CFG - Earnings call transcript Q2 2024 | Citizens Financial Group, Inc.

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Operator

Good morning, everyone, and welcome to the Citizens Financial Group Second Quarter Earnings Conference Call. My name is Alan, and I'll be your operator today. [Operator Instructions] As a reminder, this event is being recorded.

Now I'll turn the call over to Kristin Silberberg, Executive Vice President, Investor Relations. Kristin, you may begin.

Kristin Silberberg

Alan. you, Thank and everyone, for us. joining Good thank morning, you

Head and Van provide McCree, Saun; First, Brendan overview this to CFO, Head Bruce additional Chairman our Coughlin, results. are quarter will morning, of and Commercial and also CEO, John color. our second Consumer Banking, of Banking; of here Don an provide Woods,

take presentation, We Investor Relations our will located we be presentation will on be referencing earnings our questions. happy to After second the quarter website.

statements, expectations. which the that review forward-looking subject outlined Our to results uncertainties comments include X presentation. today your and are may to risks will of for Page on differ These our cause materially from are

presentation We it's also Page to so and reference in review the important the appendix. the financial results reconciliations our non-GAAP measures, GAAP of on X

hand With to that, you, will over I Bruce.

Bruce Van Saun

Thanks, good Okay. cost very we an expense call within and quarter for for today. today, joining control management, to the announced Thanks expectations. uncertain execute were our metrics, everyone. and good solid credit deposit well fee through performance, results Highlights continue and We which tight morning, environment. strong Kristien, include

Our XX.X%. ratio balance with of remains sheet CETX robust a

ratio XX%. loan-to-deposit Our was

below Federal we relative ratio and ACL X.XX%, are Of Loan QX. saw to million. and was advances Bank now our Our revenues up $XXX note, Home tick

grew underlying PPNR by Our X% over QX.

up $XXX Our underlying EPS net shares in million repurchased the or by over with $XX We income sequential X%. grew X%. quarter our million

shareholders. our is rundown customers flexibility over of our Share strong solid to and noncore capital to year versus has return a down combination The the from position, count capital ago. X% and freed us returns capital capital allowed up support

and continued markets as broad low led relatively was growth underwriting. by capital their fees bond rebound fee Our syndications

levels. and Wealth fees, both record at card

We also payments in seeing well-positioned are our business. momentum nice

quarter. billion. and goal terrific brought $X our from management quarter, billion the momentum. and up $X.X well had wealth in reached tracking And We 'XX of with teams $X.X in Private from Bank $XX leading Boston. QX billion deposits reached X one quarter a in we've towards one We Our under Francisco nice from in private at assets end San in billion year-end

Our important quarter us. market middle for Florida during increasingly a to bank leader and for states the California commercial hired for

overall out to in capital continue Great June. Senior to the market, recognition and for appointment as and be his continues half. the commercial to performance Our the strong to we years second franchise for over McCree middle positioned growth for in serving pause his Don well a I key shout our efforts Chair private give should look verticals Vice in Citizens. at

done a have targets, AI. XX, which good TOP our We commenced to and will new on executing have well areas X work initiatives. on we job is into tracking like top strategic push in

quarter. ran down fine C&I medium-term to on well. Noncore CRE is is work up BSO of billion holding reduce in have Our a relationships office. deep refocusing progressing exposure. Commercial plan the metrics general $X.X are Credit and outside our we

office our before the The lengthy don't of major have given to the several that we see and or news loss is half will exposure our improvement. Roughly take We good of continue is arms have which versus properties. see workout CBD expect district more surprises. we office, about quarters we business of suburban around central general been XX% defaults issue

about our prospects. we forward, Looking continue upbeat to be

outlook environment, over balance for challenges good a are in the feel we term. While navigate Citizens the the year and position we maintain in still a we many the as positive the there may to arise, external medium of are well that uncertainties as

the regional aspiration private bank the bank, and best consumer super commercial the Our bank. premier strategy rests on have a to transformed positioned bank-owned

expect to with to execute discipline operating continue from the that come and you've will us. financial We

John. With that, to let it me turn over

John Woods

everyone. morning, good and Bruce, Thanks,

results EPS lower Rounding With our NIM. levels second Bruce stable $XXX came or million quarter performance very strong and quarter, well. priority, expected. With Maintaining second AOCI the of markets XX.X% of various credit our for key and further and a deposit we of and we portfolio interest-bearing results environment, the driven impacted top balances in and of a and opt-out X% position a for net credit results which in maintain competitive strong NII by managed areas. excellent to Private XX.X%. second of ended against summarize X group. quite largely executing is costs X. record our peer our Also, highlights balance about the positively As financial and And Wealth respect well the balance capital a were fee fees number expenses top I'll to of quarterly continue and sheet second importantly, $X.XX reserve results, the solid Starting Slides with capital we a We at mentioned, to removal. in sheet generated Bank. including ROTCE with of strength, strategic in our card. build-out quarter near as multiyear liquidity healthy the are and quarter initiatives, position we CETX referencing adjusted the income underlying

maintained We in funding also second and strong liquidity our the profile quarter.

large is XX.X%. requirement in LDR period-end which XXX%, X XXX%. is LCR forma our category excess of the well bank pro And to improved Our of

we period-end linked front, billion by borrowings funding FHLB $X.X the reduced about $XXX On to quarter our million.

completing approach executed successful during another issuance, programmatic $X credit senior increasing That auto to spreads the structural it at a and base our of program, added about $XXX billion our we was to debt tightest our auto borrowings. date. with continued We fourth issuance million essentially our our and quarter back second was funding

loan losses preferred expected. were expectations. reflecting points, preferred a by coming and million XX rose floating quarter balances issuing also We in Credit a redeeming approximately second July X. little preferred of with in $XXX $XXX refinanced than The new line coupon to NCO of stock million million $XXX in higher of our on the little basis rate rate lower

basis ratio of X office, general prior XX.X% prior up coverage points XX.X% This for Our quarter. from in the is quarter. X.XX% an from includes coverage the up ACL

is Bank are $X Private very the capital well, $X.X doing billion the the the generated initiatives, of having playing quarter. strategic second years and through over capital markets AUM investments nicely out our space in and our deposits Regarding demonstrated private of Also, quarter. billion as this

as expected BSO excited of Finally, initiatives ongoing initiatives, AI from house our we are data technology-related about well benefits cloud as top top migration. and growing from including such as and the generative and contributions

Slide through more detail, quarter in starting income net Next, second I'll talk interest the on X. results with

balances. expense was XX% partly asset competitive X of basis increase deposit well XX%, performance points. at was reflecting to perform Overall, point runoff due average with to our NIM, down basis down yields very offset increase costs is by in X% respect sources, walk noncore X as receive from lower NII to our reflecting in with expected, including our was the rate and deposit deposit in interest-bearing which a beta can and franchise QX. X.XX%, at environment. see in net points X you from deposit continues point the quarter, decline cost in X higher down NIM linked basis interest-bearing basis As quarter. loan bottom the good down of basis interest the net all XX other margin margin With slide, in in our points This to swap a a

X. Slide to Moving

in markets were record wealth and strong up X% given Fees linked Our capital and card results quarter results.

