富國銀行 (WFC) 2024 Q2 法說會逐字稿

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Welcome to today's session. Wells Fargo 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be your question and answer session. If you would like to ask a question during this time, simply press star one. If you would like to withdraw your question, press star two. Please note that today's call is being recorded. I would now like to turn the call over to John Campbell, Director of Investor Relations. Sir, you may begin the conference.

歡迎參加今天的會議。富國銀行 2024 年財報電話會議。 所有線路均已靜音，以防止任何背景噪音。 演講者發言後，將進行問答環節。 如果您想在此期間提問，只需按星號一即可。 如果您想撤回問題，請按星號二。 請注意，今天的通話正在錄音。 我現在想將電話轉給投資者關係總監約翰坎貝爾 (John Campbell)。 主席先生，您可以開始會議了。

Good morning, everyone. Thanks for joining our call today by our CEO, Charlie Scharf; and our CFO, Mike Santomassimo, the CFO, will discuss second quarter results and answer your questions. This call is being recorded.

大家，早安。 感謝我們的執行長 Charlie Scharf 今天加入我們的電話會議；我們的財務長 Mike Santomassimo 將討論第二季的業績並回答您的問題。 此通話正在錄音。

Before we get started, I would like to remind you that our second-quarter earnings materials, including the release, financial supplement and presentation deck, are available on our website at wellsfargo.com. I'd also like to caution you that we may make forward-looking statements during today's call that are subject to risks and uncertainties.

在我們開始之前，我想提醒您，我們的第二季度收益資料，包括新聞稿、財務補充和簡報，可在我們的網站 wellsfargo.com 上取得。 我還想提醒您，我們可能在今天的電話會議中做出前瞻性聲明，這些聲明有風險和不確定性。

Factors that may cause actual results to differ materially from expectations are detailed in our SEC filings. Including the Form eight K filed today containing our earnings materials. Information about any non-GAAP financial measures referenced, including a reconciliation of those measures to GAAP measures, can also be found in our SEC filings and the earnings materials available on our website. I will now turn the call over to Charles.

我們向 SEC 提交的文件中詳細介紹了可能導致實際結果與預期有重大差異的因素。 包括今天提交的 8 K 表格，其中包含我們的收入資料。 有關所引用的任何非 GAAP 財務指標的信息，包括這些指標與 GAAP 指標的調節，也可以在我們向 SEC 提交的文件和我們網站上提供的收益資料中找到。 我現在會把電話轉給查爾斯。

Thanks, John. As usual, I'll make some brief comments about our second quarter results and update you on our priorities. I'll then turn the call over to Mike to review our results in more detail before we take your questions.

謝謝，約翰。 像往常一樣，我將對我們第二季的業績發表一些簡短的評論，並向您介紹我們的優先事項的最新情況。 然後，在回答您的問題之前，我會將電話轉給麥克，以便更詳細地查看我們的結果。

So let me start with some second-quarter highlights for financial performance. In the quarter benefited from our ongoing efforts to transform Wells Fargo. We continue to generate strong fee-based revenue growth with increases across most categories compared to a year ago due to both the investments we're making in our businesses and favorable market conditions, with particular strength in investment advisory trading activities and investment bank. These results more than offset the expected decline in net interest income.

讓我先介紹第二季財務表現的一些亮點。 本季受益於我們對富國銀行轉型的持續努力。 由於我們對業務的投資和有利的市場條件，尤其是在投資諮詢交易活動和投資銀行方面的優勢，我們繼續實現強勁的收費收入增長，大多數類別的收入都比一年前有所增長。 這些結果足以抵銷淨利息收入的預期下降。

Credit performance during the second quarter was consistent with our expectations, sewers and benefited from strong labor market and wage increases. Their performance of our consumer auto portfolio continue to improve, reflecting prior credit tightening actions, and we had net recoveries in our home lending portfolio. While losses in our credit card portfolio increases expected early delinquency performance.

第二季的信貸表現與我們的預期一致，並受益於強勁的勞動市場和薪資上漲。 我們的消費性汽車投資組合的表現持續改善，反映了先前的信貸緊縮行動，而且我們的房屋貸款投資組合出現了淨復甦。 雖然我們信用卡投資組合的損失增加了預期的早期拖欠表現。

Our recent vintages was aligned with expectations in our commercial portfolios. Losses continued to be driven by commercial real estate office properties where we expect losses to remain lumpy. Fundamentals in the institutional owned office real estate market continued to deteriorate as lower appraisals reflects the weak market. Many large Metropol and areas across the country. However, they still remain within the assumptions we made when setting our allowance for credit losses. We continue to execute on our efficiency initiatives, which is driven head count to decline for 16 consecutive quarters.

我們最近的年份與我們的商業投資組合的預期一致。 商業房地產辦公物業持續造成虧損，我們預計虧損將持續大幅成長。 機構擁有的辦公室房地產市場的基本面繼續惡化，因為較低的評估反映了市場疲軟。 全國許多大都會和地區。 然而，它們仍然處於我們在設定信用損失準備金時所做的假設範圍內。 我們持續執行效率舉措，導致員工數量連續 16 個季度下降。

Average commercial and consumer loans were both down from the first quarter. The higher interest rate environment in anticipation of rate cuts continued to result in tepid commercial loan demand, and we have not changed our underwriting standards to chase growth. Balanced growth in our credit card portfolio was more than offset by declines in US or other consumer portfolios. Average deposits grew modestly from the first quarter with higher balances in all of our consumer facing lines of businesses.

平均商業和消費貸款均較第一季下降。 降息預期下的高利率環境持續導致商業貸款需求不溫不火，我們並沒有改變承保標準以追求成長。 我們信用卡組合的平衡成長被美國或其他消費者組合的下降所抵消。 平均存款較第一季小幅成長，所有面向消費者的業務線餘額均增加。

Now let me update you on our strategic priorities, starting with our risk control, where we are different Wells Fargo. When I arrived, our operational and compliance risk and control buildout is our top priority and will remain so until all deliverables are completed and we embed this mindset into our culture similar to the discipline we have for financial and credit risk today, we continue to make progress by completing deliverables that are part of our plants. The numerous internal metrics we track show that the work is clearly improving our control environment. While we see clear forward momentum, it's up to our regulators to make your own judgments and decide when the work is done to their satisfaction.

現在讓我向您介紹我們的策略重點，從我們的風險控制開始，我們是不同的富國銀行。 當我到達時，我們的營運和合規風險與控制建設是我們的首要任務，並將一直如此，直到所有可支付成果完成，我們將這種思維方式融入到我們的文化中，類似於我們今天對財務和信用風險的紀律，我們將繼續透過完成屬於我們工廠一部分的可交付成果來取得進展。 我們追蹤的眾多內部指標表明，這項工作明顯改善了我們的控制環境。 雖然我們看到了明顯的前進動力，但我們的監管機構應該做出自己的判斷並決定何時完成工作讓他們滿意。

Progress has not been easy for tens of thousands of my partners at Wells. Part of that now worked tirelessly for years to deliver the kind of change necessary for a company of our size and complexity. And we will not rest until we satisfy the expectations of our regulators and the high standards we set for ourselves. While we have made substantial changes and have meaningfully improved our control environment, the industry operates in a heightened regulatory oversight environment. We remain at risks of further regulatory actions.

對於我在威爾斯的數萬名合作夥伴來說，取得進展並不容易。 其中一部分多年來不知疲倦地工作，為我們這樣規模和複雜的公司帶來了必要的改變。 在滿足監管機構的期望和我們為自己設定的高標準之前，我們不會休息。 儘管我們做出了重大改變並顯著改善了我們的控制環境，但該行業在嚴格的監管環境中運作。 我們仍面臨進一步監管行動的風險。

We are also different Wells Fargo and how we are executing on other strategic priorities to better serve our customers and helped drive higher returns over time. Let me highlight a few examples of the progress we're making for diversified revenue sources and reducing our reliance and net interest income.

我們也與富國銀行不同，我們如何執行其他策略重點，以更好地服務我們的客戶，並隨著時間的推移幫助推動更高的回報。 讓我重點介紹幾個例子，說明我們在實現收入來源多元化以及減少依賴和淨利息收入方面所取得的進展。

We are improving our credit card platform with more competitive offerings, which is both which is important, both for our customers and strategically for the company. During the second quarter, launch new credit cards, a small business card and consumer board. Since 2021, we have launched nine new credit cards are almost complete in our initial product build out. The momentum in this business has demonstrated by continued strong credit card spend and new account growth.

我們正在透過更具競爭力的產品來改進我們的信用卡平台，這對我們的客戶和公司的策略都很重要。 第二季推出新的信用卡、小型商務卡和消費卡。 自 2021 年以來，我們推出了九張新信用卡，初步產品建置已基本完成。 持續強勁的信用卡支出和新帳戶成長證明了該業務的勢頭。

We are not lowering our credit standards, but see that our strong brand and a great value proposition are being well received by the market. Building. The largest credit card business is an investment as new products have significant upfront costs related to marketing program rates, onboarding and allowance, which drive build profitability in a row three years long as our assumptions on spin balanced growth and credit continue to play out.

我們不會降低信用標準，但看到我們強大的品牌和卓越的價值主張受到市場的好評。 建築。 最大的信用卡業務是一項投資，因為新產品具有與行銷計劃費率、入職和津貼相關的大量前期成本，只要我們對旋轉平衡增長和信貸的假設繼續發揮作用，這將連續三年推動盈利能力的提高。

As expected, we expect the card business were meaningfully contribute to profit growth in the future as the portfolio matures, we've been methodically growing our corporate investment bank, which has been a priority and continues to be a significant opportunity for us.

正如預期的那樣，我們預計隨著投資組合的成熟，卡業務將對未來的利潤增長做出有意義的貢獻，我們一直在有條不紊地發展我們的企業投資銀行，這一直是我們的首要任務，並將繼續成為我們的重要機會。

We are executing on a multiyear investment plan while maintaining our strong risk discipline and our positive momentum continues. We have added significant talent of the past several years and will continue to do so in targeted areas where we see opportunities for growth. Fernando Rivas recently joined Wells Fargo as co-CEO, corporate investment banking. Fernando has deep knowledge of our industry and his background and skills to complement the terrific team. John Weiss has put together.

我們正在執行一項多年投資計劃，同時保持嚴格的風險紀律，我們的積極勢頭仍在繼續。 過去幾年，我們增加了大量人才，並將繼續在我們看到成長機會的目標領域中這樣做。 費爾南多·里瓦斯 (Fernando Rivas) 最近加入富國銀行 (Wells Fargo)，擔任企業投資銀行業務聯席執行長。 費爾南多對我們的行業有著深入的了解，他的背景和技能可以補充這支出色的團隊。 約翰韋斯已經整理好了。

While we view our work here as a long-term commitment, we expect to see results in the short and medium term and are encouraged by the improved performance we've already seen with strong growth in investment banking fees during the first half of the year. In our wealth and investment management business. We have substantially improved advisor retention and have increased the focus on serving independent advisors and our consumer banking clients, which should ultimately help drive growth in the commercial bank.

