雷蒙詹姆斯金融 (RJF) 2023 Q2 法說會逐字稿

Good afternoon, and welcome to Raymond James Financial's Second Quarter Fiscal 2023 Earnings Call. (Operator Instructions) This call is being recorded and will be available for replay on the company's Investor Relations website. Now we'll turn it over to Kristie Waugh, Senior Vice President of Investor Relations at Raymond James Financial.

下午好，歡迎來到 Raymond James Financial 的 2023 財年第二季度收益電話會議。 （操作員說明）此通話正在錄製中，可以在公司的投資者關係網站上重播。現在我們將把它交給 Raymond James Financial 投資者關係高級副總裁 Kristie Waugh。

Good afternoon, everyone, and thank you for joining us. We appreciate your time and interest in Raymond James Financial. With us on the call today are Paul Reilly, Chair and Chief Executive Officer; and Paul Shoukry, Chief Financial Officer. The presentation being reviewed today is available on Raymond James' Investor Relations website. Following the prepared remarks, the operator will open the line for questions.

大家下午好，感謝您加入我們。感謝您抽出時間關注 Raymond James Financial。今天與我們通話的有董事長兼首席執行官 Paul Reilly；首席財務官 Paul Shoukry。今天正在審查的演示文稿可在 Raymond James 的投資者關係網站上找到。在準備好的評論之後，接線員將打開問題熱線。

Calling your attention to Slide 2. Please note certain statements made during this call may constitute forward-looking statements. These statements include, but are not limited to, information concerning future strategic objectives, business prospects, financial results, anticipated timing and benefits of our acquisitions and our level of success integrating acquired businesses, divestitures, anticipated results of litigation and regulatory developments or economic conditions.

提請您注意幻燈片 2。請注意，本次電話會議期間所做的某些陳述可能構成前瞻性陳述。這些陳述包括但不限於有關未來戰略目標、業務前景、財務結果、我們收購的預期時間和收益以及我們整合收購業務的成功程度、剝離、訴訟預期結果和監管發展或經濟狀況的信息.

In addition, words such as may, will, could, anticipates, expects, believes or continue or negative of such terms as well as any other statement that necessarily depends on future events are intended to identify forward-looking statements. Please note that there can be no assurance that actual results will not differ materially from those expressed in these statements. We urge you to consider the risks described in our most recent Form 10-K and subsequent Forms 10-Q and Forms 8-K, which are available on our Investor Relations website.

此外，諸如可能、將、可能、預期、期望、相信或繼續或否定此類條款的詞語以及任何其他必然取決於未來事件的陳述旨在識別前瞻性陳述。請注意，無法保證實際結果不會與這些聲明中表達的結果存在重大差異。我們敦促您考慮我們最新的 10-K 表格以及後續的 10-Q 表格和 8-K 表格中描述的風險，這些信息可在我們的投資者關係網站上找到。

During today's call, we will also use certain non-GAAP financial measures to provide information pertinent to our management's view of ongoing business performance. A reconciliation of these non-GAAP measures to the most comparable GAAP measures may be found in the schedules accompanying our press release and presentation. Now I'll turn the call over to Chair and CEO, Paul Reilly. Paul?

在今天的電話會議中，我們還將使用某些非 GAAP 財務指標來提供與我們管理層對持續經營業績的看法相關的信息。這些非 GAAP 措施與最具可比性的 GAAP 措施的對賬可以在我們的新聞稿和演示文稿隨附的時間表中找到。現在我將把電話轉給主席兼首席執行官 Paul Reilly。保羅？

Good afternoon. Thank you for joining us today. Paul and I are joining you from Orlando, Florida. We have over 4,000 people attending our independent advisers conference. It's great to see such an upbeat mood and people really having a good time getting back together as well as all the other educational sessions we have here. Since our founding over 60 years ago, Raymond James has maintained an unwavering commitment to placing clients first through conservative decision-making that keeps us well positioned over the long term. While remaining focused on the long term has not always been easy or fully appreciated in good times, it has served us very well over time. And it's in times such as these when even the financial system itself is challenged that our philosophy not only carries us through but enables us to thrive.

下午好。感謝您今天加入我們。保羅和我將從佛羅里達州奧蘭多加入你們。我們有超過 4,000 人參加我們的獨立顧問會議。很高興看到如此樂觀的情緒，人們真的很開心重聚在一起，以及我們在這裡舉辦的所有其他教育課程。自我們 60 多年前成立以來，Raymond James 始終堅定不移地致力於通過保守的決策將客戶放在首位，這使我們能夠長期處於有利地位。雖然在繁榮時期保持專注於長期並不總是那麼容易或完全受到重視，但隨著時間的推移，它對我們很有幫助。正是在這樣的時代，即使金融體系本身也受到挑戰，我們的理念不僅讓我們渡過難關，而且使我們能夠蓬勃發展。

Just a few examples of our differentiated positioning that we have benefited recently from includes Tier 1 leverage capital ratio of 11.5%, over 2x the regulatory requirement to be well capitalized. 88% of our bank deposits are FDIC insured, including nearly 95% of Raymond James Bank amongst the highest in the entire industry, and A-level rating with all 3 credit agencies, which Fitch reaffirmed in March at the height of the turmoil.

我們最近從中受益的差異化定位的幾個例子包括 11.5% 的一級槓桿資本比率，超過資本充足監管要求的 2 倍。我們 88% 的銀行存款受 FDIC 保險，其中近 95% 的 Raymond James Bank 在整個行業中名列前茅，並獲得所有 3 家信用機構的 A 級評級，惠譽在 3 月份動盪最嚴重的時候重申了這一評級。

A few weeks later, we were able to renew and upsize our 5-year committed revolver with enhanced terms, thanks to the fantastic relationship we have with all of our bank partners. Further, we were able to buy back 350 million of shares at what we believe were attractive prices. And we still have $1.1 billion of capacity remaining under our Board authorization. In times like these, we are reminded of the importance of keeping a long-term client-focused approach and our stakeholders benefit and appreciate the firm's dedication to placing them first.

幾週後，由於我們與所有銀行合作夥伴建立了良好的關係，我們能夠以更優惠的條款續籤和擴大我們的 5 年承諾循環。此外，我們能夠以我們認為具有吸引力的價格回購 3.5 億股股票。根據董事會授權，我們仍有 11 億美元的剩餘產能。在這樣的時刻，我們被提醒保持長期以客戶為中心的方法的重要性，我們的利益相關者受益並感謝公司致力於將他們放在首位。

Now turning to our results. Despite the challenging market and the high market volatility during the first 6 months of the fiscal year, we generated record net revenues and record earnings. Reviewing second quarter results, starting on Slide 4. The firm reported record quarterly net revenues of $2.9 billion and net income available to common shareholders of $425 million or $1.93 per diluted share. Excluding expenses related to acquisitions, adjusted net income available to common shareholders was $446 million or $2.03 per diluted share.

現在轉向我們的結果。儘管本財政年度前 6 個月市場充滿挑戰且市場波動劇烈，但我們的淨收入和收益創下了歷史新高。回顧第二季度業績，從幻燈片 4 開始。該公司公佈創紀錄的季度淨收入 29 億美元，普通股股東可獲得的淨收入為 4.25 億美元或每股攤薄收益 1.93 美元。不包括與收購相關的費用，調整後普通股股東可獲得的淨收入為 4.46 億美元或每股攤薄收益 2.03 美元。

The increase in interest-related revenues driven by short-term interest rates drove significant earnings growth over the prior year. Net revenue increased 7% and net income available to common shareholders grew 32%. And despite the challenging market conditions and our robust capital position, we generated strong returns with annualized return on common equity of 70.3% and annualized adjusted return on tangible common equity of 22.3%.

受短期利率推動的利息相關收入的增加推動了盈利較上年顯著增長。淨收入增長 7%，普通股股東可獲得的淨收入增長 32%。儘管市場條件充滿挑戰且我們的資本狀況穩健，但我們仍獲得了強勁的回報，普通股年化回報率為 70.3%，調整後的有形普通股年化回報率為 22.3%。

Moving to Slide 5. We ended the quarter with total client assets under administration of $1.2 trillion, PCG assets in fee-based accounts of $666 billion and financial assets under management of $194 billion. With our continued focus on retaining, supporting and attracting high-quality financial advisers, PCG consistently generates strong organic growth, which is evident again this quarter with domestic net new assets of $21.5 billion, representing an 8.4% annualized growth rate on the beginning of the period domestic PCG assets.

轉到幻燈片 5。本季度結束時，我們管理的客戶資產總額為 1.2 萬億美元，收費賬戶中的 PCG 資產為 6660 億美元，管理的金融資產為 1940 億美元。隨著我們繼續專注於留住、支持和吸引高質量的財務顧問，PCG 持續實現強勁的有機增長，這一點在本季度再次明顯，國內淨新資產為 215 億美元，比年初的年化增長率為 8.4%期國內 PCG 資產。

During the prior 12 months, we recruited, through our domestic independent contractor and employee channels, financial advisers with approximately $275 million of trailing 12 production and nearly $38 billion of client assets at their previous firm. Total clients' domestic sweep and Enhanced Savings Program balances ended the quarter at $52.2 billion, down 14% from December of 2022. The sequential decline reflects the expected cash sorting activity, which was partially offset by the launch of our Enhanced Savings Program. We are pleased with the early success of our Enhanced Savings Program. This product offered to PCG clients, the Raymond James Bank is a fantastic option for clients seeking competitive rates while maintaining a high level of FDIC insurance. We believe this product is really unique in the industry and certainly appealing in the current environment. As of this week, Enhanced Savings Program balances have surpassed $4.5 billion.

在過去的 12 個月裡，我們通過國內獨立承包商和員工渠道招募了財務顧問，他們在他們之前的公司擁有大約 2.75 億美元的跟踪 12 產量和近 380 億美元的客戶資產。客戶的國內清掃和增強型儲蓄計劃餘額總額在本季度結束時為 522 億美元，比 2022 年 12 月下降了 14%。環比下降反映了預期的現金分類活動，這部分被我們增強型儲蓄計劃的推出所抵消。我們對增強儲蓄計劃的早期成功感到高興。該產品提供給 PCG 客戶，Raymond James Bank 是尋求有競爭力的利率同時保持高水平 FDIC 保險的客戶的絕佳選擇。我們相信該產品在業內確實獨一無二，在當前環境下肯定具有吸引力。截至本週，增強型儲蓄計劃餘額已超過 45 億美元。

Total bank loans decreased to 1% from the preceding quarter to $44 billion, primarily reflecting a modest decline in securities-based loans due to higher interest rate environment. We will touch on this more later on the call, but we plan to remain very prudent with growing our corporate loans over the next several months given volatile market conditions.

銀行貸款總額較上一季度下降 1% 至 440 億美元，這主要反映了由於較高的利率環境導致證券貸款溫和下降。我們將在稍後的電話會議上更多地討論這一點，但鑑於市場環境動盪，我們計劃在未來幾個月內對增加公司貸款保持非常謹慎的態度。

Moving to Slide 6. Private Client Group generated record results with quarterly net revenue of $2.14 billion and pretax income of $441 million. Year-over-year, asset-based revenues declined due to market declines. However, PCG's results were lifted by the benefit of higher interest rates and interest-related revenues and fees. As Paul Shoukry will explain in more detail, this quarter was negatively impacted by some seasonal expenses as well as elevated legal costs. The Capital Markets segment generated quarterly net revenues of $302 million and a pretax loss of $34 million. Revenues declined 27% compared to the prior year quarter mostly driven by lower investment banking revenues as well as lower fixed income brokerage revenues. The extremely challenging market environment, particularly for investment banking, has strained the near-term profitability of the segment. However, we are focused on managing controllable expenses as near-term revenues are depressed.

