Financial Data and Key Metrics Changes - The company reported a net income of $3.8 billion and earnings per share (EPS) of $1.86, with a return on tangible capital (ROTC) of 8%. Adjusted EPS, excluding goodwill impairment, was $2.24, with an adjusted ROTC of 9.7% [3][14] - Revenues increased by 9% year-over-year, driven by growth across all business lines [3][14] - Total expenses were $14.3 billion, up 9%, largely due to goodwill impairment, while adjusted expenses were $13.6 billion, up 3% [15][16] Business Line Data and Key Metrics Changes - Services revenue grew by 7%, with assets under custody increasing by 13% and cross-border transactions up by 10% [4][22] - Markets revenue increased by 15%, with fixed income up 12% and equities up 24% [24] - Banking revenues surged by 34%, driven by a 17% increase in investment banking fees and a 39% rise in corporate lending revenues [25] - Wealth management revenue rose by 8%, with record net new investment assets of $18.6 billion [26] - US Personal Banking (USPB) revenue increased by 7%, with branded cards revenue up 8% and retail banking revenue up 30% [29] Market Data and Key Metrics Changes - The U.S. economy remains resilient, with consistent consumer spending and tech investments driving growth, while China experiences a slowdown in domestic spending [10][11] - The company noted pockets of valuation frothiness in the market, emphasizing the need for discipline [10] Company Strategy and Development Direction - The company is focused on simplifying operations and investing in technology to enhance agility and modernize banking services [8] - A significant partnership with BlackRock was announced to manage $80 billion of client assets, aligning with an open architecture strategy [4] - The company is committed to embedding AI into operations, with nearly 180,000 employees using proprietary AI tools [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to exceed $84 billion in revenues for the year, with expectations for net interest income (NII) to rise by around 5.5% [36] - The company anticipates continued growth in NII and plans to maintain a disciplined approach to expenses while targeting an ROTC of 10% to 11% next year [60][62] Other Important Information - The company returned over $6 billion in capital to shareholders during the third quarter, with $5 billion in share repurchases [7] - The CET1 capital ratio was reported at 13.2%, exceeding regulatory requirements [19] Q&A Session Summary Question: Update on actions related to the consent order regarding risk compliance and controls - Management reported significant progress, with over two-thirds of programs at or near target state, and emphasized improvements in automation and preventive controls [40][41] Question: Thoughts on the Banamex transaction and IPO timing - Management highlighted the 25% stake purchase as a significant step towards de-consolidation, with regulatory approval expected to take 9 to 12 months [46][49] Question: Pace of stablecoin adoption and its importance - Management noted that tokenized deposits are preferred for client needs, with ongoing investments in digital assets and stablecoin solutions [53][55] Question: Efficiency path for next year and potential for lower expenses - Management indicated a path for lower expenses in 2026, driven by reduced transformation spend and stranded costs, while maintaining strong revenue growth [60][62]