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CEO William Rogers attributed the weakness to market disruption in April that impacted its client-driven trading business, particularly in public finance. He also noted that many M&A deals were deferred from Q2 but are now back in the pipeline, providing optimism for the second half. He emphasized that Truist's client-focused business model can result in different quarterly performance compared to peers with large, standalone trading operations.

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CEO William Rogers explained that current cost savings are a continuation of a 2023 initiative focused on consolidation and simplification, while still funding key investments in digital and talent. CFO Michael Maguire specified that Q1 restructuring charges were for facilities rationalization and severance, and he anticipates only minimal additional charges for the remainder of the year.

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CFO Mike Maguire reiterated a long-term CET1 target in the 10% area, which considers the potential inclusion of AOCI under new rules, and confirmed that liability management will continue opportunistically. An unnamed executive specified the AFS portfolio has a short duration, the HTM portfolio is near 7 years, and the combined net duration is in the mid-4s.

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CEO Bill Rogers clarified that the investments are a continuation of an ongoing strategy, not a catch-up from the merger. He explained the spending is driven by elevated industry-wide expectations for data management, AI, and cybersecurity. He characterized the quarterly spending as potentially "bumpy" but part of a continuous investment plan already factored into forward guidance.

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Chairman & CEO Bruce Van Saun explained that this is a broader, multi-year transformational program, similar to the more complex TOP 6, aimed at redesigning customer service and operations using new technologies like GenAI. He announced that President Brendan Coughlin will lead the effort. Coughlin added that the goal is to simplify the business model and improve both efficiency and customer experience. Regarding costs, Van Saun stated it is too early to specify but that if any large, notable expenditures are required, they would be called out.

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Head of Consumer Banking Brendan Coughlin attributed the service charge growth primarily to healthy fee creation from cash management and business banking, not an increase in punitive overdraft fees, which he described as stable. Regarding credit card fees, Coughlin explained there was a temporary pause on expansion activities ahead of new product launches scheduled for late spring, and he expects growth to resume in the second half of the year.

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Executive Bruce Van Saun stated that 'medium-term' implies achieving the target by 2027, though it's possibly achievable in 2026. He confirmed that positive operating leverage is expected to be even stronger in 2026 than the 1.5% guided for 2025, driven by accelerating benefits from swap and non-core portfolio runoff, which is crucial for hitting the ROTCE target.

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CFO John Woods explained that Q3 NII was impacted by the bank's slight asset sensitivity and higher-than-expected deposit migration, a trend he noted is now reversing. CEO Bruce Van Saun added that slightly softer loan growth also played a role. Regarding operating leverage, Woods stated there is a significant opportunity driven by NIM reflation. Van Saun emphasized that NIM gains have a low associated cost impact. Head of Consumer Banking Brendan Coughlin also noted that the Private Bank's revenue growth is currently contributing directly to positive operating leverage due to its fixed short-term cost base.

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Vice Chair & CFO John Stern described the credit environment as 'stable to improving.' He expects the overall net charge-off ratio to remain at current levels or improve in the coming quarters. Specifically for the credit card portfolio, he projected that the full-year 2025 charge-off rate would be lower than in 2024, signaling a positive outlook.

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CEO Gunjan Kedia explained that while there is an investment in the new card offer, it is managed carefully and should not create a meaningful drag for modeling purposes. CFO John Stern noted that while NII is expected to grow in Q2, the guidance range reflects the volatile market and current macroeconomic uncertainties.

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CFO John Stern attributed the strong commercial products revenue to client derivative activity, loan syndications, and bond underwriting, with new products contributing about 20% of the year's growth. Regarding deposits, he emphasized that average balances are a better indicator than volatile period-end figures and noted that Q1 typically sees seasonal declines in institutional deposits.

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President Gunjan Kedia confirmed the search is active and that they are seeking a talented leader who aligns with the bank's integrated, "interconnected" culture. She stated unequivocally that the company has "deep conviction" in its current payments strategy and the focus is on accelerating execution and digital capabilities, not on a strategic rethink.

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CFO Daryl Bible explained that criticized loans peaked a few years ago and have been declining nicely, with a goal to reach about half of that peak level in the next couple of years. The $20 million provision was related to specific losses in the MTRCC business under a Fannie Mae DUS risk-sharing program, involving four unique, one-off client situations, a rare event for a business that has been profitable since 2003.

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CFO Daryl Bible explained that criticized loans peaked a few years ago and have been steadily declining, with a goal to reach about half of that peak level over the next couple of years. He detailed that the $20 million provision was specific to the MTRCC business and its risk-sharing arrangement with Fannie Mae, stemming from four unique, one-off client situations, and affirmed the long-term strength of the business.

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Daryl Bible (executive) explained the reserve build was precautionary, reflecting a weighting toward a downside scenario with higher unemployment and lower GDP. For the NII guide, he noted it assumes a few rate drops and a lower yield curve, adding that M&T is relatively neutral to short-term rate changes but a flatter curve is a headwind.

