The Bank of New York Mellon Corporation (BK) 11 Oct 242024 Q3 Earnings call transcript

Good morning, and welcome to the 2024 Third Quarter Earnings Conference Call hosted by BNY. [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's consent.

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

operator. you, Thank and everyone, our quarter third Good welcome call. earnings morning, to President Robin Chief Executive by joined and Financial Vince, our I'm McDonogh, our Chief Dermot Officer; Officer. and

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

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

its short, third a for on significant you Good in year, stance the around the including then X markets execution XX-basis-point in inflation then, reflecting since a we've of recalibrates in segments several the remarks results, the world, U.S. morning, in employment, back numerous of and to on in policy business everyone. Marius. you cycle as policy markets reduction strong in the quarter growth the easing have start macroeconomic consistent our Thanks, Federal the outlook joining now strategic At the Reserve monetary balance growth. take rates Thank with the beginning start us. anticipation the shifts few of detail. easing In policy moment. across priced economic macro and the will in a slowdowns. through Despite seen and I'll quarter, for priorities. Stepping on side Dermot greater our reported BNY financials

constantly of repo end, the of alongside back forward. More simultaneous from reserves both volatility sponsored relevant have potential income and standing most in equities to higher markets the repo QT which in there a signaling the impact market the volumes Around of Fed's fiscal in micro, for higher. A into broadly, of ended repo a equity the increased risks implication on but time, and abundant fixed geopolitical while the going values August, that meaningful transition exist are and of flows markets system, uncertainties the little conflicts so rates, the saw possibly tail and and At the more market the markets. for reverse facility, recovered sell-off regulations deficits many we pace same and and both been facility, impending ample recent for repo to cleared administer. the clearly prepare ahead, Following risks position and elections. usage the from quarter quarter first and tensions early increased we constructive, with

Page referring financial Now to of X the highlights presentation.

were up $X.XX $X.XX revenue reported increased X% As broad-based of and of BNY I excluding by performance XX%. Total operating share growth billion per flat. $X.X earnings in year-over-year, the XX% were on growth of delivered back revenue Reported And strong leverage. EPS a $X.X per and items, year-over-year. earnings positive with quarter of of the said were strong financial earlier, notable up share third billion expenses

XX% generate expenses and company new people and items, Excluding the respectively. better we our while in year-over-year running efficiencies to our impact continue technology as return and tangible of common X% greater to in equity ways. Pretax notable XX%, and margin also invest were up improved from on year-over-year we

the a improves something but our that our of is something #X time market do. as For at custody we services the reported global and to of our we clients. We in deliver it more Services not and see value administration company, portfolio are, we of adjacent Security and leading This history, important point BNY's that to our across first client across custody end capabilities financial our the Investments over $XX Market combination businesses trillion increasingly BNY of to position our provides power it exists and/or under the assets Wealth Services, true in Wealth and quarter. of unique the opportunity drive businesses. vantage of franchise is

We scenes enhance more new clients solutions and of to market the have these to our the ability across businesses. deliver from bringing innovative this to the to by

of allow of acquisition provider managers that Asset As an access the managed example, and of wealth service solutions operational at to outcomes of for comprehensive business. the positive Wealth the across integration personalized recently one products accounts, streamlining their technology fastest-growing technology-enabled investment delivering of distribution, expanding launching Archer and announced investment management to vehicles our asset we account Archer, managed Archer and leading The provides solutions planned a industry. a scale, impact produce of and should in operations, clients. several the lines new industry,

for it will. The it the well our the Buy capabilities as will accounts business transaction to of augmenting Pershing and look we provide the our managed in In year, platform expanded once, expected Archer to you to wealth of network. as addition portfolios use with many, end Archer Investments asset access and servicing adviser to forward team multi-custodial if distribution our BNY. before model is to Arch's welcoming close

easier across serve. with built for for financial promising us and data, into Pershing we $X our comprehensive experience aims us We intermediaries, trillion for end-to-end starting franchise opportunity Last month, integration existing Another platforms. as the Bridge, client advisers believe deliver unlock Alts solution technology on Bridge advisers. direct reach wealth a is advisers mine market introduced services the alternatives and managers assets already fast-growing wealth areas of in and We investors also software there services the hundreds and wealth roughly one Wove solutions the our more they alternatives of the for do platforms. new make Alts to NetXXXX for in opportunity alternatives build to have across desktops, a with well as presents to through to alternatives XBNY. of and investing advisers' streamlined our and a to fastest-growing relationships

innovative the client deliver our products, to promoting are easier we commercial from significant we new, to we As coverage, new making clients accomplish an model, order enterprise approach it In we and addressing to this, also model. BNY. commercial for opportunity operationalizing are enhancing navigate to continue are our

and memory, leaders program Off. over enabled members committee well summer, to and event vision first for ideas shared our BNY's commercial for as across and a our the each around example, creating of view relationship, For of action-oriented world X-day for recent those to time coverage top in as the the a executive This Commercial several clients' client-facing brought new on the hundred Lift generating a client of people together account take from planning, their partners meet business goals. called deliver clients plans serving holistically we our we to entire developing objectives to XBNY the

XX,XXX, and people about capabilities execution plan doing by next our our about in or our During the around unite platform's In the made operating our place things teams enhancing with X/X now progress elevate and have our related one people in running including model, them live and toward better, September, across also doing to empowering of transition across operating the company our step our to well. model. working we We quarter, multiyear we connectivity to BNY a on the company. went new change the ongoing drive

their change to our for not before, around said clients XBNY people we've together our shareholder our company of one up, I to sustainable and hard us balance for our better to and collectively and more in team, the to together leading more strength drive clients, and As another. To our create our for a thank sheet our requires of and words, gives working shareholders team talented world but our great clients the for our culture the for for businesses order of pulling to action. portfolio powering value. a long-term as run be just the our foundation want work wrap deliver combination

the financial With on well progress strategic in ahead. remains the demonstrate over continued priorities our our third team focused our results against Dermot. quarter that, you, our medium-term work targets, execution as to as towards While

