它發生在本季度晚些時候，只是它們發生的業務領域，我們還沒有看到它們發揮很大作用，有一些影響，但很輕。

So should we -- in those numbers that you gave us, should there be some benefit from that coming through, Jason, in Q2 or not or 3Q? Or any color on that?

那麼我們應該 - 在你給我們的那些數字中，Jason，是否應該在第二季度或第三季度從中獲得一些好處？或者上面有什麼顏色？

Yes. We've -- all along, I think we said we think the meaningful impact should be visible by third quarter. And again, remember also that we said this is about getting jobs into the right places. And so in many instances, this is about transitioning jobs from lower cost -- from higher-cost locations to lower-cost locations. And so we'll see some benefit, but it's not the impact of taking the roles that we're exiting times, times the average cost. There's some exit in some instances. Again, I think it is super instructive to focus on what we mentioned earlier, we're thinking about the -- our target is to try and get that overall expense growth rate in the right level, and we're thinking about all of these different expense categories in aggregate to get there.

是的。我們 - 一直以來，我認為我們說過我們認為有意義的影響應該在第三季度顯現出來。再一次，還請記住，我們說過這是關於將工作分配到正確的地方。因此，在許多情況下，這是關於將工作從成本較低的地方——從成本較高的地點轉移到成本較低的地點。所以我們會看到一些好處，但這不是我們退出的角色的影響時間，乘以平均成本。在某些情況下有一些出口。同樣，我認為專注於我們之前提到的內容非常有指導意義，我們正在考慮 - 我們的目標是嘗試將總體費用增長率保持在正確的水平，我們正在考慮所有這些總計不同的費用類別才能到達那裡。

Shifting gears completely different one. You talked about the reverse, but I want to separate from that. Your other borrowings went up from about $3.5 billion a year ago, $8 billion last quarter to now over $11 billion. It doesn't seem like you're making much of a spread on that. Any color on how we should think about that and what's driving that increase?

換檔完全不同的一個。您談到了相反的情況，但我想與之分開。你的其他借款從一年前的大約 35 億美元增加到上個季度的 80 億美元，現在超過 110 億美元。看起來你並沒有在這方面大肆宣揚。關於我們應該如何考慮這一點以及是什麼推動了這一增長的任何顏色？

Yes. That's also where the FICC repo activity is going to be reflected. But...

是的。這也是將反映 FICC 回購活動的地方。但...

I see not just in the repo line, but on top of that and the other borrowing line, too, is it?

我不僅在回購行中看到，而且在那個和其他借貸行之上，也是嗎？

I think in the other borrowings, Vivek, you also have some of the Federal Home Loan Bank borrowings, which during this time period, we termed some of those out, which previously was more all overnight. And just in this time period with the uncertainty, wanted to add additional liquidity to the balance sheet.

我認為在其他借款中，Vivek，你還有一些聯邦住房貸款銀行的借款，在這段時間裡，我們將其中一些借款稱為 out，以前更多是一夜之間。就在這個充滿不確定性的時期，想要為資產負債表增加額外的流動性。

There was about $3.5 billion in that increased FHLB line item.

增加的 FHLB 項目中大約有 35 億美元。

From that's sequentially, not year-over-year.

從那以後是順序的，而不是同比的。

And you're done with that, Mike? Or are you still looking to leave some -- do more there?

你完成了嗎，邁克？或者你是否仍然希望留下一些 - 在那裡做更多？

No, we'll -- as opportunities come up for us, we're still contemplating it, not necessarily done. I mean, as you know, the spread is not it's not extremely high there. So there's a combination of liquidity management, but also the spread that's available. But what moving that from 7.6 to 11.4 is a big move. There's also one other dynamic in that line item, which is that there was some Euro investment leveraging that had been up in the non-U.S. office interest-bearing line that has been reclassed into other borrowing. And so that's a little over $1 billion. And so it's just another dynamic to the increase that you see there. But back to -- we've got capacity for leveraging and we'll continue to think about where to use it.

不，我們會——隨著機會的出現，我們仍在考慮，不一定完成。我的意思是，如你所知，那裡的傳播不是很高。因此，流動性管理與可用利差相結合。但是將它從 7.6 移動到 11.4 是一個重大舉措。該項目還有另一個動態，即非美國辦公室計息項目中的一些歐元投資槓桿已被重新分類為其他借款。所以這略高於 10 億美元。因此，這只是您在那裡看到的增長的另一種動力。但回到——我們有能力利用，我們將繼續考慮在哪裡使用它。

That will conclude today's question-and-answer session. Ms. Childe, I will turn the conference back to you for any additional or closing remarks.

今天的問答環節到此結束。 Childe 女士，我會將會議轉回給您，請您發表任何補充或結束語。

Thank you, Cynthia, and thanks, everyone, for joining us this morning. We look forward to speaking with you again soon.

謝謝 Cynthia，也謝謝大家今天早上加入我們。我們期待很快再次與您交談。

This concludes today's call. Thank you for your participation, and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。