Core Viewpoint - The Bank of New York Mellon Corporation (BNY) is set to report its financial results for the third quarter of 2025 on October 16, 2025, with materials available on its website and a conference call scheduled for the same day [1]. Financial Reporting - BNY will release its earnings report and related documents at approximately 6:30 a.m. ET on October 16, 2025 [2]. - A conference call and audio webcast will take place at 7:30 a.m. ET, which may include forward-looking statements and other material information [1][2]. Access Information - Investors and analysts can access the conference call by dialing +1 800-390-5696 (U.S.) or +1 720-452-9082 (International) using the passcode: 200200, or by visiting the investor relations section of BNY's website [2]. - An archived version of the conference call and audio webcast will be available from October 16, 2025, at approximately 12:00 p.m. ET until November 14, 2025 [3]. Company Overview - BNY is a global financial services company with over 240 years of experience, managing $55.8 trillion in assets under custody and/or administration and $2.1 trillion in assets under management as of June 30, 2025 [4]. - The company serves over 90% of Fortune 100 companies and nearly all of the top 100 banks globally, supporting governments and pension plans in safeguarding investments [4].

Core Insights - The OCIO (Outsourced Chief Investment Officer) model has seen significant growth, with assets under management (AUM) increasing over 2.6 times in the past decade, indicating a strong demand for outsourced investment management solutions [3][8][10] - The market is dominated by a few key players, with the top five institutions controlling 67% of the market share, particularly following the acquisition of Vanguard by Mercer, which has led to a rapid increase in Mercer’s AUM market share to over 30% [3][10] - The client base for OCIO services is diversifying, with a notable increase in the share of non-pension clients such as endowment funds, charitable foundations, and private wealth, which are expected to grow at a compound annual growth rate (CAGR) exceeding 10% over the next five years [3][17] OCIO Business Overview - OCIO services encompass a comprehensive range of functions including asset allocation, manager selection, portfolio decision execution, and risk management, tailored to meet the needs of institutional investors and high-net-worth families [7][10] - The OCIO model addresses the gap between asset owners' internal capabilities and their performance expectations, providing a systematic approach to enhance governance and efficiency [7][10] Market Dynamics - The OCIO market is primarily driven by corporate pension plans, which accounted for 61% of the market in 2023, but there is a growing trend towards non-pension clients, indicating a shift in market dynamics [3][17] - The overall AUM in the OCIO sector is projected to grow at a CAGR of 7.9%-8%, with increasing penetration among non-traditional institutional clients [17] Competitive Landscape - Major players like JP Morgan, Mercer, BlackRock, and Goldman Sachs are adopting distinct strategies to capture market share, with varying focuses on technology, ESG integration, and client customization [3][10][38] - The acquisition of Vanguard by Mercer is a significant event in the industry, enhancing Mercer’s capabilities in alternative asset management and solidifying its position as the largest OCIO service provider globally [48][51] Client Segmentation - Different client types, including pension funds, foundations, family offices, and sovereign wealth funds, have unique investment needs and risk profiles, leading to tailored OCIO service models [12][17] - Non-profit organizations and endowment funds are increasingly recognized as critical growth drivers for OCIO services, with a high percentage of providers considering them essential for future growth [26][17] Future Opportunities - The OCIO sector is expected to see growth opportunities in Southeast Asian sovereign funds and healthcare systems, as well as through the optimization of asset allocation models [3][10] - The demand for alternative assets and complex investment strategies is rising, necessitating OCIO providers to enhance their capabilities in these areas [13][17]

Company Overview - The Bank of New York Mellon Corporation (BNY) is a global financial services company that has been operational for over 240 years, helping clients manage, move, and safeguard their money [3]. - BNY serves over 90% of Fortune 100 companies and nearly all of the top 100 banks globally, providing essential financial services [3]. - As of June 30, 2025, BNY oversees $55.8 trillion in assets under custody and/or administration and $2.1 trillion in assets under management [3]. Upcoming Events - Dermot McDonogh, Chief Financial Officer of BNY, will speak at the Barclays Global Financial Services Conference on September 9, 2025, at 2:45 p.m. ET [1]. - A live webcast of the conference will be available on the BNY website, with an archived version accessible approximately 24 hours after the live event until October 9, 2025 [2]. Recognition - BNY has been recognized among Fortune's World's Most Admired Companies and Fast Company's Best Workplaces for Innovators [4].

