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CEO Scott Adelson stated that a better market environment does not historically make acquisitions harder to close for the firm. CFO J. Lindsey Alley addressed restructuring, suggesting that its resilience may mean the current revenue level could be the 'new trough,' rather than declining significantly as M&A recovers, unless interest rates returned to zero.

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CEO Scott Adelson stated that while transaction velocity is improving, 'we're not there yet' and that reaching pre-pandemic speed will simply take more 'time.' On Restructuring, CFO J. Alley explained that growing the business is difficult in a robust M&A market. She characterized the current flat performance as 'heroic' and expressed comfort with a 'higher for longer' revenue scenario rather than forecasting incremental growth in the current environment.

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Paul Taubman, Founder, Chairman & CEO, stated that while the firm is making progress in creating holistic relationships with fund managers across primary fundraising, continuation funds, and strategic advisory, they are still in the 'early days' of fully mining this opportunity. Regarding the compensation ratio, he acknowledged that the current guidance of 67.5% already reflects some progress and that the firm aims for more improvement as productivity increases, but will remain thoughtful and cautious.

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Chairman and CEO Paul Taubman stated that a risk-off environment will likely lead to more liability management deals and bankruptcies. He noted that while private credit is a funding source, restructurings are often easiest with existing stakeholders. Regarding tariffs, he believes current uncertainty freezes activity, but once there is clarity, the need to reorient supply chains will be a significant long-term M&A driver.

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Chairman and CEO Paul Taubman described a holistic approach where PJT's strong corporate advisory, restructuring expertise, and Park Hill's fund services create a virtuous cycle of engagement with sponsors. On compensation, Taubman confirmed with a definitive 'yes,' explaining that comp leverage occurs when Strategic Advisory revenue growth meaningfully outpaces its headcount growth, a dynamic he is 'highly confident' will occur in 2025.

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CEO Kenneth Moelis answered 'yes,' stating that the PCA team can be integrated into existing, active client dialogues immediately, making them productive more quickly. Co-President Navid Mahmoodzadegan added that the initial focus on continuation vehicles and secondaries has a faster, M&A-like time to market. Regarding capital, Moelis acknowledged the firm has excess capital and is in discussions with the board about returning it, noting that stock repurchases will likely play a more prominent role than in the past.

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CEO Paul Shoukry confirmed that fee-based flows are stronger than overall flows, highlighting that fee-based assets grew 15% year-over-year compared to 11% for total client assets. He also stated that recruiting success is broad-based across all affiliation options, though the rate of acceleration is currently highest in the independent channel.

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CEO Paul Shoukry confirmed that fee-based flows have been stronger, highlighting that fee-based assets grew 15% year-over-year versus 11% for total client assets. He also described recruiting success as broad-based across all affiliation options, with the acceleration rate being particularly high in the independent channel.

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CEO Paul Shoukry clarified that the primary path to the 10% Tier 1 target is through growth investments, not just buybacks. On NII sensitivity, Shoukry suggested that dynamically, rate cuts could be beneficial by stimulating loan demand, which would be a more significant long-term factor than a static analysis of deposit betas.

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CEO Paul Shoukry clarified that reaching the 10% Tier 1 leverage target would ideally be driven by growth investments like M&A, not just buybacks, which are currently intended to keep the ratio from growing. He also suggested that rate cuts could ultimately be beneficial for NII by stimulating loan demand, offsetting static rate pressure.

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President Paul Shoukry agreed with the assessment, stating the goal is for NII to become a tailwind after the upcoming quarter, which has a headwind from two fewer billable days. CFO Butch Oorlog addressed the repricing question, explaining that about $1.5 billion of the available-for-sale securities book will mature over the next 12 months, with $500 million of that occurring in the next quarter. Shoukry added that as these securities mature and roll into higher-yielding assets like loans, it will turn from a headwind into a tailwind.

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Peter Orszag, CEO & Chairman, and Evan Russo, CEO of Asset Management, addressed the question. Orszag explained that while some outflows are natural, record gross inflows demonstrate product attractiveness, and the positive net flow was achieved despite a large sub-advised outflow. Russo added that new flow success is broad-based across channels, geographies, and products. On AI, Orszag described it as 'transformational,' outlining a four-part strategy: using cutting-edge tools, fostering a cultural shift, digitizing internal knowledge, and deepening human client relationships.

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CEO Peter Orszag expressed high confidence in hitting the net add target, explaining that the Q1-to-Q1 measurement period accounts for the seasonality of departures and promotions. He emphasized that recent hiring has been "massive" in filling strategic gaps in areas like sports, consumer retail, and Germany, and has strengthened connectivity with private capital. Orszag highlighted that the firm is now focused on adding muscle to already strong areas and that the commercial and collegial culture is boosting productivity.

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CEO Peter Orszag expressed high confidence in hitting the net MD growth target by the end of Q1, explaining that the measurement period accounts for the seasonality of departures and promotions, which are concentrated in the first quarter. He described himself as 'massively' positive about the impact of recent hires, stating they have filled critical gaps in areas like sports, consumer retail, and Germany, and created a 'flywheel effect' in serving private capital clients.