Thank quarter. This by results consolidated Services offset XX% values I'll higher good up performance business Investment Services market AUM and Management driven client market were partially management and were reflecting was flows segments. $XX.X across the trillion $X.X Investment higher and Wealth was and and revenue billion Page everyone. and new new lower segment you, our of values, with mix Market Services growth in year-over-year inflows. values, AUCA X%, Starting market the of includes and higher and up fees. Firmwide of up of reflecting Fee from financial the on by X% net up X%. business Wealth Robin, fees performance revenue our year-over-year. X morning, Total fees, X% for net presentation, Security begin Investment our

$X.X Assets reflecting under of a market values management weaker trillion of the higher primarily up year-over-year, were and favorable XX% dollar. impact

exchange and flat reflects reflecting income savings. This changes and recorded quarter balance The interest strategic by X% and X% year-over-year seed mix. Expenses by improved was loss $XXX equity Foreign efficiency basis, higher reflects third increase of volumes. investments trading. last securities increased in in growth, million income notable by of fixed up and and Investment other partially results investments. Net items. reported from investment improved a a year, increased merit deposit partially primarily employee by quarter, XX%, revenue investment higher our in offset continued revenue were reflecting offset the in strength billion year-over-year year-over-year, by primarily yields increases, excluding sheet portfolio driven on equity capital in $X.X the

$XX primarily losses exposure. commercial related quarter, estate was in Provision reserve credit to for real builds million the reflecting

per were excluding up earlier, margin tangible notable equity was And was mentioned and return earnings on earnings Robin items, year-over-year. XX%. per XX% up XX%, $X.XX, As share share XX% of common Pretax reported $X.XX, year-over-year. we

Turning on capital liquidity X. Page to and

in quarter Tier stock assets leverage the by X was ratio reflecting by generated accumulation Tier partially primarily offset capital X common catered Average our through earnings income, X% improvement increased and purchases other shareholders for capital by X%. through sequentially, Our comprehensive through increased and for of X%. dividends.

buybacks. end at XX.X%. dividends shareholders Our of and to capital X% of the ratio and [ increased returned quarter $X.X billion through we X%, capital the of the course CETX quarter. by our the assets XXX% over The ]. Year-to-date, was third increased returned by risk-weighted CETX earnings of We

X the The to ratio liquidity. consolidated funding ratio unchanged consolidated coverage in our due increase sequentially. deposit was composition. liquidity net a favorable a XXX%, change point was to XXX%, percentage Moving sequentially stable And

$X were helped increase Next, by sheet X% Page higher up [indiscernible] balance quarter-over-quarter, up over flat. flat client [indiscernible] net increased Net Average by X. interest and balances [ and the clear deposit income X% of decreased was interest and year-over-year quarter demand. deposits assets Average volatility X% billion was X% deposits market repo the income ] activity Noninterest-bearing and remained quarter-over-quarter. earning interest interest-bearing underlying in sponsored up trends on were sequentially.

repo well portfolio by as increased Our cash investment reverse securities and X%, and remained flat. as balances balances balances loan

Our ecosystem market money trillion funds, at lending, an broader investment liquidity high cash short-term client and the the end quarter deposits, of repo alternatives. reached worth other of cleared over $X.X across securities sponsor of all-time

Turning investment to Total year-over-year. market reported of were X%, our total Security year-over-year. values. revenue X% X% business segments, $X.X higher on by Page Asset reflecting services X. fees up Services services Servicing, investment grew fees starting In billion, primarily up

XX% ETFs in minimis. ETF XX% strong year-on-year, all up was was of number a quarter classes. more and growth repricing the de of asset quarter than impact serviced across into $X.X platform row, up year-on-year. remained funds with this third our the of was on the trillion Inflows For AUCA

As best-in-class we are offering. grow, dedicated service ETF scaling our the industry continues ETF to to

Services deposit reflecting Segment XX% platform Issuer year-over-year, onboarded as providers higher to service new people higher have were For offset technology Page segment, reported income continue & by Trust liquidity fees Total partially billion In well the $X.X order total revenue we corporate in business a and on savings margin in to million, impact capitalizing In for actions X% X% Wealth and higher newly successfully exchange negative Next, & is Pretax of and and to for X% Corporate and us. Services activity down this advance level enhance were interest was of down X%. up was was fees, on billion, in employee assets merit partially our were Markets income of services reflecting year-over-year. new adoption. In business lower X%, values. were Investment by which in Services, business client as up clients several Services the the reflecting offset XX% $X.X Against lower efficiency was backdrop in growth execution our up investments Markets $XX to X. year-over-year, and a activity. Net market the of $XXX increased digital fees in new onboarded year, from Services investments lost the were year. segment increase of see activity, expenses, lost example, year-over-year, deconversion quarter, year, Pershing, foreign partially scalability. severance X% by revenue strength now expenses year-over-year. prior we Wealth the reflecting up Net was issuance increases. Corporate reflecting client offset higher the XX%. And prior pretax investment ongoing of Investment client fees electronic up Net billion behind receipt the prior largely year-over-year. Trust,

