The Bank of New York Mellon Corporation (BK) 16 Apr 242024 Q1 Earnings call transcript

Good morning, and welcome to the 2024 first quarter earnings conference call hosted by BNY Mellon. [Operator Instructions] 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. I will now turn the call over to Marius Merz, BNY Mellon, Head of Investor Relations. Please go ahead.

Thank you, operator. thanks us. and everyone, morning, for joining Good I'm Officer; Financial and Robin Vince, Officer. Chief Executive President and Dermot here with McDonogh, our Chief

press can projected these forward-looking available at bnymellon.com. As highlights Relations I'll may note from Investor reference those will remarks on And in non-GAAP financial earnings statements page in non-GAAP be will measures. materially our which statements. results contain Relations available website always, about the the financial differ and found Information page and our are our and measures the of that all website. on statements we presentation, highlights financial release, supplement forward-looking of presentation, our Investor the Actual

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

work joining thank start summary, morning. the in a performance for Thanks, moment. of while you transformation off important the Marius, in us an will take everyone, is through steps we that early as to ahead. in us of continued The and firm deliberate give confidence we financial talk we're the Mellon year. to opportunity progress company, financials the signs this and our solid But you, seeing toward delivered Dermot for BNY encouraging

markets operating credit BNY rose. beyond and yields global with environment markets partially constructive even year Mallon, growth. unwound signaling cut mostly Equity expectations Looking the for bond a first the X as of provided and expectations continued rate months rallied

result a scenarios, of year. the of of this past and in variety now volumes saw are in on unexpected of many of conflicts markets, relatively geopolitical continuation the seen several muted tail low course, And one possibility or taking elections worldwide that market exchange other an there including place risks, volatility the hand, we've many quarters. a ongoing escalation Foreign the for the the different

represents this for business. matters, times being our many before, said a I've commercial resilient and As strength

We clients of a positioning preparing our wide support to our deliver are and outcomes and for range constantly for compelling potential scenarios shareholders.

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you, over to Now Dermot.

our was custody good $X values. Investment under Thank X% exchange Firm-wide investment by reflects million in in and other renewable X% up approximately market resulting and trillion new growth quarter. revenue assets a up the other activity revenue revenue This to the under $X.X both client for higher offset accounting lower in Page net energy revenue $XX.X on X was higher and quarter. were to financial reflecting year-over-year. up morning, of new and $XX the partially start I'll fees January revenue. increased assets our you, market a trillion Total decline year-over-year, X%. result $XXX presentation. largely the values, we an guidance billion of management with of consolidated year-over-year, increase in administration volatility. everyone. Referring Robin, and of and as for X% was million projects, back X, results services foreign of our of X% market up in investment business, adopted Fee Effective were investments XX%

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share margin items, year-over-year. $X.XX, notable and XX% tangible on earnings Excluding were our was per common up return Pretax XX.X%. was equity XX%,

liquidity and on capital to X. Turning Page

leverage for by shareholders, common sequentially, partially X X by increased Tier X.X%. capital sequentially Average assets Tier return primarily reflecting as the grew, quarter was through capital and Our generated deposit to ratio by X% earnings. offset capital balances decreased X%

at for end was of the the increase capital our reflects was CETX capital, as clearing of overdrafts securities well custody and temporary Our quarter-over-quarter discrete assets as sequentially. program. the lending by strong quarter in quarter, decreased businesses X% with The X which demand decline by a the CETX ratio risk-weighted driven Tier in end agency our securities XX.X%. Consistent at

our $X.X returned shareholders Over of the we course quarter, billion representing to a ratio of XXX%. total of capital payout the

liquidity. to Turning

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sheet X% interest benefit Net Moving fixed trends interest on on was $X Page over primarily X% the Against quarter-over-quarter. patterns, net increased underlying The maturing decrease billion X% income X. composition deposits, securities alternatives. higher-yielding was rate income average the sequentially. of and offset down down driven and sequential balance by and by by to balances deposit changes typical partially seasonal year-over-year in reinvesting of of the

investment was which Solid repo decline interest-bearing by a offset expectations. quarter-over-quarter. securities X% our partially deposits Average was portfolio balances our in our and up in We line were noninterest-bearing X% Average remained with X%. X% interest-earning flat. and and assets loan in cash by deposits, growth X% balances reduced by increased reverse

our of remember the business, realignments segments, services across that X. operate quarter, Turning with as made our company. work Page first unified Please more starting and lines certain business to our we in similar to products of consistent on a

other Wealth institutional market smaller As changes we Robin and the Collateral change was earlier, Services to movement in the mentioned Clearance business Pershing largest Management, the segments. both solutions And of across segment. made and from our

March for to that we to on previous We revised XX detailed periods have supplement refer financial disclosures. filed restated prior consistency. for Please reconciliations the

