George Nguyen

George Nguyen asked for a breakdown of the $11 billion-$13 billion Private Bank-related loans projected for 2026, including specific loan categories and potential risks. He also inquired about the longer-term trend for the Private Bank's loan-to-deposit ratio (LDR).

Answer

Brendan Coughlin, President, detailed balanced loan growth in the Private Bank, with approximately one-third from C&I private equity-based lending, half from residential and real estate (mortgage and granular multifamily CRE), and a smaller portion from other consumer products like HELOC and credit cards. Bruce Van Saun, Chairman and CEO, highlighted the strong credit discipline with no credit losses to date. Regarding the LDR, Mr. Van Saun and Mr. Coughlin explained that the current 25% ROE benefits from a wider LDR. They expect the LDR to remain relatively stable in the 60%-70% range for the next year to six quarters, with a self-funding mechanism for loan growth, but anticipate it tightening to the 80% range over the medium term if rates pull back.