The Bank of New York Mellon Corporation (BK) 18 Apr 232023 Q1 Earnings call transcript

Good morning, and welcome to the 2023 First 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. Please note that this conference call and webcast will be recorded and will consist of copyrighted material.

You may not record or rebroadcast these materials without BNY Mellon's consent.

the Investor to Relations. turn Mellon, Merz, now of Head will call Marius over BNY I Please ahead go

Thank you, operator, our first and good morning, XXXX call. everyone. earnings quarter Welcome to

can our As will website at Relations financial be our found highlights page always, of on reference presentation, we bnymellon.com. Investor the which

Officer; the will Robin joined with will I'm Executive introductory Robin earnings then our McDonogh, remarks President Vince, Dermot by Dermot take start through you Chief presentation. Chief and and and Financial Officer.

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

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

on today, this as not only will and made April XXXX, updated. speak of be call statements XX, Forward-looking

With will over to that, Robin. turn I it

and Marius, morning, good you, Thank everyone.

the turn serving a to this I our want to Dermot I environment. first update Before how results, an broader over financial up as call and complex clients stepping on some review provide in to perspectives our we're

start distressed the Europe. Following the benign bank States in unsettled government saw two to when in relatively year, prominent failures quite markets United a and in bank a takeover March, broker were we

rates to uncertainty remain While with to march weeks, over of and inflation, things policies, ceiling we elevated. continue another the have decade the calmed fights down debt standoff. And of quantitative over associated interest after with monetary higher risks somewhat and together the a past closer geopolitical couple domestically, zero rate against tightening, interest tensions

well-capitalized sheet, resilience lower of a the in credit combination it's platforms that client risk the of backdrop, that is our strength this the bedrock BNY supports franchise. Mellon's Against reminder with highly liquid balance our and healthy

our clients bad. legacy in weeks our recent liquidity a industry as storm the that nearly good clients and periods and for the helped time rooted our times resiliency navigate client up and years, of have balance built we've and to in we've with been trust We've different broader been a stress over strong in markets sheet no in For our of solutions. through XXX volatility port

After seeing liquidity slightly and on And the clients $X.X which cash deposit behalf manages ended than options events, quarter it. growth higher market channels. started trillion following our worth we our where we investment increase most across platform, other balances recent broader of has seen over short-term of

participants stringent including States as stress asset largest to recent a financial in we the as requirements. critical the But broadly, capital, United events the stability concern a banks liquidity high banks and held one of importance G-SIB the we of and more of to and health robust and some highlighted management led liability are testing for around as they've the all hold ourselves have services and standard,

capital, On in losses are our ratios. unrealized securities to reflected already our related available-for-sale portfolio investment capital

higher been for for the consistently have in We now a that market little their be would a of available recall, maintained pricing rates will while had rate investments we've securities the And as sale. as portfolio it. view a terminal than our has you majority

over liquidity so, and portfolio. profile risk of we last enhanced and meaningfully the And reduced the X.X duration the the years,

such liquidity year. risk flexibility Together, changing the characteristic stress to as resilience And beyond management also metrics protocols and showcase us the move actions we includes It limits that power stress our and diversified regulatory conditions these testing liquidity as provide through liquidity, and ample lower-risk requirements. our model. of of periods framework business on daily is that concentration go these with adjust to robust market our

clearing activities substantial clients part provide of and cash support as the services. services their corporate institutional large primarily business management, trust We collectively to balances we that's us serve deposit maintain who with custody, whether

As of set of and derived lines. deposit a operational from sticky nature is base in business a diverse result, roughly X/X our and

various earlier, as trillion and tri-party short-term just example us role investment to increased on around alternatives. money which allows globally, we $X also the to largest lending, liquidity retain And money which $X.X securities mentioned to And is provider comprehensive it of ecosystem. deposits, a manage funds, of our over I services trillion broader is collateral moves we're market our cash the repos another our quarter, clients behalf the across in average of balances connection this of when how

to in quarter. the our performance turning financial Now

earnings up was As you up notable reported delivered the can our year-over-year solid primarily last XX% $X.XX, per items, on up see Page results. of of Revenue we excluding in or year-over-year. first X XX% financial We year. presentation, share quarter highlights of XX%

strong expenses, note We on closely as year-over-year, to focused and unchanged and and moment, are return X% regulatory XX%. how liquidity generated we compared a coverage at up own remains equity that above common of And leverage well quarter, the managed our capital liquidity our management our buffers. X the Tier tangible healthy in prior ratio and requirements I'll well ratio as given

a I'm around to the we the on Company for by moment, seeing deliver back encouraged in January. are Stepping that early progress

First, curve. we are the cost bending

expense and core cutting growth XXXX basis. a year this Our first quarter than by we better currency in our on half remain our expense to initial marginally firmly growth plan constant to roughly came compared internal committed

our growth for with healthy the net Second, revenue. in line year, we continued in derive interest outlook to

on capital we operating of And returned repurchases. positive meaningful including we of a delivered year-over-year $X.X Third, amount basis. share our fourth, shareholders, billion common to a leverage

XXX% same currently to to to albeit at We've back return stock, our to expectations. we short buying time, uncertain environment. shareholders of than At made continue expect earnings given a it XXXX, call the slower fall is pace in of the a as to made we and good promise on initial it when progress plan I've our you more

be lackluster. fees our And candid, to was flat somewhat being so year-over-year

time. designed drive to that us this help Having said quarter and trajectory are over number that, fee of there this business growth were a change highlights underlying

a line drive to and Servicing, remains improving Asset I'll more pipeline strong, is profitable In the so growth margin price call increasingly few. the the new in business. on on And holding deals we're as out the

up across all in in in outsourced trillion this were and and is more investment that our data see In management business platform AUC AUC/A, than we business. and announced annually trading service orders pleasing increases our with to January, wins activity launch powered our quarter. business for measures healthy platform with already volumes executes a ETF by of $X the flows

clients and focus multi-asset costs This can service global reduce trading to help alpha generation. their on

to trusted, there to here is While market. opportunity still front capabilities un-conflicted office the think way days, offer trading significant early in we a

healthy Pershing an of organic a new billion annualized net during assets total quarter, record. representing in $XX and a mid-single-digit quarterly was brought basis revenue the growth on

Mellon, and our Pershing in offering. strength as BNY of the choice the As product the current In appreciate recognize a of part and of also source marketplace. flexibility environment, clients stability clients

team X broader progress Meanwhile, as make for aim our Pershing to a summer. we continues great rollout this