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down down year-over-year, investments were was income as XX%. X% margin increases income and increase million, Pretax of interest and was XX%. a offset reflecting revenue employee impact pretax savings. as of was merit the expanded exchange billion XX% $X.X Foreign efficiency flat $XXX well to net by year-over-year year-over-year, incremental Expenses

year. of impact Next, were in Pershing, client additional for client billion X onboarded fees offset lost Services by were X% Services In of business. including platform, platform. In lost strong. higher and on billion, before-mentioned fees for Wealth total X & increased business partially X%, we clients, Wove, clients Wealth Services Marks market assets Marks Investment the first net the activity, first reported Services Investment demand up up and the we X. $X.X new fees were $X the quarter, reflecting be Services, & Net Total to Page the business. new direct driven quarter, Treasury onto values continues X% Advisor ongoing Wealth negative revenue reflecting Client by the year-over-year. Investment by deconversion prior Services In signed agreements, year-over-year. indexing the of our up our X%,

overall revenue-related savings. pretax internationally. U.S. year-over-year million partially income reflecting down million, $XXX X% a of down were Net X% and in XX% our Expenses teams, Collateral with in merit was and We broad-based not representing employee the for new the and up Clearance the investments, products we at this income continue X% and margin. on continues incremental so and was segment fees to technology, and are with solid least, interest expenses year-over-year, efficiency by $XXX up growth year-over-year. pleased invest of offset Management strength service but investment and momentum sales back increases, services growth in Pretax continued both to XX% build. Last

of XX% margin by was savings. offset reflecting investments higher changes by to million representing business, Management, a million, X. in incremental market offset Management reported X% higher and employee total $XXX of year-over-year, $XXX Wealth Management income. flat in Page X%, Investment was and lower XX%. our and Wealth values by the performance partially by up Investment is driven year-over-year. $XXX up In merit mix on revenue net year-over-year, increased pretax Pretax X%, offset In Management by interest fees. mix which million, partially revenue market on of values, the impact by up lower income primarily also increases, Wealth flows Expenses AUM revenue of efficiency Investment driven and Moving of product were

billion of under As in we strategies money short-term complex. net strategies. I $XX into cash mentioned strategies In market earlier, in and in $X will our inflows. Page segment. net Management assets X% income. active and by fixed index saw higher strength of from shows the with management continued year-over-year. $XX with close Strength the back fund And quarter, of of differentiated billion trillion $XXX increased inflows the reiterating outflows our net reflecting saw billion our $XX we Other by of client outlook XX% long-term values drivers equity net LDI Wealth year inflows X increased for performance billion our results of full I the year-over-year, market investment on the by assets cumulative XXXX. of existing

for a of positioned As our it interest sides have and managing proactively. scenarios, sheet I've balance said we're we both range of rate before,

net full year, continues flat. of the expenses, remainder down be continue our for repricing so notable the curve expect year-over-year, implied interest year the market on the Similarly, since to we full beginning to XX% the of income the XXXX, expenses, goal And items, for interest to be current be despite assuming for year rates XXXX. of excluding to

are have lower expense We savings room start, remain businesses. Overall, across coming but to realize investments off leverage we additional drive this positive more the work continue a and ahead to rates we of over to efficiency for while further quarters, to our operating growth determined we year-over-year make some deliver year. us good

XX%. And finally, confidence basis, year. renewable expect I'll positive operating and discussed I projects, on earlier, our full operating don't operating that through While reported in returning for firm both over XX% the and the more track. our taxes, a adoption energy we as a be XXXX leverage In of for light we quarter expect the other with and the in guidance accounting continue effective earnings provision the leverage buybacks we the the of on that quarterly our to and of first to we're basis to course our increases of performance gives manage new XXX% note tax which, on shareholders investment XXXX dividends us an for year both or the rate income revenue our between and to investments

will cognizant share size and of many repurchases other factors. macroeconomic we always, manage the As balance sheet environment,

better so to X% close over to the progress months, And future, made Tier maintain pace for top up, we've towards clients you XXXX, for of the ratio all the buybacks for for target calibrate the past of by will our line being operator, our X please and seeing our running powering the wrap our we're foreseeable our company of the targets X leverage corners in culture. With embrace good range. To that, medium-term our achieving can encouraged open drive firm we to end Q&A. as our people we're more the X.X% and

Instructions] first Goldman comes question Sachs. line Bolstein Our [Operator from of the Alex with

guess, amount sort the sort from help growth talked collateral you Robin, And about organic size thinking nice starting of as rate about frame activity we've progress, 'XX maybe kind you across of maybe what of firm's a recurrent clearance hold. in think a So to couple Can take really of underneath Can well? you a on then is management. seen that, the that are businesses of guess, of side as transitory handful for to quite things BNY for about How are of more and you Mellon as next organic what initiatives to significant question, I of years? I some baseline aspirations growth the versus here? are

Alex. Sure,

So start let growth with the question. me

good the you we about feeling in quite we -- have that are quite momentum As early growth. out, point

we're the on we that's got focused to order, it positive set trying that generate different And control we're start leverage been good get year think to longer-term things to and shorter, we about that the house we've what our drive and Clearly, growth. operating to last on, of a and medium out the know, can you various pleased really control. year in really it. investments As sort really we've

Officer. I of touched first is my Mellon and model. here BNY prepared integrated our nuts And our remarks well, being of wrapped deliver building those practice to the it on couple client that cut are As really into our I bolts hired kind we've and in clients, whole starting as my got being that of to things on Dermot our into really We're We bunch remarks. around operationalizing for as Chief as a organization, the gave different coverage our solutions. mentioned prepared that. I segments that called a getting focus our Commercial more across commercial related in more of coverage all examples

maybe it's said journey. So the have year, the were early we look, problem. would I working in last

now I your would say Could I working think me question? you of just the remind opportunity. we're part the second

good Yes, issuance and of out been nice management it's to related in anything a to forward? from a for or market sense quarter and kind about firm, collateral get baseline activity Was here? a think just results this QX transitory helped there think and in pretty the trying the of for first I'm there active is better to the treasury broadly. sure. baseline Really that clearance about numbers, going to a

in of but say not really, Look, transitory, I through a would terms let drivers. the go of few just me

several active that and a we to in market. that, an treasury the U.S. trading was like the it business it's remember volumes it comes to So when have respond of quarter businesses volumes,

for better worse, for is kind growth U.S. treasuries a business. of or Now

been it's business, clearing models what responding much client business in we're it's conversation now cleaner our clearing ability it's that we've opposed that the those treasuries took that our solutions adjacent to very, the business clearing able are in aligned we're our Management, that we from the investing international, institutional we clients business, as model more all conversation so with also and of the something got that. as probably Collateral our U.S. the a deliver remarks it's with because in something in talked to then clearing And clearing we've and secular of tailwind that's in of about to bigger Clearance very operating was customers, of clearance to deliver different the conversations X under Pershing with it remember, prepared And the and and a offer, rest to clearing collateral and whether And hood cyclical. whether a whether in finding management. bit in

well. call as So I that would secular

from question next our And line of Wolfe Steven comes Chubak the from Research.

