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The Bank of New York Mellon Corporation Stock Price: Quote, Forecast, Splits & News (BK)

Perplexity Finance

Company Profile

The Bank of New York Mellon Corporation Price & Performance (BK)

Stock Performance

Updated Apr 21, 8:00 PM UTC

The Bank of New York Mellon Corporation

$74.04USD

-$1.83 (-2.41%)

After Hours

+$0.57 (+0.77%)

Open

$78.06

Market Cap

$52.97B

Year High

$90.34

High

$75.73

P/E Ratio

12.1

Year Low

$56.08

Low

$73.56

Dividend Yield

3.11%

Volume

2.63M

Latest News

Analysts Project Strong Earnings Growth for BNY Mellon in 2025
Apr 21, 2025
Bank of New York Mellon is expected to see earnings per share rise by 12.5% this year, with analysts maintaining a moderate buy consensus. The company's valuation remains below both market and sector averages, and short interest has declined by 15%, signaling improving investor sentiment.12
Shares of BNY Mellon Remain Below 52-Week High Despite Dividend Payout
Apr 6, 2025
Bank of New York Mellon stock is trading at $74.16, nearly 18% under its early March peak. The company’s annual dividend yield stands at 2.46%, with the next payout scheduled for May 2. Its market capitalization is currently $54.62 billion, reflecting steady investor interest.3
AI Analysis Ranks BNY Mellon Among Top Capital Markets Picks
Dec 28, 2015
According to recent AI-driven analysis, Bank of New York Mellon has a 53% probability of outperforming the S&P 500 over the next three months. This strong buy rating is supported by favorable technical and sentiment indicators, making it a standout in the financial sector.4

What's Happening

Peers

Earnings

Report Date

Apr 11, 2025

Reported Revenue

4.8B

Avg 1d Change

3.76%

Report Period

Q1 2025

Reported EPS

1.58

Implied Move 1d

4.55%

Transcript

10m 52s

I'm joined by Robin Vince, our President and Chief Executive Officer and Dermot McDonough, our Chief Financial Officer. As always, we will reference our quarterly update presentation can be found on the Investor Relations page of our website at bny.com. I'll note that our remarks will contain forward looking statements and non GAAP measures. Actual results may differ materially from those projected in the forward looking statements. Information about these statements and non GAAP measures is available in the earnings press release financial supplement and quarterly update presentation. All of which can be found on the Investor Relations page of our website. Forward looking statements made on this call speak only as of today 04/11/2025, and will not be updated. With that, I will turn it over to Robin.

11m 38s

Thanks, Marius. Good morning, everyone. Thank you for joining us.

11m 42s

I'd like to start with a few broader comments Dermot takes you through the financial results for the quarter. Reflecting on the operating environment, while there were clear signs of optimism at the beginning of the year, we have now seen a rapid and significant reversal of sentiment driven by uncertainty about trade and fiscal policies which added to existing tail risks, including a variety of geopolitical tensions and conflicts. Last week's tariff announcements were clearly part of a broader strategy and an effort to reset trade relations between The U. S. And the rest of the world. This is an attempt at a very fundamental change and while last week's announcements provided an initial baseline, we should expect that negotiations will take time and it is likely that a clear final pick picture won't be reached for a while, a view reemphasized by Wednesday's news on a three month pause and the market volatility. We saw again yesterday. The read through of this uncertainty into both capital markets and the real economy creates elevated risks in the near and medium term. In times like this, being positioned conservatively, with balance sheet strength and operational resilience allows us to remain focused on serving our clients and continuing to execute on the ongoing transformation of BNY into a more platforms oriented company.

13m 16s

Turning to the quarter and referring to Page two of the quarterly update presentation, we delivered a very solid financial performance in the first quarter. Earnings per share of $1.58 were up 26% year over year on a reported basis and up 22% excluding notable items. Total revenue of $4,800,000,000 was up 6% year over year. Expenses around the company remained well controlled up 2% year over year. Taken together, we delivered another quarter of meaningful positive operating leverage, three forty six basis points on a reported basis and two sixty one basis points excluding notable items. Our pre tax margin improved to 32% and our return on tangible common equity improved to 24%. As I've noted before, BNY plays a central role in global markets. Powering our clients with platforms across custody, security settlement, collateral payments, trading wealth investments and more in over 100 markets around the world. Notwithstanding the current environment, we continue to see a meaningful opportunity from our work to better align our ourselves as an integrated financial services platforms company. Our transformation strategy includes both a new commercial coverage approach and our strategic platforms operating model. Which together are designed to enhance the client experience and enable greater agility.

15m 3s

The execution of this strategy is a significant exercise in change management. Which requires hard work, and takes time but our teams around the world have embraced the opportunity and we are making progress. This past quarter marked the first anniversary since we started the phased transition into our new operating model. And just one year in, we have more than half of BNY working in this new way. Already we are starting to see how this transformation can drive top line growth with greater scalability. For instance, over the past year, our trade finance team is processing trade loans 60% faster Our enterprise onboarding team is also working faster while seeing a more than 30% increase in onboarding volume. And our payments team has tripled the number of currencies we offer our bank clients to support consumer activity. Complementing our platform work and building on the momentum with which we entered the year, our new commercial coverage model is proving increasingly in enabling more integrated client solutions from across the entire company. The first three months of the year represented our strongest sales quarter on record. The number of clients who bought from three or more lines of business has increased by 40% over the past two years and we continue to see outsized sales growth with those multi line of business clients.

16m 44s

In just one example, a large privately held multinational company where BNY has acted as custodian for the pension plan and corporate cash portfolio, where we provide corporate trust and debt capital market services and we provide wealth management to the company's senior executives. We recently expanded our relationship to also include supporting the company's collateral needs, and managing short term cash through our liquidity direct platform. As I've said before, effectively cross selling the breadth of our platforms in this way and at scale represents the single most compelling growth opportunity for our company. As an institution with a long history of innovation, we have not forgotten that delivering new solutions is another important way for us to be more for our clients and to drive top line growth. We recently welcomed Carolyn Weinberg to the company as a member of the Executive Committee. She is now our Chief Product and Innovation Officer. Many people across our organization are focused on innovating new capabilities, instant payments, digital assets, wealth tech, private markets, collateral, liquidity, all examples of domains where we are innovating. The addition of Carolyn in this new role will increase our leadership bandwidth to drive innovative new commercial opportunities and find new ways to leverage our platforms and data for client solutions.

18m 22s

While on the topic of innovation, I also want to take a moment to specifically call out the opportunity we see from AI at BNY. We've been taking a platform based approach to AI capabilities building and deploying solutions at scale with resilient responsible guardrails throughout. We believe that our AI platform is going to be an important advantage for us as a large language model agnostic design leveraging frontier models from multiple leading providers. To that end, in the first quarter, we announced a multiyear agreement with OpenAI giving BNY access to cutting edge tools and working with OpenAI to advance AI use cases in financial services. Over 80% of our employees have completed the prerequisite training to access ELISA our AI platform.

19m 17s

And more than 8,000 of them are already experimenting with personal AI agents honing the skills they need to use AI effectively. To date, we have deployed more than 40 AI solutions into production. With a significant additional number at various stages of building and testing. Collectively, we expect these to drive productivity gains improved risk management and to provide meaningful leverage to our people in the future. We strongly believe that by empowering our people with AI to do what we do better every day, we will harness great benefits over the coming years. Before I hand the call over to Dermot, I want to close where I began. While the outlook for the operating environment has become more uncertain, we are prepared for a wide range of macroeconomic and market scenarios. Our ongoing work to operate BNY as a more platforms oriented company combined with our highly capitalized liquid and lower credit risk balance sheet positions us to manage dynamically and act as a source of strength as we support our clients in navigating the current environment. I'd like to thank our people around the world for bringing intensity and excellence to drive us forward as One BNY.

