Financial Data and Key Metrics Changes - The company reported net income available to common shareholders of $1.3 billion, or $1 per diluted share for Q4 2025, and $5 billion, or $3.82 per diluted share for the full year 2025 [5][16] - The results included charges totaling $0.12 per share for the quarter and $0.18 per share for the year related to severance and a legal matter [5][16] - The CET1 capital ratio declined by 20 basis points to 10.8%, while the CET1 ratio including AOCI increased by 10 basis points to 9.5% [17] Business Line Data and Key Metrics Changes - Consumer and small business banking (CSBB) achieved 5% growth in average loans and 1% growth in average deposits, driven by strong performance in consumer lending [8][9] - Wholesale banking saw average loans increase by 3% in 2025, with a notable 8% increase in Q4 compared to Q4 2024, supported by new client acquisitions [10][11] - Investment banking and trading income declined by 6% for the full year but rebounded in the second half, with Q4 revenues up 28% year-over-year [11] Market Data and Key Metrics Changes - The company added 77,000 digital new-to-bank clients in Q4 2025, a 10% increase from the prior year, indicating strong digital engagement [9] - Treasury management fees grew by 13% in 2025, reflecting strong client acquisition and deeper relationships [11] - Average interest-bearing deposit costs declined by 27 basis points to 2.23%, contributing to improved deposit growth [19] Company Strategy and Development Direction - The company plans to open 100 new branches in high-growth markets and enhance over 300 existing locations, focusing on personalized advice and growth opportunities [4] - Strategic priorities include accelerating revenue growth, maintaining expense discipline, and returning capital to shareholders, with a target of achieving a 15% return on tangible common equity by 2027 [7][26] - Investments in technology and talent are aimed at improving client experiences and driving future growth [4][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum heading into 2026, expecting revenue growth to double compared to 2025 [27] - The outlook for 2026 includes a projected 3%-4% average loan growth, primarily driven by commercial loans [18] - Management highlighted the importance of maintaining strong asset quality metrics, with net charge-offs expected to remain stable [23] Other Important Information - The company returned $5.2 billion of capital to shareholders in 2025, reflecting a 37% increase over 2024 [6] - Adjusted non-interest expense increased by 1% in 2025, demonstrating a commitment to expense discipline [22] - The company expects to repurchase approximately $4 billion of shares in 2026, a 60% increase compared to the previous year [27] Q&A Session Summary Question: Can you talk about loan growth and expectations for 2026? - Management noted strong momentum in commercial and industrial loans, with a focus on high client value and optimizing returns, guiding for 3%-4% growth in 2026 [30][31] Question: What is the outlook for net interest margin (NIM)? - Management expects NIM to exceed 3.03% in 2026, with potential expansion in the second half of the year due to lower deposit costs and fixed-rate asset repricing [32][33] Question: Can you elaborate on the 15% ROTCE target for 2027? - Management emphasized a steady improvement approach, focusing on maintaining capital while enhancing returns through growth in payments and middle market expansion [34][36] Question: How does the company view its competitive position in capital markets? - Management expressed confidence in the investment banking business, highlighting strong momentum and a robust pipeline, with expectations for continued double-digit growth [41][42] Question: What are the expectations for deposit growth? - Management indicated strong momentum in deposits, driven by new client acquisitions and improved client relationships, with a focus on both consumer and wholesale deposits [46][49]