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Harith Rajagopalan, Co-Founder, CEO & Director, clarified that GLP-1 use by a few patients in the German study did not affect the interpretation of Revita's efficacy, as the weight loss signal was consistent among all patients. He also confirmed that the company employs rigorous, standardized protocols for scale calibration and weight measurement to control for variability.

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CFO Andrew Young delineated three separate financial items: 1) One-time integration costs (deal costs, tech migration), which are trending higher. 2) Cost synergies from combining the organizations, which remain fully intact. 3) Additional, ongoing investments to power future growth, which are evaluated separately and are distinct from achieving the cost synergies.

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CFO Andrew Young stated that the strategic and financial benefits of the deal remain intact, but declined to re-affirm specific accretion metrics due to changed variables like stock prices. Chairman and CEO Richard Fairbank added that they still expect to achieve the announced synergies and highlighted significant long-term opportunities not included in the original deal model, such as expanding the network's use.

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CEO Richard Fairbank highlighted the company's long-term, technology-driven efficiency improvements but cautioned against short-term extrapolation and did not provide 2025 guidance. CFO Andrew Young addressed the deal metrics, stating that while variables have moved, the company remains comfortable with the estimates provided at the deal announcement and feels very good about the transaction both strategically and financially.

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CFO Andrew Young explained that the company is maintaining high capital levels due to uncertainties around final bank capital rules, the macroeconomy, and, most importantly, the pending Discover acquisition. He confirmed the current $150 million quarterly buyback pace is prudent for now. Regarding loan yield, Mr. Young clarified that the year-over-year card yield is flat when excluding the Walmart partnership's impact, and the quarter-over-quarter increase was primarily due to the full-quarter effect of the Walmart termination and normal seasonality.

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Chairman & CEO Christopher M. Gorman identified renewables, affordable housing, and healthcare as key C&I growth areas, clarifying that guidance assumes a continuation of the current market environment. On M&A, he stated that whole-bank M&A is not a high priority, but the company consistently evaluates non-bank, tuck-in acquisitions that fit its strategic verticals. Chief Risk Officer Mo Ramani added that growth was achieved without expanding risk appetite.

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CFO Clark Khayat explained the guidance includes a ~$3 billion consumer loan runoff offset by 2-4% growth in commercial loans. CEO Christopher Gorman added that while client confidence is high, significant business investment is pending policy clarity. He noted that historically low line utilization and record M&A backlogs are expected to drive future loan growth.

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CFO Clark H. I. Khayat explained that while some factors were positive, lower starting loan balances for the year acted as a headwind, keeping the guidance at 20%. CEO Christopher M. Gorman added that while client optimism is high and M&A pipelines are strong, a significant pickup in business investment and line utilization has not yet materialized, but he remains confident in Key's ability to capture growth when it occurs.

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CFO Ryan Richards reaffirmed a target of 100-200 bps of positive operating leverage, driven by revenue growth and investments in producers. President & COO Scott McLean added that the new, single integrated core system significantly simplifies M&A by creating a modern, clean environment for merging acquired entities. CEO Harris Simmons also noted the new platform's real-time settlement capabilities position Zions well for future innovations like tokenized deposits.

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Chief Credit Officer Derek Steward noted that while C&I loan demand has slowed, CRE is seeing increased activity. Regarding credit, Steward expressed comfort with the reserve levels. Chairman and CEO Harris Simmons added that the past-due metric can be volatile and emphasized focusing on the low nonaccrual numbers for CRE as a better indicator of underlying strength.

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Chief Credit Officer Derek Steward explained it's hard to quantify the exact impact of the grading change, which is now more conservative and places less emphasis on guarantor support. He noted that under CECL, risk rating changes have less immediate impact on the allowance, which was already built up based on economic forecasts. Steward also provided reserve allocations: 2.4% for multifamily and 2.2% for the overall CRE portfolio. Chairman and CEO Harris Simmons added that post-crisis underwriting requires more borrower equity, creating a disconnect between classifying a loan and reserving for it, as the borrower's equity acts as a reserve.