Capital our momentum business However, Markets slightly underwriting loan strong second given fees a business. the quarter linked XXXX. refinancing deal great of strong, the we've of a of we capabilities the row. first advisory runner This expect IPO reflects quarter, the second diversification improved the business fees and benefit the see to in and It's market investments half in Markets with book down Capital #X positive in activity. bond remain see and demonstrates sponsor holding XX% Our off syndication to the quarter higher by M&A made position strong the our were pipelines our since middle

to Private P&L. AUM from grow second the team Mortgage given We hires. transition card a results our the ] delivered banking driven MSR will and continue new of a of decline as environment quarter asset benefit sales Production benefit from to increased given management higher the the and quarter increase wealth record in [ well as fees seasonally first contribution down net Bank, valuation constructive in with were as modestly in servicing fees fees market in the hedging well higher as margins. full the improvement Card primarily which slightly were the well given a volume. up purchase activity are a an from fees quarter debit platform by record, given

continuing and seasonal to we were slightly down as X, saw in our expenses in managing Slide while nice expenses strategic the benefit our a job did compensation initiatives. On underlying invest normal we

the expect and to X we progressing of million run program is benefit TOP deliver $XXX to a by the end pretax Our year. well, continue rate

work commenced our have and later provide we'll XX more We on this program year. details TOP

markets. was average our prioritize $X.X to with XX, the exits offset returning commercial The in commercial and reflects relationships, Slide relationship-based balance demand quarter balances, end lending. lower by optimize continuing we client increase loans in credit-only Core in On a down corporates the billion. largely are loan were loans and reduction by period quarter of loans our sheet of X% linked stable decrease runoff retail. lower driven slight The and in broadly of continue to paydowns linked noncore as an debt and decline portfolio issue

Slides on XX. Next, and XX

competitive do We Private deposits linked in Bank. quarter are of broadly lower in by excellent as extremely an growth environment. the deposits seasonally strong job an retail stable deposits was offset continue to Period-end

deposit the We with well holding cost Private of continue rate Bank. share higher deposits accounts the to of market as from gains cost see and as to benefit steady a Fed the demand slowing lower with migration interest-bearing

result, deposits. a XX% noninterest-bearing are of deposits about total at stable As

secured. cost about funding efficiently Our our product consumer and environment. deposits to granular, deposits are or has is our deposit effectively approximately our rate base of deposit XX% manage XX% stable across in costs diversified deposits allowed and of channels, This franchise overall attractive and the us insured mix are highly higher

basis costs given strategy. were quarter, linked our points Our interest-bearing proactive of deposit pricing management down X

C&I XQ. on to XQ by in charge-offs points seasonal CRE increase has in commercial and office that XX. loans. versus for X% increased auto were Nonaccrual was and in Net the due points, the average charge-offs Moving up primarily in The credit in by driven runoff. the been Office quarter, X a quarter. loans reflecting This which linked the were and reflected offset retail, basis decrease in level basis XX largely Slide in increases driven lower and reserve multifamily, to trends recoveries largely quarter, General quarter higher commercial stable fact general CRE broadly were by charge-offs linked

credit to the for XX. losses allowance Slide Turning on

a is and noncore the basis which overall optimization. reflecting lower broadly balances, balance point loan increase quarter, X paydowns stable from and Our commercial stands and reserves ratio coverage at X.XX%, first sheet given runoff

$XXX of general XX.X% $X.X first from reserve XX.X% million represents up billion portfolio office coverage, quarter. Our for in the the

Additionally, add $X.X billion. these losses you since general based absorbed quarter roughly have the $XXX second represents cumulative losses XX% reserves of XXXX, on we in March outstanding, office loss XXXX this million the of the a When rate of cumulative portfolio. the to balance

our past I quarters, general concentrated the just in $XXX million of portfolio to paydowns of far total charge-offs of the business XX roughly approximately is office loss properties million Over this X June so properties. at district point. exposure The about $X.X Suburban was central the been rate with $XXX given has at experience suburban mentioned. the billion XX% down Xx loss the and

scenario the which the much level, coverage of is worse some see of historical than that we seen the believe assumptions the On can office general left in represents you driving severe page, a reserve downturns. bottom we've key

feel we So very strong. coverage the is current

XX. Slide to Moving

have sheet maintained We balance excellent strength.

you ratio consistently of XX ratio be top for peers. opt-out TCE Both XX.X%, been current basis adjust under removal would if from the ratios the a points CETX XQ regulatory was proposal, the our strong among have AOCI X%. Our to and CETX up our our and were CETX

Slide CETX can stands on currently peers. You see to XX relative where

repurchased we million total shareholders shares, position, $XXX of Given and including in dividends, $XXX common our capital a we second the returned million another strong quarter. in to

Slide to Moving XX.

amongst our is strategy bank built and and Wealth commercial peers franchise. on transformed Our consumer build our aspiration Private a Bank to a bank, premier regional bank-owned the best positioned

consumer transformed strong a primary franchise and customer high-quality a deposit rounded in have with and we growth. relationships bank First, capable robust

our reason last the franchise from our dramatically deposit deposit of upgrade chief Notably, transformation has improved cycle. the consumer is performance the

far our more performance are median. time, more better this lagged in tools deposit We cycle, raising regional than in and now beta our pull better much our and we capabilities where peer levers last with so peers analytical to are

wealth our focused lending building adorable customers, on with We and also are have a prioritizing scaling are our relationships we we differentiated where platform business.

