Strong Financial Gains: Analyzing Year-On-Year Growth in Revenue and Loan Performance

Financial Performance Improvement:
- Adjusted pre-provision net revenue increased 19% year-on-year, with a strong increase in net earnings for the year reaching $737 million or $4.95 per share.
- This improvement was driven by a 3.05% net interest margin, which expanded for the fourth consecutive quarter, and a 62% efficiency ratio improvement.

Deposit and Loan Growth:
- Average customer deposits increased, both on an ending and average basis in Q4 and full year, with a slight increase in noninterest-bearing demand deposits.
- Average loan growth was 1.1% on a linked-quarter basis and 3.2% for the full year, driven by modest growth in consumer mortgages and C&I loans.

Credit Quality and Loss Provisions:
- Net loan losses for the quarter were $36 million, with nonperforming assets decreasing by $70 million.
- The increase in classified loans was primarily due to commercial real estate, with multifamily, industrial, and office sectors contributing to credit quality concerns, driven by construction delays, lease-up issues, and interest rate impacts.

Capital Markets and Fee Revenue:
- Capital markets revenue increased by 36% for the full year, driven by strategic investments, contributing to record customer fee performance.
- Growth was supported by increased revenue from capital markets, commercial account fees, and treasury management services.