WEBVTT - Bank of America CEO Brian Moynihan Talks Earnings, Economic Activity 0:00:02.400 --> 0:00:07.120 Bloomberg Audio Studios, podcasts, radio news. 0:00:07.040 --> 0:00:10.160 For Bloomberg audience worldwide. I'm David Weston. Joining us now 0:00:10.240 --> 0:00:12.719 is Brian Moonton, and he is the chair and CEO 0:00:12.840 --> 0:00:15.000 of Back of America. So welcome. It's good to have 0:00:15.040 --> 0:00:15.920 you on earnings day. 0:00:15.920 --> 0:00:18.040 Brian, that's great to be here. David, good to see 0:00:18.079 --> 0:00:18.400 you again. 0:00:18.720 --> 0:00:20.959 So let's start with lending, which is so important to 0:00:20.960 --> 0:00:24.400 Back of America, really a leader in commercial lending, and 0:00:24.440 --> 0:00:26.479 that interest income is something we've been talking about an 0:00:26.520 --> 0:00:28.440 awful lot. You had said it would be a trough 0:00:28.480 --> 0:00:31.040 in all likely the second quarter, coming back fourth quarter. 0:00:31.400 --> 0:00:33.400 But I'm curious about when you look at it, what 0:00:33.520 --> 0:00:36.080 are the things driving that right now? Up or down? 0:00:36.240 --> 0:00:39.720 Is it loan demand? Is it the cost of deposits? 0:00:39.920 --> 0:00:41.760 What are the things that are feeding into that right now? 0:00:41.880 --> 0:00:44.800 Yeah, So I think make it straightforward, we have at 0:00:44.840 --> 0:00:47.320 one point nine to one trillion dollars of deposits and 0:00:47.360 --> 0:00:50.240 we have about a billion fifty loans, a trillion fifty loans, 0:00:50.560 --> 0:00:53.479 and so the money we earn on spread and that 0:00:53.600 --> 0:00:57.920 instincome is the difference between what we deposit rates paid, 0:00:58.000 --> 0:01:01.160 loan rates received and then ultimately investing in cash. The 0:01:01.200 --> 0:01:03.840 other eight hundred million dollars you have to invest. So first, 0:01:03.920 --> 0:01:06.240 what's driving demand? I think is actually an interesting thing. 0:01:06.280 --> 0:01:09.800 So if you look across the loan categories, credit card 0:01:09.840 --> 0:01:12.440 growth was decent, home akery growth is kind of bouncing 0:01:12.480 --> 0:01:15.520 along because consumers aren't using their home acry loans yet 0:01:15.560 --> 0:01:19.440 they may. Mortgage lending activity relatively flat. There you go 0:01:19.440 --> 0:01:21.160 on the commercial side. The great news is we grew 0:01:21.200 --> 0:01:23.320 small business and business banking, which is our fifty mini 0:01:23.400 --> 0:01:26.399 Hutter segment. It grew for small business of the twentieth 0:01:26.400 --> 0:01:29.160 consecutive quarter with the number one small business lender. Despite 0:01:29.200 --> 0:01:31.319 what you hear, we are the largest small business lender 0:01:31.319 --> 0:01:34.560 in America and that grew, which means there's activity. But 0:01:34.600 --> 0:01:36.319 when you get in the middle market in the upper end, 0:01:36.319 --> 0:01:38.560 you start to see there's a soft level of softast 0:01:38.640 --> 0:01:41.199 loan demand because of opportunity and cost the beer point 0:01:41.360 --> 0:01:43.720 the cost of borrowings higher and the opportunity what to 0:01:43.720 --> 0:01:45.840 do with the money with economic certainty hire. But you 0:01:45.880 --> 0:01:49.639 put that together, we believe that I would trough this quarter. 