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President, CEO, & Chairman John Turner reported that loan pipelines are up 17% year-over-year, with growth in energy, asset-based lending, and manufacturing. This growth is partly offset by a disciplined runoff of nearly $1 billion in leveraged lending. He acknowledged intense competition in their markets but emphasized that Regions competes through strong execution, brand reputation, and building broad customer relationships, which has resulted in 5% annualized growth in new commercial relationships year-to-date.

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Executive John Turner explained that loan pipelines are mixed, with softness in the upper-middle market as clients access bond markets, while middle-market and real estate pipelines are expanding. He noted that line utilization remains flat as customers hold significant liquidity. Executive David Turner stated that with strong capital generation and low loan demand, the company expects to "lean into" share buybacks.

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Executive John Turner explained that the focus on risk-adjusted returns leads to exiting relationships that fail to generate expected ancillary business. Executive David Turner added that the net 1% growth reflects robust C&I growth offset by softness in commercial real estate. Turner confirmed the expense guide includes higher IT spending for new systems, which is funded by efficiencies in other areas, a point John Turner reiterated.

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CEO John Turner noted that while loan demand is currently soft, he expects modest growth in 2025 as economic and political uncertainty subsides. CFO David Turner added that he is highly confident in the updated expense guidance for 2024 and affirmed that the company is set up to achieve positive operating leverage in 2025.

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CFO Michael Santomassimo attributed the flat loan yields to intense and consistent competition, which is keeping loan spreads tight. He specified that the pressure is most pronounced in the middle-market commercial banking segment and that the primary competitors are other banks.

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CFO Michael Santomassimo explained that loan spreads, particularly on the commercial side, remain very tight due to intense competition. He noted that this competitive pressure has been consistent for a number of quarters and is primarily coming from other banks, especially in the middle-market commercial banking space, rather than non-bank lenders.

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CFO Mike Santomassimo stated that the approach to buybacks remains consistent: supporting clients first, assessing risks, and then considering repurchases, noting the company has capacity. CEO Charlie Scharf added that the company is monitoring line drawdowns very closely but has not seen any significant activity related to economic fears. He also mentioned that while Wells Fargo entered this period with already conservative underwriting, they will be slower to reverse any previous tightening actions.

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CFO Mike Santomassimo projected low to mid-single-digit loan growth for 2025, weighted towards the second half of the year, driven by card, auto, and new commercial clients. On capital, he reiterated that organic growth is the first priority, but given the asset cap, he expects Wells Fargo will continue to return excess capital to shareholders via buybacks, as the current CET1 ratio of 11.1% is considered sufficient.

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CFO Michael Santomassimo clarified the repositioning had minimal Q3 impact but is fully in the Q4 run rate, noting the $16 billion of securities sold were reinvested at a 130 basis point higher yield. For fee income, he highlighted that wealth management is driven by market levels, card fees by economic activity, and investment banking by market conditions and the bank's ongoing investments to gain share.

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CFO Russ Hutchinson clarified that capital is not a limiting factor for growth; the focus is on prudent growth with strong risk-adjusted returns, noting the main driver for revised guidance was lower floor plan balances. He acknowledged increased bank competition but highlighted Ally's record application volume and strong yields, attributing this to differentiated dealer relationships. CEO Michael Rhodes reinforced the commitment to discipline.

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CFO Russ Hutchinson explained the guidance revision reflects the challenging macro environment and optimistic prior assumptions, but noted that the 2023 vintage continues to outperform 2022, giving confidence in the downward trend over time. Regarding capital, Hutchinson highlighted near-term headwinds from CECL phase-in and a potential EV accounting change, stating the focus is on building a buffer for Basel III requirements rather than targeting a specific number today.

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CFO Mike Maguire affirmed confidence in delivering positive operating leverage, citing levers like performance-sensitive incentives. CEO William Rogers attributed the loan growth outlook to strong production momentum with new clients, which is offsetting flat line utilization. He expressed confidence in this trend continuing in both the consumer and commercial segments, driven by strategic initiatives and expansion efforts.

