The Bank of New York Mellon Corporation (BK) 19 Oct 212021 Q3 Earnings call transcript

Please standby. We're about to begin. Good morning and welcome to the 2021 Third Quarter Earnings Conference Call hosted by BNY Mellon. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. conference of webcast copyrighted this and be that consist will material. note call will and recorded Please

You may call not Relations. BNY Merz, Mellon's record Mellon Please or rebroadcast I BNY now these go will ahead. turn of the Head over Marius consent. to Investor materials without

at Thank Good on of presentation, presentation. highlights which Chief And be found morning, Todd you welcome Quarter take page our First bnymellon.com. financial you, conference reference through call. Chief Officer, Financial remarks. website will our Investor our operator. the our Relations with earnings the will open our Today, Then, everyone. Executive to we Gibbons, will can Portney, Emily Officer, his

will a remarks, session. there their Following be Q&A

statements measures measures. and the of supplement, available Before these statements Investor available about are and and all page non-GAAP press we note financial include begin, please release, non-GAAP Information on Relations the that in earnings our presentation, financial website. highlights forward-looking our remarks

made speak statements I this call not over turn updated. With of and XXXX to only will it on today, will that. XX, be Forward-looking October Todd. as

Thank will Highlights I financial for it you. will to everyone. morning, the detail third over our to the give she year before you Emily of review the results. well. hand remainder a on And Marius. quarter good more as touch And few. I outlook in

supportive backdrop. quarter and markets organic businesses, broad-based as this well growth healthy performance reflects our financial global Our as across

XX% market X% that excluded This And growth fee if year-over-year $X franchise. growth Now of on X% generated you a money almost equity return Revenue impact revenue fee of up the and up common was year-over-year. we if organic our financial and included billion would fee you across $X.XX waivers. to of of of reported refer slide have X was X% been EPS presentation, our tangible highlight’s XX%.

X billion we XXX of of our to and quarter, common shareholders, buybacks. billion $X.X returned million the including almost dividends During roughly of capital

Our led improve groundbreaking this us innovation us. exciting has will new announce client meaningfully on and the for solutions represent to that opportunities continued focus experience several quarter growth

services. the opportunity competitors In Let differentiated value, multiple the sales for me larger, our strength this highlight expertise firm. Oak of real see continue growth deep for business momentum. a we Asset our of And testament excited services product deals increasingly receiving to Hill number admin across the versus are that our Asset XX% and a them plus. us quarter, start up Due we growth with had and functions example a chain. able this ago We in-house. fee This offer is with of win which year remain quarter. to offering. to the in seamless expand more one as were can we ability we were from XX% capabilities fund both a mandates. has see winning Servicing third and Year-to-date solution we're Servicing. work business seen to and to nice But platform, almost about our middle office us. scale provide one very across to wins Oakhill year ahead to complex of of strong the ability mandate our our performing a our was investment the alternatives We exciting this I doing would leading Advisors, value like is clients

resonate of than with in during we Servicing all our launch good also continued continue XXXX more funds already in year-to-date, We have our to our clients. data helped capabilities analytics then And see clients and ETF business, momentum where to

total of asset clients And an thrilled partnership data number manager call of the Administration. another extension we to bringing signed large And data also two signed management platform additional asset global or X. we the about to of mandated [Indiscernible]. what bulb to our quarter, the Board manager clients the or we're State with large next-generation our went up This live Florida

ESG cycle $XXX analytics billion data for app their leverage As spanning they under about investment funds, full into XX-plus look in management. to our assets

Now markets quarter the continued another assets. and on and and growth back it moving was onto had of [Indiscernible]. Pershing organic client accounts in good new

And the the past billion Pershing just management launch of franchise, turn-key wealth consolidation of not our our generated can XX and management designed a of differentiated and a Over the a front-end innovation and Fueling despite that This therefore, management become end experience and digital, uniquely months, our To she Today tools But will by within in loss Ainsley provider our we clearing provider a to set more few that we and there. end-to-end capture advisory tax leading our for advisors. a fintechs. last launched custodial of of technology challenge advisory are between you integrated headwind this space the unit series risk-based investors. leader with leading Pershing businesses, we're we're and disconnected client share assets. unit and we previously wealth has which Mellon for has and a segments we I'm who years. our partner Pershing business for Pershing growth. clients’ Simmons RIAs broad offering across growing solutions. approached industry's will sense for been managing power multiple and that welcome In has solutions Pershing broader She helped made the in are management, calling our custody of X already us. capabilities, space, to set solve tech the $XXX the innovative And to transformative financial This to the comprehensive announced lead week will platform solution the multi-billion-dollar capabilities, cost wealth data segment with the wealth choice. portable interconnected of clients fastest over services combined -- example financial resting in provide the of their strategic thrilled also the new collaboration wealth adding of and This investment several helping services services. successful deliver the Pershing, XX leading and advisory firms models extensive of in the mentioned. of X. efficient, capabilities. for recently one well-positioned solution new effort give broader, services. Pershing, in effective, of investment BNY (ph) technology,

and platform our have, Pershing's will our that the we talent profile. continue future X Pershing economy In functionality we real-time meaningfully of of most new healthy Now we business. treasury ambitious, customers. investments Verizon [Indiscernible] out X we've that payment BNY and see growth growth already payments projects enhance planned the September, combined has of to the The first with become leading In in and to announced Mellon's on an improving combination the is today. that back multi-year roll to corporate services, innovative volumes recruited, net global client its