雖然我們將這裡的工作視為一項長期承諾，但我們預計會在短期和中期看到成果，並且我們對上半年投資銀行費用強勁增長所看到的業績改善感到鼓舞。 在我們的財富和投資管理業務中。 我們大幅提高了顧問的保留率，並更加重視為獨立顧問和消費者銀行客戶提供服務，最終將有助於推動商業銀行的成長。

We are focused on growing our treasury management business, adding bankers to cover segments where we are up underpenetrated and delivering our Investment Banking and Markets capabilities to clients and believe we have significant opportunities in the years ahead, and we continue to see significant opportunities for consumer small business banking franchise to be a more important source of growth.

我們專注於發展我們的資金管理業務，增加銀行家來涵蓋我們尚未滲透的領域，並向客戶提供我們的投資銀行和市場能力，並相信我們在未來幾年擁有重大機遇，並且我們繼續看到消費者的重大機會小企業銀行業務特許經營將成為更重要的成長來源。

Can we give you just a few examples? So the things we're doing here, we continue to optimize and invest in our branch network. While our branch count declined 5% from a year ago, we are being more strategic about branch location strategy.

我們可以舉幾個例子嗎？ 因此，我們在這裡所做的事情是繼續優化和投資我們的分支機構網路。 雖然我們的分公司數量比一年前減少了 5%，但我們在分公司選址策略上更具策略性。

We are accelerating our efforts to refurbish our branches, completing 296 during the first half of this year and are on track to update all of our branches with the next five years as part of our efforts to enhance the branch experience, we are also increasing our investment in our French employees and improving technology, including a new digital account of the experience, which has been a positive for both our bankers and our customers.

我們正在加快分行翻新工作，今年上半年已完成 296 家分行，並預計在未來五年內更新所有分行，作為提升分行體驗的一部分，我們也在增加對我們法國員工的投資和改進技術，包括新的數位體驗帳戶，這對我們的銀行家和客戶來說都是正面的。

We continue to have strong growth in mobile users with active mobile customers up 6% from a year ago. A year after launching Fargo, our AI-powered virtual systems, we have had nearly 15 billion users and over 117 million interactions. We expect this momentum to continue as we make further enhancements to offer our customers. Additional self-service features and value added insights, including back balance trends and subscription sensing.

我們的行動用戶持續強勁成長，活躍行動客戶較去年同期成長 6%。 在推出人工智慧驅動的虛擬系統 Fargo 一年後，我們已經擁有近 150 億用戶和超過 1.17 億次互動。 我們預計，隨著我們進一步增強為客戶提供的服務，這種勢頭將繼續下去。 額外的自助服務功能和增值見解，包括餘額趨勢和訂閱感知。

Looking ahead, overall, US economy remains strong, driven by labor market and solid growth. However, the economy is slowing and there are continued headwinds from still elevated inflation and elevated interest rates as managers of large complex financial institution.

展望未來，整體而言，在勞動市場和穩健成長的推動下，美國經濟依然強勁。 然而，經濟正在放緩，作為大型複雜金融機構的管理者，通貨膨脹率和利率仍然居高不下，持續存在阻力。

We think about both the risks and the opportunities and to be prepared to the downside while continually building our ability to serve customers and binds the actions we have taken to strengthen the company to help prepare us for a variety of economic environments. And while risks exist, we see significant opportunities in front of us, our commitments and the progress we are making to build an appropriate operational and compliance risk management framework is foundational for our company, and we will continue to prioritize and dedicate all necessary resources to complete our work.

我們既考慮風險，又考慮機遇，做好應對下行的準備，同時不斷增強服務客戶的能力，並結合我們為增強公司實力而採取的行動，幫助我們為各種經濟環境做好準備。 儘管存在風險，但我們看到了擺在我們面前的重大機遇，我們的承諾以及我們在建立適當的營運和合規風險管理框架方面所取得的進展是我們公司的基礎，我們將繼續優先考慮並投入所有必要的資源完成我們的工作。

We have a diversified business model, see opportunities to build a broader earnings stream and are seeing the early progress in our results. And we have maintained its strong financial risk disciplines and a strong balance sheet operating with a strong capital position and anticipate in anticipation of the uncertainty. The stress test regime imposes on large banks and the potential for increases to our regulatory capital requirements resulting from Basel three finalization has served us well to also allows us to serve our customers' financial needs, and we remain committed to prudently return excess capital to our shareholders.

我們擁有多元化的業務模式，看到了建立更廣泛盈利來源的機會，並看到了我們業績的早期進展。 我們保持了嚴格的金融風險紀律和強大的資產負債表，擁有強大的資本狀況，並對不確定性進行了預期。 壓力測試制度對大型銀行施加壓力，巴塞爾三號最終確定可能會增加我們的監管資本要求，這對我們很有幫助，也使我們能夠滿足客戶的財務需求，我們仍然致力於審慎地將多餘資本返還給我們的銀行。

As we previously announced, we expect to increase our third quarter common stock dividend by 14% to $0.4 per share, subject to the approval by the company's Board of Directors at its regularly scheduled meeting later this month. We've repurchased over 12 billion of common stock during the first half of this year. And while the pace will slow, we have the capacity to continue repurchasing stock. I'm proud of the progress we continue to make and thankful to everyone who works at Wells Fargo. I'm excited about the opportunities ahead. I'll now turn the call over to Mike.

正如我們之前宣布的，我們預計將第三季普通股股息增加 14% 至每股 0.4 美元，但須經公司董事會在本月稍後的定期會議上批准。 今年上半年我們回購了超過 120 億股普通股。 雖然步伐會放緩，但我們有能力繼續回購庫存。 我為我們不斷取得的進步感到自豪，並感謝在富國銀行工作的每個人。 我對未來的機會感到興奮。 我現在將電話轉給麥克。

Thank you, Charlie, and good morning, everyone. Net income for the second quarter was $4.9 billion, or $1.33 per diluted common share. EPS grew from both the first quarter a year ago, reflecting the solid performance in our fee-based businesses as we benefited from the market environment and the investments we've been making. We also continue to focus on driving efficiency across the Company.

謝謝你，查理，大家早安。 第二季淨利為 49 億美元，即稀釋後普通股每股 1.33 美元。 每股盈餘較去年第一季均有所成長，反映出我們的收費業務表現穩健，受惠於市場環境和我們一直在進行的投資。 我們也持續致力於提高整個公司的效率。

I will also note that our second quarter effective income tax rate reflected the impact of the first quarter adoption of the new accounting standard for renewable energy tax credit investments, which increased our effective tax rate by approximately three percentage points versus a year ago. This increase in the effective tax rate at a minimal impact on income since it had an offsetting increase to non-interest income.

我還要指出的是，我們第二季的有效所得稅率反映了第一季採用再生能源稅收抵免投資新會計準則的影響，這使我們的有效稅率比一年前增加了約三個百分點。 有效稅率的增加對收入的影響很小，因為它抵消了非利息收入的增加。

Turning to slide 4. As expected, non-interest income went down, net interest income was down $1.2 billion or 9% from a year ago. This decline was driven by higher funding costs, including the impact of lower deposit balances and customers migrating to higher yielding deposit products in our consumer businesses and higher deposit costs in our commercial businesses as well as lower loan balances. This was partially offset by higher yields on earning assets.

轉向幻燈片 4。 這一下降是由於融資成本上升造成的，包括存款餘額減少和客戶轉向我們消費業務中收益率更高的存款產品的影響，以及我們商業業務中存款成本上升以及貸款餘額下降的影響。 這被獲利資產收益率上升部分抵銷。

Net interest income declined $304 million or 2% from the first quarter. Given the higher higher rate environment. Niek commercial loan demand loan balances continued to decline.

淨利息收入較第一季下降 3.04 億美元，或 2%。 鑑於較高的較高利率環境。 尼克商業貸款需求貸款餘額持續下降。

As expected, we saw positive trends, including average deposit balances growing from first quarter with growth in all of our customer facing businesses, including within our consumer business. Customer migration into higher-yielding alternatives was also lower in the quarter slowed the pace of growth in deposit pricing with our average deposit cost up 10 basis points in the second quarter after increasing 16 basis points in the first quarter.

正如預期的那樣，我們看到了積極的趨勢，包括平均存款餘額從第一季開始成長，以及我們所有面向​​客戶的業務（包括我們的消費者業務）的成長。 本季客戶向高收益另類投資的遷移率也較低，減緩了存款定價的成長速度，我們的平均存款成本在第一季增加 16 個基點後，在第二季上漲了 10 個基點。

If the Fed were to start cutting rates later this year, we expect that deposit pricing will begin to decline with the most immediate impact from new promotional rates in our consumer business and standard price and for commercial deposits for pricing new faster as rates increased, and we would expect based off of the higher as rates decline.

如果聯準會今年稍晚開始降息，我們預計存款定價將開始下降，我們的消費者業務和標準價格的新促銷利率以及商業存款隨著利率上升而更快地定價，將產生最直接的影響，我們預計，隨著利率下降，利率將會上升。

On slide 5, we highlight loans and deposits. Average loans were down from both the first quarter a year ago. Credit card loans continue to grow while most other categories declined. Holly, highly specific drivers. When discussing our operating segment results, average deposits were relatively stable from a year ago as growth in our commercial businesses and corporate funding offset declines in our consumer businesses, driven by customers migrating the higher-yielding alternatives and continued to consumer spending.

在幻燈片 5 上，我們重點介紹了貸款和存款。 第一季平均貸款均較去年同期下降。 信用卡貸款持續成長，而大多數其他類別貸款則下降。 霍莉，高度具體的驅動程式。 在討論我們的營運部門表現時，平均存款與一年前相比相對穩定，因為我們的商業業務和企業融資的成長抵消了我們消費者業務的下降，這是客戶遷移更高收益的替代品並繼續轉向消費支出的推動。

Average deposits grew $4.9 billion in the first quarter. Commercial deposits have grown for three consecutive quarters as we've successfully attract clients operational deposits after declining for nearly two years. Consumer deposit balances grew modestly from the first quarter through seen outflows slow as many rate seeking customers, and we'll open it up.

第一季平均存款成長 49 億美元。 商業存款連續三個季度成長，操作性存款在連續下降近兩年後成功吸引客戶。 由於許多尋求利率的客戶的流出放緩，消費者存款餘額從第一季開始溫和增長，我們將開放它。

Management have already moved into cash alternative products, and we've successfully used promotion and retention oriented strategies to retain the farming balances and consumer small business banking fees. Improved deposit trends allowed us to reduce higher cost deposit funding. The migration from noninterest-bearing to interest-bearing deposits was similar to last quarter with our percentage of non-interest bearing deposits declined 26% in the third quarter of 25%.

