Earnings Results:
- Net income of $3.4 billion, EPS of $1.58, and RoTCE of 7.6% on $21.1 billion revenues
- Revenues up over 3% YoY excluding divestitures, driven by growth in Banking, USPB and Services
- Expenses slightly down QoQ excluding FDIC special assessment
- Generated positive operating leverage in Banking
Guidance & Outlook:
- Expects to deliver 4-5% medium-term revenue CAGR
- Maintains full year 2024 outlook and medium-term guidance
- Expects quarterly expenses to trend down, in line with $53.5-53.8bn guidance ex-FDIC
- Expects card NCLs to peak this year with Retail Services at high end of range, expects 2025 NCLs to be lower
- CET1 ratio of 13.5% provides capacity for buybacks but being balanced with supporting client demand
Themes & Trends:
- Organizational simplification largely complete, driving faster decision-making, accountability and expense savings of $1.5bn
- Continued momentum in Services and Markets rebound
- Strong corporate balance sheets driving demand for credit
- Wealth business focused on rationalizing expenses and driving investment revenues
- Transformation efforts making progress but some areas need intensified efforts
Overall, the tone is cautiously optimistic, highlighting good business momentum and clear strategic execution while acknowledging uncertain macro environment and credit normalization. Management expresses confidence in delivering medium-term targets.