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CEO William Rogers described strong loan production momentum from new and existing clients, with healthy pipelines, particularly in consumer. He clarified the investment banking pipeline is deferred, not lost, due to client caution. He explained the trading business is client-focused with a low VAR, not a proprietary trading desk, so it has less beta to market volatility.

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CEO Bill Rogers and CFO Mike Maguire identified key investment areas as talent, product enhancements, and risk and cybersecurity infrastructure. Rogers affirmed a commitment to positive operating leverage, indicating spending could be adjusted. Regarding buybacks, Rogers stated the company has ample capital to maintain the current pace while also funding loan growth, viewing it as sustainable for the short to medium term.

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Head of Commercial Banking Don McCree acknowledged the competitive environment but emphasized that CFG's focus on multi-product relationships is a key differentiator. President Brendan Coughlin added that competition is intense but stable, and the bank will remain return-focused rather than chasing price. On M&A, Chairman & CEO Bruce Van Saun stated that the bank's primary focus remains on executing its organic growth strategy, particularly in the private bank and NYC Metro market. He described the bar for any potential deal as "pretty high" and viewed M&A as a "down the road" possibility rather than an imminent one.

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CFO John Woods noted increased commercial line utilization driven by M&A and working capital, with some tariff impact. Head of Commercial Banking Don McCree added that a reversal of bond market disintermediation could be a tailwind. Head of Consumer Banking Brendan Coughlin highlighted strong growth in secured consumer loans. Regarding capital, both Woods and CEO Bruce Van Saun affirmed their commitment to the CET1 target range and stated they would opportunistically increase share repurchases if loan growth slows, citing the stock's attractive valuation and the bank's strong capital and reserve position.

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CEO Bruce Van Saun clarified the Q4 loan growth outlook is modest but reflects building momentum in the Private Bank and commercial sponsor finance as rates decline. Head of Commercial Banking Don McCree cited strong subscription line growth, while Head of Consumer Banking Brendan Coughlin pointed to slowing non-core runoff and HELOC growth. On credit, Van Saun's confidence in peaking NPAs stems from four quarters of stable criticized and classified loans. McCree added the credit book is performing as expected. Coughlin explained the auto delinquency figures reflect a reversion to the mean and a denominator effect from halting originations, not underlying portfolio stress.

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Vice Chair & CFO John Stern indicated that loan growth opportunities, particularly in C&I and card, look better now than at the start of the year. He confirmed the revenue guidance adjustment was due to a slower-than-expected start for Net Interest Income, but expressed strong confidence in the fee outlook. He stated the bank is comfortable with achieving mid-single-digit fee growth, citing momentum in payments, trust, and other fee-based businesses.

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CFO John Stern clarified the mid-single-digit growth target is for total fees, noting that credit card revenue grew 4% ex-items in Q1. He and CEO Gunjan Kedia explained that expense levers include adjusting the pace of savings from programs in real estate and automation, with the main 'flex' being the amount of savings reinvested into the business.

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CFO John Stern projected that NIM would directionally follow NII higher, with potential to move toward the 3% level over time, influenced by loan growth, deposit management, and the yield curve. CEO Andy Cecere stated that the bank's view on M&A is unchanged; it is not a current priority due to factors like purchase accounting, regulatory hurdles, and valuations. President Gunjan Kedia added that the focus is on driving strong organic growth in areas like trust and capital markets.

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CFO John Stern detailed a $10 billion notional securities transaction resulting in a $119 million loss, with a roughly two-year payback, and stated no further repositioning is in the guidance. Chairman and CEO Andy Cecere added that after ~30 bps of operating leverage in Q3, he expects it to be "north of 1%" in Q4 and to expand further into 2025.

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CFO Daryl Bible indicated the bank would likely operate around an 11% CET1 ratio and could go to 10.75% if the economy improves, continuing buybacks when sensible. On M&A, he reiterated that deals will happen when the right partner is found, with no change in outlook. For C&I, he noted robust pipelines but low line utilization and strong paydowns have been a drag, though he expects this to moderate.

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CFO Daryl Bible stated that the buyback pace will depend on the economic outlook, with the bank comfortable operating at an 11% CET1 ratio but potentially moving toward 10.75%. He noted that 5.7% of shares were repurchased in the first half of the year. Regarding C&I loans, he explained that while pipelines are robust, growth has been muted by low line utilization and strong paydown activity, though he expects this to moderate.