管理層已經轉向現金替代產品，我們已經成功地使用促銷和保留為導向的策略來保留農業餘額和消費者小型企業銀行費用。 存款趨勢的改善使我們能夠降低較高的存款融資成本。 從無息存款向有息存款的遷移與上季度相似，我們的無息存款比例從第三季的 25% 下降了 26%。

Turning to noninterest income on Slide 6. Noninterest income increased 19% from a year ago with growth across most categories, reflecting both the benefit of the investments we've been making in our businesses as well as market conditions.

轉向幻燈片 6 上的非利息收入。

As Charlie highlighted, this growth more than offset the expected decline in interest income with revenue increasing from a year ago. Sixth consecutive quarter of year-over-year revenue growth. I will highlight the specific charges growth when discussing our operating segments for us.

正如查理所強調的那樣，隨著收入較上年同期增加，這一增長足以抵消利息收入的預期下降。 連續第六個季度營收年增。 在為我們討論我們的營運部門時，我將強調具體費用成長。

Turning to expenses on slide 7. Second quarter noninterest expense increased 2% from a year ago, driven by higher operating losses and increase in revenue related compensation and higher technology and equipment expense. These increases were partially offset by the impact of efficiency initiatives, including lower salary expense and professional and outside services expense.

轉向幻燈片 7 中的費用。 這些成長部分被效率措施的影響所抵消，包括降低薪資費用以及專業和外部服務費用。

Operating losses increased from a year ago and included higher customer remediation accruals for a small number of historical matters that we are working hard to get behind us. The 7% decline in noninterest expense in the first quarter was primarily driven by seasonally higher personnel expense in the first quarter.

營運損失較一年前有所增加，其中包括我們正在努力解決的少數歷史問題的應計客戶補救費用增加。 第一季非利息費用下降 7%，主要是因為第一季人員費用季節性上升。

Turning to credit quality on slide 8. Net loan charge-offs increased seven basis points from the first quarter to 57 basis points of average loans. The increase was driven by higher commercial net loan charge-offs, which were up $127 million in the first quarter to 35 basis points of average loans, primarily reflecting higher losses in our real estate office portfolio, while losses in the commercial real estate office portfolio increased in the second quarter after our expectation continues to be, we continue to actively work to de-risk our office exposure, including a rigorous monitoring process. These efforts helped to reduce our office commitment by 13% in loan balances by 9% from a year ago.

轉向幻燈片 8 上的信貸品質。 這一增長是由商業淨貸款沖銷增加推動的，第一季沖銷增加了1.27 億美元，達到平均貸款的35 個基點，主要反映了我們的房地產辦公投資組合的虧損增加，而商業房地產辦公投資組合的虧損在我們繼續預期的情況下，第二季的風險增加，我們繼續積極努力降低我們的辦公室風險，包括嚴格的監控流程。 這些努力幫助我們的辦公室承諾比一年前減少了 13%，貸款餘額減少了 9%。

Consumer net loan charge-offs increased $25 million from the first quarter to 80 basis points of average levels. Auto losses continued to decline and benefiting from the credit tightening actions we implemented starting in late 2021. The increase in credit card losses was in line with our expectations as older vintages are no longer are benefiting from pandemic. Stimulus has more recent vintages and as more recent vintages mature. Importantly, the credit performance of our newer vintages has been consistent with our expectations, and we currently expect the credit card charge-off rate of decline in the third quarter. Nonperforming assets increased 5% for the fourth quarter, driven by the higher commercial real estate office nonaccruals.

消費者淨貸款沖銷較第一季增加 2,500 萬美元，達到平均 80 個基點。 汽車損失持續下降，受益於我們從 2021 年底開始實施的信貸緊縮行動。 刺激有更近期的年份，並且隨著更近期的年份成熟。 重要的是，我們較新年份的信貸表現與我們的預期一致，我們目前預計第三季信用卡沖銷率將下降。 由於商業房地產辦公室非應計費用增加，第四季度不良資產增加​​了 5%。

Moving to slide 9, our allowance for credit losses was down modestly from the first quarter, driven by declines across most asset classes, partially offset by a higher allowance for credit card loans driven by higher balances. Our allowance coverage for total loans has been relatively stable over the past four quarters as credit trends remain generally consistent, our allowance coverage for our commercial real estate office portfolio has also been relatively stable at approximately 11% for the past several quarters.

轉向投影片 9，我們的信貸損失準備金較第一季小幅下降，這是由大多數資產類別下降所推動的，但部分被餘額增加推動的信用卡貸款準備金增加所抵消。 由於信貸趨勢大致保持一致，我們的總貸款撥備覆蓋率在過去四季相對穩定，我們的商業房地產辦公室投資組合的撥備覆蓋率在過去幾個季度也相對穩定，約為 11%。

Turning to capital liquidity on Slide 10. Our capital position remains strong, and our CYT. one ratio of 11% continued to be well above our current 8.9 regulatory minimum plus buffers were also above our expected new CYT. one regulatory minimum plus buffers of 9.8% starting in the fourth quarter of this year, as our stress capital buffer is expected to increase from 2.9% to 3.8%. We repurchased 6.1 billion of common stock in the second quarter. And while the pace will slow, we have capacity continued to repurchase common stock, as Charlie highlighted, also expect to increase our common stock dividend by 14%, subject to Board approval. l

轉向幻燈片 10 上的資本流動性。 11% 的比率繼續遠高於我們目前 8.9 的最低監管水平，加上緩衝也高於我們預期的新 CYT。從今年第四季開始，監管最低標準加上 9.8% 的緩衝，因為我們的壓力資本緩衝預計將從 2.9% 增加到 3.8%。 我們在第二季回購了 61 億股普通股。 儘管步伐將會放緩，但正如查理所強調的那樣，我們有能力繼續回購普通股，並預計將我們的普通股股息增加 14%，但須經董事會批准。 我

Turning to our operating segments, starting with consumer banking and lending on slide 11, consumer small business banking revenue declined 5% from a year ago, driven by lower deposit balances and the impact of customers migrating to higher yielding deposit products. Co-lending revenue was down 3% from a year ago due to lower net interest income fund balances continue to define credit card revenue was stable from a year ago, as higher loan balances driven by higher point of sale line in new account growth was offset by lower other fee revenue, although revenue declined 25%. Personal lower fees and travel

轉向我們的營運部門，從幻燈片11 上的消費者銀行業務和貸款開始，由於存款餘額下降以及客戶轉向收益率更高的存款產品的影響，消費者小企業銀行業務收入較上年同期下降了5%。 由於淨利息收入下降，共同貸款收入較上年同期下降 3% 基金餘額繼續定義信用卡收入較上年同期保持穩定，因為新帳戶增長中較高的銷售點線推動的貸款餘額增加被抵消儘管收入下降了25%，但其他費用收入下降。 個人較低的費用和旅行

retail mortgage originations declined 31% from a year ago, reflecting our focus on simplifying the home lending business as well as the decline in mortgage market. Since we announced our new strategy and started in 2023, we have reduced headcount in the lending by approximately four 5%. Balances in our auto portfolio declined 14% compared to the year ago, driven by low lower origination volumes, which were down 23% from year ago, reflecting previous credit tightening actions, both debit and credit card spend increased from a year ago.

零售抵押貸款發放量較上年同期下降 31%，反映出我們對簡化房屋貸款業務的重視以及抵押貸款市場的下滑。 自從我們宣布新策略並於 2023 年開始實施以來，我們已將貸款部門的員工人數減少了約 4% 5%。 我們的汽車投資組合餘額較去年同期下降了14%，原因是發起量較低，較去年同期下降了23%，反映了先前的信貸緊縮行動，借記卡和信用卡支出均較去年同期有所增加。

Turning to Commercial Banking results on Slide 13. Middle Market Banking revenue was down 2% from year ago, driven by lower net interest income due to higher deposit costs, partially offset by growth in treasury management fees. Asset-based lending and leasing revenues increased 17% year over year include lower net interest income, lower leasing done and revenue from equity investments. Average loan balances were down 1% compared with year ago. Loan demand has remained tepid, reflecting the higher for longer rate environment and market where competition has been more aggressive on pricing and loan structure.

轉向幻燈片 13 上的商業銀行業務業績。 資產貸款和租賃收入年增 17%，其中淨利息收入、租賃完成量和股權投資收入減少。 平均貸款餘額較去年同期下降1%。 貸款需求仍然不溫不火，反映出長期利率環境和定價和貸款結構競爭更加激烈的市場的較高水準。

Turning to Corporate Investment Banking on slide 14. Banking revenue increased 3% from year ago, driven by higher investment banking revenue due to increased activity across all products, partially offset by lower treasury management results, driven by the impact of higher interest rates on deposit accounts. Commercial real estate revenue was down 4% from a year ago, reflecting the impact of lower loan balances. Markets. Revenue grew 16% from a year ago, driven by strong performance in equities, structured products and credit products. Average loans declined 5% from year ago as growth markets was more than offset by reductions in commercial real estate for originations remain muted, and we've strategically reduced balances in our office portfolio as well as declines in banking where clients to access capital.

轉向投影片14 上的企業投資銀行業務。抵銷。 商業房地產收入年減 4%，反映出貸款餘額下降的影響。 市場。 受股票、結構性產品和信貸產品強勁表現的推動，營收較上年同期成長 16%。 平均貸款比去年同期下降了 5%，因為成長市場被商業房地產的減少所抵消，因為貸款來源仍然低迷，我們策略性地減少了辦公大樓投資組合的餘額，以及客戶獲取資本的銀行業務的減少。

Our goods funding. On slide 15, wealth and investment management revenue increased 6% compared with a year ago. Higher asset-based fees, driven by an increase in market valuations were partially offset by lower net interest income, reflecting lower deposit balances and higher deposit costs as customers reallocated cash into higher-yielding alternatives. As a reminder, the majority of women advisory assets are priced beginning in the quarter. Since Q3 results will reflect market valuations as of July first, which were up from both a year ago and from April first.

我們的貨物資金。在投影片 15 上，財富和投資管理收入與去年同期相比成長了 6%。 市場估值上升推動的資產費用上升被淨利息收入下降部分抵消，反映出客戶將現金重新分配到收益更高的替代品中，存款餘額減少，存款成本上升。 提醒一下，大多數女性諮詢資產從本季開始定價。 由於第三季的業績將反映截至 7 月 1 日的市場估值，該估值較去年同期和 4 月 1 日有所上升。

Slide 16 highlights our corporate results. Revenue grew from a year ago due to improved results from our venture capital investments.