deposit continue with we build Importantly, Metro. as make York in base, to great customers improving engagement digital increasing we our customer share and New progress particularly our

believe Next, commercial bank the have we built we leading amongst super a banks. regional

and the the to of on are market slowest periods in middle companies and the particular, strong in In of after deliver poised set appears which have and our full ecosystem, economy high-growth We we are a serving we clients. sponsors deal-making capital uniquely private to serve focusing recovery sectors capabilities one of positioned the advisory to for decades. product

picks have middle consistent activity and right develop to market markets sponsor starting capital a are us that win of gives we We to the near and our environment up. as tables see top more league constructive a position the confidence

is building a gaining and very momentum. Private we're going that and well Finally, Bank, premier

base $X deposits, noninterest-bearing. are We billion we our and grow. capabilities to and with Management loans $X.X quarter opportunistically from Florida, Also, growing with banking a are talent Citizens have and attractive we banking the as offices Palm $X.X in of now of are at Wealth Mill billion We wealth the about continuing our centerpiece roughly private recently business to our billion effort. Valley, increase client of and Beach, opened prior now that and California bolster adding XX%

our exceptional the hit billion, quarter, XXXX. San way the management and Bank the We on our from target one of to the asset Private to in added X $XX by $X.X teams from second Boston, well AUM billion other bringing end total Francisco

the Private our track this Bank the line on in revenue to bottom $XX year. increased million Importantly, XX% on later we and break quarter, about are second even to

each XX. Slide point This XX for to in guidance and December. a of rate outlook We cut contemplates September Moving provide basis the the third quarter.

reflecting driven one markets NII should capital offset in up step by to more than across be be costs last seasonally expect to X%, We other down up swap slightly, this income by Noninterest X% cycle. pickup a lower categories.

Net expected runoff. benefit be stable. We to to should expense and charge-offs expect from modestly, to ACL noncore down noninterest are the continue be

Our million million come of approximately planned. $XXX with is repurchase CETX XX.X% in to $XXX about to share ratio expected currently

some the and to broadly guide about year we in feel good of with X% come respect are tracking modestly in at This the lower reflecting overall NII expected X% trending should to to come in to upper originally With takes. the end X% of Revenues line we NIM X% XXXX modestly better. above provided range, the level balances loan expected. January, with full PPNR. puts is down in the range of

expect broadly line to which do the on January well will guide. expenses, should to in us continue with be You

net expect the the and fourth a We quarter. with in NII in spot peaked that leverage the to costs positive in interest return rebound quarter quarter. third operating to given margin fourth

line in are addition, with expectations. charge-offs our net trending In January

XX.X%, of share repurchases ratio and and environment be our on target approximately of view dependent to continue the the level growth. to loan external in will the year We a with expect end set of

we momentum that expected. up, delivered to wealth with in a markets, wrap record credit in and quarter card results out good play To capital performance continues as largely and strong

capital the top our are group, robust and levels are Our funding. near maintaining peer and strong of liquidity we

well term. are multiyear performance are banking unique Private and Bank the consumer the of well over our strategic positioned businesses and commercial build-out strong Our drive progressing initiatives, including our medium to

tailwinds, we combined in hit ability these target. XX% tight medium-term expense XX% Given and return our with to to management, confident our remain execution strong

over I'll to that, hand with back Bruce. And it

Bruce Van Saun

open you, it for Q&A. Thank let's up Alan, John.

Operator

Thank you, Saun. Mr. Van

call. Winter will D.A. Our with the line question first for Davidson. come portion ready of Peter the now Instructions] are of [Operator from the Q&A We

Peter Winter

the talk Can of outlook off an going the update kind in maybe And to half it's on loan customer what the of second you year? and provide move just about sidelines? the sentiment them to take

John Woods

Yes, that I'll on and ahead jump go one.

growth. relates which but but to the We've When mean, as AUM, quarter, second drive Bank, half. continue the is I that the and we to So has will it that. and the -- deposits is at grow Private into X actually we're that's begin to accelerate -- loan in Private only really the the growing different got demonstrated XH signs for and seeing pretty I ability its think businesses we second look base actually that Bank penetrating not loans and customer to expect positive

commercial the seeing opportunities in We're driven and finance We In space, our finance. we've see do call M&A some line in space it opportunities sort some mortgage. particularly And been in subscription the customer is some up. picking then of seeing advisory-related expect activity pickup well fund to in as arena. HELOC retail, as in

legs as second demonstrate it, call that are to half. ability we stool into all the out expectation So growth loan as starting on of look the deliver X you our to really

Donald McCree

John, Yes, Don. in jump It's on I'll that.

this things also is interest economy a in think the okay. X cycle interesting money be be the appears as I X the and last of goes markets and the rate real weeks X we've to new seen to over to activity pickup to seems abating capital

So little opportunistic bullishness That's customers. lines. bit that's driving our more driving core activity the subscription And growth firms. a in it's PE certainly driving among among C&I

second in lines. think draws the sure, quarter, on I I'm the did some but of year. see not our the beginnings we half decent second exactly pretty Exact growth see So timing, the end of subscription some we'll of at significant the

Brendan Coughlin

consumer in lending to Yes. residential that But were our noncore quarter. are clip, at too, aside, growing a the Private bit $XXX the business complicated, the really core actually if jump reasonable and you we a loan rundown, by of card. million fundamentals $X And each little led a is billion on given in, story and Consumer side. The I'll Banking little down running

rates year United having the benefits being market into equity we of And sheet than had our history our their HELOC the going for in lot Our HELOC expected and home with reaping position balance is remains the position in the most higher incredibly us. strong. States, of customers personal a

So we're up the starting to some we're strong mortgage despite in see bit challenges modest the the growth book. of seeing growth And ELOC mortgage card on portfolio. tick a very a

then is used the Bank we than team our to. much really the broader turning offering hired that to And Private what

the still see we're lines. in was diversification diversification days, venture that to a led see really in quarter strength a starting of book. last private by That's We consumer. equity capital model. it QX, So did towards and this Early call of business

So the earlier in consumer in is the year. now XX% book low of XXs loan the

Some pick mortgage private to still HELOC equity. continued up some is and in lending business banking starting strength and

expect trend to We that continue.

Peter Winter

a a it's That's question, on what than businesses kind higher over to the sure were buffer was any there separate lower the SEB. you any Are the CRE great plans stress capital expecting. Bruce, help And just to expected. in drive I'm plans some mentioned medium just higher of of term color. came exposure? you I to the reduce reassess than

Bruce Van Saun

work and our Yes. much And They kind have been PPNR credit. robust. a good pretty of think result. has bit disappointed frustrated, of we job a modeling data Fed very so PPNR on SEB lot I own in modeling I I'd are a we've their does the the on more And were of overall, where to but consistently guess, say from. been is they conservative,

then like the tailor to where to fees swaps. at we the the pickup a the on good things pickup and in see much news are fees say I We conservative -- mortgage have have starting we're pick do level. rates capital. But we anyway, run sufficient situation We up scenario a going I'd lower, a is we in depending forward capital scenario. markets think we if

and business think, our think appropriate, having higher to So really changes don't hindering than model. we is the SEB that isn't Peter, so a need make significant we I strategy to

we're on the think right track. I

we places results stress said to Having return side. optimize and sheet off sheet some the that, where is balance to the do. the work the make that credit balance of still optimization on hopefully improve To risk-adjusted the there's

we was you'd but we certainly, so the kind CRE, run investors of acquisition. create up lot multifamily, lending to did And areas the we to A after of further low-risk we down, that sheet that that down popped capacity can see want really of kind over time. more And some that shift see CRE the as of deeper bring void relationships. fill C&I that biggest be would probably on balance we we'll the have

Operator

next with from line Najarian comes Your Erika of question the UBS.

