“Yes, we think that the capital generation, the accretion that we'll see the is core earnings capability. So it does not rely on those RWAs.”

In context

“rter ties back to some of the seasonal flows, which are part of our trust business, but also the deposits that we knew were going to go out the door to MUFG because of closing down the PurePoint, et cetera. All of those things kind of tie in to the reason why we saw the decline this quarter. Mike Mayo: All right. Thank you. Operator: Next, we go to John McDonald with Autonomous Research. Please go ahead. Andy Cecere: Hey, John. John McDonald: Yes, hi. Good morning, guys. Wanted to ask on the idea of getting above 9% by the end of the year on CET1. Does that rely on the RWA mitigation opportunities, or is that just kind of the 20 to 25 basis points that Terry mentioned before the RWA benefit? Is that something that will help you next year? Can you talk a little bit about that? Terry Dolan: Yes, we think that the capital generation, the accretion that we'll see the is core earnings capability. So it does not rely on those RWAs. So the RWA optimization that we will go through will be above and beyond that. That's a part of that overall capital strategy that Andy talked about earlier. John McDonald: The benefits of that should happen and help you towards the end of this year, maybe into next year as you work towards end of 2024 capital target? Terry Dolan: Yes, it will help us both this year as well as into next year. Absolutely. As you know, John, we've been kind of preparing for Cat 2 for well over a year. We put a lot of things in place in the third and fourth quarter. We took some actions in the fourth quarter and we'll utilize a lot of those tools, if you will, as part of the RWA optimization process that we're going to go through. John McDonald: Yes. And just to clarify, Terry, this hasn't happened prior to”