John Woods: Yes, I will start off and Bruce can jump in here. But I mean the drivers – I mean you look at the big three for us, capital markets, card fees and wealth trust and investment services are all, they are trending well, and we expect to be significant contributors in 2024. So, each of those businesses have had significant strategic investment over the years and even more recently. So, it’s really nice to see that the investments made in the capital markets business come to fruition. We had a good strong quarter in the first quarter, number one in the lead tables on the sponsor side, big rebound from the fourth quarter. And early in the second quarter, the activity – the pace of activity has continued, and we feel very good about the trends there, not only for 2Q, but for the full year.
In the card business, we have made a strategic conversion to Mastercard, and that’s driving a number of positive developments there. And in the wealth business, as you know, all of the advisor hires the Clarfeld acquisition from a number of years ago are all coming together along with the private bank to drive those flows throughout 2024. So, we are feeling quite good about the trajectory for fees.
Bruce Van Saun: I would just say, to your point, Ken, also that there were those three strong areas. And then we had a little bit of weakness in some other areas, service charges, mortgage, the global markets, FX and interest rate lines were a little below our expectations. The good news there is there is nothing structural that we worry about. I think we will see bounce backs over the rest of the year, which will add to our overall growth and our confidence that we will maintain strong fee performance for the year.
Ken Usdin: Okay. Great. And just one more follow-up on the NII and the swaps and just looking at your Pages 25 and 26 from the deck. And it’s pretty clear that you are saying the increases you have made to the swap book are all incorporated in the guidance. So, that first quarter to fourth quarter, $35 million cumulative net interest income impact, is that inclusive of everything that is both like active as of now and then will prospectively still come on as the year progresses?
John Woods: Yes, it is. And so what that is, that $35 million is made up of about $50 million, primarily driven from active swaps that are outstanding. So, there is about $20 billion notional of active swaps outstanding. That grows to about $30 billion by 4Q. That’s incorporated into that number. But then it’s offset by the positive benefit from non-core of about, call it, $17 million or so, or $15 million to $20 million coming from non-core and that gets you to the $35 million drag. But really, when you play it out for the rest of the year, again, broadly, net interest margin trends are coming in a little better, incorporating all of our swap activity, what you see on Page 25 is just the receive-fixed swaps. We actually have pay-fixed swaps in the securities portfolio that are offsetting this, as well as of course, everything that’s happening in the core balance sheet.
So, you got to kind of think at the broadest sense that NIM trends are actually coming in a little better. And then as you get out to later years, you start getting all of this tailwind is really baked in. And you start seeing the fact that terminated swaps begin to contribute. It gets to the point where you get out into 2026 and 2027 that a majority of, a super majority, if you will, of the tailwinds are actually baked in and aren’t rate dependent. But you have that right in terms of the 4Q components that incorporates everything on the receive-fixed swaps side plus non-core.
Ken Usdin: Yes. Okay. And I – yes, go ahead Bruce.
Bruce Van Saun: And I would just add color there, Ken, is I think coming into the year, people were concerned about that step-up that we had forward starting swaps in Q2 and then more in Q3. The guide that we are giving and our confidence in the NIM outlook incorporate that. So, we are able to absorb that because higher for longer is better for the core balance sheet. We have some pay-fixed swaps we did in the securities book. So, we are able to absorb kind of that step-up in the swap book and continue to maintain confidence in the NIM outlook for the year.
Ken Usdin: Yes. That’s great, Bruce. And if I can just bring that all together, so you broadly affirmed your broader guidance of down 6 to down 9, and we kind of know the first quarter and have the second quarter outlook. So, what would be the biggest swing factors within that range based on all these points that you are making about the NIM coming in better and now knowing more of this detail about how the swaps will work.
Bruce Van Saun: Yes. To me, it’s really volume would be the key to where we land in that range. So, do we actually see that strong growth in the private bank accelerating that could be strong for deposits and attractive deposit funding, and then the spread that they are making on their loans is also very attractive. So, that’s totally accretive to front book, back book. Do we see the growth in commercial that we expect come in, and I think we – based on our kind of pipelines and our conversations with our customers and also a feeling that the sponsor community. Right now, there has been a lot of pull forward in refinancing, but I think you are going to start to see some more new money deals in the second half of the year. So, I think that those volume factors will have a big impact. But the way we kind of see it looking out the window today, we are highly confident that those things will materialize. I don’t know, John, if you want to add anything.