Just with collaboration more our clients faster last X analytics week, to Pershing a with operate their so and efficiently. powerful Snowflake announced we they data more prospective digital improving can provide experience management,

management the finance larger market elevated, Collateral increasingly as activity via given the and inventories tri-party. volatility dealers in Clearance remained and

as types expanding tri-party our management. global the from by across EMEA investments the collateral to see and role new only markets collateral connectivity provider into continue new and platform increase growth that pools, and Asia of made our reinforcing We truly trade market to we've into

the Treasury Services towards saw trade client payments, digital finance deposit wins end account broad-based dollar, liquidity products quarter. delivered the also FX pickup nice across growth and in U.S. of and and operational a and

and Wealth and mixed although fixed by income Management, Investment performance outflows were our solid, remains offset AUM investment strategies long-term in other LDI flows partly strength strategies. in with

last During range growth risk-rated $X multi-asset back the AUM. billion in And future the the to U.K. Bold support share five launched funds our class, market. raised we the funds, Newton its which quarter, year, has in U.S., in manager U.K. first Dreyfus now sustainable investment retirement over of introduced legacy

In I'm successful summary, weeks and risen front spoken on client-focused our at client these platforms, culture past I've as uncertain and resilience occasion, build. have our in times. few enable recent over the as for clients we responding in the scale people and can of to center powerful also outcomes has commercially our working tirelessly a been to proud our which culture trust foundation that about combination months,

this view of make key out as the to more culture diversified I client-first our adjacent businesses. of portfolio

and Services largest While trust client the proposition. from and custodian Clearance the Collateral differentiating are Management, a Issuer world's are bank, our and we contributions Treasury Services value in Pershing,

Dermot, call. let officially welcome you. his Dermot over earnings to that, to With first me

the first start additional here, our for the introduction, forward to privilege all. morning, you, to on you with of be the and on I results Robin, presentation and a consolidated financial Page in X details everyone. some It's working Thank look I'll with quarter. good

was lower year-over-year. fee which stronger as year, and November by notable Russia. being related from value, significant market closed revenue were Alcentra, absence last item waivers revenue last to reflects flat the of year up fee billion, Total and of offset XX% dollar $X.X a in in headwinds improvement the a sale This

values real X% custody of lower stiff and under a $XX.X Growth translation, our and/or testament assets the trillion Firm-wide and market than diversification clients currency from existing from administration the and of headwinds year-over-year. strength to by increased new more franchise. offset

custody and/or Quarter-over-quarter, under increased X%. by assets administration

decreased under by of Assets XX% $X.X trillion year-over-year. management

by was tempered XX inflows market assets months. impact net the stronger management lower increased Here, Quarter-over-quarter, the X%. the of under dollar values and by over cumulative

revenue rates. treasuries. year-over-year, and quarter of Investment volatility by and interest included strong trading higher million, XX% elevated was demand $XX on for of greater And interest net fixed other the another increased revenue and reflecting back primarily income U.S.

by by the were partially for merit investments the macroeconomic dollar. the the the favorable impact sale Alcentra. savings stronger were forecast. The $XX of losses largely in higher Expenses increases driven reflecting by of and the expenses, and and And provision inflation impact of X%, impact in credit million quarter, efficiency up offset of the was changes revenue-related offset

share excluding earlier, year-over-year earnings first up XX% quarter As Robin XX% notable year. were up last $X.XX, largely per items, the of in or mentioned

XX% on and reported in equity our XX%, tangible the common return was Our margin pre-tax highest three years. was

X. and capital liquidity to Page Turning on

well our to continues above to Our Tier ratios X was earnings repurchases quarter CETX flat shareholders, of capital our $X.X to target. XX%. strength of capital sheet binding billion and capital our essentially in our maintaining return management $X.X The constraint, was be and common billion common our of the more leverage regulatory generation quarter-over-quarter, allowed ratio, share above and including stringent ratio our minimum while X.X%, which healthy our us balance

XXX% prior in available and book late enhanced on franchise. ourselves for sale Similarly, well-capitalized the liquidity 'XX the securities cornerstones consistently was of lower and risk of strength risk and our our Starting market of the over interest changing of 'XX, balance liquid, compared credit of coverage reduced one duration while and investment with the for profile sheet throughout portfolio, flexibility ratio we is also and liquidity the unchanged The position and highly keeping at to rate proactively with XX% our quarter. conditions.

sheet deposit on continued clients ahead. the of basis, year we strength we declined up ended in was the levels Bank banking Central beginning with typical and and in followed deposit tightening expectations, our quarter Between moderation sequentially months balances increase swift a the balance early recent X% during This both the turmoil hikes the in this the expect continued balances balances in as saw March, quantitative We line via sector. a with rate with of of tightening. deposit in line seasonal period-end considering patterns of and but by deposit our

yields interest of net assets, trends This quarter-over-quarter. on will the partially and underlying was up to X% interest I funding terms. billion higher on $X.X sheet by balance on costs revenue moving further in Net Now on X, and increase sheet sequential sequential which describe size Page of revenue higher impact interest-earning mix. the reflects offset balance details and

it on a is line projections in that, realized were in average, for Our volatile quarter just rates clearly markets, quarter. the rates with our noting very worth

driven to compared outperformance was our expectations prior slightly lower-than-expected primarily by Our deposit basis.

XX% was to average X% by total that, historical which above Noninterest-bearing Underneath deposit and portfolio quarter-over-quarter. our to represented range were XX% balances On averages sequentially. a interest-earning down of environment. repo reverse XX% deposits flat. in balances, based normal loan assets interest basis, continues deposit securities X% decreased on and by rate decreased X%, of Average long-term our was balances quarterly cash be flat, investment

expenses Expenses to X. year-over-year. billion, for quarter $X.X X% up on Moving were the on Page

impact As of in higher dollar. offset efficiency was of investments Alcentra. inflation expenses, favorable and by the savings the partially revenue-related mentioned largely merit reflects sale earlier, increases offset impact of impact and this by of the the stronger The

and and bend occupancy executing as signs to urgency, with cost business about savings of in our determination it the and to net meet year. the help quarters our professional, positions for progress discipline the and delivery goals line. Robin quarter purchase us our legal services, good about first the We has for coming curve. been development other our We're efficiency how in you clear feel can see us in our

segments. business our to Turning

with Let's on Security start Services X. Page

As Securities in & for and Services on I press our Services Wealth discussed our described of earnings services I segment, comment fees the business release supplement. of investment line and the performance Market will the financial each

the was business net In Security Services $X.X of Servicing, activity emerging and than volatility by more benefit a was up was net fees and X% market X%. Within as the revenue client offset offset lower reported revenue XX% stronger lower values, FX decline new Fee Asset by revenue and the down by total services of investment impact up than volume revenue XX%. billion, of year-over-year. decreased was up waivers fee higher this market was more dollar. interest in

fee Services, increased in largely In XX%. money as as to This fees Russia services increase market Trust. lower Corporate waivers well reflects Issuer by related absence last the item investment notable year of the

revenue X. Wealth interest revenue total Wealth Fee increased Market reported Markets Services was on XX%. of $X.X by XX% up net and Services Next, and billion, revenue up Page XX% & year-over-year.