the spoken roster about opportunity we're capability retail bills just client their the the network. customers and to real-time pay this we've enormous future. about receive our about across few times a incredibly as via the its more payments Now, see banks in enable excited We past. And

we market the bring these consumer built the market. from the is over CEO eventually which within paper-based. address banking expect seen, committing myself, in to annually are by have to capability And are we s are as U.S. This in with functionality paid scale. consumer which you right for have bills compete issuing. of of innovative, capabilities accounts U.S., the uniquely we of other some or XX banks largest that And innovative in to card disruption, don't digitally-enabled many the XX this year-end. still ecosystem including positioned country, billion is signed As XX% banks With it will letter a

the recognized come a of banker we space, to As the more a best a we in beginning, the is recently It's and were payments. this in transaction space. real leadership in so honor, the result by just lot think bank as our

benefit and continues management to management, the balances. collateral business the higher Turning clearing collateral to from

quarter. where -party. at domestically, driven the reached In growth point migrate the one Outside as to to this the elevated And continue has fact, U.S., been Fed's record, trillion clients by from bilateral seeing of we're utilization tri they sole that to a facility, growth recent our collateral $X to part U.S. international and we and implement program. clients new as efficiently of of Globally, are repo allow capabilities continue clearer. platforms interoperability versa, between reverse vice we collateral, the more future our mobilized

basis. the indirectly costs on central we've capital been And otherwise new the expands available scope deadlines by differentiated experience. and Phase that the these collateral quarter, the agency general but clients now bank X Clearing Income and new as that transactions. via could help as for And This universe program. the Corporation's collateral sponsoring in really are the a well to overnight recent we Fixed sponsored up us our with in multiyear as counterparties, can these MBS we It Additionally, margin reduce bilateral investments the not the repo validated free Last not [Indiscernible] capability clients collateral. making least, transact of non-cleared this were eligible transactions client of be automation and first of market. add done on

BNY volumes has things back organic having markets, end process, the clients and the client digitized to really all at lauded counter-party GoLive meet again, a volatility. While re-paper and automation to of client for on-boarding having to very cheaper. growth, ultimately and our go more in amendment continued many streamlined negotiation offsetting was and the process. automated, struggled we're the better, faster we're Once to our enabled industry headwind And relationships across these strong time lower unable collateral scheduled In of their deadlines a for on September, Mellon do experience. of remained

also preferences criteria also, money our This app. cash additional quarter their Direct investment analytics commercial their invest that liquidity ability select ETFs. clients short-term paper Clients leveraging several ESG can enhancements fixed income now now data market to investing the we our funds have gives ESG and rolled on and ultra-short-duration to and And seamlessly platform based options. out

it's extremely of early Investment to still of initial inflows Management, we growing zero-fee our first BNY Index the business. exceeds net and Mellon saw X far industry's the of largest drivers. Short by long-term it's suite quickly. products. management income recently In ETFs, first And AUM in launched billion ETF has fixed true and feedback consecutive investment so While the quarter days, categories been ETF, in Income our Pivoting active ETF client wealth we And sixth positive. now Ultra our into including sub-advised our $X equity ETFs

transition. growth better acquisition, it deposit completed and capabilities scale. [Indiscernible] banking with On the expand the time the client [Indiscernible] scale, the enhances needs, we we new to no as another performance up over value wealth three-pronged clients more very continued XX%. proposition of we've firms. virtually to transition X of last in size project, first XX% $XXX efficiency. drive the at the our strong. specialization as its strong over September, investment client on period the year Mellon's quarter of encouraging. further and and continues greater same focus client's invest [Indiscernible], saw and successfully about execute inflows clear clients and only drive creates mandates over this our thousand investment almost by cash in average And meet across our investment business acquired of realignment and in management, and from we remains of the well of with and and timely experienced finally, has billion business client strategy consultants And have is of to it completion Not but the the offering, [Indiscernible] positions and to technology integration in to products net are Year-to-date, The This during lending us been differentiation on clients investment the pleased feedback this

And summary, franchise. across intensely driving on are so, focused we in the innovation.

organic innovators. necessary efficiency in In growth. drive growth fact, continuing investments with technology, workplaces and in the we and XXX A culture investments our recently efficiency. pickup pleased and to to companies continued make the fast clearly continued We're were to testament forward-thinking growth among best named and we're people, our for our further

So, over it with to that, I'll Emily. hand

Thank and you, Todd, good everyone. [Indiscernible] morning,

of quarter. higher gains million for revenue losses strategic the for the reflecting increased provide otherwise. investment. litigation this results reserves. item excluding by can on interest the revenue fee by market a average As lower had page from revenue comparisons positive dollar. real and to you this Money $X.XX quarter, across XX recovery XXX over labors fee they valuation was Other a margin X% litigation quarter, will notable which improved On be short-term in slide. forecast, our servicing $X.XX, a impact X% of million of reserves key time. we offset continued an the macroeconomic Pretax or impact an history. the growth, benefit driven net affects the was down estate $X.XX by market impact or I of of provision grew million quarter, basis, a unless EPS values, by driven primarily the excluding fee on of benefit quarter, walk million of X% distribution, a the waivers. few strong prior higher Provision impact and Expenses This specify higher all see of negatively slightly higher four, market and X%. XXX roughly in for for heading EPS Fee And organic you through the XX%. revenue, bottom higher revenue improvement of expenses million favorable commercial and included higher money [Indiscernible], [Indiscernible] equity, X%, ABC, XX by prices. details U.S. a expectation metrics impact impact see fee impact was at in a the partially including compared XX credit interest was year-over-year for an waivers. the and XX% the A trend