L. Erika Penala

exit net the is you maybe noted wondering for you very at costs rate conference XXXX of I that could I'm -- and were context fourth the again question of and if a it John, in positively third about margin. John. peaking first and that the put were swap in you an talked This you June, readdress the quarter. think in quarter interest for about

If yields on traject deposit that are you costs and context December to of context obviously, cut. September it's And point trajectory could X rate the think we give notable, the here basis rate as interest-bearing improvement in asset you that about the cuts in whether in from and how expect without? in thoughts

John Woods

expect start off middle in Sure, beginning the we XXX the we did we've year, that of I'd into at exit in indicate what I'll of as year, that a of the Erika. thought NIM part neighborhood guess come little so. gotten to say that be the would or I with that is the we Yes. that better.

trends. than mention had we part and better up the we think can coming than time good we think expected, we're in a expected. pushed we that that be was offset confirm in a And at but what what lower I out net interest that those bit said originally conference little to saw did that loans last from And margin was looking a getting little at more that So quarter. little continue I earlier better to broadly, we trends I end going

interest-bearing was costs to very quarter. basis pleased down that a points deposit number this We were X print to be strong able

quarter that was rollovers second and that the a to price our it's think tailwind. we that of deposit in a CDs kind nice very our in opportunity the had quarter, -- likely costs I of interest-bearing have first some peaked

broadly, XQ year. I variability but provide positive think when of couple a get into is benefit all quarter Every along you other get outside the into we're from peak. of I the of there, swaps. trends as probably tailwind points be lines. basis think generating there'll the a I And quarter, the are mean you half second nice fourth following that some will the of the sources

XQ basis And see into be interest so them. off big about given the And last swap rest NIM X really of got that in drivers would by mean points third that And able time itself. will the net to net that noncore, we'll -- the -- quarter run a a of be bank to there's we've drive step-up is continues the those costs, all margin the rising quarter number is I in providing of of XQ. interest trough a which margin off.

basis in You've points happening that got range to which book X back XXX is or asset from what's dynamic of swaps, XXX with around we're basis securities the yields loans. that so given front book, seeing, standpoint ex point the and

board, And is the the the have then initiatives which across Private contributing. with is accretive which Bank, you

to continue from but Fed. it XQ, rebound longer bump of first pressures -- cut comes that along for strong in think those that a be in address out help, It's us I'd until say, the that first that on pressures that track the I'd cut all September would does to will on see also stay I not for late things, So contribute -- higher having necessary for Fed really and deposits getting you'll pricing helpful. say

see points So there me that that if let addresses stop of a you the number and made.

L. Erika Penala

will from third does. and Do be a growth In that NIM, a mentioned line And net the cost underneath XQ balance normalizing size the your that of growth? growth about with balance from like trough there terms rising in in your mix and 'XX wondering growth be as as is business a margin you moves move other above by Is what past going optimized. whatever that balance feel the about you're That for or funding as words, growth? else Or sort you business balance of sheet to you a think your out sheet wholesale you sheet. your said a I'm multiply investors or lay the interest -- could making of sheet. business

John Woods

of Yes. It's a think we date we be might is the have a X balance good sheet different at One XX, 'XX, here I of the there at question. have in second interest excess here. see to amount very drive some into that -- and the ability liquidity terms us that's that could through so lending I'd June powerful and the of -- you half, say significant in answers of second margin. will deploy net half

the we and opportunity term plus call the to into And have sheet in pleased say ROTCE that balance sheet balance say, range, the But adjusted over is business margin have a how $X.XX is interest the that majority opportunity in given to so combination one do place. I'd that time primary the June without strong at line balance sheet that optimization position zoom sheet grow medium growth the to net but able to the ] we're is for to it, reflating grow did really over medium out when of be we, about we driver of term. you powerful XX, balance the term, initiatives [ of our and what with think our $X.XX targets the -- over doubt, medium

into 'XX But So liquidity. where growing 'XX then probably I beyond. XH, of think in then bit in some little and we'll and maybe transition deploy a

Bruce Van Saun

is of just we the the is us, would Erika, think launch private bank. to I I which have add pretty that, do one to thing unique that's

the and grows investing in see of scaling in GDP And little and of kind up. we at commercial because should the should and nominal business, is keep grow we consumer growth certainly, the a adding if we So just Bank Private base grow the kind customer term medium as for faster we additional there.

Operator

Your next line Nash question of Goldman Sachs. from will with Ryan the come

Kristin Silberberg

can Alan, we come Ryan. to maybe back

to next we'll to Let's circle the and move back on Ryan. question,

Operator

moment, please. Yes. Mr. One Nash.

X then We'll Scott X Siefers You will go by pressing have again. Piper with Sandler. to next to requeue

Robert Siefers

we Maybe capital for sounded pretty maybe store a this some trajectory. it's weakness a sort like fee John, the quarter. markets quarter, in been we'll That's on see of story, like seasonal it moment. solid feels a pivot so good it was to could the third but And

maybe pipeline, overall you on broader looks fee-based how the outlook. main investment thoughts for just thoughts and just So the the on as them banking then some see drivers it

John Woods

row. period seasonally prior a in it's with and we're mean, may for pipeline us markets, it's I off XQ about [ the nice sponsor than our out the the let maybe floor pleased market markets more quarter period expect in that it's a seasonal prior start in table the think on down with done second actually performance little tell as really outlook. Don bit broader we the little been quarter play that capital another down middle I that, is I'll -- this capital the printing those see years. typical and where in and year position But I to the years. in X for is number ] But mean, broadly, picture is second higher a in more

a prior sure, the off but floor in that than keep actually X. higher to is we'll mind the that's given great down number So all XQ, investments something probably of we years, be

teams been Number asset plus had really Capital X, the significant those Markets we investments Capital driving organic and board, only within not Wealth, and the that Bank in inside all our wealth fees. all the but we making of management is of Private brought X outside investments on broadly diversification, we've Markets,

quarter. around, our be -- just you're the a helping our customer rates. rate opportunities exposure seeing see in contributor the in hedge see wealth the So you to moving bigger to third environment we're is as

And number a see just charges be expect -- to there stabilizing other banking so rates we including and and opportunities we're service benefit for down. to going ability of to some seem and categories, possibly mortgage as

on head of stay just of here will there's us other you the quarter. given to allow that diversification the track platform the into categories So a number as third

Bruce Van Saun

just cleanup to that, income. in regulatory some did to also add And items take we other

why Don, But a you more don't bounce back quarter. color was So that which in the quarter, give that, next should suppressed little with on.