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CFO Daryl Bible acknowledged the focus on growing capital markets and investment banking capabilities to better serve customers. He also highlighted growth drivers in CRE through off-balance sheet alternatives, strong performance in mortgage subservicing, and international expansion in the Institutional Client Services (ICS) business, expressing confidence in the overall positive momentum for fee income.

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EVP & CFO Robert Reilly projected continued deposit growth with rates paid potentially drifting up slightly due to mix. Chairman & CEO William Demchak added they are debating being more rate-competitive in new markets. Mr. Reilly specified that DDA accounts grew 2% year-to-date, with a much stronger 6% growth in the Southwest expansion market, illustrating their share gain strategy.

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CEO Bill Demchak explained that PNC is better off with more rate cuts at the front end of the curve, while higher long-term rates benefit the NII trajectory into 2026 and beyond. The recent addition of forward-starting swaps is intended to lock in some of this favorable outlook. He does not believe there is a negative tipping point for rate cuts as long as the yield curve steepens.

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CFO Rob Reilly stated that PNC does not have an explicit capital target, emphasizing its flexibility with a 10.5% CET1 ratio. He confirmed that core expense growth in the 3% range is typical and reflects ongoing investments. CEO Bill Demchak added these are strategic investments in growth, not catch-up spending.

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CFO Rob Reilly reiterated that while PNC doesn't manage to a specific NIM target, he expects it to approach 3% over time. CEO Bill Demchak acknowledged historical underinvestment in the consumer business, stating it represents a significant opportunity. Reilly added that the bank has introduced a new credit card and is investing in people, credit management, and marketing to improve penetration with existing clients.

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CEO Brian Moynihan explained that a significant portion of the year-over-year expense increase was from revenue-related incentives in wealth management and markets. He reiterated the long-term focus on reducing headcount through technology and achieving operating leverage as NII growth accelerates, which should drive the overall expense base toward a more modest growth rate.

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An unnamed executive confirmed that capital generation outpaces the business's needs, leaving room for robust buybacks after funding growth and dividends. CFO Alastair Borthwick explained the "All Other" result was impacted by gains on sold leveraged finance positions and a legal settlement, which offset the usual tax credit-related losses.

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CEO Brian Moynihan responded that no business is currently capital-constrained and that capital allocation is driven by a balanced approach to risk management, not just regulatory minimums. He added that while rule changes might reduce the regulatory 'penalty' on some businesses, the bank's evaluation framework, which includes risk and market-based measures, would not fundamentally change.

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CFO Alastair Borthwick stated there is no change to the capital strategy; the bank has ample capital and will continue buybacks after funding client growth and dividends, pending final Basel rules. Regarding NIM, he emphasized the focus is on growing NII dollar amounts, which is on track, rather than a specific margin target timeline, with organic growth being the key driver.

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CFO Mark Mason indicated that severance costs would see a meaningful reduction in the second half of the year, as the firm has already incurred about $500 million of its $600 million full-year forecast. This, along with associated compensation reduction, will contribute to a downward expense trend. He did not change the guidance for 2026 but affirmed the firm is on a good path for the remainder of 2025.

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CFO Mark Mason clarified that of the approximately $600 million in severance forecast for the full year, about $500 million had already been incurred in the first half, implying a significant drop in H2. He did not change the guidance for next year, reiterating confidence in the current path toward the 2026 targets.

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CFO Mark Mason reaffirmed the full-year expense guidance of slightly lower than $53.4 billion. He projected a slight tick up in Q2 expenses due to planned investments in transformation, data, and regulatory reporting, followed by a downward trend in the second half of the year to meet the full-year target. He also noted that expenses would be adjusted accordingly if revenue performance deviates from expectations.

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CFO Mark Mason did not provide a specific dollar amount but confirmed that technology and transformation investments will increase and are factored into the overall expense guidance, offset by productivity savings. CEO Jane Fraser expressed high confidence that the planned spending is appropriate, stating that a forensic annual planning process determined the need to expand the scope and accelerate work, particularly on the data front, to meet their target states and satisfy all requirements.

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CEO Jane Fraser reiterated the plan to be IPO-ready by the end of 2025, with timing dependent on market conditions, and noted there is no 'hard rule' requiring four quarters of financials post-separation. CFO Mark Mason explained the small provision was related to Russia exposure, taken per accounting guidelines for unremitted client funds.

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The slowdown was attributed to timing issues, with several resolutions slipping from late March into April. Management expects the criticized portfolio to be flattish going forward and does not see significant loss content within it.

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Executive David Turner attributed the growth to an increase in customer accounts and corporate-side seasonality. Executive John Turner added that growth in consumer and small business checking accounts, along with a 9% increase in treasury management relationships, were key drivers. Regarding overdrafts, John Turner noted that revenue growth reflects more accounts, not increased usage per customer, and highlighted customer-friendly policy changes.

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Executive David Turner attributed the sequential decline to several factors. He highlighted an episodic M&A environment in capital markets and a one-time negative adjustment to the card rewards liability in Q4 that is not expected to repeat. He noted that service charges remain predictable and wealth management continues to show strong growth from both markets and new clients.

