Financial Data and Key Metrics Changes - For Q4 2025, the company reported a core earnings per share (EPS) of $1.43, a core return on assets (ROA) of 1.42%, and a core return on tangible common equity of 18%, all showing significant year-over-year increases [3][4] - The full-year core EPS for 2025 was $5.21, reflecting a 19% increase from the previous year, while Q4 core EPS increased by 29% year-over-year [4] - The net interest margin (NIM) for the quarter was 3.83%, down 8 basis points from the previous quarter but up 3 basis points year-over-year [4][5] Business Line Data and Key Metrics Changes - Core fee revenue increased by 2% linked quarter and 8% year-over-year, driven by strong growth in wealth and trust, capital markets, and home lending [5] - The wealth and trust business grew by 13% year-over-year, with WSFS Institutional Services achieving a 29% growth and BMT of Delaware growing by 24% [5] - Total gross loans grew by 2% linked quarter, or 9% annualized, with commercial loans leading the growth at 4% linked quarter or 15% annualized [6] Market Data and Key Metrics Changes - Total client deposits increased by 2% linked quarter or 10% annualized, with non-interest-bearing deposits growing by 6% linked quarter, now representing 32% of total client deposits [6] - The company reported a significant improvement in asset quality, with non-performing assets down approximately 40% compared to year-end 2024 [7] Company Strategy and Development Direction - The company plans to maintain an elevated level of buybacks while targeting a capital ratio of 12%, with a focus on adjusting buyback pace based on macroeconomic conditions and investment opportunities [10] - The outlook for 2026 includes expectations for mid-single-digit loan growth and continued broad-based deposit growth across all business lines [10][11] - The company aims to leverage its fee businesses, which contribute about a third of total revenue, and expects fee revenue to grow in the mid-single digits [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering high performance and growth in 2026, with expectations for a core ROA of approximately 1.40% and double-digit growth in core EPS [10] - The management noted that while the path of future interest rate cuts remains uncertain, they are prepared to manage margins through deposit repricing and other strategies [11] - The company remains committed to evaluating its business lines for strategic fit and profitability, continuing to shed low-performing partnerships [46][47] Other Important Information - The company returned $119 million of capital in Q4 2025, including $109 million in buybacks, totaling $288 million for the year, representing over 9% of outstanding shares [9] - The company expects net charge-offs to be in the range of 35-45 basis points of average loans for the year, consistent with 2025 results [12] Q&A Session Summary Question: Can you discuss the better commercial trends and what is driving strong originations? - Management noted that improved economic clarity led to strong originations and fundings in the commercial sector, with a pipeline exceeding $300 million [15][18] Question: What are the parameters for capital return and buybacks? - Management indicated that capital return is primarily driven by CET1 and TCE ratios, with a focus on buybacks as the main method of capital return [20][21] Question: What is the anticipated revenue impact from Cash Connect and margin expectations? - Management expects a $2.5 million annual impact per 25 basis point rate cut on Cash Connect revenue, but margin improvements are anticipated through pricing and expense management [26][27] Question: What is the outlook for deposit growth and the mix of deposits? - Management aims for mid-single-digit deposit growth, with a focus on non-interest-bearing deposits and core operating deposits [36][37] Question: Are there any ongoing evaluations of business lines for profitability? - Management confirmed ongoing evaluations of business lines to ensure strategic fit and profitability, with a focus on shedding low-performing partnerships [44][46] Question: What are the expectations for risk-adjusted returns in the loan portfolio? - Management indicated a focus on real estate-secured portfolios for better risk-adjusted returns, emphasizing competitive advantages in home lending [55][56]

Financial Data and Key Metrics Changes - The company's net income increased to $21.3 billion, with diluted earnings per share growing 17% year-over-year [4] - Net interest income rose by $381 million, or 3%, from the previous quarter, driven by higher Markets NII [20] - Non-interest income increased by $419 million, or 5%, from a year ago [25] - The return on tangible common equity (ROTCE) increased to 15% in 2025, up from 8% in Q4 2020 [15] Business Line Data and Key Metrics Changes - Fee-based revenue grew by 5% year-over-year, with notable increases in both consumer and commercial businesses [4] - The credit card business saw a 21% increase in new accounts and a 6% rise in credit card balances [8] - The auto business experienced a 19% growth in loan balances [9] - Home lending revenue declined by 6% due to lower net interest income from reduced loan balances [30] Market Data and Key Metrics Changes - Average deposits increased by $23.9 billion year-over-year, with growth in consumer and commercial deposits [24] - The commercial bank reported strong loan growth, with average loans increasing by 5% from the previous quarter [21] - The company achieved a 14% growth in wealth and investment management revenue, driven by asset-based fees [34] Company Strategy and Development Direction - The removal of the asset cap by the Federal Reserve is seen as a pivotal moment