million additional strong in quarter, We XX asset new see Excluding for helping $XX saw of in in the the and as remain client new track the continues to in relationships deconversion, attract third is demand. we we net guided quarter. Wove deepen existing up annualized revenue to clients signed we $XX third ones. January. and million X% Wove clients on approximately us growth the XXXX with

manager clearing a and for rebalancing will Pershing fast-growing custody for portfolio solutions, a and management and and that ultra and high the in high reporting wealth net provides net have worth and higher worth growing and remained custodian. In as trading fees and XX%, of strong. active Sanctuary, the solutions other securities Sanctuary Wove with those volumes volumes. higher reflecting teams primarily servicing Pershing market example, segments. Management, that Investment trading, clearance Against by For leverage custody as Services well increased and also large use backdrop clearance U.S. Clearance Collateral settlement collateral fees

the segment remember, continue institutional full pipeline fees global against our the platform clearing clearing, settlement, pay created in seeing was the see and for investments modernizing partially And execution expenses agenda presented a investments Treasury markets. efficiency new suite our pleased XX% continues of in world. In to platform off this was overall form Investment million our year-over-year, were are reflecting of over interest primarily January. savings. may solutions. through in financing up We're X% million, you by Pershing Services, at we Segment realignment year-over-year the of and As solutions in X% well the digitizing Services markets this year-over-year. up for we our up earlier up institutional net in $XXX our XXX higher year business of The execute strategic to platform of build target and increases, reflecting the around employee and business. growth Net XX% were growth to payments income X% $XXX offset Pretax merit we representing pretax margin. income

capital increased business, up values values and expenses in XX%. partially lower by offset results, as was by million, pretax and market X% was and X% performance investments. Pretax And and and Wealth Management revenue AUM $XXX were interest Turning income, Page Investment year-over-year, employee million Wealth fees income seed our to higher up increases X. $XXX and In total of revenue mix. changes and offset Wealth mix in Management efficiency merit margin by improved Investment higher flows. Management partially $XXX Investment year-over-year higher of of flat reflecting million, on reported Segment market net savings up reflecting the and product Management, revenue year-over-year. X% X%, was offset

assets equity, X billion As inflows strategies reflecting weaker of billion our segment. investment into the strategies. strength saw our impact the our and cash, in Management partially I spread billion net inflows. Page outflows values primarily higher trillion values position cumulative we dollar. saw active income. reflecting and assets increased billion short-term year-over-year, by from quarter, client the favorable third higher $XXX net leading of increased In results of multi-asset, market reflecting funds. Long-term year-over-year, Wealth of inflows market by And earlier, net performance across we index with into strong $X Other of by net money management and offset of XX% strategies in $XX the $XX fixed of Dreyfus saw LDI XX% net and outflows mentioned the $X.X active under shows market

Before with the interest of I outlook setting on XX% a up for for year, we income. wrap up, in couple year despite XXXX. full the the starting to comments interest Remember, operating leverage for began net expectation positive down year net an be income

slightly year months of interest to to interest our currently income results, the what approximately net forecasting the quarter be net of points. full we we're in income the X by While for outlook rate the us saw income net interest has resilience percentage for X our fourth January third first our outperform over growth from year strong below positioned quarter

growth toward our the tremendous you the all of financial ahead open With operator, our medium-term that, while targets, and we line people hard range on our Regarding work opportunity us. at now earnings results on XX% to please proud can remain And to company's who execute with to year-to-date, the year buybacks. conclusion, tax pleased for as expect year, notable on items the the or continued January. said expect of to We're keep to beginning through of returned the work for And continue lower XXX% excluding XXXX well expenses, focused we Q&A. this for in return continue roughly estimated be the past to full end XX% remain reflects X year-to-date. In more priorities. and core having we expenses, XXXX and XXX% across earnings performance the rate we business we We of to year at strategic we our lastly, full dividends we're shareholders segments broad-based of track, our and XXXX the our the of our effective quarter flat. progress

[Operator question Instructions] Hawken We'll our take with Brennan UBS. first from

on some flagged of the ETF You servicing that you had side. wins the

ETF much that when dynamics about you've was won? or And -- sometimes about fees they AUC turned something how I are up BlackRock rate a like is the revenue did has have on? Servicing curious fully XX%, win the #X, of lower. that. those rates because were the fee X%, the that but know and that So from business lower that Asset business little And in fee

bit. to flesh that curious So out a

into I a don't get question. thanks on growing but the it on transaction, the to generally So back ETFs is step X or really just take want market. to for client a specifics

You CNBC on have from trend. may secular player It Larry a and BlackRock watched is in a we very a market, growing are morning. that. this is key and It big

As can prepared the on have funds the XX%. number in so back XX% is investment in we I serviced year-on-year, and up remarks, That's the be and technology, we trillion strong best-in-class. on up real of That's said my $X.X platform. of a leadership

without we're solve the we'll So there going and specifics, secular to continue advantage of for to clients' trend, into our needs. take and innovate

could Maybe quarter? this revenue to it is seen have differently. word fully a growth strong is reflected you The the I Or little come? Okay. wins ramp some still that ETF revenue have quarter, this of if those some

they approach. the I it would of It's to new do adding the pipeline. size been speaking, clients of to always platform. in phased strong And latter. tend generally We're say a it's they what's -- onboarded, because the

come. is revenue the to platform, revenue some some So on

the you reasonable to on the is Excellent. first that to update begin speak you cut? rates could we're beta to it experienced better. working And coming you deposits to deposit that grow here? that for seeing Thank with think things NII, the Could encouraging now, rate down given also from see

it I on we've view isometric. basis, So previous calls, the as said think we

on. rate So for passed XXX% was the first us, cost

pretty that. So good we feel about

of are Fed cycle. I think terms easing we in in where the

it's into feed to I probably a balance that's the think bit early deposit see story. too how little going to

reasons. in think a overall, of for I we've there. we've a strong of had different kind held -- QX variety We

here as what are little a change say meeting but moderate Fed for today. sit happens So of we kind with right here next balances significant see next where expect I I us to and we we'll bit would no the on