0:01:49.840 --> 0:01:51.880 We called that we should have bridged. Where it goes 0:01:51.920 --> 0:01:54.960 from thirteen point nine billion this quarter to fourteen point 0:01:54.960 --> 0:01:57.120 five billion in the fourth quarter, and we showed the 0:01:57.160 --> 0:01:59.120 steps to get there, which I think gave the market 0:01:59.160 --> 0:02:01.520 confidence that part of this requires a little bit of 0:02:01.560 --> 0:02:04.520 growth and loans and deposits continue discipline and pricing, and 0:02:04.560 --> 0:02:07.040 a lot of it comes from mechanical repricing of assets 0:02:07.040 --> 0:02:09.440 that are rolling off their fixed rate and having repriced 0:02:09.919 --> 0:02:11.560 to current rate structures. 0:02:11.760 --> 0:02:14.120 Yeah, and those mechanical things you're reasonably certain of as 0:02:14.120 --> 0:02:15.680 far as much as you can be. But when you 0:02:15.680 --> 0:02:18.400 talk about growing, for example, small and medium sized business loan, 0:02:18.840 --> 0:02:20.880 is that what I would call organic growth. Is that 0:02:21.240 --> 0:02:24.640 more customers or is it current customers actually borrowing more. 0:02:24.880 --> 0:02:28.399 Well, it's both, but it's probably weighted in the small 0:02:28.440 --> 0:02:31.880 business area to more customers. Now in the middle market area, 0:02:32.760 --> 0:02:35.720 it's driven a little bit by line usage the percentage. 0:02:35.280 --> 0:02:37.639 Drawn on the line on average, and that's our average loans. 0:02:37.680 --> 0:02:40.040 And so it's small business we're adding customers, and middle 0:02:40.040 --> 0:02:43.520 market writing customers, and in large corporate really people don't 0:02:43.600 --> 0:02:46.200 use their lines much in the markets being strong for 0:02:46.240 --> 0:02:49.320 fixed income underwriting take the assets away from it. So 0:02:50.320 --> 0:02:53.280 it's across all that. So if you look at small business, 0:02:53.440 --> 0:02:57.400 they are our activity. IU New borrowers is high. We 0:02:57.440 --> 0:03:00.280 have a big practice lending to dentists and doctor and 0:03:00.280 --> 0:03:02.720 that's been growing pretty well. And we have you know, 0:03:02.840 --> 0:03:05.520 just the general small business small business credit card, which 0:03:05.560 --> 0:03:07.480 is to use to do their operational stuff, a business 0:03:07.480 --> 0:03:08.120 credit card. 0:03:07.919 --> 0:03:09.480 And small business you can see that growing. 0:03:09.840 --> 0:03:13.320 But middle market line draws are basically relatively bouncing around 0:03:13.560 --> 0:03:16.600 at a level that is still about five percentage points 0:03:16.639 --> 0:03:19.239 below where it was pre pandemic, which means that is 0:03:19.280 --> 0:03:22.119 cost of barring what. People aren't being quite as aggressive 0:03:22.120 --> 0:03:24.240 and that's why the economy is slowing down. They're not 0:03:24.320 --> 0:03:26.040 hiring quite as many people, they're not buying that piece 0:03:26.080 --> 0:03:26.560 of equipment. 0:03:26.600 --> 0:03:27.560 They're not doing it because they're a. 0:03:27.520 --> 0:03:30.639 Little worried about final demand and therefore to being careful, 0:03:30.960 --> 0:03:33.680 which is unpleasant for your bank. But it's okay because 0:03:33.680 --> 0:03:35.600 the companies don't make them profitable and the credit quality 0:03:35.640 --> 0:03:35.880 is good. 0:03:36.000 --> 0:03:37.880 Yeah, and the fact needs to slow down a bit, 0:03:37.920 --> 0:03:40.320 be given. We're inflash at the same time from where 0:03:40.320 --> 0:03:42.240 you say, because you have such a vantage point into this, 0:03:43.000 --> 0:03:44.920 is that a straight line that's going down? Do you 0:03:44.960 --> 0:03:46.480 see it leveling off or is. 0:03:46.440 --> 0:03:47.720 It it's a flat line. 0:03:47.720 --> 0:03:52.440 So loans grew a first quarter, second quarter a few 0:03:52.480 --> 0:03:54.560 billion dollars on a tree and fifty base, you know, 0:03:54.640 --> 0:03:55.480 so say eight billions. 