for the company, allowing for balance sheet growth [7] - The company aims to optimize capital levels while managing to a CET1 ratio of approximately 10%-10.5% [7] - The focus remains on organic growth opportunities, with expectations for lower share repurchases in 2026 [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the economy and customers, while closely monitoring portfolios for signs of weakness [6] - The company anticipates net interest income to be approximately $50 billion in 2026, with expectations for loan growth in the mid-single digits [35][38] - Management highlighted the importance of maintaining expense discipline and realizing benefits from investments to drive stronger revenue growth [16] Other Important Information - The company returned $23 billion of excess capital to shareholders, including a 13% increase in common stock dividends and $18 billion in stock repurchases [7] - The company has reduced headcount by over 25% since Q2 2020, achieving positive operating leverage [5] Q&A Session Summary Question: Can you expand on your thoughts on NII, particularly excluding markets? - Management noted that NII is expected to be flat due to rate cuts, but loan growth will improve results later in the year [45][46] Question: How are you addressing the increased volume around credit card rate caps? - Management acknowledged the importance of affordability and is monitoring the situation closely, but it is too early to determine the impact [48][49] Question: How do you balance growth in lower NIM assets with buyback opportunities? - Management indicated that they can pursue both loan growth and stock buybacks, as they have significant capital generation capacity [52][56] Question: What is the company's stance on M&A? - Management feels no pressure to pursue M&A and is focused on organic growth opportunities, but would consider strategic acquisitions if they align with their goals [68][69] Question: What drove the increase in commercial non-performers? - Management clarified that the increase is not systemic and is driven by individual borrower issues, with most non-performing assets still performing [79]

Financial Data and Key Metrics Changes - The company's net income increased to $21.3 billion, with diluted earnings per share growing 17% year-over-year [4] - In Q4, earnings were $5.4 billion, up 6% from the previous year, with diluted earnings per share at $1.62, a 13% increase year-over-year [18] - Net interest income increased by $381 million, or 3%, from Q3, driven by higher Markets NII [20] - Non-interest income rose by $419 million, or 5%, from a year ago [25] - Non-interest expense declined by $174 million from a year ago [26] Business Line Data and Key Metrics Changes - Consumer Banking and Lending revenue increased by 9% year-over-year, driven by lower deposit pricing and higher loan balances [29] - Credit card revenue grew by 7% year-over-year due to higher loan balances and an increase in card fees [29] - Auto revenue increased by 7% year-over-year, with auto originations more than doubling from a year ago [29] - Commercial banking revenue decreased by 3% year-over-year, while Corporate Investment Banking revenue declined by 4% [30][31] - Wealth and Investment Management revenue increased by 10% year-over-year, driven by growth in asset-based fees [32] Market Data and Key Metrics Changes - The company experienced broad-based loan growth, with average loans increasing by $49.4 billion, or 5%, from a year ago [21] - Average deposits increased by $23.9 billion from a year ago, with growth in consumer and commercial deposits [24] - The company grew its share in M&A, increasing its announced U.S. M&A ranking to eighth in 2025, up from twelfth in 2024 [14] Company Strategy and Development Direction - The removal of the asset cap by the Federal Reserve was a pivotal moment for the company, allowing for balance sheet growth [8] - The company aims to achieve a medium-term ROTCE target of 17%-18% [16] - Continued focus on efficiency and expense management, with a goal of optimizing capital levels [7][16] - The company is committed to organic growth opportunities and maintaining a disciplined approach to capital management [7][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the economy and customers, while closely monitoring portfolios for signs of weakness [6] - The company expects net interest income to be approximately $50 billion in 2026, with loan and deposit growth anticipated [33] - Management highlighted the importance of maintaining expense discipline and realizing benefits from investments to drive stronger revenue growth [16] Other Important Information - The company returned $23 billion of excess capital to shareholders, including a 13% increase in common stock dividends and $18 billion in stock repurchases [7] - The company has reduced headcount by over 25% since Q2 2020, achieving positive operating leverage [5] Q&A Session Summary Question: Thoughts on NII, particularly ex-markets - Management noted that NII growth is expected to be flat due to rate cuts, but loan growth will improve results later in the year [42][43] Question: Increased volume around credit card rate caps - Management acknowledged the focus on affordability and the need for careful consideration of responses to potential regulatory changes [46][47] Question: Balancing growth of lower NIM assets with buyback opportunities - Management indicated that they can support both loan growth and stock buybacks, emphasizing the flexibility provided by the removal of the asset cap [50][55] Question: M&A strategy - Management feels no pressure to pursue M&A, focusing instead on organic growth opportunities, but remains open to strategic acquisitions that enhance value [67] Question: Non-performing assets increase - Management clarified that the increase in non-performing assets is not systemic and is driven by individual borrower issues [76][77]