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Daryl Bible (executive) projected the CRE portfolio would bottom out by Q4, with C&I and consumer books showing momentum. He confirmed no evidence of precautionary line drawdowns, with utilization down slightly. End-of-period deposit growth was attributed to normal seasonality and activity in escrow and ICS accounts.

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CFO Daryl Bible indicated that while the commercial portfolio's improving health could reduce allowances, this might be offset by a mix shift toward consumer assets which require a higher allowance. Regarding M&A, he stated the bank is focused on its internal priorities, believing successful execution will create demand for M&T to expand, positioning it as a scaled, community-focused alternative to competitors.

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CFO Daryl Bible expressed confidence in achieving positive operating leverage in 2025, suggesting a range of 150-200 basis points is in the neighborhood of their plan. Regarding the reserve ratio, he noted that while credit quality is improving, a mix shift towards higher-yielding but higher-charge-off consumer loans could keep the overall charge-off rate from declining significantly, as the bank becomes more diversified.

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EVP & CFO Robert Reilly clarified the fee income guidance adjustment from up 5% to 4-5% was minor and reflected 'heightened uncertainty' that emerged after January, with slight softness in areas like mortgages and private equity valuations. On loan pricing, Mr. Reilly stated that competition remains rational and spreads are consistent, with no significant contraction impacting yields.

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CFO Rob Reilly stated that the C&I loan growth was broad-based and driven by higher utilization, in line with expectations, and not primarily a defensive or tariff-driven move. CEO Bill Demchak added that inventory build is inherent in working capital financing. Regarding capital markets, Reilly noted the M&A advisory pipeline (Harris Williams) is up nearly 20% year-over-year, signaling future strength despite some near-term softness in other areas.

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CFO Rob Reilly detailed the fee income forecast, expecting mid-to-high single-digit growth in capital markets and card & treasury management, with mortgage being a headwind. Regarding capital, Reilly stated the recent buyback pace of $100-$200 million per quarter is sustainable and expected to continue.

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CFO Rob Reilly acknowledged that loan growth has been slower than expected due to low utilization and uncertainty. However, he pointed to growing loan commitments as a constructive sign for future demand. Regarding capital markets, Reilly stated that the fee income guidance for Q4 anticipates a 5-7% decline, largely because some activity was likely pulled into Q3. He emphasized that momentum remains strong, with capital markets revenue up significantly year-over-year.

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CFO Jenny Osterhout clarified that the 15-17% card loss target is a longer-term goal for the mature portfolio, not a 2025 guide, and noted that current delinquency trends are positive. CEO Douglas Shulman stated that while they are comfortable with their organic plan, they are always 'opportunistically looking' at M&A but will remain 'discerning buyers,' only pursuing deals that are a strong strategic, cultural, and financial fit.

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EVP and CFO Perry Beberman stated that capital priorities are unchanged, focusing on responsible growth, technology investment, and maintaining strong capital ratios before returning capital to shareholders. He noted that future buybacks will be discussed with the board, balancing all priorities. Regarding NIM, he reaffirmed the outlook for slight full-year expansion, citing tailwinds from pricing changes that are expected to offset headwinds from anticipated prime rate cuts and lower late fees.

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EVP & CFO Perry Beberman attributed the yield decline to a 'double whammy' effect: rapid repricing of variable-rate loans due to prime rate cuts, and lower billed late fees from improved delinquency, while high gross losses still caused reversals of interest. He confirmed the loan growth outlook is conservative due to economic uncertainty and that the co-brand shift is a deliberate diversification strategy, partly driven by charge-offs of higher-risk private label accounts.

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EVP and CFO Perry Beberman clarified he was not providing specific guidance but reminding analysts that a seasonal loss rate increase from Q4 to Q1 is normal. He estimated 4-5% of customers were in the impacted FEMA zones. He confirmed the mitigation impact was not material to full-year 2024 results but will begin to build and have a slightly positive effect in Q4, helping to offset some seasonal NIM pressure.