0:03:55.520 --> 0:03:56.440 So they grew a little bit. 0:03:56.480 --> 0:03:58.960 All the business lines grew loans, but the wealth management 0:03:59.000 --> 0:04:01.880 business grew faster, which is good because you know, wealthy people, 0:04:01.880 --> 0:04:03.720 as their asset base goes up, tend to use it 0:04:03.760 --> 0:04:05.960 to do something a little more faster than a corporate might. 0:04:06.680 --> 0:04:08.720 There's not a lot of leverage finance going on. There's some, 0:04:08.920 --> 0:04:09.240 not a. 0:04:09.160 --> 0:04:11.800 Lot because deals, the higher prices and multiples and getting 0:04:11.800 --> 0:04:12.320 it all straight. 0:04:12.360 --> 0:04:13.760 That'll work itself through the system. 0:04:13.760 --> 0:04:15.600 And you have a lot of people on your show 0:04:15.720 --> 0:04:19.480 who are private equity colleagues that you know they're sitting 0:04:19.520 --> 0:04:21.120 there saying, you know, I've got lots of money. 0:04:21.160 --> 0:04:23.159 I can't find the deals at the right price. That's 0:04:23.200 --> 0:04:23.440 the key. 0:04:23.480 --> 0:04:25.200 At the right price, I can find deals. And so 0:04:25.600 --> 0:04:27.719 that's a little bit muted. But if you look across 0:04:27.720 --> 0:04:31.080 the board, it's it's solid, growing a bit, but growing 0:04:31.120 --> 0:04:33.880 consistent with the lower growth two percent type growth, lower 0:04:33.880 --> 0:04:37.720 inflation economy. It's not growing as fast as it was coming. 0:04:37.960 --> 0:04:39.760 You know, the pandemic shot up, went down and started 0:04:39.760 --> 0:04:42.479 growing faster. Same with the posits went up and drained 0:04:42.520 --> 0:04:45.440 down or stable. The activity is kind of normalizing now 0:04:45.520 --> 0:04:48.039 and that's where I think the risk of the next 0:04:48.080 --> 0:04:50.520 turn in the track is actually getting the timing right 0:04:50.800 --> 0:04:54.760 to bring the rates down to create a little more 0:04:55.240 --> 0:04:57.400 accommodation in the system, are a little less restriction. 0:04:57.640 --> 0:04:59.080 What are you rejecting on the rate cuts? 0:04:59.400 --> 0:05:00.839 Are companies? Projection? 0:05:00.880 --> 0:05:03.120 Our research team which is terrific Canadas Bounding Plant and 0:05:03.160 --> 0:05:07.040 Research team, the best arsearch TUM has really won this year. 0:05:07.400 --> 0:05:09.440 They had just in their last report said we're probably 0:05:09.440 --> 0:05:11.880 going to come off of that. So, like they usually do, 0:05:12.000 --> 0:05:13.039 they I get on TV the. 0:05:13.040 --> 0:05:15.160 Next day they change it. But the markets at three 0:05:15.200 --> 0:05:17.320 were one somewhere and that was where they'll come out, 0:05:17.400 --> 0:05:17.840 is my guess. 0:05:17.880 --> 0:05:19.360 But maybe more important that is where do you think 0:05:19.360 --> 0:05:21.479 we end up? Because that's the question. We could do 0:05:21.520 --> 0:05:23.839 it this year, next year, but where's the long term 0:05:23.839 --> 0:05:24.800 interest it's going to end out? 0:05:24.800 --> 0:05:27.240 So if you think across time here, that's what's important 0:05:27.360 --> 0:05:30.279 is that our teammates think that we end up around 0:05:30.279 --> 0:05:32.839 three and a half and that's where the FED stops. 