cadence start I bit how wanted we where robust, you And just capital. to will. buyback? of could seeing should thinking of X I upper was on in you're be the drivers speak light into to balance was the you which of down to X% how the or deploy just RWA question you sheet drill I X-parter, bound capital? the fairly opportunities in could hoping potential? we You hoping A about about of planned target that on leverage somewhat should this So attractive alluded cadence and -- if that to noted growth is Tier Dermot, but we thinking a the was actions growth with excess be of a buyback

Okay. that Steven. one, I'll take

some end increase. a RWA overdrafts are and as increase kind businesses. it the was So discrete quarter parts the One temporary there clearing capital X increase, relates to to of around of custody in securities

securities was strong Agency of -- leading there So also quarter continued then gone. for and end, quarter. up particularly program throughout demand And quarter our this into that's kind there's that's lending and to and come the

it So it half that, half that's would temporary. say of and so -- was of I was

volatility relates to quarters, strong this QX day bit a here in Look, of QX out how versus of I about market. guess off of groundhog how terms Both thought of year. a we the buyback, in start. about As there thinking a year we're rate we to last got there's of a little lot there's it the

it the week the hot backup in This the war year, You've Last the geopolitics seen was inflation in in report. last the East. Middle year, with it's rates Ukraine.

where we the or don't give that more, And pace continue, throughout we'll very guidance. XXX% so of was we earnings quarter-by-quarter. I the expect I more notwithstanding QX going kind guidance good of but quarter-by-quarter the XXX%. in of we reiterate we to said to take a it would January gave fact be were guidance year. wouldn't XXX% at

deployed? Understood. could you investments [Indiscernible] those down optimization? particular, making biggest the wealth the underpinning seeing segment know in investment targets. you to the just getting just speak I one, the follow-up, is the And to That's revenue with in margins, much XX%. dollars maybe into the longer-term progress that wanted if towards remarks, better are where glide drivers on continued to growth across that for path prepared How other and understand, segments, my contingent primary the Dermot, in since And we're you're maybe shortfall. just business. And versus the noted expense drilling

Okay.

point was the QX around for there So would be pretax margin first the XX%.

If that for volatility been and like if you normalize that code. seasonal the retirement-eligible the have of typical back terms you somewhere XX% ZIP adjusted would in and in such out margin stock

to a products. in part derisk equity the work was our good and some performance of inflows saw places, quartile. we saw in It the in pretty feel with other. we're from Management ton of we the not and clients new about So would some coming cases, performance business In that, on QX, about. Clients, of one -- still talking business continue move do, of depends we which of launching where to our I over thing in were it's say, drive to terms you're on Cash of managers, asset but and We're first passive we AUM the and risk more We income, other very returns see fixed strong with in the business pleased growing. investing.

feel about we that. good very So

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we're efficiency say We would and I revenue So on us. the see the side, we're sides side. working on problem more the working both of opportunity

comes the Our Betsy question of from Stanley. with Morgan next line Graseck

One expense leading going I expense frame on understand about with in were this XXXX outlook? would the time ratio and the medium-term commentary was prepared you reducing or helpful. the and flow with wanted yes, thinking questions. through your the of if to X investment remarks. give you it how AI is And that revenue-enhancing clearly which to this flattening. outlook, is that how important be to And much opportunities us the the just had expense I is because there's -- benefits And AI to how you're could

of great know on glad first to the that Really it's Betsy, to well. call. Sure. and you're you have to back have you doing all,

much. so Thanks

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things to benefits pin doing a we're it's course, although a and in. to little 'XX. maybe of try 'XX see actually put necessarily bit a in tailwinds in Of even sort to where But in kick XXXX. story, ask going we'll say me the if not you I'm real

I question 'XX mention think me let we're how line. benefit the back briefly the of it. on expense on sort premise is the go of embracing out and sort But your to and this a of just

So put out actually so pillars I'll the it in laid terms guiding of we're that that we've in the doing through company. what are much

to and And some fails Mellon be other that take analytics of see We've able be We be parts of able them got allowing to their being there, in solutions actions look around software are that more able decisions, the involve out better using BNY clients to make action going essentially more fails. efficient see think be potential order help So those way, trade themselves. there out our improve platforms clients are market settlements, and first, today the for doing to to evasive with X businesses. predictive clients. to in to risks, on by

to developers. been productive one think our for they one a for And early year of of developers. to in more was that's days. other is walking I code talking a be those. interesting our very our a can of company and buildings out figuring And better, the change. And see be of productivity, so that's heading as streamlining about going and anomalies running the seeing talk this so many processes, example, school and that they're GitHub as day, business our there are Under of we people to copilot. already, around of an going more out lot assistant a using the developer. They've about XX%

