The company faces risks from negative economic conditions, interest rate fluctuations, changes in credit ratings impacting funding costs and liquidity, deposit fluctuations, execution challenges of strategic initiatives, geopolitical instability, regulatory changes, litigation, and operational failures. Market liquidity and interest rate shifts could reduce margins and impact funding. The allowance for credit losses is sensitive to macroeconomic forecasts, and goodwill impairment is subject to management assumptions and market conditions.
Financial Upside
The company's net interest income increased in the three and nine months ended September 30, 2024, driven by higher interest-earning asset yields and deposit growth. Noninterest income increased due to higher capital markets fees, card fees, and wealth fees. The company repurchased common stock and issued preferred stock, potentially increasing shareholder value. A decrease in risk-weighted assets (RWA) also contributes to a positive financial outlook.
