Summary of BNY's Earnings Call for Q4 2024 Company Overview - **Company**: BNY (The Bank of New York Mellon) - **Date of Call**: January 15, 2025 - **Key Executives Present**: Robin Vins (President and CEO), Dermot McDonough (CFO) Core Financial Highlights - **Record Net Income**: $4.3 billion for 2024, with record revenue of $18.6 billion, resulting in a return on tangible common equity of 23% [2][9] - **Revenue Growth**: Total revenue increased by 5% year-over-year, with fee revenue up 6% and investment services fees growing by 7% [9][10] - **Expenses**: Total expenses decreased by 4% year-over-year to $12.7 billion, with a pre-tax margin of 31% [9][10] - **Earnings Per Share**: Reported at $5.80, with an adjusted EPS of $6.03, reflecting a 19% increase year-over-year [10] Strategic Initiatives - **Transformation Strategy**: BNY is focused on three strategic pillars: enhancing client services, improving operational efficiency, and fostering a strong corporate culture [2][3] - **Commercial Coverage Model**: The rollout of a new commercial coverage model aims to enhance cross-selling and improve client relationships [2][3] - **Acquisition of Archer**: This acquisition is part of BNY's strategy to become an end-to-end solutions provider in the managed account ecosystem [3] - **Investment in Technology**: BNY has invested approximately $500 million in efficiency savings through digitization and AI, transitioning about 13,000 employees to a new operating model [3][8] Market Position and Trends - **Assets Under Custody and Administration (AUCA)**: BNY manages $52 trillion in AUCA, with significant growth in Treasury Services, Clearance and Platform Management, and Corporate Trust [5][6] - **Digital Assets**: BNY is a leader in digital asset services, managing a significant portion of digital asset exchange-traded products in the U.S. and Canada [6] - **Wealth Management Focus**: The wealth management segment is targeting the ultra-high net worth market, with a focus on providing integrated solutions [6][22] Financial Outlook for 2025 - **Net Interest Income (NII)**: Expected to increase by mid-single-digit percentage points year-over-year, with fee revenue also anticipated to grow [16][32] - **Expense Growth**: Projected to be around 1-2% year-over-year, excluding notable items [16] - **Capital Returns**: BNY plans to return approximately 100% of earnings to shareholders through dividends and share repurchases [16] Risks and Challenges - **Market Uncertainty**: The outlook for 2025 is described as uncertain due to geopolitical tensions, trade policy uncertainties, and market volatility [7] - **Operating Model Transition**: The transition to a new operating model is expected to enhance efficiency and client service but may present short-term challenges [27] Additional Insights - **Employee Engagement**: The transition to the new operating model has reportedly improved employee satisfaction and operational efficiency [27] - **Client Demand**: There has been a 30% year-on-year increase in sales from clients utilizing multiple lines of business, indicating strong market demand for integrated solutions [7][19] This summary encapsulates the key points from BNY's earnings call, highlighting the company's financial performance, strategic initiatives, market position, and outlook for the future.

Financial Data and Key Metrics - No specific financial data or key metrics changes mentioned in the provided content [1][2][3][4] Business Line Data and Key Metrics - No specific business line data or key metrics changes mentioned in the provided content [1][2][3][4] Market Data and Key Metrics - No specific market data or key metrics changes mentioned in the provided content [1][2][3][4] Company Strategy and Industry Competition - No specific details on company strategy, development direction, or industry competition mentioned in the provided content [1][2][3][4] Management Commentary on Operating Environment and Future Outlook - No specific management commentary on the operating environment or future outlook mentioned in the provided content [1][2][3][4] Other Important Information - The earnings call for the fourth quarter of 2024 was hosted by BNY, with participation from the President and CEO, Robin Vince, and the CFO, Dermot McDonogh [2] - The call included forward-looking statements and non-GAAP measures, with actual results potentially differing from projections [3] - The quarterly update presentation is available on the Investor Relations page of the company's website [2] Q&A Session - No Q&A session details provided in the content [1][2][3][4]

4Q24 QUARTERLY UPDATE January 15, 2025 AGENDA PAGE | 1 | Strategic Update | 3 | | --- | --- | --- | | 2 | Financial Update | 8 | | 3 | Financial Outlook | 19 | | 4 | Appendix | 22 | 2 Strong Execution Against our Three Strategic Pillars in 2024... Building on a solid foundation laid in 2023 the pace of progress on BNY's multi-year transformation accelerated in 2024 BE MORE FOR OUR CLIENTS • Launched new commercial coverage model, designed to deliver firmwide solutions at an accelerated pace, improve the cli ...