[Operator move Mayo Mike Instructions] from with next question to We'll Fargo. our Wells

part trillion the figure you quarter so That's smart? did expectations a $XX imagine but far of a on for feel I'm other information stock it's of company. of some to you factual I round a bet both, volatility, we versus have client the repeatable beat this And and is how out number. bit market year the enough don't market growth, just AUC, the trying the growth, have factors most being the that record way. client highlighted. your underlying is trading, in of nice much the as that you gone I your lucky lucky the part And be like

per or us those or could some you in? growth versus about, the client that environment all it's it's company you're businesses better simply client talk or better products to give whether it's clients adjacent So operate color per you on how maybe in maybe revenues managing a

By Sure, obviously the ]. broke the [ at ended ]. We question, I [ understand we and Mike. legit Robin. XX XX it's way, through a the It's very question.

the So being that the terms and that we this at news we fashionable, say is isn't to stop I'd focus. it to growth actually the old-fashioned, deliberate just able just in want way do number. have of it this traditional, didn't it's round good

be a as We've We've that's be call you it, the so driving business that it can in if participate parts our accounts. to software our in respond into business volumes. those this advantage multifaceted positioned respond that progress set the transaction that inputs of a to want benefited number the sales, tried terms to having got of we've to deliberate terrific actually because is of values. got of understand And that visibility is we responds take response backdrops. that much our backdrop business provide got business. parts We've so which reasonably asset to of growth part of of strategy able functions, business of markets. it's we of to to And our of And course, as can well markets. of parts from we we have ultimately what to

believe really early if to heart Having so activities financial in And you valuations this took to market grow, the trying start to work over, think growth management was debt understand said had understand are all is together that's of team our world, the wagon to to and world, your potential. in so that in those issued question, done days we've trends. overall in hitch how We that to that how together, that, we're since unlock could the of good. equity to the could going which the order more they to really components hum work the they we be able to this

starting the that's business. And a so of just more their we and to that's more more we do thing second thing because the strategic better, our together actually And And been which to been can solution targets rallied coming about provide of sales people this our and And advantage It's than around of them. things X X bundles it's [indiscernible] actually rhythms running It's them. to being sales and for bringing our we're take not for and just that it's be see of Mellon to that are things, we winning better having clients. a want think company then And And to pillar they early push words. to about firm pillars, that, to in forward, helpful. not believe us than selling we're and the -- additional still which BNY give future, all the also things past. of of wrapping that of make to But them culture understand is to the wanting BNY was we then thing would this, a results although couple on have it the more is things can what results. I to wanting you our start Dermot those deliberate, trying this quite of do. wanting culture, whole of

X% just I constructive it is fee up perspective about in way and growth from numbers a the year-on-year markets. -- Mike, So from we're thinking

out we've And in that all about of been draw business remarks, Robin's growth. our able of important points constructive so solid markets, would couple segments, but of talked advantage to prepared in a is underlying that we're scale, have seen evolving And in the he platforms constructive we've have I And X take and a investing markets, of into have when situ that platform in fact have high you that we advantage platforms that. that you company. we're at volume can take when we the so

We new of winning came the into onboarded backlog we're business go and the we're we Servicing, with we the year. backlog, the beginning came with into Asset throughout than a year and beginning a business. the year, onboarding the to bigger into at QX

of And that. we are advantage able on thing, client-specific in bear about So Collateral leadership conversation clients, shown Management do line feel future. of ago. across sophisticated to lots cases, something business, issuance, to point Robin's and a And and volume, of a high specifically with that's and from and you something more we've kind transactions just payments, X over it's Corporate technology, very a business. That small -- Trust a there clients of of much receipts, of albeit can years an what could highlighted lots have scale strong then take pay proud year going base depository this and I now Corporate have Trust to has couple XBNY not that of a of. buying years, clients the of the Treasury you in in where platform margin we really and Asset Servicing, is Services a the be business, to with couple money than And terms a a really business but good Clearance -- on bringing lines to just important dividends. was some us beginning we're markets, and and devoid business that scaling have X us when of of number we've been for work of more investment our put

that very was Well, comprehensive. right. All

is very implying more of in clients layers, Just line. the and terms last the expense Are thanks part it. But client what even expenses specifics onion -- of that the never but Dermot, follow-up. today? back way, there, by expenses in are growth in fourth for enough of layers you lower but more that -- guide the down numbers us, the the going clearly, pulling the and always on even flat the and the Are for new growth your all implying like clear on based you on metrics, quarter again,

to And look, are worked the thing really the I we the would we couple been of is our expense part, at some of on shareholders good the to I build flat that, that convey year. would hard of to revenue So credibility the pressure, broadly last stewards base, to our say, guided years and related. beginning for that most speaking, and like are over you we expenses there's

if so just you aspects to have higher, are pay expenses. there're And some more that revenues

So flat of revenues. there guided the higher roughly a because may be the pressure little I've bit full of year, for over course while that of

also, really that there XX,XXX Robin very integration said and #X with the now who to But and the discipline, as will have we've good be company. of feel costs his we understand I pillar well-run fact in financial Archer And the goes a that. of of being announced people acquisition remarks, importance some associated that

Bedell with our We'll next question move Brian Deutsche to from Bank.