On the on capital and page five. liquidity

liquidity above and and our ratios minimums and internal regulatory capital strong Our remained well targets. above

the sequentially, X.X XX down binding in down in XX.X% return and with billion second average. points driven earnings Our shareholders, to partially constraint, X.X% to points capital quarter. [Indiscernible] ratio, basis chairman our of the X% basis which XX by leverage offset by primarily ended compared is quarter-over-quarter our the ratio was reductions of approximately quarter We

for pressure IOER and X net roughly of compared was third amortizations, deposit page on XXX prior on quarter premium Finally, assets full interest earning interest by to the continued partially funding. further details and to a impact X% a quarter. higher NIR million, lower of flat down was our lower benefit The offset LCR Turn of reinvestment the yield XXX%, the than was lower quarter on revenue. less and

excess about drove an on in size X% sheet balance off financing. grows held our The cash sheet. continue held and at The and decrease year-over-year -- sequentially, Turning by some alternatives for portfolio deposit banks. page X quarter-over-quarter. capital loans sequentially. collateralized of growth our for X of to work driven approximately called loan, and color Average our will clients with loans, to securities global wealth size our institutions, [Indiscernible] flat central average balance by remains Average or loans balances reduction billion declined X% pursue their equal primarily cash. financial secured margin average increased XX% in management, by to deposits approximately Chief

and X%. excluding split and mentioned were increase expenses, was earlier, was up the revenue Services the two-thirds interest higher incremental impact Onto at weaker between investments waivers. our year-on-year higher up reported net X billion partially of revenue for businesses. unfavorable by of Almost X% Turning I attributable to expenses notable year-on-year, mentioned expenses up impact this dollar. billion to U.S. a eight, remainder page also X related closer X% as of page total that the evenly item were I fee earlier, X.X on the and revenue Investment of fees, of offset lower look

revenue impact was up Excluding fee XX%. fee the and of waivers, other

a waivers The the waivers. impact value. my and underlying roughly business. back issuer line reflecting X% That's the points. the were Second quarter impact by In fees fees growth, revenue impacted Corporate waivers. of saw in in service, were increased growth and business impact without also higher Treasury if Assets we XXX Quarter. Encouraging activity market that's fee comments XXX and strong of waivers. down continued In improved up as roughly businesses, the and I'll And XXX higher on client’s by XX.X was were loss fund under Fee economic volumes the the on on Asset impacted points X the Encouraging, XX%. FX resumption fee were payments healthy fee from activity, of a by in the client to mutual by services, custody and Waivers included up Clearing up a assets and growth growth by have new individual well as on and in half deconversion market offsetting VR with billion, higher of seasonally impact half offset Servicing, excluding fees. new higher values Services, dividend would payment points investments, XXX basis or higher the fee up activity, higher values Net our by we back driven business clients, issuance for were and focus each In of from that net roughly growth existing accounts resulting approximately and assets basis and of points. previously, lost consolidation and fee then waivers. approximately by trillion, been despite revenue. in nicely growth, assets offset administration net Trust XX% new roughly of decline basis growth the new in driven discussed market have fee the quarter

of our is clients. summarizes offset drivers business in XX for revenue investment volumes, in volatility investment primarily by higher each key our services clearance clearance Lastly, the driven balances by and higher services we're revenue volumes by increased driven businesses. management winning existing up new and spring. FX management underneath collateral intraday [Indiscernible] by lower all Page non-U.S. offset growth client as partially collateral lower growing XX% partially fees story with were in and across This year-over-year

Page X of year-over-year, of offset XX. dollar, revenue higher Wealth partially Management on and Management of investments, weaker values, U.S. equity total by market all Now turning reported billion by on performance and gains increased Investment labors. benefit to strategic primarily driven Investment and higher Wealth the fee and XX% valuation fees,

and in revenue XX%. was of Excluding labors, fee [Indiscernible] up other fees

year-over-year, the Assets pound. of XX% net XX strategy. cash under dollar higher the quarter, management impact to and trillion values, by the [Indiscernible] inflows, US million influence driven of reflecting X.X totaled In grew favorable British and versus weaker market the LDI third high

and grew Investment income, long-term revenue and business the net by of the higher dollar grew revenue Management negatively highlighted, Todd growth consecutive primarily market inflows strategic and equity As benefit by performance by now equity U.S. weaker X values, investments XX%, of seen Management primarily basis and gains and higher quarter Celator's market products. fee. Wealth value. impacted Wealth higher driven by points. has XXX into driven XX%,

XXX year-on-year. outlook about I results the with remarks reached the conclude remainder a for Assets few the the of shows [Indiscernible] billion will XX% the of other segments. of year.

and And lastly, we the X%, up we tax to year be quarter fact we given of have regards then that continued the for basis from management our deposits about we across be notable exceeded that effective the XX% points On Cherilyn XX% approximately excess ex-labors continue with quarter guidance in in or the to the target given excluding excluding closer open momentum compared to be we third in forward on that, return based on year forward our buybacks, to ended rate line X.X%. our expect intend XXX% the the based expect quarter. earnings third fourth curve expect (ph). Also, continued be capital Our well The expectations, NIR XX leverage. given recede expect of to to also expect the regard for above once to waivers, curve, for Operator, in of the time, down on fee shareholders With please we waivers expectation strong excess fourth questions. can With you to full our the for items. in capital roughly and with quarter. full up to XXXX. again generation, continue over remains we the growth you And current the to to we year to fees using to fees the expenses, line franchise, quarter now

we ask reminder, follow-up a question. you limit please to question yourself one one As Instructions] related that [Operator Yes. and

comes Steven Chubak Our first line question of Wolfe from the with Research.

