Data center construction is about to surpass office construction for the first time in US history.High rise office buildings in major US cities are selling for pennies on the dollar.Capital transformation from physical to digital real estate is underway. https://t.co/y4IzOWGgf1 ...

Financial Data and Key Metrics Changes - For Q4 2024, net income was $2,900,000,000 with an EPS of $1.34 and a ROTCE of 6.1% on revenues of $19,600,000,000, reflecting a 12% increase in total revenues driven by growth across all businesses [21][20] - Full year net income increased nearly 40% to $12,700,000,000, with revenues up 5% excluding divestitures [6][23] - The tangible book value per share grew by 4%, and the CET1 ratio ended at 13.6%, approximately 150 bps above the regulatory capital requirement [11][28] Business Line Data and Key Metrics Changes - Services revenue increased by 9% to $19,600,000,000, benefiting from fee growth and higher deposit volumes [23][28] - Markets revenue rose by 6% to $19,800,000, primarily driven by equity growth, which had its highest annual revenue in a decade [23][24] - Banking revenues surged by 32% to $6,200,000,000, largely due to a 42% increase in investment banking fees [24][33] - Wealth revenues increased by 7% to $7,500,000,000, driven by a 15% rise in non-interest revenue [24][36] - U.S. Personal Banking revenues grew by 6%, driven by card growth and lower partner payments [38] Market Data and Key Metrics Changes - The U.S. remains central to the macroeconomic picture, with growth driven by both high-end consumers and a strong corporate sector [5][4] - Emerging markets have reemerged as bright spots, benefiting the company due to its global network [6] Company Strategy and Development Direction - The company is focused on executing its strategy with a commitment to returning capital to shareholders, including a $20,000,000,000 share repurchase program [11][47] - A significant simplification of the organization has been undertaken to enhance decision-making and client partnership [12][13] - The company aims to improve its ROTCE to between 10% and 11% by 2026, viewing this as a waypoint rather than a destination [18][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the macroeconomic environment, with expectations for continued revenue growth in 2025 [41][42] - The company anticipates a slight decrease in total expenses for 2025, with a focus on driving efficiencies while investing in transformation and technology [44][45] - Management acknowledged the need for ongoing investments in data and regulatory reporting to meet regulatory expectations [15][54] Other Important Information - The company has exited consumer businesses in nine countries and is on track to complete wind-downs in three others, including Banamex [12] - Investments in technology and transformation totaled $11,800,000,000, focusing on digital innovation and client experience [26][14] Q&A Session Summary Question: Regarding the reduction in the ROTCE target for 2026 - Management clarified that the reduction is linked to higher investments in transformation but emphasized that the strategy is working and they are generating more fee-based revenues [51][52] Question: On the buyback program and its timing - Management expressed confidence in the buyback program, indicating that it reflects the growing earnings power and the need to manage capital effectively [60][88] Question: Expectations for card net charge-offs - Management expects net credit losses to be at the high end of the previously provided range, with seasonal variations anticipated throughout the year [67][68] Question: Clarification on expense guidance and revenue growth - Management confirmed expectations for three consecutive years of lower expenses alongside higher revenues, indicating a focus on operational efficiency [73][74] Question: Competitive positioning in wealth management - Management highlighted the potential for growth in wealth management, emphasizing the global reach and client relationships that can be leveraged for investment opportunities [94][96]