Betsy Graseck: Okay. All right. And then separately, I know we talked a little bit earlier about the capital and the fact that your CET1 has been migrating down as you’ve been doing some nice lending, et cetera. Just wanted to understand the RWA density, it looks like it’s gone up a bit. And I just wanted to understand, is that just loan growth? Or is there something else going on there? Is there some changes in how you think about RWA factors? And then I’m just wondering like how — what is the low on CET1 that you’re willing to drive to as we think about demand for borrowing is still pretty robust.
Rob Reilly: Well, so a couple of things on that. I would say in terms of the RWA increase, it’s entirely loan driven. So, we’ve had a lot of loan growth in ’22, a lot in the fourth quarter with that 3% growth in average loans. So that’s the key driver of the RWA increase. Our CET ratio is at 9.1%. We’ve talked about an operating guideline of between 8.5% and 9%. So, we’re still above our operating guidelines and that’s a good place to be.
Betsy Graseck: Okay. So 8.5% the low, really, that’s how we should read it.
Rob Reilly: Yes.
Operator: Our next question is from the line of Ken Usdin with Jefferies. Please go ahead.
Ken Usdin: I was wondering if you guys could talk about the still potential for the TLAC rules that come down to the category threes and how you would be thinking about either getting ahead of that or starting to issue? Or do you just have to wait for the final notice and then consider a phase-in period?
Bill Demchak: I mean a lot of people talking about this, not a lot happening around it. Where it to happen, by the way, we disagree with it, but let’s walk down the path and say somehow down the road people suggest that this should happen and there’d be a phase-in period. Practically, as we look at the growth opportunity in our company new clients loan growth against what it is likely to be a constrained ability to grow total deposits, right? You’re going to see our wholesale borrowings increase. And in the course of our wholesale borrowings increase in the ordinary course of business, we’re going to fulfill all our parts of that TLAC requirement. All of that is in the numbers we’re talking to you about — it’ll take more than next year. But in the way we think about.
Rob Reilly: In terms of to normalize as we move towards more normalized mix.
Bill Demchak: Yes. So — and the simplest way to think about that maybe is our wholesale debt historically ran. I don’t know, in the mid…
Rob Reilly: 15% to 19%.
Bill Demchak: Yes, mid-teens, I was going to say, and we’re running 5%. So if we normalize that’s what home loan in there. As we normalize our borrowings through time, it’s likely we’re going to get — and fulfill that requirement without purposely trying to do it. Just because that’s the way we and other people will be funding institutions.
Rob Reilly: Yes. I’d just add to that, that’s — we see it on our path. It’s not particularly problematic, but there’s a lot to be played out. We still don’t think it’s necessary and there’s also a reasonable chance there’d be some tailoring to it, which would be reduced in our case.
Ken Usdin: Yes. And as a follow-on to that to your point about wholesale borrowings, funding loan growth incrementally, can you just talk about how you’re thinking about the securities portfolio? I know you saw some growth this quarter. I know you’re getting good front book, back book on it. The percentage of earning assets is still around 28%. So how would you expect that to go vis-Ã -vis the use of wholesale borrowings to continue to support that growth as well?