0:05:33.120 --> 0:05:35.320 That is a wholly different environment than the last fifteen 0:05:35.360 --> 0:05:38.279 twenty years, where you know, basically there was no interest 0:05:38.360 --> 0:05:42.800 rate got up in sixteen, seventeen, seventeen, eighteen nineteen to two. 0:05:42.680 --> 0:05:43.839 And a half, and then it was cut. 0:05:43.920 --> 0:05:46.479 If people forget at the end of nineteen, we never 0:05:46.520 --> 0:05:48.760 got back to quote a normal rate environment that you 0:05:48.760 --> 0:05:50.880 would have seen in our early careers for years, David, 0:05:50.960 --> 0:05:52.680 where the Fed funds was three and a half are 0:05:52.760 --> 0:05:53.480 sometimes even. 0:05:53.320 --> 0:05:55.359 A lot higher. Ten yure rate was four and a half. 0:05:55.400 --> 0:05:58.359 That normalized rate is where our teammates think it gets to. 0:05:58.400 --> 0:06:00.760 And Cannas and our team's saying, look, they bring inflation 0:06:00.880 --> 0:06:04.160 down and then they'll stop. Because the core underligne growth dynamics. 0:06:04.160 --> 0:06:06.720 The amount of money in the system, the fiscal borrowing 0:06:06.720 --> 0:06:09.720 that went on is still being deployed, the IRA, the 0:06:09.720 --> 0:06:12.039 Infrastructure Act, all this stuff going on is going to 0:06:12.080 --> 0:06:13.479 still be coming through the system. 0:06:13.600 --> 0:06:14.480 A lot of it's not spent. 0:06:14.600 --> 0:06:17.600 It's being spent that will create you know, you know, 0:06:18.120 --> 0:06:21.280 demand and things like that. Therefore, there's probably going to 0:06:21.279 --> 0:06:23.320 be a little more inflation pressure, but it would be 0:06:23.360 --> 0:06:24.920 good for America if we ended up in a more 0:06:24.920 --> 0:06:28.200 normal rate structure in a growing economy. You know that 0:06:28.320 --> 0:06:30.960 three and a half didn't become too restrictive. That would 0:06:30.960 --> 0:06:33.839 be good because that's a much sort of healthier place 0:06:33.839 --> 0:06:34.680 for us to be over time. 0:06:34.760 --> 0:06:36.320 At the same time, if we're three and a half 0:06:36.360 --> 0:06:38.159 is where we're ending up, let's assume there for a second. 0:06:38.360 --> 0:06:40.360 That suggests that where the fit is now is maybe 0:06:40.400 --> 0:06:41.919 not as restrictive as some people think it is. 0:06:42.240 --> 0:06:44.200 Yeah, and there's great debate about our star and a 0:06:44.279 --> 0:06:46.720 naturally the long term rate at which the economists can 0:06:46.720 --> 0:06:49.200 go on, But I think they're restricting. When you hear 0:06:49.240 --> 0:06:52.000 from clients, they're saying, hey, it's costing me what used 0:06:52.000 --> 0:06:54.200 to cost me, you know, two hundred basis points over 0:06:54.240 --> 0:06:56.560 fifty basis points or three hundred bas points over fifty 0:06:56.600 --> 0:06:58.400 base points three and a half percent is now three 0:06:58.440 --> 0:07:00.200 hundred basis points over five and a half eight and 0:07:00.240 --> 0:07:02.960 a half percent. You know, they're like, so it has 0:07:02.960 --> 0:07:05.359 a restrictive effect. They've got to slow that down. And 0:07:05.360 --> 0:07:07.080 that's why you're seeing the barring demand come down and 0:07:07.160 --> 0:07:09.960 deployment of that barring. You're seeing consumer movement of money 