“In this scenario, average 4Q NIM is expected to expand well into the 280 basis point range, and full year average interest-earning assets is still expected to decline slightly in 2025 versus 2024.”

In context

“significantly higher than the 4Q '24 levels used for the initial financial scenario discussed back in January. From a trading mix perspective, we expect first half trends to generally persist, though macro factors and client preference will inform the ultimate mix. Assuming these updated factors and keeping in mind the current macro backdrop, we would expect total revenue growth of 18.5% to 19.5% for the full year 2025. The scenario assumes further reduction in high-cost funding at the banks to a level generally consistent with our long-term diversified funding profile. Full year net interest margin of 2.65% to 2.75%, which is up slightly from the January scenario due to the pace of paydowns, year-to-date transactional sweep cash trends and a recent pickup in securities lending activity. In this scenario, average 4Q NIM is expected to expand well into the 280 basis point range, and full year average interest-earning assets is still expected to decline slightly in 2025 versus 2024. Full year 2025 expenses are still trending towards the mid-single-digit zone though we slightly -- with a slightly tighter range of 4.75% to 5.25%. This reflects year-to-date investments across our key priorities aimed at supporting growth across all fronts, as well as the elevated level of client engagement, including transaction and related asset level fees and the mid-May reduction of the SEC 31 fee rate to 0. We continue to feel good about this range of spending for 2025 and how it positions us to achieve our objectives. Of course, market levels and client trading levels during the second half will continue to shape the absolute dollar amount for the year. So putting the pieces together, the combination of strong top line growth and balanced expense management implies pretax margins i”