Core Insights - The Bank of New York Mellon Corporation reported a revenue of $4.85 billion for the quarter ended December 2024, reflecting a 12.4% increase year-over-year and surpassing the Zacks Consensus Estimate of $4.66 billion by 3.92% [1] - The company's earnings per share (EPS) for the quarter was $1.72, compared to $1.28 in the same quarter last year, resulting in an EPS surprise of 10.26% against the consensus estimate of $1.56 [1] Financial Performance Metrics - Total interest-earning assets averaged $357.77 billion, slightly above the estimated $356.67 billion [4] - The net interest margin (FTE basis) was reported at 1.3%, exceeding the average estimate of 1.2% [4] - The Tier 1 leverage ratio was 5.7%, slightly below the average estimate of 5.8% [4] - The Tier 1 capital ratio (standardized approach) stood at 13.7%, lower than the three-analyst average estimate of 14% [4] Revenue Breakdown - Revenue from Market and Wealth Services totaled $1.67 billion, surpassing the average estimate of $1.55 billion, with a year-over-year increase of 11.2% [4] - Securities Services generated total fee and other revenue of $1.64 billion, slightly above the estimated $1.63 billion, marking a 6.4% increase year-over-year [4] - Net interest income from Securities Services was $681 million, exceeding the average estimate of $611.38 million, with a year-over-year growth of 7.2% [4] - Total revenue from Securities Services reached $2.32 billion, compared to the estimated $2.24 billion, reflecting a 6.7% year-over-year increase [4] - Investment and Wealth Management reported total revenue of $873 million, above the average estimate of $855.66 million, representing a significant year-over-year increase of 29.1% [4] - Market and Wealth Services' total fee and other revenue was $1.19 billion, exceeding the average estimate of $1.13 billion, with a year-over-year change of 12.3% [4] - Net interest income from Investment and Wealth Management was $47 million, slightly above the average estimate of $45.25 million, with a year-over-year increase of 6.8% [4] - Total fee and other revenue from Investment and Wealth Management reached $826 million, surpassing the average estimate of $810.41 million, marking a year-over-year increase of 30.7% [4]

Core Insights - The Bank of New York Mellon Corporation reported quarterly earnings of $1.72 per share, exceeding the Zacks Consensus Estimate of $1.56 per share, and showing an increase from $1.28 per share a year ago, resulting in an earnings surprise of 10.26% [1] - The company achieved revenues of $4.85 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.92% and up from $4.31 billion year-over-year [2] - The stock has underperformed the market with a decline of about 1.2% since the beginning of the year, compared to the S&P 500's decline of 0.7% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.44 on revenues of $4.65 billion, and for the current fiscal year, it is $6.61 on revenues of $19.1 billion [7] - The estimate revisions trend for the company is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Banks - Major Regional industry is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% of industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - The Bank of New York Mellon Corporation (BNY) has reported its financial results for the fourth quarter of 2024, with additional resources available for investors and analysts [1]. Financial Results - BNY oversees $52.1 trillion in assets under custody and/or administration and $2.0 trillion in assets under management as of December 31, 2024 [4]. Company Overview - BNY is a global financial services company that has been operational for 240 years, assisting clients in managing, moving, and safeguarding their money [4]. - The company serves over 90% of Fortune 100 companies and nearly all of the top 100 banks globally, as well as supporting governments and pension plans [4]. - BNY employs over 50,000 people worldwide and has received recognition as one of Fortune's World's Most Admired Companies and Fast Company's Best Workplaces for Innovators [5].

