“As client cash allocation activity continues to abate, we still expect to see a return of transactional cash growth later this year.”

In context

“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 rest of this year and 2024? Our outlook for this year is pretty similar to what we shared back in July. As client cash allocation activity continues to abate, we still expect to see a return of transactional cash growth later this year. We should see a stabilization of revenue and then a resumption of growth over time and full year 2023 revenue is expected to decline a bit more than the previously mentioned 7% to 8% range. So ultimately, trading volumes and market levels will influence how things shake out. On the expense side, we still expect our 2023 adjusted expense growth to be somewhere in the 6-ish percent range, inclusive of the $160 million onetime FDIC charge that, of course, was not contemplated when we set out our initial spending plan at the beginning of the year, meaning that our other spending is tracking at least 300 basis points below the range we communicated back in January, as we adjust and optimize our expense base consistent with Rick’s earlier comments. Now turning our attention to 2024. We’ll share”