Financial Performance - Net income applicable to common shareholders for Q3 2025 was $1.34 billion, or $1.88 per diluted share, compared to $1.11 billion, or $1.50 per diluted share in Q3 2024, reflecting a notable increase [20]. - Total revenue increased by 9% year-over-year, driven by a 7% increase in fee revenue and an 18% increase in net interest income [24]. - Total revenue for Q3 2025 was $2.5 billion, an 11% increase year-over-year but a 1% decrease from Q2 2025 [81]. - Year-to-date 2025 total revenue was $7.2 billion, a 10% increase compared to the same period in 2024 [87]. - Year-to-date 2025 total revenue was $5.2 billion, a 13% increase compared to the same period in 2024 [99]. - Total revenue for year-to-date 2025 was $2.4 billion, a decrease of 4% compared to the same period in 2024 [113]. Assets and Liabilities - Total assets increased to $455 billion as of September 30, 2025, up from $416 billion at December 31, 2024 [130]. - Total liabilities amounted to $393,023 million as of September 30, 2025, with total shareholders' equity at $43,974 million [53]. - Total available funds were $164 billion, representing 36% of total assets as of September 30, 2025 [132]. - Total deposits increased by 9% to $314.7 billion as of September 30, 2025, compared to $289.5 billion at December 31, 2024 [194]. Revenue Breakdown - Asset Servicing revenue was $1.9 billion, up 11% from Q3 2024 and 2% from Q2 2025, primarily due to higher client activity and market values [82]. - Issuer Services revenue totaled $544 million, a 10% increase from Q3 2024 but a 10% decrease from Q2 2025, reflecting higher Depositary Receipts revenue [83]. - Treasury Services revenue increased to $510 million, reflecting a 20% rise year-over-year and a 4% increase quarter-over-quarter [96]. - Investment Management revenue was $546 million, down 4% year-over-year and up 3% sequentially [110]. - Wealth Management revenue reached $278 million, decreasing 1% compared to Q3 2024 and increasing 3% from Q2 2025 [110]. Expenses - Noninterest expense increased by 4%, attributed to higher investments and employee merit increases, partially offset by efficiency savings [25]. - Noninterest expense for Q3 2025 was $1.7 billion, a 6% increase compared to Q3 2024 and a 2% increase from Q2 2025, driven by higher investments and severance expenses [85]. - Year-to-date noninterest expense for 2025 increased by 4% compared to the first nine months of 2024, totaling $9,694 million, driven by higher investments and adjustments to the FDIC special assessment [60]. - Noninterest expense decreased by 4% to $2.0 billion, driven by lower revenue-related expenses and efficiency savings [114]. Credit and Loans - The allowance for credit losses decreased to $368 million at Sept. 30, 2025, from $392 million at Dec. 31, 2024, with a provision for credit losses of $7 million in Q3 2025 [186]. - The allowance for loan losses as a percentage of total loans was 0.36% at Sept. 30, 2025, down from 0.41% at Dec. 31, 2024 [185]. - Net long-term strategy outflows totaled $33 billion in Q3 2025, primarily driven by liability-driven investments, equity, and index investments [108]. - Average loans for Q3 2025 were $46.3 billion, a 5% increase compared to Q2 2025 [95]. Market and Economic Factors - The effective tax rate for Q3 2025 was 21.3% [25]. - The company expects 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 [72]. - The company experienced a favorable impact from higher market values and a weaker U.S. dollar, partially offsetting revenue declines [110]. Employee and Operational Metrics - Full-time employees at period-end decreased to 49,200 in Q3 2025, down 6% from 52,600 in Q3 2024 [57]. - The company recorded a 10% increase in software and equipment expenses year-to-date, totaling $1,582 million compared to $1,442 million in the previous year [57].