Financial Data and Key Metrics Changes - The company's net income increased to $21.3 billion, with diluted earnings per share growing 17% year-over-year [4] - Fee-based revenue rose 5% from the previous year, driven by broad-based growth in both consumer and commercial businesses [4] - The company's assets grew 11% year-over-year, supported by loan growth and higher trading assets [5] - Net charge-offs declined 16% from a year ago, indicating strong credit performance [5] - The return on tangible common equity (ROTCE) increased to 15%, up from 8% in Q4 2020, with a medium-term target of 17%-18% [14][16] Business Line Data and Key Metrics Changes - The credit card business saw a 21% increase in new accounts and a 6% rise in credit card balances [8] - The auto lending segment returned to growth with a 19% increase in loan balances [9] - Home lending revenue declined 6% due to lower loan balances, while personal lending revenue also decreased [28] - Consumer small and business banking revenue increased 9%, driven by lower deposit pricing and higher loan balances [28] - Commercial banking revenue decreased 3% year-over-year, while corporate investment banking revenue declined 4% [29][30] Market Data and Key Metrics Changes - Average loans grew 5% year-over-year, with significant contributions from commercial and industrial loans [19] - Average deposits increased by $23.9 billion from a year ago, with a 29 basis point reduction in average deposit costs [23] - Non-interest income rose 5% year-over-year, with notable growth in investment advisory fees and brokerage commissions [24] Company Strategy and Development Direction - The removal of the asset cap by the Federal Reserve is seen as a pivotal moment for the company, allowing for balance sheet growth and improved returns [6][7] - The company aims to optimize capital levels while focusing on organic growth opportunities [6] - There is a commitment to maintaining expense discipline and realizing benefits from investments to drive stronger revenue growth [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the economy and customers, while closely monitoring portfolios for signs of weakness [5] - The company expects net interest income to be approximately $50 billion in 2026, with growth driven by loan and deposit increases [33][35] - Management highlighted the importance of efficiency initiatives and investments in technology to support future growth [39][40] Other Important Information - The company returned $23 billion of excess capital to shareholders in 2025, including a 13% increase in the common stock dividend and $18 billion in stock repurchases [6] - The company has reduced headcount by over 25% since Q2 2020, indicating a focus on operational efficiency [5] Q&A Session Summary Question: Thoughts on NII, particularly excluding markets - Management indicated that NII growth is expected to be flat due to rate outlook, but loan growth will improve results later in the year [43][45] Question: Increased volume around credit card rate caps - Management acknowledged the importance of affordability and is monitoring the situation closely, but it is too early to determine the impact on growth [47][48] Question: Balancing growth of lower NIM assets with buyback opportunities - Management stated that they can support both loan growth and stock buybacks, emphasizing the flexibility gained from the removal of the asset cap [51][56] Question: M&A strategy - Management feels no pressure to pursue M&A, focusing instead on organic growth opportunities, but remains open to strategic acquisitions that enhance value [68][69] Question: Impact of markets NII growth on trading fees - Management confirmed that growth in markets NII may partially offset trading fees, but overall revenue in the markets business is expected to increase [72][73]

Core Insights - Wealthfront made its public debut on NASDAQ, focusing on helping younger individuals save and invest for the long term using low-cost, globally diversified passive investment strategies [2][3][4] - The company has achieved over 120% net revenue retention for the past 11 fiscal years, indicating strong client growth and loyalty [5] - Wealthfront manages over $90 billion in assets and is expanding its offerings, including home lending services to enhance the digital experience for clients [10][11][12] Company Overview - Wealthfront targets individuals in their 20s to early 40s, aiming to build long-term wealth through a tech-driven approach that emphasizes low fees and better financial outcomes [4][7] - The company has a hedged business model that allows it to grow in varying interest rate environments, with significant investment growth observed during recent rate cuts [9][10] Market Context - The economic impact of Taylor Swift's Eras Tour is highlighted, with fans spending an average of $1,300, leading to an estimated total economic impact exceeding $10 billion [19] - The tour attracted over 10 million attendees, generating over $2 billion in earnings, showcasing Swift's significant influence on the economy [21][19] Industry Trends - Micron is set to report first-quarter earnings, with expectations of a 47.9% revenue growth to $14 billion, driven by a focus on AI data center memory [39][40] - The memory market is experiencing fluctuations, with potential price increases for consumer electronics due to changes in supply dynamics [42][40] - Oracle's data center developments have caused market jitters, indicating the interconnectedness of major tech companies in the AI sector [44][46]