Hey, Todd. good morning, Emily. Good morning,

Good morning.

terms on certainly redeployment, just deposit, guess specifically, with you Wanted unpack you're what the things to start less amortization. not hoping guidance, sheet shared. question to a liquidity, guide Emily, of I just was growth, XQ, NIR assuming the I balance and least, for and just premium off that in

Sure.

And very the especially just don't a We the that were with amortization start able see yields, that assets a very, down portfolio lower So coming some with size NIR also actually we quarter the as reinvestment off the securities excess our lower of down from the interest also, well earning us worked in we just why was that tweaks our first to with we fact mixture That And of quarter. premium third offset was of prepayment MVX slow as managed was deposits. the modestly. down back portfolio. as clients to manage, benefit reducing did quarter-to-quarter. did both third speeds

have guidance, lower there. just [Indiscernible], of baked we have the we'll XX% reinvestment pointed the in trough. (ph) year of the the down what's into fourth-quarter baked terms Certainly, kind still less a What's headwind. full of Your impact remains hit more in out full-year yields rightfully you or think I for that as

we a excess to We assets of reduction work with in further will because managing in earning deposits. expecting continue our clients terms are interest

by, for some based of third to mean, and England, respect be upside. EBITDA of So likely X the to much flat With there's amortization, forecasts that probably look, quarter example, Bank on premium expect pretty I rates and down about in certainly based XX seeing is And we perhaps, what to etc. them we're billion. expectation to rates, volatility on will go movements our by terms fourth it's quarter. it

some be upside. could there So,

year. X.XX of the to the was normal Emily. color, could follow-up billion the for speak the jumping on upward should seen for And whether about guidance outlook. on business. growth we what cost it's [Indiscernible] maybe over more of cited basis expense a a and point investments gauge continued in I the of just I you current litigation inflation is the given want number right to expense a great the level revisions That's expenses, you XQ just course hoping just expense We've to off just longer of term, expense level the underwriting be

Sure.

the incentives. well up in third our So, year, impact the weaker we is a yes, competitively higher About full-year We quarter organic investment for [Indiscernible] so obviously versus pulled is still to dollar expenses quarter, overall attributable uptick people for We're expenses between X%, split strong of growth up that have the -- U.S. call are within revenue [Indiscernible]. incremental we [Indiscernible] obviously of that guiding that and what the pay to forward. as When want an last be we X% third about to you seeing. as related expenses, the evenly the of the inclusive

to in also, a tighter third as competition was those of increase efficiency. took impact impact effect mentioning an quarter, third of terms of terms in as labor cost. also -- in an Well, in in it's are and So in infrastructure which quarter, that starting the there are in worth growth, June. of And the in merit market, both well the see we investments both

in the Second inflation year. the XXXX, middle of It's is rates. of kind I say comment we really Half well, too the in look return certainly there is we're ultimately, process, would as just the what As as headwinds out, to but to thing, point for And you're I where are seeing other jumping on of year normalized really that, seeing. the mentioned, good planning yes, the off a travel more next it's uptick early look,

offices when that. is and be the expenses as will up. office CNI to to some So and reopen return -- associated likely (ph) We're to go the we return additional with

we working say will to would there's spend identify intensely fight. I Because what but food also that as Of speak, going as expense do, always, through efficiencies. investment course, are We're achieve management. lots on and we want proverbial the to is we through the focused we continue

just cycle. if invest standing to continue will XXXX, from going be management, give modestly focused I through were XXXX. in I'm We be expense And also I would will to but the just color, on that expenses to if up some today, here we're say

so helpful much questions. Very my Emily. taking [Indiscernible], Thanks for

question with comes Wells the Securities. line Mike next Our Fargo from of Mayo

good wanted the timing. Hi, investment fight, discussion. food up on I spend to follow

And year-over-year. like up started some Software Todd, costs you were talking off initiatives. FinTech about X%

And to the just so, spend investing for you that next wondering you're results didn't banking you tough maybe and could I'm money. about and you in effort. talking fully There's delivering want a year I it's purging if more when understand think have good be trade-off what transaction payments.

color So Thanks. if what much maybe how that. some getting you you addressable to you're that, around spending market where describe think for And involve. could or total the and just have of you then going type that's

Okay.

an I Pershing think exciting opportunity So, us. for X is,

if think the correspondent really you think so investment clearer. advisor business, the Pershing, about if you about And registered largest we're so,

growing third-party growing. space growing, we're clearer that for And So, retail actually not business but now is a the And advisory as space. nearly broker-dealers fast registered the investment is as advisor. in it's

[Indiscernible], we think providing are of we in for But us are be lot we backend And business. that services for the is custodian, so, business. to that opportunity the an the integrator a we there

So, the in the been and -- it's at been it's it's but numbers recently, of XX%. [Indiscernible] ballpark gradually growing

relatively got small there's market in an to segment. fast-growing a share, so pick So, share opportunity part that, we of up we a market we've think Mike, think for us it,

for so it's why us. that's So exciting

and trying solve, X oftentimes at tools, Pershing to that challenge the systems our be have integrate across investment advisory into ability we things In they technology these if even financial banking modeling, logging private the sets multiple multiple data look own the trying have Pershing bank. integrate productivity. to, And really it, would And are about to some terms or are like a that that think you trying of activities. different will they're bunch to planning, reducing of

there's solution all there no can today tie that really that So, out together.