up quarter, clearing year-on-year. were in primarily client the driven active assets In Pershing, a fees were X% XX%, Net accounts average fee money offset billion services waivers, by abatement $XX up new partially of investment were market activity. lower the healthy and by

U.S. Investment Clearance were Services, Collateral fee government waivers Services deposit money lower up and for net of fees Services offset in by clearance interest decreased noninterest-bearing credit treasuries. continued Treasury slightly X% by on balances And higher partially new demand make and Management, largely on and higher business. driven the In Investment volumes X%, back earnings rates, used reflecting market fees by higher

Investment Moving $X million revenue to opposed down Management on the first down was Wealth and and Investment net as capital XX% losses to and total XX% and year, primarily Wealth gains Fee revenue Page of was million, year-over-year. reflecting year-over-year. was in quarter Management X. $XXX Investment XX%. revenue reported last interest on down of in free the other quarter revenue

Assets decreased management by XX% under year-over-year. $X.X of trillion

cumulative net stronger saw $X As decrease reflects I earlier, In offset partially this net quarter, impact products. inflows. the mentioned dollar, largely the long-term lower unfavorable into the we by inflows of of billion

healthy inflows inflows also of our $X net our into strategies continue see billion, $XX We to into income LDI and saw we billion net strategy. of fixed

we where clients, our number In cash, inflows outflows of from offset investment a small continued strong the performance. on back was of this expected healthy by

dollar values the the money Investment Alcentra, stronger mix fee down year-over-year. partially of waivers. cumulative revenue In of and the the impact inflows, This was decrease lower reflects sale by of lower market Management, and net offset was XX% market

was driven segments. shows down by lower the XX%, down million $XXX results values. Client values XX mix. of by in year-over-year, the Management, In X% Page of market revenue market was Wealth other product driven and assets changes lower primarily

in a we're approximately net 'XX. unchanged. at of close on our in currently I'll with year, year-over-year short recall an based full you From for rates in we January, March how earnings for remains comments forward call about thinking the outlook year, will projected financial our few revenue increase XX% last that end the the year basically on implied interest which interest

dock know, rates, to all market plots. rates forward you relative some significant suggest volatility fed As see easing currently we interest meaningful in and implied markets to continue the

wide tightening flexibility uncertain. continued remains to We impact to ample interest liquidity a the volatility and outcomes continued ultimate and of range for of as respond have rate positioned ourselves retain

the a of interest net to And is for start quarter. off in forward based implied XX% in outlook We're on upside. we our first rates at March some the skew with to realistic believe end interest the good March, growth revenue still year-over-year

rates year-over-year, foreign assuming basis. expect We a on still by be X.X% at items to of constant up approximately end expenses, X% last the year exchange currency also excluding or notable

in As this we determined January, deliver earnings said positive leverage year. our on some call to operating are we

continued and in as the buffers mindful current especially XX% the tax months share the rates effective weeks amount environment, will relates we ahead, an expect time as in pace of we so uncertain we're operating the rate the XX% uncertainty our still and of be and to to range capital of We and interest maintain continuing calibrate our it the conservative path in for the planning more to finally, repurchases being.

wrap with quarter pleased business to resilience made solid our strength and model. we're the challenging a operating environment in showcased the which So of financial again Company's up, once the have performance first

continuing As help are our conservatively we and are to the well navigate balance positioned are look we sheet confident we we in markets. that global elevated manage our clients forward, uncertainty to

open With please the you line that, can for operator, Q&A.

with Our first the comes of question line [Operator Instructions] Jefferies. from Usdin Ken

Welcome, XX%, Dermot. through kind as reiterated goes you through little NII, how just look you year works a of start to sequential through. implies trends in slide with To of terms Obviously, what follow the Can up liability understand on to a year perhaps your that expecting costs a and us you're the good upside. that. as that deposit for help you

Ken. morning, thanks the Good And question. for Okay.

answer, to been to and forward former well, settle partner look who the Emily, all. Relations CFO has really the here, who privilege and to I Investor transition working is a I'd in a just me and to be Before and with acknowledge I finance with and it's tremendous helped team like team real you the

of today. a We lot NII. and around very specific to to We number. versus the up a the is start a bit feel kind to analysis between use scenario we good NII did project market deposits. a little between was of mix think we've the of Look, Fed we where had is And kind January, there which in So January divergence with in dot was in and the the implied is that environment where back forward on to your look, different big to it question curve, where NII come budget plots.

today, If little bit color together of for at a you more there's a there's around a market and it look more longer. higher of that coming of

my about to we've skewed that. we for than of about outcomes a as in today range was feel good and more quarter of locked remarks important January. We thing feel the good consequence good a And positioned probably that, The is uncertain quarters. in look, it was subsequent We're And the in upside. this.

We ceiling debt have update come, all And we're the would that uncertainty, that know solid about. the to a consequence, geopolitical to the the feel guidance, factors as don't want you with really on XX% I but upside. skewed to

Great. then, about you're then in can perhaps how looks total a how just this it. out little absolute like I posted trends bit And to that DDAs you the of the And mix flesh a as quarter? deposit XX% from follow-up what just maybe here, that thinking go Got both sense? from, an you think,

Sure.

quarter, maybe our of of kind take of as of industry, started and happened people to in see growth. which months XX% you on terms at in pandemic if kind the system, back kind course in everybody kind March, to focus we're the look up that. of in us and we and about the tracking year-over-year step you the as of We're last a and little the X% a deposits bit, deposits if same leaving XX the And out with average double-click you total, think across else. gave we're deposits So, yield having of over I better the coming and on down the on forecast, opportunities system line were inflation the really what

part sheet. there. a the blip wanted saw to upside balance the to We as in turmoil deposits a of kind our We a had happens of bit flight for result of of our use March the a little platform. latter that to People

elevate. And so we deposits saw

and the bit we forecast, clients albeit coming quarters our the are for rest largely look they will the yield. in to our like of a moderated, that's we're sophisticated above moderate little further expect Now as industry that

point to the trillion of talked he want ecosystem we about products we you Robin's and of in and comments look, to But I services. ecosystem, his remarks our to refer where cash them a touched $X.X kind cash

not to So use while ecosystem. we they within them use deposit platform, want other our our may products

are So, year. our the and we trajectory rest of good the feel very about for where the balances deposit