Financial Performance - Fee and other revenue for Q4 2024 was $3,653 million, a 1% increase from Q3 2024 and a 12% increase from Q4 2023[4] - Net interest income for Q4 2024 was $1,194 million, reflecting a 14% increase from Q3 2024[4] - Total revenue for Q4 2024 reached $4,847 million, up 4% from Q3 2024 and 11% from Q4 2023[4] - Net income for Q4 2024 was $1,157 million, a decrease of 3% from Q3 2024 but a significant increase of 462% from Q4 2023[4] - Diluted earnings per common share for Q4 2024 was $1.54, a 3% increase from Q3 2024 and a 633% increase from Q4 2023[4] - Total revenue for Q4 2024 was $4,847 million, an increase of 4% compared to Q3 2024 and 11% compared to Q4 2023[7] - Net income for Q4 2024 reached $1,157 million, reflecting a 38% increase year-over-year from $206 million in Q4 2023[7] - Earnings per common share (diluted) for Q4 2024 was $1.54, a 3% increase from $1.50 in Q3 2024 and a 633% increase from $0.21 in Q4 2023[7] - Total revenue for Q4 2024 was $2,324 million, representing a 5% increase from Q3 2024 and a 7% increase from Q4 2023[15] - Total revenue for Q4 2024 was $873 million, reflecting a 3% increase from Q3 2024 and a 29% increase from Q4 2023[23] Assets and Liabilities - Assets under management (AUM) decreased to $2.03 trillion in Q4 2024, down 5% from Q3 2024[4] - Total assets decreased to $416,064 million as of December 31, 2024, down from $427,461 million at the end of Q3 2024[8] - Deposits decreased to $289,524 million in Q4 2024, down from $296,438 million in Q3 2024[8] - Average loans for Q4 2024 are $11,553 million, a 4% increase compared to Q3 2024[17] - Average loans for FY24 were $41,533 million, an 11% increase compared to FY23[21] - Average loans for FY24 were $13,610 million, showing a 1% decrease compared to FY23[23] - Total assets under management (AUM) decreased by 5% from Q3 2024 to $2,029 billion, but increased by 3% year-over-year[27] - Wealth Management client assets decreased by 2% quarter-over-quarter to $327 billion, but increased by 5% year-over-year[27] Expenses and Profitability - Total noninterest expense increased to $3,355 million in Q4 2024, an 8% increase from Q3 2024[7] - Noninterest expense for Q4 2024 is $1,666 million, a 7% increase from Q3 2024[15] - Noninterest expense for Q4 2024 was $700 million, a 4% increase from Q3 2024[23] - The pre-tax operating margin for Q4 2024 is 28%, unchanged from Q3 2024[15] - The pre-tax operating margin for Q4 2024 was 20%, down from 21% in Q3 2024[23] Capital and Ratios - The common equity tier 1 (CET1) ratio was 11.2% at the end of Q4 2024, down from 11.9% in Q3 2024[4] - CET1 capital as of December 31, 2024, is $18,754 million, down from $19,687 million in the previous quarter[14] - The total capital ratio under the Standardized Approach is 14.8% as of December 31, 2024, compared to 15.6% in the previous quarter[14] - The average liquidity coverage ratio is 115% for Q4 2024, slightly down from 116% in Q3 2024[14] Market Performance - The market capitalization increased to $55,139 million at the end of Q4 2024, compared to $52,248 million at the end of Q3 2024[4] - The market value of securities on loan at period end is $488 billion, an increase of 8% from Q4 2023[17] Revenue Sources - Investment services fees increased by 4% quarter-over-quarter and 9% year-over-year, totaling $2,438 million in Q4 2024[7] - Total investment management and performance fees for Q4 2024 were $808 million, up 2% from Q3 2024 and 9% from Q4 2023[9] - Foreign exchange revenue in Q4 2024 was $177 million, a 1% increase from Q3 2024 and a 24% increase from Q4 2023[9] - Total investment services fees for Q4 2024 are $1,337 million, a 6% increase year-over-year[15] - Investment management fees increased by 1% quarter-over-quarter and 9% year-over-year, totaling $789 million in Q4 2024[23] Shareholder Information - The company reported a common dividend payout ratio of 31% for Q4 2024, slightly down from 32% in Q3 2024[4] - BNY shareholders' equity at period end decreased to $41,318 million in Q4 2024 from $41,992 million in Q3 2024, a decline of 1.6%[43] - Tangible common shareholders' equity at period end was $19,412 million in Q4 2024, down from $20,363 million in Q3 2024, representing a decrease of 4.7%[43] Credit Losses - The provision for credit losses was $20 million in Q4 2024, a significant decrease from $84 million in Q4 2023[7] - The allowance for credit losses at the end of the period was $392 million, down from $401 million in the previous quarter, with loan losses as a percentage of total loans at 0.41%[35] - The total allowance for credit losses at the beginning of the period was $401 million, with a provision for credit losses of $20 million in Q4 2024[35] - The net charge-offs for Q4 2024 were $(29) million, compared to $(18) million in Q3 2024[35]

The upcoming report from The Bank of New York Mellon Corporation (BK) is expected to reveal quarterly earnings of $1.56 per share, indicating an increase of 21.9% compared to the year-ago period. Analysts forecast revenues of $4.65 billion, representing an increase of 7.9% year over year.The consensus EPS estimate for the quarter has undergone an upward revision of 1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial e ...

The Bank of New York Mellon Corporation (BK) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on January 15, 2025, might help the stock move higher if these ...

Group 1 - The Bank of New York Mellon Corporation is set to release its fourth-quarter earnings results on January 15, 2025, before the market opens [1] - Analysts predict the company will report earnings of $1.54 per share, an increase from $1.28 per share in the same quarter last year [1] - The projected revenue for the recent quarter is $4.65 billion, compared to $4.31 billion a year earlier [1] - In the third quarter, the company reported adjusted earnings per share of $1.52, reflecting a 20% year-over-year increase, surpassing analysts' expectations of $1.42 [1] - Bank of New York Mellon shares rose by 1.3% to close at $77.92 on Monday [1] Group 2 - Wolfe Research analyst Steven Chubak downgraded the stock from Outperform to Peer Perform on January 3, with a 70% accuracy rate [4] - Wells Fargo analyst Whit Mayo maintained an Equal-Weight rating and increased the price target from $81 to $82 on January 2, with a 67% accuracy rate [4] - Keefe, Bruyette & Woods analyst David Konrad kept an Outperform rating and raised the price target from $87 to $96 on December 3, 2024, with a 71% accuracy rate [4] - Citigroup analyst Keith Horowitz maintained a Neutral rating and increased the price target from $75 to $82 on November 25, 2024, with a 78% accuracy rate [4] - Wells Fargo analyst Whit Mayo also maintained an Equal-Weight rating and raised the price target from $79 to $81 on November 15, 2024, with a 67% accuracy rate [4]