Financial Data and Key Metrics Changes - The company reported first quarter net income of $392 million and earnings per share of $1.90, with a return on average common equity of 13% [15] - Earnings per share, excluding notable items, increased by 13% year-over-year, while expenses rose by 4.8% compared to the prior year [18][23] - The company generated its third consecutive quarter of positive operating leverage, driven by mid-single-digit growth in trust fees and net interest income [6][15] Business Line Data and Key Metrics Changes - Trust investment and other servicing fees totaled $1.2 billion, reflecting a 1% sequential decline but a 6% increase year-over-year [17] - Asset Servicing business saw assets under custody and administration increase to $15.8 trillion, a 3% year-over-year increase, with custody and fund administration fees up 4% year-over-year [19] - Wealth Management assets under management reached $447 billion, up 6% year-over-year, with trust investment and other servicing fees increasing by 8% year-over-year [21] Market Data and Key Metrics Changes - The company experienced strong capital markets activity due to elevated volatility levels, which positively impacted performance late in the quarter and into April [7][14] - The company reported a healthy increase in deposit levels as clients adopted a risk-off approach, reallocating portfolios and raising cash [11] Company Strategy and Development Direction - The company is focused on optimizing growth through collaboration between business units and advancing enterprise-wide growth initiatives, particularly in alternative investment solutions and family office services [8][9] - The launch of Family Office Solutions aims to enhance service offerings for ultra-high-net-worth clients, targeting those with over $100 million in net worth [10][44] - The company is also investing in technology to improve operational efficiency and productivity, including the use of machine learning and automation [13][77] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a challenging macroeconomic environment, highlighting the strength of the balance sheet and the ability to meet evolving client needs [14] - The company raised its full-year guidance for net interest income growth from low single digits to low to mid-single digits, reflecting strong deposit levels [26] Other Important Information - The company returned $435 million to shareholders through cash dividends and stock repurchases, reflecting a payout ratio of 116% [26] - The common equity Tier 1 ratio increased to 12.9%, indicating strong capital levels well above regulatory minimums [25] Q&A Session Summary Question: Deposit beta assumptions and guidance - Management indicated that deposit betas remain stable, with institutional business closer to 100% and wealth business around 60-70% [32] Question: Fee outlook and expense flexibility - Management reaffirmed the commitment to keep expense growth below 5%, with identified discretionary and nondiscretionary spending to manage flexibly [36] Question: Capital markets activity - Management noted increased capital markets activity driven by market volatility, particularly in foreign exchange and brokerage services [41] Question: Family Office Solutions and market expansion - Management confirmed the launch of Family Office Solutions, aiming to provide outsourced family office capabilities to ultra-high-net-worth clients [44] Question: Addressable market for Family Office Solutions - Management highlighted a large addressable market for ultra-high-net-worth clients, with hundreds of existing clients fitting this profile [63] Question: Impact of market volatility on new business and client attrition - Management acknowledged that market volatility can influence client decision-making, potentially causing delays in switching custodians or managers [110]