“we’d expect this level of temporary borrowing to drop substantially over the next handful of quarters, paving the way for us to resume reinvestment activity in 2025, which, assuming rates follow expectations, will provide a meaningful boost to our net interest margin.”

In context

“, they talk about some of the measures that demonstrate how we’re continuing to win with clients, metrics such as client promoter score, net new assets, new accounts and our organic growth rate, the deal-related attrition that has been lower than our initial expectations and advice flows. And those are clearly the most important predictors of our long-term success, and all portend a bright future. But the more tactical balance sheet metrics have all trended in a positive direction as well. And we believe we are well on our way towards those indicators returning to more normal levels. The level of supplemental borrowing has continued to fall as the ongoing cash flow generated from our investment portfolio has been more than sufficient to support the slowing deposit bank sweep outflows. And we’d expect this level of temporary borrowing to drop substantially over the next handful of quarters, paving the way for us to resume reinvestment activity in 2025, which, assuming rates follow expectations, will provide a meaningful boost to our net interest margin. Speaking of net interest margin, assuming rates followed the dot plot, we still anticipate it building through 2024 and approaching 3% by the end of 2025. Despite rising interest rates, our adjusted Tier 1 leverage ratio at the banks and for the consolidated corporation rose roughly 40 basis points during the quarter, approaching the level to be considered well capitalized several years before that measure is slated to become our regulatory ratio. And we’d expect those ratios to continue to increase due to continued strong capital formation, the accretion of the unrealized marks back to equity and a reduction of our balance sheet as we pay off the remaining supplemental borrowings, bringing back the potential for opportunistic capital return over time. So what does all this mean for the r”