some now lift early getting, that sticking the think with the equity on general commercial I the And reconfirm more just The the you opportunity, how revenue just that doing referenced about little enterprise Maybe dynamic, the multiple and also can just a might you clients about think the you're revenue talking if -- you approach. revenue markets. impact can the trajectory? -- just to off growth talk then you delta traction services, bit

it X% can have a market think like of about I revenue. equity impact XX% was moves

sort of to growth aside just really actually break that X generating from dynamics, wanted kind apart revenue you're of this just showing I markets. So those

I last your that if So first, X take X question the hopefully, was questions go. in

in So million change change in in markets is a roughly a X% markets and annually annually. $XX is X% million fees gradual or fees in -- roughly income XX% equity fixed $XX gradual

on bit So that's analysis. sensitivity a little the

ambition really on the a X,XXX X,XXX a spent it just off leading is remarks, tour his Robin on for of of year that have there terms talked how the people [indiscernible] to around can force educate our roughly be so in year what in who's are whole the we total with clients our that And commercial client to firm. listening world to organizing coverage with and out now want and products to lift the what about be, really delivering over we the us the able first our we

serve you in really, have enterprise in its think, about and think of that were and think Clients business. Archer solutions of about lines coverage about multiple in of client that Robin's that for where we bought our do firm talk just And And our work diversified budget for of use the should is way will for if a done clients. good they're part to and you more QX show buy I a to just if it it you point very second, of come understanding opportunities franchise, years our how the our in buying today acquisition, of to going to kind remarks I feel forward. from deliver I think nature way couple up planning terms the ago, going would We're are for it of have us. important X going that's business to a and model that's we XXXX. you an in a the better strategic business. multiple for really holistic once, his revenue, and season it's going acquisition how where are times, we the going for just And it's are also

We'll question Sachs. Goldman with our move Alex from to Blostein next

wrapping areas When different guys about of question. the the a of you different outlined number of specifics, made approach a bigger the you fee attorney maybe you So think picture and growth and taken some comments to some has whole around cross-selling here. a just obviously,

you So you how them do you the out about look fee holistically, when that over think organic at generate enterprise use can time? and business growth the the

gave business on fees, don't haven't are this an earlier But question, guide So to of -- I would across do underlying answer you're I growth as done segments. we all what intend and here. it trying so X our say is, don't we seeing --

expect and we growth to half working kind X of a flywheel reflects are a lot Our and who back of come solutions. and into on months happy integrated momentum set of innovation, we we the a we've there's the call next that, have feel we this group a up it really of feel we've year feel way it's year, won't year, about, And of quite initiatives. people we no growth year. together I what have and for this reason underlying do good And And the of organic that continue.

business are number so doing his And in Clearance driving growth lines Bridge that's There realigned We in Archer talked within into Collateral Management, interesting his about pipeline. Robin specific in Pershing of [indiscernible] that of a about things remarks. being and we well. talked coming and together. as about talked remarks, the have things we're

into our So of of year, are terms to and couple this that year. different certain next will continue of the the revenues into do up decisions over we've years firm the last realigning taken in parts in that activities showing we

'XX Dermot to in in multiyear approaches. add, said. know, be as we to beginning, think just just X Star, the this I'd different for he But Alex, there which that potential really BNY's And realizing from us, fully a to of as One North going And right alluded this is endeavor, endeavor that recognize you different in come had we've are about ways together will years. and what it the in in different in for for that it a we the things longer in be as slightly really But that when different did could you operating January. term. and XXXX came shorter and term talk we about in the medium knew and into 'XX, invested is we've get to that leverage, ultimately would be important way term for we simultaneously and than in conversation again

quickly revenue side. value There it in And so now be on We're together We come able great creates have of been because some benefits on the have solve expense the able operating been to company. both side That's example. medium-term across a that for brought about this and momentum have clients. the from process. benefits There dynamic have There doing early Dermot to the things more more clients. for that problems like it. But talked model. been done having on benefits I we're then platform's

story the longer easier term, a able solutions there's And there. be about. new actually Make growth And creating no to these revenue also makes to invested so in but mistake, again, expense it. specific there's that there's it that's assemble a how we're growth. you that thinking given payoff it there, Dermot target haven't then And about we over was number. we're story. just And talking Notwithstanding, a an

Yes. I kind you appreciate No, of for Smaller all enough. fair guys. that. tactical question

to activity NII you repo quite the different sort a repo fee Is the size help prepared of your it across of much hits mentioned possible in be how couple enterprise? and the as you some continue elevated, remarks there's well. to and It Obviously, in benefits. that ways. benefit there's contributed So

in mentioned some as market? but earlier, you So think quarter, monetary of that pace elevated reproductivity in that contributor think level normalized was big policy also of you changes a of of this ultimately look how the saw activity more in about totality? And forward, you as behavior given of expectations, this in the more do versus client the you what how sustainable kind you

cleared to sure, back this so So particularly in the early in going That the a quarter now quarter. for activity, on repo large And repo, somewhat. QX that, of part, has the the NII. question, and saw into the the moderated contributed end we for of outperformance elevated part

and kind I so $X that's the remarks, feel terms roughly like in the my NII, And of for for billion guidance, quarter. why of we're fourth prepared in about

the year, roughly as overall, repo, X% kind the the cleared of of NII of contributor about course over of terms a to In the it's number.