20m 44s

And with that, over to you Dermot.

20m 48s

Thank you, Robin and good morning everyone. I'm starting with our consolidated financial results for the quarter on Page three of the presentation. Total revenue of $4,800,000,000 was up 6% year over year and excluding notable items total revenue was up 5%. Fee revenue was up 3%. That included 6% growth in investment services fees in our Security Services and Marketing Wealth Services segments driven by net new business and higher market values. Investment management and performance fees were down 5% driven by the mix of AUM flows an adjustment for certain rebates. Partially offset by higher market values. While not on the page, I will note that firm wide AUCA of 53,100,000,000,000.0 were up 9% year over year. Reflecting client inflows higher market values and net new business. And assets under management of $2,000,000,000,000 were flat year over year as higher market values were offset by cumulative net outflows. Foreign exchange revenue was up 3% year over year driven by higher spreads on the back of higher volatility. Investment and other revenue was $230,000,000 which included a $40,000,000 disposal gain and notable item in the quarter. Net interest income was up 11% year over year driven by the reinvestment of maturing investment securities at higher yields.

22m 23s

Partially offset by changes in deposit mix. Provision for credit losses was $18,000,000 in the quarter, reflecting reserve increases relating to commercial real estate exposure. Expenses of $3,300,000,000 were up 2% year over year driven by higher investments and employee merit increases partially offset by efficiency savings. Taken together, we reported earnings per share of $1.58 on both a reported and on an operating basis. Excluding the impact of notable items, earnings per share were up 22% year over year. Our pretax margin was 32% and our return on tangible common equity was 24% in the quarter. Turning to capital and liquidity on page four. Our Tier one leverage ratio for the quarter was 6.2%. The sequential increase reflects capital generated through earnings preferred stock issuance and improved accumulated other comprehensive income partially offset by capital distributed through common stock repurchases and dividends. Our CET1 ratio at the end of the quarter was 11.5% The sequential increase reflects the before mentioned increase in capital partially offset by higher risk weighted assets. Over the course of the first quarter, we returned approximately $1,100,000,000 of capital to our common shareholders, representing a 95% total payout ratio year to date. With regards to liquidity, consolidated liquidity coverage ratio was 116% and the consolidated net stable funding ratio was 132%.

24m 15s

Next, net interest income and balance sheet trends on page five. Net interest income of $1,200,000,000 was up 11% year over year and down 3% quarter over quarter. The sequential decrease reflects changes in balance sheet size and mix partially offset by the continued reinvestment of maturing investment securities at higher yields. Average interest earning assets decreased by 1% sequentially. Including lower cash and reverse repo balances partially offset by higher investment securities and loan balances. Average deposit balances also decreased by 1% sequentially reflecting lower non interest bearing balances compared to the seasonally strong fourth quarter. Average interest bearing deposit balances remained flat. Turning to our business segments starting on page six. Security Services reported total revenue of $2,300,000,000 up 8% year over year. Total investment services fees were up 4% year over year. In asset servicing, investment services fees grew by 5% reflecting higher market values and net new business. And in Issuer Services, investment services fees were up 2% driven by net new business in Corporate Trust. In this segment, foreign exchange revenue was up 10% year over year driven by higher spreads on the back of higher volatility. Investments in other revenue of $140,000,000 in the quarter included the $40,000,000 disposal gain that I mentioned earlier.

26m 2s

Net interest income for the segment was up 8% year over year. Segment expenses of $1,600,000,000 were up 3% year over year driven by higher investments revenue related expenses and employee merit increases partially offset by efficiency savings. Security Services reported pretax income of $7.00 $8,000,000 up 20% year over year and a pretax margin of 31%. Onto Market and Wealth Services on page seven. In our Markets and Wealth Services we reported total revenue of $1,700,000,000 up 11% year over year. Total investment services fees were up 8% year over year. In Pershing, investment services fees were up 4% driven by higher market values and net new business. Net new assets were $11,000,000,000 in the quarter, we started off the year with a meaningful renewal from Cambridge Investment Research a long time client and a growing independent firm. In Clearance and Collateral Management, investment fees were up 10% driven by broad based growth in clearance volumes and collateral balances. And in treasury services, investment services fees were up 14% driven by net new business. Net interest income for the segment overall was up 17% year over year.

27m 34s

Segment expenses of $866,000,000 were up 4% year over year driven by higher investments and employee merit increases partially offset by efficiency savings. Taken together, our Marketing and Well Services segments reported pretax income of $816,000,000 up 20% year over year and a pre tax margin of 48%. Turning to Investment and Wealth Management on page eight. Our Investment and Wealth Management segment reported total revenue of $779,000,000 down 8% year over year. Investment management fees were down 4% year over year driven by the mix of AUM flows and the adjustment for certain rebates partially offset by higher market values. Segment expenses of $714,000,000 were down 4% year over year driven by lower revenue related expense and efficiency savings partially offset by higher investments. Investments in wealth management were reported pretax income of $63,000,000 down 41% year over year and a pre tax margin of 8%. As I described earlier, assets under management of $2,000,000,000,000 were flat year over year. In the first quarter, we saw $18,000,000,000 of net outflows driven by index cash, equity and multi asset strategies partially offset by net inflows into fixed income and LDI strategies. Wealth Management client assets of $327,000,000,000 increased by 6% year over year driven by higher market values and cumulative net inflows.

29m 20s

Page nine shows the results of the Other segment. I'll just note that in this segment, the sequential improvement in both revenue and expenses reflects the absence of net losses on sales of securities recorded in the fourth quarter as well as lower severance expense in the first quarter. I'll close with a few comments on the financial guidance for 2025 that we provided on our earnings call in January. While it is clear that the outlook for the operating environment has become more uncertain, our financial guidance and with it our determination to drive positive positive operating leverage a wide range of scenarios remains unchanged. That means we continue to expect full year 2025 NII to be up mid single digit percentage points year over year. We continue to expect some fee revenue growth, of course, market dependent. And we continue to expect approximately 1% to 2% year over year growth in expenses excluding notable items. We also continue to expect our effect effective tax rate for the full year 2025 to be in the 22% to 23% range. Considering our 20% tax rate in the first quarter, that means approximately 23% to 24% for each of the remaining three quarters of the year.

30m 45s

And we continue to expect to return approximately % plus or minus of 2025 earnings over the course of the year. I'll repeat what I said in January. We continuously manage the pace of our buybacks considering macroeconomic and interest rate environments balance sheet growth and many other factors with a conservative bias. To wrap up, BNY posted another set of solid results in the first quarter which demonstrate our consistent execution and delivery. On the back of our strong balance sheet, we are focused on supporting our clients in navigating the cross currents of this uncertain operating environment, all the while continuing to drive us unlocking the opportunity embedded in our company. With that, operator, can you please open the line for Q and A?

31m 35s

Thank you. As a reminder, we ask that you please limit yourself And our first question will come from Ken Usdin with Autonomous Research. Robin, Dermot, good morning. Another really good quarter in terms of the NII generation and good deposits. I know you guys have talked about how deposit stability is important to NII generation. Know it's early in the year. We have all this uncertainty. Obviously, a better start than the run rate guide would would imply, But just wondering, just what do you think about just the world of deposits? Do you see any benefits in an uncertain world in terms of flows like to safety? And just how we should think about some of the moving parts going forward? Thanks.

