Assets under custody and/or administration (AUC/A) increased to $48.8 trillion at the end of Q1 2024, compared to $46.6 trillion at the end of Q1 2023, reflecting higher market values, partially offset by lower collateral management balances.

Assets under management (AUM) increased to $2.02 trillion at the end of Q1 2024, compared to $1.91 trillion at the end of Q1 2023, primarily reflecting higher market values.

The company repurchased 17.9 million common shares at an average price of $55.30 per share, for a total cost of $988 million in Q1 2024, indicating a continued focus on returning value to shareholders.

Noninterest expense increased by 2% year-over-year, from $3,100 million in Q1 2023 to $3,176 million in Q1 2024, primarily reflecting higher investments, severance expense and employee merit increases, partially offset by efficiency savings.

Management realigned similar products and services within lines of business, consistent with the firm's ongoing transition to a platforms operating model. This may impact future segment reporting.

While noninterest expense increased, management notes that efficiency savings partially offset higher investments, severance expense and employee merit increases, indicating an effort to control costs.

The provision for credit losses was $27 million in Q1 2024, primarily driven by reserve increases related to commercial real estate exposure, suggesting potential risks in this sector.

The company's country risk exposure to Russia consists of cash balances related to its securities services businesses, and may increase in the future to the extent cash is received for the benefit of clients that is subject to distribution restrictions.

The company performed an interim goodwill impairment test of the Investment Management reporting unit, due to the results of the fourth quarter 2023 interim goodwill impairment test and macroeconomic conditions. The fair value of the Investment Management reporting unit exceeded its carrying value by approximately 10%, but the possibility of future impairment remains.

The increase in fee revenue is primarily due to higher market values and client activity, indicating a strong competitive position in attracting and retaining clients.

The company notes that market and regulatory trends are driving investable assets toward lower fee asset management products at reduced margins for clients, impacting investment services fees. However, these trends are also providing additional outsourcing opportunities.

The company is continuing to develop its digital asset capabilities, indicating a focus on innovation and adapting to changing market demands.

The company's noninterest expenses increased, but this was partially offset by efficiency savings, indicating an ongoing effort to manage costs.

The Securities Services segment saw a decrease in noninterest expense compared to the fourth quarter of 2023, primarily due to efficiency savings, lower severance expense and lower revenue-related expenses.

The company notes that market and regulatory trends are providing additional outsourcing opportunities as clients and other market participants seek to comply with regulations and reduce their operating costs.

The company is continuing to develop its digital asset capabilities and to work closely with clients to address their evolving digital asset needs, indicating a focus on innovation and adapting to changing market demands.

The company's Digital Asset Custody platform and related initiative had a de minimis impact on assets, liabilities, revenues and expenses in Q1 2024, suggesting that this is still an emerging area.

The company is making investments in growth, infrastructure and efficiency initiatives, which are primarily included in staff, software and equipment, and professional, legal and other purchased services expenses, indicating a focus on long-term growth and efficiency.

The company repurchased 17.9 million common shares at an average price of $55.30 per share, for a total cost of $988 million in Q1 2024, indicating a continued focus on returning value to shareholders.

In April 2024, the board authorized the repurchase of an additional $6 billion of common shares, demonstrating a commitment to returning capital to shareholders.

The common dividend payout ratio was 34% for the first quarter of 2024, consistent with prior periods, indicating a stable dividend policy.

The company is assessing the potential impact of the SEC's final climate-risk disclosure rule, indicating an awareness of and preparation for new ESG-related regulations.

The company is assessing the potential impact of the EU's Corporate Sustainability Due Diligence Directive, indicating an awareness of and preparation for new ESG-related regulations.

The company adopted new accounting guidance related to investments in renewable energy projects, indicating a focus on sustainability-related investments.

The increase in fee revenue is primarily due to higher market values and client activity, indicating a strong competitive position in attracting and retaining clients.

The company notes that market and regulatory trends are driving investable assets toward lower fee asset management products at reduced margins for clients, impacting investment services fees. However, these trends are also providing additional outsourcing opportunities.

The company is monitoring its exposure to Israel as part of its internal country risk management process, indicating an awareness of and preparation for potential geopolitical risks.