That pipeline is both investors and issuers, and one of the core strategies that open put in place was to grow share with the US-based asset managers. We had a very low — we were at 2.6% share in 2020. We’re now at 4.3%. And a lot of the growth in the pipeline has been coming not only from our global network names but also from the marquee players in the US asset manager space. And I think that’s our ability to connect our capabilities and that gives these players huge efficiencies for our clients. Mark, anything I’ve missed there? You know I know this business.
Mark Mason: As you said, rightly, so high returning business, great growth prospects. To answer one of your questions, Glenn, about half of the NII growth we could attribute to interest rates and about half, I’d say, is business action, so us working with the clients to drive that momentum. And then if you think about the noninterest revenue for services. They’re up about 20% in the quarter year-over-year, if you exclude the impact of the Argentina devaluation and up 7% on a full year basis. And so good momentum in the noninterest revenue growth as well.
Operator: Our next question comes from John McDonald with Autonomous Research. Your line is now open.
John McDonald: Hi. Good morning. Mark, I was hoping to ask you, how you’re thinking about the pacing of capital build? Obviously, the Basel III proposals are out there, but they could change of course, even if they don’t change, you have a couple of years to leg into those with the phase-ins and perhaps some mitigation opportunities. How should we think about you kind of building capital, given all of those variables and the ability to buy back some stock along the way as you mentioned earlier?
Mark Mason: Yeah, sure. So look, John, obviously the Basel III proposal still out there and under discussion. We’ve been very vocal about the potential impact of that. We’ve also been very disciplined about how we’ve been managing our capital. We’ve built that over 30 basis points over the course of the year. You’ve seen us actively manage that through the year. We’re going to continue to do that. We obviously, generate earnings that contribute to that. We want to continue to drive growth across the business. We’re trading at 0.5 times book, where we can we want to buy back as much as we can in shares and we tried to be disciplined about that over the past couple of quarters doing that as a modest level. You heard me saying — you heard me say, we’re going to do that again this quarter at a modest level.
But we’re going to be — we have to be thoughtful about what those headwinds might look like and we’re actively working what mitigation actions we have to put in place, should it turn out closer to the way the current proposal sit. So it’s an ongoing active management that drives the balance servicing our client needs, with obviously, holding a responsible amount of capital in light of the uncertainty that’s out there, and with an eye towards buy backs where we can do that.
John McDonald: Okay. And just as an expense follow-up, I wasn’t clear. Has the transformation spend peaked when you think about what you’ll spend on transformation this year versus last year? And are the transformation benefits starting to kick in at this point?
Mark Mason: Yeah. So to be clear, we’re going to continue to spend whatever we need to spend on the transformation and on risk and controls. And so we did see a tick up this year. We’ve got a plan for 2024. And if we’ve got to spend a bit more than what we spent this year, we’re going to spend more. That’s what the plan calls for. And so that’s what we’ll do. That’s inside of the number that I’ve given you for guidance, right? And so that is — that’s important for us. I think it will drive, obviously, operational improvement and saves down the line. It is part of the $2 billion to $2.5 billion, but that is the early stage, if you will, of the transformation spend paying back. I think as we talked about at Investor Day, frankly, we’ll continue to see expense benefits beyond the medium term from some of this transformation investment that we’ve been making.
And so I would think of the medium term as the start of the benefits that we’ll see from the investments we’ve been making in transformation and risk and control.
Jane Fraser: Yeah, I think, Mark, you’re spot on. So we’ll continue making the investments we need to in the transformation. It’s a multiyear journey as we’ve always been clear around this, ultimately, with benefits for the shareholders and more of the expense saves that we’ve been talking about are separate our transformation from sort of the operating expense base of our businesses, which we want to make sure is productive and as effective as possible. And the types of benefits we’re seeing, this is second year in a row that we’ve retired 6% of our legacy platform base. And you’ve heard me talking about moving 20 of our cash equity platforms onto one, six reporting ledgers on to one, 11 sanction platforms onto one. So we start seeing some of the benefits of those come in.
Other things, we automated independent price verification for 90% of our prioritized fixed income and equity securities. That’s reduced manual controls. That’s improved valuation consistency. That’s also had an impact on the efficiency of the business. We’ve loaded 98% of our prioritized wholesale and consumer data into two authorized repositories that will also begin to start having some benefits for us. So there is a cumulative effect. It is beginning to build now from all the work we’ve done, but it will take some time to really kick into the, as Mark said, when you really feel it is a few years out, but we’ll keep giving you the proof points of things as we’re going. So it’s not just a trust us, this is coming, you’ll begin to see it build.
Operator: Our next question will come from Jim Mitchell with Seaport Global. Your line is now open.