an open what be that's it'll so mean, solution. we architected, an but end-to-end And

amongst experience to in itself. well of so, be some advisor, retail And as will real to it'll we'll it provide in services -- And and capability digital the good class own. the Investor both integrating best a our as

So our target that's for Pershing.

other question around e-payments. the was your think I

e-payments, connect. send payment request clients is a so -- Exhibiting to we customer, we first across this this they were across a their Verizon our -- they'll the your is real-time So, in system. your payment is for And this -- a phone And clearing is come to from actually using that the client. (ph) come bill ready. now your and to houses

connect make this bill, the to make your time billion broadens the will is large in the can covering even and want very percentage you account. press you've time. more as payment real-time are payment there banks to Or in to system, payment capability market. that U.S. connect of sure that Currently, a in payments of Here XX you and your about funds more the a That when the that got make set made real

So, and we in about significant designed. it's market prospects capability interest an got some, enormous showing we've XXX got the we've

Okay.

opportunity, opportunity. Pershing heard initiative, I X, big big if you So, correctly, big e-payments, big market,

decide the know going this with overhauls investing you've or will specifically your in back-office, initiatives, slower more be in talent. do areas should of I of are you as of done of What these these generally, spending that? and how lot sort or a funding overhauls tech terms in So, far as you take faster lot

infrastructure the our few past spend you as been growth to the support years. in was dawdling looking A resiliency that, to certainly as pointed and infrastructure lot we've out, today. of over no, sounder drive of and tech that -- We we're you (ph), Yeah. increasing

in that the from number we've talked and of the [Indiscernible], we've piece it. kind software so dividend about we And AppDev the of reinvesting -- that, that are the a

about Wealth management using operate Investment our our Platform a wealth in to across clients digitizing bank. activity, for Corporate on we areas. developing So, things categorize to We're just it got I into on Treasury, three Analytics our but kind talked is we've We One, the digital in invest Management. continue own two, Pershing our things deep smart of some talked network contracts we're and very and on going Data initiatives? capability. in for Trust The we've in

increase businesses, also mean, to are infrastructure So cross to I cyber continue to risk cheap invest and the just about technology. need we we on is we're ongoing can we our of not we when the then efficiency And continue and looking for actually be There invest things and number and management. inventory risk of defenses core [Indiscernible] our to And There efficiencies And data requirements. out looking -- focused We're side, with Cloud Regulatory liquidity also to -- some requirements modernize when we've doing continue it what number across go well significant Company. will always up. of through them we them. I as -- lot to think do as some a in that reporting knock to conversions there's reduction. significant automating we're as requirements our resiliency. and the it's it's complying of the a app. manually, out on in

of or So Treasury putting Services, this. -- underneath payments very app even we're we're a our all engine putting modern

--- our the lot next increase are spend the of our technology year. to there of come a is intent some costs. are it a good but lot news is So, with And opportunities, will there

you. thank Alright,

question comes the of line RBC. Our Gerard from with next Cassidy

John. morning, Emily. Good morning, Good

Gerard. Morning,

Hi.

think you XXX, you XXXX of can deposits sheet and look you I size today, balance the go your can billion Obviously frame you finished pre had balance then call billion. back your of we considerably about -pandemic out to guys [Indiscernible] when had Emily? the higher it's assets of and it's quantitative XXX deposits sheet, year-end, let's might Todd, -- forward. XX or kind When it, of go assuming finishes like you what for by next as easing, definitive summer, us

shrink think to year-end Our out, start you'll we should that ever that size think XX Not level. balance you'll to pulling get But of down? deposits customers to the about of be you sheet? falling do going continued the

Todd I'm in. and that happy can take to chime certainly,

rate still So, the also in levels other etc. around more XX% excess environment. actually, core we of deposits have are XX% think we But [Indiscernible] normalized up receive to growth the now, eventually they deposits will given in about just our way probably a are overall and

is up. in and successfully. about deposits XX% very been looking at excess managing think it growth the I way are those And the we've core But deposits the to the certainly also been we've is XX%.

fourth particular with think or clients targeted begins the very So, at our off taper a And you're and will probably of in XXXX. the stage led I a multiple in they terms be at higher expect to hikes to on from occasions, I looking point excess those the if Yes, balance we would to deposits core taper what XXXX here But to it's beyond Fed we itself at degree growth deem way, the see balances. of working a we of of all in to soon, deposits. where on the for alternatives when help pursue that think sheet decline Fed speaking was think putting does that of all the that quarter terms and it what than we actually only in is

if lower picking [Indiscernible] date. memory little the an than a right date And serves [Indiscernible], you're think actually end was my me that averages bit It I was were that.

the amount and sitting So, -- 's cash And But to, start we're point, Banks. less certainly little starts the excess that's excess. thereafter? will as taper. a probably sometime pressure, there see It coming starts why we for is on probably to off growth Central so a significant Emily will Fed of at to when to deposit much

end billion They just repurchase The next pointed memory. at guys a year. is, quarter, I billion question of have of and think quarter, Emily you period out, this than the $X that Todd. a correctly, amount for $X expires share had Correct, fourth Good question, I recall numbers. the follow-up the if you very robust guidance were program as

ratio you that the prior capital reach permitted, is termination -- consider the the before would would you termination, assuming, it buyback to use billion re-upping you your up course, re-upping consider all if $X If of you date.