Donald McCree

Yes.

favorable really characteristics year, primarily liquidity. are half market it's the refinancing that of now. There's So amounts interesting. was of enormous market. And right first very The a the which drove the

look was maturities. by existing XX% on and it you the equity that beginning the sheet done team. what refinancing being private lending activity exposures and what led we see in capital at to see if new money of core balance were So we're bonds, didn't and people's like extending transactions about syndicated is markets And

really grow the the into pretty bank. to move PE a is there market side are the in a rate So that's profitability decent investment big frankly, the the favorable economic starting Remember, as middle and environment, underwritings well. we more And on pipelines M&A interest environment, where that's hanging business. of drives. primarily we're see a are where we

million we valuation So midsized do deals, capital raise. raise valuation, $XXX $XXX capital to billion billion to million $X $X

up been resilient big-ticket actually the which M&A getting than have scrutiny in approval. those getting really regulatory government So held more and deals, are

well. business. the reasonably lot. and a broadening high the of the some that's trigger the people seen are along happened moving the come. of some rise There far. continue the the and the of lot markets, But of that to of begin equity if markets IPOs be and IPOs We've aftermarket to equity could we performance aren't to to side IPO ready, last of year seem market, and get have more pulling that a you so prepped The we see that been going actually of but those the place we So saw in seen are than kind haven't

pipeline follow-on side. have on the decent And convert then side on a the we pretty

encouraging. half need a 'XX, we pieces got it's second frankly. all is good markets. think we've And favorable and broad-based. pretty the And very great backdrop a It's we to for of think the advantage I So take the

Brendan Coughlin

I'd just is very improvement quickly on Fee maybe the consumer very side, sticky revenue. durable, our add

little out a rates repeatable give is be fee sticky, if zone. bit is has bit think cards So the of we Wealth John both around bottom X.X will bottomed income. predictable, changes mentioned, and the drop and million reissued favorability charges new service and AUM durable, line in we directly that quarter could we'll I drops stick Card that just a little Bruce to debit a and mortgage, the last the growth contract then

momentum consumer So -- a lot we're that's what volatility. on without upward continued for of steady calling a

Donald McCree

private interesting never prior to because market I'll just the it's we're see capital add is one their -- at teams more a banking thing business had beginning employer.

starting activity think a that at some a new that's among half brand Citizens a so private And don't the client but see crossover Capital thing, from was to that's coming second know on opportunity I I we're board banking really resident are never that base clients in Markets. if before. the

Robert Siefers

and wanted the I office the a then specifically And reserve to bit reserve. little Perfect. ask about

down we're now, curious sort guess sort very, start with reserve office other In of high. about think I to which XX.X% would losses as course, reserve. what existing come absorbing very might start you that rather at than that them continue to of that to you about is, up think of up. allow to tick the to allows I words, factors I'm

reserve that you when as more being the might talk curious fits in office reserve the benefit, how broadly, the in noncore particular? about think but allow thing I to about you've there, just to runoff pointed

Bruce Van Saun

I would let in there's Yes. still John say that lot start I'll office, say, space. of But color. a uncertainty that add I'd and

cap interest seeing rates, of Just the future path terms in rates. we're valuations, what of

with charge-offs just then so And think big and the having the conservatively we've a while I letting of through maintaining played kind reserve. it reserve run

things right point solidify to the little see to so move you'd a you in speak. a and where have think to direction, started I start bit get to to

next really don't happening for that actually see certainly this happen it year. sometime maybe And I -- in year, will

better when that's it point be down they're we'll able where We've when for the are. I direction, think, we'll our the that just got the good to our with we'll the moment continue happens. nice right of working through see like deliver don't got a kind around the prepared draw reap know But things outcomes. surprises. hit look borrowers that the here reserve, So We kind arms we've on in maturity a of John? work slog and expect at we we'll moving when the I start to, office good schedules to on benefit feel properties. people what way to big we're to start any

John Woods

and XXXX just valuations occur of given in a growing could point. would on. be I is billion. mean confidence be that our mean -- other down transactions that all I we're that else with just out sheet outcome to book by some have But the strength, billion, multi-quarter expressed a the really are uncertainties the echo we maybe $X.X that we this likelihood feel Yes. any balance down. would so capital. probably were also and anything reserves confident and supported having would seeing we're multiyear in journey position, I we that any started capital $X.X the I working mention at

we're lowering we're working... quarter the exposure So every

Bruce Van Saun

through is is That's truck Nonetheless, good a through way it some repayments and coming down. it of

John Woods

Exactly. And able we've to and sort we're through kind been better extensions, We're positioning had have to of we're that in come we've payoffs if given getting the getting collateral. with and we're many cases, our in when riskier and to and lean the opportunity really credits some of borrowers we've that and extract, accelerated profile maturity paydowns. conversations having working been our

multi-quarter journey, our I So as a feeling this and good we're about [indiscernible]. is, said,

Bruce Van Saun

your we away commercial a reserve seems the C&I to office, clearly, Just risk general be calculations run recession we're metrics of than was in to couple is of about that And of and too, on question, quarters we're elevate feeling the it our seeing to ago. part that what based second consumer good scenarios. less in from the still away from the

so And to somewhat. of need rest our book for seem to adding reserves abating would be to keep the

say have that's charge-off on of So those quarters. being trend to a number down I think reserves, able lower coming accelerate QX, when we're which will we'll in we to we see the -- continue out why in slightly draw calling and then

Operator

Your next with line question Usdin of Jefferies. the Ken comes from

Kenneth Usdin

doing John on flat. and side, the are you keeping Bruce, costs so guys cost early job

You hiring you're bankers. mentioned earlier, some

You understand of and there to the and in the I puts of offset growth in point if et come growth of banking your line people. still help terms we where -- of top cost to strong just of line? that hold I'm obviously top the investment of it's this us takes guidance, on with the to to those the full know And year hires but and in year just more you the have like the program are at the kind results, terms be that is cetera? can where and and the just extra of wondering management able you kind have kind are there wealth like offsets

