“Number three, we still expect to return 100% of our earnings or more to our shareholders over the full year while continuing to position ourselves conservatively with respect to our capital levels, considering the amount of operating uncertainty.”

In context

“nd balance sheet management year-to-date, but mindful that we are operating in a very uncertain environment with continued rate volatility and higher for longer rate market backdrop and uncertainty surrounding meaningful U.S. treasury issuance in the coming months. Number two, we are ahead of plan when it comes to executing on our efficiency efforts. We remain focused on outperforming our target of 4% expense growth excluding notable items for the full year '23 and will work hard to drive this closer to 3% in the coming months. While we expect the operating environment to continue to weigh on fee growth relative to what we expected at the beginning of the year, our progress on the expense side continues to give us confidence in our ability to deliver positive operating leverage this year. Number three, we still expect to return 100% of our earnings or more to our shareholders over the full year while continuing to position ourselves conservatively with respect to our capital levels, considering the amount of operating uncertainty. In conclusion, I am pleased to report that the company continues to perform well against the backdrop of complex operating environment. And we continue to execute with a great sense of urgency against our growth and efficiency initiatives. With that, operator, can you please open the line for Q&A? Operator: [Operator Instructions] And our first question will come from Brennan Hawken with UBS. Brennan Hawken: Good morning. Thanks for taking my question. Dermot, I'd love to … Dermot McDonogh: Good morning, Brennan. Brennan Hawken: Good morning. Dermot, I would like to start with which you just touched on the unchanged NII outlook. Curious what you're seeing as far as deposit cost pressure, we've begun to see that emerge. There are peer firms of Bank of New York that have flagged some upward”