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to off direction. having sound of statements do not the want we've that everyone common And in We in causes. repeat in past it. that's I strategy and different and particularly is in go in problems their Both because in fact, the AI, it's to the importantly, concept AI, another of platforms about excellence centers particularly our Dermot in these -- Now can, have platform own in had talked important. doing which root we're hubs, is and -- this way create actually, problem important these very

So able respond might an want to you be RFP. to to

You might to of generate documents. want summaries

a them, report. able head very want the might sound some required X research on to mini that's when powering the are of those the under that actually, actually things get But similar. start look AI You you but of sort platforms to are heading, be different, very, a

hub deliver used able places that to be different around we're collect use and then solutions of to cases So these using sort then can multiple and the platforms AI our be in many AI company.

significant think be going We story. it's about not this. very over we're 'XX a it's So to but excited time,

the offsets on guidance. the And believe, is I This can tell that you in that. Okay. the us follow-up change, is the where PPOP tax Super helpful then appreciate of rate part just a right? are? I And color. the accounting with

Sorry, I they missed the were last part of it, Betsy, up?

There's that offsets, to tax. right, the by change. tax Is the accounting is The right? impacted

Yes.

comparison line. we see it filed tax consistent to gross that in will the will And economically, is it's weeks periods so interest firm. forward. it's a line. we It's up just offset on restated that a which other ago basis up So revenue then neutral people in an net And prior the for where revenue, the -- the X-K the couple in going a show and of for all

wanted tax -- your Sure. to offsets guide has is rate I that revenue. highlight in just the the

Ebrahim line Poonawala America. of Our next from with the of comes question Bank

of on give sure not think guess, your big I was I terms period uptick Dermot if billion. here $XXX pretty a outlook deposits, in us addressed the end but this to saw

higher the your Just and if sense -- within forward curve of inflection give secondly, a us or what deposit you assuming the lower, NII on if in holds, And yes? margin NII guidance. next are One, is terms balances? we of

Yes.

you recall of of end, the Friday, $XXX was number around I was the think as markets were quarter and a this fell end that deposits, -- largely quarter may on So that billion spot where closed. year Ebrahim, good

clients of a certain so make that payments. So they cash we've in got putting could lot

saw we of is quarter, deposits high the kind they've the left a the surge and last kind in days more of the so levels, we've few of returned largely to which in over normal now, system XXX And range. and

for average of the spot kind deposit the So really trend. that's explanation the balance versus

or positioned X% deposits generally and saw X% sequentially, very down in our our to which down and feel and -- at XX%. balance down are little rates good neutrally see here about beginning rates, of year the cetera, X% deposit in -- very what's of overall bit an causing last We're year-over-year from a going guide So X% we was up growth the think we're to approximately the rate speaking, a down whether now nothing with and NII, that's that bit we balance week XX%. in the there's go little the And we from the a the cetera, and gave year. between backup should January, the report we here, the et given inflation don't on et guidance in volatility, was we us that guidance the change as

I terms in of the took actions And moving it. of businesses Got you in some just guess in X Pershing. follow-up

about how sense And in the terms think a other. that, of guess, than give each As year the began I a review, longer us are Robin, ago we it within what the you How client maybe of to talking in in strategic the to positioning, right of businesses the they're Is want regards getting enterprise. are to of in up close all franchise with terms done? terms to of achieve coming what is synced that the place along synergies. you franchise

question. good is, but punchline we're asking we're a making progress, you're And cultural the not So essentially done on that.

to really it when when through. to months us reviews, a We which of or right and focused our them. did is ago Are point, so the go what we So right back the we in doing questions the now, we your are few original strategy were took them? XX Are did we on doing are doing months we things? doing them people the we have How answering doing? right we Do go way?

and And at looked in were company bits that, the so that found of we certainly place. just the we wrong

now so we and the up, what we've them right are those lifted bits place. have And put in we think

client basic only the comparisons what BNY but basically not the more being is maturing coverage that's can Dermot that we the them commercial you clients model, restatement together about I my about. make by real and bigger Commercial so be blocking Mellon tackling, that's periods That over hey, in some there remarks, the work of Chief there a prepared my not talk was new ONE and a was what for talked both businesses of client, to work easier about So by of in sure to That's into driven Officer. that is businesses? business, for could heart that saying, prior significant. how a our both and client client our very the together of was where make they're we opportunity but and That's

capabilities. is to that think Another used we part of stand-alone things are this saying, there of as

about in we really asking together we products. they and is survey, to our what want client the for, these needs. as us create to them when are fact, take solutions client think Some platforms. point that Client weave Voice them of them and this might on individual them They their We to want them don't call heard And did products. for

examples rather of being now ending of the company our being be actually going clients the up so powerful in with other also our that's thing people to frankly, started that mentioned and platforms is to some way And and that, do that, us from for solutions and very than some of which because deliver I it breadth of able to our that, to to aren't the the we've solutions, breadth opportunity it's takes siloed, a getting do.

the people exciting. And we're days, sure is that doing are early, think, those So about we've up that's, of firm in things of direction cultural. travel. we're in a early but our to the behind been make lined It's quite and lot internally excited very that we relatively And journeys, still that.