John Woods

question. Yes. Thanks, Ken, for the

that into of strong a this number underpinned you years. a $XXX this of benefits emblematic it, line a program year. program That's in rate really Just We a other the year, big to analytics to so ] of in talking contribution who program continue interesting and the launched top TOP run as the of to been you contributions. ability generate, driver. have We've which about get that vendor a will had of fraud opportunities, or are, our for going underpinnings it's number have branch and call often invest we really the [ future end XXXX, data rationalization this including top, when know, years. of is we program, year million

able we about innovative of early those course, been kinds XX of feeling cover The on. over And entrepreneurial time, to not initiatives have is needing that, we're the fund, and and in good program while that to things. TOP working way opportunities. we're And invest to the sell

do converge the that very 'XX TOP add. program into feel to ability end I'll and and self-fund in I expanding have launched a going ability our use investments ability you else stop out technology and think so broaden underpinning to of would There's anything to as an generative with 'XX and -- live if the to there into I platforms maybe get there's other data think and we're I see nicely like see AI about space, in to make of some couple we're the just our of doing half space, mainframes and we to pretty in our investments converging good our those I dozen -- the in What which terms and the we next pretty of TOP areas, on analytics. And there cases. analysis ongoing program. we're a think a

Kenneth Usdin

right. Great. Okay. All

goals question, still you're RWAs think at you with of all zone, preferred And redeemed and I [ for are and your as just buyback how you the position? XXX as capital terms kind the you about do like in that, of XXX contemplate X:X], in of your prefereds early the to July. SEB like you -- Second in X:X that issued that, about overall know the I ultimate think the optimization stack maybe of X:X, what capital think

John Woods

we'll We're that mean, -- XXX look XXX we basically CETX, capital so that we stand at our and in RWAs fine. We is up the pretty probably fact think quality X. of end a is XXX -- I capital where Tier we to got is with range much we higher probably that have probably we more driving of probably we've around XXX where space. won't more think stack, overall have is about I good fine below given overall feeling the you the CETX go Tier X when operate.

the periods to and into into call of issues -- that a into are number ability out there We 'XX. have coming

the And did paying this preferred on there some opportunities just are very could opportunities to we refinance, lower be to like refinance coupon some we're preferred so interesting year, there capital. our that

that's eye on go an keep So something 'XX. forward into we as we'll

Kenneth Usdin

Great. Okay.

last follow to X on just sorry, up one. And that

balance way parts moving to the forward on the have Is talked that been sides earlier. size, all been sheet the both average bit coming flattish things your sheet? average I earning RWAs have the balance kind But about right going little earning and assets of you given Just about this is the kind down total so a And of -- flat. of think on assets. know

John Woods

yes, I 'XX, for to RWAs. the is with answer mean, growing I Yes. think that

overall in zone as basically same really the XX half some lending As being second the is I sheet mentioned, we into the we plan. but are liquidity see to in at balance the deploy basically liquidity where you ability have excess June could excess the and today,

the would growing June end XX RWAs of see from to So the we year. loans and

Bruce Van Saun

spot liquidity. deposits about just spot We can I'd the that in though, see say, some and above loans growth, deploying in QX

So just clear. to be

John Woods

just loan given higher. about interest-earning bit they where growth. the have will Yes, agreed. maybe assets are that We're growth securities see It's balance to on overall little sheet a going and deposit excess just we that be

Operator

Your come of will from Gosalia line the Manan with Stanley. next Morgan question

Manan Gosalia

to uptick If using need in increase is, in your XQ it I guide in you implies the that X% into to I quarter-on-quarter try NII number to full NII do know loan X% Do guide, help there My there's and the year back growth. Do but costs XQ what come to the -- XQ. on from rates? down? see see us question you help need some you benefit also from that? front, do to you the deposit continuing need you NII? need Can swaps any to see frame

John Woods

XQ the coming rebounding. I'd in say net majority interest margin from that Sure. Yes. really And increase of the broadly is

those the of of back and dynamics allowing positive tailwinds whole of is front from in NII the book noncore, all the all the margin increase majority those drivers from So XQ. book, platform net just interest for across

how call loan and and are from all that all that meaningful growth about we However, contribution for the Bank, plays there expected in to as out businesses, second talked Private the a is and from X commercial expected terms loan to how well, of earlier in growth contribute consumer half.

back noncore that about you mentioned, half. as you book and wholesale better you heard I interest into -- funding just the deposits talk When it as margin that increase that's deposits more net where that less comes Bruce get second to we'll a number, in front -- just have funding mix increase have also book,

question Your rate cut. and pricing the about that other deposit

us that that we're net well the I or have keep have higher We whether asset for to think Fed where there some to we a somewhat migration but not. neutral. sensitivity deposit balanced then tend on longer a being rates the impact benefits tends position forces some cuts and higher, offsetting little to often close around with floating

quarter meaningful example, rebound we a whether pretty so versus and good a optimization all feeling then or about sheet being NII we're is, basis. think there I and cut out throw fourth the I'll increase on initiatives Bank the get balance XQ. to And part -- margin not, net Private quarterly a And for how interest and last all are a accretive the nice again,

Bruce Van Saun

that well Yes. as And that we the just seasonally strong quarter that reminder is would add think that Fees. also a I QX to for

right in there rebound think expenses could strong NII the seemingly in direction. I on discipline credit quarter, that kicking in So feed continued be QX, moving

repurchase. -- continued So then and share

a QX have So that the you could nice of all results. in kind put together, uptick you

Manan Gosalia

is commercial need utilization? helpful. to back in for Does lower And around And you higher to several positive as that middle lines really picking come uncertainty that factoring then Or follow-up maybe the side, clients? a up up? how with for into on you half. your outlined drivers the rates the with market the pick How utilization conversations do election? see does That's

Donald McCree

it's capital Yes, what we're as in lines. utilization growth assuming in call largely the our and subscription

the So we're seeing a little bit in middle market.

market middle kind levels be of do leverage take uncertainty. seen trend their What little will is companies longer. the middle think down we've economic our bit I So a market with

said next show new aggressive of their of plans bunch to I So I have And little stabilization, a begins last get more middle-market every they businesses. single were stabilization whole months. certainty a the week was investing investment signs they over them the economy with in more was and maybe one XX CEOs -- of

impact longer. bit -- little from I take see of don't will a massive the that And So election. really

someone in their which acquisition says some playbook think California bankers mean, I intact. playbook mentioned, Florida, we're run they the day day strong Bruce in based out. just where the medium-term having to trend clients And in, ran extremely is the and market you we is platform, client we onto and to But are I bring market on -- the them. we going mirror York, seeing think experienced may volatility with going I get as what we're New

months pipelines hiring within new So very building of those X days, are but bankers. early literally kind of

So of I that another the but there think. for won't be tailwind huge be asset, numbers us, will

Operator

with comes question the of from Pancari next Your John line Evercore.