轉到幻燈片 6。私人客戶集團創造了創紀錄的業績，季度淨收入為 21.4 億美元，稅前收入為 4.41 億美元。由於市場下滑，基於資產的收入同比下降。然而，PCG 的業績因更高的利率和與利息相關的收入和費用而得到提升。正如 Paul Shoukry 將更詳細地解釋的那樣，本季度受到一些季節性費用以及法律費用增加的負面影響。資本市場部門的季度淨收入為 3.02 億美元，稅前虧損為 3400 萬美元。與去年同期相比，收入下降了 27%，這主要是由於投資銀行業務收入下降以及固定收益經紀業務收入下降所致。極具挑戰性的市場環境，尤其是投資銀行業務，已經限制了該部門的近期盈利能力。然而，由於近期收入低迷，我們專注於管理可控開支。

The Asset Management segment generated pretax income of $82 million on net revenues of $216 million. The year-over-year decreases in net revenue and pretax income were largely attributable to lower assets and fee-based accounts as net inflows into fee-based accounts and the Private Client Group were offset by market declines.

資產管理部門的淨收入為 2.16 億美元，稅前收入為 8200 萬美元。淨收入和稅前收入的同比下降主要歸因於資產和收費賬戶的減少，因為流入收費賬戶和私人客戶組的淨資金被市場下滑所抵消。

Solid net inflows for Raymond James Investment Management helped boost financial assets under management, which should provide a tailwind in the fiscal third quarter. The bank segment generated record net revenues of $540 million and pretax income of $91 million. Revenue growth was largely due to the continued expansion of the bank's net interest margin to 3.63% for the quarter, up 162 basis points over the year ago quarter and 27 basis points from the preceding quarter. The NIM expansion reflected the flexible and floating nature of our balance sheet. Although as Paul Shoukry will explain, we do expect some headwinds to NIM, which reached very high levels across the industry over the past couple of months.

Raymond James Investment Management 的穩健淨流入幫助提振了管理下的金融資產，這應該會在第三財季起到推動作用。銀行部門創造了創紀錄的 5.4 億美元淨收入和 9100 萬美元的稅前收入。收入增長主要是由於該行本季度淨息差繼續擴大至3.63%，較去年同期上升162個基點，較上一季度上升27個基點。 NIM 擴張反映了我們資產負債表的靈活性和浮動性。儘管正如 Paul Shoukry 將解釋的那樣，我們確實預計 NIM 會遇到一些不利因素，這在過去幾個月中達到了整個行業的非常高的水平。

Looking at the fiscal year-to-date results on Slide 7. We generated record net revenues of $5.66 billion and record net income available to common shareholders of $932 million, up 4% and 21%, respectively, over the prior year's record. Additionally, we generated strong annualized return on common equity of 19.3% and annualized adjusted return on tangible common equity of 24.2% for the 6-month period.

查看幻燈片 7 的財年迄今結果。我們創造了創紀錄的 56.6 億美元淨收入和創紀錄的普通股股東可獲得的淨收入 9.32 億美元，分別比上一年的記錄增長 4% 和 21%。此外，我們在 6 個月期間產生了 19.3% 的強勁年化普通股回報率和 24.2% 的調整後有形普通股年化回報率。

On Slide 8, the strength of the PCG and Bank segment for the first half of the year primarily reflects the strong organic growth in PCG and the benefit of higher interest-related revenues, whereas the weaker Capital Markets results reflected the challenging environment for investment banking and brokerage revenues, especially when compared to the record activity levels in the year ago period.

在幻燈片 8 中，PCG 和銀行部門上半年的實力主要反映了 PCG 強勁的有機增長和更高的利息相關收入，而較弱的資本市場結果反映了投資銀行業充滿挑戰的環境和經紀收入，尤其是與去年同期創紀錄的活動水平相比。

And now I'm going to turn the call over to Paul Shoukry for a more detailed review of the second quarter financials. Paul?

現在我要把電話轉給 Paul Shoukry，以便對第二季度的財務狀況進行更詳細的審查。保羅？

Thank you, Paul. Starting on Slide 10. Consolidated net revenues were a record $2.87 billion in the second quarter, up 7% over the prior year and 3% sequentially. Being able to generate record quarterly revenues during a period when Capital Market revenues were so challenged across the industry reinforces the value of having diversified and complementary businesses. Asset management and related administrative fees declined 11% compared to the prior year quarter and increased 5% sequentially due to the higher assets and fee-based accounts at the end of the preceding quarter, partially offset by fewer billable days in the fiscal second quarter. This quarter, fee-based assets grew 5%, providing a tailwind for asset management and related administrative fees in the fiscal third quarter.

謝謝你，保羅。從幻燈片 10 開始。第二季度合併淨收入達到創紀錄的 28.7 億美元，比去年同期增長 7%，環比增長 3%。在整個行業的資本市場收入面臨如此挑戰的時期，能夠產生創紀錄的季度收入，增強了擁有多元化和互補業務的價值。資產管理和相關行政費用與去年同期相比下降 11%，環比增長 5%，原因是上一季度末資產和收費賬戶增加，部分被第二財季計費天數減少所抵消。本季度，收費資產增長了 5%，為第三財季的資產管理和相關行政費用提供了助力。

Brokerage revenues of $496 million declined 12% year-over-year and grew 2% sequentially. This year-over-year decline was largely due to lower asset-based trail revenues in PCG as well as lower fixed income brokerage revenues in the Capital Markets segment.

經紀業務收入為 4.96 億美元，同比下降 12%，環比增長 2%。同比下降主要是由於 PCG 的基於資產的跟踪收入下降以及資本市場部門的固定收益經紀收入下降。

I'll discuss account service fees and net interest income shortly. Investment banking revenues of $154 million declined 34% year-over-year and grew 9% sequentially. As experienced across the industry, M&A revenues were particularly challenged this quarter, declining 37% year-over-year and 15% sequentially. Despite a healthy banking pipeline and solid new business activity, there remains a lot of uncertainty in the pace and timings of deals launching and closing, given the heightened market volatility. It remains too difficult to say when conditions will become conducive to increase investment banking revenues.

我將很快討論賬戶服務費和淨利息收入。投資銀行業務收入為 1.54 億美元，同比下降 34%，環比增長 9%。正如整個行業所經歷的那樣，本季度併購收入尤其面臨挑戰，同比下降 37%，環比下降 15%。儘管銀行業務渠道健康，新業務活動穩健，但鑑於市場波動加劇，交易啟動和完成的速度和時間仍然存在很多不確定性。很難說什麼時候條件會變得有利於增加投資銀行收入。

Moving to Slide 11. Clients' domestic cash sweep and Enhanced Savings Program balances ended the quarter at $52.2 billion, down 14% compared to the preceding quarter and representing 4.9% of domestic PCG client assets. The Enhanced Savings Program added approximately $2.7 billion in new deposits in March as the offering was only open to net new balances until April. And a good portion of these new balances were derived from brand-new clients to the firm following the Silicon Valley Bank collapse, highlighting the attractiveness of this product and Raymond James being viewed as a source of strength and stability.

轉到幻燈片 11。本季度末，客戶的國內現金清掃和增強型儲蓄計劃餘額為 522 億美元，比上一季度下降 14%，佔國內 PCG 客戶資產的 4.9%。 Enhanced Savings Program 在 3 月份增加了約 27 億美元的新存款，因為該產品僅在 4 月份之前對淨新余額開放。這些新余額中有很大一部分來自矽谷銀行倒閉後公司的全新客戶，突顯了該產品的吸引力，雷蒙德詹姆斯被視為力量和穩定的源泉。

As Paul said, the Enhanced Savings Program balances exceeded $4.5 billion this week, continuing to grow nicely and partially offsetting the anticipated decline in sweep balances, largely due to quarterly fee billings in April. So while it's difficult to parse through the disclosures to make sure we're comparing apples to apples, of the handful of peers who have reported thus far, we estimate year-over-year cash sweep declines for those peers were approximately 35% to 45%. This compares to a 35% year-over-year decline in our domestic sweep balances through March. So this dynamic of declining sweep balances has really been experienced at roughly the same order of magnitude for most of the firms in our industry. And as most of you know, we have been expecting, communicating and preparing for the sorting activity for quite some time.

正如 Paul 所說，增強型儲蓄計劃餘額本週超過 45 億美元，繼續良好增長並部分抵消了掃除餘額的預期下降，這主要是由於 4 月份的季度費用賬單。因此，雖然很難通過披露來確保我們將蘋果與蘋果進行比較，但在迄今為止已報告的少數同行中，我們估計這些同行的現金清掃同比下降約 35% 至 45% %。相比之下，截至 3 月份，我們的國內清算餘額同比下降了 35%。因此，對於我們行業中的大多數公司來說，這種下降清算餘額的動態實際上已經經歷了大致相同的數量級。正如你們大多數人所知，我們已經期待、溝通和準備分類活動很長一段時間了。

Looking forward, we expect additional cash sorting activity, although we believe we are much closer to the end of that dynamic than we are to the beginning if rates settle out near current levels, and the average sweep balance per account over the approximately 3.4 million accounts domestically is now less than $15,000. We hope to continue to offset any further cash sorting activities through our diversified funding sources, including the Enhanced Savings Program, TriState deposit franchise and other initiatives. And when the sorting dynamic does stabilize, we would then expect to grow sweep balances given our strong organic growth in PCG.

展望未來，我們預計會有更多的現金分類活動，儘管我們認為，如果利率穩定在當前水平附近，並且每個賬戶的平均清算餘額超過約 340 萬個賬戶，我們將比開始時更接近這種動態的結束國內現在不到 15,000 美元。我們希望通過我們多元化的資金來源，包括增強儲蓄計劃、TriState 存款專營權和其他舉措，繼續抵消任何進一步的現金分類活動。當排序動態穩定下來時，鑑於我們在 PCG 的強勁有機增長，我們預計會增加清掃餘額。

Meanwhile, to be prudent, we would strive to maintain a strong funding cushion of domestic cash swept to third-party banks, not too much lower than where it ended the March quarter. We would also plan to keep elevated cash balances in the Bank segment, which grew from $1.8 billion in December to $5 billion at the end of the fiscal second quarter. While these actions don't optimize net interest margin over the short term, we believe they give us the most flexibility over the long term.

同時，為謹慎起見，我們將努力保持流向第三方銀行的國內現金的強大融資緩衝，不會比 3 月季度末的水平低太多。我們還計劃保持銀行部門較高的現金餘額，從去年 12 月的 18 億美元增加到第二財季末的 50 億美元。雖然這些行動不會在短期內優化淨息差，但我們相信它們在長期內為我們提供了最大的靈活性。

Turning to Slide 12. Combined net interest income and RJBDP fees from third-party bank was $731 million, up 226% over the prior year quarter and 1% over the preceding quarter as a sequential decrease in RJBDP fees from third-party banks was more than offset by higher firm-wide net interest income. The Bank segment's net interest margin increased 27 basis points sequentially to 3.63% for the quarter, and the average yield on RJBDP balances with third-party banks increased 53 basis points to 3.25%. Our long-standing approach of maintaining a high concentration of floating rate assets not only helped drive more immediate upside to higher short-term interest rates but also preserve a relatively flexible balance sheet compared to the banks that had much higher concentration of duration risk.

轉到幻燈片 12。來自第三方銀行的淨利息收入和 RJBDP 費用合計為 7.31 億美元，比去年同期增長 226%，比上一季度增長 1%，因為來自第三方銀行的 RJBDP 費用環比下降更多而不是被更高的全公司淨利息收入所抵消。本季度銀行部門的淨息差環比增長 27 個基點至 3.63%，第三方銀行的 RJBDP 餘額平均收益率增長 53 個基點至 3.25%。我們長期保持浮動利率資產高度集中的做法不僅有助於推動更高短期利率的更直接上行，而且與久期風險高度集中的銀行相比，還保持了相對靈活的資產負債表。

Looking forward, we expect combined net interest income and RJBDP fees from third-party banks to decline sequentially in fiscal third quarter due to a decrease in third-party RJBDP fees given the lower average balances with third-party banks. We would also expect the bank segments NIM to contract from the second quarter given the higher level of cash balances we plan to maintain during this volatile period as well as the impact from higher cost diversified funding sources. But as we have always said, instead of focusing on maximizing NIM, we are focused on preserving flexibility and growing net interest income over the long term, which we still believe we are well positioned to do after the cash sorting dynamic is behind us. But near term, we expect headwinds for the net interest income and RJBDP fees for the reasons I just explained.