32m 33s

Thanks for the question. Look, Q1 as it relates to deposits, was right in line with our expectations in terms of balance and mix shift Q4 is seasonally strong quarter for us as it relates to overall balance So we saw some of that moderate in Q1. Now, with the elevated uncertainty and volatility in the markets, over the last couple of weeks, we have seen a little pick up in deposits overall, but not in a meaningful way that we would have seen two years ago in the regional bank crisis. So, we haven't yet seen that kind of port in the storm flight to quality. But people know the strength of our balance sheet and the strength of our liquidity and capital. So we have seen a little bit of tick up, but not in a way that we saw two years ago.

33m 26s

Okay. So we'll just see if that holds up and go from there. Just bigger picture about just the environment we're in. You have a lot of different businesses, and this is the type of environment where we see a lot of activity potential, I guess, and it was notable to see FX a little softer. But I'm just wondering how do you guys see this world in terms of just businesses that either get more active or potentially less active based on just how clients act and where you expect to see kind of money flows as you could think about how past cycles would would be inference to this one? Thanks.

34m 4s

Yes, Ken. I'll take that one. So I think there it's fair to see the phases of these types of events as sort of split into two. So there's one which tends to be a little bit more frenzied activity in the marketplace. That's what we've been seeing over the course of the past ten days or so in terms of activity. And so that does give rise to higher volumes. And we're seeing that across our platforms for sure. Now we're not a huge trading firm like some others out there, but we see it in terms of high counts on clearing volumes in terms of activity liquidity platforms, collateral activity, all the places where you'd expect it to be where we're really capturing the fact that market volumes are up. And to Dermot's point earlier on about liquidity, the reason why we probably haven't seen a big flight into us at this point is because a lot of the activity has been delevering by people who've been raising cash to pay lines not raising cash just to have more dry powder on the sidelines. It hasn't yet been as much a long only liquidation, which tends to raise cash and that cash often ends up on our balance sheet.

35m 18s

So it's sort of a little bit of a phasing thing. And then what can happen and we'll have to see if that does happen, but as things calm down, at some point it causes CEOs and leadership teams to reflect on how do they want to think about the strategic consequences for their business and that's where our rentable scale and our platforms and the fact that we have all of these broad capabilities built on this sort of rock solid foundation That's what allows us to then capture potential follow on opportunities where people say you know what there are things I used to do for myself that I'd now rather someone like BNY does for me using their platforms. And so that's how I think about the world right now.

35m 59s

Ken just to clarify you mentioned softness in FX is up 3% year over year. We're kind of the numbers we present there are the firm wide numbers. When you kind of go underneath the hood on that and talk specifically about our markets business that was a solid year over year uptick. Whereas on the other side, our corporate treasury department are doing FX placements and the other side of that is is reflected in NII. So you're seeing a firm wide view there as opposed to a specific markets view and the markets view for us year over year was solid.

36m 36s

Got it.

36m 37s

Thank you.

36m 39s

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

36m 45s

Hey, good morning. Thank you for the question as well. Starting with a bit of a strategic question also. Just kind of thinking about the position of the bank, obviously very capital base, lots of liquidity at times of uncertainty and dislocation. There might be some interesting inorganic opportunities that may come up time and again. How are you thinking about that? Maybe it's too early, but just want to your sense for appetite for M and A if something compelling comes along? And if there are areas of particular interest where inorganic growth might make sense?

37m 16s

Yes. Thanks, Alex. Look, we're carefully looking at the opportunities. That's not a spot moment in time thing. It's just a sort of the rhythm as this management team has been driving through things over the course the past two and a half years, we think we've got a lot of things under control in terms of running the company better. You can see us driving now on the sales side. You can see us driving the execution platforms. You can see the innovation. And so we're always going to be out thinking about what could be additive to our platform. We just think the responsible thing to do for shareholders. Now we're going to what hasn't changed is maintaining great discipline. In acquisition we need to check all of the boxes of like clear alignment with our priorities, strong cultural fit. And I underline that because that is important to us and attractive financial returns obviously. But you're right, times like this can present opportunities and we'll be thoughtful about it. And I feel that we we've practiced some of this with our Archer acquisition that wasn't huge. But nonetheless, it was a sort of a small to medium sized thing.

38m 21s

It was a capabilities buy, but we're going through all of the training processes internally to understand how to look at and then purchase and then integrate something like that a first class way And then the final thing I'll say is Platform's operating model is quite additive to our capability over time to be able to I think be a better integrator because it creates the roadmap for us internally on how to take things and plug them in better.

38m 55s

Got you. Thanks.

38m 56s

Then my follow-up is actually double clicking into your earlier response to Ken's question around deposits. So up a little, not a ton so far in April. Can you comment also on the mix between interest bearing and non interest bearing in April? And then ultimately, as you sort of think about a more normalized percentage of noninterest bearing deposits, you guys are at 17%, I think, now. Even pre COVID, so kind of before the spike in industry wide liquidity, you guys were running north of '20 How do you think about that sort of run rate mix going forward in more sort of uncertain environment? And if in fact you enter in a recession, what would that likely look like?

39m 36s

So I guess there are a lot of questions in that follow-up question, Alex. But to think about the NII a second and the reconfirmation reconfirmation of the guide of 5%, which we feel pretty good about. I think it goes back to something that we discussed on previous calls, which is that very, very strong joined up partnership between the CIO, the treasurer and our deposit desk. And a lot of the work that drives our confidence around NII for this year are the actions that we took last summer over after Jackson Hole where we kind of immunized the firm for 2025 NII. So a lot of work on the asset side. In terms of NIBs, as it relates to like as rates have trended higher, you would expect a reasonable amount of cash sorting to go on and people optimize for yield. We don't lead with deposits Clients come to us to do other activities in the firm and with that comes deposits which then turn into operational deposits So in terms of the overall guide of like the two eighty one number which we have seen tick up a little bit this quarter, and it is a seasonal business.

40m 57s

Q4 is our strongest quarter for deposits typically. Then Q1 is a little bit less than that. Q3 is our seasonal low. So there's nothing that we see kind of changing our view of the overall deposit mix for the balance of the year, which kind of gives us a lot of confidence around the guide that we gave you. Great. All right. Thank you, guys.

41m 23s

And our next question will come from Mike Mayo with Wells Fargo Securities. [indiscernible] I guess my first question is, no good deed goes unpunished. So I do your revenues were up 5% year over year and your headcount is down 2%. But so you raised the bar for yourself, but did note that the non comp expenses are growing mid single digits year over year. I'm wondering how much that might continue And also, the impact on revenues from the decline of noninterest bearing deposits. Is that seasonal or is that something that's just result of the macro environment? Thanks.

42m 7s

So look, Mike, I think our ability to deliver positive operating leverage through the cycle is the North Star [indiscernible] I think this is the fifth quarter that we've delivered consistent positive operating leverage. And hopefully you are beginning to give us credit for being a financially disciplined, well run company where we have got our expenses under control over the last couple of years. While at the same time making investments in the strategies that are powering our top line growth and our efficiency growth. And so you're beginning to see those investments paying off. And I'm pleased that you highlighted the headcount number, which just generally means that we're able to do more with less in a digitally empowered way. And as Robin mentioned in his prepared remarks, we still haven't really unlocked the power of AI. So when you think about where AI is going to be on our platform as financial platform company where you see 20% of the world's investable assets flowing through our pipes, When we kind of get the AI strategy integrated into the strategy of the firm, we see a lot of dividends coming in that And then you didn't answer the the non interest bearing deposit question, which might not be answerable, but just any thoughts there?

