Core Viewpoint - The Bank of New York Mellon Corporation (BK) reported strong first-quarter 2025 adjusted earnings of $1.58 per share, exceeding expectations and reflecting a 22.5% increase year-over-year [1][2]. Financial Performance - Adjusted earnings surpassed the Zacks Consensus Estimate of $1.49, with net income applicable to common shareholders (GAAP basis) reaching $1.15 billion, up from $953 million in the prior year [1][3]. - Total revenues increased by 5.9% year-over-year to $4.79 billion, exceeding the Zacks Consensus Estimate of $4.74 billion [4]. - Net interest income (NII) was $1.16 billion, an 11.4% increase year-over-year, driven by higher reinvestment yields [4]. - Total fee and other revenues rose by 4.2% year-over-year to $3.63 billion, primarily due to increases in various components [5]. Expense and Asset Management - Total non-interest expenses (GAAP basis) were $3.25 billion, a 2.4% increase from the prior year, with most components contributing to the rise [6]. - As of March 31, 2025, assets under management (AUM) were $2.01 trillion, a slight decrease year-over-year due to net outflows, while assets under custody and/or administration (AUC/A) increased to $53.1 trillion, an 8.8% rise [7]. Credit Quality and Capital Position - The allowance for loan losses decreased to 0.41% of total loans, with non-performing assets down to $213 million from $278 million in the previous year [8]. - The common equity Tier 1 ratio improved to 11.5%, up from 10.8% a year earlier, indicating a stronger capital position [9]. Shareholder Returns - During the reported quarter, BNY Mellon repurchased shares worth $746 million, reflecting a commitment to returning value to shareholders [10]. Outlook - The company is expected to benefit from relatively higher interest rates, global expansion efforts, and a strong balance sheet, although there are concerns regarding dependence on fee-based revenues and rising expenses [11].

Financial Data and Key Metrics Changes - Earnings per share (EPS) for Q1 2025 was $1.58, up 26% year-over-year on a reported basis and up 22% excluding notable items [10] - Total revenue reached $4.8 billion, reflecting a 6% increase year-over-year, with expenses controlled at a 2% increase [11][25] - Pre-tax margin improved to 32% and return on tangible common equity rose to 24% [12][30] Business Line Data and Key Metrics Changes - Security services reported total revenue of $2.3 billion, up 8% year-over-year, with investment services fees increasing by 4% [34] - Market and wealth services segment revenue was $1.7 billion, up 11% year-over-year, with net new assets of $11 billion in the quarter [37] - Investment and wealth management segment revenue decreased to $779 million, down 8% year-over-year, with a pre-tax income drop of 41% [39] Market Data and Key Metrics Changes - Firm-wide assets under custody and administration (AUCA) reached $53.1 trillion, up 9% year-over-year [26] - Assets under management (AUM) remained flat at $2 trillion year-over-year, with $18 billion in net outflows [41] - Foreign exchange revenue increased by 3% year-over-year, driven by higher spreads due to increased volatility [27] Company Strategy and Development Direction - The company is focused on transforming into a more platforms-oriented organization, enhancing client experience and operational agility [13][23] - The first quarter marked the anniversary of the transition to the new operating model, with over half of the company now working under this model [14] - The company is actively pursuing innovation in areas such as AI, with over 40 AI solutions deployed and a partnership with OpenAI [20][22] Management's Comments on Operating Environment and Future Outlook - Management noted a significant reversal in market sentiment due to trade and fiscal policy uncertainties, leading to elevated risks in the near and medium term [7][9] - Despite the uncertain environment, the company is well-positioned with a strong balance sheet and operational resilience [10][23] - The outlook for the operating environment remains uncertain, with management prepared for various macroeconomic scenarios [23][43] Other Important Information - The company returned approximately $1.1 billion of capital to shareholders, representing a 95% total payout ratio year-to-date [31] - The Tier 1 leverage ratio for the quarter was 