展望未來，我們預計第三方銀行的淨利息收入和 RJBDP 費用的總和將在第三財季連續下降，原因是第三方銀行的平均餘額較低，導致第三方 RJBDP 費用減少。鑑於我們計劃在此動盪時期保持較高水平的現金餘額，以及成本較高的多元化融資來源的影響，我們還預計銀行部門的淨息差將從第二季度開始收縮。但正如我們一直所說的那樣，我們不是專注於最大化 NIM，而是專注於長期保持靈活性和增加淨利息收入，我們仍然相信，在現金分類動態已經過去之後，我們有能力做到這一點。但在短期內，由於我剛才解釋的原因，我們預計淨利息收入和 RJBDP 費用將出現逆風。

Moving to consolidated expenses on Slide 13. Compensation expense was $1.8 billion, and the total compensation ratio for the quarter was 63.3%. The adjusted compensation ratio was 62.8% during the quarter. The compensation ratio continues to benefit from higher net interest income in RJBDP fees from third-party banks. The sequential increase in compensation reflects higher revenues as well as the impact of salary increases effective on January 1, along with the reset of payroll taxes at the beginning of the calendar year. We are very pleased to generate a 62.8% adjusted compensation ratio given these factors and the extremely challenging market environment for Capital Markets.

轉到幻燈片 13 的合併費用。薪酬費用為 18 億美元，本季度的總薪酬率為 63.3%。本季度調整後的薪酬比率為 62.8%。薪酬比率繼續受益於第三方銀行 RJBDP 費用的更高淨利息收入。薪酬的連續增長反映了收入的增加以及自 1 月 1 日起生效的加薪以及日曆年年初重新設置的工資稅的影響。鑑於這些因素以及資本市場極具挑戰性的市場環境，我們很高興產生 62.8% 的調整後薪酬比率。

Non-compensation expenses of $496 million increased 25% sequentially. Adjusting for acquisition-related non-compensation expenses and the favorable settlement received in the fiscal first quarter, which are all included in our non-GAAP earning adjustments, non-compensation expenses grew 16% during the quarter. This increase was largely driven by higher legal and regulatory costs including an unfavorable arbitration award totaling $20 million, along with higher communication and information processing expenses, which reflect continued technology investments and the seasonal impact of year-end mailing. The bank loan provision for credit losses for the quarter of $28 million largely reflects the charge-off of a C&I loan has been challenged for several quarters as well as higher allowances in the CRE portfolio. I'll discuss more related to the credit quality of the Bank segment shortly.

4.96 億美元的非薪酬支出環比增長 25%。調整與收購相關的非補償費用和第一財季收到的有利結算，這些都包含在我們的非 GAAP 收益調整中，非補償費用在本季度增長了 16%。這一增長主要是由於更高的法律和監管成本，包括總計 2000 萬美元的不利仲裁裁決，以及更高的通信和信息處理費用，這反映了持續的技術投資和年終郵寄的季節性影響。本季度 2800 萬美元的銀行信貸損失準備金主要反映了 C&I 貸款的註銷在幾個季度內受到挑戰，以及 CRE 投資組合中的更高津貼。稍後我將討論更多與銀行部門的信用質量相關的問題。

In summary, we remain focused on managing expenses while continuing to invest in growth and ensuring high service levels for advisers and their clients. While there has been some noise with elevated legal and regulatory expenses this quarter and there are always some seasonal expenses that hit in the first calendar quarter of the year, none of the non-compensation expenses are coming in too much differently than we expected when we last provided guidance for the fiscal year. But legal and regulatory expenses are inherently difficult to predict.

總之，我們仍然專注於管理費用，同時繼續投資於增長並確保為顧問及其客戶提供高水平的服務。儘管本季度法律和監管費用增加引起了一些噪音，而且今年第一季度總有一些季節性費用出現，但沒有一項非補償費用與我們預期的有太大差異，當時我們最後提供了財政年度的指導。但法律和監管費用本來就很難預測。

Slide 14 shows the pretax margin trend over the past 5 quarters. In the current quarter, we generated a pretax margin of 19.4% and adjusted pretax margin of 20.4%, the strong result given the industry-wide challenges impacting capital markets.

幻燈片 14 顯示了過去 5 個季度的稅前利潤率趨勢。在本季度，我們產生了 19.4% 的稅前利潤率和 20.4% 的調整後稅前利潤率，考慮到影響資本市場的全行業挑戰，這是一個強勁的結果。

On Slide 15. At quarter end, total assets were $79 billion, a 3% sequential increase largely reflecting the $3.2 billion increase of cash balances in the Bank segment during the quarter. Liquidity and capital remains very strong. RJF corporate cash at the parent ended the quarter at $1.8 billion, well above our $1.2 billion target. Tier 1 leverage ratio of 11.5% and total capital ratio of 21.4% are both more than double the regulatory requirements to be well capitalized. The 11.5% Tier 1 leverage ratio reflects over $1 billion of excess capital above our conservative 10% target, which would still be 2x the regulatory requirement to be well capitalized. Our capital levels continue to provide significant flexibility to continue being opportunistic and invest in growth.

在幻燈片 15 上。季度末，總資產為 790 億美元，環比增長 3%，主要反映了本季度銀行部門現金餘額增加 32 億美元。流動性和資本仍然非常強勁。母公司的 RJF 公司現金在本季度結束時為 18 億美元，遠高於我們 12 億美元的目標。 11.5% 的一級槓桿率和 21.4% 的總資本比率均高於資本充足監管要求的兩倍多。 11.5% 的一級槓桿率反映了超過 10 億美元的超額資本，高於我們保守的 10% 目標，這仍然是監管要求的 2 倍，以充分資本化。我們的資本水平繼續提供顯著的靈活性，以繼續投機並投資於增長。

We were pleased to have our A- credit rating reaffirmed by Fitch in mid-March. In the announcement, Fitch cited the firm's strong capital cushion, significant deposit funding and access to unsecured debt markets, among other drivers as the reason for the rating. Also in April, we renewed our revolving credit facility and expanded it from $500 million to $750 million. A strong balance sheet and long-standing relationships with our banking partners enabled us to upsize the 5-year committed corporate revolver with enhanced terms to further strengthen our contingent liquidity sources. The ability to execute this facility in a challenging market environment is a testament to our long-term conservative approach. I know many of our bankers are listening on this call, so I'd like to thank all of you for your continued support and partnership.

我們很高興惠譽在 3 月中旬重申了我們的 A- 信用評級。在公告中，惠譽將該公司強大的資本緩衝、大量存款資金和進入無擔保債務市場的渠道等因素作為評級的原因。同樣在 4 月，我們更新了循環信貸安排，並將其從 5 億美元擴大到 7.5 億美元。穩健的資產負債表以及與銀行合作夥伴的長期關係使我們能夠擴大 5 年期承諾的企業循環貸款，並提高條款以進一步加強我們的或有流動性來源。在充滿挑戰的市場環境中執行此設施的能力證明了我們長期保守的做法。我知道我們的許多銀行家都在聽這個電話會議，所以我要感謝大家一直以來的支持和合作。

We also have other significant sources of contingent funding. For example, just to be proactive, given the market uncertainty in March, we increased our FHLB borrowings in the bank segment by only $500 million from December 31 to March 31. And given our strong cash position, we've already paid $200 million of that down in April. That leaves us more than $9 billion of FHLB capacity in the Bank segment.

我們還有其他重要的或有資金來源。例如，為了積極主動，鑑於 3 月份的市場不確定性，從 12 月 31 日到 3 月 31 日，我們在銀行部門的 FHLB 借款僅增加了 5 億美元。鑑於我們強大的現金狀況，我們已經支付了 2 億美元的那是在四月份。這使我們在銀行部門擁有超過 90 億美元的 FHLB 容量。

Slide 16 provides a summary of our capital actions over the past 5 quarters. During the fiscal second quarter, the firm repurchased 3.75 million shares of common stock for $350 million at an average price of $93 per share. As of April 26, approximately $1.1 billion remained available under the Board's approved common stock repurchase authorization. And we currently intend on continuing our planned repurchases as we discussed previously, particularly as this market volatility has provided attractive opportunities for us, and we don't plan on using as much capital to support balance sheet growth over the next 3 to 6 months.

幻燈片 16 總結了我們過去 5 個季度的資本行動。在第二財季，該公司以每股 93 美元的平均價格以 3.5 億美元的價格回購了 375 萬股普通股。截至 4 月 26 日，根據董事會批准的普通股回購授權，仍有約 11 億美元可供使用。我們目前打算繼續我們之前討論的計劃回購，特別是因為這種市場波動為我們提供了有吸引力的機會，而且我們不打算在未來 3 到 6 個月內使用盡可能多的資本來支持資產負債表的增長。

Lastly, on Slide 17, we provide key credit metrics for the Bank segment, which includes Raymond James Bank and TriState Capital Bank. The credit quality loan portfolio remains healthy. Criticized loans as a percentage of total loans held for investment ended the quarter at just 0.92%. The bank loan allowance for credit losses as a percentage of total loans held for investment ended the quarter at 0.94%. The bank loan allowance for credit losses on corporate loans as a percentage of corporate loans held for investment was 1.67% at quarter end. We believe this represents an appropriate reserve, but we are continuing to closely monitor any impacts of inflation, supply chain constraints, higher interest rates and a potential recession on our corporate loan portfolio.

最後，在幻燈片 17 上，我們提供了銀行部門的關鍵信用指標，其中包括 Raymond James Bank 和 TriState Capital Bank。信用質量貸款組合保持健康。本季度末，批評貸款佔投資貸款總額的百分比僅為 0.92%。信貸損失的銀行貸款準備金佔持有用於投資的貸款總額的百分比在本季度末為 0.94%。截至季度末，公司貸款信用損失的銀行貸款準備金佔持有用於投資的公司貸款的百分比為 1.67%。我們認為這是一個適當的準備金，但我們將繼續密切關注通貨膨脹、供應鏈限制、更高的利率和潛在的經濟衰退對我們的企業貸款組合的任何影響。

I know there's been a lot of attention on commercial real estate across the industry, given the challenges with property value and interest rates. So let me briefly cover our portfolio. Across the Bank segment, we have CRE and REIT loans approximately $8.8 billion, which represents 20% of our total loans. Our office portfolio is only 17% of these real estate loans. So our office portfolio only represents approximately 3.5% of the Bank segment's total loans. Based on the underwriting and origination along with the most recent appraisals, the average loan-to-value of this office portfolio is somewhere around 60%, which is probably a little bit higher now, given pressure on valuations in the industry, but still providing us a lot of cushion on this portfolio on average. Overall, we have deliberately limited the exposure to office real estate, and we underwrote office loans with what we believe are conservative criteria, but we continue to monitor each loan closely given the industry-wide challenges.

鑑於房地產價值和利率方面的挑戰，我知道整個行業對商業房地產的關注度很高。因此，讓我簡要介紹一下我們的投資組合。在整個銀行部門，我們擁有約 88 億美元的 CRE 和 REIT 貸款，占我們貸款總額的 20%。我們的辦公室投資組合僅佔這些房地產貸款的 17%。因此，我們的寫字樓組合僅佔銀行部門貸款總額的 3.5% 左右。根據承銷和發起以及最近的評估，該寫字樓投資組合的平均貸款價值比約為 60%，考慮到行業估值壓力，現在可能略高一些，但仍提供平均而言，我們對這個投資組合有很多緩衝。總體而言，我們有意限制了對寫字樓房地產的敞口，並以我們認為保守的標準承銷了寫字樓貸款，但鑑於整個行業面臨的挑戰，我們將繼續密切監控每筆貸款。

Now I'll turn the call back over to Paul Reilly to discuss our outlook. Paul?