Financial Performance - Net income applicable to common shareholders for Q2 2025 was $1,391 million, or $1.93 per diluted share, compared to $1,143 million, or $1.52 per diluted share in Q2 2024, reflecting a significant increase [20]. - Total revenue increased by 9% year-over-year, driven by a 7% increase in fee revenue and a 17% increase in net interest income [25]. - Total revenue for Q2 2025 reached $2.5 billion, an increase of 10% compared to Q2 2024 and 8% compared to Q1 2025 [83]. - Total revenue for year-to-date 2025 reached $4.8 billion, a 9% increase compared to the same period in 2024 [88]. - Total revenue for the second quarter of 2025 was $1.7 billion, a 13% increase compared to the second quarter of 2024 [95]. - Total revenue for year-to-date 2025 was $1.6 billion, a decrease of 5% compared to the same period in 2024 [118]. Assets and Management - Assets under custody and/or administration (AUC/A) reached $55.8 trillion, a 13% increase compared to $49.5 trillion in Q2 2024 [34]. - Assets under management (AUM) totaled $2.1 trillion, reflecting a 3% increase from $2.045 trillion in Q2 2024 [38]. - Total assets reached $438,608 million as of June 30, 2025, compared to $415,844 million in the previous quarter [55]. - Total assets increased to $486 billion as of June 30, 2025, up from $416 billion at December 31, 2024 [135]. - Total deposits increased by 20% to $346.4 billion at June 30, 2025, compared to $289.5 billion at December 31, 2024 [197]. Revenue Streams - Foreign exchange revenue increased by 16% year-over-year, driven by higher transaction volumes and market volatility [39]. - Net interest income rose to $1,203 million in Q2 2025, a 17% increase from $1,030 million in Q2 2024, and a 4% increase from $1,159 million in Q1 2025 [48][49]. - Asset Servicing revenue was $1.9 billion, up 11% year-over-year and 5% quarter-over-quarter, primarily due to higher net interest income and foreign exchange revenue [84]. - Issuer Services revenue increased to $604 million, a 9% rise compared to Q2 2024 and an 18% increase from Q1 2025, mainly attributed to higher Depositary Receipts revenue [85]. - Treasury Services revenue was $490 million, reflecting a 15% increase compared to the second quarter of 2024, driven by higher net interest income [97]. Expenses and Costs - Total noninterest expense increased by 4% compared to the second quarter of 2024, primarily due to higher investments and employee merit increases [60]. - Noninterest expense totaled $1.6 billion, a 4% increase from Q2 2024 and 2% from Q1 2025, influenced by higher investments and employee merit increases [87]. - Noninterest expense for year-to-date 2025 was $3.2 billion, a 4% increase compared to the first six months of 2024, mainly due to higher investments and employee merit increases [89]. - The income tax provision for the second quarter of 2025 was $404 million, with an effective tax rate of 22.0%, compared to $357 million (23.4%) in the second quarter of 2024 [63]. Equity and Returns - Return on common equity (ROE) was 14.7% and return on tangible common equity (ROTCE) was 27.8% for Q2 2025 [26]. - The company returned $1.2 billion to common shareholders, including $895 million in common share repurchases [27]. - The company’s shareholders' equity increased to $43,223 million as of June 30, 2025, compared to $41,542 million in the previous quarter [55]. Credit and Loans - The provision for credit losses was a benefit of $17 million, primarily due to property-specific reserve releases related to commercial real estate exposure [25]. - The allowance for credit losses decreased to $379 million at June 30, 2025, from $401 million at December 31, 2024, with a provision for credit losses of $17 million in the second quarter of 2025 [188][189]. - Total loans at period end were $73.1 billion at June 30, 2025, compared to $71.4 billion at December 31, 2024 [188]. - Margin loan exposure increased to $20.7 billion at June 30, 2025, compared to $19.1 billion at December 31, 2024 [186]. Employment and Efficiency - Full-time employees at the end of the second quarter of 2025 totaled 49,900, a decrease of 4% from 52,000 in the second quarter of 2024 [60]. - Efficiency savings partially offset the increases in noninterest expenses in both quarterly and year-to-date comparisons [60][62]. Market and Economic Factors - The company estimated that a 5% change in global equity markets would impact fee revenue by less than 1% and diluted earnings per share by $0.05 to $0.08 [74]. - The unfavorable impact of a weaker U.S. dollar was noted as a contributing factor to the increase in noninterest expenses [60].

Core Viewpoint - The Federal Reserve is expected to maintain interest rates unchanged in the near term, with varying opinions on the timing and extent of future rate cuts, particularly in September and December [1][2][3][4]. Group 1: Expectations for Rate Cuts - Goldman Sachs anticipates the Fed will keep rates unchanged but expects three consecutive rate cuts of 25 basis points in September, October, and December, with two additional cuts next year [1]. - Russell Investments believes the Fed will maintain rates but will have sufficient data to restart the rate-cutting cycle in September [1]. - Wells Fargo predicts the Fed will keep rates unchanged and begin cutting rates in the fall, totaling 75 basis points by year-end to alleviate political pressure [1]. - Danske Bank sees a significant possibility of a September rate cut if macroeconomic data falls below expectations [1][2]. Group 2: Divergent Views on Rate Stability - Societe Generale expects the Fed to maintain rates until it is confident that tariff-related uncertainties have been resolved [3]. - UBS forecasts only one rate cut in December, based on the belief that tariffs will push inflation higher while the economy avoids recession [3]. - Nomura Securities suggests the Fed will not cut rates before December due to rising inflation risks from tariffs [3]. - Barclays Bank predicts the next rate cut will not occur before December, with three cuts expected next year if inflation moderates [3]. Group 3: Other Perspectives - BlackRock anticipates the Fed will keep rates unchanged, with a greater likelihood of a rate cut in October compared to September [4].

