Financial Data and Key Metrics Changes - The company reported revenue of $26.6 billion for the second quarter, a 4% year-over-year increase, and net income of $7.1 billion, with earnings per share growing by 7% to $0.89 [9][28] - Net interest income (NII) reached a record $14.8 billion, growing 7% from the previous year, marking the fourth consecutive quarter of NII growth [9][28] - Return on assets was 83 basis points, and return on tangible common equity was 13.4% [9] Business Line Data and Key Metrics Changes - Consumer Banking generated $10.8 billion in revenue, up 6% year-over-year, with net income growing 15% to $3 billion [51] - Wealth Management reported net income of $1 billion, with strong loan growth and asset under management (AUM) flows contributing to a nearly 7% revenue increase [54][56] - Global Banking generated net income of $1.7 billion, with solid loan growth and investment banking fees, although NII declined year-over-year due to lower rates [58] Market Data and Key Metrics Changes - Average consumer deposits rose by $4 billion from Q1, with significant growth in global banking deposits of $28 billion or 5% from Q1 [35] - The company added over 1,000 net new clients, primarily driven by payments capabilities [19] - Institutional clients showed increased demand for funding, contributing to strong performance in global markets [19] Company Strategy and Development Direction - The company continues to focus on technology innovation, including investments in AI and machine learning to enhance client services and operational efficiency [8][21] - There is a strong emphasis on organic growth across all business lines, with a commitment to deepen client relationships and expand market share [14][19] - The company aims to maintain disciplined deposit pricing while achieving growth in deposits and loans [35] Management's Comments on Operating Environment and Future Outlook - Management noted solid consumer spending and improving credit quality, with expectations of a modestly growing economy [5][6] - The outlook for NII remains positive, with expectations for continued growth in the second half of 2025 [42][44] - Management expressed confidence in the company's ability to manage risks effectively while returning capital to shareholders [26] Other Important Information - The company repurchased $5.3 billion in shares and paid $2 billion in dividends during the second quarter [13][32] - Tangible book value per share increased by 9% year-over-year to $27.71 [32] - The company has a strong capital position, with a CET1 ratio of 11.5%, well above regulatory minimums [33] Q&A Session Summary Question: How does the company measure progress in growing retail deposit share? - The company has grown deposits from approximately $700 billion pre-pandemic to $950 billion, outpacing industry growth [64][65] Question: Can you elaborate on the outlook for expenses in the second half? - The company anticipates flat expenses with potential benefits from seasonally slower activity in Q4 [67][68] Question: What is the strategy regarding cash flow hedges? - The company continues to replace old cash flow hedges with new ones at higher coupons, maintaining its strategy [74] Question: What is the outlook for sustainable expense growth? - The company expects to maintain a couple of percent growth in expenses, with stability in headcount and inflation costs [82][85] Question: Will the efficiency ratio return to pre-pandemic levels? - Management believes the efficiency ratio can improve, potentially reaching low 60s as NII increases [92][93] Question: What is the company's view on the adoption of stablecoins? - The company sees stablecoins as a potential new payment rail and is preparing to respond to their adoption in the market [95][96]