“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.”

In context

“l 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 increase in the 5% to 5.5% range. Continuously strong inflationary headwinds are expected to largely offset the favorable impact of the stronger US dollar. Revenue-related expenses are increasing, as fee waivers abate and we're onboarding our strong sales pipeline. And we continue to invest in the targeted growth and efficiency initiatives that we've highlighted before. Due to the impact of the notable item in the second quarter, we now expect our effective tax rate for the year to be closer to 19.5%. Taken together with our 16.7% tax rate in the first quarter, our expectation for a 19.5% to 20% tax rate in the second half of this year remains unchanged. And last but not least, we cont”