John Pancari

shrink the here. the CRE about expectation, plan think exposure incrementally from I to talked we Bruce, medium-term the

commercial of settle out? now, you to reserves, post that mean, an wanted you right that this from do Just runoff. I it capital your loans goes where about could get think where perspective risk-based think are XXX% real of idea estate expected your plus

Bruce Van Saun

the down the book the that classes, be in medium upsurge probably to over that want big lead the come down a multifamily, smaller at pure bit office, a will say with we we'd asset And term, investors can least I'd commercial took XX%. across take Yes. we since obviously, deal.

make private will with room since We for of their some opportunities CRE important the customer part bankers base. it's

of to kind bit gives sense directionally of offset that. are. as that be And there'll to the what so a plans a you kind little of But

allocation And the C&I to capital to CRE like over for flex we're call, think C&I a as that smaller and of more room earlier have said growth in loan I bigger kind making a I to time. and we'd

John Pancari

Right.

second to on side. That's the Okay. that, private helpful. banking related my is And one

commercial, XX% that is industry. of know deposits, DDA. that related First, those that are capital of and venture much XX% with equity private on I the side, the billion deposit deposits in are firms to How of $X deposits

Brendan Coughlin

by firms. Yes. banking But majority that operating are venture deposits, it's the private deposits. led Of the commercial heavily equity I would oriented note and and business from

the is business. And way percentage so actually starting why bank, the is DDA their and high the cash relationship operating CET which that works in is the so as management

So lendable predictable generally and deposits. they're stable,

with pleased the profile. we're So

to Private If good drive even in, deposit look at lendability to base is obviously, the of quite we've the the loans the the LDR just low, and within profile liquidity pattern have a growth you you of think Private come that amount Bank got of the Bank. when of continue and the loan

clip. with That time to that and healthy given pretty sort The more And do a business that that catch book it that takes deposit to consumer that XX-XX, has you're XX-XX a the just in But over with will split. XX-XX. growth, quality more. some of still pleased remained diversify longer-term we're maybe we horizon suggests diversify So the pace of expect the book But time, at obviously the to seeing consumers. up. growing loan is over of the also

Bruce Van Saun

loans... and Deposits

Brendan Coughlin

rates private which well. opening business worth to then time, loans, and commercial banking a strength as held Deposits mean change continue the but these of we're the obviously, of the attract I with higher growth back offices, more is net and we should on mortgage, individual high have pleased lumpier, do deposit and and banking to and consumer quicker over the

John Pancari

Okay. Then one last one.

a going I the just side. If know and update team of the tougher hires AUM then you acknowledged end quarter it $X.X that -- you to might Wealth jump us maybe that private the on looks you up additional could towards in like billion AUM. had banking but be And slog there. the about that likelihood big of on the

Just curious give could a of driving recent upturn. you bit if around color little what's that

Bruce Van Saun

demonstrate and is start we make I'll want we this an But to as pass Yes, to that to Brendan. a it profitable business. overriding just run can point I want that

where accretion Private this $XX of were year getting then X% loans, launch initiated in when to we to And $X translates do bottom next we billion the AUM, line. to we breakeven billion fourth deposits. put That -- hitting the billion Bank, of as to year, there to so quarter. that $XX our And going numbers markers the out some had of of what

the we're that we're on. levels. really still more in support people, We're feel so the investments service building And and good we building trajectory about We're making the business.

to next that our start in we are unique numbers running making they get want banking expand And to is bringing that. And want kind to teams. that We in before the had particularly said that private up and investments a contiguous open those set we the hit going on and that that has had if regions the execute and We affect in can get crazy and sell. teams XX opportunities. don't the geographically over we've we have on the be we'll strong that locations, months other side, fit were we capabilities New situations of with other can knew Francisco, and ability the to with Card important going a be the Boston, thing that that other that, been ultimately flywheel management to by then base hit focus numbers Wealth right, more San we there Having are Florida. teams situated York and to

great one base. in a everything, their far, more transfer from And in San bring so, of X to we've that Francisco, in teams in rise customer quality, able That's so chunk been to one like big with accounting Boston. for

have So there. momentum we

interested of platform. joining We folks also in have a ton our

have come they in So teams those quickly we with usually really bringing to breakeven financials that negatively conversations can keep around the and into wealth turn in profitability. don't those the because impact near-term opportunity

add to that. So you Brendan, can

Brendan Coughlin

make financials, you would talent as nailed banking quality the make the only sure what say until quite only I but We're also confidence Yes, is that. attracting going and be of the we're in be side. highest [indiscernible] very the not thoughtful going expansion well selective just teams. built, being selective both have on side we're it's we and very very that pleased attracting We're still on wealth you the side, with hitting still the very we're is said. on clients. the and to disrupted as market how The the client we'll build on

little from we side, you're RIAs win On the we're being a I private have getting there. paybacks on the there's out advisers at here, selective a Wealth the We're lot quality for the that given also done a market. X our obviously look, but when X the private remind high. you of the been highest I hunt book acquisitions. economics all on paying. lot of over reach we've in your in We've the in would Wealth some that scale inbounds or some just all-time the are been XX tangible long multiples buying to at history, years, I'd plus say, our And really with for looked time first of value right very equity is have think of and firms of an

acquisition in minimis hit. really a value point, us. Obviously, J-curve are the And So more short the significantly to Bruce's not the term. economics attractive book there's to of large de tangible talent with

So we're we're and very that pleased talent with the inbounds getting.

we We top talent to the that out really bankers to add hired. expect to selectively wealth continue end market round

a second to we're half looking So forward strong there. of the year

Operator

the Your next Gerard question Cassidy RBC. from of come will line with

Gerard Cassidy

and than of I the think X gave the is about real downturn talked us you bottom that good left-hand or office worse X that share of downturns. some you answers. us far portfolio historical detail Slide John, estate. in commercial said And you show with XX ideas assumptions of this your corner Can

When I workouts back, First think attacking quarter using that you aggressively over early assumptions guys year at second then are 'XX, just to those a you're look now. is, when how of you portfolio have today? you the for look back been the compared this in

Bruce has just with resolve just work until these to incrementally then it it maybe And terms got we sometime itself What in you and year. and Or doesn't second, of office stabilized portfolios? office? in seeing next problem through valuations this deteriorating are still I'm Is that or losses?

