A：The CEO highlighted that the fourth quarter results showed a strong financial performance, with net income increasing to $21.3 billion, earnings per share up 17% from a year ago, and broad-based revenue growth. Investments in the business helped drive this growth, with fee-based revenue up 10% from a year ago. Expenses were managed through a disciplined approach, leading to positive operating leverage and opportunities for further efficiencies. Consecutive quarters of headcount reductions were also reported, with headcount down over 10% since the second quarter.

A：The company's balance sheet and assets grew 11% from a year ago, driven by broad-based loan growth and higher trading assets to support its markets businesses. This also included higher deposit balances in both the commercial and consumer sectors. The growth in assets reflects the company's strategy to balance sheet expansion.

A：To monitor credit performance and consumer health, the company tracks various credit metrics in its loan portfolios, such as early stage delinquencies. Additionally, they monitor a broad range of consumer behavior, including checking account activity, unemployment flows, direct deposit amounts, overdraft activity, and payment outflows. Despite monitoring these trends, no meaningful shifts or adverse trends were observed.

A：The removal of the asset cap by the Federal Reserve was a pivotal moment for the company, coupled with the successful closure of 13 regulatory orders since 2019. This demonstrates significant progress in transforming the organization. The company is focused on building on this work and sustaining the supporting culture while continuing to execute on risk and control initiatives. Growth and return improvements were reported across several business segments, including the consumer business, where the focus has been on driving strong outcomes in the credit card business with new account openings and maintained credit standards. The auto business showed stronger origination volumes and growth in loan balances. The home lending business was simplified with reduced headcount and mortgage loan servicing. Additionally, net check account growth and digital branch initiatives contributed to the company's growth, alongside progress in wealth and investment management and commercial banking.

A：Diluted earnings per common share was $1.31, up from $1.26 in the year-ago quarter, driven by factors including the reduction in severance expense. Excluding the severance expense, diluted earnings per share would have been $1.76. The increase was also influenced by the overall strong performance reflected in the company's financial results and strategic moves such as the headcount reduction and efficient operations.

A：While specific figures were not provided, the CEO mentioned an expectation update for 2026 net interest income but chose to postpone detailing it at the moment. For a more detailed outlook, the audience was referred to the CFO's review later in the call.

A：The CEO mentioned significant growth in average and period-end loans, with both increasing from the third quarter and from a year ago. The growth was driven by commercial and industrial loans, corporate investment banking, and commercial banking. In particular, growth was reported in the financials excluding banks category, with substantial contributors being asset managers and funds. This was also echoed by the CFO's presentation of strong loan growth across different segments such as commercial and industrial, and consumer finance.

A：The company's revenue growth was driven by a 8% increase in investment advisory fees and brokerage commissions, which is the largest category for fee-based revenue. This growth was attributed to higher market valuations and wealth in investment management.

A：The decline in noninterest expense was primarily due to lower FDIC assessment expense, lower operating losses, and the impact of efficiency initiatives. These reductions were partially offset by higher revenue-related compensation expense, which increased in wealth and investment management, advertising, and technology expense.

A：Credit quality remained strong with a declining net loan charge off ratio. Commercial net loan charge offs increased from the third quarter, while consumer net loan charge offs rose modestly. Factors contributing to this included stabilization of commercial real estate valuations, borrower-specific issues without systemic weakness, and a modest decrease in the allowance for credit losses despite stable coverage ratios for loans.

A：The company's capital levels are considered strong, as indicated by a CET1 ratio of 10.6%, which, while down from the third quarter, remains well above the regulatory minimum plus buffers. Average common shares outstanding have been in decline, showing a 26% reduction over the past six years. The company has maintained a strong liquidity position with a focus on efficiency and investments for the future.

A：Revenue growth was driven across various segments. Consumer banking and lending revenue increased due to lower deposit pricing and higher deposit loan balances. Home lending revenue declined due to lower net interest income from reduced loan balances. Credit card revenue grew from higher loan balances and an increase in card fees. New products contributed to the growth, with approximately 50% of loan balances now from these new offerings.