現在我將把電話轉回給 Paul Reilly 來討論我們的前景。保羅？

Thank you, Paul. And as I said at the start of the call, I'm pleased with our results for the first 6 months of fiscal 2023 and our ability to generate record earnings during what continues to be a very volatile market. And while there is still a lot of near-term economic uncertainty, we are in a position of strength, and I believe we are well positioned to drive growth over the long term across all of our businesses.

謝謝你，保羅。正如我在電話會議開始時所說的那樣，我對我們 2023 財年前 6 個月的業績以及我們在仍然非常動蕩的市場中創造創紀錄收益的能力感到滿意。儘管近期經濟仍存在很多不確定性，但我們處於優勢地位，我相信我們有能力推動我們所有業務的長期增長。

In the Private Client Group, next quarter results will be favorably impacted by the 5% sequential increase of assets in fee-based accounts. However, we do expect to have some headwinds from lower RJBDP fees from third-party banks, given lower average balances. Focusing more on the long term, I'm optimistic we will continue delivering industry-leading growth as current and prospective advisers are attracted to our client-focused values and our leading technology and product solutions.

在私人客戶組，下一季度的業績將受到收費賬戶資產連續增長 5% 的有利影響。然而，鑑於平均餘額較低，我們確實預計第三方銀行的 RJBDP 費用較低會帶來一些不利因素。更著眼於長期，我樂觀地認為我們將繼續實現行業領先的增長，因為我們以客戶為中心的價值觀以及我們領先的技術和產品解決方案吸引了當前和未來的顧問。

For example, in our current adviser recruiting pipeline, we have several commitments from teams with $5 million to $20 million of annual production. In the Capital Markets segment, while M&A pipelines remain healthy and engagement levels are good, the pace and timing of launching and closing transactions will be challenged until market conditions stabilize. And in the fixed income space, the depository clients are experiencing declining deposit balances and have less cash available for investing in securities, putting pressure on our brokerage activity.

例如，在我們目前的顧問招聘渠道中，我們有幾項來自年產值 500 萬至 2000 萬美元的團隊的承諾。在資本市場領域，雖然併購管道保持健康且參與度良好，但在市場狀況穩定之前，啟動和完成交易的速度和時間將受到挑戰。在固定收益領域，存款客戶的存款餘額正在下降，可用於投資證券的現金減少，給我們的經紀活動帶來壓力。

However, SumRidge enhances our position as this business typically benefits from elevated rate volatility and has produced excellent results since joining us. While we expect continued industry-wide challenges over the next couple of quarters, over the long term, we are well positioned across the capital markets business for growth given the investments we made over the past 5 years, which have significantly increased our productive capacity and market share.

然而，SumRidge 增強了我們的地位，因為該業務通常受益於利率波動加劇，並且自加入我們以來取得了優異的成績。雖然我們預計未來幾個季度將繼續面臨全行業的挑戰，但從長遠來看，鑑於我們在過去 5 年中進行的投資顯著提高了我們的生產能力和市場份額。

We will continue to prudently manage expenses in these businesses as the near-term revenues continue to come under pressure. Obviously, we will take more significant actions if the industry headwinds prove to be more long term. In the Asset Management segment, financial assets under management are starting the fiscal third quarter, up 5% compared to the preceding quarter, which should provide a tailwind to revenues if markets remain conducive throughout the fiscal third quarter.

由於近期收入繼續面臨壓力，我們將繼續審慎管理這些業務的開支。顯然，如果行業逆風被證明是更長期的，我們將採取更重大的行動。在資產管理領域，管理的金融資產從第三財季開始，比上一季度增長 5%，如果整個第三財季市場保持有利，這應該會推動收入增長。

We remain confident that strong growth of assets in fee-based accounts in the Private Client Group segment will drive long-term growth of financial assets under management. In addition, we expect Raymond James Investment Management, which generated solid net inflows this quarter to help drive further growth through increased scale, distribution, operational and marketing synergies. In the Bank segment, our focus over the next several months will continue to be fortifying the balance sheet with diversified funding source.

我們仍然相信，私人客戶集團部分收費賬戶資產的強勁增長將推動所管理金融資產的長期增長。此外，我們預計 Raymond James Investment Management 本季度產生可觀的淨流入，將通過擴大規模、分銷、運營和營銷協同效應幫助推動進一步增長。在銀行部門，我們未來幾個月的重點將繼續通過多元化的資金來源來鞏固資產負債表。

While we'll continue to support our PCG clients when their demand for loans eventually recover, we will be very prudent in growing corporate loans given market uncertainty. We believe there will be more attractive opportunities in the future as spreads widen to reflect the higher cost of funding and our higher premium required for credit risk across the entire banking industry.

雖然我們會在 PCG 客戶的貸款需求最終恢復時繼續支持他們，但鑑於市場的不確定性，我們將非常謹慎地增加公司貸款。我們相信，隨著利差擴大以反映更高的融資成本以及我們對整個銀行業信用風險所需的更高溢價，未來將會有更多有吸引力的機會。

And just as we did during uncertain market environments in the past, we have been and will continue to be opportunistic in selling certain loans to further derisk the corporate portfolio, especially when we believe the secondary market prices do not fully reflect the downside risk. So overall, our approach to the Bank segment over the next 3 to 6 months is to build as much dry powder as possible for what we believe will be a more attractive and opportunistic environment for loan growth in fiscal 2024.

正如我們過去在不確定的市場環境中所做的那樣，我們一直並將繼續在出售某些貸款以進一步降低企業投資組合的風險時採取機會主義態度，尤其是當我們認為二級市場價格並未完全反映下行風險時。因此，總體而言，我們在未來 3 到 6 個月內對銀行部門的做法是盡可能多地建立幹火藥，以便我們認為 2024 財年的貸款增長將更具吸引力和機會主義環境。

In closing, we believe we are well positioned with strong prospects for future growth and ample cash and liquidity. Uncertain times like these are when clients need trusted advice the most. And I want to thank our advisers and their associates for their continued perseverance and dedication to providing excellent service to their clients each and every day. The strength and stability of our firm is a direct reflection of your commitment. So thank you all for all you do.

最後，我們相信我們處於有利地位，擁有強勁的未來增長前景以及充足的現金和流動性。像這樣的不確定時期是客戶最需要值得信賴的建議的時候。我要感謝我們的顧問和他們的同事，感謝他們每天堅持不懈地為客戶提供優質服務。我們公司的實力和穩定性直接反映了您的承諾。所以感謝你們所做的一切。

And with that, operator, that concludes my remarks, and we'll open up the line for questions.

接線員，我的發言到此結束，我們將打開提問熱線。

(Operator Instructions) The first question comes from the line of Devin Ryan with JMP Securities.

（操作員說明）第一個問題來自 JMP 證券公司的 Devin Ryan。

I hopped on a minute late, but I had a question just on the net interest income outlook. I just want to make sure I understood the commentary. So is the expectation that it's going to take a near-term step back and then can grow off of whatever that new base is? Or Paul, are you saying that you'll kind of resume growth off of the fiscal second quarter level? And I guess related, I heard that you're going to operate, I think, with higher reserves. So just how much of a drag is that? And I guess, what would make you comfortable bringing that down?

我遲到了一分鐘，但我只是對淨利息收入前景有疑問。我只是想確保我理解評論。那麼，是否期望它會在近期後退一步，然後可以從任何新基地中成長起來？或者保羅，你是說你會從第二財季的水平恢復增長嗎？我想相關的是，我聽說您將以更高的儲備運營。那麼這到底有多大的阻力呢？我想，什麼會讓你舒服地降低它？

Well, I'll let the other Paul go through the NIM. But I don't think we anticipate right now higher reserves -- I mean, reserve cash. Maybe we'll be carrying a little more cash, but I don't know which reserve you're referring to. So...

好吧，我會讓另一個 Paul 通過 NIM。但我認為我們現在預計不會有更高的儲備——我的意思是，儲備現金。也許我們會攜帶更多現金，但我不知道你指的是哪種儲備。所以...

Yes. I was referring to the cash reserves that you said the cash kind of liquidity.

是的。我指的是你所說的現金流動性的現金儲備。

Yes. There's more cash in the bank. Go ahead, Paul. I'll let...

是的。銀行里的錢多了。去吧，保羅。我會讓...

Yes. So we did increase the cash balances at the bank, just given the volatility in March, we thought it would be prudent. So we finished the quarter up by I think, $5 billion. So we were up $4 billion for the quarter, ending the quarter at $5 billion of cash at the Bank segment. And so that is a drag on NIM because you're earning closer to 5% on that versus the 7-or-so percent we're earning on new loans that we're putting on the book, but we think that's prudent just given the volatility.

是的。所以我們確實增加了銀行的現金餘額，只是考慮到 3 月份的波動，我們認為這是謹慎的。所以我們在本季度結束時增加了 50 億美元。因此，本季度我們增加了 40 億美元，本季度結束時銀行部門的現金為 50 億美元。所以這對 NIM 造成了拖累，因為你的收入接近 5%，而我們在賬簿上的新貸款中獲得的收入是 7% 左右，但我們認為這是謹慎的波動性。

And in terms of the outlook going forward, near term, we do expect a pullback of net interest income and BDP fees when you look at those on a combined basis. We plan on keeping the cash swept to third-party banks at around the current level just because we think that $9 billion gives us a nice cushion. It also offers clients maximum FDIC insurance, which we all know is really important for clients right now. And so by doing that, even at $9 billion, those fees are probably going to be down. The average balances will be down 25% sequentially.

就未來前景而言，短期內，當您綜合考慮這些因素時，我們確實預計淨利息收入和 BDP 費用會回落。我們計劃將流向第三方銀行的現金保持在當前水平左右，因為我們認為 90 億美元給了我們一個很好的緩衝。它還為客戶提供最大的 FDIC 保險，我們都知道這對客戶來說非常重要。因此，通過這樣做，即使是 90 億美元，這些費用也可能會下降。平均餘額將連續下降 25%。

And so those fees will be down 25% roughly depending on what happens with rates and other things. And then the net interest income will be pressured by having higher cash balances and then higher cost of funding that we raised since launching the Enhanced Savings Program in March. So all net together, I think that would result in probably somewhere around a 10% decline sequentially. And then as we start growing balances from there, then that would be probably a good jumping off point.

因此，這些費用將大致下降 25%，具體取決於利率和其他因素的變化。然後，淨利息收入將受到更高現金餘額的壓力，然後是我們自 3 月份啟動增強型儲蓄計劃以來籌集的更高資金成本。所以總的來說，我認為這可能會導致環比下降 10% 左右。然後當我們從那裡開始增加餘額時，那可能是一個很好的起點。

Got it. Okay. Great color. I guess maybe just I want to follow up on the same topic. And probably, you just mentioned the Enhanced Savings Program. It looks like you're having some nice success there. And I'm assuming that it's still reasonably early in terms of the adviser penetration. So just love to maybe talk about kind of the expectation for growth there. And maybe could advisers be more active moving their customers' cash there in the near term, just given that it's new. And so that could pressure the -- I guess, the rate on the liability side, or do you have data that's just suggesting that the majority of the yield-seeking cash has already moved out of the accounts?