幻燈片 16 重點介紹了我們的公司業績。 由於我們的創投業績改善，營收較上年同期成長。

Turning to our 2020 for our outlook for net interest income and non-interest expense on slide 17. At the beginning of the year, we expected 2024 net interest income to be approximately 7% to 9% lower than full year 2023. During the first half of this year, the drivers of net interest income largely played out as expected, with net interest income down 9% from the same period a year ago.

轉向我們對幻燈片 17 中的 2020 年淨利息收入和非利息支出的展望。收入的驅動力基本上發揮出預期，淨利息收入較去年同期下降9%。

Compared with where we began the year. Our current outlook reflects the benefit of erratic us as well as higher deposit balances in our businesses and what we had assumed in our original expectations, which has helped us reduce market funding.

與年初相比。 我們目前的前景反映了我們不穩定的好處以及我們業務中較高的存款餘額以及我們在最初預期中的假設，這幫助我們減少了市場融資。

Deposit costs increased during the first half this year is expected at the pace of the increase has slowed. However, late in the second quarter, we increased pricing in wealth and investment management on sweep deposits in advisory brokerage accounts. This change was not anticipated in our original guidance, better aligns rates with rates paid in money market funds and is expected to reduce net interest income by approximately 50 million this year.

預計今年上半年存款成本增加的速度放緩。然而，在第二季末，我們提高了諮詢經紀帳戶中的掃款存款的財富和投資管理定價。 這項變更是我們最初的指引中沒有預料到的，它使利率與貨幣市場基金支付的利率更好地保持一致，預計今年淨利息收入將減少約 5,000 萬美元。

Our current outlook also reflects lower loan balances at the beginning of the year. We assume the slight decline in average loans for the full year, which reflected modest growth in commercial and credit card loans in the second half of the year after a slow start to the year.

我們目前的展望也反映年初貸款餘額較低。 我們假設全年平均貸款略有下降，這反映出商業和信用卡貸款在年初緩慢增長後，下半年略有增長。

As we highlighted on our Q1 earnings call, loan balances were weaker than expected and that trend continued into the second quarter. We expect this underperformance to continue in to the second half of the year with loan balances declined slightly from second quarter levels. As a result of these factors, we currently expect our full year 2024 net interest income to be in the upper half range we provided in January were down approximately 9% from full year 2023.

正如我們在第一季財報電話會議上所強調的那樣，貸款餘額弱於預期，而這種趨勢持續到第二季​​。 我們預計這種表現不佳的情況將持續到今年下半年，貸款餘額將比第二季水準略有下降。 由於這些因素，我們目前預計 2024 年全年淨利息收入將處於我們 1 月提供的上半區間，較 2023 年全年下降約 9%。

We continue to expect net interest income will trough towards the end of the year. We are only halfway through the year and many of the factors driving net interest income are uncertain, and we will continue to see how he sees assumptions plays out during the remainder of the year. Turning to expenses at the beginning of this year, we expected our full year 2020 for noninterest expense to be approximately 52.6 billion. We currently expect our full year of 20.49 extra expense to be approximately 54 billion.

我們繼續預計淨利息收入將在年底前觸底。 今年才剛過半，許多推動淨利息收入的因素都不確定，我們將繼續觀察他如何看待假設在今年剩餘時間內的表現。 談到今年年初的支出，我們預計 2020 年全年非利息支出約為 526 億美元。 我們目前預計全年 20.49 的額外支出約為 540 億。

There are three primary drivers for this increase. First, the equity markets have outperformed our expectations, driving higher rent related compensation expense and Wealth and Investment Management. As a reminder, this a good thing as these higher expenses are more than offset by higher noninterest income.

這一增長有三個主要驅動因素。 首先，股市的表現超出了我們的預期，推動了與租金相關的補償費用以及財富和投資管理的上漲。 提醒一下，這是一件好事，因為這些較高的支出足以被較高的非利息收入所抵銷。

Second, operating losses and the other customer remediation related expenses have been higher during the first half of the year than we expected. As a reminder, we have outstanding litigation, regulatory and customer remediation package that could impact operating losses during the remainder of the year.

其次，上半年的營業虧損和其他客戶補救相關費用高於我們的預期。 提醒一下，我們有未決的訴訟、監管和客戶補救方案，可能會影響今年剩餘時間的營運損失。

Finally, we did not anticipate the current 36 million of expense in the first half of the year for the FDIC special assessment, which is now included in our updated guidance, will continue to update you as the year progresses.

最後，我們沒有預料到今年上半年 FDIC 特別評估目前 3,600 萬的費用（現已包含在我們的更新指南中）將隨著今年的進展繼續向您更新。

In summary, our results in quarter reflected the progress we're making to transform Wells Fargo and improve our financial performance. Our strong growth in fee-based businesses offset the expected decline in net interest income. We made further progress on our efficiency initiatives. Our capital position remains strong, enabling us to return excess as to capital to shareholders. And we continue to make progress on our path to sustainable ROTCE. a 15%, who will now take your questions at this time.

總之，我們本季的業績反映了我們在富國銀行轉型和改善財務表現方面所取得的進展。 我們收費業務的強勁成長抵消了淨利息收入的預期下降。 我們在效率措施方面取得了進一步進展。 我們的資本狀況依然強勁，使我們能夠將多餘的資本回饋給股東。 我們在實現永續 ROTCE 的道路上不斷取得進展。 a 15%，此時將回答您的問題。

(Operator Instructions) Ken Usdin, Jefferies.

（操作員說明）Ken Usdin，Jefferies。

Thanks a lot. Good morning. And Mike, I was wondering if you could provide a little bit more detail on those lot flatter points you made on the changes on deposit cost side. First of all, I guess relative to the 12 basis points that you saw in terms of interest bearing cost increase, which was lower than the 17, how do you just generally expect that to look going forward? And how and is that suite pricing also a part of what that number will look like going forward? Thank you.

多謝。 早安. 麥克，我想知道您是否可以提供更多關於您在存款成本方面的變化方面提出的更詳細的觀點。 首先，我想相對於您所看到的利息成本增加的 12 個基點（低於 17 個基點），您對未來的整體預期如何？ 套房定價如何以及是否也成為該數位未來的一部分？ 謝謝。

Thanks, Ken. And yes, the two main this repricing will be will be included in that going forward about you saw about a better basically about a month's worth in the quarter. We made that change in June. So you saw about a third of a quarterly impact already included in the number.

謝謝，肯。 是的，這次重新定價的兩個主要內容將包括在您未來看到的本季一個月的價值中。 我們在六月做出了這個改變。 因此，您看到大約三分之一的季度影響已包含在該數字中。

Look, I think when you drill into what's going on in the deposit side, I'd say a few things. one, you overall deposit, you know, we're not seeing a lot of pressure on overall pricing in deposits on the consumer side that this migration that's been happening now for awhile from checking into savings or CDs is still high happening, but at a slower pace.

聽著，我想當你深入了解存款方面發生的事情時，我會說一些事情。 一，您的整體存款，您知道，我們沒有看到消費者方面的存款總體定價面臨很大壓力，這種從支票存入儲蓄或定期存款的遷移已經發生了一段時間，但這種情況仍然發生率很高，但在速度較慢。

And and you can see that over the last couple of years as it's been pretty stable over the last quarter to and but it's definitely flowing as you look at at the quarter and side, I'd anticipate you'd still see more migration, but but continuing to slow as we look as we look forward on the wholesale side and we either the pricing has been pretty competitive now for a while, and that's the case.

你可以看到，在過去的幾年裡，由於上個季度的情況相當穩定，但從本季度和側面來看，它肯定在流動，我預計你仍然會看到更多的移民，但是但隨著我們對批發方面的展望，我們的速度繼續放緩，而且我們的價格現在已經相當有競爭力一段時間了，事實就是如此。

And so we've been pleased to see that we're able to grow good operational deposits. And so given the competitive pricing there, that puts a little near term pressure on NI, that those deposits are going to be very valuable over a long period of time, particularly as we start to come back down until the positive. I think overall, as you saw, ITO deposits grow in every line of business for the first time in a long time, and that migration is flowing to higher-yielding alternatives.

因此，我們很高興看到我們能夠增加良好的營運存款。 因此，考慮到那裡的競爭性定價，這給 NI 帶來了一些短期壓力，這些存款在很長一段時間內將非常有價值，特別是當我們開始回落直到積極的時候。 我認為總體而言，正如您所看到的，ITO 存款在很長一段時間以來首次在各個業務領域增長，並且遷移正在流向收益更高的替代品。

And so we'll see how it plays out for the rest of the year. But I think there's some good positive trends that are emerging. They're great.

因此，我們將看看今年剩餘時間的情況如何。 但我認為正在出現一些良好的正面趨勢。 他們很棒。

Thank you. And just to follow up on the fees were really good and the trading business continues to demonstrate that it's taking market share share count. I guess, how how how do we understand how to kind of measure that going forward, right? Versus what the group's doing you guys are definitely zigging and outperforming there. Where do you think you are in terms of market share gains? And how sustainable do you think this new kind of run rate of trading is going forward? Thanks.

謝謝。 跟進費用確實很好，交易業務繼續證明它正在佔據市場份額。 我想，我們如何理解如何衡量未來的發展，對吧？ 與團隊所做的事情相比，你們絕對是在快速前進並且表現出色。 您認為您在市佔率成長方面處於什麼位置？ 您認為這種新的交易運行率未來的可持續性如何？ 謝謝。

Yes, I'll take that. Charlie can chime in. If he wants the you as you look at trading at any given quarter, it's going to bounce around, right? So you can't necessarily straight-line any anything this quarter. So I'd be careful there as you look as you look forward. But I think the good the good part is like we've been methodically sort of making investments in really all the asset classes, FX, credit it out at a lesser degree in equities and other places. But we're getting the benefit of it. Those investments each quarter on an incremental basis, I think that business is still constrained by the asset cap.

是的，我會接受的。 查理可以插話。 因此，本季你不一定能直線任何事情。 所以當你展望未來時我會小心謹慎。 但我認為好的一面是，我們一直有條不紊地對所有資產類別、外匯進行投資，但在股票和其他地方的投資程度較低。 但我們正在從中受益。 這些投資每季都會增量，我認為業務仍然受到資產上限的限制。

And so we are not growing assets or financing appliance, a client's assets. At the same level, we would be if we didn't have the asset cap, which also then Dr. More and more trading flow as we go. And so I'd say we're still below my thought or it methodically sort of building it out in and there should be opportunity for us to grow that in a prudent way. What we know for a while. But any given quarter may bounce around a little bit depending on what's happening in a market or an asset class. And we're getting good good, right, very good reception from clients as weak as we engage with them more and and see them move more flow to us.

