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- **Record Revenue and EPS Growth**: Q3 EPS up 18.4% YoY to $1.22, net revenue $7.3B (record), driven by fee businesses and spread income.
- **Strategic Momentum**: 9.5% YoY fee growth, 530 bps operating leverage, and 2/3 fee revenue from high-growth businesses like Impact Finance (17% CAGR 2021-2024).
- **NIM Expansion Path**: Targeting 3% NIM by 2027 via fixed asset repricing, loan growth, and deposit mix. Q3 NIM 2.75% (9 bps QoQ expansion).
- **Credit Quality and Capital**: CET1 10.9%, NPA ratio 0.43% (down 6 bps YoY), and strong capital generation.
- **Operating Leverage**: >200 bps QoQ operating leverage expected in Q4, supported by fee growth and expense control.

**【CEO Summary Section】**
- **Revenue and EPS Growth**: Reported EPS of $1.22, up 18.4% YoY, with record net revenue of $7.3 billion driven by fee businesses and spread income. Achieved 530 basis points of operating leverage.
- **Strategic Priorities**: Focus on organic growth through interconnected solutions, expense discipline via automation, and payments transformation. Improved credit quality with ROAA of 1.17% and NIM of 2.75%.
- **Fee Diversification**: Fee revenue grew 9.5% YoY, with 2/3 of total fee revenue from high-growth businesses like Impact Finance (17% CAGR 2021-2024). Impact Finance supports EPS through tax benefits.
- **Consumer Deposit Strategy**: Consumer deposits rose to 52% of total, up 2 points YoY, supported by products like Bank Smartly and branch expansions.
- **Expense Efficiency**: Improved efficiency ratio to 57.2% and reduced operating expenses 5% YoY through productivity programs.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP EPS of $1.22, net revenue $7.3 billion (record). Fee revenue growth 9.5% YoY, driven by capital markets and mortgage activity. Noninterest expense $4.2 billion, in line with guidance.
- **Balance Sheet Strength**: Total assets $695 billion, deposits $512 billion (1.8% QoQ growth). Loans $379 billion, up 0.2% QoQ, with commercial and credit card loans growing 9.5% and 4.3% YoY.
- **Credit Quality**: NPA ratio 0.43%, down 6 bps YoY. Net charge-off ratio 0.56%, down 4 bps YoY. CET1 ratio 10.9%, up 20 bps QoQ.
- **NIM Outlook**: Q3 NIM 2.75% (9 bps QoQ expansion). Guidance for Q4 NII stable, with potential upside from repricing and mix. Targeting 3% NIM by 2027 via fixed asset repricing, loan growth, and deposit mix.
- **Operating Leverage**: Expects >200 bps QoQ operating leverage in Q4, driven by fee growth and expense control.

**【Q&A Key Highlights】**
- **NIM and Rate Cuts**: CFO John Stern sees path to 3% NIM by 2027 via repricing ($3B investment portfolio, $5-7B loans), mix (card/commercial loans), and deposit pricing. Curve shape and Fed cuts could accelerate expansion.
- **Fee Growth Drivers**: CEO Gunjan Kedia highlights pipeline strength in payments (merchant, card), Impact Finance growth, and interconnected products boosting multiproduct adoption.
- **Deposit Strategy**: Focus on sticky consumer deposits (Bank Smartly, wealth integration) and relationship-based commercial deposits, reducing reliance on noninterest-bearing deposits (16% of total).
- **Risk Management**: Strong credit quality with improving trends. NDFI loans (12% of total) have higher credit quality than C&I, with underwriting focused on repayment structures and collateral.
- **Stablecoin Preparedness**: Testing stablecoin transactions, with custody/safekeeping as near-term opportunity. Payments transformation to be detailed at industry conference.


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