0:07:09.960 --> 0:07:13.320 in our franchise come more consistent with a lower growth, 0:07:13.320 --> 0:07:15.760 low inflation economy. All that is going on, and that's 0:07:15.800 --> 0:07:18.000 where the next turn in the track is a trickier one. 0:07:18.520 --> 0:07:21.680 They've put inflation right path where you know, what's the 0:07:21.680 --> 0:07:24.000 debate about too far or not far enough? And that's 0:07:24.000 --> 0:07:25.560 going to be what the market's going to eb and 0:07:25.640 --> 0:07:26.480 flow on a give a day. 0:07:26.640 --> 0:07:28.560 So what about the cost of funding for you for 0:07:28.640 --> 0:07:29.840 your deposits because you don't have to. 0:07:29.840 --> 0:07:31.560 Spend some two are three basis points. 0:07:31.680 --> 0:07:35.600 But I read some accounts in some places people are rotating, 0:07:35.600 --> 0:07:37.679 as they say, in the higher yield products, which costs 0:07:37.760 --> 0:07:40.440 presumably Bank of American others more money. Are you seeing 0:07:40.440 --> 0:07:43.200 that rotation? Do you see it tapering off or ending? 0:07:43.520 --> 0:07:46.560 It's so we showed some pages today. It's kind of 0:07:46.800 --> 0:07:48.600 It depends on the business and the use of money. 0:07:48.960 --> 0:07:51.240 If you look at the core consumer business, the rate 0:07:51.280 --> 0:07:54.480 paid really reflects a huge amount of non interest checking 0:07:54.520 --> 0:07:56.960 as a percentage. So it's a mix of it's a 0:07:57.000 --> 0:07:58.560 mix of what the customer users the money for. You 0:07:58.560 --> 0:08:00.560 go to the investment business, we're still seeing a little 0:08:00.600 --> 0:08:01.360 bit of rate increase. 0:08:01.560 --> 0:08:02.440 You go in the. 0:08:04.400 --> 0:08:09.400 Customer the client business, the banking business, global banks, corporate customers. Basically, 0:08:09.520 --> 0:08:10.920 the year of a year, the quarter of a quarter 0:08:11.000 --> 0:08:13.320 change is next to nothing because it basically priced up 0:08:13.320 --> 0:08:15.760 to the difference between it and the Fed funds rate 0:08:15.800 --> 0:08:17.800 and sitting there. So it really is business and how 0:08:17.800 --> 0:08:21.840 the customers in the money. We sort it by transactional money. 0:08:21.600 --> 0:08:22.520 And investment money. 0:08:22.920 --> 0:08:25.760 And then if the customer is in transaction money, that 0:08:25.800 --> 0:08:27.240 money is moving around. They don't see it in the 0:08:27.280 --> 0:08:29.200 investment money. They're making a discrete decision to want to 0:08:29.280 --> 0:08:30.440 leave it with you or to want to put it 0:08:30.640 --> 0:08:33.440 in a money market account. And that's where you saw 0:08:33.480 --> 0:08:35.120 some of the movement happen. And that's what's been going 0:08:35.120 --> 0:08:37.679 on in wealth management business across all our platform to 0:08:37.800 --> 0:08:40.120 positive growing for the last four or five quarters, ever 0:08:40.200 --> 0:08:43.000 so slowly, which means the stability and pricing is there 0:08:43.040 --> 0:08:46.520 because the rate increases link quarters ten to twelve basis points, 0:08:46.559 --> 0:08:47.880 which is really just a little bit of mixture. 0:08:48.280 --> 0:08:50.760 You have a unique perspective on the consumer, us consumer. 0:08:50.800 --> 0:08:52.800 Give us your take right now. On the consumer. I 0:08:52.840 --> 0:08:56.080 see in your numbers, you're taking more provisions than you were, 0:08:56.160 --> 0:08:58.600 you have more charge you offs. Do you see that continuing? 