And come will Research. Chubak Steven our from next Wolfe question with

wanted to strong off question the just I in start So, buyback capital some a of commentary. return the quarter. on with saw a We

to If shrinking, to key You just like was of going more to deposit that denominator the about informing temper inputs, albeit as commentary of sounded to a of on some I feels healthy the hoping you're sand most context to better think pace placed some what's noted get plans be the decision. modestly, buyback, the you leverage should you've shocks. continue more buyback. of less IV, decided, than given pace you're exposed Basel credit It some

understand decision deployment. the to retrench want of a terms Just bit pace of the in to

back Thanks I we just we'd to just of kind what reaffirm of for word of go earnings year. the this and re return XXX% which would do, is our I said the shareholders north question, to January Steven. use wouldn't French.

was billion repurchases. a which total was In million dividends, it $X.X in $X.X billion, $XXX share of of QX,

to how maybe a of slow down the lot good some There's a along, and uncertainty there. the plays bit out. macro CFO So March freshman being it pace to of me and environment is a start, came just a wanting see out

into next back but just now going months, the we're adjust we are the it accordingly. buy itself. watch get we'll and take by I of the week continue If debt couple lot watch week. and to situation If day we going see by to situation clarifies ceiling would of there and easy that things to day, a are resolution, play reiterate, and

adjustments, payout payout are it's understand, So to north you're the you just committed XXX% of XXX% making still -- but is time least the being? or at to for

Steven. correct, That's

previously. efficiency highlighted doubling the you to saw savings I improving hear in know some my for the of efficiency, follow-up you're just And margin. We the nice this that Security progress really operating had great. that encouraging Services on really Okay, year. topic

on You talked managing staying there. cost about disciplined

to margin the how wanted the think in pro where XX%, Alcentra efficiency, Investment the that there could get there you that the your potentially are particular. The plans to margin margin? wanted get above segment, XX% I you With Management can understand think what quickly sale, do the for forma your some there in you to what around management margin terms expectation traject over are just segment investment is well? for if as fairly to are time, subdued, of any plans

Okay.

So, questions there there. were few a

with can. So and I'll try deal them best as I

So, to Security for of the go years, margin kind XX% zoom if Services, yes, XX% with out the a always into double And second a in look XX% you okay? at to goods margin click that you firm, we want highest going a then ROTCE, improve. XX%. and So and three

margin there Emily higher. of is drive I figuring a that how the out The to partner get CFO positive was her with in number for years, now to and

expense -- year-over-year. have have so will that and a will plan, will off a good -- that to growth half of you will start the be that we we beneficiary that And segment that. We're noted to committed have a

months Then it go of get which And & XX a can't XX% XX% reason see margin, a Wealth we segment, Services, the XX% have double back continue. and any no is as And there don't disappointing. probably long work. we problems -- then that hard margin CFO Market into may margin you bit I Management, ago, which is Wealth into which bit Investment next which click was honest, why a to that is with we be business. a But it's lot a with

that of significant going values, year, market into a of a quite the strengthening dollar. were There number lower headwinds last

to wanted mix shift but was the a clients higher I that point equities important fee our the for message. that of the some clients are working is to them. good going to draw bit you mix and outcomes a do key Clients our and And in income, fee, deliver lower with would clients our stayed ecosystem ecosystem of from fixed shifting, in to and our to just we're there from and that's

Blostein will question with our Goldman And next Alex come Sachs. from

particularly hoping Activity level, were on markets in market money were and very it was feels funds, fees particularly At can retail, a macro I rates Servicing zone like cetera. have Asset way, gone a within strong, we Investment things lot in up. of your in Services, treasuries, Pershing. et

both sort yet of your were down all things revenues businesses So in sequentially. in wheelhouse, the

So growth what overall some firm-wide you of little the guys around that were year, I rest unpack think fees? disappointment call, look made the XXXX. to the And guess, on the comments of as just bit offsets drove the you for you on QX for a just out, I fee

Just wondering your get that? to latest on thoughts

Alex, hope you're well.

As a hard easy me to you ask a I former an think were colleague, supposed question, not question.

yes. equates number. Servicing, In Asset our look, context of that's small little $XX I to Asset quarter, think over -- way the That about look, a number kind million, Servicing of So the yes. is and the headline is a down, X%

our big I answer clients yes. again, think way of attract the questions, I've the So to said ecosystem, picture, other kind this to did in we

we those And derive clients. then within fee that, is like do revenue how from

do Some of has with stuff other volume market it to opening. is do account of is like with to of some it levels, some and it

clients context, our So to subsequent sentiment a within risk-off stuff wanting that pause, we to did out from quarters. see push

So of it. the side client volumes were kind and so Servicing Asset drove down, the really that of

the up we smaller we market for is QX for side levels, And to dividend on receipt for Servicing, got that's season. in expect Asset and there, typically from and business, pick that QX a you higher Services, had kind quarter number that. plus is it's depository that. And we'll some a if Issuer fees of us, but within at quiet And a and seasonal look

good Servicing. Asset feel about I overall, So

outlook, I as see negative as fee the on as commentators portray fee hard the situation work I today. outlook to have would We say, not it's -- to be it's some would but the not

to we're business. about goes very Pershing, Pershing look, the it As excited

and our $XX partnership commentary from X. prepared we billion prepared in remarks area, Pershing excited unfold, had with The very a we're for it going very, in Snowflake, will of X see system. remarks as about very Pershing do us. that our quarters stuff You'll our that we we're about to exciting it Pershing and is onto talked his about in Robin lot tell but the you great

of is as you. question last you of the the think colleague, some over to equation. banking former about or of that, do whether Maybe sort the and created the the Where space within share? over could think gain X.X the most an it's on that's guys Got new disruption fee months, month, easier lean in I guess that that, dynamics a into you the on you sort some of retaining that as back the might follow-up. you areas opportunities the see deposits extra side of some the came of

I'll shown Alex, start really importance discipline. Look, that. key events have I of of as a asset the the liability Look, management March think

you accordingly assets time right and all composition so sure side gets liabilities one. asset a and over the of assets. And policymakers that start start you've whether about side tailoring bunch me that outcomes we'll that is from from the digested. as That see of I'm got think you and to lesson the of make on liability right sure on your duration the number

able help and different positioned goes those franchise business, predicting we ourselves your everything to through preparedness to deal question could different critically, not that positioned well the across we this, the be we and ourselves with of in eventualities. that clients and various that so would for We're we've and business, the lots eventualities, to

that fact angles of net the storm served some of new bit had port clients. on a proud our business. of in of we're for the a we've in various We've accounts opened so, little the lot as a And

said the a be times course of use of resiliency our and our on it's combination but to are the sheet spend attribute. that in also in of state-of-the-art money like the us this resiliency. that be sure to reaffirmed investment our of then We for is lot balance allows to of investment past the few think over terms clients platform. of to I that in able investment able we've that And technology to before, resiliency cyber, the years, attract it's this money a We systems made spend we've making and commercial us the all