43m 39s

So look, non interest bearing deposits, I think are roughly in line with where we don't really expect them to go meaningfully higher or meaningfully lower from where they are now.

43m 50s

We which reinforces our guide like so NII is made up of what we've done on the asset side and what we think the forecast is going to be in terms of the mix and the overall level of the deposits. At the end of the year, we ran about 35 different scenarios. We did the same thing at Q1. We feel we've kind of cut the tails off the risk of what we believe the reasonable outcome of NII is going to be. And to give you a little bit of an indication like up down if the Fed were to cut rates by 50 basis points tomorrow wouldn't really impact how we think about NII for the balance of the year.

44m 28s

That's great. And my second question is for Robin. I saw your on CNBC and you talked about the hard data is good, but the soft data is bad. And they'll converge one way or another. I guess, Mike, it's unanswerable also, but how long can this go on before things tip, like the hard data goes to soft data, the soft data goes back to hard data.

44m 52s

Do we have one month as it country and economy, one month, three months, six months, twelve months? Kind of what's your sense there? And what is the risk of being an international company and being a services company and potential retaliation there? I know how you think or frame that, but I'll take any thoughts you have. Thanks.

45m 12s

Sure. I love that you ask unanswerable questions. But nonetheless, I'll give them both a whirl. Okay. So, first of all, yes, this point about and we saw it again today with the confidence taking a little bit of another beating in the survey data that was released this morning. It is. It's going down and it's not surprising because if you're a CEO, you've got an uncertain environment potentially out over the horizon. It doesn't help you thinking about longer term commitments including building including making commitments to sort of new initiatives whatever the case may be. And if you're a consumer, the fear of our price is going to go up what's it going to mean. Obviously there's also a jobs angle on all of this as well. Could the economy tip into a recession? Those will legit questions that a consumer would have and that's going to be a little bit of a dampener of confidence. So, I think there are plenty of reasons to think that that will continue to be low.

46m 7s

And my point I talked about this before was that the two things at some point just kind of have to converge and the longer that it goes on, the greater the probability that the facts converge down to the sentiment as opposed to if for some reason we suddenly had and we suddenly had a sense of confidence being able to come back then it would converge back up the facts and we'd be in a better space. But I think with a ninety day pause on tariffs and then probably a fairly long tail on full emergence of a clear picture. I think you have to be a little bit pessimistic here about how the economy is going to evolve over the course of the next six to nine months. I'd love to be wrong on that one, but I think as every day goes by, call it this trade has negative carry. To be able to hold. So we'll see. On the second question, that you asked internationally, look, we are a global firm. 40% of our revenues come from outside of The U. S. But we're also a firm that provides really critical services to our clients.

47m 9s

And so clients always have choices and we have to earn their business every single day with how we behave and how our platforms operate. But it is this combination of having this reputation of being trusted having this rock solid underpinning, which as you know creates this port in a storm capability plus the fact that we do things that are really important Clearing treasuries for most people is not an optional activity. Having access to a global collateral platform that lets your business operate more effectively, maintaining your access to the rails of the financial system. Those are very, very core significant things. And so I'd like to think the combination of the trust, the reputation and then the day to day operation will cause our clients to continue to see value with us. But obviously that's something that we'll have to see how it evolves.

48m 2s

Great. Thank you. And moving on to Ebrahim Poonawala with Bank of America.

48m 12s

Hey, good morning. I guess maybe, Robin, just to that last point, Hiderman and Robin, you mentioned the clearing of treasuries.

48m 23s

You have a very deep sort of understanding of the market infrastructure There's obviously concerns around the treasury market, what's happening, whether the Fed needs to intervene. Just give us a sort of a preview into what you've seen over the last few days things working as smoothly as you would expect? And what the risk looks like there or the need for a Fed intervention?

48m 46s

Sure. So look, I would separate the treasury market into a couple of different pieces. The rails of the system are working really well. Are seeing high volumes, yes, for sure, but everything is functioning really well and we have a, as you point out, very good view into that. There was a little bit of a tail in the three year auction, of course, as was well publicized. Earlier in the week, but then we had a very solid ten year auction and and long bond auction as well. But what has evolved and this is not unique to treasuries in any way. We've seen it in equities as well is that the depth at the top of the order book has reduced. And so bid offers spreads have widened. The amount of risk that can be moved at the top of the book is much smaller. You have to go deeper into the book to be able to move blocks of risk. And that is true in the treasury market as it's been true in equity markets. And we've seen all the things that you'd normally There's a little bit of dislocation with ETF NAVs versus the underlies.

49m 47s

Those types of things are all indicative of people trying to move blocks of risk and there's a bit of a consequence to it in terms of liquidity. The Fed will have to will make their own decisions about how they think about things. But if you look at history, what history suggests is that they intervene when they see markets that become fundamental fundamentally dysfunctional or dislocated where it's not possible to move risk and the markets really aren't functioning properly. And that's absolutely not what we have seen this week. Markets are working fine. We're just seeing situations where liquidity is reduced and therefore people are having to pay up. And I think that's the distinction that I'd make for you.

50m 28s

That's helpful. And I guess a separate question. Maybe not timely given all the macro concerns, but your Global Head of Digital Assets testified in front of Congress with regards to the stablecoin legislation. That's a huge priority for this administration. Just give us a sense of how we should think about what a stablecoin legislation BNY had relationships with Circle, think, going back a few years ago. What all of that means in terms of your ability to play in digital assets? Are there meaningful implications on revenue growth, deposits that we should be thinking about?

51m 3s

I think the short answer is we don't see it as a near term big revenue item on the list, but we've always seen digital assets as a long term play whether it's the creation of new stuff or new packages of stuff Look, we're in the business of looking after things in one of our platforms. That's our custody business, dollars 53,000,000,000,000 world one. And so if there's going to be new stuff in the world, we want to be able to look after it. But then more broadly, the tokenization and leveraging the tech technology to find better ways of being able to move assets through the system more efficiently, less cost, less infrastructure required to do it. We actually think those will be plus net net over time for us. And so our has been pretty simple, which is we've been very engaged with all of the participants in the system. You mentioned Congress and the regulators, but it's true with the clients as well. We provide a lot of our traditional rails to these new players, and that's been a great way to build relationships You mentioned one particular client that we do exactly that for.

52m 9s

Now, I think it's very positive that Congress is looking at this question because stablecoins are or some form of digital currency on chain is necessary in order to be able to make on chain transactions efficient. Bitcoin is a more volatile asset. And so it doesn't lend itself as well to good DVP behaviors of a settlement So we see stablecoins being one way of being able to facilitate that. So being able to do sort of transitions between the fiat currency world and the chain world seems to be a sensible place for us to play. It's great to see that legislation proceeding. But then behind it is also a market bill. And that would set really the rules of the road to terms of engagement for how different participants can participate in digital assets. I think the very helpful thing from this administration has been to sort of create more of this level playing field and say it's a new technology We don't want anybody to be disadvantaged. We want everybody to be able to participate and let's do what The U. S. Is so good at which is innovate and define global standards. And so that's where we sit today I wouldn't have this huge revenue item in the 2025 P and L. But that isn't to undermine its promise over time.