A：Revenue in commercial banking was down, primarily due to lower net interest income, which was partially offset by growth in noninterest income from tax credit investments and equity investments. Corporate investment banking revenue declined due to lower investment banking revenue and the effect of lower interest rates. However, there was an 11% growth in investment banking revenue for the full year.

A：Wealth and investment management revenue increased 10% from the previous year, attributed to growth in asset-based fees from market valuations and higher net interest income from lower deposit pricing and increased deposit and loan balances.

A：The company expects total net interest income to be around 50 billion in 2026, plus or minus some amount. This outlook includes enhanced disclosures related to trading assets and liabilities, and net interest income excluding the markets business. The markets net interest income is expected to grow to approximately 11 billion due to lower short-term funding costs and balance sheet growth, while net interest income excluding markets is projected to be approximately 48 billion.

A：The projected non-interest expense for 2026 is approximately 55.7 billion. The expense is expected to increase due to investments in technology and other areas, as well as merit and benefit increases and performance-based discretionary compensation. Other factors include a 400 million reduction in expenses from the sale of the railcar leasing business, offset by a 400 million reduction in non-interest income.

A：The organization acknowledges the underlying issue of affordability and the need for a carefully considered response. They express alignment with finding solutions to help as many people as possible without having an adverse impact, but it's too early to determine specific actions due to uncertainty regarding administrative or congressional decisions.

A：The company plans to continue supporting clients across various business segments, focusing on the consumer and auto spaces where they are confident in their risk appetite. On the commercial side, they will be selective in choosing clients and emphasize a conservative approach, without changing their established risk appetite. They expect the markets business to grow throughout the year, driven by lower-risk assets that don't necessarily require much capital, and they anticipate being able to support a broad spectrum of clients while managing capital efficiently.

A：The company manages the trade-off by focusing on the growth of lower NIM assets, such as through financing repo trades with low-risk collateral like Treasury and general collateral. These assets do not attract much capital or regulatory weight. The approach is to support clients across the spectrum of businesses without significantly altering the company's risk appetite, which has not changed and is not expected to change substantially. Growth in loans and nonbank financial assets also varies in their impact on capital requirements.

A：The financing in the markets business is expected to be paid for in other ways, which is tracked by client to ensure that these payoffs are realized. This relationship determines the extent of growth in the financing business, and the assumption has been that revenue will be generated through these alternative means, although there is an acknowledgment that this may be ahead of actual results and needs to play out over time.

A：The company has significant opportunities to extend loans using their balance sheet and to continue buying back stock. They are not constrained in this choice and can manage both effectively given the amount of capital they generate and the opportunities available. They currently sit above their targeted range of capital but have significant regulatory buffers, providing them with flexibility as they evaluate future capital proposals.

A：The company's targeted range of capital is above the regulatory buffers, providing substantial flexibility as they finalize capital proposals. They will continue to evaluate what these proposals mean for their future actions, but having this flexibility is considered positive as it allows them to consider various strategies effectively.

A：The 10,000 to 10,500 range outlook signifies the comfort level within which the company operates, with a preference for operating towards the lower end of this range to maintain a significant buffer. This range is important for understanding the company's financial strategy and its ability to navigate various financial scenarios effectively.

A：The company has been focusing on controlling expenses while growing revenues to improve profitability. They have reduced the expense base significantly while increasing revenues and expect to use efficiency gains to contain any expense growth and to see benefits from these investments in revenue growth. They are also encouraged by the growth in various business segments like credit accounts, auto lending balances, and loans in the commercial space.

A：The company feels no pressure to pursue M&A activities and has a strong franchise and ample organic growth opportunities. They would consider M&A opportunities if they make financial sense and if they add material value for investors. However, they prioritize focusing on driving organic opportunities and ensure that any M&A activity aligns with their strategic goals and does not become a distraction from their core business activities.

A：The company is cautious about providing guidance due to the volatility of interest income, which is highly dependent on the world and the markets. They are long-term believers in the underlying business growth and expect to see growth in numbers but want to avoid making predictions that could limit their flexibility.

