“Finally, we expect other expenses to increase by approximately $800 million, including expected merit increases in performance-based discretionary compensation.”

In context

“oximately $2.4 billion of gross expense reductions in 2025 due to efficiency initiatives. We've successfully delivered on more than $12 billion of gross expense saves since we started focusing on efficiency initiatives four years ago, and we continue to believe we have opportunities to get more efficient across the Company. Keep in mind, however, the resources needed to address our risk and control work are separate from our efficiency initiatives. There are three primary areas where we expected to invest. First, we expect approximately $900 million of incremental technology expense, including investments in infrastructure and business capabilities. Second, we expect approximately $900 million of incremental other investments, including the specific areas we highlighted on the next slide. Finally, we expect other expenses to increase by approximately $800 million, including expected merit increases in performance-based discretionary compensation. As a reminder, the first quarter has seasonally higher personnel expenses, which are expected to be $650 million to $700 million. Putting this all together, we expect 2025 noninterest expense to be approximately $54.2 billion. On Slide 20, we provide some examples of our areas of focus for the investments, which are critical to better serving our customers and generating growth. Let me highlight a few. Building the right risk and control infrastructure remains our top priority, and we will continue to invest in this important work. We continue to invest in technology and digital platforms to transform how we serve both our consumer and commercial customers. This includes continuing the transition of our applications to the cloud, migrating into new data centers and investing in data platf”