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

of rest in they're those client, understand in the of a for update you the how offboarding the to how Dermot, and were along we I the should us and start, that I And on walking Could far recently on the was assets. Pershing, an how of Atria, operations Pershing you acquisition planning through impact continue I'd like much about give expect to to the when XXXX. you believe, are that which we announced consolidate and process, talked year? offboarding also, net weighing new was then

to seeing maybe headwinds going that of idiosyncratic some extend we're from is off-boarding? of that So the these some

Thanks Okay. question. for the

context purging grow. Pershing, So earn situation, announced, out -- this and the about the the overall respect segment. thing since that's first of we're I in deconversion what's Pershing of would to as of in we've the continue kind happening. And invest to we to way the to With say said going our continues Pershing. was

on growing our big in a as It's about that's still, and digits annual market a mid-single business, ability. we're a we that feel market. very So And an player basis. good in Pershing

So we're going to win our share.

way and our while learn out. the continue march So we was we to deconversion on unfortunate,

on by in the do deconversion as I this second would think I are the I not year. so well. Specifically, that we're and a commitment "Oh still we going QX would that largely made with particular that we of investing, winning in worry the strong to in of, It's guidance part, added good would it been of And year, to we're made take pipeline to X $XX to Wove, commitment more the QX in kind context competitive done And what's say, a is to It's a the this revenue we're market clients with would to going need we backlog to not million we're million losing, terms market. my and year $XX And of good. look, back going about to that." add headwind. we and be It's this platform say, thing. me. that's a feel People The things, building LPL that Atria and relates you looking my very we're radar of we We've gosh, not about highlighted really of and January. than when the it in hit there. you

original also And one which Brandon, was remember, so that one. you're that for we I'd deconversion, is, to, business We're our front, look with on a one the just happen the the sure, when add the and clients. referring those growing larger

growing end clients with are well. Our of and us, are the we also receiving as roll-ups on

and of largest who we clients of who've Our we very couple some our and acquisitive, clients doing very growing and have significantly been healthfully. are clients a acquisitions, have quite are

out So net goes about unfortunate things point enthusiastic overall, with always time. over growth balance to about is new Dermot the feel roll-up why assets that there's we when extent, still quite those us, makes when which there are roll-ups our against it's a the some go that clients,

XXX, about deposit Great. quarter pickup here at guys, it trends balances based where on still or to similar unusual. I deposit that's expectation Dermot, a in to about We on they're the ballpark be conservatism? that for a And decline, a seems deposit are expected. don't down better a deposits, of the X little sustained, year-end? to it is just at they far, which average. think want than then there in, driving component to when like maybe expectations. trying doing seen you the Are saw they've it, so though we've come get you from even you is the we the EOP But update think seem fact specific Are I'm in is really, what we were something And

would say this of it's bit and everybody kind I statement both, expect, would I I'm a little but context yet. -- it If necessarily that hasn't expected make honest, happened year of decline think to in of deposits QT. And I like the I

RRP you if from so rates look decline if largely here. to continues longer And the in and would higher on at drain the for QT stay And came deposits QX, from I there. expect balance,

of me lower. for hood that I longer, I so of rates composition XX% you should see the And that And don't the from in I between mix then the interest-bearing little as the underneath bit tells have and the grind And terms NIBs anything themselves, NII update guidance down a year-over-year. would stay higher deposits noninterest-bearing. to expect

you may the guidance. into will but underneath, that be balance which of NII So overall have mix feed kind the overall higher,

the it's of also absolute just not it's the So level, composition it.

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

hear you me? Yes. Can

down noninterest-bearing I I guess inched year-over-year. wondering XX% is. where quarter And just and XX% guess, again. versus it's I'm that deposits XX% So floor last

servicing hand, other the fees up on so X% year-over-year. And were your

you're getting deposits noninterest-bearing what and fees. getting So maybe I draw a in if not you're or should not servicing not, I'm sure link

a of due is, effect is of And the fee sustainable? that you any X%? guess getting servicing to that noninterest-bearing I the of to year-over-year that growth is servicing fees. question market? deposits So How substitution How how are much such from strong is much simply of

Thanks for question, Mike. the

guess, component in first. good go activity and we deposits is fee and year, one very into I came with sales shape. pipeline QX of both in kind in let's quarters those of the the where So

it that winning won we for of felt we're balances the the coming in stronger, asset particular, relates into mode, of and servicing of QX, pipeline Markets were for to mandates, good we all XX%. little in in with strong. doing kind so like clients flows were rallied us, As year. deals factoid are We more was risk-on our nicely, and completed higher, north share of the

and where on well. that we're we and the on made goes competitive. we're focused cost margin, profitability it the to several this, in very deal focused quarters We're So client We're to prior pricing serve. point very back to

by clients, we that on for -- we focusing prepared the being point pricing serve, made cost the And remark in be in And repricing so more made can competitive margin, point. saw de I improving to more remarks my being minimis. I that

quarter the So backlog it good around, very forward. the was we and feel pipeline a all good about going and

do But going with look to, higher over fact that It's move price of they I'm institution. life, our we them. deposits deposits and for winning us. As are expect important and fees out in it and leave consequence Clients therefore, a relates of multiple people natural environment, for sticky. deal in that, that But we inevitable, proud what mix with very deposits that. a and It's lead business our of it's higher Solutions with And of the as to of as their how a share with across things team point, of terms NIBs in rate the Global the but very us a don't yield. time, operational deposits, it's enterprise. the between to longer doing Liquidity deposits and X/X to nature of is we're are of with only with and an terms ready an

And so seen sequentially, because we've pricing. go competitive balances up that the of

feel you where at. about we when all, good all ecosystem the So very in together, take we're

of part question. around trade-offs quarter was other there see I your the And built about the that all. Mike, nothing don't at to idiosyncratic

Okay.