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CFO David Turner attributed the decline to normal volume and mix shifts, not a systemic issue. CEO John Turner added that future growth is tied to increasing customer checking accounts, highlighting that Regions' customers have ranked first in Visa's debit card utilization 'power score' for 42 consecutive quarters.

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Executive Denis Coleman attributed the strong balance sheet metrics to the firm's 'nimble' management of financial resources. He confirmed the HPI balance is now around $8 billion and reiterated the commitment to sell down the vast majority by the end of 2026.

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CFO Mike Santomassimo affirmed that significant opportunity remains to improve efficiency across the company through automation, real estate reduction, and other initiatives. He noted that this is a methodical, ongoing process involving hundreds of activities. While not providing a multi-year forecast, he pointed to the company's track record of cutting billions in expenses while reinvesting a significant portion back into the business, suggesting a continued focus on balancing efficiency gains with necessary investments.

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CFO Mike Santomassimo stated that the balance sheet is marginally asset-sensitive, so rate cuts are a slight headwind while higher rates would be a slight positive. Regarding trading, he attributed the year-over-year decline to a particularly strong prior-year quarter rather than weakness in the current one. CEO Charlie Scharf added that Wells Fargo's trading business is smaller and less complex than many peers, making direct comparisons difficult.

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CEO Charlie Scharf affirmed the company is taking the formal agreement with the OCC very seriously. He stated that the associated costs are not expected to meaningfully impact the current $54 billion expense outlook, as much of the required work was already underway. He declined to comment on whether it was an industry-wide matter, stating he could only speak for Wells Fargo.

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Executive Jeremy Barnum confirmed seeing headwinds in airline travel but noted it may not be a broader indicator, highlighting some spending front-loading due to tariff concerns. He stated there are no signs of distress in the lower-income segment. Regarding home lending delinquencies, management indicated they would have to investigate, suggesting it could be noise related to the First Republic portfolio.

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CFO Jeremy Barnum reported that there are generally no significant signs of a pickup, with minor exceptions in opportunistic DCM deals and mortgage applications, as the rate cuts were largely anticipated. On consumer spending, he described the current environment as a 'normalization' post-pandemic, with the rotation from discretionary to non-discretionary spending seen as a return to normal patterns rather than a sign of consumer weakness. He characterized overall spending as solid.

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CEO Tim Spence noted client responses to labor shortages vary by sector, with some turning to technology while others face structural issues. CFO Bryan Preston added that larger companies have managed labor pressures better due to scale. Spence concluded the goal for C&I growth is balance, with a slight preference for faster growth in the more granular middle market segment.

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CEO Tim Spence confirmed the geographic shift is entirely organic, driven by de novo branch construction ('one new branch at a time'). He pointed to the growth tailwind from over 100 existing de novos and an accelerated build plan of 40-50 branches annually. CFO Bryan Preston discussed normalized NIM, suggesting that deploying excess cash and continued fixed-rate asset repricing in a more normal curve environment could potentially push NIM back to the 3.15%-3.25% range.

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CFO Bryan Preston reiterated the bank's cautious CRE stance, explaining they participate through structured non-agency CMBS for its credit enhancements. He noted their portfolio has very little exposure to the single-asset, single-borrower (SASB) structures mentioned in a recent article and that the broader portfolio has nearly 40% first-loss credit enhancement and a low LTV, with no current concerns.

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CFO Clark Khayat clarified the NIM guide is '2.7% plus,' with potential to approach 2.8%. CEO Christopher Gorman stated the shift to growth is 'well underway,' emphasizing that they invested in talent throughout the RWA diet and shed non-relationship clients. He affirmed their expectation to outperform the H.8 data on commercial loan growth, consistent with their historical performance.

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CFO Clark H. I. Khayat clarified the NIM guidance is to 'approach 2.8%,' consistent with the '2.7% plus' in the deck. CEO Christopher M. Gorman stated the shift to offense is 'well underway,' highlighting ongoing investments in wealth management, investment banking, and technology, and noted that the prior RWA diet targeted non-relationship clients, positioning them to outperform on commercial loan growth.

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Zach Wasserman, Chief Financial Officer, attributed the revenue upside primarily to Capital Markets, which outperformed even their strong internal expectations. Regarding CRTs, he described them as 'tactical' and 'opportunistic' tools rather than a core part of the capital-building strategy, which remains focused on organic earnings. Future CRT deals are possible but not foundational to the plan.

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CFO Zachary Wasserman described the CRT transactions as tactical and opportunistic tools for balance sheet optimization, supporting the primary goals of increasing the adjusted CET1 ratio and funding loan growth. He highlighted a recent deal as 'exceptionally good,' with a cost of capital under 3% that unlocked 17 basis points of CET1, deeming the economics 'incredibly favorable.'

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CFO Zachary Wasserman stated there were no substantive updates on the proposal. He estimated the potential annualized impact, as currently written, would be around $90 million. However, he noted that such proposals often change and that any implementation would likely not occur until mid-to-late 2025. He also confirmed the potential impact is not included in 2024 guidance and that the bank has opportunities to mitigate it with other payments-related growth.

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