The the things for more if answer, actually a made Gerard, stress capital regime little think you has flexible us. about buffer

continue will to board more. excess come so back the for and that we've capital ask likely that we we the accumulated we're capital that And the to certainly to to, buy produce recognizes them position and if be back in a

So, the answer is yes.

you. Thank Great.

from next the Research. Our of comes line Mitchell Seaport Jim with question

sequentially morning. some and flat have issuer typically just good service seasonality. were you'd Maybe on fees. They Hey, one

think corporate how any some expect that the Trust Should side. side, trajectory on business do in detail we you Is the Just about Corporate I some we and be just XQ? pushed would mentioned weakness more great. rebound quarter think that out? in on the

Receipt you services, have issuer two Depository as [Indiscernible] you really Sure. and Trust businesses, point out. Corporate do

next that the decline Trust, see a well. effect the Within even really resumption top probably or that decline on be public that full business the of a are things the the so uptick underlying reimbursable and also, actually impacted reimbursable that was saw is issuance two we'll XX our both activity, that Fourth slightly any was revenues. we really units. Quarter, definitely third expenses, there was started One up of mandate activity the we pass-through. the on impact decline. offsetting expenses. quarter. adjusted a in And -- And PTI. got does and a normal also have in revenue In another products dividend [Indiscernible], see ultimately quarter. in the in small that Volumes impacts Corporate in not Trust, a million We've for Corporate really performing there so structured discontinuation sector in of And actually in But were quarter meaningfully, in whatsoever this third in

pushed just those nothing got no, into It's But XQ? Okay. issues.

Yeah.

Okay.

the payments business. on maybe Just

it's think I interesting an push.

Treasury some growth You've already in Services. had

growth been accelerating just a So late. could bit you little what's driving the maybe of of talk

think and expecting first thing? from like I be type about advantage deal and others these early too what we between I first simply the it possibility that then Is do could new a be as Verizon the banks? this from potentially think initiatives. you that is little anything guess initiatives, Thanks. from business? think you how guess, the newish to And I revenue it's mover just advantage? a And a mover defend the the being merchants being intermediary the standpoint

is to provider. for Effectively of business doing and through -- digitizing we're the for it's cheaper and things This it we're their that so in couple the these electronic payments. we're collection experience. lockbox what We've faster there. And converting a is now been Yeah. is requests

utility per unit So, in the the so float basis actually other cost items. the you cost is And case, your reduce for them also on this dramatically. and a down to

think we to usually their So, it's advantage.

happen a of not be going to relationship continue have That's so [Indiscernible]. we provide complete So, component can and can the it, we the Paper's away. we collection solution. going to

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deal In something can grow? to how the It growth. big terms little a this could of little add possibly bit, organic move a our

a it's little tell. think early I too to

but I on that excited We up [Indiscernible] reasonable just with lot that that are a we've pipeline, about relationship what a they got interest. speculate of not could pretty stirred prefer Verizon. the We're to be this certainly got we've And point excited at

Thanks. Okay.

of from comes Hawken with line Brennan the question next Our UBS.

questions. here. X% organic for like nearly taking you my really that robust quite made really growth to guys have you Todd, quarter, Would which that revenue Good to morning. rate fee the reference in explore seen growth Thanks good. is core

for or I Do So your said is is it year-to-date in expectations the it much to in possible market-sensitive. that break How past activity XXXX down from to components, your recall how think different seem organic? came. you of business the volume-related? of the that half Servicing and much you've

composition? we to the color it when way the market think give that still about some Is pricing on possible calibrate the impact or to is So, dynamics? right

Brian. Sure,

So, what I all, as describing you help should first probably organic. think of understand we we're

So, equity interest we to do and rates impact the markets. try market take out the for

came for Deposits for cash. right example, it, example, adjust, all of of because to this are very activity try market of that money also large very We of the are for excess cash. excess large some now this because unusual funds

waivers getting is if out fee our growing, some in So, we And than because that us minus revenue higher to organic we significantly about -- the knock what look all the of out tried we growth knock because when calculation. of -- we're growth talking consideration. the when growth that's of of of you our at terms benefit market get that

And seen in like to it. seeing stronger so than numbers get years frankly, out for you once we've -- or year, even past. all negative. knock X, our this maybe the of but was is ago we're X.X% for And something actually what which march of areas X-years slightly So, want much that actually the through where this to some probably we're you

And down [Indiscernible] just it to very really break clearly.

the is of growth So, this X% was that X% of waivers, a impact quarter growth organic just ex saw the about dollar. year-on-year, was market, and was impact just weaker market [Indiscernible], remainder [Indiscernible] in we as was XX% U.S.

the In organic that X%, broad terms of growth based. was in it really

at mutual we when purging, you growth in new fund I balances, think talked bit continued and net assets. accounts, look clearing a So, about

they but within were we've backdrop, both wins XX% up versus business, last year-to-date Treasury margin payment Treasury Servicing, and economic, of terms mix activity. In good shifted are in be new Asset Services, terms really and year. of higher of also stronger on In Services, business. net the a in we saw that product to the what back stronger growth And macroeconomic also

but that too in speaking that investments made. the significantly is market, a too just that growth is that In FX business. of platform we've of in based just that organic FX, volumes in the to So on lot up were some

really it's broad-based and So, strong.