53m 23s

Thank you.

53m 27s

And we'll take a question from David Smith with Truist Securities.

53m 33s

Hi, good morning. A couple of questions on NII. It looks like NII from repo and fed funds increased again this quarter. Do you see this sustaining Is there like expectation for a meaningful drop off? Just help us frame that. And then secondly, your deposit beta was really high around 90% again this quarter. Obviously, it's a very fluid rate backdrop, but based on what you're seeing, when might this start to level off since I think last cycle your beta was around 75% or 80% for the cumulative cycle?

54m 11s

So, thanks for the question. Look, on the repo side part of NII higher than expected and we've invested quite heavily in that over the last couple of years and we feel it's an important business for us as it relates to clients and delivering products to them. But it does it's quite small in the context of our overall NII. It's only about 5%. So, think the business held held in nicely. It's doing well. The balances are higher. And spreads are a little bit tighter. So there's kind of a couple of puts and takes there, but in the context of our overall NII, it's quite small. In terms of the beta question, look, this is a question I guess that's come up on a lot of calls over the last several quarters in that we deal with a sophisticated client base and we kind of pass on the rates as we get them. And so our kind of betas have always been quite high like in the low to mid-80s and that's kind of where we see the book. And so the marginal beta is around 100%. And if rates were to go down, we'd see the betas to perform in line with the way on the way up.

55m 28s

So that's kind of roughly how we see it.

55m 31s

Thank you. And then just in terms of how the macro environment is affecting client activity, do you find clients are less willing to move around for one provider another in a turbulent environment like this or the custodians with differentiated become more attractive to a large enough extent that people will still consider moving where they hold funds.

55m 53s

I think it depends on the platform. I mean this is really where the breadth of our platforms is a real advantage for us David because we have these platforms that are higher frequent in terms of volumes and where things like collateral management, things like treasury clearing things like global clearing, dollars 1,600,000,000,000.0 ecosystem. In terms of liquidity direct. And so there's absolutely the ability to move around there. We just have these great platforms and people gravitate to us at these at these times given what we have. And then there are the longer burn opportunities where people are reflecting on how to run their businesses in the best possible way. And I don't think at this point, it's it's the environment where you kick off something super big that was going to take a lot of distraction of leadership time But most of the work and most of the platforms that we provide they don't really fit into that category. And so I don't see a reason why we're not sort of business as usual in terms of the environment today, but we'll have to see how it plays out. If we're going to have up 78% in the stock market every day then obviously that creates chilling effect almost and an exhaustion effect almost by definition.

57m 7s

But I don't think we're at this point where for our businesses the uncertainty really cascades through into client choices today.

57m 17s

The point I would add on to it is at some level it does create opportunity for us as well as we make our platforms better and as clients look to optimize for their individual environments, it's going create opportunities for us to help our clients do run things better for themselves. So like I would feel quite optimistic our ability to serve clients in a better way as a result of our transformation that's going on. And also a significant part of our revenue is recurring. Once we have clients on our platform, they tend to stick with us. And at times like this that is a tremendous thing to have.

58m 1s

Thank you.

58m 4s

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

58m 9s

Hey, good morning folks. [indiscernible] the platforms question going back to Robin, think what you talked about in your earlier remarks, over half of the BNY is now on the platform model.

58m 26s

And then you talked about the cost the efficiencies and you cited some examples. The question would be is, now that you've got half of the firm on the model, are you are the efficiencies and the cross sells and if I can throw AI in there as well, are these contributions exceeding your expectations so far? And if that is so, would that either translate into lower expense growth or would you tend to channel those savings into reinvest them in growth initiatives?

59m 4s

Well, Brian, I'm just going to take you back to some comments that I made a few quarters ago, which is just a reminder of the fact that we've been simultaneously investing in the short, medium and long term. We did this thing, it's now in the past, but Project Catalyst which was designed to be able to have this 1,500 ideas that were going to be able to save us money on a run rate basis. 2025 is actually first full year where we have the full benefit of Catalyst in the number. So we're still benefiting from some of those short term actions that we took a little while back. And then simultaneously, we've been investing more and Dermot talked about this in to Mike's question earlier on. Actually the gross numbers in terms of the savings and the investments, both of them are meaningfully higher than they've been in past past years and sometimes it's a little hard to see that. Under the hood. But this investment into platforms operating model it's a means to an end. We think that actually people working in this model provide some immediate benefit The agility and the ways of organizing teams create some efficiency and some more sort of pointed ability to get things done quicker with a little bit less bureaucracy and sort of nonsense getting in the way.

1h 21s

But it's really a means to an end, because the objective of operating in the platforms has always been we will be able to do more business and we'll be able to do it better and quicker, risk management benefits, efficiency benefits It's just got a lot of things that really suit us. And for that, you don't really see those benefits until you've got a platform operating for probably at least six to twelve months to start to see that. And we in fact had a great example ourselves internally where one of our earliest entrants into the platform's operating model is starting now to rethink and reimagine how the infrastructure and systems underlying their platform operate. How do those processes work across the company? And it took a year for them to be in the model before they've really been able to set up their store. So that's a long way of saying I think the benefits of this are very much to come. They're more of a 26 and a 27 story, although there's some in 25 and probably through into 28. And then we see AI as the longer term thing to layer on to that not too much benefit in 2025, but we've clearly started But that layers in I would say 2026, 2027, 2028, '29 through the end of the decade.

1h 1m 38s

And so it's this choreography that we've laid out as a leadership team to the different things that we're doing and how they will benefit us at different periods of time. But we got going on all of them early. And that was the key.

1h 1m 53s

From the CFO lens, point I will give you a little bit of history lesson. If you kind of go 2022, expenses were up 08/2023 they were 02/2024 flat to slightly up due to the revenue growth outperforming expectations. And this year we're guiding 1% to 2% And all of the projects that Robin referred to are feeding into those numbers. They're not something distinct and separate. So all of the things that we're doing gives us a lot of confidence be able to give you good guidance. And ultimately the journey never ends because we're becoming a much better run company the flywheel of initiatives is just going to outpace the efficiency and that's going to lead to more growth opportunities.

1h 2m 47s

That's great color. I think you wanted to convert the entire company by the end of the year on the platform's model. Is that correct? Or is that into 2016?

1h 2m 59s

Yes.

1h 3m

Yes. So I would think like by this time next year when we do this call, all things kind of going according to plan, we would we would say the firm is fully operating in the new way of working. I would double down on what Robin said. We can see real tangible benefits from the people who went first versus the people who are just starting now. And it's a mindset change which is really people showing up in a different way in the firm they're much happier in the new way of working. So culturally, it's very powerful.

1h 3m 40s

That's great color. Thank you.

1h 3m 45s

And we'll take a question from Steven Schuback with Wolfe Research.

1h 3m 52s

Hi, good morning and thanks for taking my questions.

1h 3m 55s

Good morning, Steve. So hope you guys are well. So I have a couple of questions on the Pershing business. There were some press coverage noting recent changes to the sharing of cash economics with some of your RIA and IBD clients. I was hoping you could just speak to what informed the pricing changes the feedback you've gotten from the clients thus far? How we should think about any potential benefit to NII as you retain more of those spread economics?

1h 4m 24s

So it's something that we're look, it's something that we're continuing to do. We've opened up our platform. We want to offer our clients a lot of choice at competitive rates. We've not really made any significant changes. And we kind of keep it under review because the math the backdrop of the environment is so fluid. But in terms of the overall context of the NII, and how it feeds into the 5% guide, it's de minimis.