0:08:59.000 --> 0:09:01.000 So if you talk about it from a credit standpoint, 0:09:02.240 --> 0:09:04.280 a credit card charge of right for cards was like 0:09:04.320 --> 0:09:06.480 three point eight eight I think this quarter or something 0:09:06.480 --> 0:09:06.800 like that. 0:09:07.480 --> 0:09:10.000 We underwrite to stay under four and a half in 0:09:10.040 --> 0:09:10.760 normal times. 0:09:11.720 --> 0:09:13.959 So the point is that it's just been coming back 0:09:14.040 --> 0:09:16.679 up to the level that it was in prior periods. 0:09:16.720 --> 0:09:18.240 It's a little bit higher it was in nineteen, but 0:09:18.280 --> 0:09:20.199 those are very I was like a fifty year credit 0:09:20.240 --> 0:09:22.000 low in company's history. 0:09:22.240 --> 0:09:25.079 So it's normalized, but the rate of increase is interesting. 0:09:25.120 --> 0:09:25.520 Year of the year. 0:09:25.520 --> 0:09:27.400 I think it's up eighty basis points or you know, 0:09:27.480 --> 0:09:28.959 and so everybody's like, oh my gosh, but it's just 0:09:29.000 --> 0:09:31.360 getting back. So what we showed today is that we 0:09:31.400 --> 0:09:34.240 showed the early stage of linquency, what they call five 0:09:34.280 --> 0:09:35.640 stage or thirty. 0:09:35.400 --> 0:09:37.240 Day day delinquency and ninety day delinquacy. 0:09:37.240 --> 0:09:39.199 Its basically flattened out, which means the second half of 0:09:39.240 --> 0:09:41.400 the year you'll see the charge offs flat now, which 0:09:41.400 --> 0:09:44.520 means we've reached normal four percent. So from credit, they're 0:09:44.520 --> 0:09:44.960 doing well. 0:09:45.520 --> 0:09:48.480 We haven't mentioned trading. You had quite a report on 0:09:48.480 --> 0:09:51.400 your equity trading. You're really doing terribly well. What do 0:09:51.440 --> 0:09:52.800 you do to keep that going? Are you going to 0:09:52.840 --> 0:09:53.520 invest more in it? 0:09:53.880 --> 0:09:58.200 We continue to invest along three dimensions technology. Jim Tomorrow 0:09:58.200 --> 0:09:59.600 the team run it, and they've done a great job. 0:10:00.000 --> 0:10:02.280 So five seven years ago he made the decision to 0:10:02.280 --> 0:10:06.440 give more more capabilities, technology, the balance sheet that they 0:10:06.440 --> 0:10:09.480 can use to help their customers achieve their goals and talent, 0:10:09.600 --> 0:10:12.520 and so Jimmy across the board continues to increase and so. 0:10:12.559 --> 0:10:13.440 We feel good about it. 0:10:13.679 --> 0:10:17.920 He made a billion four after taxes quarter, which is. 0:10:17.800 --> 0:10:19.280 A very strong learnings quarter. 0:10:19.320 --> 0:10:21.280 But what's happening is you're seeing back to back billion 0:10:21.320 --> 0:10:23.560 dollar plus quarters where used to be a billion dollars 0:10:23.600 --> 0:10:25.719 plus and drop to five hundred when the markets slowed down. 0:10:25.760 --> 0:10:28.160 You're seeing much more stability to break even point in 0:10:28.160 --> 0:10:30.719 the businesses on a relative basis, much lower. The best 0:10:30.760 --> 0:10:33.599 second quarter they've had since I think twenty twelve or 0:10:33.640 --> 0:10:35.360 something like that, which a lot of that was just 0:10:35.400 --> 0:10:37.320 when assets were marked up and came back to the 0:10:37.360 --> 0:10:40.960 system of profit. They've done a great job and Tom 0:10:40.960 --> 0:10:43.880 Montag six seven years ago started this, Jimmy took it over, 0:10:43.920 --> 0:10:45.920 has done a spectacle job of implementing it, and we 0:10:45.920 --> 0:10:49.600 feel confident we'll keep giving them more r WA bersuaded assets, 0:10:49.679 --> 0:10:53.440 balance sheet capital and investment in technology because that's obviously 0:10:53.679 --> 0:10:58.160 very expensive business to run from a day day basis. 