off, clients those that may need able little risk fund, income, about and another you lent will, our is when little may a they more bit get but favor our they they into equities, they be they to cylinders, in have be to is within businesses may may able over we favor favor if clients. investments which which may may deposits, a to that even the about we've engine on, help market be they risk money a be built of ecosystem, businesses they favor fixed time, those to all ecosystem, example, we talked to a Dermot what allow

that, proud Monica trust a the we're contains profitable, that know We Wealth a which very set diversification get that that important. business over way, remember and margin by find trust not of Services I in of into period implies, built think have highest that Market businesses the is the you bank. a described which trust and but of would leaning And of highest growth, very, segment as we our is most breadth up which been we time of bank. and a

from UBS. Our question will Hawken next Brennan come with

the role. to welcome to Dermot, welcome

A to on working forward reiteration, NII question the Dermot. with you. Looking

the seen change business a there think other that we've in Is could the has So that noninterest-bearing get why previously, structural would there reason which XX% was still Is range have cause expectation that that historic prior a on range. to deposits color you any maybe can little add stayed bearing you that mix or history. deposits to XX% the happened it? case? an And back noninterest shift above

Thanks for the question, Brennan.

ecosystem I've So like times, is couple Mellon that know NIBs leave start deposit a and prosecute leave business. Clients think like point BNY to come Clients and we really don't will kind product. of products, an that with. ecosystem way it is is a to the they our I with really with it cash is about of it leave I for their of said I range the us and again

payments. three with Treasury leave fees. out have offset make balances coupon clients like us Corporate pick because with I'll So, NIB examples Services Trust, to us to stay they

And and I another Management we then Asset there. Collateral decent because balances our underlying stay client business, Servicing with of NIBs us activity. mentioned have Clearance one,

ago. doing us. So and a our years with are are more than bigger few clients are bigger Balances businesses

ecosystem. attractive So NIBs the to just are

left to use is our of it think XX% and And the I clients resilience the of we're at And look sticky. then and a through NIBs just Currently, take could sheet you stayed the ascribe and It analysis. stays still there. to reason So kind the March because we're safety the at did that they last that us at -- history our in bottoms-up cash with do range. and you XX% you at out just balance around leave cycle, wanted range. bottom

projection to XX% our but in the reiterate of with the that the work with terms that beginning in year. so, we guidance line is, why did the not our to upside forward expect at And skew and the the we in of we outlook moderate, meaningfully,

good is to stickier than the the projected is it's forecast. in moment. we been be the it. answer good past where would So feel how we We it at I about about it feel And

I point on that relying And But Dermot we're that mentioned. think that not important stickiness. is an

will that And we recognize to and prior we're managing we they we down terms, harvest the composition but as definitely so we extent accordingly. cycle are that ourselves go percentage -- benefits to those them, in have could the the

attribute. you very attribute additional in of any you can on about Robin, spoke about revenue? very, you've utilizing resiliency provide or you commercial Do to that have embedded eloquently thinking you that -- said counterparty. drive and a all How that? position color the are that York that to that thinking you've how order spoken New been you commentary actually a has That's very of the commercial clear, position resiliency as In Bank to it past, color.

Sure.

our welcome we've help events and wanted we clients in the the the look, been to quite stress March been of there's from So profit careful have to to course ecosystem, into clients system. the over of not but that the fact

obviously helping participant deposit. the system line, participated, you important the large we participated as and financial with know, that one XX a that's an key another in so in of banks And

be that role role very cognizant the the we asset. commercial do have our the are of we that So, this we but view system in a the time, we time, to at responsibility same to strong over resiliency system play, given and the

differentiating. where you step history things One of think couple we ourselves back I sort if whole of really as assets. of BNY of a investable So XX% Mellon, the world's touch the of is XXX-year from this that offering are

We are the world's largest custodian.

We are the manager. world's collateral largest

We cash trillion have worth of in ecosystem. $X.X the that

We broker-dealer, receipts et of Pershing, number have Infrastructure space, Wealth one trillion depository in tri-party. worth largest cetera. another total That's space, $X trillion $X.X the Management firm, in that in

these terrific individual We components. have

winning us, one to them actually the we've for being demonstrate think about clients advantage a time, that of. over with I've talked resiliency together taken that And platform bringing and think we don't before, breadth to as that's able our and combination we the of we offer, full

it of and world, that who we rely they that to is we of are, do trust can story telling the actually that on can So, place the our the with the roles our the play activity and just breadth realize and us. clients in helping they fact us

from Fargo with come Wells question Securities. Mayo our And will Mike next

new me country, to you meeting, the Well, said new at it's as a annual job. firm, new a

bigger know objectives, things might your approach you job? there, out do bring next lens to what mean, of a set are ask little how but you you pulling differently? just What the Emily use? the how do position. And skill the a several say, that and look now years? little so specifically, question is CFO what better, you at a the of I you And over bit I can still kind I bit, lens kind

Okay.

talked So to the CEO the decided I've he's the to talked and it's the dots opportunity join, first you just decision the apparent, call the about that, the Mike. he connecting too. question earnings asked interesting, When I question, I answered that Robin, And about of join. he's he Robin across I and answered in to there, just listened when made of kind after and about enterprise, he first as kind talked and

And I enterprise connecting thing dots so, that the was in my a on. across the life, prior majored

up bring the grew the plan also to in I across and financial financial world, discipline I firm. hope intend, and

prouder finance team have BNY I they We do. at here of great be Mellon. a what couldn't

is One three of the we're really And delivering all message clients, in about role kind over of so of ways. what with I Mellon the several the years. external next kind working at BNY regulators, think you. about of stakeholders,

very So see I as important. that

make you're And But come about lot parts. job. has see strategic beginning finance to good the the that's we this done other leadership work. of executive then in a decisions the a the really committee out want already good analysis can the to And which the team with look, internally, financial rest expense firm. the And develop the the the in of of and of working firm to and way take and team good fruits area we

where of a better to I and we is firm thing this think as In it terms delivering in believe we and slowing about it's firm. basis a way it's is some same think like really don't in we do want can one firm. of this about we're just And more the about -- expense grow attacking efficiently commitment, invest expense cutting, the fundamentally really and structural -- can year made ways three our we top not growth -- the for We've the is in priority expense the on us. in, quarter

about bank? it's expense of -- priority my do think think I how I the about like is So kind run

think X bank And do that invest things I want really about growth the grow because dollars from we other and really take get Pershing and we those how initiatives. like in key efficiency to

had which do kind of months that it's team managing couple last about So just giving quite the of financial aggressively. in the they resources the firm balance sheet, all the and financial is thing and the to we've grow a to discipline need

paid other? just to and the what barriers, dots they the silos big, the don't ultimately get get tough Just sense. to It's it people and dots. get just task the the the isn't you connecting dots, that to came a dots, both culture the people Sachs right? the of people down one there's makes Robin for. breaking And incentives follow-up. like to where connect down to change incentive Connecting Goldman And the from Breaking connect scheme with do each

