Matt O’Connor: Okay, thanks for all the color.
Operator: The next question will come from Dave Rochester of Compass Point Research. Your line is open.
Dave Rochester: Hey, good morning, guys. Sorry for one more question on the NII guide here, but was just curious how much of that decline that you’re expecting for this year is driven by that continued remix of deposits and the lower non-interest bearing deposits you talked about and where are you assuming that DDA mix settles out this year?
Charlie Scharf: Yes, as you would guess, when you lose non-interest bearing deposits or they shift into higher yielding products, that’s going to have a pretty substantial impact. And so, that is a big driver of what the decline is for the rest of the year. We haven’t really talked about exactly where it bottoms, but it should stabilize at some point.
Dave Rochester: Okay. And then on capital, was curious what more buybacks means for capital ratios and that 2.5% buffer you talked about by the end of 2024. All else equal is the thought that you’ll take those ratios and that buffer lower this year.
Charlie Scharf: We’ll see, but I think, I won’t try to give you a buyback number. Lots of things go into figuring that out throughout the year. But as we said, we expect buybacks to be bigger than last year and, the level assuming that nothing significant happens in the macro environment, the level that we’re at is higher than we need to be.
Dave Rochester: Great, thanks. Appreciate it.
Operator: And our last question will come from Manan Gosalia of Morgan Stanley. Your line is open.
Manan Gosalia: Hey, good morning. Two quick ones for me. I know you said your guide includes stable deposits, but a shift towards interest bearing deposits. Would an end to QT stop that share shift, or is it different, given you’re seeing that share shift from the consumer side?
Charlie Scharf: Yes, what we said is, we expect stable deposits on the wealth and the commercial side. We do expect some declines on the consumer side, and an end to QT would be a positive.
Manan Gosalia: And can you expand on that a little bit? Why would that be?
Charlie Scharf: Well, QT at drains, will at some point more meaningfully drain liquidity out of the banking system. Right. So once you get the RRP facility down to a smaller number, which is likely to happen, then any further QT starts to really remove liquidity more directly out of the banking system and so that stops. That’s a positive for deposits.
Manan Gosalia: Got it. Okay. And then just on credit, how do falling rates impact your outlook for CRE losses at the margin? Do you feel better about working with borrowers and mitigating losses and NPLs and how long this takes to work out, or have things not changed that meaningfully yet?
Charlie Scharf: Hasn’t changed that meaningful yet. Really. We’re dealing with what is a structural change in sort of demand for real estate in some parts of the country. And so you got to work through that. And then I think on the margin, lower rates are helpful, but the bigger issue needs to get worked through first.
Manan Gosalia: Great. Thank you.
Charlie Scharf: Okay, thanks, everyone, for the questions – next time.
Operator: Thank you all for your participation on today’s conference call. At this time, all parties may disconnect.
