“Based on current market implied interest rates for the second half of the year, we now expect the percentage growth in net interest revenue for the full year to be in the low 20s compared to the prior year.”

In context

“revenue resulting from higher interest rates and healthy deposit growth was offset by a decline in fee revenue resulting from lower market value. The business has continued to increase the number of clients who use our banking services, which is now at 60%, up significantly from a couple of years ago. And client assets of $264 billion were down 13% year-over-year, primarily driven by lower market values. Page 10 shows the results of the Other segment. I will close with a few comments on our outlook for the second half of the year. As we all know, the intersection of significant market volatility, rapidly evolving monetary policy from central banks around the world, continued geopolitical tension and increasing uncertainty about the macroeconomic environment has made forecasting difficult. Based on current market implied interest rates for the second half of the year, we now expect the percentage growth in net interest revenue for the full year to be in the low 20s compared to the prior year. This improved outlook continues to assume modest deposit runoff in the second half of the year. And it also assumes slightly lower deposit betas than previously expected, which has been informed by our repricing experience to date. Since we last provided you our fee revenue outlook for the year on our first quarter earnings call, both equity and fixed income market values have declined further and the US dollar has continued to strengthen significantly against most major currencies. Assuming equity and fixed income values as well as currencies stay at the level where they ended the second quarter, we would project fee revenue for the full year to be flat to slightly up year-over-year. As it relates to expenses, ex notable items for the year, we continue to manage towards a year-over-year”