Market Overview - The market capitalization of major US stocks shows varied performance, with Oracle at 762.30 billion, Mastercard at 321.36 billion, and Visa at 770.15 billion, reflecting increases of +0.66%, +0.86%, and +0.68% respectively [3] - Exxon Mobil's market cap is 679.53 billion, with a slight decrease of -0.98%, while Johnson & Johnson and Netflix show minor changes of -0.08% and -0.05% respectively [3] - Companies like Wells Fargo and Cisco have market caps of 270.15 billion and 279.59 billion, with respective increases of +0.98% and -0.58% [3] Notable Stock Movements - T-Mobile US Inc experienced a significant increase of +6.20%, reaching a market cap of 272.19 billion [3] - General Electric and Coca-Cola saw market caps of 285.05 billion and 298.76 billion, with increases of +0.37% and +0.91% respectively [3] - Companies like Disney and Goldman Sachs have market caps of 229.06 billion and 221.80 billion, with slight changes of +0.01% and -0.60% [3] Sector Performance - The technology sector shows mixed results, with Intel at 991.05 billion, down -3.28%, while AMD increased by +2.46% to 254.92 billion [5] - The consumer goods sector is represented by companies like Procter & Gamble and Coca-Cola, with market caps of 371.68 billion and 298.76 billion, showing slight increases [3][4] - The energy sector, represented by Exxon Mobil and Chevron, shows varied performance, with Exxon down -0.98% and Chevron up +0.66% [3] Summary of Key Companies - Oracle's market cap stands at 762.30 billion, reflecting a positive trend [3] - Mastercard and Visa show strong performance with market caps of 321.36 billion and 770.15 billion, both increasing [3] - Companies like Pfizer and Comcast have market caps of 1579.81 billion and 1332.00 billion, with Pfizer showing minimal change and Comcast down -3.16% [4][5]

Core Insights - Goldman Sachs and BNY Mellon are set to announce a groundbreaking collaboration to create a new channel for professional investors to purchase tokenized money market funds [1] - The initiative aims to leverage blockchain technology to record fund ownership, allowing direct investment in money market funds [1] - The project has attracted top asset management firms including BlackRock, Fidelity, and Invesco, as well as the asset management subsidiaries of Goldman Sachs and BNY Mellon [1] Group 1: Tokenization and Market Impact - The tokenization of money market funds is seen as a significant milestone in the development of digital assets, especially following the recent signing of the GENIUS Act, which establishes a regulatory framework for stablecoins [1] - The tokenized money market funds can generate returns for holders, making them attractive to hedge funds, pension funds, and corporate cash management [1] - Approximately $2.5 trillion has been injected into money market funds since the Federal Reserve began its rate hike cycle in 2022, highlighting the growing interest in this asset class [1] Group 2: Technological Advancements - The collaboration will enable faster settlements, round-the-clock trading, and automation through the creation of digital ownership certificates for money market funds [2] - BNY Mellon will maintain traditional money market records alongside the tokenized assets to ensure a smooth transition [2] - The tokenization allows for direct transfers of digital funds between financial intermediaries without the need to convert to cash, enhancing their utility as collateral and margin for large transactions [2][3] Group 3: Efficiency and Practical Value - The vast scale of the market presents significant opportunities to enhance the efficiency of financial infrastructure [3] - Companies can transfer tokens instead of liquidating funds for transaction margins, thereby freeing up time and capital previously tied up in traditional trading processes [3]

Market Performance - The US stock market saw significant gains on July 23, with the Dow Jones Industrial Average rising by 507.85 points, or 1.14%, closing at 45010.29 points. The Nasdaq Composite increased by 127.33 points, or 0.61%, closing at 21020.02 points, marking its first close above the 21000-point threshold. The S&P 500 index rose by 49.29 points, or 0.78%, closing at 6358.91 points [1][3][4]. Trade Agreements - President Trump announced a trade agreement between the US and Japan, which has heightened market expectations for further trade agreements before the August 1 tariff deadline. The agreement includes a reduction of the reciprocal tariff rate from 25% to 15% and Japan's commitment to invest $550 billion in the US [2][6][7]. Sector Performance - In the S&P 500, nine out of eleven sectors experienced gains, with the healthcare and industrial sectors leading with increases of 2.03% and 1.75%, respectively. The utilities and consumer staples sectors saw declines of 0.79% and 0.07% [8]. - Major technology stocks mostly rose, with AMD increasing over 3%, and other companies like NVIDIA, Boeing, and TSMC rising over 2%. Financial stocks also saw gains, with Mizuho Financial up over 6% and UBS Group up over 3% [8]. Chinese Stocks - The Nasdaq Golden Dragon China Index rose by 0.75%, with notable increases in stocks such as iQIYI, which rose over 4%, and Tiger Brokers, which increased over 3%. However, some stocks like NIO and Li Auto saw declines of over 1% [9].

Group 1 - Goldman Sachs and BNY Mellon are reportedly collaborating to integrate cryptocurrency technology into money market funds [1]

Group 1 - Goldman Sachs and BNY Mellon are reportedly collaborating to integrate cryptocurrency technology into money market funds [1]