X the asset over X the servicing selling fees, time. Mellon, it But when what growth? get can the about that? would for think question you all And unit I asset trend growth does being an be BNY of the into management, cohesive that so rest sustainable the a mean, all of synergies, ONE option ever you for I separate kind to firm to reverse fit do in management how consider

Sure.

to the thesis, word steps put a to So work various the really place $X we to trillion really about of at past strategy but we strong needed a industrial most bit that. the logic of this make few the of the manufacturing trillion different Pershing we together, and do Mellon's platform be complement on that Wealth is think firm, of having think I thesis the BNY $X look retail time alone and worth is in underline capacity operationalize that, last year. to little that to across have Pershing trillion talked able client question can we've think distribution And over had a a that's said And the that and on platform. of to months. that aligned assets there's working we course the the been plus I'll The the $X.X basic what worth and more and you of we if was business

if it company, of a capacity so and scale able together to pretty there's think compete. the it put when But you the the thesis be have to truly with rest the there. only compelling we in and a about management, its own not manufacturing And whether there silo operated legitimate question or where investment a would in was it only you there's distribution,

capitalized on in the properly benefits And past. we've so those

join distribution things And you approach. so want We've of of of I have on stretch in building of is, remarks, mentioned so have our management can out them to their that. in own, platforms. and they having investment dots. And strategy essentially a that they one don't joining us broader platform our its more attractive who some investment see let's of build platform, that rounding our will, new the benefit managers legs come other couple maybe our they're making on we terms our let signs but offerings distribution both being some early attract prepared also to in distribution, my a progress don't to been platform our if and complete, their business actually

in able that the so in in the It's services be we're growth. margin had businesses, nothing want to we've you given XX%. that We some didn't to our segment business And expenses in for we security have that for pretax and those margin expand we or matter really not the focused targets. to because on over grow

see set coming that do. we and we an quarter how one step was we'll But where working over we quarters the forward. really this about took felt important is of this opportunities, so And

Schorr Evercore line comes of question the next Our with ISI. Glenn from

May. to headwinds mentioned Robin on deal, at relief capital the more expense related to that maybe of benefits T+X towards as then a it it are it, NII but on that a so we about was result get we I'm and of curious going moving there forward? QX have on big think end if world? lift wasn't big starts a a that any And that, any of some

sure, in able different ourselves course to sure, view to that So change of the always this. structure company some respond going market for parts had of be the that in we T+X, we as We ready spend to frankly, money on for have to. business. order in ordinary world There's

So always while there's something. they may individually be lumpy,

So work. and about that expense benefit when a the of running have we finished that the we not yield of just happen something the think company particular to will part as

fullness about T+X, of to view, from benefits overall T+X point do I think moving also and your these would our more do industry types capital clients principal what and probably the doing. reduction. that's sometimes essentially with inflections associated another because cause post-trade want be broker about long a opportunity some my currently opportunities to way. wasn't short, complicated problems a dealer. I'm these question, the them makes of navigate their come efficiency, clients as a us Can the because that manager, big of they're can in of look to we worry accrues of take executing I to or this an improve liquidity at down much because we're say that they to as It hands. too have more more life's of investment the little of do. off that business. complicated, us question been speeds type gets to and them of platform think I management can The change just sort will that I get and were want it part an time. stuff of I a has in a But second for of ago that we go the to there clients change to want financial the the We risk some I Now there up, and maybe landscape Mellon, as things to change are improvements detailed I'm don't because long requirements sorts of look the does raised exactly outsourcing? It you we've these and us to help there. core provides sale you help there's course, of not big we have changes, once, change, to And of those in BNY at system, the not say bit benefit opportunity only curve. world more T+X in player scale. get us. help us also and as help And that to

as it look I'd comes opportunity as call just real-time of payments, in the time said. lens settlement, things And lens so I'd T+X, a and in out we is these to clearing often call it out client service. But through also it a happen, happens at Nothing market. well each of when that good for it between as out good call overall, I'd trading

I And the Glenn, what at very X of quarters in in we've feel, NII. a on balance we're is the kind the of last NII. point I of specific good The as sheet And headwinds to done about place. strength on relates it look I clean. together -- overall, terms

doing kind really book job duration. yield. of a well good CIO is is positioned the at optimizing CIO Our short and And

and rolling X% that kind at being of to market they're a moment, maturing current then And yields. rate are X% see off you are securities at so our deployed at the when

today on that of So that of inflation balance we things week in feel the using the I a good see happened last rates for are the what with forward where hot backup as based just result curve. the report, about pretty year,

little, As I up materially said don't impact rates earlier, us. a little, a down

case good base is feel our about we And we it. feel -- pretty so like

Gerard with Next RBC. Cassidy question comes from

fourth prepared some Dermot, number, or spot in essentially balances I were of that spot average can your quarter end you us QX quite billion you number the quarter Was in quarter. increase? higher, remarks, the the said versus noticed $XX versus a bit the number to for loans QX. the -- was actually end caused in I give flat loan around it the the But at that noticed year-end color? something

Again, it was our going "Good a that the where effect," little into bit of overdraft what facility I use weekend. Friday mechanisms call clients

and balances really you're to of so the it more that's up, caused go numbers that to largely out, cleaned has reverted the And familiar so spot with. that kind average