知道了。好的。很棒的顏色。我想也許我只是想跟進同一主題。您可能剛剛提到了增強型儲蓄計劃。看起來你在那裡取得了一些不錯的成功。而且我假設就顧問滲透率而言還處於相當早的階段。所以只是喜歡談論對那裡增長的期望。考慮到它是新的，顧問可能會在短期內更積極地將客戶的現金轉移到那裡。因此，這可能會給負債方面的利率帶來壓力，或者您是否有數據表明大部分尋求收益的現金已經從賬戶中轉移出來？

I would tell you when we look at sort of the trends, it looks like a lot of the sorting activity the higher yield seeking activity has occurred. When we rolled out the Enhanced Savings Program in March, it was actually to new money to the firm until we expanded it in April to certain security sales and new money to the bank. But we raised $2.7 billion of brand-new flows to the firm during the month of March. And most of it was mid-March during the banking turmoil. So we were pleased to see that those cash balances come in. But even there we're close to $5 billion today of these balances.

我會告訴你，當我們查看某種趨勢時，看起來很多排序活動都發生了尋求更高收益的活動。當我們在 3 月份推出增強型儲蓄計劃時，它實際上是為公司提供新資金，直到我們在 4 月份將其擴展到某些證券銷售和向銀行提供新資金。但我們在 3 月份為公司籌集了 27 億美元的全新資金。其中大部分是在銀行業動盪期間的 3 月中旬。因此，我們很高興看到這些現金餘額出現。但即便如此，我們今天的這些餘額也接近 50 億美元。

That represents roughly 10% of the sweep and enhanced yield savings balances, whereas most of our peers are at 50% of their balances being in enhanced yield savings. So our relative cost of funds when you look at those 2 balances together is still very attractive even though we've been able to be more generous to clients on the sweep balances in terms of passing on rates via the sweeps as well. So we feel like we're well positioned. And right now, what we're really hoping to do is a lot of clients hold money market fund positions and would prefer to have FDIC insurance. And so a lot of those balances now are moving to the enhanced yield savings, which we think is really a win-win for the clients and the firm.

這大約佔掃描和增強收益儲蓄餘額的 10%，而我們大多數同行的餘額中有 50% 用於增強收益儲蓄。因此，當您同時查看這兩個餘額時，我們的相對資金成本仍然非常有吸引力，即使我們在通過掃描傳遞利率方面也能夠對掃描餘額的客戶更加慷慨。所以我們覺得我們的定位很好。而現在，我們真正希望做的是很多客戶持有貨幣市場基金頭寸，並且更願意擁有 FDIC 保險。因此，現在很多餘額都轉向了提高收益的節省，我們認為這對客戶和公司來說確實是雙贏的。

And the next question comes from the line of Kyle Voigt with KBW.

下一個問題來自 Kyle Voigt 與 KBW 的對話。

Maybe just a first question on the leverage ratio, obviously, sitting at 11.5%. Just curious whether you still feel that 10% target is a good level to think about as a near-term target, especially with the macro environment and kind of the uncertainty that we're facing with the macro right now?

也許只是關於槓桿率的第一個問題，顯然是 11.5%。只是好奇你是否仍然認為 10% 的目標是一個可以考慮作為近期目標的好水平，尤其是在宏觀環境和我們目前面臨的宏觀不確定性的情況下？

Yes. that's the hard one to peg with what's happening today in the press, even we're going to be more cautious until the industry is sorting down and we see kind of a level field. We think that the 10% is a good target. But in the short term, we're probably not going to be overaggressive to it, especially if we're not growing the bank aggressively. We don't think that's the smart move right now. We will continue to let SBL balances and mortgage our client balances fund those, those are the priority.

是的。這是很難與今天媒體上發生的事情掛鉤的，即使我們會更加謹慎，直到行業正在整理並且我們看到某種水平的領域。我們認為 10% 是一個很好的目標。但在短期內，我們可能不會對其過於激進，特別是如果我們不積極發展銀行的話。我們認為現在這不是明智之舉。我們將繼續讓 SBL 餘額和抵押我們的客戶餘額為這些資金提供資金，這些是優先事項。

We're not sure it's a good time to get into the -- increasing the corporate side of the lending right now just because of the market. So shorter term, I think the capital ratio is going to be over the 10%, but we're not going to change the goal, but during the volatility like we've seen with today's news and other things, we're going to be cautious until we're pretty comfortable the market has settled down.

我們不確定現在是否是進入的好時機 - 現在只是因為市場而增加貸款的企業方面。所以短期內，我認為資本比率將超過 10%，但我們不會改變目標，但在我們今天的新聞和其他事情所看到的波動期間，我們將在我們對市場穩定下來感到非常滿意之前要保持謹慎。

And the only thing I would add to that is a lot of other banks have to worry about the impact of unrealized losses on their securities portfolio. And we have some of those as well, obviously. But I think we would be north of 10%, even if we factored in all of those losses because we kept duration relatively contained on our balance sheet. So we're in a position of strength when you look at our capital ratios and feel like we have a lot of flexibility.

我唯一要補充的是，許多其他銀行不得不擔心未實現損失對其證券投資組合的影響。顯然，我們也有其中一些。但我認為我們將超過 10%，即使我們將所有這些損失都考慮在內，因為我們將久期控制在資產負債表中。因此，當您查看我們的資本比率並感覺我們有很大的靈活性時，我們處於優勢地位。

Great. And then just maybe a follow-up question to that. Just with your stock price where it's at today. Obviously, in the first quarter -- calendar first quarter, you were up the buyback a bit here. But just wondering if you can kind of compare the current valuation of your stock to maybe any opportunities that you're seeing in the M&A market. If you kind of could expand upon some of those opportunities that you're seeing? And what segments you're seeing more opportunity in light of everything that's happening in the banking space as well, that would be helpful.

偉大的。然後可能只是一個後續問題。就看你今天的股價。顯然，在第一季度 - 日曆第一季度，你在這裡回購了一點。但只是想知道您是否可以將您股票的當前估值與您在併購市場中看到的任何機會進行比較。您是否可以擴展您所看到的其中一些機會？鑑於銀行領域正在發生的一切，你看到哪些細分市場有更多機會，這將有所幫助。

Yes. We've done a really good job of staying close to the people that we would like to join the firm and those opportunities are clearly up and that includes the M&A and the private client space. Again, whether they get transactable because of price or other issues or some are more complex than others. But those conversations that kind of went away, some have come back. But price adjustments to the buyer and the seller are always in line and expectation with the market. As we've said in here, don't expect a near-term increase in our M&A volume until this market settles out.

是的。我們在與我們想加入公司的人保持密切聯繫方面做得非常好，這些機會顯然正在增加，其中包括併購和私人客戶領域。同樣，它們是否因為價格或其他問題而變得可交易，或者有些比其他的更複雜。但是那些談話已經消失了，有些又回來了。但買賣雙方的價格調整始終符合市場預期。正如我們在這裡所說的那樣，在這個市場穩定下來之前，不要指望我們的併購量近期會增加。

I think lending has to kind of return, and that's not -- in our view not going to happen until we see interest rates settle and people get used to it. So -- but we think there will be M&A opportunity. We have both the capital and liquidity to handle that. Our balance sheet, as you know, is very leveraged, and we have access. So we're -- as most downturns, we've been able to take advantage of the market, our presumption as we would be able to. But again, that all depends on buyers and sellers and opportunities and other factors in the market.

我認為貸款必須有某種回報，但在我們看來，這種回報不會發生，直到我們看到利率穩定下來並且人們習慣了它。所以 - 但我們認為會有併購機會。我們有資本和流動性來處理這個問題。如您所知，我們的資產負債表槓桿率很高，我們可以訪問。所以我們 - 與大多數經濟低迷一樣，我們已經能夠利用市場，我們能夠做到的假設。但同樣，這一切都取決於買家和賣家以及市場中的機會和其他因素。

And the next question comes from the line of Alex Blostein with Goldman Sachs.

下一個問題來自高盛的 Alex Blostein。

So can we start with the outlook for NII? If I heard you correctly, I think you guys have gotten to down 10% firm-wide NII. Can you help with some of the underlying assumptions in terms of NIM firm-wide and maybe how are you thinking about the ultimate amount of cash that you need to run with on the balance sheet. And obviously, it would be helpful to know what you're assuming for interest rates for the second quarter underpinning the 10% decline?

那麼我們可以從 NII 的前景開始嗎？如果我沒聽錯的話，我認為你們已經將公司範圍內的 NII 降低了 10%。您能否就全公司 NIM 方面的一些基本假設提供幫助，也許您如何考慮您需要在資產負債表上運行的最終現金量。顯然，了解您對支撐 10% 下降的第二季度利率的假設會很有幫助嗎？

Yes, the 10% decline, Alex, includes the BDP fees as well. So it's kind of a combined basis as we show it in the presentation. And that factors in the 25 basis point increase that the market is expecting in May. And so in terms of the cash that we plan on holding on the bank's balance sheet, we plan on holding more than we need for -- during these volatile times, more than we hopefully need during these volatile times, just to stay prudent. And as Paul said, we're being deliberate in growing corporate loans, and we're being actually opportunistic in selling corporate loans. So not much balance sheet growth forecasted over the next -- at least during this period of volatility.

是的，Alex，10% 的降幅也包括 BDP 費用。因此，正如我們在演示文稿中展示的那樣，它是一種綜合基礎。並且市場預期 5 月份將增加 25 個基點。因此，就我們計劃在銀行資產負債表上持有的現金而言，我們計劃持有超過我們需要的現金——在這些動盪時期，超過我們希望在這些動盪時期需要的現金，只是為了保持謹慎。正如保羅所說，我們正在故意增加公司貸款，而我們實際上是在投機取巧地出售公司貸款。因此，預計接下來的資產負債表增長不會太多——至少在這段動盪時期是這樣。

And in some cases, for example, we've already sold over $400 million of corporate loans that we had rated lower from a credit perspective. And we're able to get near par value for those loans. We had marks on them that were higher than what the price we were able to get. So we don't believe that the market is fully factoring in potentially the downside risk on certain loans. And so just as we've done in other volatile periods, we're sort of being opportunistic, knowing that we're just building dry powder, both capital and hopefully funding dry powder to accelerate growth when the opportunities look more attractive.

在某些情況下，例如，我們已經出售了超過 4 億美元的公司貸款，這些貸款我們從信用角度來看評級較低。而且我們能夠獲得接近這些貸款的面值。我們在他們身上的標記高於我們能夠得到的價格。因此，我們認為市場並未充分考慮某些貸款的潛在下行風險。因此，就像我們在其他動盪時期所做的那樣，我們有點機會主義，知道我們只是在建造乾粉，既有資本，也有希望在機會看起來更有吸引力時為乾粉提供資金以加速增長。

Got you. Okay. Yes. Combined makes a lot more sense. I appreciate that. My second question was around non-comp expenses. And I appreciate that you guys think this is close to what you were budgeting for. But if we look at non-comp ex provisions and backing out the $20 million of the arbitration fee, it looks like it was up almost $30 million sequentially. So maybe help us reconcile what's driving the growth? And just given your outlook for effectively peak rates revenues in a challenging capital markets backdrop, when should we expect you guys to become a little bit more aggressive on cost savings initiatives?

明白了好的。是的。結合起來更有意義。我很感激。我的第二個問題是關於非補償費用。我很感激你們認為這接近你們的預算。但是，如果我們查看非補償性條款並取消 2000 萬美元的仲裁費用，它看起來連續上漲了近 3000 萬美元。那麼也許可以幫助我們調和推動增長的因素？鑑於你們在充滿挑戰的資本市場背景下對有效峰值利率收入的展望，我們什麼時候應該期望你們在成本節約舉措上變得更加積極？

Yes. The first 2 quarters are always a little bit lumpy in terms of the non-compensation expenses. So if you look at it kind of on a combined basis, backing out the acquisition-related costs and backing out the loan loss provision, which is how we made the guidance, it was around, I think, $830 million for the first 6 months of the year, which actually trends lower than the $1.7 billion guidance I provided for the non-comp expenses, excluding provision.