1h 4m 56s

That's helpful context there, Amit.

1h 4m 58s

For my follow-up, just on the NNA outlook in Pershing, the flow rate, it was a touch softer versus some of the recent call it, mid single digit or better NNA flows that you've been seeing in recent quarters.

1h 5m 10s

Recognize there's a lot of volatility and uncertainty in in the current backdrop, but I was hoping you could just speak to what drove the moderation in flows, whether you expect that to amid the recent volatility? And if you could also clarify the timing and impact of the pending Atria departure just to make sure we have all the moving pieces accounted for?

1h 5m 31s

So as it relates to the purging, so on the on the positive side, lot of volume on the platform Robin talked to different platforms and the uptick in volume over the last couple of weeks. So we see a lot of volume in terms of transaction activity flowing through the Pershing pipes. Which is good for us. As it relates to NNA growth and opportunity, it's like it's a choppy environment I would put it down to timing. We had some decent sized mandates that could have signed in Q1 slipped to Q2 and that's like just more about the timing of when stuff comes on. So So from quarter to quarter, expect we'll see a little bit more choppiness of that But on the more positive side, I would say we continue to see kind of strong client uptake in the pipeline for WOVE. We gave a guide in January which was for 2025 roughly 6,000,000 to $70,000,000 We still feel very good about that guide. We've now got 52 clients on the platform We signed 22 contracts in Q1. And so now we're kind of building up ahead of steam in terms of client migration onto the platform.

1h 6m 43s

And so that the client's excitement about that product continues to kind of give us confidence about saying mid single digits through the cycle. As it relates to NNA? That's right.

1h 6m 55s

The Atria impact?

1h 7m

We don't necessarily disclose individual transactions, but coming to a store near you this either next quarter or the quarter after.

1h 7m 12s

Understood. Well, thanks so much for taking my questions.

1h 7m 18s

And we'll take a question from Betsy Graseck with Morgan Stanley.

1h 7m 24s

Hi, good morning.

1h 7m 26s

Morning, Betsy.

1h 7m 28s

A couple of questions. One, just on the Treasury Direct Express program moving over to your platform. I just want to confirm that I already started and wanted to get a sense as to any thing you can share on how we should expect that's going to roll through and impact if at all visible? P and L?

1h 7m 50s

So I don't think that Betty the P and L won't be visible in terms of size or lumpiness. We're very excited to have won the business. It was really be honest with you that was a real strength of the platform operating model in terms of our ability bring the firm together to win that mandate. So that was a real kind of nice proof point for us that we were on the right track as it relates to the treasury service model. We expect it to ramp up in the latter part of this year. But in terms of moving the needle for the firm's revenues, it's just another happy client wanting to do business with BNY and it's going to come into the run rate latter part of this year, so it will be in the full year numbers next year.

1h 8m 34s

Okay. And then as I'm looking at the deposit and the SKU NIBIB, I thought in the past NIB you were thinking that might move down towards $44,000,000,000 and is that the case still or not? And if that changed, So we were a little bit higher than that. And so our current we kind of believe that it's going to roughly hang into the zip zip code that it's currently in, may moderate a little bit from here due to some cash sorting. We don't expect any meaningful change on it and that kind of feeds the 5% guide.

1h 9m 12s

Okay. And then you mentioned if the Fed cuts bps tomorrow, there's no NII impact. What What should we be keeping an eye out for that would drive an NII impact? Is it flattening of the curve, sharp flattening? Anything or you're good in any situation? I think under a wide range of situations for twenty five with the expect on the rate curve we're good. Obviously, something happens materially with levels of balances and mix shift that would impact it. But we've done a lot of analysis and so we feel reasonably good under a wide range of scenarios the NII is okay. [indiscernible] And that was a deliberate strategy Betsy because we really wanted to take the risk of 2025 sort of out of things and that was work that the team did last year because NII is obviously a very valuable contribution to our firm and we appreciate it as part of our overall operating leverage But as Dermot said earlier on, positive operating leverage is the north Star and we have other levers around of course fees. Now market is a variable, but it's remember our fees aren't only about market because they're also about volumes activity levels, wovers of software sale as well.

1h 10m 37s

And then we have the all important lever of expenses. Which is as Dermot and I both said, we've been spending a considerable amount of money on investments. We see nothing in the environment today to suggest that we should stop that. But given the fact that the total gross of savings and investments is bigger and is part of the 1% to 2% guide that Dermot gave you. It follows from that that we have choices underneath that if we needed them. So positive operating leverage the anchor NII is sure great, but like kind of it's all about the other stuff.

1h 11m 13s

Thank you.

1h 11m 16s

And we'll take a from Gerard Cassidy with RBC.

1h 11m 21s

Good afternoon.

1h 11m 23s

Dermot, can you share with us your thoughts about you talked about the immunization that you guys did and Robin, you just touched on it last year following Jackson Hole for this this year's NII, Would you consider doing something like that for 2026 as the year progresses Or was that kind of a once one and done kind of strategy?

1h 11m 47s

No, absolutely. Very much focused on '26.

1h 11m 53s

Active work and so yes, it's we're always looking at the markets. We're always looking how to optimize our balance sheet. The partnership between we call it the tripod internally is just really, really strong. And I think we'll feel good about the 2026 outlook when we come to talk about it.

1h 12m 19s

Very good. I think you guys touched on this. I apologize if you did, if I missed it. There's a lot of talk about regulatory change on the horizon specifically when it comes to the supplementary leverage ratio, which I think you guys in the past have pointed out to all of us that you're binding capital constraint. As Assuming there is relief where they exclude those treasury securities and possibly mortgage backed securities, from the calculation of the SLR. Can you share with us how that would impact the way you manage your balance sheet and the outlook for revenue should that change?

1h 12m 59s

Sure. Let me split the question into the two pieces. So first, the impact on us and it can get a little weedy here because there is actually three different leverage ratios. There's an ESLR which is the Fed's gift to take away. There is an SLR which is a three agency rule across the FDA the OCC and the Fed. And then there's a Tier one leverage ratio which there's some legal debate about whether or not the Fed has the ability to make changes to that, but it's really in Dodd Frank. And so that's the one that applies to all banks. We have a little bit of a different treatment on us given the nature of the businesses that we're in. But we are bound by Tier one leverage ratio and we've said that before. And so SLR can have some change but maybe not quite as much on us. But now let me take the other part of the question and just sort of respond to what's going on in the space. We've had a point of view for a long time that we actually think that leverage ratio was ill advised and it's not really about banks.

1h 14m 5s

It kind of came about to some extent out of the financial crisis is almost like in a moment of anger towards banks that existed at that point. But the problem is the casualty of the situation is markets because we want banks to be able to flex their size, particularly in cash on their balance sheet and in treasuries on their balance sheet. Remember the SLR penalizes a one day cash management bill, in terms of the balance sheet. And so it does not help markets when we take out one of the accordion flexes to be able to absorb treasury supply and we've probably been seeing that a contributor to treasury spreads being wider over the course of the past week. I don't see this administration or the incoming leaders into the agencies to want to continue to be in this gold plating business which is what some of these rules have been in The U. S. I see them in the business wanting to unleash the power of U. S. Capital markets and make sure that capital markets are working for The U. S. Economy and the banks are fully able to operate to support capital markets and make them run as efficiently as possible.