Okay. big for this know Good. you a I guys. area not And is

since the not can out us insights it bank. allowances maybe as you Is you to give hearing better But as others, guys it it you've could So is or up from are seeing? know color pointed what the we're a about similar What I maybe some and there. you commercial reading it's on built estate? different? us is something traditional give you big real for

of took would the our quite marked portfolio estate our balance really of portfolio. of about build A I And CRE in that prudently you still we're for their good is up and and and commercial restructuring. paying X% But would prudent all feel couple the situations real the just working are context loans, coming small, let being they're total is So everything we QX the of on occupancy. in a office specific reserve know was kind we buildings, $X look, I that that overall Class sheet billion. Overall, in say,

specific So sure clean I on nothing like of haven't hasn't that chatter. results quarters. really the banks' really going very, there happen. over And the what's quarter this would other what's been last me But rates the press and about in the I the the noticed so helped unduly CRE say going a that in chatter surveying look, concerned. couple lot really backup I'm market far in over quarter. has any overall, back bills of on of last been to very has

the observed. So back it at at muted a sentiment feel to does earnings matter moment least what That's others like of on be I've as quite release. the

but questions And just in The is the the markets you others. driver we're as distressed which helpful There a story. rates. know, some country on fact be some longer-term is that of depends sit important are happens here to most in. I involved focused the to than the our today, although on it corporate more U.S. sort to there as multifamily, going real the answer that add of estate. It still view we for where continues think housing to to around that general are most short office, markets Gerard, Clearly, you're probably be as is matter in general that what are more I'd which -- single it, certainly ultimately

get at it's to than X%. case, very if commercial years not And up we to XX backs you ended so a Are little our that chatter going hike extent as is do Fed from the what's much Fed going estate you X%, at there's possible. And but they so or is that really reason, to matters they they happen cut? years going and where different going in to and for the bit? the base to cross some stay? about real funds, outcomes X is on But XX Are curve to up what

end You've a then that's outcome. for some going the more X%, for to painful got in they at plan If to much it. market, be folks up

So the real a so watch goes XX-year commercial I bit, 'XX estate this to the so think really 'XX you -- extent, goes is story. because but refinancing market some little a

comes question David next the Smith Research. line from Autonomous with of Our

of it's Could I of you pace are can low-hanging bit us you get more journey? are about little really far a ending along improvement efficiency to ways, start in the you when fruit? the think know but never as help how the you more about some through please opportunity in think decline

kind and of last So come. to through wondering was last It's was when on X.X% it back the we multiyear X%. up we of And And a look, go the going of let's guided question. ended versus of this to year, an basis year, for versus and guide kind year year it. previous I QX go X%. operating X% thanks And at started we've of a journey. flat,

we've is largely give see we've few got flat. headcount, You'll take, or our hundred people that largely -- a

There's terms We flat. wrapped that. bringing growing cetera. our And location analyst et under high-value like we cetera, like a the of growth, around so the have class, et going arms headcount in is our feel lot hood in

opportunity to about new the of operating company And us to a I we us prepared the the better, it's model internally. better. will in culturally. improve lot talk as help remarks, we working, our the migration Also, said company feel platform we run important see is to of way it that which about but We years, help So efficiency our next couple over a the don't very of only continue both culturally not think we and running quite grow strategically top efficiency just really also will important also line, talk story

turn think in going in margin. in will result will then run better, to to which I company which result efficiency, you're quarter-by-quarter we're on see able So points proof how improved the

we coming. So very feel about optimistic what's

And to incremental XQ. the billion the or in to lastly, XQ? $X what authorization, confirm, you repurchase $X $X Does billion billion buyback just the did is that or come new so out of in of

billion. authorization an last year, was which So $X we did

We have that. a left in bit little

this more ended. And another administration of billion, just that's we to year guess thing so an decided authorization that it's for largely $X open

the on basis. we're size I to of more It's thing authorization north that So doing you of dwell an key just And away to year. for committing much. take what you we of is the XXX% wouldn't on the commit annual to really this

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

been be but a and well. bit have Dermot, guess prior follow-ups. asked them this for little on of just of most that answered, could Robin question, maybe couple a One, as I Maybe

Robin, or you Dermot, this still improvement you even just maybe earlier operating efficiency what the expenses? long about new term about the think, in towards plan of over we talk expenses of staff between your the migration you and revenue XX% back geared answered, are And to be should Maybe call could about mentioned over more I as the going thinking roughly in time. if model. just

Okay.

platform's Let the model. start me with operating just

company, platforms So talked our bad us provider. scale business, it we're what as to we've diversified that artifact. is nature we've platforms, back doing bad At you why many a a which been pretty go ultimately, at for largely are if it's kind least different a It's about scale. before. artifact We of like company a think we is the of doing, a inherently that's but just as siloed

that And all support of in these the to way so in cases, the are have the that of in our just, company. and pieces to run some duplication, right separation of wasn't opinion, it

for our It's operating work. simplify quality the create things So going what in It's experience, them opportunity it's to model and one client elevate going It's overall more the to do? to going place, platform's execution. and is an improve to employees. do going we do to well empowerment how of

that we for benefit done as said, with pretty embarked bunch the revenue we've change. it remember, well. because it line so before a as of a on on And sort hits And and did -- significant line hits of a the we it this studies on expense

entirely We businesses also because we even extent, new built rhythm that accident. to in wasn't Wove way, using and and pilots, some some we've built that this by did operating

we savings and experience it. to feel some had get that we've So of all associated with opportunities going therefore, associated are with expense and that, we pretty good, revenue

the for think and our feel bureaucracy an model. data point to it's just levers has part We view, to they're in people we shown, that also cultural empowered think of and pull that can can change. maybe this problem. no see create a the more opportunity the from of get chain a feel They're a far to on make empowered quickly. just they more people, certainly more it because is our what so long They change They of longer they working

long-term On reinforce and And your is now. I for the about it that efficiency medium just are short, add opportunities Dermot answer while would efficiencies. the talked there thing a what we've for said earlier from to question in way thing, on, to opportunity this

