Dermot McDonogh: So the way I kind of think about that and the message that I would like to give you is, it gives a message of discipline, in that we’ve halved the growth rate, we’re going towards 3% and within that 3% growth we’ve had the financial discipline to be able to self-fund a $0.5 billion of investments that we are confident that will deliver further efficiency in years ahead and revenue opportunities. So it’s both kind of powering the top line and automating and driving further efficiency. And we look to continue to do that into the budget season this year and next year. And like this year, we doubled the efficiency saves that we have typically achieved in past years. And that’s both bottoms up. I think we both mentioned it in our prepared remarks, the catalyst project that we were roughly 40% the way through and we’re doing real work day in day out that is driving that expense growth down and is kind of delivering opportunities for us that we will harvest in the quarters to come.
Robin Vince: Ebrahim, I’d add just a couple of things to that. One, we’ve been very deliberate about not cutting our way to glory, but rather working the problem at a pretty fundamental level so that we can both manage our expenses for the necessary operating leverage, which we want to achieve, but also sowing the seeds for future efficiencies and future fee growth. And so, that’s really the way in which we’re thinking about it.
Ebrahim Poonawala: Got it. Thank you both.
Operator: Our next question comes from the line of Ken Usdin with Jefferies. Please Go ahead.
Kenneth Usdin: Hey, thanks. Good morning. Just one more follow-up. So, yes, it’s great to see the 20% for the year reiterated, and obviously, as discussed, that implies a lower fourth quarter exit. But I want to more importantly understand the moving parts from there, and at what point can you see that stability going forward in terms of some of the things on the front book side helping versus where deposit costs could continue to go up? Just trying to understand if we’re at a stable DDAs, can you see a path early next year to get that NII point stable? And just let me start there.
Dermot McDonogh: So I don’t really want to give guidance for next year today, Ken. We will do that in January. I got a lot of questions about that at Barclays as well. So I kind of feel good about the 20%. I feel good about the deposit pipeline that we have. We’ve talked on previous earning calls about our strategic pivot a couple of years ago where we centralized all our deposit businesses in one area. And so I feel very good about how we’re managing the deposits, how we’re pricing the deposits. You know, we’re a little bit different to other institutions in that. We have — our clients are sophisticated. So, cumulative betas are not materially changed from last quarter, they’re in the 80% zip code and we’ve passed on the rates.
So, I think it’s important to note that there’s no material pricing lag to catch up here. And so, we kind of feel the absolute level of deposits is pretty good. We feel very good about our outlook for the rest of the year, but look the world is very uncertain and who knows what comes tomorrow and for 2024 like we’ll give you more detailed guidance in January, but I feel pretty good about where we are today.
Robin Vince: Yeah, and Ken, I’ll just add to that, just to draw your attention to really emphasize two things. Number one is, when we started off the year when we gave the guidance of 20% for NII growth over the course of the year. Clearly the year has turned out differently, but I think the power of the Global Equities Solutions team that we’ve put together has really been able to prove our ability to be agile in this space, sort of a little bit irrespective of the environment. I don’t want to be complacent with that comment because clearly the world can change, but we saw a lot of things over the course of the first three quarters of the year. I think the team’s done a very good job adapting to those and maintaining the consistency.
And you’ll remember Dermot’s comments earlier in the year, which, is we thought NIB’s were hanging in a little higher than we would have expected them to be and we’ve always expected them essentially to come down to this level. It just happened a little later than we thought, but obviously we’ve been fine with that. And then the second comment is, remembering the inputs in terms of the diversification. Dermot said it earlier, but it really is critical to our deposits franchise. We’ve got the issuer services business with corporate trust, which drives on one set of inputs to their deposit algorithm. We’ve got a clearing and collateral management business, which has a different set of drivers. We’ve got our treasury services business, which has yet a different set of drivers.
And of course, we have our asset servicing business as well. So that breadth and diversification just creates for different outcomes and I think you’ve seen that over the course of this year. So we’re not sitting here today giving guidance for next year, but the fourth quarter NII is probably a pretty decent place to start as you think about the world.
Kenneth Usdin: Okay. Got it. Thank you. And just one question on Pershing, it’s great to see the wave start and the good commentary you have about the momentum. Just wondering, we know that there was going to be a client deconversion coming out of that as well. Did we see that in the third quarter result or is that still a pending yet to happen?
Dermot McDonogh: We expect that to happen over several quarters, Ken. I think the important point, so it happened over both quarters. I think the second quarter was a little bit more than the third quarter, but we do expect that to work its way through over the next several quarters. I think the important point I’d leave you with on Pershing, in addition to the Wove developments, is the fact that we added $23 billion of net new assets in the quarter, and the underlying strength of the business and our ability to provide solutions to our clients in that space is really, really terrific to see.
Kenneth Usdin: Yes, and that’s what I’m hoping for that you can offset that with the organic growth. That’s what I’m getting at.
Dermot McDonogh: Yeah, we believe we have the confidence to earn our way out of that over the next several quarters.
Kenneth Usdin: Okay, got it. Thank you.