因此，我們不是在增加資產或融資工具，也就是客戶的資產。 在同一水平上，如果我們沒有資產上限，我們也會如此，隨著我們的發展，交易流量也會越來越多。 所以我想說，我們仍然低於我的想法，或者有條不紊地建造它，我們應該有機會以謹慎的方式發展它。 我們暫時知道的事。 但任何特定季度都可能會略有反彈，具體取決於市場或資產類別的情況。 隨著我們與客戶的接觸越來越多，並看到他們為我們帶來更多的流量，我們從客戶那裡得到了很好的、正確的、非常好的接待。

And this is Charlie. Let me just add a couple of things, which is, um, we think about the things that we're doing to invest in our banking franchise, both markets and investment banking side of the franchise. It's not risk based on. It's actually it's focused on customer flows.

這是查理。 讓我補充幾件事，那就是，嗯，我們考慮了我們正在做的投資銀行業務的事情，包括市場和投資銀行方面的業務。 這不是基於風險。 實際上它專注於客戶流量。

On the trading side, it's customer is focused on expanding coverage, Rich and improving product capabilities on the banking side on. So we will get and and we're also very, very focused on returns overall, as you can imagine, as all the other large financial institutions are.

在交易方面，其客戶重點放在擴大銀行方面的覆蓋範圍、豐富和提高產品能力。 所以我們會得到，而且我們也非常非常關注整體回報，正如你可以想像的那樣，就像所有其他大型金融機構一樣。

So as we're looking at our progress, we do look at share across all the different categories and expect to see those to continue to tick up. And so as you look through the volatility that exists in the marketplace, we are looking at a sustained level of growth, recognizing that we don't control the quarter to quarter volatility.

因此，當我們審視我們的進展時，我們確實關注所有不同類別的份額，並期望看到這些份額繼續上升。 因此，當您審視市場中存在的波動性時，我們會看到持續的成長水平，並認識到我們無法控制季度與季度之間的波動性。

Okay, got it. Thank you.

好，知道了。 謝謝。

John Pancari, EVERCORE ISI.

約翰‧潘卡里 (John Pancari)，EVERCORE ISI。

sir. Morning. I'm fully confident. And I I should bottom towards year end towards the back half of the year. Maybe could you just give us what gives you the confidence in maintaining that view, just given the loan growth dynamics, can you mentioned and just mentioned the funding costs in the rate backdrop of what you think you could just kind of walk us through on your confidence around inflection? And I guess what it could mean as you go into 20 $0.25?

先生。 早晨。 我完全有信心。 我應該在年底或下半年觸底。 也許您可以告訴我們什麼讓您有信心維持這種觀點，考慮到貸款成長動態，您能否提到並剛剛提到利率背景下的融資成本，您認為您可以向我們介紹一下您的情況對拐點的信心？ 我猜當你輸入 20 0.25 美元時這可能意味著什麼？

Yes, it will on what we won't talk much about 2025, John. But as you sort of look at, you know, what's happening is you're seeing this migration on the deposit side flow, as I mentioned earlier. So you're seeing more stability, though, as we as time goes by there year once the well the Fed starts lowering rates, which you know the market expects to happen later in the year, you'll start to see betas on the way down on the wholesale side of the deposit base. You'll continue to see some gradual sort of repricing on the asset side here.

是的，約翰，我們不會談太多 2025 年的事情。 但正如你所看到的，你知道，正在發生的事情是你看到了存款方面的遷移，正如我之前提到的。 因此，隨著時間的流逝，一旦聯準會開始降低利率（您知道市場預計將在今年晚些時候發生），您就會看到更多的穩定性，您將開始看到貝塔值存款基礎的批發方面下降。 您將繼續在此處看到資產方面的某種漸進式重新定價。

As you see more more securities and more loans sort of roll on roll. And so you've got to look exactly calling sort of the trough is, you know, which quarter it's going to be some time can be a little tough. But but as you sort of look at all the components of it, we still feel that we still feel pretty good about being able to see that happen over the coming few quarters.

當你看到越來越多的證券和更多的貸款不斷湧現。 所以你必須準確地看待谷底，你知道，哪個季度的某個時間可能會有點困難。 但是，當你看看它的所有組成部分時，我們仍然覺得我們仍然對能夠在未來幾季看到這種情況發生感到非常高興。

Some kind of points might move on to hop over to capital buyback. Somebody bought back about 6.1 billion This this quarter, similar to the first quarter, you indicated the pace will slow. We need to do a little bit of color on how we should think about that moderation and how long that could present to this point? And how long until you could be tactical the run rate you were previously?

某些點可能會轉向資本回購。 有人回購了約 61 億美元 本季度，與第一季類似，您表示步伐將會放緩。 我們需要對我們應該如何思考這種適度以及這種適度會持續多久進行一些說明？ 多久之後你才能達到之前的戰術跑動率？

So let me let me take a shot at it, Mike and the new Connect. I think we've been running capital might to rent the way we find out about SCB. as well as the uncertainty that exists with where Basel three ultimately on what comes out of the reality of those two things are we know where the SCBA as for this year at this point, we still don't know where Basel three ultimately winds up.

那麼，讓我來嘗試一下，麥克和新的 Connect。 我認為我們一直在以我們了解SCB的方式運行資本來出租。以及巴塞爾三號最終的結果存在不確定性，這兩件事的現實結果是我們知道SCBA今年的情況，但我們仍然不知道巴塞爾三號最終的結果。

So I think you know, as we sit here today on, we will continue will be conservative on capital return in the shorter term until we learn more about exactly where Basel three will ultimately wind up and then we can get more specific about what that means for capital return.

所以我想你知道，當我們今天坐在這裡時，我們將繼續對短期資本回報持保守態度，直到我們更多地了解巴塞爾三號協議最終的結果，然後我們才能更具體地了解這意味著什麼以獲取資本回報。

So I just think we're just trying to be very pragmatic. And you know, the reality is, you know, we're still generating significant amount of capital and a, you know, reasonably sized dividend that's increased at our earnings power has increased. And given the fact that we have constraints, most of what the remainder of our capital generation goes towards capital return, but we want to see where Basel three ultimately winds up.

所以我認為我們只是想變得非常務實。 你知道，現實是，你知道，我們仍在產生大量資本，而且，你知道，合理規模的股息隨著我們獲利能力的增加而增加。 考慮到我們受到限制，我們剩餘的資本產生大部分都用於資本回報，但我們希望看到巴塞爾三號最終的結果。

Okay. Thank you.

好的。 謝謝。

Ebrahim Poonawala, Bank of America .

易卜拉欣·普納瓦拉，美國銀行。

Hey, good morning. Just maybe one follow-up. First on Lincoln. Charlie, on capital, is it 11% decline in the same right now as you wait for Basel and clarity there at the at least you're not guiding for a bit as we think about what the pace of buybacks might be or could see the one go below 11, still significant buffer with a 9.6 minimum. Would appreciate how do you think about that ratio in the context of capital?

嗨，早安。 也許只是一個後續行動。 首先是林肯。 查理，關於資本，當你等待巴塞爾協議和澄清時，現在是否下跌了 11%，至少在我們考慮回購的速度或可能看到的情況時，至少你沒有提供一點指導。 ，仍具有顯著緩衝作用，最小值為9.6。 請問您在資本背景下如何看待這個比率？

I think where we are plus a little bit, probably not minus a little bit. The trust plus some is probably the right place to be at this point. Remember, the SCB. was higher than we expected. And so that's factoring into our thinking. And so that's really what's driving our thinking in terms of slowing the pace of buybacks at this point. But it can hopefully we'll get some more clarity on Basel three, we know and you know, and then we'll be much clearer about what we think the future looks like there. But again, overall, we still had the capacity to buy back. We just as we've always been, we want to be prudent.

我認為我們現在的情況是增加了一點，可能不會減少一點。 信託加上一些可能是此時此刻的正確選擇。 請記住，SCB。高於我們的預期。 這就是我們思考的因素。 因此，這確實是我們目前考慮放慢回購步伐的原因。 但希望我們能夠對巴塞爾三號協議有更多的了解，我們知道，你也知道，然後我們會更清楚我們對巴塞爾三號協議的未來的看法。 但總的來說，我們仍然有能力回購。 我們一如既往，希望保持謹慎。

Understood. And then just moving to expenses. So I get the guide, the expense guide increase, but keep in mind as Has anything changed. Maybe Charlie from you first on the expense Flex, that's a big part of the wells pieces around efficiency gains, which should lead to the path for that 15% ROTCE. And what are you baking in in terms of the fee revenue for the back half as part of that guide like it? Does it assume elevated levels of trading in IBM? Thank you.

明白了。 然後就轉向開支。 所以我得到了指南，費用指南增加了，但請記住有什麼變化嗎？ 也許查理首先會向您介紹 Flex 費用，這是圍繞效率提升的油井部分的重要組成部分，這應該會帶來 15% ROTCE 的路徑。 作為類似指南的一部分，您在後半部分的費用收入方面有何打算？ 它是否假設 IBM 的交易水準較高？ 謝謝。

Let me just take the first part. So just and it's and I appreciate you asking the question. I think come as far off from work as we look forward, nothing has changed brush as we think about the opportunity to continue to become more efficient in that story is no different today than it was yesterday or last quarter.

讓我只講第一部分。 所以，我很感謝你提出這個問題。 我認為，正如我們所期望的那樣，當我們思考繼續提高效率的機會時，一切都沒有改變，今天的故事與昨天或上個季度沒有什麼不同。

As we increased the estimates for the year, it's really reflective of three broad categories. one are the variable expenses that relate to our our Wealth and Investment Management business where we have higher revenues that results in higher payout. And as Mike always points out, that's actually a good thing, even though it's embedded in the expense line, which causes that number to head upwards.

當我們提高今年的預測時，它確實反映了三大類。 一是與我們的財富和投資管理業務相關的可變費用，我們的收入較高，因此支付較高。 正如麥克總是指出的那樣，這實際上是一件好事，儘管它被嵌入到費用線中，這導致該數字上升。

The second thing or the fact that we've had higher customer mediations on and FTIC. expenses in the first half of the year than when we contemplated in the expense guidance on the customer remediation, as we've said, you know, it's they're not new items there. Historically items we're getting closer to the end of finalization and these things. And as that occurs, things like response rates and making sure that we've identified every, you know, the full amount of the population gets all fine tuned and that's what's flowing through. But that's a really rich to historical matters and not something that's embedded in what we see in the business going forward.

第二件事是我們在 FTIC 上進行了更高的客戶調解。上半年的費用比我們在客戶補救費用指南中考慮的費用要高，正如我們所說，你知道，它們並不是新項目。 從歷史上看，我們越來越接近最終確定的項目和這些事情。 當這種情況發生時，諸如回复率之類的事情以及確保我們已經確定了所有的人口數量都會得到微調，這就是正在發生的事情。 但這是一個非常豐富的歷史問題，而不是我們在未來業務中看到的內容。

So what you're left with is the rest of it, the earnings I'm sorry, the the expense base of the company, and it's playing out as we would have expected. And so as we sit here and look forward on all the statements I made in the past are still true, which is we're not as efficient as we need to be. We're focused on investing in growing the business. We're focused on spending what's necessary to build the right risk and control infrastructure, and we're focused on driving efficiency out of the Company.