for when that? we like the to all currency Would I to that think the or be which in also be a the had that growth bit about base to than could very that. the questions modest litigation And decent to -- significant for color. when but of modest on year, that that? back about Thanks. And a you calibrate is to early And it a if And constant a Thank there that excluding you build had? would XXXX think said Is I'd expenses next more I around you it's explore we your off Emily, is guys talk Excellent. size some of calibrate, on us? of. that expense Like, way 'XX consider XXXX, expectation modest, any growth is you you so, basis? half that few know

So, to a its in through really we on speak. planning the -- early process XXXX. as terms entire comment We're obviously going bit of

I year the did expenses back half that the making second you're of investments As seeing in this on are that structural. uplift of mention earlier, we is and the the

into that next really be So -- those baked those are that will year. and permanent

more mentioned, extra A a office. As said, some are expense we're starting I We're headwinds. likely also go [Indiscernible] pressure. associated with return going and there normalized, bit the to I inflationary Like to of see to return so up. think of bit we travel will to

going course there efficiencies. to headwinds be with we're of looking to in that are So, offset off-sale

up So, on modestly up. number this I be line actual will be this on just next wouldn't that's They versus year want the to it. full put basis. top an But year. modestly will expenses for I at year And say moment, would

And we the Brennan, adjust would litigation for reserves.

Yeah.

part wouldn't of consider we the base. that So,

non-operating should've said sorry. that, Yeah, basis. a I on

And I tailwind know -- just guys a you to be know I headwind it. Got it Because year. FX this year, follow should FX on for next up that. a was

depends on -- where we're It

depends. It

strength, which bit neutral a to of Right would would create an now, tailwind but be the little pretax. expense dollar showing our it is

Right. Fair enough. Thank you.

Our the from of next Jefferies. Usdin question Ken comes line with

act growth levels. and underlying net Servicing keep Thanks. you just core just did Servicing. to wondering if Hi, if like, see good waivers mentions what quarter you by lending and transaction versus a little wins you deck of asking It activity act just aside Wanted Asset Asset type the talk new on to market the good aside business about can start higher collateral and morning. did bit how how more fee and the help sec did understand both really sides? I'm us we

Asset and Servicing clearing don't why the Emily, can business rest and take -- What the you I the the space. take collateral management of

good saw now. for we management clarity collateral business as in and we growth have the a while So,

made I In the in points of my remarks. fact, one

collateral saw we $X -party exceed trillion numbers, quarter. For numbers in our the the first time tri management the

innovation paying good that is to a growth off see continues to got global there. the bit attributed continue management That on to collateral we -- the be profitability we've So, growth. there. And strong. paying the

and thing phase of revenue over-the-counter the it's transactions And we but do be a a our seamlessly to and of Markets five starting to teams business, over-the-counter bit of And to six other doing business. The we're meet and onboarding number margin little this a did that's an line that. to we're in add out of there. requirement our really derivatives of significant management margining excellent for that job the requirements Is of players. collateral

to continues organic business underlying to look overall, healthy growth. and pretty So that show continues

rest want Servicing? to Asset You the on comment of

Sure.

in Servicing or just you or think our in sorry. at, Asset about our growth just As and about fees thinking the

from About half Under growth Assets was year-on-year AUC as About through as just of of when managers. existing truly and both clients, investment from Our about by a half XX-XX. that Custody up And XX% clients that other well market driven driven by where XX% about spot on new basis. the they're thinking probably growth of split it is from a we're growth. seeing lot

banks. Another then asset is really And alternative both owner’s and and from the XX% space the space. it's between or so the split broker-dealers remainder

was stronger So nice pipeline this seeing we're is that's at it and than year. where uptake a period last the

just that out quarter. Great. expected more from deconsolidation you expect, any? Thank my you. quarter the back in to you understand And last that you and still third said about much million of that $XX you if the us you discussed. a Business much just Clearing impact were is was coming how had the help already how Can follow-up on

impact originally just due a about to business to due that of we -- of expected had M&A timing the wrong less. lost the the was side is a Encouraging Sure. that lot XX on million being

I fourth the see third XX We'll the be quarter. uptick will quarter So, full impact. about about between million as the would the think it and

Okay. Got you. it. Understood. All right. Thank

Our Bedell the next Bank. line with Deutsche Brian of from comes question

been just Great. much. to maybe Most very couple. asked, my morning, but a folks. of follow Good Thanks questions have on

to onto X%. Just obviously the now, this well, really, back from going tracking close to is zero - going organic ish growth, really

into But these number? given the you revenue following are how X% do do you you to the you have Does then So about Pershing and in you -- Technically, that you -- -- that rather you -- aggregation that optimistic aggregator continue on or thought, -- current process through, think seamless the just So can improve their you custodian and XXXX on early. would disintermediate that make too sit a are the of And top that that custodian custodian? in one initiatives just technology of that into to X. the require have current becoming system. just -- it upon that services. maybe

Okay.