Core Insights - AI is expected to significantly enhance productivity in the banking sector, but banks must adapt their operations to fully leverage this technology [3][6] - The concept of agentic AI is highlighted as a transformative force, with major banks investing in AI workflows to improve efficiency [4][5] Industry Trends - A collaborative model is anticipated, where one human employee will oversee 20 to 30 AI agents managing complex workflows autonomously [5] - BNY has implemented 117 agentic AI tools to optimize various operational aspects [5] Financial Implications - AI could lead to net cost reductions of up to 20% for banks as it becomes more widely adopted [7] - The banking sector's net income reached $1.2 trillion in 2024, the highest among all industries, yet its valuation lags behind other sectors by approximately 70% [7] Challenges Ahead - Despite the potential for productivity gains, the banking industry faces challenges from AI advancements, increased competition from fintechs, and changing customer expectations [7]

Core Viewpoint - The lack of data will make it difficult to predict the Federal Reserve's actions in six weeks [1] Group 1 - John Velis, a macro strategist at BNY Mellon, emphasizes the uncertainty surrounding the Federal Reserve's future decisions due to insufficient data [1]

Core Insights - BNY Mellon is expanding its blockchain-based asset tokenization strategy by launching a collateralized loan obligation (CLO) fund, marking a significant step in integrating traditional financial products with blockchain technology [1][2] Group 1: Tokenization Strategy - The Securitize Tokenized AAA CLO Fund will provide institutional investors access to AAA-rated floating-rate CLOs on the Ethereum network, with BNY Mellon acting as custodian and its subsidiary, Insight Investment, managing the portfolio [2] - BNY Mellon's approach reflects a deliberate sequencing strategy, having previously partnered with Goldman Sachs to launch tokenized money market funds, indicating a methodical progression from simpler to more complex financial instruments [3] Group 2: Market Context - The CLO market, valued at $1.3 trillion, involves bundling corporate loans into tranches with varying risk profiles, requiring sophisticated monitoring of loan performance and credit quality metrics [5] - The transition from money market funds to CLOs demonstrates BNY Mellon's confidence in managing more complex tokenized structures while maintaining compliance and custody standards expected by regulators and investors [6]

Core Insights - Securitize is in the process of going public through a blank-check company initiated by Cantor Fitzgerald [1] - The company has partnered with Bank of New York Mellon to bring collateralized loan obligations (CLOs) onto the blockchain [1] - The Securitize Tokenized AAA CLO Fund will focus on CLOs with high credit ratings and will utilize the Ethereum blockchain for token representation, with BNY acting as the custodian for the assets [1]

Core Points - BNY will decrease the Prime Lending Rate by 0.25%, from 7.25% to 7.00%, effective October 30, 2025 [1] Company Overview - BNY is a global financial services company with over 240 years of experience, helping clients manage, move, and safeguard their money [2] - The company serves over 90% of Fortune 100 companies and nearly all of the top 100 banks globally, supporting governments and pension plans [2] - As of September 30, 2025, BNY oversees $57.8 trillion in assets under custody and/or administration and $2.1 trillion in assets under management [2]

Core Insights - The primary barrier to AI adoption is not technological limitations but rather human adoption, cultural factors, and organizational inertia [2][3] - BNY has launched its proprietary AI platform, Eliza, in 2024, aimed at enhancing employee workflows and client service [3][4] - The bank has a history of embracing technological innovation, having integrated computers and the internet into its operations over the past 70 years [4] AI Adoption and Training - Approximately 15,000 BNY employees have created their own AI agents, and the bank is developing around 150 AI-powered solutions [3][5] - Over 1,000 employees have received more than 40 hours of AI training, which encourages them to explore the potential of AI [5][6] - The training program includes practical applications, starting with simple queries and evolving into more complex problem-solving using AI [6] Organizational Culture and Innovation - BNY's CEO emphasizes the importance of a proactive approach to technology adoption to avoid obsolescence [4] - The company aims to create a "flywheel of excitement" around AI adoption, fostering creativity and innovation among employees [6]