6.2%, with a CET1 ratio of 11.5% [30][31] - The company is maintaining a conservative approach to capital management, considering macroeconomic factors [45] Q&A Session Summary Question: Insights on deposit stability and NII generation - Management indicated that Q1 deposit levels were in line with expectations, with a slight increase in deposits due to market volatility, but not as significant as in previous crises [50][52] Question: Strategic opportunities for M&A - Management is open to exploring inorganic growth opportunities that align with their strategic priorities, emphasizing the importance of cultural fit and financial returns [64][66] Question: Impact of macro environment on client activity - Management noted that while clients are cautious, the breadth of their platforms provides a competitive advantage, allowing them to capture opportunities even in turbulent times [120][124] Question: Treasury market functioning and Fed intervention - Management reported that the treasury market is functioning well, with high volumes, although liquidity has reduced, leading to wider bid-offer spreads [98][101] Question: Digital assets and stablecoin legislation - Management views digital assets as a long-term play, with stablecoin legislation seen as a positive development for future growth, although not expected to significantly impact near-term revenues [105][111]

Core Insights - The Bank of New York Mellon Corporation reported a revenue of $4.79 billion for the quarter ended March 2025, reflecting a year-over-year increase of 5.9% and surpassing the Zacks Consensus Estimate by 1.25% [1] - Earnings per share (EPS) for the quarter was $1.58, an increase from $1.29 in the same quarter last year, exceeding the consensus EPS estimate by 6.04% [1] Financial Metrics - Tier 1 Leverage Ratio stood at 6.2%, above the average estimate of 6% [4] - Net Interest Margin (FTE Basis) was reported at 1.3%, matching the average estimate [4] - Book value per common share was $52.82, slightly above the average estimate of $52.59 [4] Revenue Breakdown - Total revenue from Market and Wealth Services was $1.69 billion, exceeding the average estimate of $1.60 billion, with a year-over-year change of +11.1% [4] - Total fee and other revenue from Securities Services reached $1.67 billion, surpassing the average estimate of $1.63 billion, reflecting a year-over-year increase of +7.3% [4] - Total revenue from Investment and Wealth Management was $779 million, below the average estimate of $840.26 million, indicating a year-over-year decline of -7.9% [4] Stock Performance - Shares of The Bank of New York Mellon have returned -3.8% over the past month, compared to a -6.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - The Bank of New York Mellon Corporation reported quarterly earnings of $1.58 per share, exceeding the Zacks Consensus Estimate of $1.49 per share, and showing an increase from $1.29 per share a year ago, indicating a positive earnings surprise of 6.04% [1] Group 1: Earnings Performance - The company has surpassed consensus EPS estimates for the last four quarters [2] - Quarterly revenues reached $4.79 billion, surpassing the Zacks Consensus Estimate by 1.25%, and up from $4.53 billion year-over-year [2] - The company has consistently topped consensus revenue estimates over the last four quarters [2] Group 2: Stock Performance and Outlook - The stock has declined approximately 0.3% since the beginning of the year, while the S&P 500 has decreased by 10.4% [3] - The current consensus EPS estimate for the upcoming quarter is $1.75 on revenues of $4.83 billion, and for the current fiscal year, it is $6.81 on revenues of $19.26 billion [7] - The Zacks Rank for the stock is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Banks - Major Regional industry is currently ranked in the top 29% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [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 Insights - The Bank of New York Mellon Corporation (BNY) reported its financial results for the first quarter of 2025, with details available on their investor relations website [1] - A conference call and live audio webcast will be held to discuss the results, including forward-looking statements [1] Company Overview - BNY is a global financial services company with over 240 years of experience, managing, moving, and safeguarding money [4] - The company serves over 90% of Fortune 100 companies and nearly all of the top 100 banks globally, supporting governments and pension plans [4] - As of March 31, 2025, BNY oversees $53.1 trillion in assets under custody and/or administration and $2.0 trillion in assets under management [4]

