- Net accounts of 5.3 million were opened during the quarter.
- Charge volume was $95.5 billion, an increase of $2.1 billion, or 2%, from the prior year, driven by sales volume growth of 8%.
- Merchant processing volume was $194.4 billion, an increase of $16.5 billion, or 9%, and total transactions were 5.4 billion, an increase of 438 million, or 9%, from the prior year.

Commercial Banking

- Net income was $288 million, an increase of $32 million, or 13%, from the prior year driven by record net revenue, partially offset by higher noninterest expense.
- Net revenue was $1.1 billion, an increase of $66 million, or 6%, from the prior year.
- Net interest income was $758 million, up $50 million, or 7%. The increase was driven by double-digit growth in liability and loan balances, primarily offset by a continued shift to narrower–spread liability products and spread compression in the loan and liability portfolios.
- Noninterest revenue was $326 million, up $16 million, or 5%, due to higher deposit-related fees, largely offset by lower investment banking revenue.

- Middle Market Banking revenue was $695 million, an increase of $34 million, or 5%, from the prior year.
- Mid-Corporate Banking revenue was $239 million, an increase of $41 million, or 21%.
- Real Estate Banking revenue was $102 million, a decrease of $18 million, or 15%.

- The provision for credit losses was $105 million, compared with $111 million in the prior year. The current-quarter provision largely reflects portfolio activity and growth in loan balances.
- The allowance for loan losses to average loans retained was 2.66% for the current quarter, which decreased from 2.67% in both the prior year and prior quarter.

- Nonperforming loans were $146 million, up 21% from the prior year and 9% from the prior quarter. The net charge-off rate was 0.21% in the current quarter, compared with 0.11% in the prior year and 0.13% in the prior quarter.
- Noninterest expense was $504 million, an increase of $19 million, or 4%, from the prior year due to increases in both compensation and volume-related expense.

- Overhead ratio was 46%, an improvement from 48% in the prior year.
- Average loan balances were $65.5 billion, up $7.9 billion, or 14%, from the prior year and up $4.3 billion, or 7%, from the prior quarter.
- Average liability balances were $96.7 billion, up $17.7 billion, or 22%, from the prior year and up $8.6 billion, or 10%, from the prior quarter.

Treasury & Securities Services

- Net income was $422 million, an increase of $166 million, or 65%, from the prior year, driven by record net revenue, partially offset by higher noninterest expense.
- Net revenue was $1.9 billion, an increase of $393 million, or 26%, from the prior year. Worldwide Securities Services net revenue of $1.1 billion was up $269 million, or 32%. The growth was driven by increased product usage by new and existing clients, wider spreads in securities lending driven by recent market conditions and market appreciation. These benefits were offset partially by spread compression on liability products. The current quarter also benefited from seasonally strong depositary receipts activity.

- Treasury Services net revenue was $824 million, an increase of $124 million, or 18%, from the prior year. This increase reflected wider market-driven spreads on higher liability balances and growth in electronic transaction volumes.
- TSS firmwide net revenue, which includes Treasury Services net revenue recorded in other lines of business, grew to $2.6 billion, up $466 million, or 21%.
Treasury Services firmwide net revenue grew to $1.5 billion, up $197 million, or 15%.

- Noninterest expense was $1.2 billion, an increase of $118 million, or 11%, from the prior year, reflecting higher expense related to business and volume growth, as well as investment in new product platforms.

- TSS pretax margin(2) was 35%, up from 33% in the prior quarter and 26% in the prior year.
- Average liability balances were $250.6 billion, up 30% from the prior year.
- Assets under custody increased to $15.9 trillion, up 15% from the prior year.

Asset Managemnet

- Net income was a record $527 million, an increase of $120 million, or 29%, from the prior year. Results benefited from record net revenue offset primarily by higher noninterest expense.
- Net revenue was $2.4 billion, an increase of $442 million, or 23%, from the prior year.
- Noninterest revenue, primarily fees and commissions, was $2.1 billion, up $359 million, or 21%, largely due to increased assets under management and higher performance fees.
- Net interest income was $329 million, up $83 million, or 34%, from the prior year, primarily due to higher deposit and loan balances.

- Institutional revenue grew 21%, to $754 million, due to net asset inflows and performance fees.
- Private Bank revenue grew 35%, to $713 million, due to higher asset management and performance fees and increased deposit and loan balances.
- Retail revenue grew 18%, to $640 million, primarily due to market appreciation and net asset inflows.
- Private Client Services revenue grew 11%, to $282 million, reflecting higher deposit balances and growth in assets under management.

- Assets under supervision were $1.6 trillion, an increase of $225 billion, or 17%, from the prior year.
- Assets under management were $1.2 trillion, up 18%, or $180 billion, from the prior year. The increase was the result of net asset inflows into liquidity and alternative products, and market appreciation across all segments.
- Custody, brokerage, administration and deposit balances were $379 billion, up $45 billion.
- The provision for credit losses was a benefit of $1 million, compared with an expense of $14 million in the prior year.

- Noninterest expense was $1.6 billion, an increase of $275 million, or 21%, from the prior year. The increase was due primarily to higher performance-based compensation expense.
- Pretax margin was 35%, up from 33% in the prior year.

- Assets under management were $1.2 trillion, up 18%, or $180 billion, from the prior year, including growth of 21%, or $21 billion, in alternative assets.
- Assets under management net inflows were $33 billion for the fourth quarter of 2007, and $115 billion for the past 12-month period.
- Assets under management that ranked in the top two quartiles for investment performance were 76% over five years, 75% over three years and 57% over one year.

- Customer assets in 4 and 5 Star rated funds were 55%.
- Average loans of $32.6 billion were up $3.7 billion, or 13%, from the prior year.
- Average deposits of $64.6 billion were up $13.3 billion, or 26%, from the prior year.

Corporate