And point this is of on lot decade. important And connecting very a we are is it yes. who absolutely big focused of next decade a differently dots take than team it work? run task does the a is, have company question before? is the very The run leadership a it's to And your been than got if the last differently answer So approaching one. a

Let me you example. one give

talking was Dermot So about Investment Pershing. in he mentioned Management And business. also our

they as Management off when look investment so think have and site. to a ecosystem was never to more that Mike, different different opportunities to able And trillion Mellon. the manufacturing explored run Pershing of a a those base. was Investment really run $X.X couldn't we BNY we essentially the company interestingly, two the management run the Management, almost as businesses, of separately just company you been within to at separate side about Wealth with distribution be a off across fact separate have Pershing and the essentially

Now we're an firm. open architecture

which They're of delivery. quite of in margin our need efficient margin, that arms, a fully very we adjacent but business. to ecosystem. of exchanges now. tri-party. we rules distributing exchange for all Collateral product adjacent management been more we've new seen growth margin our Collateral opportunity into the Management business our margin adjacency the cash are They're explored rest significant business so between have distribution our with to products to hasn't Management aren't un-cleared our up to quite manufactured And until where our Those explore Take also frankly associated adjacent foreign

natural have before. diversification we we So that both in people lot also firm, explored haven't but of a the adjacencies have

pillars So strategically after your things of then to that we that. what of which the it. have that's question the way And several do get to is I one actually the execution, are about is think

some things based. people based, of organizational some them of structural, incentive are Some are them of based, are those some

committed And pillars so so it. and doing to different approach all going that strategy those attack that we're of ultimately we're to we very effectively,

with Gerard to Cassidy RBC. on Moving

you debt client country, on as in debt you though, gentlemen. we a up a terms think Can the as type see -- isn't by of in have developing ceiling Congress point morning, ball risk Good if broader want are a to situation the you and of kind as just the going also, there clients crystal around possible experience treasury Robin, as the effectively this President. of Can for of for ours we business do the Fed get them for how well, and that's for treasury operating as debt -- what risks the what franchise. coming your negotiated and ceiling of and of ceiling do And a resolved. market. of much is don't We seamless obviously, course, that

our And way system so to lean we on in we're really one, a to that helpful. things. couple into it's think doing responsibility the D.C. of a going in can the number be dialogue that's

consequences. our so those that doing educating awareness, of would on some making understand various really government folks and shutdown bit same of And for as sort happen what debt raising sure and thing things, breach a ceiling that the not is

treasury so there. imagine. spend And the on the would time with spending as We Fed you we're the topic, and obviously time

being internally, And ready really around putting our from come the may. on very of the we of we're and We're various are for using be in able what playbooks. things, then different learned past clients, benefit update to all lessons to to our execute organized the automation

well Now we're on guidance of going of as that lot the Fed as course, to we Treasury go take from the a and through it.

note I good The quite can data doing. the from that the see It as know, is it are cetera. run the different of on the information into bunch data, have there whole we supported off that and buyers. foreign market iFlow our bit access to have all versus great. a liquidity We et less sort offers, run on from little isn't things which, insights market market So once a are we of again, liquidity. that iFlow will in you treasury shows that own our background, also

thing. the outcome to And so which this I really do sector a think to it's cautionary good get not to is starting a we want try on tale point, that great official from

The X. balance Page thing high? is a think technical with same And good, us Very reason purchase. Dermot, And question. it's quarter of first of more these your Robin. Fed the sheet? so be in rest the XX.X% like and the the Any why yields balance I in the why funds sold In the Fed funds looks of supplement, sheet, one yield XX.XX%. with Fed with it's out sold in funds line the then average share particular the the Can to yields then you seem

with give follow I the you get kind of Marius gross-up think and detailed issue, you kind more a after netting call Gerard, explanation. I of up of will that's kind a but to largely

seems just It very odd be to Yes. so high. Okay.

Bedell Brian We'll take a with question Deutsche Bank. from

for to Dermot, Maybe to hear Can you with guys welcome -- growth you. working the Great looking outlook me, forward okay?

for You're a breaking up Brian. second,

come you've I think back.

loud Okay. and questions to on come think wanted course the this. the XQ in to this clear Pershing growth and I growth. on revenue of drivers the about Servicing the as back I we two just for heard trajectory you year, I over Asset guess

did sense First you a of just how on in of benefit, picture? all, March do areas from So February? the get fee volatility a January, versus you can revenue in perspective think, revenue side help to those the

And can a if longer-term and revenue question the you of And can I'll sort the before way if is of dots, picture? more then how of do what into mentioned connecting that work you follow-up talk terms separately. goal? then secondarily, its will, you quickly much in a Or that about

Okay.

start with So me let Brian, Pershing.

it Pershing, asked $XX you system. a question on businesses our we billion predominantly was the that So new but a risk-off in assets environment, environment -- I onto say for notwithstanding attracted both of would was QX risk-off

very And we're clip, organically a about. which pleased nice at so we're growing

say would I Pershing So feels good.

and launch in to The X we're going do official -- the outlook June. Pershing feels good launch of

they're clients that good seeing. got We've testing the feel Snowflake. And with what so, about partnership the that are beta

continued accounts one on and believe for the So, about business we future QX, consequence broker-dealers several sentiment and in a that I growth pretty being of terms off have the outlook million one. for we feel good notwithstanding that, overall as in that assets in in the market system. with -- the number active risk clearing of would say the our the We that

kind have is as kind a Servicing like, big business. of she asset more of We as house. income about would have a I way the think fixed of I goes, about steady yes. Servicing, think in being a It's as past, the mixtures Asset people talked

house. and an And characterize house we're it, so I equity would fixed income a both

what X/X shift to play of over equities. our kind equities, to strengths And and fixed either we time, so between largely And kind related, X/X a grow so AUM slow that income our is comes they or and of fixed bit. us and continue our it where in income of down mix AUC will

Asset So a feel Servicing. goes she overall, steady for it's we like as environment

in that That's color. great if near that up Asset multi-asset half of contribution you're X, question in second that? I bit Servicing? out? more there. Okay. a ramp is June, more Is Or capabilities. Or I just in the that And can out that of longer-term on build something the we the made expect follow line? revenue global the And if then FX longer-term or and comments on other coming a trading a sneak build? in trading then you with to Pershing term could Similar again, if little rolling And should is a

