“And then on taxes, we expect our effective tax rate for the full year 2025 to be in the 22% to 23% range.”

In context

“age 17 shows the results of the other segment. Next, on Page 19, our current outlook for 2025. Positive operating leverage continues to be our North Star and so once again, we have set ourselves up to drive positive operating leverage consistent with our medium-term financial targets. Starting with NII, based on current market implied forward interest rates, we expect full-year 2025 NII to be up mid-single-digit percentage points year-over-year. We expect fee revenue to be up year-over-year and we expect approximately 1% to 2% year-over-year growth in expenses, excluding notable items for the full year 2025. Specific to the first quarter, I would like to remind you that staff expenses are typically elevated due to long-term incentive compensation expense for retirement-eligible employees. And then on taxes, we expect our effective tax rate for the full year 2025 to be in the 22% to 23% range. And finally, our philosophy for capital deployment and distributions remains unchanged. We anticipate to continue to pursue growth opportunities and deliver compelling capital returns to our shareholders through dividends and buybacks. Based on what we are seeing today, we expect to return 100% plus or minus 2025 earnings over the course of the year. As always, we will calibrate the pace of our buybacks considering factors such as balance sheet growth opportunities as well as macroeconomic and interest rate environments, which are real considerations in 2025. Our Tier 1 leverage ratio management target remains unchanged at 5.5% to 6% and against the backdrop of continued interest rate volatility, we will continue to manage ourselves to the upper end of that range for the foreseeable futur”