Alastair Borthwick: Well, I think Brian said the right things. The strategy hasn’t changed. We’ve got to, number one, support our clients. We’re going to number two, invest in our growth. Then we plan to just sustain and grow our dividend and over time, we’ll balance building capital and buying back shares. I think, the difficult part with Basel III endgame right now is we don’t have the rules. So, we got to wait, I think, until we see those. They’ll go through a comment period. At that point, we’ll offer much more perspective. But I’ll say the obvious, banks have got plenty of capital. We were asked to take 90 basis points more in June. There’s a lot of procyclicality already in things like the stress test and stress capital buffer and in CECL. And I think, look, we’ve shown our ability to perform and build capital, in this case, 75 basis points in two quarters. So, we’ll deal with whatever the ultimate rules come out with.
Operator: Our next question comes from Matt O’Connor with Deutsche Bank.
Matt O’Connor: Good morning. Have you kind of thought about how to better insulate yourself against potentially lower rates and not just kind of a little bit of a decline, but if we get something unusual and rates drop a lot. I know it’s easier for some of the smaller banks to do it, but we have seen some regional banks essentially trying to lock in a corridor of the NIM, so that kind of medium term it’s more about growing the balance sheet versus the rate moves up and down. And clearly, with your deposit rates low, if we do get Fed cuts, there’s just not as much leverage to bring down those rates.
Alastair Borthwick: Yes. So, I don’t know that we’ve thought about it in terms of like a corridor of NIM, but we definitely think about balancing earnings and capital and liquidity through the cycle. So, I don’t see us making significant changes to our core. We’re trying to make sure that we operate and deliver in all rate environments that can be high or two years ago can be zero rate environment. So the changes — you can start to see our changes at the margin. You can see we’re taking securities out and replacing them with loans, and you can see everything restriking higher. So, we’ve got a smaller, more efficient balance sheet. We, at the margin may consider fixing some rates here depending on how things develop over the quarter.
But it’s — we’ve had a pretty, I’d say, good strategy that’s allowed us to drive net interest yields. You can see those on page 16. They’re up 46% over the course of the past year and drive the NII. That’s up $3.3 billion year-over-year. So, we feel like we struck that balance. That’s what responsible growth means to us. And at the margin, we’ll probably still maintain a little bit of asset sensitivity.
Operator: We’ll take our next question from Betsy Graseck with Morgan Stanley.
Betsy Graseck: Two questions. One, just a little more color on the loan growth outlook. I heard you on expecting that loan growth will be slowing as you go through the year. And I just wanted to get an understanding of — is that more just demand slowing base effects or is there also anything in there from you on proactive credit decisioning as normalization comes through the rest of the year?