That the wasn't contribute it years first talked couple the is I'll talked that. fact a Pershing build. of with X. So about since we to that We've about start going over longer-term meaningfully of course

really that's so, And thing. 'XX, a 'XX

in we'll it that give go but we'll you update period updated time, expect on as essentially view that. we from You of nothing past should launch, some

again, contracts story but quite of being 'XX, that the about client in going the in in a product, the view I'm market judgment we its I 'XX that. enthusiastic as response feel beta 'XX, live But reserve we're until start on overall signing launched And still terms ramp. we to and testing. to We

so but we medium, very outsourced a the this that opportunity. comment, is the and something hence, In trading, we've of long-term terms we've is made launched during made launch quarter, public the this

upon about businesses talked then as it very in a chain value Servicing. before that of time various that interested the owner we the create in solutions solution middle a set We different Asset we investment management Once firm, clients. and was data do asset added these various up and are that for fact the different office integration added components and get an custody and broader got a now

is scale of one saying, managing And owner alpha we're not multiple a "Hey, execution. and a the asset hundreds because locations. not actual to now isn't. asset there's lot alpha it's tens not or fact, AUM. the need action actually There's is in of or of for ton dollars in that investment particularly construction, that billions portfolio And selection, clients great in of with adding desks associated The in an often but of alpha manager, buy-sell

they're If asset a execution. need of comes multi-asset the lots specializations manager, they different to it when

that. of all have we exactly We've own executed broad-based investment $X So for our that a firm. of so or management of asset trillion management type year execution

for only And ourselves, so a that can for operate platform into but now we've turned operate that not also clients.

is existing and trade for with now platform, clients fully associated "Hey, you execution. for an externalizing your no externalizing we're and capable We're own products there's saying, across at-scale real that alpha which

extension do And different where in an for basis it a that of off way view take in clients we exchange, in do on also foreign hands. execution I already our us as exactly range this in of we Let exchange. a what foreign

we medium journey our long-term something as something this as and but time. very is of that a over fee quite so evolution, do, do know And it, view thing I it now we're an on part exciting already to we overall and externalizing how it's growth that

very That's interesting.

more forward lot a in Looking future. that the hearing about to

question Robert next with our will And from Research. Autonomous come Wildhack

out price, unpack and the that asset to little while I a servicing, called on line wanted the You in holding strong pipeline more.

your compared new here? on second, you're success given disciplined think and are to you velocity that of price, being First, business how the elements And backlog periods? past are current what common the then driving does that

overall So, margin this our of Security March is business, the Rob. XX% in Services part to

expense talked look that, little when line. it little so the bit here. a bit we about That's important. focus And on a And hand-in-hand Dermot at the goes

line. year's or as to the at bottom revenue now year line as if net expense you XX%, but this be year our effect we get stat, stat, much depending last look line take on in at order of should the into If the XX%, year be margin Xx just able this last putting same the to energy you

years, few new the win And disappointed. price. of going a we look past several of when this in doing a reviewing pricing have we're cases, been think deal-by-deal discipline well about the I we're so on And years, but deals the is cases, normal back as now business, point back, that the revenue And back pressure as course deals, of we in that. and new at line and some we some those over look on we capabilities struck did at margin activities, part some going But driving certain have this as we pretty on review we look level.

who like, those a we for had my mind cases, we example some pricing been to expectation to level business I'm for level. and with level. which just And improve thought the actual business we of do able not client a clients and and in and at at that to And going we're talk about involved. real we they So certain was margin increased and one that's in causing were about a at them we price have us came deals the broadly to would be negotiated to a a then substantially the the of the appropriate level to that to other client engage things like there help do them that us thinking

occurred that history I outcome. deals the look, past, have how my something that, on a And got the But about would yielded that platform, guess that different look behavior is I actually the of would have happened. not and know is don't we've that it's at therefore, before if

that then standardization on the improve serve. that time So and and serve across this fact, needs to the cost true to the to platforms over focus done be cost the will reduce in

the execute piece same that doing it but to business of profitable, because business the cheaper because we're only price, not even making more will trick So both. and be can pressuring actually we're on be also

I Yes. a becoming and more the growth Look, having point as company. in there efficient the rates add would

on the do into well. expenses all discussion we work and efficiency as feed that So management that

picture. of get again complete good join kind expense business you So have narrative pricing narrative the to the to with the

Juneja with take a from question JPMorgan. we'll And Vivek

were couple see A you in? of which clarifications. The talking deposit in that March you did about, inflows that businesses

centralize is, we no decision guess it was broadly up we one was average for say, would ecosystem. call spread. was that into the important billion. to we basis I I about period-end I I $XXX there But really one So of roughly saw months billion. the about finished how the quarter speaking, ago made It The kind point at across $XXX XX was, And We think business. out point-to-point think, X%. deposits quarter a our would here a the on platform. strategic broadly

deposits of a And and So a we we product. very client very, kind as of as engagement. connectivity have well platform good think as

about we the about will we us together businesses, when enterprise talk of the Robin's came And it in So that's firm, talk an so we deposits, about as think and effort. for how connecting the different across deposits quarter. that system, dissolving echo point it

business at there? But flip AUM, there it Okay. no inflows. during benefit because market a Any you in in into quarter, that had when no in historically shows the lot your you a why look inflows -- didn't cash funds. big for the you've side, also player this I And color money was turmoil March, been on of

I had and some So would outflows. to year. historically, -- known continue this answer to we in yes, say, some a like and very is, that January, cash excellent player Dreyfus have I be were we excellent be to think continues in knew -- simple business to we big and going performance been our question our in has that. The

of to that slightly be happened projecting with in down So were we And got the as what in QX. to result flat. inflows March, a us back

then business to but expect better So about on overall, this were we will average so you'll and going basis, continue good forward. balances that -- see balances matters, I importantly, but more the higher, a period-to-period think performance. flat, And the very we business performance feel we're

that about driving else? in pricing? that? something Is January, Is that outflows talking drives was the that? What you're what And that

else reason. us They their was to our time clients It in was cash. to It what happen. were do forecast no There they we knew specific with doing wanting that was something told it. was going

And add to that. I'd just on

we at look from ultra-high think was bit is mega ways. observations. of the was of a really have market in under little little and last -- sort in where it quarter the drivers funds coming from. coming in that market from worth the And to institutional couple coming composition individual platform on a of of it you year, money two terms outgrew the I we actual There's idiosyncratic other market this money Was sort different institutional net money hood these or flows. of a

And that well. as have look basis so I think money fund market on to a by market at fund little a you money bit

market Dermot then And the as broader our pointed money -- beyond fund. out, goes to our money market funds broader connectivity own

market-leading this And product. have direct so, we liquidity

funds, And this we because goes market so, connectivity. benefiting are money have money even when other to we from that

a some of sheet, on a other so, It might be And inflows balance the it market And It those be growing. funds are to this is are market source of it those Fed's our but on bills the else's all repo money facility. ecosystem. is benefit treasury of we that in and as be repo very money we're someone to might the you've selling large the might again, fund, mix in reverse money clients, seen market of might be things that fund.