We had year. the it thought very important. we bend to last Dermot said, was cost As curve

took decisive a we changes. nonetheless slightly important So tactical, bunch and of but

a a that. 'XX Betsy's we've groundwork Project laid platform's That's see work. like actually 'XX people question in to the in get in fundamentally 'XX We Catalyst, talked 'XX, and term, but the from probably benefit answer and saves. earlier AI. some medium-term and delivering longer longer-term a that of for from we'll also got about And model, probably of operating more where ways then on, 'XX that our opportunity, employees, We from are sourced which -- been little are investing changing And sorry, 'XX. bit bit from 'XX ideas X,XXX savings then things that places essentially in

beyond Now that's benefits, even story. definitely not a a and story 'XX for maybe 'XX not 'XX, but

So we're but over layering in laying also then we're future different efficiencies opportunities, recognizing we that that feel to seeds time. the swift wanted we take action, for

we billion in And you initiatives we would expenses replicating by we're add just Like in X.X%, that I on, when number. would I last again within $X.X just this new -- to anchor Brian, year, grew and year. that just invested a X.X%,

embracing somebody as the before. a and that's that been people, for point has is you very said, from energy firm. corridors who's very so Mellon of the cultural feel exciting our on operating you the platform as now, strategy, model walk model hasn't at very, it And BNY enthusiasm the to going strategy the an And Rob seen when is close

to of about. That's on of And talk solutions had side one initiatives, just maybe last lot a initiatives buy fantastic the other we've I trading speaking X initiative. know color. the

get to an how maybe on update just that's So tracking.

a This -- going was Yes. take This thing. was I'll always to this medium-term one. be

We of told to company As part well. of captive in-house. sort consider was bit have been for It going with the It as this a platform trading I in very of only have that example conversations as their well. great onboarded, use could platform, external we've capability we essentially looking you internally. last a we onto fit it's of it clients quarter, be large told -- about We one thinking. client of outsourced. made a was lot and they that's how desks you,

Sometimes, it. it's of all

we We here, process. that $X product optimistic from be The to there's to this conversation, rent you wants a sell this but continue large addressable of capability think scale, a longer. worth to I'm essentially definitely a or not but "Hey, this It's region a volumes, scale, time. you're C-suite executing longer market a cycle at you're over essentially." it's it's of can at -- that say, sales about I takes cautiously going somebody be Sometimes is trillion

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

ask to couple on I try know I'll we're here. getting of cleanups. just quick a

securities And where is quarter your grown book First the in an just of was all, that deposits terms. more expect opportunity has just you this the land, it part of is what wondering that the increased in in market? confidence absolute cost were actually I'm do to just of or options first

and much latter. Thanks, Ken. it think And the look CIO say and and deploying very was where the really opportunities. securities cash the team together, they would just at cash the optimizing I overall see when you portfolio, you yield of

Yes.

Last talked I but to you wondering quarter, -- said this And Glenn's a you of could Okay. was if market reinvesting you I question, about little tighten know bit at up. said then rates. you before,

versus if expect think for like on together So with net roll-on what this together that that you points said just you higher that roll-off. of do XXX? rates, wondering last I'm XXX would kind And that put to benefit quarter, to that reinvestments year's that is you now put XXX XXX your be to you us, and basis

the I code. XXX think in zip it's

us Okay. the And Can stands? just an just then duration update give that last of one, you where on portfolio.

one. best yes, But to X or Roughly take, X the number give years is you years that yes. give on

Okay.

short really your still to point, opportunistic? So and keeping like

yes. Correct,

yes. Great,

And Wells Fargo our the Mayo Securities. of Mike line final with question comes from

real I I talking you exposure, but industry, was you wondering, office. about I mentioned you or -- the comments commercial commercial just just real highlighted I guess, when your don't estate. you estate, that for think have are much

You any you said the could that that? have a of estate. provide ASCO color. did ASCO do And It's real highlight you just story -- commercial if conclusion? XXXX and XX-year why it's sort really refinancing Why you

our Well, general wasn't particular, that on Dermot bit the us, in real asked to in the commercial was think Mike, more applying conflicted being using space, vantage was in question what in the less us. I talked question, was just our using world in world, particularly little point, maybe point really But the vantage a It I Gerard about not just nature. estate. was the we observer. do from think because it as slightly see invested we're a

And so I just perspective was it. on my giving

From Yes. your refinancing a story. perspective, XX-year, color to I'm -- XXXX what's just behind interested, it's Any ASCO curious, that?

Sure.

to level, out of they're day, come of very funding them find own their stack at of they're reasons, look for different than And have to at isn't funds and at refinancing, when who their in -- go refinancing to of estate own a funding the you of the lock starts various well. refinancings they because the due, understandable not So own a for looking short as -- better at to when commercial as most of and need of that they course, anybody they type real stack, dates. debt know, their as like owners end Fed their you they're debt looking the occupancy and maturity need

proposition So real curve. is curve they're space is estate in Clearly, overall. precisely at the But shape XX-year that when my the it's it, probably different out but at X%. credit of my treasury versus refinancing point. And to a X% was correlated little as to spreads that very the years, point the X% well. curve the really call observation. looking the but further the not commercial It's of longer, a inside matter you risk purpose have it's part the of the versus XX of

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

I'd want Mellon. BNY and change continued your thank support. thank and like the pick to your unlock operator. first hard for in to in We today. to started you, quarter, investors our their Mellon, the delivered and continues for the appreciate for time pace results inside you opportunity of I up, of very interest BNY great Thank by up employees their solid We work thanking tremendous momentum, our wrap the year to just with

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

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