Performance snapshot (Q3 2024 vs Q2 2024; YoY where available):
- Revenue: $8.843B (+10.3% YoY; +11.4% QoQ). Note: GAAP revenue composition includes net interest income (NII) of $3.414B and fee income of $2.0B; other non-interest income $0.069B; total revenue reflects asset/liability mix adjustments reported by the company.
- Net income: $1.49B (-4.1% YoY; +2.1% QoQ); EPS: $3.49 (diluted) / $3.50 (GAAP basic per share basis shown as $3.50)
- Net interest income (NII): $3.414B, up 3% QoQ; NIM: 2.64% (+4 bps QoQ).
- Fee income: $2.0B, up 10% QoQ; Capital markets and advisory fees up ~36% QoQ, driven by higher M&A activity.
- Operating expenses: $3.327B, -1% QoQ; Non-interest expense is on a disciplined path despite higher incentive compensation tied to activity.
- PP&E and cash management: Tangible book value per share ≈ $97, up 9% QoQ; CET1 ratio ≈ 10.3% (with Basel III endgame estimate around 9.2% including AOCI).
- CREDIT & ASSET QUALITY: Allowance for credit losses ≈ $5.3B (~1.7% of total loans); Non-performing loans up modestly, with CRE office exposure highlighted as a risk that management expects to be disciplined about, including ongoing reserve adequacy (CRE office reserves ~11.3% overall; 16% for multi-tenant portion).
- Balance sheet snapshot: Average loans ≈ $320B; deposits ≈ $422B (avg); AOCI negative ≈ $5.1B, an improvement of ~32% QoQ; cash and equivalents ≈ $41.2B; liquidity position reinforced by Fed balances and strong customer funding.
- Outlook signals: Management reiterated 2025 as a peak NII target year, with expectations of record NII in 2025 and ongoing positive operating leverage; expects Q4 2024 revenue to be broadly flat with NII up about 1% and fee income down ~5–7% due to elevated MSR/capital markets activity in Q3.