1h 15m 17s

Robin, thank you. Very insightful.

1h 15m 20s

Happy to do it.

1h 15m 24s

And we'll take a question from Jim Mitchell with Seaport Global Securities.

1h 15m 30s

Hey, good afternoon.

1h 15m 32s

Rob, I think maybe a broader question on organic growth. I think Rob you mentioned earlier that you might have had record new business wins. So there a way to kind of frame that in terms of percentage terms year over year terms? Just trying to think through [indiscernible] [indiscernible] the progress towards getting that organic growth rate up and where you stand today.

1h 15m 55s

Yes. Well, we tried to put one stat in my prepared remarks, we've got a few that sort of relate to this in terms of the increase I like as one good indicator and we talked about this in the last earnings call, the number of clients buying from three or more lines of business, our platforms, which as you know we have many increased by 40% over the past two years. And so that's actually the biggest driver which is having those clients who are doing two or three things with us do an extra thing And in fact the clients who do more with us and we again we talked about this back in January. The clients who do more with us tend to understand us better and tend to do even more things with us because they appreciate the breadth of the relationship. They appreciate how our platforms can link together and we can just be a more efficient ecosystem for them. I'll give you one example. If you do clearing with BNY and you do collateral with BNY, then in treasuries as an example the ability for us to link up the ecosystem around our liquidity direct platform, our collateral management platform world number one our U. S. Treasury platform world number one, The world number one in global custody.

1h 17m 19s

We can link those things up and those become book entry transfers on our custody ledger. And so that's just a more efficient way to operate and we see that linkage as we get better, operating as one firm deploying our commercial model, having clients understand how they can see all of those different platforms, there are actual more and more synergy benefits for them. So this is the we've said this all along. This is the single biggest avenue of growth for us is to have more of our clients do more of what we do. Then we add to that the innovation. We add to that finding new clients we add to that the megatrends that we talked about last time, But we are quite optimistic about the amount of runway we have under this heading.

1h 18m 7s

And look, if you go back and look at a script from two years ago versus a script today in terms of how we talk to the market. We're talking about more things with you. More products, Wove, Archer, our growth in ETFs, quite strong, which we haven't talked about today and also building out our infrastructure infrastructure and alternatives And Robin mentioned it in his prepared remarks, like the appointment of Carolyn Weinberg is a really important strategic step for us in terms of innovating around new products.

1h 18m 42s

Yes, absolutely. So I guess versus two years ago, is it fair to assume you seem even more confident in driving this improvement in still kind of early days? Is that a fair way to think about it? I would say that we've matured in this We originally, if you were to analyze our language over time, the theme is very much there. But our conviction around it has grown and importantly, we've moved it along the maturity curve. Originally, it was connecting the dots. Then it was one BNY mentality Now it's our commercial model. This is our first full year operating in our new commercial model under the leadership of our Chief Commercial Officer So we've been maturing the concept, but our vision of this is unchanged. But our conviction in it and the maturity, operation operationalization, repeatability embedding in this company is growing.

1h 19m 39s

Great. Thank you.

1h 19m 43s

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

1h 19m 50s

I was just looking for one wrap up number just even if it's just what you're conceptually thinking, because you're talking about all these revenue growth initiatives, products, platforms, processes and people and you talk about clients involving more than three lines of business, but then you also say there's some caveats, because markets will do what markets will do. So I'm just trying can help us out with our earnings models, but not for the next quarter, for the next three to five years. The main question is, what should be the core organic growth rate ahead and what has it been in the past?

1h 20m 24s

Thanks.

1h 20m 29s

So like I think that's a conversation for offline I would say Mike when you visit. But I kind of when I come in every day, I just I care about positive operating leverage consistently through the cycle which is made up of fees, NII and how we manage the firm as it relates to expenses. As it relates to fees, we make fees are of a couple of different components balances, volume, and other. And so, I feel a lot more confident today than I did two years ago in our ability to drive innovation drive execution and to do more with our existing client set. And also add new clients to the firm. That's just a journey we're going to be on and we're going to execute to a very high standard And so we kind of feel very good about our to do positive operating leverage through the cycle in good times and bad.

1h 21m 31s

And Mike I'll add to that just by saying that look if you step back I'm sorry, this is a little bit I'll give you the one number reminder and then I'll make a bit more of a philosophical comment. So look two thirds of our 6% fee growth in 2024 was market and current. And a third was organic. And that's good. But and that was a step up versus the prior year. But obviously, we're determined to see that grind higher. And so, if you take that as our aspiration then the question is do we actually have the right inputs Are we doing the right things that actually make that legitimate and plausible? So So number one, are we actually getting around operationally more with our clients? Are we actually covering them better? Are we actually driving out outcomes from them? That's important. Where's our trust and reputation? Do people worry about the firm? No, they're very confident. It's this point about platforms built on a very solid foundation. Making our balance sheet high quality, derisk, excess capital, high amounts of liquidity. That gives them confidence to be able to lean in. And all indications are that that is why happens when they have that reaction.

1h 22m 41s

And then critically, do we actually have the right products? And so this is where the breadth of the firm really matters. We're not a two trick or three trick pony. We're a dozen trick pony. We can do everything from investing investments and wealth to retail wealth to collateral management to clearing to payments to liquidity ecosystems etcetera. So, we have this breadth. And then the question is, can you actually operationalize the joining of these things together? And then do you have innovation? And so we think we're actually attacking the problem through all of those dimensions. And if we do that, we do it consistently and deliberately and relentlessly. Then we think we will win. And that's what we're doing.

1h 23m 32s

Well, was a comprehensive answer. Thank you very much.

1h 23m 37s

Thank you, Mike.

1h 23m 40s

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

1h 23m 51s

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

1h 24m 4s

Thank you. This does conclude today's conference. And webcast. A replay of this conference call and webcast will be available on the BNY Investor Relations website at 3PM Eastern Standard Time today. Have a great day.

Key Insights

BNY reported strong Q1 financial results: EPS of $1.58 (up 26% YoY), total revenue of $4.8B (up 6% YoY), and expenses up 2% YoY, resulting in positive operating leverage and improved pre-tax margin (32%) and return on tangible common equity (24%).
The company continues to execute its transformation into a platform-oriented financial services firm, with over half of employees now working under the new operating model, driving faster processing, increased onboarding volume, and expanded product offerings.
BNY is investing in innovation, particularly in AI, with over 80% of employees trained on its ELISA AI platform and more than 40 AI solutions deployed; a multi-year agreement with OpenAI was announced to further advance AI use cases.
The balance sheet remains strong: Tier 1 leverage ratio at 6.2%, CET1 ratio at 11.5%, liquidity coverage ratio at 116%, and a 95% capital payout ratio YTD; NII guidance for full-year 2025 remains mid-single digit growth, with expense growth expected at 1-2% YoY (excluding notable items).
Management remains confident in delivering positive operating leverage through the cycle, citing robust organic growth (notably a 40% increase in clients using three or more business lines over two years), ongoing efficiency initiatives, and resilience amid macroeconomic uncertainty; no material near-term impact expected from digital assets or stablecoin legislation, but long-term opportunities are recognized.

Recent Transcripts

BNY Mellon achieves 26% EPS growth and 6% revenue increase in Q1 2025.