所以剩下的就是剩下的，抱歉，收入，公司的費用基礎，而且它的表現正如我們所預期的那樣。 因此，當我們坐在這裡期待我過去所做的所有陳述仍然正確時，那就是我們沒有達到我們需要的效率。 我們專注於投資發展業務。 我們專注於花費必要的資金來建立正確的風險和控制基礎設施，並且我們專注於提高公司的效率。

And um, that lever is as it continues to be exactly what it's events for it. And you assume Stephen staying elevated in the back half as part of the guidance?

嗯，這個槓桿仍然是它所發生的事情。 你認為史蒂芬在後半場保持高位是指導的一部分嗎？

Yes, it does assume equity markets are about about where they are today. It's still staying pretty elevated.

是的，它確實假設股市與今天的情況差不多。 它仍然保持相當高的水平。

Thank you so much.

太感謝了。

Erika Najarian. UBS.

艾莉卡·納賈里安。瑞銀。

Tony, and good morning. And first, I just wanted to put context to this question because I keep on asking just in isolation because it seems taking party, but it's not just focused on selling and a half percent. And I just take on content as to the higher end of your NIM range to nine on that would imply that Q 10 K for the job, 3.5% in isolation.

托尼，早安。 首先，我只是想說明這個問題的背景，因為我一直在孤立地問這個問題，因為它看起來像是在聚會，但它不僅僅專注於銷售百分之五。 我只是將你的 NIM 範圍的高端內容設為 9，這意味著這項工作的 Q 10 K，單獨為 3.5%。

Does it just the context of I'm asking this question on expensing. So your expenses went up on in terms of and from your original guide, JPY1.4 billion against in laid out this three bullets on you quantified at the IT specialists.

這是否只是我問這個有關費用問題的背景？ 因此，根據 IT 專家對您的這三點進行的量化，您的費用比您最初的指南增加了 14 億日圓。

And I guess I'm just wondering now if you could give us a little bit more detail on how much more the remediation expenses and our losses were up versus your original expectation? Because I think with the market wanted to understand is now on PPENII. Okay. We got it. That's happening thing because of deposit repricing, but its core, our core PPNR outside of that is going up. Right and get started. I want to have that extra. And in terms of in out, is the EPS going to be down as much coming out, as you know, coming on exhaust as the marketing indicate?

我想我現在只是想知道您是否可以向我們提供更多詳細信息，說明補救費用和我們的損失與您最初的預期相比增加了多少？ 因為我覺得現在想了解市場跟PPENII有關。好的。 我們得到了它。 這是由於存款重新定價而發生的事情，但其核心，我們除此之外的核心 PPNR 正在上升。 正確並開始吧。 我想要那個額外的。 就進出而言，每股盈餘是否會像行銷所暗示的那樣下降？

Yes, Eric, it's Mike. I appreciate the question. You have we give you the operating loss line in the supplement so you can you can see that. And if you based on what we had said January, have you to assume that the 1.3 billion on a full-year basis was just split evenly across all the quarters? You can see that the operating losses are up about $500 million year to date over that run rate.

是的，埃里克，是麥克。 我很欣賞這個問題。 我們在補充資料中為您提供了營業損失線，以便您可以看到。 如果您根據我們 1 月份所說的內容，您是否會假設全年 13 億美元只是平均分配到所有季度？ 您可以看到，今年迄今的營運損失比該運行率增加了約 5 億美元。

So that's the way to think about, you know, approximately what the impact of that as the year to date, the first half. So then you take that they had the FTIC. to it, right? And the remainder is roughly the the the revenue related expenses and wealth management. So that's why, Eric, when I was talking before, when you look at what's driving the increase in the expense guide, it is it's remediation in the first and second quarter, Peter, it's the FDIC expense that you've seen. And it's the increase in variable expenses, everything out else playing out as we would have expected.

所以這就是思考今年上半年的影響力的方式。 那你就認為他們有 FTIC。對吧？ 其餘的大致是與收入相關的費用和財富管理。 這就是為什麼，埃里克，當我之前談到時，當你看看是什麼推動了費用指南的增加時，是第一季度和第二季度的補救措施，彼得，你看到的是FDIC 費用。 這是可變費用的增加，其他一切都按照我們的預期進行。

Got it. Okay. That makes sense. And just and some comments on how you're thinking about credit quality trends here, and it looks like and you continue to release reserves in the second quarter. And is it a message that you feel like you've captured most of the and here and related issues, of course, absent of a further deterioration in the economy? And how do you think about the trajectory of the reserves from here relative to your charge-offs?

知道了。 好的。 這就說得通了。 只是關於您如何看待這裡的信貸品質趨勢的一些評論，看起來您將在第二季度繼續釋放準備金。 當然，在經濟沒有進一步惡化的情況下，您是否覺得您已經抓住了大部分問題以及相關問題？ 您如何看待從這裡開始的準備金相對於您的沖銷的軌跡？

What would you say? Well, I think when we look at the reserves on yet, you have to bucket into different pieces. Our exposures are coming down in parts of the consumer business and are based on underwriting changes we've made. It's not just balances, but also the actual losses. So that's what's driving the reduction and that part of the cadence of the loss reserves on the consumer side.

你打算說什麼？ 好吧，我認為當我們查看儲備金時，你必須分成不同的部分。 我們在部分消費業務中的風險敞口正在下降，這是基於我們所做的承保變化。 不僅僅是餘額，還有實際損失。 這就是推動消費者方面損失準備金減少和部分節奏的原因。

And on the credit card side, it's really driven the increase is really driven by balances. So you've got two very different dynamics going on there. With the release has been just representative of a smaller, higher credit quality credit portfolio.

在信用卡方面，成長的真正推動因素是餘額。 所以你會看到兩種截然不同的動態。 隨著發行量的增加，剛剛代表了規模更小、信用品質更高的信貸組合。

And then on the wholesale side, on what we were, the losses that we've seen and the um, and the credit performance in our CIB. office CRE portfolio on is playing out no worse than we would have expected when we set our ACL, um, but there's still uncertainty there. So we're maintaining the coverage.

然後在批發方面，我們的情況、我們所看到的損失以及我們 CIB 的信用表現。辦公室 CRE 投資組合的表現並不比我們設定 ACL 時預期的要差，嗯，但仍有不確定性。 所以我們維持覆蓋範圍。

So overall, there's really no in terms of our expectations, no real change from what we're seeing in the CRE portfolio, which is where the loss content is actually coming through from elsewhere. Things are still fairly benign other than some episodic credit events and part of the wholesale business. But no real trend there.

因此，總體而言，就我們的預期而言，與我們在商業房地產投資組合中看到的情況相比，實際上並沒有真正的變化，而商業房地產投資組合的損失內容實際上來自其他地方。 除了一些偶發的信用事件和部分批發業務外，情況仍然相當良性。 但那裡沒有真正的趨勢。

Great. Thank you. Charlie.

偉大的。 謝謝。 查理.

Matt O'Connor, Deutsche Bank.

馬特‧奧康納，德意志銀行。

Good morning. Can you just elaborate a bit on why the increase in deposit costs are? Well, was a portfolio of competition was trying to get ahead of, you know, from potential pricing pressures on what was going to have the logic there?

早安. 能否詳細說明一下存款成本增加的原因？ 那麼，競爭組合是否試圖超越潛在的定價壓力，從而實現邏輯？

Yes, it's size like that. So this is very specific to, you know, a suite of product in the wealth business. So it's a portion of that overall deposits and it doesn't have any any bearing on any other product that I would just leave it at that very specific to that one individual of product inflation share account for as rig counts.

是的，就是這樣的尺寸。 因此，這是非常特定於財富業務中的一套產品的。 因此，它是總存款的一部分，對任何其他產品沒有任何影響，我只會將其保留在特定於鑽機計數的產品通膨份額帳戶中。

Okay. And how big is that those deposit balances?

好的。 這些存款餘額有多大？

We didn't. We don't that's not something we normally have out there. You can see the impact as I sort of highlighted, the impact is roughly 3 to 50 million for the rest of the year for the second half of the year. Though I would just use that as and that's already embedded in through the guidance we gave.

我們沒有。 我們不知道，這不是我們通常擁有的東西。 你可以看到我強調的影響，今年下半年的剩餘時間影響大約是 300 到 5000 萬。 儘管我只是將其用作我們提供的指導中已經嵌入的內容。

Okay. And then a separate topic here. I mean, the credit card growth has been very good. You highlighted rolling out some new products and you have a question. I have always we get any by growth kind of before my time in certain categories seamless and we'll have grown too quickly. Loss rates have gone up maybe a little more than some peers, not as much as from others. Obviously, in line with what you are targeting. There was a negative Wall Street Journal article on on one of your cards. So it just kind of taken together what kind of checks and balances we have to make sure that pace somewhat new initiative for you that you're growing at the right pace. Thank you.

好的。 然後這裡有一個單獨的主題。 我的意思是，信用卡的成長非常好。 您強調了推出一些新產品，並且有一個問題。 在我之前，我們總是在某些類別中獲得無縫的成長，而且我們成長得太快了。 損失率的上升幅度可能比一些同業高一點，但沒有其他同業那麼高。 顯然，符合您的目標。 您的一張卡片上有一篇負面的《華爾街日報》文章。 因此，我們必須採取什麼樣的製衡措施來確保您以正確的速度成長，這對您來說是一種新的舉措。 謝謝。

Yes. And Mike one and I'll start and then you can chime in. So first of all, we are when we look at our credit card performance, we do not look at it in total, right? We look at each individual product. We look at all of the performance broken out by vintage and we compare the results that we're seeing in terms of balance builds as well as credit performance, not losses, but starting very early with early on books, delinquencies. And we look at how they're playing out versus pre-pandemic results as well as what we would have anticipated when we launched approach.

是的。 麥克一和我將開始，然後你可以插話。 所以首先，當我們查看我們的信用卡表現時，我們不會整體考慮它，對吧？ 我們關注每一個單獨的產品。 我們查看按年份劃分的所有業績，並比較我們在餘額建立和信用業績方面看到的結果，而不是損失，但從早期帳面和拖欠情況開始。 我們會研究它們與疫情前的結果相比的情況，以及我們在推出方法時的預期。

Um, as I said, we look at the actual quality of the consumers that were underwriting and the overall credit quality. We haven't compromised credit quality at all. We probably tightened up a little bit as time has gone on relative to where we had been some. But the actual performance when you look at the vintages is it's really nice spot on with what we would have expected to what you're seeing in terms of the increase in loss rates is just the maturing of the portfolio.