0:10:57.880 --> 0:10:59.560 Right, I know, you want to grow all the business 0:10:59.520 --> 0:11:00.920 at back of the America, But do you have a 0:11:00.960 --> 0:11:03.160 strategy about the balance between what I would think was 0:11:03.200 --> 0:11:06.280 a traditional bank lending interest receipts as opposed to the 0:11:06.360 --> 0:11:08.880 fee side, whether it's investment banking or as a manager, 0:11:09.000 --> 0:11:10.840 are you rebalancing the bank? 0:11:11.200 --> 0:11:14.440 Well, this quarter happened to be half the earnings were 0:11:14.440 --> 0:11:17.640 from people, half the earnings for institutions. Out of twenty 0:11:17.640 --> 0:11:21.720 five billion of revenue, fourteen was spread revenue and eleven 0:11:21.880 --> 0:11:26.240 was round numbers. Is feed revenue because the market dictates 0:11:26.240 --> 0:11:26.560 a lot. 0:11:26.480 --> 0:11:27.240 Of feed revenues. 0:11:27.280 --> 0:11:28.440 We could do it, but if you think about it 0:11:28.480 --> 0:11:30.840 from the businesses. In the consumer business, we made a 0:11:30.880 --> 0:11:33.880 decided decision to lower feed burdens on customers and a 0:11:33.920 --> 0:11:36.680 trade off for that was long term customer favorability run 0:11:36.720 --> 0:11:40.680 eight percent across all the platform engagement places, the brand 0:11:41.200 --> 0:11:43.560 favorability into seventy percent, up twenty points over the last 0:11:43.600 --> 0:11:46.720 ten years. So we made a decision lower the fee burden, 0:11:47.160 --> 0:11:49.200 but get it paid back and transaction accounts those are 0:11:49.240 --> 0:11:52.120 these zero interest deposits that's worked wonderfully. 0:11:52.160 --> 0:11:54.160 So we grow a million counts in a year. 0:11:54.440 --> 0:11:56.400 They started two or three thousand dollars, they mature to 0:11:56.440 --> 0:11:57.559 seven to ten thousand dollars. 0:11:58.080 --> 0:11:59.960 It's all you know, zero interest rate money. 0:12:00.160 --> 0:12:02.400 It's very strong and that's if it's a young kids, 0:12:02.520 --> 0:12:04.520 the customer of the future, and that's what we're doing. 0:12:04.840 --> 0:12:07.920 So that balance and fees there and wealth manage it's 0:12:07.960 --> 0:12:10.679 all gonna be about feed driven. It has, but the 0:12:11.120 --> 0:12:14.520 incremental growth seven percent increase in fees your view, that's 0:12:14.520 --> 0:12:16.800 what we're driving there. Jimmy has a mix and the 0:12:16.920 --> 0:12:20.520 trading business and then you know, and then the commercial 0:12:20.559 --> 0:12:23.439 business is actually balanced investment banking fees which everybody talks 0:12:23.440 --> 0:12:25.920 about a billion and six, but the whole revenue business 0:12:26.160 --> 0:12:29.559 dominated by lending and deposits for corporate customers. So you 0:12:29.679 --> 0:12:31.880 have to keep your heads on and there's no we'd 0:12:31.920 --> 0:12:33.400 never say if it's this, we're happy. If it's not, 0:12:33.480 --> 0:12:35.079 we're happy. We want to grow all aspects of it. 0:12:35.800 --> 0:12:38.080 Right, and thank you so very much. That's brought back 0:12:38.120 --> 0:12:39.760 to America's Brian moynihan.