terms of continuing a our strong very and been we at shown term. medium on from It's in to area call that case, the activity, of the engagement, active product As see that's There's year international on the volume think particularly it what in the we kind we the year, be case platforms, slowdown. I focus in that for said innovation. client of relates in side, no reason and the going of the see be on to elevated in very, January the activity and a the up strategic international key of to And results. was been platform, our that's beginning very kind

of ecosystem that's ago, us trillion coming years system. prepared $X.X So backdrop the in as and from in out overall, trillion. said total liquidity the a I of at I for in as liquidity remarks hit think couple in terms That's of of well, my high up $X.X the a

collaborating connecting So is across that quite the firm, is more, powering to providing teams to growth. we've the that substantially. clients, digital, grown coming again the back more getting and dots solutions being And innovative really

question think just If I are because back relevant. Mike things had that could to relate that asked I on a these earlier

world, are having to in got You that the roughly remember us the things the in to right able very participate the that's of be important. that ores strategy right happening in roughly to waters

that I repo. repo generates capture said, associated U.S. security repo Treasury which of observation with role we so this U.S. doing if to get Dermot that obviously lender fees supplement the world's participates market, with largest the play We collateral world's the we're the just So manager activity. repo. growth in in what largest additional We're the treasury

points. different touch of We these have all

so And that. in markets collect there we which services ways software, across both in also global product cases, that participation different align in are can and which to ways administer types, indirect different, we in in some and others,

of the in and that So that's growth. of an our the important services benefit products how part we navigate participate overall we and understand look help at and those, how clients system can can

Cassidy question from to Gerard with next move RBC. our We'll

other get about a acquisitions obviously, for you've bit currency. outlook just year the in better you has thoughts this Robin, be can there us that of you accomplished is you are your acquisition talked give if to very what outlook complementary doing? obviously for very capital What and quarter. a little currently nicely -- your -- is types you some levels, with this you're could the moved stock What some strong

Gerard. Sure,

First of a all, about make comment Archer. quick just

we've on things the And forward couple already Looking in. in a earlier relates other participation to a other One the closing transaction on that in ETFs. talked little one the of about markets is welcoming that call. quarter the on, to and bit fourth and this team

you in recently And world funds. been separately which simultaneous past growth of view about we of so, that the there's the explosion the upon on, thing a time or ETFs. they way once If just decade accounts. really the More think going is were mutual construct, the it's managed

able so participate ETF the the a to that prepositions with managed same migration, participated way And us outsized separately described way Dermot of hopefully to the Archer to outsized we've accounts. how be associated in of in transition participation is that sort an transaction in

different that that strategic participating and in talked markets So growth about. to relates o we question, it

provide think question, great to be it. solutions is think back and M&A, clients stepping part talk look, your lot heart it services more of joined to we maybe I we our the of we've are that those things we spread a up looked other and to businesses. and of our that more a before. fact have about great a set what we they very Dermot lot love And on improve Now can And We the on we businesses and and the think our have have We that we ways really, we have the primary carefully both our in, than they of in lot businesses. focus how think of at adjacency each other. to a can ones

want it's like that So pleased any with what we we very do we're notwithstanding be opportunistic, able position a obviously to things, to needing we're way do But in of a M&A be from that have, lot. don't we we that it isn't to complacent. and

that, would looked the we're on being how looking trying at to at keep accelerate of bolt-on trying to strategic do. emphasis that our we did long-term do for as derisk went look trends. we're we capability, do a at word might about out adapt and result And what we a key and of what those very the capability a internally, review with came looking and trends, delivery then we to things we things or business that digestible that we eyes open, specifically Archer So

technology, technology it less then very a distracting about good piece buy And building or ideally it. book we feel can a is an efficient like installed of if one, great that ourselves with helpful, we of can team, than great also this business be more

a has As those good long a as is cultural fit, returns. it aligns attractive good priorities, with

thought to, which M&A capital, our And about talked we're fits waterfall, going of excess into overall that that's we've is, process. prudent. then So course, before, be which if the we have

bad we And world. so like an excess uncertain capital. That's thing in

and not the additional very to we -- plus to at levels, capital and And ton we're able whether for growing all capital-light Dermot year And look been need, the obviously then net as and, a Archer good to that run prudent. been we a model, know, you to see been of of of return Then generative, rest. has need indicated, acquisition. to a we've XXX% very a we reinvest earnings elevated it. type an not important to we or distribute We've consideration. capital make we intend could keep in whether pretty this shareholders, look example capital our that's something so at Good as on so invest of like we're some display. We've we news, it. Then don't need we business at or

And world. so we this how think model about the is good year pretty a for

quick good. then just Very And a follow-up, Dermot.

equity if income Was that's for we X%, the to markets, if were X% the about markets gradual kind gradual down You of up in it have analysis impact meaning the increase would market, down see? and that gave markets fixed on the impact expect us also was sensitivity a revenue. change that reflect up, does X% would that and

that's Gerard, correct. correct, That's

We'll Poonawala of Bank America. to question move our with Ebrahim next from

some I have follow-up responses. your a with of

I depending this with how capital maybe think, I allocation. guess, starting --

good about just M&A the talk think as of at do of to these around been stock shareholder, ROE question to price the how earnings, response the time, year resiliency But we So about, to valuation on care your how Gerard's firms. and pretty and when such. an this investor has about wise, tangible you price book, backdrop market think means you us to same

Dermot, to backdrop flex or talk the around So maybe, comfort what's If the market Robin system? unfavorable, your about is ROE resiliency? the in X us

stand think And like you about and stock return given where buybacks the the dividends? today, how plus things versus do XXX% commitment to valuation