嗯，正如我所說，我們專注於承保消費者的實際品質和整體信用品質。 我們根本沒有損害信用品質。 隨著時間的推移，相對於我們之前的情況，我們可能會收緊一些。 但當你觀察年份時的實際表現是，它與我們的預期非常吻合，你所看到的損失率的增加只是投資組合的成熟。

And the last thing I'll just say is just when you think about the Wall Street Journal article on that program, we've launched a lot a bunch of new credit cards that is a relative to the size and scope of all of the cards that we issue and what our strategy is that team very, very, very small piece of it.

我要說的最後一件事是，當你想到《華爾街日報》關於該計劃的文章時，我們推出了很多新信用卡，這些信用卡的規模和範圍與所有卡的規模和範圍有關。以及我們的策略是團隊非常非常小的一部分。

And absent what piece as you look at new account growth, we're not originating anything less than 60. So as Charlie mentioned, some of the credit tightening with 65 sorry, those Charlie mentioned, you know that the credit box has not been brought in really at all, and it will you look at some of the bigger products like cashback, like the cashback card active cash? The new originations are coming in at a higher credit quality than the back book was. And so at this point, as Charlie said, we go through it at a very, very granular level is each each quarter and results are kind of right where we expected. And if we start to see any kind of weakness at all, we were adjusting out where needed.

當你看到新帳戶增長時，如果沒有任何部分，我們不會發起任何低於60 的項目。被帶來真的，你會看看一些更大的產品，例如現金回饋，例如現金回饋卡主動現金嗎？ 新發行的信用品質比舊帳本的信用品質更高。 因此，正如查理所說，在這一點上，我們每個季度都會非常非常細緻地進行審核，結果與我們的預期相符。 如果我們開始發現任何弱點，我們就會在需要的地方進行調整。

Just one last comment here, which is again because I appreciate the question. Whenever whenever you see a lot of the growth in a product that has risk in it, it's always the right thing to ask the questions. We're not this is in the people that are doing this, both in our card business, clever who runs consumer lending. Myself like this is not a new product for us. We've seen this happen in the past. We've seen people do this well and we've seen people not do this well. And so we're very, very conscious of the risks that could point pointing out as we go forward, just as we are on the other businesses that we are investing in.

這裡只是最後一條評論，這也是因為我很欣賞這個問題。 每當你看到產品的大量成長有風險時，提出問題總是正確的。 我們並不是在做這件事的人，無論是在我們的信用卡業務中，還是經營消費貸款的聰明人。 我自己這樣對我們來說並不是一個新產品。 我們過去已經看到過這種情況發生。 我們看過有人做得很好，也看過有人做得不好。 因此，我們非常非常意識到我們前進時可能會指出的風險，就像我們投資的其他業務一樣。

Okay. That's helpful. And obviously, you talked about carwashes going down in 3Q has consistently had community side as well. So thank you for the color.

好的。 這很有幫助。 顯然，您談到第三季洗車場的下降也一直有社區方面的影響。 所以謝謝你的顏色。

Yes, potentially.

是的，有可能。

Betsy Graseck, Morgan Stanley.

貝特西‧格拉塞克，摩根士丹利。

Hi, good morning. That's it. So just wanted to make sure on the expense guide, I get the point that, you know, a bunch of that is related to better revenues from wealth management. And so here we should be anticipating as a part of that, that revenues for wealth management and second half that is going to be at least at 1.5 or maybe even a little higher. Is that fair?

早安. 就是這樣。 因此，我只是想確定一下費用指南，我明白，其中很大一部分與財富管理的更好收入有關。 因此，我們應該預期下半年財富管理收入將至少達到 1.5 甚至更高一點。 這樣公平嗎？

Yes. I mean, I cover that in my script to so as you look at the advisory assets there, they get they get priced based on most of them get price in advance for the quarter. So, you know, with Q3 looks like based data we are now and obviously, it's not all equity market. There's a fixed income in there as well. But but you should see a little bit of an increase as you go into the third quarter based on where the markets are now and then we'll see what the fourth quarter looks like when we get there.

是的。 我的意思是，我在我的腳本中介紹了這一點，以便當您查看那裡的諮詢資產時，他們會根據大多數人在本季度提前獲得的價格來定價。 所以，你知道，第三季看起來就像我們現在的基礎數據，顯然，這並不全是股市。 裡面也有固定收入。 但是，當你進入第三季時，根據目前的市場狀況，你應該會看到一點成長，然後我們會看到第四季的情況。

Yes. Okay. Can I just wanted to make sure we balance out the expenses with the RAB beat that? I know you're not guiding ramps up, but interpretation leads you down that path on insulin. That gets the other piece of the question I had just had two relate with on the loan balance discussion that was going on earlier.

是的。 好的。 我可以只是想確保我們與 RAB 的支出平衡嗎？ 我知道您沒有指導增加胰島素用量，但解釋會引導您沿著胰島素的方向走下去。 這就引出了我剛剛在早些時候進行的貸款餘額討論中遇到的兩個問題的另一個問題。

And what's your view level interest in leaning into the markets business today? I realize there's opportunity there still that asset cap constrained by you're not at the asset cap. So they're Israel create a lean and there are players who are a little bit more constrained on capital than? Yes, we then in that space. So is it because it's an area that you would be interested in leaning into, especially when a guy in Crane or other types of loans are are low on demand right now, as you indicated earlier?

您對今天的市場業務有何興趣？ 我意識到仍然存在機會，即資產上限不受您的資產上限限制。 所以他們是以色列創造了一種精益，而有些玩家在資本上受到的限制比？ 是的，我們然後在那個空間裡。 是因為這是一個您有興趣涉足的領域，特別是當克雷恩或其他類型的貸款的人目前需求較低時，正如您之前指出的那樣？

Thanks. Well, let me just let me start. I think first of all, relative to where the balance sheet is running on it, we were not if we want to we're careful about how we run the overall balance sheet, right, which is we don't want to operate at the cap on a regular basis because you've got to be prepared both for customer appetite in terms of lending and deposits when you see it as well as you know, we lived through the COVID where there was an event and all the sudden they were a bunch of draws and we have to live within the asset cap. So we're running food, running it with a cushion is a very smart thing. We think for us to do even though you can argue we're giving up some shorter term profit. So that's just the reality of where we live.

謝謝。 好吧，讓我開始吧。 我認為首先，相對於資產負債表的運行情況，如果我們願意的話，我們不會謹慎對待整體資產負債表的運作方式，對吧，我們不想在定期設定上限，因為你必須為客戶在貸款和存款方面的需求做好準備，當你看到它時，你知道，我們經歷了新冠疫情，那裡發生了一個事件，突然間他們就成為了一堆平局，我們必須生活在資產上限之內。 所以我們在運行食物時，用緩衝墊運行它是一件非常聰明的事情。 儘管你可能會說我們正在放棄一些短期利潤，但我們認為我們應該這樣做。 這就是我們居住的地方的現實。

And so as we think about the markets business and what that means on the perfect world, we'd be allowing them to finance more there, more opportunities out there for us to be able to do that. But what we are doing is we think about inside the company, optimizing the balance sheet and where we get the most returns and where there's more demand and less demand.

因此，當我們考慮市場業務以及這對完美世界意味著什麼時，我們將允許他們在那裡提供更多資金，讓我們有更多機會做到這一點。 但我們正在做的是考慮公司內部，優化資產負債表，以及我們在哪裡獲得最大回報，哪裡需求更多和需求更少。

There has been less demand in other parts of the Company, and there's been more demand on the trading side. So our assets are actually up 18%. Yes, trading. If you go to the supplement that the trading assets on an average basis are up 17%, a little more on a spot basis them. So we're just trying to necessarily reflective of what those opportunities are on, but we've got to keep capacity for the reasons I mentioned.

公司其他部門的需求較少，貿易方面的需求較多。 所以我們的資產實際上增加了 18%。 是的，交易。 如果你去補充，交易資產平均上漲了 17%，現貨價格上漲了一點。 因此，我們只是試圖反映這些機會的情況，但出於我提到的原因，我們必須保持產能。

Got it. Okay. Thank you.

知道了。 好的。 謝謝。

Gerard Cassidy, RBC Capital Markets.

傑拉德·卡西迪，加拿大皇家銀行資本市場部。

Thank you. Good morning, gentlemen. Good morning, Mike. On-road. Kelly, you mentioned in your opening comments about Fargo, you guys launched Fargo over a year ago, I guess and you have a real good come pick up. Can you share with us or any other AI. orientated programs that are in work work in progress right now that could lead increased efficiencies or cost savings or even revenue enhancements as you go forward?

謝謝。 早安，先生們。 早上好，麥克。 在路上。 凱利，你在《法哥》的開場評論中提到，你們一年多前推出了《法哥》，我想你們真的有一個很好的發展。 您可以與我們或任何其他人工智慧分享嗎？目前正在實施的定向計劃正在進行中，隨著您的前進，這些計劃可能會提高效率或節省成本，甚至增加收入？

Sure. Yeah, um, you know, it's interesting when we think about AI, we do break it into different categories, right? There is there's a there's traditional AI. and then there's Gen-i. We have a huge number of use cases already embedded across the Company with just traditional AI., um, and that is in its in our in marketing in credit decisioning. It's in information that we provide bankers on both the wholesale on the consumer side, about what customers could be willing, some might be willing to entertain a discussion about.

當然。 是的，嗯，你知道，當我們思考人工智慧時，這很有趣，我們確實將其分為不同的類別，對嗎？ 有傳統的人工智慧。然後是第一代。 我們已經在整個公司嵌入了大量使用傳統人工智慧的用例。 這是我們向消費者方面的批發銀行家提供的信息，關於客戶可能願意的信息，有些人可能願意接受討論。

And so that is a lot of stuff that's business as usual for us. The new opportunity that exists with Gen-i is where they I create something based upon whether it's public data on our own data in terms of things that haven't existed, um, we are most focused on in the shorter term on things that can drive efficiency.

因此，對我們來說，很多事情都是照常進行的。 Gen-i 存在的新機會是，他們根據我們自己的數據是否是公共數據來創建一些不存在的東西，嗯，我們在短期內最關注的是可以的東西驅動效率。

It also contributes to just quality the experience for our customers. So great examples of things like that. Our call centers, we take a lot. We take lots of phone calls and we've got lots of opportunities through a I to answer those questions before someone gets to a call center rep. But once they get to a call center rep, we put a lot of it effort into answering that question correctly, but also make sure that we're capturing that inflammation, understanding root cause across all these calls,

它還有助於提高我們客戶的體驗品質。 諸如此類的例子非常好。 我們的呼叫中心，我們承擔了很多。 我們接聽了很多電話，在有人聯繫呼叫中心代表之前，我們有很多機會透過 I 來回答這些問題。 但是，一旦他們聯繫到呼叫中心代表，我們就會投入大量精力來正確回答這個問題，但也要確保我們能夠捕捉到這種炎症，了解所有這些呼叫的根本原因，

we get that means bankers have to go it. Telephone bankers have to go in actually enter what the call was about what they think the root cause is. We didn't have to aggregate that and so on and so forth. Our third Gen-i that can be done automatically. It can be done immediately and duty done for us to identify the root cause. So then we can go back, look at it and make sure that the case and make the change.

