Emily Portney: So I’ll kind of answer that more focused on margin for security services, because that’s really what we’ve been talking about is a very critical KPI for us. And I think Robin already said, we are very committed to a 30-plus percent margin over the medium term. You’ll see we printed in the fourth quarter margin of about 27% for the full year, that was closer to 21%. In 2023, we will benefit somewhat from NIR. So higher rates will partially offset perhaps by a modest decline in NIBs. Also, we are absolutely extraordinarily focused on executing against the revenue growth as well as the efficiency initiatives that we have been talking about. When you think about security services, though, I’d also just mention, there’s going to be some nonrecurring activity that we enjoyed in 2022 that we won’t have in 2023 in issuer services in particular.
So kind of net-net, putting it all together, when you look at the margins for security services overall, they’re going to be lower than what we printed in Q4 but certainly higher than the full year level. So we’re making progress.
Steven Chubak: And just the expense growth firm wide basis, whether the exit rate for ’23 should reflect some of those additional efficiency benefits that you had cited. I’m just trying to think about the cadence for how we should think about the expense trajectory over the course of the year.
Emily Portney: So I’m not going to kind of give too much detail on what we expect quarter-on-quarter. I mean the only thing I would say just — and all of you guys know this is that for the first quarter, staff expenses are typically a bit higher due to long term incentive comp associated with retirement eligible employees. And of course, the actions we’re taking, they’re front loaded but you’ll see that over the course of the year. So I think I would just go back to, we are absolutely bending the cost curve. We are expecting to deliver and are very committed to deliver year-on-year growth of about 4%, 4.5% constant currency and again, that compares to 8% in 2022.
Operator: Our next question comes from Mike Mayo.
Mike Mayo: Robin, I think you inherited a tough hand here. So I mean BNY Mellon historically has had periods when they do a better job controlling expenses, but that typically coincides with periods of slower top line growth, but you’re starting off here, fees were down 3% last year. Looks like your guide for NII implies that’s flat with the fourth quarter. So it’s not so much — okay, revenues are slow, you can control expenses so much, they’ve already slow or they’re about to. So it just seems like your efficiency savings are going to be tougher. And as part of that, this predates you, Robin, but when it comes to notable items or onetime items, you had some this quarter. But if you look over a decade, your notable items add up to $3.5 billion, that’s almost a year’s worth of earnings.
So the real question here is how can you improve your profit margin and your efficiency ratio and squeeze more out of BNY Mellon when the revenue environment has been tough and you have inflationary pressures. So I guess how confident are you to turn this around in terms of the positive operating leverage on a core basis?