Dermot your I'll first take first, the will of the bit and reflect on then question. second part

that think So expressed of appreciate that you the ourselves is have can in we your our to stock of you that good many direction. fact pay And as forward well. also views attention confidence about news our we the believe way stock. the all and in We the

consider terms don't current so of inputs buybacks. being into the we prices return price framework, our of continuing one as And course, we stock problematic capital what our many view do, as of in

kind of the Ebrahim, of couple more the team to BNY. different? the several quarters the is started guess going role now I got bolstered took lot really into medium-term when ago, questions of strategic the has this really the new Robin of and financial And team, has evolve a a of that communication, what's to and on through about targets the be just culture I principles, years same pillars, we're or I

shareholders' leverage it so positive commitment is our deliver cycle. through our to the operating to And

would XX% financials, common I flat beast. growth, leverage And a expense is margin, on EPS so and take equity you say And step X%, a growth. return pretax at tangible and revenue solid just X% X of XX% growth, end if what a quarter's upper this XX% look back Tier

just on for really we the way, care will itself. valuation shareholders. So of about the of the And do given if don't about that delivering in our think any first-class I care a day. valuation and our firm clients We take

given that's sort greater our asked the you returns ROTCE. for we've of about And said, them. with Dermot and just targets, as equal XX% or comfort sort than to Look, of medium-term

income platforms markets how of it we business, all this through in. is And our are fixed talked And that activities that We markets market market participate Trust is transaction The appreciate is We fact the those a really diversification. fact and through we us the important got participate that, consistently of and markets markets. has like the the that actually and remember is and are about in in good I its valuations about equity growth the touching software, Capital talked it but debt obviously treasury XXXX. nature participate business are services, in in our the the things example. capital very we markets resiliency, achieving participating business generally. scale of been over that targets. so view These of we doing time our to things markets terms capital volumes. Corporate

And so our this one particular diversification to resilient mix of terms helps us or market be of the any in cycle. vagaries of

and and around, leverage of too fees future that our move in to could them we that about they investing the because than in we business will positive why have recognize things course, so. the control our that's to to be exactly mix, mentioned always make level be expenses growth what our because all we can but almost expenses. NII, operating that commitment that it doing for less scenarios which chosen imagine of We the our right environment, the given reasonable part Dermot now. believe but is are manage point wouldn't to now they we ability that then at so should are Now We've are is

in stops, of that cuts if quick in am U.S. Appreciate We've can fair this should we kind I And NII you fourth up, billion that. it in missing slightly And then to September. X quarterly the in deposit lower absent bottom? around than if few are the it I sneak change off QT rates, NII in $X dramatic bouncing Or quarter Europe, XQ. that Is something? mentioned follow-up. base? is that now rate more where at Dermot, picks a growth a assume seen think I go

where look for of of number back a towards $X.X cash. was view last once kind principally volatility for into started in market go to clients to quarter money And end the the more beginning the Fed between X up ended at rates, quarter, with money QX you was funds, us. at if reasons, So held of on at quarters, our August toggled of the we've market and billion and the back a which was going billion. $X stronger put us there then clear a clients

we principal so those things. of from X kind And benefited

balances so have And of here. our off leveled deposit kind

a maybe expect We bit grind from down little NIBs here.

minutes XX And QX the headwind kind of of 'XX. said being can we've don't today. for taken And $X a book our give guidance action repositioning maybe so CIO insulate is NII billion the kind of us. in extensive I as I terms last over a 'XX, for And best weeks several I ago, you to for see

[Operator to our Morgan next Instructions] Stanley. from question Graseck with Betsy We'll move

Two question, the quick buyback I look, said, questions. accretion. earnings accretive One on very is you're you on and know

You of you're for don't leverage know, Tier model, of need X.X% the the and you're range. above to XX% and we at a that target lot course, of of capital end your target CETX business as X%, high X

part these there's about to bring makes the we capital room XXX% the to sense, totally And about we XXX% like more. how should the think plus structure it XXX% plus, so the when optimize plus? feels but of think Because

structure, of to kind kind are we about talking So I'm thinking frame feel? you I'm your time optimize about what -- do wondering capital of

or the Betsy. little XXX%. we January, for returned a of XXX% question, Last in north year, a more. guided we year, thanks So This

Given very And ended be to we of X In in January, the stick calls, range the is it's range. of U.S. previous end think, now the we thought our for year X% Tier to which markets, we going different leverage uncertainty a the the where ratio, I towards Fed. the presidential said elections, wanted with up. uncertainty was upper geopolitical, on wide

still think ] so more And we're or through of kind you transaction, take XXX%. do [ when the we at XXX% that quarters, the to we're Archer on track and X

materially So here. wouldn't I that to change from expect

the of about implications of then is there? now And are improvements on the you you taking for efficiency X/X BNY question for other firm execute Okay. Got as And platform runway the it. you model. just And mentioned wondering the XXX% on that? is

X now, the So and happened XX,XXX X/X wave are in of the in live employees March another platform on roughly year. QX going firm, waves, with of September, next

it's wouldn't just going going culture for and is a a have growth really company I to drive as thinking. joined-up help more and of line in efficiency. to And terms top operating the us necessarily model so run mechanism It -- about is it's better to think platform different going

mechanism So which pillars. deliver it X really we by the strategic the is

next up the from is But end And so there. year, of will around fully on the answer is firm the it's to is, about the QX of the before another the from months And here, the expect world probably model. from positive. half of about XX we probably live team question XXX% the yes. And extraordinarily by firm so be feedback our -- far

us really it's a as So worked firm. for well

approach sometimes the not the because of until And to in are questions they're that and terms remember the of Beth, you that benefit folks is that, with way it's model to XX-month optimize. really operating examine able in the past tail extends confronted some new of core how point in that platform

to was that that XX-month that past endeavor describing point. benefit be the a expect multiyear we Dermot So

Schorr Glenn Evercore ISI. from question next our to move with We'll

me. for the flattish up to you of wrap X power BK model. out the X% Just growth, love That earnings XX% Dermot, pointed growth. lead is I expenses revenue the