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CFO Brian Wenzel declined to provide a hypothetical stressed charge-off number for a future recession but noted that due to lags, a recession starting now would likely have a more significant charge-off impact in 2026 than 2025. CEO Brian Doubles confirmed they are evaluating methodically widening the credit box, likely starting with existing customers, but any action would be managed to stay within their long-term 5.5%-6% net charge-off target range.

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EVP and CFO Brian Wenzel explained that maintaining higher liquidity is a positive EPS trade and a strategic move to attract deposit customers now rather than re-accelerating acquisition efforts later. He sees the long-term liquidity level around 15-17%. Regarding the late fee rule, Wenzel stated it is hard to speculate on political outcomes, noting the legal process has many uncertainties and the appeal window remains open, so the company is monitoring it closely without making predictions.

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CFO James Herzog reiterated the 2-3% expense growth target, noting flexibility to calibrate spending to revenue while protecting key investments. CEO Curtis Farmer stated the bank remains focused on its independence and organic growth, viewing the M&A environment as 'murky' and not anticipating significant industry consolidation in the next 12-18 months.

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Chief Financial Officer Jim Herzog addressed the efficiency ratio, stating the long-term goal is the 50s range, driven by achieving consistent positive operating leverage through revenue growth and expense discipline. Chief Banking Officer Peter Sefzik confirmed they foresee no material changes to the Direct Express deposit outlook for 2025 and into 2026 based on the current transition plan.

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Chief Financial Officer Jim Herzog expressed a bullish outlook for NII in 2025, viewing Q2 2024 as an inflection point and anticipating a continuous upward trend supported by future loan growth. Regarding capital, Herzog acknowledged the strong CET1 level but stated the bank will remain measured with buybacks, prioritizing capital for customer loan growth and aiming to maintain a CET1 ratio 'well above 11%' in anticipation of Basel III endgame rules.

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The deposit cost success was attributed to strong execution of their existing down-beta strategy, not new programs. New loan growth is driven by the expertise of newly hired bankers and relationships, not aggressive pricing, with new loan yields being consistent with the overall portfolio.

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CEO Tim Spence stated that while industry consolidation is likely, Fifth Third will not pursue scale at any cost, given its strong organic growth capabilities, but remains interested in nonbank deals in commercial payments. Regarding returns, he said the focus is on sustaining current strong levels (mid-to-high teens ROTCE, mid-50s efficiency) and growing tangible book value per share.

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CFO Zachary Wasserman indicated that new loan yields are consistent with existing spreads, supporting a stable NIM, and highlighted the ongoing benefit from fixed asset repricing. Regarding capital, Wasserman reiterated that funding high-return loan growth is the top priority. He expects the adjusted CET1 ratio to enter the 9-10% target range in the first half of 2025, leaving little capacity for near-term share repurchases.

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CFO Zachary Wasserman confirmed that incrementally higher funding costs are largely offsetting stronger loan growth, keeping the NII guidance range intact while still projecting sequential dollar growth from Q1. CEO Stephen Steinour highlighted that the commercial loan pipeline is at its highest level in five quarters and that new market expansions in the Carolinas and Texas are bolstering activity, providing confidence in achieving the higher end of the loan growth guidance.

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Chief Banking Officer Mike Selfridge stated that the mix of loan growth would be consistent with prior years and that the majority of refinances are new households to the bank. President of Private Wealth Management Bob Thornton projected Q1 investment management fees to be around $150 million, expecting a strong year for overall wealth fees. CEO and President Michael Roffler guided to double-digit growth for total noninterest income. On credit, Selfridge noted the median LTV on CRE originations has been about 46% and reaffirmed the bank's consistently conservative underwriting standards.

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CEO Mike Roffler expressed confidence in achieving mid-teens loan growth in 2023, citing the strength of the client service model and high satisfaction rates driving repeat business and referrals. President of Private Wealth Management Bob Thornton projected Q3 investment management fees around $148-$150 million and highlighted that strong growth in other wealth management services, up 40% in the first half, helps to offset market-driven headwinds on asset-based fees.

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