“As we look at the second half of the year, we expect revenue related expenses to be somewhat higher than we expected at the beginning of the year, but we expect expenses in other areas to be lower through our continued focus on efficiency initiatives.”

In context

“al outlook, which benefits NII excluding markets, the rate cuts we had originally assumed were expected later in the year so the change is only a modest impact on this year's net interest income expectations. In terms of markets, NII, as we all know, it is always hard to forecast. Higher short term rates typically result in lower markets NII, but as of now, we still expect market NII to be approximately $2 billion in 2026. So putting this all together, while the drivers have moved around since our original outlook, which is always the case, our current outlook is still $50 billion plus or minus of NII for 2026. Regarding our expense outlook, we still expect 2026 noninterest expense to be approximately $55.7 billion. Expenses in the first half of the year were in line with our expectations As we look at the second half of the year, we expect revenue related expenses to be somewhat higher than we expected at the beginning of the year, but we expect expenses in other areas to be lower through our continued focus on efficiency initiatives. In summary, we had strong second quarter results clearly demonstrate that the strategy we have been implementing to drive growth is working. Revenue growth was broad based with every 1 of our operating segments generating higher net interest income and noninterest income from a year ago. Our continued focus on improving efficiency drove positive operating leverage. The asset cap came off last year, and we had double digit growth in both average loans and deposits from a year ago. Credit quality was strong with improved performance in both our commercial and consumer portfolios. We continue to return significant capital to shareholders while maintaining our strong capital position. As Charlie highlighted, we are seeing strong momentum in key business drivers in every 1 of our businesses. A”