So probably question other. the X think handle will be I you the But why Emily, multi-custodial. and can I Pershing don't then, the project Pershing take

our the be to will but is. business, love who [Indiscernible] be to we'll be capabilities course, of working longest the to these on term probably investment. the of Pershing And of have regardless to is So we right in actually -- we'd now. particular that this capability -- able a I -- must is were provide have custodial going custodian I And particular say,

three think we've that really a revenues of this, for expect or that really years in want investing the I see two talking we So, --? start other the business, Do and future we you the to we're before about probably to more Most ones are out. been little that's near-term. that

to certainly probably growth the of year the we've in the that momentum would hope year. for seen organic organic expectations this But certainly, middle the really we on comment achieve planning we're of soon Again, next growth roughly next really specifically year. with it's and pleased process too Sure. to so we're same amount

trough base net I And Great. Okay. downtick they're but knew XQ. on NIR you quickly a Emily, revenue to as [Indiscernible] slight I if XQ you about not talked sure or XX% if versus the referring and then the guide, interest you're that I imply XQ just it said does in and that right NIR wasn't sure had on down XQ likely in here,

Yeah.

moving But imply a of about to potential I are course, Like do upside said, rates very tick you down even than quarter. Banks the slight moving seeing earlier some If a X% fourth math, from time. originally Central X% thought. the all we're in -- the would it

last based forecast, and on slightly down, it's that's think there we potentially will it the flat. some upside So but be hopefully, is

you. Thank Great. Okay.

question comes Autonomous Rob from with next Our Wildhack Research.

wins greenfield guys. growth One more from of I opportunities? type on organic can. say, versus morning, coming more How Good is competitive if much that

You want to take that?

sense. makes That

Competitive wins versus Greenfield.

new of we be when certainly, new we call completely our clients, business entirety -- when wind existing from new as at as can what wins look It business were So the clients. both business. of from well new new

launch business funds, clients. course, So with cetera, et business, new as new that's we're still always on clients And of existing obviously retention. very, it's new very but focused

So, we're being, having there. the it's business out still competitive it's competitive, and already

making from sure we're we of incumbent. we're those retention So, retaining new terms that we're retaining existing it as breakdown that When like of about in already already about, the it's business. just that deals you look at -- versus XX-XX

out competition and As and think we're couple been called against you've the the that today. your a point, winning we're of -- to I ones definitely

had capabilities service administration. was One ability a the broader a of to we set to different addition provider, the of alternatives do spaces in the that

over want of So, we over of quarters. business. the We couple couple last last won a businesses large the takeaways, that

think delivering. ratio So well service we've as as we've been quality them, our but leaning lose now capabilities toward we of that right our the is and got win-loss the occasionally that's competition because versus we that side of the the

in to continue opportunities to do retention, can just how's And stay kind retention improve you then the on the things to thanks. rates rate? of how or retention trending? and Okay, what --

of Our there they're are disclose, excess very and and so don't trending high we rates XX-XX%. certainly but upward have in retention upwards really been trending well

out. -- first foremost and first that's the the how is, you performing of day performing to thing of bid terms the what even, I -- and the in And until right retains. say kind day and client to just -- is actually would ultimately basically So, in service gives well this

our help clients, with bring on and working More manner about how really firm to focused at the strategy. and and of operating the their And we model it's to consultative clients, in to then, So, efficient [Indiscernible]. to that. we're of -- the them get more and our challenges, we're with create understanding our course, looking of a their solutions their issues, intensely can to talking more, entirety bear, their

both a consultative being and day-to-day and -- with clients it's just in our in strategic not capabilities and our on our -- the with the capabilities the and competitive, client very, ensuring a edge our products good and and manner. then that So, our working at are but also working leading both only

Okay. Thank you.

Robert. Thanks

Instructions] [Operator keypad.

with Our Brown next question comes from Michael KBW.

the Thank All curious your of just was a right. operator. comments year-over-year Not was on I sure and move quarter third the Emily, second you, dollar. expenses in saw, and given versus you strengthening from given recently if most -- the the in sequential dollar what this, that to quarter basis, gave the the we was guys impact I the revenues just move but the that in were

equally don't it good top news of the match. the that we're I off have I my Off gosh. actually top mean, but, can't head, Oh, pretty of my -- the is head, I really

have in -- offset well have hedged. are expenses from you any PPI -- revenues headwinds so from equally perspective, revenues pretty in benefit incredibly any you any So, a is in or much

Right.

Okay.

it's the of in X% going of the expense base. to ballpark But be to X%

Yeah. Of yeah. base, expense the

was And and Okay. three sequentially, there the last lowest a rate quarters. a forward? reason slowdown the what's of expectation It's (ph) in loans, that's The year-over-year. just seen loan this And then the there just on Any book, quarter. the particular up XX% X% average going growth but bit we've

mean, I point out. just So,

by has book loan Our grown XX% year-on-year.

loan very the been portfolio healthy over growth in has there So time.

they're quarter more course, a actually some up spot healthy see on loans are Of billion. XX than be We lumpy. did basis to growth one -- in can up, growth any

focus an facility. And do area capacity feel and it's what certainly, we to that's that very growth We're we're growth looking growth seeing -- of in do collateralized portfolio proactively growth is we a terms think we've cost in in and our lending wealth. we're certainly so. term in in loans, got capital the we of more in grow securities margin of loans to certainly seeing demand the in loan also financing cloud have, Some and terms we're

Great. that my Thanks clarification. for taking Thanks for questions.

Thanks, Michael.

any question-and-answer now remarks. to with conclude hand additional back with the that does would today. And that, our over or for closing Todd I session call like to

out you, you. Thank for everyone team follow-ups. Thank in No. for to your interest obviously, any reach you IR Marius and can the

conclude today's webcast Thank day. This at a X:XX webcast. you. Eastern BNY Standard of the and this Relations will does A and Time Mellon great conference Investor Have replay conference call be website today. on available PM