John Woods

rollovers and and would actually off, deterioration. what the that earlier entail so think Yes. see or with mean, Gerard. we has year what's NOI over ahead I'll been what -- valuations I and at respect rent our I evolved the and last would to outlook speed start go

will we our at a it give reserve the to year I there's be are left, that why our and but collateral XX% hopeful into end lot we have charging valuations ago. year. it say decline NOI. where have of look feel to a grown we're take I'd will that like attempt evolution this you work fence off, when levels been has last again. event trough, endeavor ring the up as think this the say Every property valuations start extract [indiscernible] can forecasting a we've we than -- for higher done and XXXX over which our our with additional in And And multi-quarter still quarter, best through leaned after main now XX.X%. we -- still to we drivers and course, steep that uncertainty work put that think this will really be conversations the reserve we in they XX.X%, the to borrowers will and through variability, with of what I'd So our those a with and exposures this were around continue variability the in quarter, paydowns that But we've maturities this of and at

Bruce Van Saun

add do to just be help think rates Fed move I here. will starting the would certainly I that lower

ended in part like and NOI up rates higher So back impacting going those of up thought was we the things inflation reason the cap that because losses at early that. what than potentially 'XX

rates positive there if inflation also call but scheme getting think the in the And big potentially little a But that's things And now leveling not early a Fed other that to the I And things. in I so to are down, It's or actually again, holding generally think to off. signs. too lease direction. significant starts move we've up. are return picks victory seen move could start of rates to better some up as that here, office

Gerard Cassidy

to Can or. it second say that the guys office of you derivative seeing, we in fair deterioration is it the is -- slowing the that are rate of

Bruce Van Saun

Yes. Definitely. Yes.

Gerard Cassidy

lot a that. numbers. XX guys business follow-up, #X then from is the sponsor business markets your private And and your our some and you in capital a Okay. about Slide in great talked benefiting as you Obviously, show equity

capital the have -- in with over is, to question not for it's win subscription So your this it business. sheet on to have call seems the use to or business years lines sponsors, you balance markets but I this capital and the banks win

got You've sponsors. to the lend to money

give one with share items Can us of exposure you share you some Bruce, channel. seems industry you you Don? you initial for guess, banking side us that could that financial lenders regulatory exposure come through in your private of or your reports with indirect can like How and is that has it's to line risk? the the the the derisked, there? us been maybe to, one Can but credit it lending and there, So manage non-depository Because color I them. exposure the

Donald McCree

I Gerard, Yes. don't that? Don. why It's take

sector lines, have of are and capital We have private lending, it, kind where the LPs as lines based almost have the like. to we we organizations, -- call on of are structured in private bank some we obviously and pools different which of advance several ways. have like the we credit asset-backed subscription So financing capital rates which underneath diversified loans

safe, like losses on take actually if even their portfolios. So to some investment-grade it's lending, complexes those begin relatively almost underwriting

we those like So a X lot. businesses

entirety other underlying of the and when like going not is concentration the them there very our the in bunch the numbers do probably we it an we financial you distribute been has whole to companies. because there large includes million company already. at exposures much grow then, is riskiest outstanding course, too non-bank more stuff to that of $XX But It's buyouts deal. of across The large that on a There's look a And We're leverage those to holds. land also. forever is given average underwrite business. strategy a insurance

the large over is of or given leveraged book shrinking lack The across group activity diversified years actually credit. very So a X.X kind of last the of market so.

concentrations way diversified there So those very leveraged been really hurt is and know, see you like going not of we that businesses. we we're you I've long a big very with feel business, get and our you that's run have loans some time where doing but competition, in as well you the when and for because go we're this just to

So big the pops. are those really

Operator

from Your next Georgia of question will line the Bank. come with O'Connor Matt

Matthew O'Connor

deposits guys or of, the about first call think X how more and guess, talk will kind X be I price down, you you Fed Can sustained versus it, cuts reduction?

John Woods

likely cetera, overall. place, have out The in see and cuts XX% way the in to the CDs, are cuts. cuts modeling to in forwards those opportunity down couple I we're that. to of what to more of first out mean take the longer the and The we're down. think see playing XX% rollovers approximately betas lean it first I price those there's et couple I'll under sure. Yes, of

good round data [ data our where think into updates by to we you full get beyond. into $XXX get up in fact terms the that to down we approach the the the is our end around be -- may So X% XX%. ] could that have, when trip is -- out full think that range down around get ] forwards start could outlook [ of 'XX of 'XX I tightening the the Through cycle, were and and approach

for but that to I could million first get full the think be level million $XX the the data down up cycle, to will over couple. $XX it

Matthew O'Connor

I And does bit up thoughts well with you the industry trends guess, -- you've some do as obviously, deposit side on some broader of Okay. got kind in cuts? and specific then see initiatives, pickup some deposit for, a growth but pick

John Woods

our Yes. going half growth have Yes. I we're from contributing believe to of all think broadly, the deposit I in second mean, X businesses. we

deposit So we're that quarter. of We've a be September, and in all will We that, have got seasonally down going expecting contribute half. are that helpful. XQ initiatives growth one our that outlook that and in our in is we place to saw plus the cut to second

funding will deposit helpful that lower be and in second deposits the wholesale to have as be don't in that mix it's kind absolutely certainly, higher, of would think to deposit then deposit a migration stop And consistent mix to because But continue to the of the has sheet, that to half NIM cut with balance growth. into growth shifts as I broaden been out, that funding positive industry seeing. a it have very that have tailwind that when and aspects we terms get order overall be can funding growth NII are the average for the and you and necessary well. that's

Bruce Van Saun

uptick was Yes. deposits I quarter would billion. just Private the Bank is in add in some the $X.X there color

book customer that Private the so rhythm and And can the we've cadence of base. really and a terms got and see of the you in growing in Bank a kind there bringing

drive again, having So opportunity. we that growth most business banks expect would unique have don't have deposit and other something to that to

favorable that's some generally in the commercial business and business. seasonality there's then consumer And the

outlook the So pretty deposit is the half for I think second solid. growth in

Brendan Coughlin

a on we performance, DDA row on deposits and the set that consumer consumer we we're basis of DDA a number peer this low-cost in add far #X and a The I that continuing. believe would see with the that point we've outperformed so years relative for benchmarking side on one we in see is year, and relative where we

grounded our for that trends year us certainly, in up whatever a expect the the much market real strategy have think that throws long we And this So outperform the health and so to of doing DDA deposit has strength. peers of now. is our we'll continue base a stabilized and time been we

Bruce Van Saun

Okay.

the a for dialing Have Thank great and your appreciate for it in your think certainly that's interest I you, everybody, queue. support. We today. day.

Operator

call. concludes Thank your you That conference today's for participation.

You now may disconnect.

Citizens Financial (CFG) 17 Jul 242024 Q2 Earnings call transcript