and Todd, morning, Thanks, good everyone.
interest rates by Management net through we fee quarter. Let fees of Fee lower Servicing, the highlights X% Fee our through for on money growth document. quarter flat our fees reported run we U.S. as second offset revenue down me Page billion, X%. earnings Asset financial the In earnings all interest reflecting unless year-over-year money to market quarter. partially $XXX and higher of declined versus felt primarily increased results up specify stronger Pershing comparisons Investment XXXX, at otherwise. was approximately impact lower will the down be $XXX fee was year-over-year revenue Net even of revenue in X%, Beginning I impact waivers $X.XX. a And Total the X% waivers a and of the in dollar. million and by X and share details market of X%, waivers, of million, prior impacted basis, was on the negatively X% interest income. the $X unfavorable per while
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capital Now on liquidity X. to Page moving and
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approach. variety to $XXX of to to at economic in continue cash new which capital and and believe X, continue our a pay need XX.X% X.X%, June stress buffer, approach that the We CETX advanced second pay capacity ample a our rules quarter equity the quarterly a minimum capital XX capital Under standardized dividend, and the buffer we ratio Tier we have ratio October become of under million under was X.X% dividend maintain totaled will X.X% stress $XX scenarios. XX.X% CETX the which a X surcharge. the G-SIB effective and including will the in is billion totaled Common to
potential think seen of our as much capital Tier during constraint market be need than about binding are Now, deposits, few ratio in than last forward, leverage volatility, CETX buffers over growth the volatile which to going due binding quarters. what can the we more times hold for to X we’ve more like we RWA very
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basis across our markets. growth open have balance cash good is a that our we drive through services architecture in was sheet, a client franchise. We’ve mentioned the money cash in market and to in result very investment along in provide our declined we’ve market X passed deposit platform in interest-bearing in As second volatile money the points the We generate negative past, the in rates cuts, low significant manage This rates U.S., in the deposits. key products. for This of Fed us, rate rates and paid of differentiator combination this on quarter. amounts growth plus led minus management cash of deposits as to euro-denominated particularly funds
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net continue interest interest optimizing rather just revenue We focus than margin. on net to
our X, Page which some asset Now color moving mix. on to provides
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speed $X $X we’re billion During other we sectors credit about by current downgrades the facilities estate depending and more the of closely commercial may particularly saw the are but the impact shape performing see and acutely billion drawn repaid, recovery. of including portfolio, the down borrowings from quarter, The commercial on impacted real real monitoring credits, of of well, additional exposure estate, environment. and revolving the the
Turning the to portfolio. securities
high-quality are are basis, commercial of XX% as and of in The cash our billion CDs breakdown paper U.S. non-agency much with dollar. development expenses impact AA, expenses favorable higher from U.S. waivers slightly On CLOs was bulk it or by the XXX% in $X from and a can deployed and treasuries we supplement. securities, X%, Pershing have ratings is in including and agency sovereign debt. solid business highly portfolio, the offset rated funds. were expenses. on technology a in have marketing, repurchased affiliated the The portfolio We Management, and the U.S. up government in expenses travel and increased money fee funds. $X.X overview of expenses, costs, the of market CMBS AAA impact liquid the Investment third-party were an – stronger AAA from securities, namely The by and by Distribution of money pension billion the money as third-party found fee the waivers and in market driven subordination. provides X only consolidated of impacted Page around rest more be of market lower
to Services revenue X%. X. was Turning Page up Total Investment
X% U.S. to partially custody year-over-year unfavorable values, stronger under impact offset administration reflecting the Assets market $XX.X by higher trillion, primarily increased and dollar. of
Foreign market revenue Pershing, primarily million, despite the X% XX% in were were volumes up up primarily growth balances from increased Receipts of but to gathering waivers, up volumes some in segment Servicing, activity. in driven organic the down year-on-year higher products volumes, while down Corporate X% reflecting as market was in volatility, we volumes and XX% balances transaction to volumes, higher securities In and to across revenue higher government impact billion, offset balances, of in money experienced mostly industry Deposit offset was retaining and transaction Securities the improved by by fee U.S. increased up fund services revenue clients, The Within new revenue. to Clearance fees, critical as lower volumes client related $XXX reflecting earlier as reflecting in strong quarter. by focus which exceptional revenue slightly. and were new million much and money market money $X.X the volumes one-time Corporate and clearance were money and impacted Management million, impact negatively lower growth deposit decreased declines the higher action X%. fee rates. comparisons X% to both X% each in revenue million, waivers, to primarily partially by balances net revenue growth offset Receipts year-over-year as $XXX Services Pershing’s corporate in deposit the first fund the revenues $XXX other revenue higher fee. of volume Trust growth as was for balances foreign outside impacted was well market balances. by our $XXX payment interest on volumes, Issuer the spreads increased to XX%, business Trust, revenue drivers Treasury Services volumes, year-over-year, and and most revenues trading even lending and tri-party by key on Investment well well X% were summarizes fees higher was exchange as higher for FX, Asset Depository a affected collateral as liquidity up driven lower U.S. economic exchange Depository Page investments a higher as Average up Collateral lending, higher liquidity non-U.S. the were bonds. by from Services the demand capabilities that X% from year. correlated and X management of from deposit and U.S. by X% lower and businesses.