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CFO Alastair Borthwick confirmed that the expectation is for NII to grow sequentially from the Q4 exit rate, driven by continued organic growth and fixed-rate asset repricing. He also affirmed that the longer-term NIM target of 2.20% to 2.30% remains unchanged, explaining that recent NIM pressure was due to specific, NII-accretive balance sheet growth in the markets and commercial businesses.

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CFO Alastair Borthwick affirmed the 2.3% NIM target remains the goal over the next couple of years, noting the rate cuts would be a slight headwind in 2026 but that the interest rate curve is volatile. CEO Brian Moynihan added that consumer spending remained solid through early April, running at a 5% growth pace.

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CEO Brian Moynihan attributed the strong checking account growth to superior brand perception, customer service, digital capabilities, and targeted programs in workplaces and new markets. He explained that the 2025 expense growth deceleration relies on more normalized markets-related revenue growth (moderating incentives), the completion of certain remediation projects, and continued headcount discipline.

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CFO Alastair Borthwick confirmed that NII troughed in Q2 as predicted and is expected to grow again in Q4, setting up a good foundation for 2025, but deferred specific 2025 guidance due to rate curve volatility. CEO Brian Moynihan added that major deposit shifts in the consumer and wealth businesses are largely complete, with balances stabilizing, and emphasized the long-term value of the consistent growth in new checking accounts.

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CEO Ronald O'Hanley attributed the strong institutional inflows to both consistent growth in the defined contribution business and a significant new mandate from a client in Asia. Regarding regulation, he stated that while the Tier 1 leverage ratio is the current binding constraint, he does not anticipate immediate changes, though he noted a generally more constructive regulatory environment for reviewing rules.

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Mark Keating, incoming Interim CFO, provided a comprehensive overview of the NII outlook. He detailed headwinds such as the normalization of deposit mix and levels, with noninterest-bearing deposits expected to trend lower, and the impact of the rate environment. He also highlighted tailwinds, including continued strong loan growth and the benefits from investment portfolio rollovers. Keating confirmed the outlook is based on a realistic balance of these factors but noted it was too early to comment on January deposit trends.

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CEO Jane Fraser expressed confidence in exceeding the 10-11% ROTCE 'waypoint' target, citing long-term drivers like continued share growth in Banking, new client wins in Services, and upside in Wealth. CFO Mark Mason added that expense discipline, including lower severance and transformation costs, and efficient capital deployment through buybacks are also key. Regarding the H2 outlook, Mason explained that the guidance incorporates normal seasonality, which typically sees a softer second half, particularly in the Markets business, compared to the very strong first half.

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CEO Jane Fraser outlined long-term revenue growth drivers across all five businesses, including share gains in Banking and innovation in Services. CFO Mark Mason added that higher returns would be driven by expense discipline, including lower severance and transformation costs, and efficient capital deployment through buybacks. Mason explained the second-half revenue forecast reflects normal seasonality, particularly in the Markets business, which is typically softer than the first half.

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CEO Jane Fraser noted that while deal activity continues, most clients are pausing significant plans and bolstering their balance sheets for potential headwinds. She described the current trading environment as orderly. CFO Mark Mason stated he continues to feel good about the NII outlook of 2% to 3% growth (ex-markets), citing momentum in services, loan growth, and effective deposit repricing as key tailwinds.

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CEO Jane Fraser explained that the revised RoTCE target is due to a conscious decision to increase investments in transformation, particularly data, to meet regulatory expectations, calling the 2026 target a 'waypoint, not the final destination.' CFO Mark Mason affirmed that a path to a sub-60% efficiency ratio exists beyond 2026. Regarding buybacks, Mason stated the pace will be managed towards their 13.1% CET1 target, reflecting confidence in earnings momentum while awaiting further regulatory clarity.

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CFO Mark Mason stated that if revenues were to fall short, volume-related expenses would naturally decline and the company would seek additional productivity savings. He explained that DTA utilization is primarily dependent on driving higher net income in the U.S., which is a key focus of the firm's strategy.

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CEO John Weinberg described the restructuring business as very healthy and running ahead of last year, with no limitations on executing liability management deals. On expenses, CFO Tim LaLonde noted that while there is limited short-term flexibility in non-comps, which rose due to occupancy and IT costs, they expect to demonstrate leverage when revenues recover.

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CEO Michael O'Grady explained that the Family Office Solutions initiative aims to enhance service, win new business, and improve scalability, which in turn drives stickiness and profitability. He expressed confidence in the progress of organic growth initiatives but noted they are in early stages and that success in wealth management is earned client-by-client, emphasizing the 'One Northern Trust' strategy.

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Then-CFO Jason Tyler indicated that buybacks could remain elevated for a while, supported by strong capital and proceeds from Visa share monetizations. CEO Mike O'Grady added that while the current 12.6% CET1 ratio is strong, the company is also comfortable operating at lower levels, affirming a positive outlook on capital returns.

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CEO David Solomon cautioned against year-over-year comparisons due to an extraordinary Q1 2024 for FICC, noting the business has shown meaningful growth over five years. He highlighted that different levers can be up or down, pointing to record activity in currencies as a current area of strength.

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