Emily Portney: So there’s a lot in there. So look, we’ve been very nimble and continue to be very nimble in terms of managing our portfolio. Bottom line right now, we’re positioned to benefit from higher rates, but I’d just call everyone’s attention to the fact that the duration of our portfolio is the shortest its been in recent memory and more than 60% of the portfolio is in available for sale. So we’ve really retained a lot of flexibility and we can act very swiftly should the environment ultimately change. And as it relates to reinvestment yields, I guess it was in the second quarter, I believe, in 2022 that the investment range began to exceed roll off rates. The difference between the two has steadily expanded to about 250 basis points in the second quarter.
And when you just think about how much of the portfolio resets at any moment in time, that 40%, as I said, of the security is — or you can see it 40% of the securities portfolio is excluding assets and the duration, the fixed asset securities is about three years. So you can kind of do the math there.
Operator: And our final question will come from Michael Brown.
Michael Brown: Most of them have been answered. I guess my question was kind of as we think about further out into 2023, and so the market is assuming some rate cuts could occur before year end. As we get — if you get to that point, what is your view on how deposit pricing performs there, right? Because if your deposit betas were generally higher than the broader banking system on the way up, how do we think about it to the point where we start to see some early rate cuts? Because I guess in that backdrop it’s not an expectation that we’re heading back to where we were, just some modest rate cuts. So how do you think about the deposit pricing in that environment?
Emily Portney: So we do expect deposit pricing to perform similarly on the way down as it did on the way up. So we’ll get the benefit, of course, because our — we will get the benefit should rates suddenly start to come down, deposit costs also coming down very quickly. And likewise, I’ll just remind you that to the extent that rates start to come down then AOCI will pull the faster.
Michael Brown: And then just one more on NII, appreciate the full year annual guidance. As you look at the fourth quarter, it was up about 14% sequentially. Within the annual guidance, any view on how we should think about the first quarter? I know it’s a moving target, but any range here just to help us think about the trajectory.
Emily Portney: As I mentioned, the range of outcomes is very wide. So it’s really hard to predict the trajectory in any given quarter. It really is very dependent, probably most specifically on the deposit trajectory. And like I said, if NIBs remain elevated, there’s upside there.
Operator: And with that, that does conclude our question-and-answer session for today. I would like to hand the call back over to Robin for any additional or closing remarks.
Robin Vince: Thank you, operator. I’d like to close today’s call by thanking Emily for her time as our CFO and to congratulate her on taking up her new role, starting February 1st as the CEO of Asset Servicing, which as you know, is our largest business. Emily brings a set of experiences and relationships to this role that are going to be invaluable in driving profitable growth of our client franchise. And finally, I’d like to welcome Dermot McDonough, our next CFO, to the BNY Mellon team. He joined us in November and he’s hit the ground running. I know that you are all looking forward to his first earnings call with him in April. So with that, I’d like to thank you for your interest in BNY Mellon. And if you have any follow-up questions, please reach out to Marius and the IR team. Be well.