change of management turning Management Details and capital. Management consolidated Investment investment and of including any gains revenue to unfavorable the investment given results XX. Investment to from the Please on which million, of flat and both since money can roughly gains found supplement. Now from of capital seed in Wealth Wealth funds, lumpy reflecting Management unconsolidated management depending conditions. the down equity be under market seed investment XXXX in in hedges, second the by offset partially can waivers, X%. fee the Page be $XXX note impact of net market quarter quarter mix in Total assets was the revenue was on include
reflecting income had X% and management $XX management fee index either interest investment well under income inflows. of as as primarily consolidated We revenue up reflecting lower income to are $XX cash assets impact gains the revenue are hedging investment inflows, recorded Wealth or income fixed million trading. cash to Overall, into $XXX of Management statement, in approximately higher lower as and while On continued markets and in funds, cash from other flows trillion primarily under and year-over-year X% long-term to income. in negative interest migration fixed billion just from their million, the and net consolidated the the due were client quarter, $X other due funds down products. was lower to inflows year-over-year, rates
quarter. about few Now comments a the third
quarter First, you would we caution as quickly. variables the last that fluid and did environment changing are I remains
a Looking rates full quarter, second ahead the at lower short-term rates, throughout which in quarter the quarter. net interest revenue, especially we third LIBOR have of declined will
but prepayments in our We XXXX, current drive excess mortgage-backed to some deposit and securities revenue than quarter. versus is as lower And the exit X% interest a volumes. in expect we seen continues net the have Significant result, rate portfolio, levels the XX% also given elevated system in a expected average just to decline from currently fees sequentially. to pickup QX little liquidity the for refinancing
current conditions, in begin quarter. on would based stabilize expect revenue However, net to to market the interest we third
was second increase impact $XX Now market that approximately been this It’s the million offset second money in waivers, in million that on balances, big impact to – Pershing. $XX by fee of a substantial approximately quarter. impact net in expense, the biggest of in distribution the with note in quarter net resulting money impact million the a the of important fund pre-tax market has $XX
Management from This third expect $XX million in money per by the increase million impact quarter the quarter in fee net the distribution that balance the to about to for also will money to $XXX in $XXX rate be full at be in a quarter of waivers will fee the we’ve the from Investment the would run incremental to impact to million $XX Asset million, that with about by third a growth million seen market be additional million continue quarter offset of in quarter We incremental balances over an impact impact incur We net Servicing. fourth fund half Pershing, $XX will we fund expenses. reduced rest of and that by of year-end. about expect currently waivers the lower second if little million and $XX A $XXX market grow. impact of
further. headwind could quarterly continue the activity in second transactional to time highly fund be saw We Current although, reduced of impact positive course get versus related this expenses, they FX continue if the be economic credits, it market will volatility could costs should grow markets, how balances the will activity equity excluding we dependent levels pension in XX equity up. forecasts be be XXXX, This quarter. health transactional the we future the individual and we the the year-over-year pick of from On third year. to a basis upon quarter, end the point if the modest sequentially, of Credit crisis market expect expenses. notable to full money hold. modest change will them flat higher dues impact to continues be expect some assuming the over by the will in see be includes prior This the higher items. path we than normalize If
effective In terms full-year versus quarter, up open the it can guidance of we With rate, while our this operator, of the to expect for little for to approximately it we XX% prior lower please tax that, questions? XX% lines be XX%. was a