是的。就非補償費用而言，前兩個季度總是有點起伏不定。因此，如果你綜合來看，扣除收購相關成本和貸款損失準備金，這就是我們制定指導的方式，我認為前 6 個月約為 8.3 億美元今年的實際趨勢低於我為非補償費用提供的 17 億美元指導，不包括準備金。

So we still -- we're not changing that guidance for the time being because none of the -- other than legal and regulatory, which is inherently unpredictable, and we had a $20 million arbitration award, which we were not expecting, obviously, this quarter. We are -- most of the other line items are kind of coming in, in line with what we forecasted when we provided that guidance. But of course, if things change between now and the next 6 months of the fiscal year, then we certainly will update that and let you all know.

所以我們仍然 - 我們暫時不會改變該指南，因為沒有 - 除了法律和監管，這本質上是不可預測的，而且我們有 2000 萬美元的仲裁裁決，這顯然是我們沒有預料到的，這個季度。我們 - 大多數其他項目都在某種程度上進入，與我們提供該指導時的預測一致。但是，當然，如果從現在到財政年度的下 6 個月之間情況發生變化，那麼我們肯定會更新並讓大家知道。

I think that comparison was -- looks bigger because of the $30 million last year -- last quarter recovery that we non-GAAP to. But it's -- we think they're in line. And yes, legal fees certainly were higher. That settlement was higher but that's really driving, and that's kind of lumpy. We think the run rate and the guidance is still in the ballpark from what we can see.

我認為這種比較 - 由於去年的 3000 萬美元 - 看起來更大 - 我們非 GAAP 的上個季度復甦。但它 - 我們認為他們是一致的。是的，法律費用肯定更高。那個定居點更高，但這確實在推動，而且有點起伏不定。我們認為，從我們所看到的情況來看，運行率和指導仍在大致範圍內。

And with that being said, while it's coming in line with what we expected, we're also, given the market environment, going to be very deliberate in managing all those expenses while still investing in growth in high service levels.

話雖這麼說，雖然它符合我們的預期，但考慮到市場環境，我們也會非常謹慎地管理所有這些費用，同時仍然投資於高服務水平的增長。

And the next question comes from the line of Bill Katz with Credit Suisse.

下一個問題來自瑞士信貸的 Bill Katz。

Maybe stepping back and perhaps it's just too soon to tell. As you think about some of the structural changes that may evolve for the banking industry on the other side of the banking collapse and maybe your early-stage conversation with the regulators, how do you see the evolution for regulatory capital or leverage ratios. Does that affect your 10% bogey? And then maybe how you think about long-term growth in earning assets and NIM associated with that.

也許退後一步，也許現在下結論還為時過早。當您考慮銀行業崩潰的另一端銀行業可能發生的一些結構性變化，以及您與監管機構的早期對話時，您如何看待監管資本或槓桿率的演變。這會影響你的 10% 柏忌嗎？然後也許你如何看待與此相關的收入資產和 NIM 的長期增長。

Well, first, on capital, I think even at 10%, we're well set over what anyone is -- our competitors and other things. We're -- we think that's still a very conservative target. We can't see any regulation that would make anything even close to that. So we'd still have buffer there. So we're not worried about capital. .

好吧，首先，在資本方面，我認為即使是 10%，我們對任何人的身份——我們的競爭對手和其他事情——都有很好的認識。我們 - 我們認為這仍然是一個非常保守的目標。我們看不到任何可以使任何事情更接近於此的法規。所以我們在那裡仍然有緩衝區。所以我們不擔心資本。 .

Like everything, given the environment, we've been focused on liquidity, that's why we rolled out the Enhanced Savings Program and are very heartened that even after the quarter we paid our $1.2 billion in Asset Management fees come out of there. We had tax payments that usually go over $1 billion. Our cash balances are still steady. So on the liquidity side, the question is just how much do we have to raise in the higher-yielding programs, but we feel good about our liquidity and not even touching our -- really, our FHLB advances or that $9 billion buffer.

像所有事情一樣，考慮到環境，我們一直專注於流動性，這就是我們推出增強型儲蓄計劃的原因，並且非常高興的是，即使在本季度之後，我們支付了 12 億美元的資產管理費用。我們繳納的稅款通常超過 10 億美元。我們的現金餘額仍然穩定。因此，在流動性方面，問題是我們必須在高收益計劃中籌集多少資金，但我們對我們的流動性感覺良好，甚至沒有觸及我們的——實際上，我們的 FHLB 預付款或 90 億美元的緩衝。

So third then becomes is when you start investing in that order when you start investing in the growth in assets and in the bank, that we're just going to have to decide. We're not going to be really aggressive. Where we see opportunities, we could -- we'll take them. If we see M&A opportunities we think are good, we'll act on them, and we just don't think, given the bad banking market, rising rates and if people are predicting in a recessionary environment, it's the time to be very aggressive in growing corporate loans. So I would say we're -- our growth plans are not really to expand the balance sheet much this next quarter.

所以第三個就是當你開始投資於資產和銀行的增長時，你開始按那個順序投資，我們將不得不決定。我們不會真的咄咄逼人。在我們看到機會的地方，我們可以——我們會抓住它們。如果我們看到我們認為好的併購機會，我們就會採取行動，我們只是不認為，鑑於糟糕的銀行市場、利率上升以及如果人們預測經濟衰退，現在是時候非常激進了在增加企業貸款方面。所以我想說我們 - 我們的增長計劃並不是要在下個季度擴大資產負債表。

I think you asked a question about the future NIM prospects for the industry. And I think the banking industry is pretty efficient. The good news is we already have a very conservative level of capital. So I think we're well -- as Paul said, well positioned for those changes. But to the extent the capital rules do change or increase and certainly the cost of the average deposit in the industry as all the big banks were saying, even the largest banks were saying that's increasing as well, then you would expect, all else being equal, for spreads to expand across the industry to preserve a reasonable NIM and a reasonable return on equity for the industry. And so to the extent that we can be patient now and wait for more attractive opportunities at least a more stable environment, we think that will serve our shareholders well over the long term.

我想你問了一個關於該行業未來 NIM 前景的問題。我認為銀行業效率很高。好消息是我們已經擁有非常保守的資本水平。所以我認為我們很好——正如保羅所說，我們為這些變化做好了準備。但就資本規則確實發生變化或增加的程度而言，當然還有所有大銀行所說的行業平均存款成本，即使是最大的銀行也表示這也在增加，那麼你會期望，其他一切都相同，以擴大整個行業的利差，以保持合理的 NIM 和行業的合理股本回報率。因此，就我們現在可以耐心等待更有吸引力的機會（至少是更穩定的環境）而言，我們認為這將長期為我們的股東服務。

I think if you really look at the industry over the last few years, certainly, deposits were extremely cheap and rates are going up. But honestly, spreads weren't really what you'd expected historically given the types of loans folks were making. So it's natural in this kind of environment where people are being careful and the cost for funds are higher that I think spreads are going to expand. We believe that. So we can't say when, but we believe that will happen, and that's why we'll be a little more prudent in the next quarter or 2 with the balance sheet as we watch what happens in the market. We've shown also in the other times, whether we sold off COVID loans or other things during those periods, we found -- we've shown we can expand the balance sheet pretty quickly. So we're not worried about that. We're just worried about making sure we do it in the right environment.

我認為，如果你真正審視過去幾年的行業，肯定會發現存款非常便宜，而且利率正在上漲。但老實說，考慮到人們提供的貸款類型，利差並不是你從歷史上所期望的那樣。因此，在這種人們謹慎且資金成本較高的環境中，我認為利差會擴大是很自然的。我們相信。所以我們不能說什麼時候，但我們相信這會發生，這就是為什麼我們會在下一季度或第二季度對資產負債表更加謹慎，因為我們會觀察市場上發生的事情。我們在其他時間也展示了，無論我們在那些時期出售了 COVID 貸款還是其他東西，我們發現——我們已經展示了我們可以很快擴大資產負債表。所以我們對此並不擔心。我們只是擔心確保我們在正確的環境中進行。

Understood. Just a quick follow-up and just a jumping one point there. As you think about maybe Paul, if you could just unpack, I think I understand the difference between the sort of the bank versus the third-party sweep impact, but maybe unpack maybe where you are on a spot basis for the NIM? And as you think about this year, how to think about maybe earning asset levels, because I hear a couple of different things about cautious loan growth, maybe some runoff in the corporate loan portfolio from sales, maybe some shrinkage on the investment securities book, how to think about maybe framing where the end year might be in terms of your associated with that.

明白了。只是一個快速的跟進，只是一個跳躍的點。正如你所想的那樣，保羅，如果你能解壓，我想我理解銀行類型與第三方清掃影響之間的區別，但也許解壓你在 NIM 的現場基礎上？想想今年，如何考慮盈利資產水平，因為我聽到了一些關於謹慎貸款增長的不同說法，可能是公司貸款組合因銷售而流失，可能是投資證券賬簿有所縮水，如何根據您與之相關的情況來考慮可能構建結束年份的位置。

Hard to know where we're going to be, a lot can change as we've learned in the last month or 2, a lot can change certainly in the next 6 months. And we're going to, as Paul said, we're going to be there for our clients in the Private Client Group business. Half of our loans are securities-based loans and mortgages and to the extent demand picks back up over the next 6 months. Now they've been pressured in the higher in a rising rate environment, but demand could come back if clients get used to the new normal in terms of rates, and we want to be there to support them.

很難知道我們會去哪裡，正如我們在上一兩個月了解到的那樣，很多事情都會發生變化，未來 6 個月肯定會發生很多變化。正如保羅所說，我們將在私人客戶集團業務中為我們的客戶服務。我們一半的貸款是基於證券的貸款和抵押貸款，並且在未來 6 個月內需求回升的範圍內。現在他們在利率上升的環境中承受著更高的壓力，但如果客戶習慣了利率方面的新常態，需求可能會回升，我們希望在那里為他們提供支持。

As Paul said, we'll also be more conservative in sort of growing corporate loans, at least until we have a better conviction around the risk-adjusted returns and growing that book. So in terms of the jumping off NIM. And I would expect, just with the higher cash balances and the higher cost of funding, which again, we -- our patience has served us well with the higher cost of funding as well because, again, like I said, we only have 10% of our sweep and enhanced yield savings balances in the enhanced yield savings program. Many of our competitors are at 40% or 50%. So we have a lot of ability to grow those balances. But as we grow those balances, it would pressure NIM. So we think there's probably 20 basis points or so of pressure in the upcoming quarter, maybe up to 30 basis points, again, depending on what happens with the rate increases. And now again, that's due to the higher funding sources and elevated cash balances that we plan on holding on the balance sheet.

正如保羅所說，我們在增加公司貸款方面也會更加保守，至少在我們對風險調整後的回報和增長賬簿有更好的信心之前是這樣。所以在跳出 NIM 方面。而且我預計，隨著現金餘額的增加和融資成本的增加，我們的耐心對我們的融資成本也有所幫助，因為就像我說的那樣，我們只有 10增強收益儲蓄計劃中我們清掃和增強收益儲蓄餘額的百分比。我們的許多競爭對手都在 40% 或 50%。因此，我們有很大的能力來增加這些餘額。但隨著我們增加這些餘額，它會給 NIM 帶來壓力。因此，我們認為下個季度可能存在 20 個基點左右的壓力，可能高達 30 個基點，這取決於加息的情況。現在，這又是由於我們計劃在資產負債表上持有的資金來源增加和現金餘額增加。

And the next question comes from the line of Manan Gosalia with Morgan Stanley.

下一個問題來自 Manan Gosalia 與摩根士丹利的對話。

Can you take us through what happened with cash sorting in March? And maybe since then -- and I ask because you noted in your press release last month that cash balances as of March 21 were near $51 billion. So it looks like about $1.5 billion flowed out in the last week if you exclude the Enhanced Savings Program. So maybe take us through what you were hearing from FAs and customers back then? And what gives you the confidence that this will slow from here?