BNY Mellon achieved record revenue and net income in 2024, driven by strategic transformation.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$15B	$16B	$16B	$17B	$18B
Cost of Revenue	$0	$0	$0	$0	$0
Gross Profit	$15B	$16B	$16B	$17B	$18B
Gross Profit %	100%	100%	100%	100%	100%
R&D Expenses	$0	$0	$0	$0	$0

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	$3.6B	$3.8B	$2.6B	$3.3B	$4.5B
Dep. & Amort.	$1.6B	$1.9B	$1.6B	$1.7B	$1.8B
Def. Tax	-$193M	$257M	$155M	-$423M	-$345M
Stock Comp.	$231M	$324M	$365M	$0	$0
Chg. in WC	-$294M	-$2.8B	$9.5B	$1.1B	-$5.5B

2020

2021

2022

2023

2024

Net Income

$3.6B

$3.8B

$2.6B

$3.3B

$4.5B

Dep. & Amort.

$1.6B

$1.9B

$1.6B

$1.7B

$1.8B

Def. Tax

-$193M

$257M

$155M

-$423M

-$345M

Stock Comp.

$231M

$324M

$365M

Chg. in WC

-$294M

-$2.8B

$9.5B

$1.1B

-$5.5B

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$162B	$121B	$107B	$125B	$102B
ST Investments	$151B	$145B	$118B	$114B	$99B
Cash & ST Inv.	$313B	$267B	$226B	$239B	$201B
Receivables	$5.7B	$5.9B	$6.9B	$8.6B	$7.1B
Inventory	$0	$0	$0	$0	$0

2020

2021

2022

2023

2024

Cash

$162B

$121B

$107B

$125B

$102B

ST Investments

$151B

$145B

$118B

$114B

$99B

Cash & ST Inv.

$313B

$267B

$226B

$239B

$201B

Receivables

$5.7B

$5.9B

$6.9B

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Overview
Latest News
Earnings
Income Statement
Cash Flow
Balance Sheet
Related

Earnings

Report Date

Apr 11, 2025

Reported Revenue

4.8B

Avg 1d Change

3.76%

Report Period

Q1 2025

Reported EPS

1.58

Implied Move 1d

4.55%

Transcript

10m 52s

11m 38s

Thanks, Marius. Good morning, everyone. Thank you for joining us.

11m 42s

13m 16s

15m 3s

16m 44s

18m 22s

19m 17s

20m 44s

And with that, over to you Dermot.

20m 48s

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24m 15s

26m 2s

27m 34s

29m 20s

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31m 35s

32m 33s

33m 26s

34m 4s

35m 18s

35m 59s

36m 36s

Got it.

36m 37s

Thank you.

36m 39s

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

36m 45s

37m 16s

38m 21s

38m 55s

Got you. Thanks.

38m 56s

39m 36s

40m 57s

41m 23s

42m 7s

43m 39s

So look, non interest bearing deposits, I think are roughly in line with where we don't really expect them to go meaningfully higher or meaningfully lower from where they are now.

43m 50s

44m 28s

44m 52s

45m 12s

46m 7s

47m 9s

48m 2s

Great. Thank you. And moving on to Ebrahim Poonawala with Bank of America.

48m 12s

Hey, good morning. I guess maybe, Robin, just to that last point, Hiderman and Robin, you mentioned the clearing of treasuries.

48m 23s

48m 46s

49m 47s

50m 28s

51m 3s

52m 9s

53m 23s

Thank you.

53m 27s

And we'll take a question from David Smith with Truist Securities.

53m 33s

54m 11s

55m 28s

So that's kind of roughly how we see it.

55m 31s

55m 53s

57m 7s

But I don't think we're at this point where for our businesses the uncertainty really cascades through into client choices today.

57m 17s

58m 1s

Thank you.

58m 4s

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

58m 9s

Hey, good morning folks. [indiscernible] the platforms question going back to Robin, think what you talked about in your earlier remarks, over half of the BNY is now on the platform model.

58m 26s

59m 4s

1h 21s

1h 1m 38s

1h 1m 53s

1h 2m 47s

That's great color. I think you wanted to convert the entire company by the end of the year on the platform's model. Is that correct? Or is that into 2016?

1h 2m 59s

Yes.

1h 3m

1h 3m 40s

That's great color. Thank you.

1h 3m 45s

And we'll take a question from Steven Schuback with Wolfe Research.

1h 3m 52s

Hi, good morning and thanks for taking my questions.

1h 3m 55s

1h 4m 24s

1h 4m 56s

That's helpful context there, Amit.

1h 4m 58s

1h 5m 10s

1h 5m 31s

1h 6m 43s

And so that the client's excitement about that product continues to kind of give us confidence about saying mid single digits through the cycle. As it relates to NNA? That's right.

1h 6m 55s

The Atria impact?

1h 7m

We don't necessarily disclose individual transactions, but coming to a store near you this either next quarter or the quarter after.

1h 7m 12s

Understood. Well, thanks so much for taking my questions.

1h 7m 18s

And we'll take a question from Betsy Graseck with Morgan Stanley.

1h 7m 24s

Hi, good morning.

1h 7m 26s

Morning, Betsy.

1h 7m 28s

1h 7m 50s

1h 8m 34s

1h 9m 12s

1h 10m 37s

1h 11m 13s

Thank you.

1h 11m 16s

And we'll take a from Gerard Cassidy with RBC.

1h 11m 21s

Good afternoon.

1h 11m 23s

1h 11m 47s

No, absolutely. Very much focused on '26.

1h 11m 53s

1h 12m 19s

1h 12m 59s

1h 14m 5s

1h 15m 17s

Robin, thank you. Very insightful.

1h 15m 20s

Happy to do it.

1h 15m 24s

And we'll take a question from Jim Mitchell with Seaport Global Securities.

1h 15m 30s

Hey, good afternoon.

1h 15m 32s

1h 15m 55s

1h 17m 19s

1h 18m 7s

1h 18m 42s

1h 19m 39s

Great. Thank you.

1h 19m 43s

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

1h 19m 50s

1h 20m 24s

Thanks.

1h 20m 29s

1h 21m 31s

1h 22m 41s

1h 23m 32s

Well, was a comprehensive answer. Thank you very much.

1h 23m 37s

Thank you, Mike.

1h 23m 40s

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

1h 23m 51s

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

1h 24m 4s

Key Insights

BNY reported strong Q1 financial results: EPS of $1.58 (up 26% YoY), total revenue of $4.8B (up 6% YoY), and expenses up 2% YoY, resulting in positive operating leverage and improved pre-tax margin (32%) and return on tangible common equity (24%).
The company continues to execute its transformation into a platform-oriented financial services firm, with over half of employees now working under the new operating model, driving faster processing, increased onboarding volume, and expanded product offerings.
BNY is investing in innovation, particularly in AI, with over 80% of employees trained on its ELISA AI platform and more than 40 AI solutions deployed; a multi-year agreement with OpenAI was announced to further advance AI use cases.
The balance sheet remains strong: Tier 1 leverage ratio at 6.2%, CET1 ratio at 11.5%, liquidity coverage ratio at 116%, and a 95% capital payout ratio YTD; NII guidance for full-year 2025 remains mid-single digit growth, with expense growth expected at 1-2% YoY (excluding notable items).
Management remains confident in delivering positive operating leverage through the cycle, citing robust organic growth (notably a 40% increase in clients using three or more business lines over two years), ongoing efficiency initiatives, and resilience amid macroeconomic uncertainty; no material near-term impact expected from digital assets or stablecoin legislation, but long-term opportunities are recognized.

The Bank of New York Mellon Corporation Price & Performance (BK)

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