Mike Santomassimo: Yeah, I would, and just like I think John at McDonald asked it earlier, I would look at our interest rate sensitivity, Gerard, and as I said, we’re still modestly asset sensitive. A little bit less at the end of the fourth quarter than the third quarter. And I think it is a pretty linear sort of equation there. And so I would just look at the 100 basis point move that we have in there. It’s around a couple of billion dollars of move when you look at that as of the end of the third quarter, again, it’ll come in slightly from that likely into – at the end of the fourth quarter and just use whatever assumption you want, and it is a pretty linear. Within reason, it’s a pretty linear equation.
Gerard Cassidy: Okay. And then you guys obviously have been very focused on the expense reduction and aberrantable job since you guys all got there obviously. Is there any way that you could bring down the operating losses? I think they’ve been pretty consistent at $1.3 billion for a bit. Is there anything in there that down the road you could change where it would actually fall? Or is it just something that just the cost of doing business with fraud, theft and et cetera?
Mike Santomassimo: Well, there’s certainly some portion of that, that will is just the cost of doing business. Now, even on the fraud and BAU operating losses, we, as most people, I would think, are continuing to invest in capabilities to reduce those more and more and that’s we continue to do that as well. And then I think as we continue to put more of the issues, historical issues behind us, hopefully the overall number continues to trend downward.
Gerard Cassidy: Great. I appreciate it. Thank you.
Operator: The next question comes from Matt O’Connor of Deutsche Bank. Your line is open.
Matt O’Connor: Hi. Any thoughts on where card charge-offs go in 2024? I think you’re about 4% this quarter. And I guess you’ve had really good growth. So if we lag it like we used to do in the old days, maybe we get about 4.5%. I don’t know if that’s a good starting point or just any way to frame losses from here. Thanks.
Mike Santomassimo: Yes, I won’t give you a specific number, but the way you’re thinking about it is exactly right. I think as you look at the portfolio that we have, which might be a little different than others is, we launched the new product set starting a little over two years ago, but you’ve sort of seen more meaningful new account growth starting about two years ago. And so you’re in that normal maturation curve and seasoning of sort of losses as they come on. And so we would expect that it would continue to trend a little bit higher from where it is.
Matt O’Connor: And then, we’re seeing this obviously not just with you guys, but kind of across the board in terms of card losses go up, even though we’re still in this really good environment in terms of employment and wealth and still a bit of excess savings. Just thoughts on what’s driving losses. Again, not just for you, but just for everybody, there’s life events that always happen, but it just feels like maybe card losses are getting a little higher than I would have thought with unemployment where it is, and again, like jobs available and all those dynamics. Thanks.
Mike Santomassimo: Yes, and maybe I’ll start. And I think as Charlie kind of highlighted in his script, the averages all look fine when you look at liquidity or deposit balances. And certainly even when you look at the cumulative wage growth that you’ve seen over the last few years, in aggregate, you go, it paints a pretty good picture. But when you go below that, and we’ve tried to highlight this a few times over the last year or so, when you go below that, there are certainly cohorts of clients or people that are stressed. And the further you go down in income levels or the further you go down in wealth levels, the cumulative impact of inflation has really taken a toll. And so you’re going to have some percentage of people that are feeling much more stressed than what the aggregate numbers would imply.
And in some cases, their liquidity is going to be lower than it was pre-COVID. In some cases, they’ve been having to build bigger credit card balances. And so for us, it’s not a big part of the overall portfolio, but you’re going to continue to see that, which is something we should all have expected and expect to see as you go forward.
Charlie Scharf: And the only thing I would add is that that’s something that has always existed pre-COVID. Right. There were always people that were doing better and there were people that were doing worse. And I think what’s important, I speak for ourselves, when we look at our card losses, what we actually are looking at is, how they’re performing on a vintage basis versus pre-COVID levels. And the curves are right on top of what that is. And so it’s when we talk about getting back to normal in terms of what we’re seeing, that’s what we’re actually seeing in card losses. We’re not seeing at this point anything that goes beyond that.
Matt O’Connor: Okay, that’s helpful. And then just lastly, if I can squeeze in, remind me, like the targeted customer, I think it’s like prime plus. But any way to frame that in terms of whether it’s Spico [ph] or wealth metric or homeowner percent or any way just to frame it, it is becoming a bigger part of the company, obviously so. Thanks.
Mike Santomassimo: Yes, look, we’re not going to get that specific, but when you look at like, individual products, they’re targeted towards different cohorts of clients. But what I would say overall, we feel really good about the credit quality of the new accounts we’re putting on. And in most cases, in most products, the credit profile is better than what we have from the historical backbook.