from Rajiv Bhatia Morningstar. with And we will take a question

versus interest-bearing Thinking those about deposits, between operational paid interest-bearing you much rate two nonoperational differ buckets? the how of deposits

quite just me but is talk Rajiv, on important. So we deposits, I different the don't think to exact this the components, about of you disclose rates broadly because sort let the

are the stable all, whether sticky The is of It's in that ultimate used they're a expression. decision me, sort first a and It's a retail to insured convenience. short deposits decision of tree versus So whether not. the is tree gets hand that's not or uninsured market.

for not lens even sticky, just short, relevant a equally by it's other and types savings, accounts, outcomes operational there on of in than all they're are institutional. Because is you've different have even the high-yield side, you've way, and And more bit insured, checking, these, to deposits lens whether got retail one got within And retail that that, sticky to right? but stable. the of are going true you're

operational the operational required and provide there of are those services. a businesses. on, Dermot rise bunch management, of give cash Trust, it's that us, deposits clearing, portfolio across custody, in different you are, And be that our clients business And in are cash of sort as those engine. X/X so with are diversified Corporate earlier cylinders quarter for And to our portfolio to order across those first said our of are in able operational

modeling And of of and seen that lot multiple has stable and to all -- sort these we've types cycles. we of a effort obviously proven spend things time of really and over be

nonoperational much higher to would think because obviously much, and a leave rate that's we deposits, good a And be plan them why for we bit much on to so we side associated than about And for focus that that's there then operational at but them so liability of with sort just look, asset on management. little the to leave, we expect there's operational. don't think able which we

that that is you down on to due revenues just Wealth Can mix. changes you part product to in And your follow-up. prepared then Okay. mentioned you remarks, In were what whether in expand one Management expect continue? that and

to the back to, of the in goes in off activity risk just that normal ordinary and that deliver I move nothing think just do sentiment the that a, they risk income the clients from and I fixed products, that just QX that for behavior, totally to we -- products not the equity have people So saw to wanting point would out expected of with quarter. to call us wanted appetite out, working

when know you basis March now, of, actions in would going us. of a but we're this have may how long change for kind a took we and turmoil see didn't they The situation we be in in say, client for these to is March, may back behavior,

view it that behavior as it's kind So, normal BAU. is would I to see of and we expected

with Graseck last Our from Morgan come question will Stanley. Betsy

One, lot your custody things. on MMF as discussion of couple MMF your also is through from benefited a a custody with because had just the MMF, right, well, that Just platform of you you fair? WIC, that

touch funds touch -- it's We Asset another market with on Yes, side. point money that's Servicing the right.

Right.

helped guessing. deposits, Okay. And the that I'm

within get I global I how the payment the to think you're a So, involved about provider, as do as of my Mellon obviously. FedNow Payments thinking the BNY question three how with legs platform to And really that FedNow sense wanted to one kind there top, you're has in Global And your crypto role going is of pilot. just a digital So that asset of out? or integrated platform? in lean question. update on within that's your you have get is would anything an on

Okay.

with let start So time. real me

We the are of part test. FedNow

if I couple would payments, is FedNow and real-time is things. to use from back bank first step look, the a rail. And It been test the first to We the a cover on both of clearinghouse bank do new term a that when have the it. might payment payment as generic it real-time actually think on start clearinghouse, the testing that I I were rails. overall,

in. disruption, that think been like of disruption, one and we've leaning in that represents I which And participate interesting we reasons an is why to would the

payments. for control I think there, quicker, the clients there's a cheaper, bunch more over of opportunities

over of as a be should check and eradicate ESG And because really the so time carbon lot sort that's a check. a carbon in there's dollars it's well ultimately, handling footprint it's good industry's thing, more broadly them saves the and for and quite helpful of check, at footprint of

a be would good that So thing.

as And set broader be we to disruption payments a RTP. un-conflicted opportunity other payments there's terms we selling you sell validation, pretty than provider. There's that solution business, and because see payment a as the data that we broadly real-time Treasury more protection I of often But because fraud payments. services, we position there in a and and Services terms that it when of find have bundle got FedNow. of framed position a existing also in of wrapped of part in are and think we real-time We've have more ourselves not sort part we of our up

and a plug said, As large smaller forward. of the with appealing that size We're the us and pretty as regional whether whether a is rails the bank, endeavor. that is as very of to going But foreign hold a all or of multiyear a you're a provider. look, stuff, seeing take traction. we're in this to inextricably playing threatening pleased into, you bank, be a done But Fintech, a nature makes linked means medium un-conflicted it We've we're you're that set you're we're story a whether bunch this partner. U.S. not obviously, to But

at real-time to view key point payments. that might coins in the look, and like two digital of real-time digital you my question I solution argue and Central that here view haven't assets, things The some as than in people solutions Bank actually on better I be other digital it do changed complete a problems for. all. a currencies assets. payments which fact, would was asked, Betsy, And I different thing view as completely And

I a payment do there efficient. to broadly up payments bit make of processes the rails payment little So overlap, but more how speed is more in them real-time States and question United of to the favor

opportunities handling evolution. of asset we'll really that It's years, about have think and efficiency, more maybe see many several decades tech. That's this build distributed it proven you ledger aren't over We that have smart can about fact opportunity then the good technology, time. digital top contracts believed standardized But the types, assets, easier is on in on think been today. hasn't that to things early, we certain still of

speed services in messy tokenization as settlement financial they're as form system estate like the there of handling new assets. So and probably a on up real of a sort loans

So broadly crypto, we to be before But -- of going digital of accrual like incredibly slow we've all those all in actual run we're said we've the are gone on cryptos we along, assets and terms something slowly. concepts. it's that exceptionally

at On the end. crypto, mentioned. broke I'm you up you sorry,

slowly. exceptionally We've gone

of think would place And attractive I'm for you opportunity I something that's just would be because that not? would have Yes. that if the infrastructure of all or deposits. all agree the -- you crypto with of wondering you an

do other business who've that that. view of space. with crypto part in really not time ourselves to particularly that understand a made over I attract I their of it are agree We as a firms bank. don't cash ton No. there model

have We of a variety clients.

touch who a assets grow that but digital clients some the have aggressively. business to not of been ecosystem, ours that's strategy We

to just it the then meaningful Or really on quarter a you as that accurate? there so. is FedNow, And long next a or is impact? launches Is revenues? an in this, And lastly, mentioned, Okay. your have runway impact on

runway. It's a longer

bit. it Fed the from a FedNow long it's confirmation provider. a one much exact get runway. to And But is real-time as launch have plans You little which FedNow of so because their payments it about isn't evolved has

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

much, your very everyone, Thank you, interest for operator, in you and thank BNY Mellon.

If please well. and you follow-up have you wish any reach to and Marius questions, out IR team, we the

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