“Looking ahead to the second quarter, NII is now a more reasonable exit rate going forward. While the magnitude of rate hikes is not certain, if the forward curve is realized and our model assumptions materialize, we estimate $500 million of incremental NII to be spread over the upcoming two quarters weighted towards the fourth quarter.”

In context

“was driven by existing and new clients in the adviser-led channel, stock plan vesting events, positive net recruiting and self-directed channel inflows. Bank lending balances grew $7 billion in the quarter driven by securities based lending and mortgages. We continue to expect full year loan growth of $22 billion. Deposits declined $12 billion in the quarter to $340 billion. The decline was associated with seasonal tax outflows and the deployment of rate-sensitive cash. The outflows were largely in line with our expectations. The average rate of deposits increased to 28 basis points. This was driven by an increase in savings account rates and deposit mix. Net interest income was $1.7 billion, up notably from the prior year, driven by higher rates and continued strong bank lending growth. Looking ahead to the second quarter, NII is now a more reasonable exit rate going forward. While the magnitude of rate hikes is not certain, if the forward curve is realized and our model assumptions materialize, we estimate $500 million of incremental NII to be spread over the upcoming two quarters weighted towards the fourth quarter. Turning to Investment Management, revenues were $1.4 billion. Against the challenging public market environment, our results demonstrate the benefits of our diversified product mix, particularly with strength in our portfolio solutions led by Parametric customization and private alternative funds as well as our liquidity offering. We have built a portfolio that provides balance across various market environments. The benefits of these efforts were apparent in the quarter. Total AUM was $1.4 trillion. Long-term net outflows of $3.5 billion primarily reflect recurring headwinds in equity strategies that were partially offset by strong demand in alternatives and solutions, particularly in Parametric customized portfolios. Collaboration with our Wealth Management business as well as other U.S”