我們知道這意味著銀行家必須這麼做。 電話銀行工作人員必須實際輸入電話內容以及他們認為根本原因是什麼。 我們不必匯總這些等等。 我們的第三代 Gen-i 可以自動完成。 它可以立即完成，我們有責任找出根本原因。 然後我們就可以回去查看並確保情況屬實並進行更改。

So ultimately that results in fixing defects going forward. But it also takes so much manual effort out of what we do. And so that's and so any place where something is written, something is analyzed by an individual. We've got the opportunity to automate that things exist on the wholesale side as well as the consumer side on to the extent that they impact a consumer, um, we're going to move very slowly to make sure we understand the impact of that on. And so the work is in a meaningful part of as we think about prioritization in terms of attachment.

因此最終會導致修復缺陷。 但這也需要我們付出大量的人力。 所以，任何地方寫下一些東西，都會由個人分析一些東西。 我們有機會自動化批發端和消費者端存在的事物，只要它們影響消費者，嗯，我們將非常緩慢地採取行動，以確保我們了解其影響在。 因此，當我們考慮依戀的優先順序時，這項工作是一個有意義的部分。

Very good. I appreciate those insights. And then just as a quick follow-up, you also mentioned about improved advisor retention in the quarter. Can you look at your Wealth and Investment Management segment?

非常好。 我很欣賞這些見解。 然後，作為快速跟進，您還提到了本季度顧問保留率的提高。 您能看看您的財富和投資管理部門嗎？

I recognize commissions and brokerage service fees are not the main driver, Skandia Investment Advisory. Another asset based fees are in revenues for this division, but I noticed that they've been flat to down this year. They're up over a year year ago. It is seasonal in the second quarter that that line of business just gets softer? Or is it the higher rate environment where customers are just leaving more cash in a more?

我承認佣金和經紀服務費不是主要驅動力，Skandia Investment Advisory。 另一個基於資產的費用是該部門的收入，但我注意到今年它們一直持平甚至下降。 他們已經一年多了。 第二季是季節性因素，該業務會變得更加疲軟嗎？ 還是在更高的利率環境下，客戶只會留下更多的現金？

Yes, assets in cash because they're getting 5% or so. Yes, there really is no rhyme or reason necessarily draw to exactly know how that moves one quarter to the not necessarily, obviously just like large bouts of volatility might be more transaction activity.

是的，資產是現金，因為他們獲得了 5% 左右的收益。 是的，確實沒有任何規律或理由可以準確地知道四分之一如何移動到不一定，顯然就像大幅波動可能會導致更多交易活動一樣。

That certainly hasn't been the case, you know, necessarily the equity market in the second quarter, but to some degree, has that line item, the overall very long period of time, that line item probably declines more and advisory goes up. And that's actually a really good thing from a productivity and from an ongoing revenue perspective as well.

當然，情況並非如此，你知道，第二季的股市一定是這樣的，但在某種程度上，在整個很長一段時間內，該項目可能會下降更多，而諮詢會上升。 從生產力和持續收入的角度來看，這其實是一件非常好的事情。

Yes. Okay. Super. Okay. Appreciate it. Thank you, Mike.

是的。 好的。 極好的。 好的。 欣賞它。 謝謝你，麥克。

Steven Chubak, Wolfe Research.

史蒂文‧丘巴克，沃爾夫研究中心。

Thanks and good morning, Charlie, and good morning, Mike. I'm just given the sheer amount of, I guess, investor questions that we've received on the deposit pricing changes in wells. I was hoping you could provide some additional context, given many of your peers have talked about cash starting pressures abating or at least being in the very late innings and wanted better under and what informed decision to adjust your pricing. Was it impacting advisor recruitment or retention? Was it impeding your ability to retain more share of wallet? And or is this an effort TV go on the offensive and lead the market on pricing in sweep deposits and for others to potentially policy? Good?

謝謝，早安，查理，早安，麥克。 我想，我剛剛收到了大量關於油井存款定價變化的投資者問題。 我希望你能提供一些額外的背景信息，因為你的許多同行都談到現金啟動壓力減輕，或者至少在最後幾局，希望更好地調整你的定價，並做出明智的決定。 它會影響顧問的招募或留任嗎？ 它是否妨礙了您保留更多錢包份額的能力？ 或者這是否是電視發動攻勢並引導市場對掃蕩存款定價以及其他人可能製定的政策？ 好的？

Yes, Steve, it's Mike. I'd say just a couple of things. one, this is not in reaction to cash hoarding. We are seeing cash holdings low video in the wealth business, just like we're seeing that in the consumer business. So this is not a reaction to that in any in any way. It's a it's a it's a it's a relatively small portion of the overall deposits that sit within the in the wealth business. And it is very specific to this product, which is in an advisory account where there's frictional cash there. So it's not it's not it's not a reaction to competitive forces that we're seeing or us trying to be proactive somewhere to drive growth.

是的，史蒂夫，是麥克。 我只想說幾件事。 第一，這並不是對現金囤積的反應。 我們在財富業務中看到現金持有量處於低位，就像我們在消費業務中看到的那樣。 所以這絕不是對此的反應。 這是財富業務總存款中相對較小的一部分。 它是針對該產品的，它位於一個諮詢帳戶中，那裡有摩擦性現金。 所以這不是對我們所看到的競爭力量的反應，也不是我們試圖在某個地方積極主動地推動成長的反應。

Understood. And just one follow up on the discussion relating to expenses. And just given the fee momentum that you're seeing within CIB. and wells than you're clearly making investments in both of those segments. At the same time, the incremental margins have actually been quite high, especially in CIB., where it's running north of 75% just first half of this year versus last. And was hoping to get some perspective as we think about some of that fee momentum being sustained, what do you believe are sustainable or durable incremental margins within CIB. And whilst recognizing the payout profiles are different?

明白了。 關於費用的討論只有一個後續。 考慮到您在 CIB 內看到的收費動能。和油井相比，您顯然在這兩個領域都進行了投資。 同時，增量利潤率實際上相當高，尤其是 CIB，今年上半年的利潤率比去年增長了 75% 以上。 當我們考慮某些費用動能是否持續時，我們希望獲得一些觀點，您認為 CIB 內可持續或持久的增量利潤是多少。雖然認知到支付情況不同？

Well, let me start on the wealth side of that going back to the banking or banking side. So on the wealth side, what's really going to help us drive margin expansion in that business over time are really kind of two things. one is continued productivity and growth in the advisory asset side, which which you can see happening. And then to that, we've talked about this and other in other forums, it's doing a much better job penetrating that client base with banking and lending products.

好吧，讓我從財富方面開始，回到銀行業或銀行業。 因此，在財富方面，隨著時間的推移，真正能夠幫助我們推動該業務利潤率擴張的實際上是兩件事。 一是諮詢資產的持續生產力和成長，您可以看到這種情況正在發生。 然後，我們已經在其他論壇上討論過這個問題和其他問題，它在透過銀行和貸款產品滲透客戶群方面做得更好。

And when you look at, you know, our loans in the wealth business and you look at the overall asset base or the advice these are for us here, we're much less penetrated than some of the peers. And so I think those those things really help drive us to go get to more best in class margins, which which are higher than where we sit today. And that takes some time on the lending side.

當你看到我們在財富業務中的貸款以及整體資產基礎或這些為我們提供的建議時，我們的滲透率比一些同行要低得多。 因此，我認為這些事情確實有助於推動我們獲得同類最佳的利潤率，這比我們今天的水平還要高。 這在貸款方面需要一些時間。

As you know, this in this rate environment, it's a little harder to drive that growth and rate start to come down. You'll probably see more demand there. And so there are some cyclical aspects of it that does that sort of come to from a timing perspective. But those are things that, you know, the very summers and the whole management team and wells are very focused on and making sure we've got the right capabilities, the right sales force, the right, the right support for the sales force and so forth.

如您所知，在這種利率環境下，推動成長和利率開始下降有點困難。 您可能會在那裡看到更多的需求。 因此，從時間的角度來看，它有一些週期性的面向。 但你知道，這些都是整個夏天、整個管理團隊和油井都非常關注的事情，確保我們擁有正確的能力、正確的銷售團隊、為銷售團隊提供正確、正確的支持，等等。

On the banking side, we've been making investments in that business now for the better part of two plus years, a little longer than that probably. And you know, as we're adding good people were also not necessarily. We're also making sure that we've got the right people, the right seats.

在銀行業方面，我們在兩年多的時間裡一直在該業務上進行投資，可能比這個時間長一點。 而且你知道，隨著我們增加優秀人才也不一定。 我們也要確保擁有合適的人員、合適的席次。

And so you're not seeing this really huge increase in overall senior headcount. You're actually saying we're making sure we have the right people in the right seats. And so you've seen some reductions, as you've seen some growth. And so that's helping also moderate as the overall investment. And then also as we brought those people on, you're paying in full freight. When you recruit people right, though, that what you're seeing as you're getting, you're getting the benefit of those investments by adding the revenue piece now that you've already got the expense in the run rate to some degree.

因此，你並沒有看到高階員工總數的大幅成長。 你實際上是說我們要確保讓合適的人坐在適當的位置。 所以你看到了一些減少，就像你看到了一些增長一樣。 因此，這也有助於整體投資的放緩。 然後當我們把這些人帶上來時，你就要支付全額運費。 然而，當你正確地招募人員時，你所看到的就是你所得到的，你可以透過增加收入部分來獲得這些投資的好處，因為你已經在某種程度上獲得了運行率的費用。

And so I think you'll you'll see you'll see that pace of margin expansion moderate over time. But but what you're seeing is what you should expect, which is like that we made the investments you're paying people now they're becoming productive incrementally each quarter, and that's that's good to see.

因此，我認為隨著時間的推移，你會發現利潤率擴張的速度會放緩。 但是，您所看到的正是您應該期望的，就像我們對您向人們支付的投資進行了投資，現在他們每個季度都在逐步提高生產力，這是很高興看到的。

That's really helpful color, Mike, thanks for taking my questions.

這真的很有幫助，麥克，謝謝你回答我的問題。

All right, everyone. Thanks very much. We'll talk to you soon. Thank you all for your participation on today's conference call.

好吧，大家。 非常感謝。 我們很快就會和你談談。感謝大家參加今天的電話會議。

At this time, all parties may disconnect.

這時，各方都可能斷開連線。