你能給我們介紹一下 3 月份現金分類的情況嗎？也許從那時起——我問是因為你在上個月的新聞稿中指出，截至 3 月 21 日的現金餘額接近 510 億美元。因此，如果排除增強型儲蓄計劃，上周流出的資金大約為 15 億美元。那麼，也許可以帶我們了解一下您當時從 FA 和客戶那裡聽到的內容？是什麼讓你有信心從這裡開始放緩？

Yes. I would say just jumping to kind of where we are today, for example. So we ended the quarter with sweep balances and Enhance Savings Program balances at $52.2 billion. You fast forward to where we are today, and we're right around $52 billion of sweep and Enhanced Saving Program balances, and that reflects the fee billing that we do quarterly, which was over $1.2 billion and also annual income tax payments. So we feel comfortable and confident that the sorting dynamic is closer to the end than it has been to the beginning, as I said on the comments. The average cash per account in the sweep program now is right around $15,000, which is sort of a low point as far as we look back and have that data. So we're confident, but things are closer to the end, but we don't know how much longer, obviously, that dynamic will continue. Meanwhile, we'll continue to be -- offer attractive products to our clients that give them good yields and give them good FDIC coverage to keep deposit balances as strong as we can.

是的。例如，我想說只是跳到我們今天所處的位置。因此，我們在本季度末的清算餘額和增強儲蓄計劃餘額為 522 億美元。你快進到我們今天所處的位置，我們大約有 520 億美元的掃描和增強儲蓄計劃餘額，這反映了我們每季度進行的費用計費，超過 12 億美元以及年度所得稅支付。因此，正如我在評論中所說，我們感到舒服和自信的是，排序動態比開始時更接近結束。現在掃描計劃中每個賬戶的平均現金約為 15,000 美元，就我們回顧和掌握該數據而言，這是一個低點。所以我們有信心，但事情已經接近尾聲，但我們不知道這種動態顯然會持續多久。與此同時，我們將繼續——為我們的客戶提供有吸引力的產品，讓他們獲得良好的收益，並為他們提供良好的 FDIC 保險，以盡可能保持強勁的存款餘額。

And I think you asked what the FA reaction there has been. Look, their job was to invest idle cash and they put it in money markets, and they didn't leave the system. They put it in money markets and they put it in treasuries and CDs to get yields and they said just give us the yield. We like the program. So once we rolled it out, it always had money flowing in. And so our job is to manage just how much of it we really need. It's in the system, we have a very good product and we're just going to have to balance that given operations. We feel very comfortable at our levels right now and with the reserves we have on top that we really haven't touched. So I think it's going to be just the process of managing how much of the higher cost funds you need given the movement in the market. So...

我想你問過英足總的反應是什麼。看，他們的工作是投資閒置現金，並將其投入貨幣市場，他們並沒有離開這個系統。他們將其投入貨幣市場，將其投入國債和 CD 以獲得收益，他們說只要給我們收益。我們喜歡這個節目。所以一旦我們推出它，它總是有資金流入。所以我們的工作是管理我們真正需要的資金量。它在系統中，我們有一個非常好的產品，我們只需要平衡給定的操作。我們現在在我們的水平上感到非常自在，而且我們擁有我們真正沒有觸及的最高儲備。因此，我認為這將只是管理您需要多少高成本資金的過程，考慮到市場的變化。所以...

One other metric that I think is pertinent on this topic is sort of the deposit -- aggregate deposit beta since rates started rising. And really, you have to look at it both at the sweep program and also adding the Enhanced Savings Program balances. And on a spot basis, that aggregate deposit beta has only been for us 25% to 30%. And we bet, which is lower than the competitors that we've seen so far. Again, they have a much higher mix of the higher cost funding at this juncture. And that's with us being able to be more generous to our clients than most of our competitors in the sweep program. So to the extent that we have to raise some incremental higher cost deposits, 25% to 30% aggregate deposit beta at this point is much lower than I think we all expected at this point in the cycle. So we have a lot of kind of capacity and bandwidth to add higher cost funding, while still generating attractive returns.

我認為與該主題相關的另一個指標是存款——自利率開始上升以來的總存款 beta。實際上，您必須同時查看清掃計劃和添加增強型儲蓄計劃餘額。而在現貨基礎上，總存款貝塔對我們來說只有 25% 到 30%。我們打賭，這低於我們迄今為止看到的競爭對手。同樣，此時他們擁有更高成本資金的更高組合。這就是我們能夠比抽獎計劃中的大多數競爭對手更慷慨地對待我們的客戶。因此，就我們必須增加一些增量的較高成本存款而言，此時 25% 至 30% 的總存款貝塔比我認為我們在周期的這一點預期的要低得多。所以我們有很多能力和帶寬來增加更高成本的資金，同時仍然產生有吸引力的回報。

That's helpful. And maybe as a related question then. Can you talk about the percentages on the third-party bank fee rates from here as we think over the next few quarters? So after the Fed stops hiking rates, I'm assuming that deposit betas will continue to rise and be a drag. But I guess, at the same time, the demand for these deposits will also likely be strong. Is there some offset from the 12.5 basis points or so of spread that you make on that portfolio?

這很有幫助。也許作為一個相關的問題。在我們考慮接下來的幾個季度時，您能否從這裡談談第三方銀行費率的百分比？因此，在美聯儲停止加息後，我假設存款貝塔係數將繼續上升並成為拖累。但我想，與此同時，對這些存款的需求也可能會很強勁。您對該投資組合的 12.5 個基點左右的利差是否有一些抵消？

There's no doubt. I mean, there's huge demand for deposits in the system. So to the extent you have cash, banks are hungry for it. So the question is, what happens with rates and you would assume with that demand, you might get the spread should increase, right? So yes. So if the Fed stops raising or you have a recessionary cash returning out of the markets back into the regular sweep programs and deposit programs, you think you -- our prediction is you would -- those spreads would increase, but we're not there at this point today. So it's really hard looking forward right now. I -- if we want to look forward a year or so, we feel a lot more comfortable than next quarter just because we've been in the middle, since March, of a very dynamic market.

毫無疑問。我的意思是，系統中對存款的需求很大。因此，只要你有現金，銀行就渴望得到它。所以問題是，利率會發生什麼變化，你會假設這種需求會導致利差增加，對吧？所以是的。因此，如果美聯儲停止加息，或者你有經濟衰退的現金從市場返回到常規掃描計劃和存款計劃，你認為你——我們的預測是你會——這些利差會增加，但我們沒有今天的這個時候。所以現在真的很難期待。我——如果我們想展望一年左右，我們會比下個季度感到舒服得多，因為自 3 月以來，我們一直處於一個非常活躍的市場的中間。

It sounds like balances are relatively flat and third-party bank fees should also be relatively flat beyond the second quarter?

聽起來餘額相對持平，第三方銀行費用在第二季度之後也應該相對持平？

You have to look at the average. The average balances will be down 25% even if we keep them flat with where they ended the quarter. So -- but beyond that, then it just depends on where is the balance. The balances will drive it more so than the spreads that we earn from the third-party banks, I guess, is the easiest way to describe it.

你必須看平均值。即使我們將它們與本季度結束時的水平持平，平均餘額也會下降 25%。所以 - 但除此之外，它只取決於平衡在哪裡。我想，餘額將比我們從第三方銀行賺取的利差更能推動它，這是最簡單的描述方式。

Yes. Got it. Perfect. And then just a quick clarification on the office portfolio. You mentioned an LTV of 60%. How much of that is based on new appraisals versus valuation at the time the loan was made?

是的。知道了。完美的。然後只是對辦公室組合的快速澄清。你提到了 60% 的 LTV。其中有多少是基於新的評估與貸款時的估值？

It's a little bit of both, both on the -- to the extent that we have new appraisals that's factored into it. But I mean I think you can assume, as I said in the prepared remarks, that valuations are probably lower now than even that new appraisal base. So -- but the point being is we still have a reasonable cushion and underwrote those properties conservatively. But we also expect there to be some challenges if the economy continues to soften, particularly for real estate.

兩者兼而有之，就我們有新的評估因素而言。但我的意思是，我認為你可以假設，正如我在準備好的評論中所說，現在的估值可能甚至低於新的評估基礎。所以 - 但關鍵是我們仍然有合理的緩衝並保守地承銷這些財產。但我們也預計，如果經濟繼續疲軟，尤其是房地產，將會面臨一些挑戰。

And in that percentage too, to the extent that you have REIT loans, we are -- even our experience in '08 and '09 was that those diverse portfolios came through pretty well. And then when you have single property loans, you're more idiosyncratic, and so you just have to watch. But our total mix of commercial office is relatively low for any bank. So...

而且在這個百分比上，就您擁有 REIT 貸款而言，我們是——甚至我們在 08 年和 09 年的經驗是，這些多樣化的投資組合表現得非常好。然後，當你有單一財產貸款時，你會變得更加古怪，所以你只需要觀察。但對於任何一家銀行來說，我們的商業辦公室總組合都相對較低。所以...

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

下一個問題來自 Seaport Global 的 Jim Mitchell。

Just maybe circling back on Enhanced Savings Program, maybe a clarification, Paul. Are you saying in March, you had restrictions that required net new money and now those restrictions are off? And if that's the case, how do you dial that back if you want to? Is it just price? Or I just want to make sure I understood what you're saying on the enhanced savings product.

保羅，也許只是回到增強型儲蓄計劃，也許是一個澄清。你是說在三月份，你有需要淨新資金的限制，現在這些限制已經取消了嗎？如果是這樣的話，如果你想的話，你怎麼撥回去？只是價格嗎？或者我只是想確保我理解您所說的有關增強型儲蓄產品的內容。

The restrictions are where we opened it up for sales of certain securities for people that wanted to move from money markets back into cash, which is the only reason the money markets was the spread. So we've opened that up. And we have 2 choices. We can say -- we've given time limits. If we need more, we can extend the time limits. Or if we want to cut it off, we can cut it off or you can always do that with rate and let it find seek its own level. So we have all those options. And we're just watching the balances. We're comfortable at these cash balances. We're actually comfortable lower, but at Raymond James we always seem to be accused of having excess capital and excess balances. So we'll just dial it back or stop it, or if we open it up to other securities type, if you really need it, and there's treasuries, there's CDs, there's other things that have stayed on the system seeking yield. So we have a lot of flexibility. It just depends how much we need.

這些限制是我們為那些想從貨幣市場轉回現金的人銷售某些證券而開放的，這是貨幣市場成為價差的唯一原因。所以我們已經打開了它。我們有 2 個選擇。我們可以說——我們已經給出了時間限制。如果我們需要更多，我們可以延長時間限制。或者如果我們想切斷它，我們可以切斷它，或者你總是可以用速率來做，讓它找到自己的水平。所以我們有所有這些選擇。我們只是在觀察餘額。我們對這些現金餘額感到滿意。我們實際上很舒服，但在 Raymond James，我們似乎總是被指責擁有過多的資本和過多的餘額。所以我們會把它撥回去或停止，或者如果我們把它開放給其他證券類型，如果你真的需要它，還有國債，CD，還有其他的東西留在系統上尋求收益。所以我們有很大的靈活性。這取決於我們需要多少。

Okay. So is the strategy from here if and when we start to see sweep balances stabilize, and it sounds like at least the outflows are slowing a little bit in April. We'll see if that continues. But if that does stabilize, do you sort of -- is this a level of deposits that you're comfortable with, you would sort of stop or slow the enhanced savings if you could stabilize all-in cash levels at the -- at current levels? Is this the defending level that you're thinking about?

