Large Bank Supervision Forum 2023

Internal Use Only

To wrap up

Internal Use Only

To wrap up • Profitability strong – net income still above pre pandemic levels • NIM widened – driven by yield on loans, held down by cost of deposits • Net interest income grew, now a record percent of avg assets • Asset quality remains strong • Industry remains well capitalized and highly liquid • Headwinds exist: • Inflation • Rising rates • Geopolitical uncertainty • Headwinds could: • Hurt profitability • Weaken credit quality/capital • Limit loan / deposit growth CSBS Predictive Model