Bill Carcache: Understood. Thank you for taking my questions.
Chris Gorman: Sure, Bill.
Operator: Thank you. And the next question is from Steven Alexopoulos from JPMorgan. Please go ahead.
Steven Alexopoulos: Hi. Good morning, everyone.
Chris Gorman: Hi, Steve.
Steven Alexopoulos: I want to start, so on positive operating leverage, if we look at the third quarter, revenue is down 17% or so year-over-year, expenses flat. Just given the trajectory of revenue through 2023, is there any chance you could deliver positive operating leverage in 2024? And I know you said you plan to hold expenses flat, but do you feel more of a sense of urgency to do more on the expense side? I think the last time you actually delivered positive operating leverage at least of consequence was 2019.
Chris Gorman: So we’ll give — as we mentioned, we’re going to give guidance with respect, Steve, to 2024 when we report our fourth quarter numbers, but we do feel the urgency to continue to do more on expenses. And just to remind you, we took out 200 million of expenses in the first quarter, which is about 4%. And we are actively right now, as I mentioned, simplifying our business. We’re shrinking RWAs. We will come out with more detail in the fourth quarter. But yes, we do feel a sense of urgency to rationalize the cost base, particularly because, as I said, we’re going to be a smaller, simpler company.
Steven Alexopoulos: Okay. Is there any chance you think, Chris, that you do deliver positive operating leverage next year? I know we’ll get more next quarter. But how are you thinking right now?
Chris Gorman: We’ll know more when we finish our planning for 2024, Steve.
Steven Alexopoulos: Okay. And then separately, obviously a lot of investor focus on your capital levels. I’m curious, given what we’ve seen out of the 5-year and 10-year part of the curve so far, how does that change the projected AOCI impact for year end for what you’re calling out on Slide 13 here?
Clark Khayat: Sorry, Steve. It’s Clark. Can you just be a little clearer? How does it change?
Steven Alexopoulos: So in other words, rates are moving up, which is working against your AOCI. You’re saying you used the forward curve. I don’t believe the forward curve in September contemplated the 5 or 10-year where it is. So were you saying you’ll go from negative 6.6 to 6.2? How does that 6.2 change given what we’ve seen in the intermediate part of the curve?
Clark Khayat: Got it. I don’t have that number in front of me. It’s obviously up given where we’re really sort of focused on the five year. So we have taken as we talked about some steps to at least mitigate that. But clearly when rates are moving at this magnitude, you can’t cover all of it. So we continue to watch that closely. We managed TCE I think reasonably well in the quarter given some of those changes that you’ve talked about. But we’re really focused on managing, assuming as Chris said to the contemplated new capital rules and timeframe making sure that we’re in a position to get our capital the right level as things phase in and markets move and we’ll take the steps that we need to take to be compliant with those rules.
Steven Alexopoulos: Okay, fair enough. Thanks for taking my questions.
Clark Khayat: Sure. Thanks, Steve.
Operator: Thank you. And at this time, there are no further questions in queue. And I would like to turn the conference back to CEO, Chris Gorman, for closing remarks. Please go ahead.
Chris Gorman: Again, we thank you for participating in our call today. If you have any follow-up questions, you can direct them to our Investor Relations team at 216-689-4221. That concludes our remarks. Thank you again and have a good afternoon. Goodbye.
Operator: Thank you. Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation and for using AT&T event conferencing. You may now disconnect.