A：The movement in commercial non-performers is volatile over a short time period and is not indicative of any systemic issues. Non-performing assets are not a good predictor of loss and are comprised of individual names that may fluctuate, but nothing is systemic.

A：The company doesn't anticipate the trading business to have a negative impact on returns. The returns on the trading business are in line with expectations and will not be dilutive to the overall returns of the segment or the company. The financing provided to clients should build up over time, leading to more meaningful revenues. The company plans to grow its trading business without an outsized impact on returns, and as it grows, it will help with the primary business and improve overall returns.

A：For loan growth and credit quality, the company is focusing on specific geographies with more opportunity for growth. The strategy is not to change the credit opportunity but to strengthen their market share. On the consumer side, the company is looking to be more full spectrum but not in a way that would create additional risk in their lending book. They are focused on achieving a balance between risk and return while continuing to emphasize high credit quality.

A：Forecasting revenue related expenses is challenging due to the uncertainty in the credit environment, interest rate curves, and market levels over the next few years. The company aims to focus on building a business that drives higher revenue growth, reasonable expenses, and ensures investment payoffs. They are concentrating on underlying growth metrics and not making predictions due to the volatility of the mentioned factors.

A：It's difficult to provide a specific timeline for a 17% to 18% ROE because the company doesn't have predictability over credit environments, interest rate curves, and market levels. They focus on building a sustainable business that drives revenue growth and reasonable expenses without making predictions on these volatile factors.

A：Efficiency gains are driven by a combination of initiatives like peeling back costs, automating processes, reducing real estate costs, and decreasing third-party spend. The company expects these efforts to continue and optimize over time. The impact of past investments in efficiency is seen this year with a little bit of contribution to efficiency gains, and it's anticipated that these improvements will continue slightly over a longer period.

A：The decline in loan yields for the fourth quarter was mainly attributed to rates coming down, impacting a large portfolio of variable rate commercial loans.

A：Growth in lower R2 Roa exposures and the continuing decline in rates are expected to affect the margin trajectory in 2023. The growth in lower R2 Roa exposures will have an impact on overall margin, while rates are anticipated to come down again if forward rates materialize.

A：The deposit gathering strategy includes focus on various products across the Avis or base, particularly in wealth management, which is seeing good uptake and is expected to continue to grow. The commercial side is seeing good loan growth, mostly interest-bearing, while the consumer side is driven by better execution across digital marketing and branch channels for checking account growth.

A：The current environment for commercial real estate has seen good demand across various sectors such as multifamily, industrial, and data centers. The fundamentals have not shifted much, and continued demand is expected in subsectors excluding office. In the office sector, there is stabilization in valuations with a bifurcation between newer, high-quality office space in vibrant cities and older inventory. The latter is being worked through, and the outlook for commercial real estate recovery is considered meaningful.

A：For investment advisory and other asset-based fees, performance will be driven by market conditions and asset price appreciation, with the potential for growth supported by stable and growing equity markets. Deposit and card fees will be a function of the macroeconomic environment and consumer activity, which has been consistent. Growth in these areas is expected as long as the macroeconomic conditions remain stable. In trading, the reduction in rates is expected to impact fees negatively, but overall revenues in the markets business should continue to grow due to lower funding costs and higher market volumes.

A：Deposits are expected to grow at a rate that is more aggressive and in sync with GDP growth over the medium term, following the decrease in rates and the pullback of excess liquidity. This growth will not be linear, but there is an expectation for consumer deposit base growth and a resumption of a relationship between deposit growth and GDP. The goal is to grow faster than the market and to increase market share profitably.

A：The pace of opportunities for hiring in coverage is about the same as in the past. These opportunities are part of multiyear plans that include growth strategies in various areas such as geographies and industry coverage within the CIB. The plans aim to achieve payoff over time and there are significant opportunities for growth in both the commercial bank and the corporate investment bank, as well as in the consumer banking system.