好的。如果我們開始看到清算餘額穩定下來，那麼從這裡開始的策略也是如此，而且聽起來至少 4 月份的資金流出正在放緩。我們將看看這種情況是否會繼續下去。但如果這確實穩定下來，你是否有點 - 這是一個你滿意的存款水平，如果你可以將所有現金水平穩定在 - 當前，你會停止或減緩增加的儲蓄水平？這是您考慮的防禦級別嗎？

We think we're at a level -- even when we were at the end of the quarter when we dropped below 50%, we were fine. But we'll keep it until we have extra in this environment. We'd rather -- if more flows in, we'll keep it for a while. You can always again lower rate, have it flow out to other yielding instruments. But yes, we're not trying to get it back into the 70s, that's for sure. We had excess too much cash then, but there was no place to put it. But I think somewhere in the 50s level, we'll try to -- we would start slowing it down.

我們認為我們處於一個水平——即使當我們在本季度末下降到 50% 以下時，我們也很好。但我們會保留它，直到我們在這種環境中有更多的東西。我們寧願——如果有更多的資金流入，我們會保留一段時間。你總是可以再次降低利率，讓它流出到其他收益工具。但是，是的，我們並沒有試圖讓它回到 70 年代，這是肯定的。那時我們的現金太多了，但沒有地方放。但我認為在 50 年代的某個地方，我們會嘗試——我們會開始放慢速度。

And the next question comes from the line of Brennan Hawken with UBS.

下一個問題來自瑞銀集團的 Brennan Hawken。

One, just -- it sounded like from Paul Shoukry's comments on the comp ratio that if -- unless we see some kind of substantial change in Capital Markets environment that the comp ratio is probably -- this is probably a reasonable zone to think about until that inflects. Number one, is that right? And then if we do see a recovery in the Capital Markets revenue, what kind of order of magnitude would you expect to feed through and pull down that comp ratio?

一，只是 - 從 Paul Shoukry 對薪酬比率的評論來看，如果 - 除非我們看到資本市場環境發生某種實質性變化，薪酬比率可能 - 這可能是一個值得考慮的合理區域，直到屈折變化。第一，對嗎？然後，如果我們確實看到資本市場收入出現復甦，您希望通過什麼樣的數量級來推動並拉低該補償比率？

Yes. I mean it's a mix -- it's always complicated because the revenue mix matters when you talk about our comp ratio. So we expect PCG revenues to be up given the higher fees -- assets and fee-based accounts. But that has a higher compensation ratio associated with it than our net NII does, obviously. And so -- but again, to the extent Capital Markets revenues rebound to the healthier levels, not even record levels that they were enjoying in the last couple of years, but just healthy levels, then that would be -- that would result, all else being equal, in an improvement to the comp ratio.

是的。我的意思是這是一種混合——它總是很複雜，因為當你談論我們的補償比率時，收入組合很重要。因此，我們預計 PCG 收入會增加，因為費用較高——資產和收費賬戶。但這顯然比我們的淨 NII 具有更高的相關補償率。因此 - 但同樣，如果資本市場收入反彈到更健康的水平，甚至不是他們在過去幾年中享受的創紀錄水平，而是健康水平，那就是 - 這將導致，所有在其他方面相同的情況下，補償比率有所提高。

So again, it's just hard given the revenue mix, I think 63% roughly for us historically has been very low, and that's been helped by the high levels of interest income and BDP fees that are not directly compensable to the producers. But I think the revenue mix going forward will dictate what the result will be. I think, anywhere close to 63%. Again, our guidance was 66% or lower just a year ago -- a little bit more than a year ago, and that would have been historically a pretty attractive place to be. I'm not saying that's where we're going to get to. But if we can stay anywhere close to this range, we'd be pleased with that.

因此，再次考慮到收入組合，這很難，我認為我們歷史上大約 63% 的比例非常低，這得益於高水平的利息收入和 BDP 費用，這些費用不能直接補償給生產者。但我認為未來的收入組合將決定結果。我認為，接近 63%。同樣，一年前我們的指導是 66% 或更低——比一年前多一點，從歷史上看，這本來是一個非常有吸引力的地方。我並不是說那是我們要去的地方。但如果我們能保持在接近這個範圍的任何地方，我們就會很高興。

Got it. Okay. Yes, that makes sense with the 10% decline in NII and RJBDP. So one more on cash and deposit dynamics. I'm sorry, it's been a real dead horse to beat here. But you gave the trends quarter-to-date in the Enhanced Program, which is really helpful. Could you also speak to like overall trends in cash quarter-to-date? And then if what we're seeing in the Enhanced Program would be selling out of the purchased money fund and into the deposit program, wouldn't then we see you moving in the direction of the peers. Paul Shoukry, I think you commented a few times on how you're at 10 and peers are at 50. Does that mean you're going to converge to that level? Or would you be pulling on some of those price and other levers that you referenced before to prevent that from happening?

知道了。好的。是的，NII 和 RJBDP 下降 10% 是有道理的。因此，關於現金和存款動態的更多信息。對不起，在這裡打敗它真是一匹死馬。但是你在增強計劃中給出了季度最新趨勢，這真的很有幫助。您能否談談季度至今的現金總體趨勢？然後，如果我們在增強計劃中看到的是出售購買的貨幣基金並進入存款計劃，那麼我們不會看到您朝著同行的方向前進。 Paul Shoukry，我想你曾多次評論過你是 10 歲，而同齡人是 50 歲。這是否意味著你會收斂到那個水平？或者您會利用您之前提到的一些價格和其他槓桿來防止這種情況發生嗎？

So the #1 thing in the banking business I think maybe people forgot over the last decade is liquidity and protecting stable deposits. So that's #1. So that's -- it really depends on the deposit level. And to the extent we've given kind of a general target to you on the deposit levels, you just -- you have to compete with rate and to grow them unless market conditions change, and we don't know when that will happen. So yes, if the market keeps doing that, my guess is ours will go up over 10 and theirs will go up over 50 because to get the deposits reprice and repricing more, that's going to be a trend for everybody. It will be industry-wide. If it's idiosyncratic for one institution for some reasons that they need a lot more, it's going to go up higher.

因此，我認為在過去十年中人們可能忘記了銀行業務中的第一件事是流動性和保護穩定存款。這就是#1。那就是——這真的取決於存款水平。就我們在存款水平上給你的一般目標而言，你只是 - 你必須與利率競爭並增加它們，除非市場條件發生變化，我們不知道什麼時候會發生。所以是的，如果市場繼續這樣做，我的猜測是我們的將上漲超過 10，而他們的將上漲超過 50，因為要讓存款重新定價並重新定價，這將成為每個人的趨勢。這將是全行業的。如果一個機構出於某種原因需要更多的東西是特殊的，那麼它會上升得更高。

So a lot of that's market dynamic. I think the biggest thing people forget, when we limited kind of the money we put into banks for many years at 50%. And then when TriState joined, we upped it. We have less leverage. About 70% of our deposits go roughly to our banks. We have competitors at 90%. And if you're up and it's not a criticism there, but if you're at 90%, you got to be more aggressive for funding. We have more of a buffer. So we'll just watch it and play it by ear and watch it closely and do what we have to do to make sure we maintain liquidity and the outcome will be how much of higher cost deposits we have to have, but we're not doing it just to raise costs. We're only going to do that if we need it.

所以很多都是市場動態。我認為人們忘記的最重要的事情是，當我們將多年來存入銀行的資金限制在 50% 時。然後當 TriState 加入時，我們提高了它。我們的影響力較小。我們大約 70% 的存款大致都流向了我們的銀行。我們有 90% 的競爭對手。如果你起來了，那不是批評，但如果你達到 90%，你就必須更積極地爭取資金。我們有更多的緩衝區。所以我們只是觀察它，見機行事，仔細觀察，做我們必須做的事情，以確保我們保持流動性，結果將是我們必須擁有多少更高成本的存款，但我們不是這樣做只是為了增加成本。我們只會在需要時這樣做。

And the only other thing I'll add to that is we have over $40 billion of purchased money market funds or our clients have over $40 billion of purchase money market funds on the platform. So all the cash really stayed within the system. To the extent that -- and we earn very little on those purchased money market funds as a firm. So to the extent that our clients prefer to have the FDIC insurance at the attractive rate that we would be willing to offer that we are offering today then it could really be a win-win for the client and for the firm because now that cash, even though it's higher cost of funding relative to our sweeps can give us -- generate more economics than staying in the purchase money market fund. So you kind of have to look at the holistic picture to determine whether or not it's really a win-win. And as Paul said earlier, we always strive to look for those win-win opportunities for both clients, advisers and the firm.

我要補充的唯一一件事是我們擁有超過 400 億美元的購買貨幣市場基金，或者我們的客戶在平台上擁有超過 400 億美元的購買貨幣市場基金。所以所有的現金都留在了系統中。在某種程度上——作為一家公司，我們從那些購買的貨幣市場基金中賺取的收入很少。因此，如果我們的客戶更願意以我們今天願意提供的有吸引力的利率購買 FDIC 保險，那麼這對客戶和公司來說真的是雙贏，因為現在現金，儘管相對於我們的掃描來說，它的融資成本更高，但它可以給我們帶來比留在購買貨幣市場基金中更多的經濟效益。所以你必須從整體上看才能確定它是否真的是雙贏的。正如保羅之前所說，我們始終努力為客戶、顧問和公司尋找雙贏的機會。

And part of the comfort we've had is just our nature. When you looked at Raymond James Bank history, they have about 95% of the deposits insured. We went way out of our way and paid money in programs to make sure they were insured just as a matter of course, we weren't worried about uninsured deposits a few years ago when deposits were flushed. But typical for us, we just look down range and say, okay, for the premium, it's worth it to have for clients to be protected, and I think it keeps our funding sources more stable.

我們所擁有的部分舒適感就是我們的天性。當你查看 Raymond James Bank 的歷史時，他們為大約 95% 的存款提供了保險。我們不遺餘力地在計劃中支付資金，以確保他們理所當然地獲得保險，幾年前當存款被沖走時，我們並不擔心沒有保險的存款。但對我們來說，典型的做法是，我們只是低估範圍，然後說，好吧，為了保費，保護客戶是值得的，我認為這讓我們的資金來源更加穩定。

Okay. Thanks for that color. That's helpful. And also for the added points on your philosophy. Could you touch on the point about overall cash trends quarter-to-date beyond just the Enhanced?

好的。謝謝你的顏色。這很有幫助。也為你的理念加分。您能否談談除了增強版之外的季度至今的整體現金趨勢？

Yes. As I said, we are today right around where we ended the quarter. We're right around $52 billion of sweep and Enhanced Savings Program balances. I think the Enhanced Savings Program balances are over $4.5 billion. And again, to be flat in the month of April with the tax payments and the quarterly fee billings, we think is a good result and hopefully portends well for the dynamic going forward.

是的。正如我所說，我們今天就在我們結束本季度的地方。我們大約有 520 億美元的掃描和增強儲蓄計劃餘額。我認為 Enhanced Savings Program 的餘額超過 45 億美元。再一次，4 月份的納稅和季度費用賬單持平，我們認為這是一個很好的結果，並希望預示著未來的動態。

And there are no further questions at this time. I will now turn the presentation back to the speakers.

目前沒有其他問題。我現在將演示文稿轉回演講者。

Yes. Good. Thank you all for joining us. I know you're all busy given all the dynamics in the market. So obviously, an uncertain market. But again, I think the conservative way we run the firm really puts us in good shape. We are at our conference with 4,000 advisers here and there. Pretty excited. So it's nice to be here. Thanks for joining us, and we'll talk to you all soon.

是的。好的。謝謝大家加入我們。鑑於市場的所有動態，我知道你們都很忙。很明顯，這是一個不確定的市場。但同樣，我認為我們經營公司的保守方式確實讓我們處於良好狀態。我們參加會議時有 4,000 名顧問參會。很興奮。所以很高興來到這裡。感謝您加入我們，我們很快就會與您交談。

That does conclude today's conference. We thank you for your participation and ask that you please disconnect your lines.

今天的會議到此結束。我們感謝您的參與，並請您斷開您的線路。