Group 1: Leadership Changes - BNY has appointed Catherine Addona-Peña as the new head of enterprise risk, previously serving as chief risk officer at Nasdaq [1] - Nasdaq is currently without a full-time CRO as Addona-Peña's responsibilities are being managed by other team members while a replacement is sought [2] - JP Morgan has promoted Conor Hillery and Matthieu Wiltz to co-CEOs for Europe, the Middle East, and Africa, succeeding Filippo Gori [5][6] Group 2: New Appointments - Kranthi Gade has been named head of global macro and US cross-asset strategic indexes structuring at JP Morgan [8] - Adrian Loh has joined JP Morgan Private Bank as market head of investments and advice for Southeast Asia [10] - Fahim Rahman has been appointed head of derivatives risk solutions for EMEA at Mizuho [15] Group 3: Organizational Changes - Standard Chartered has appointed Roberto Hoornweg as CEO of corporate and investment banking, taking over from Sunil Kaushal [11][12] - Citi has appointed Sophie Landry as head of markets for Germany and Austria, and Jason Woods as head of futures execution for Europe, the Middle East, and Africa [16][18] - RBC Capital Markets has appointed Callum Maitland to head structured inflation and cross-currency basis trading [20] Group 4: Regulatory and Governance Updates - The Federal Deposit Insurance Corporation has named Ryan Billingsley as director in the division of risk management supervision [27] - The Alternative Investment Management Association has appointed Jon May as the new chair of its governing body, succeeding Karl Wachter [28]

Core Insights - Ripple has successfully completed the acquisition of Hidden Road, rebranding it as Ripple Prime, positioning itself as a pioneer in the crypto industry by owning a multi-asset prime broker [2][3] - The acquisition is expected to enhance institutional adoption of digital assets, leveraging synergies between Ripple's existing infrastructure and Ripple Prime's services [3][4] - Ripple aims to improve the utility of its stablecoin, RLUSD, which is gaining traction among derivatives clients and is backed by regulatory compliance [5] Group 1 - Ripple's acquisition of Hidden Road provides a comprehensive suite of services including clearing, prime brokerage, and financing across various asset classes [1] - Ripple Prime's business has shown steady growth since the acquisition announcement, with forecasts indicating further expansion for both new and existing clients [3] - The integration of Ripple's digital asset infrastructure with Ripple Prime is expected to enhance operational efficiency and reduce costs through DLT/blockchain capabilities [4] Group 2 - Ripple has made several strategic acquisitions in recent years, including GTreasury, Standard Custody, and Metaco, all aimed at enhancing technology and operational controls [6] - The collaboration between Ripple and Hidden Road's leadership is focused on seamless integration throughout the year, indicating a strong commitment to the success of Ripple Prime [7]

Core Viewpoint - Gold has experienced significant volatility, with a sharp decline following a peak, indicating that U.S. equities may serve as a better hedge against volatility than gold [1][3]. Summary by Sections Gold Market Analysis - Gold prices fell by 6.3% after reaching nearly $4,400 per ounce, dropping below $4,100 again, with a daily decline of over 1.5% [1]. - Concerns about inflation have historically driven investments into commodities like gold and silver, but long-term, equities are viewed as superior inflation hedges [3]. - The recent rise in gold prices was partly attributed to a decline in the U.S. dollar index, which has rebounded by approximately 2.4% since mid-September after an 11% drop earlier this year [3][4]. U.S. Treasury and Inflation Concerns - Fears regarding the depreciation of U.S. Treasuries have led to increased gold investments, but these concerns are considered overstated [4]. - The drop in gold prices on a strong dollar and a decline in the 10-year U.S. Treasury yield below 4% illustrates the market dynamics at play [4]. - Despite market worries about tariffs potentially raising prices, there is no expectation of a significant short-term rise in inflation [4]. U.S. Equity Market Outlook - The financial services company holds an "overweight" position on U.S. equities, predicting they will outperform the overall market [5]. - This outlook is based on the robust performance of the U.S. technology sector and productivity growth, which is more than double that of most other developed countries [5]. - The company forecasts U.S. economic growth of approximately 1.8% this year and 2% next year [5].