“Over the near-term, continuing to reduce the amount of supplemental funding outstanding is a key driver in achieving normalized earnings power and we expect to show continued progress from here.”

In context

“nt, as well as seasonality, these encouraging trends help support our strategy and momentum into the end of the year. The cash trends also positioned us to make incremental progress on reducing the amount of outstanding supplemental funding at the banks. We reduced the balances by $9 billion from the June 30, 2024 level to just under $65 billion at the end of the third quarter. Supplemental funding balances are now down over 30% from peak levels back in May 2023. Further pay down progress remains a priority as cash as well as principal and interest proceeds from the bank securities portfolio continue to be key drivers in paying down borrowings. The exact timing for achieving our pay down goal will also be influenced by some of the same factors that we see in our transactional cash trends. Over the near-term, continuing to reduce the amount of supplemental funding outstanding is a key driver in achieving normalized earnings power and we expect to show continued progress from here. Turning our attention to capital. Lower rates supported our pace of capital build during the quarter, with our adjusted Tier 1 Leverage ratio expanding by over 70 basis points to 6.7%. We are quickly approaching our 6.75% to 7% operating objective. Despite the recent backup in rates to start the fourth quarter, we still expect to finish 2024 above the lower bound of the objective range. As we begin 2025, we will start to pivot from what has been a focus on building our capital ratios, inclusive of AOCI to looking across our capital framework. As always, our number one priority for capital is to support business growth. To the extent we have excess capital beyond our business needs, we have sought throughout our history to return it to stockholders through a variety of means, including our”