I'm look at the bit. little look numbers, you know X and story about but changed I we with flat if sequential A lot roll in are -- the just that we're just I'm little it's earnings just and looking If quarter, at business down a up. bit a everything you any wins way -- 'XX? all into and asking metrics client your does how balance as is, of of inform us

I that? to just now, you perspective, how about but want that my gut So see feel is from

clients starts onboard and [indiscernible]. recognized. got is revenue we And and about put all It on the when the you think I So get correct. to just when it timing platform it's and people

of backlog across continues in just to businesses, yes, grow. our strong it's the so all correct. So pipeline And, your is terms intuition

to Rajiv Morningstar. move Bhatia with question We'll next our from

Yes.

something to X takeaways quick that's it decline? driving decline. something to of competitive small programs a or the is I and Is for sponsored but the business, a receipts me. number Just that? should we depository And expect that else continue on appreciate to continue I it's guess, business,

here. a really to around. that is it it a us read small it still in but business us very too That's a significant Deposit gives into and good for market that because about not away -- for like talked very, it. much another years of sponsored with wouldn't the receipts business. I And So It's important opportunity clients, the connect is that. and we've about been very several going we program very business totality have has got it, share margin to in

decline in. in that that it's business We see see our for and So secular it's from where to something we don't we it invest continue very we think a important today. franchise,

We business. also in clients the some of smaller particular that off-boarded

you total able of bit misleading under a actually that is hood that you'd decline, see the clients if up So dig little see the some they when the headline the small. were number and to that to of made -- skewed disproportionately

Securities. with our Jim Seaport from to next move Global We'll Mitchell question

My all and questions answered. Thanks. been have asked

Instructions] from with Bank. question next our Brian to Bedell Deutsche move [Operator We'll

on X margins. the more Just

at your areas. in target mostly most You XX%

some model, investing well and move the more into, generate on moving sales actually XX% that we of business platform potentially the guess, or spending [ above ]? margins to generating, you So the generating versus I in what's view year beyond, say, and as next from

we year. gave deliver a great great a be to to time So to an I prove cycle. SPX various we've of can the we want -- margins would to we then lot balance, budget us period operating season to first through be, that guidance can teams quickly. that over the around show what's there stay that get And demonstrate firm to We Jim, we heading deliver and a able things deliver we interesting in want answer leverage. this you want We're things my to for But that pretty the there offset and that just we know going very of time. quite because done want January, we for to to positive year. XX% that the do be into one, can to next managed

we in them. next targets hit now previously. with The how you would and that earlier margins inform could firm set those next January. But we we than for we maintain we we thought. those And there year can that to positive we've and the guided out we to believe weeks we is communicate because set And so want X got we how up the show improve

look or our see the best more that, that, sort you think that's differently journey actually the is of clue told of segment-by-segment us so a can how were a ago going bit on we terms give Brian, detail to you we basis, do. at a if I it's segments. in X in could little you what year leverage we about And you prosecuting operating us

exactly to And concerns with your at so we Market wanted and and which business, investment, you the grow total the to in size allay happy trying very if margin of the We're Wealth terms we've just growth aren't there. is grow maybe been look Services, what margin, to the of we doing.

the medium-term margin There, we are where for the are growing towards segments our said we other those segments. we really There to grow want actually do margin. targets the

And so your our question work segments. you see at exactly in can

question, return Fargo. line Mayo with of Wells to the And our Mike final for we'll

I AI next world, the like don't you're in of mean X talk investing last the I still you you've expenses how out in hit, the all cases the have the the was made the November, sometimes see bullish AI. metrics? presented It have Conference transitioning And new this With how to misses. half platform much employees When for a much Emily was give to do the years, guess, in sometimes you the flat. BNY you yet of Boston AI. at I broader it role? most Bank all you heard one of seemed any X can over keeping playing employees, know

give can us, So AI do And concrete any you you numbers AI? relate have committed you are that to platform how how where the whole -- to metrics? strategy? some And does

Sure.

way about large sense deliver the of and terms different that We've in reiterate, model. capabilities then sort Dermot if positions, think model follows are, to we these platforms got the operating companies from in So you that the won't of our to us platform's way is generally that software before, ourselves more I businesses of more concept us many operate about in model, it markets. that in an #X, we things it really, platform services XX-month other And in often we've in it's repeat talked from at-scale market-leading platform's a operating trajectory That's them, said, -- of it variety fact, as people the is just world to a a themselves. the X/X company this operate Mike, platform's and for makes of, which operating take in here. I

how a is our that organize broader to strategy strategy. we so in being around And pursuant ourselves pursuing

as hub. is, AI an -- of that, course, part a which Now have of AI

our AI to noise down. We because people of about clients lot make of for have more efficient. people our that both power And in of able haven't a that and business slowed the ways effective interest of hundred also a and misunderstand time of we investment in we and opportunities investing or a but AI over do for terms lack haven't made don't hub, believe to and absolutely it, couple AI revenue we in help are in to be

increased In investment. AI our we've fact,

course, manage but that distract don't think on this is well that is can and a running it's can be to of well. us and that notwithstanding important to company can We the something that, and gum into, very time. task the management. line, you we, walk And all learning pity, chew future. of we're from important AI of that's invest see the where expense as from we're the important choices at not and is for mean very, we that in I expense allowing of an matter choice us enthusiasm a can for company, make we same company the things leaning And

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

reach time today. We Be Marius you, questions. thanks, BNY. everyone, and IR well. your for to the you appreciate out follow-up and Thank any your Please if interest team operator, in have

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