Revenue and Income - Fee and other revenue for Q1 2025 was $3,633 million, a decrease of 1% from Q4 2024 and an increase of 4% from Q1 2024[3] - Total revenue for Q1 2025 was $4,792 million, reflecting a 1% decrease from Q4 2024 and a 6% increase from Q1 2024[3] - Net income applicable to common shareholders increased to $1,149 million, a 2% increase from Q4 2024 and a 21% increase from Q1 2024[3] - Diluted earnings per common share rose to $1.58, up 3% from Q4 2024 and 26% from Q1 2024[3] - Total revenue for 1Q25 was $779 million, a decrease of 11% from $873 million in 4Q24 and 8% from $846 million in 1Q24[26] - Total revenue for the Investment and Wealth Management segment in Q1 2025 was $779 million, down from $873 million in Q4 2024, representing a decline of 10.8%[45] Assets and Liabilities - Total assets increased to $440,691 million as of March 31, 2025, up from $416,064 million at the end of 2024, representing a growth of 5.0%[7] - Total liabilities rose to $397,068 million, compared to $374,300 million at the end of 2024, marking an increase of 6.1%[7] - Total assets as of Q1 2025 were $415,844 million, a slight decrease from $420,344 million in Q4 2024[11] - Net loans stood at $71,109 million as of March 31, 2025, slightly down from $71,276 million at the end of 2024[7] - Deposits increased to $308,644 million in Q1 2025, up from $289,524 million in Q4 2024, reflecting a growth of 6.1%[7] Capital and Ratios - The Common Equity Tier 1 (CET1) ratio improved to 11.5% from 11.2% in Q4 2024[3] - CET1 capital increased to $19,505 million in Q1 2025, resulting in a CET1 ratio of 11.5%[13] - Total capital for Q1 2025 was $26,581 million, with a total capital ratio of 15.7%[13] - The average assets for Tier 1 leverage ratio were $397,513 million in Q1 2025, with a Tier 1 leverage ratio of 6.2%[13] - The Bank of New York Mellon Corporation's common shareholders' equity at the end of Q1 2025 was $37,788 million, an increase from $36,975 million in Q4 2024, representing a growth of 2.2%[44] - The tangible common shareholders' equity at the end of Q1 2025 was $20,173 million, up from $19,412 million in Q4 2024, indicating an increase of 3.9%[44] Interest Income and Margin - Net interest income decreased to $1,159 million in Q1 2025, down 3% from Q4 2024 but up 11% from Q1 2024[3] - The net interest income for Q1 2025 was $1,159 million, slightly down from $1,194 million in Q4 2024, reflecting a decrease of 2.9%[44] - Net interest margin for Q1 2025 was 1.30%[11] - The net interest margin for Q1 2025 remained stable at 1.30%, consistent with Q4 2024[44] Fees and Performance - Investment services fees for Q1 2025 were $2,411 million, down 1% from $2,438 million in Q4 2024, but up 6% compared to $2,278 million in Q1 2024[9] - Investment management and performance fees totaled $739 million in Q1 2025, a decrease of 9% from $808 million in Q4 2024 and down 5% from $776 million in Q1 2024[9] - Total fee revenue for Q1 2025 was $1,530 million, a decrease of 1% from Q4 2024 and an increase of 5% from Q1 2024[15] - Total investment services fees for Q1 2025 were $1,329 million, a decrease of 1% from Q4 2024 and an increase of 4% from Q1 2024[15] Noninterest Expenses and Margins - Noninterest expense for 1Q25 was $714 million, a slight increase of 2% from $700 million in 4Q24 and a decrease of 4% from $740 million in 1Q24[26] - The pre-tax operating margin for Q1 2025 was 31%, compared to 28% in Q4 2024 and 28% in Q1 2024[15] - The pre-tax operating margin for the Investment and Wealth Management segment in Q1 2025 was 8%, a decrease from 20% in Q4 2024[45] Other Financial Metrics - The market capitalization increased to $60,003 million, up from $55,139 million in Q4 2024[3] - The average daily U.S. dollar payment volumes in Treasury Services for Q1 2025 were $244,673 million, a decrease of 2% from Q4 2024 and an increase of 3% from Q1 2024[22] - The number of sponsored Depositary Receipts programs at the end of Q1 2025 was 488, a decrease of 2% from Q4 2024 and 7% from Q1 2024[17] - Nonperforming assets total $213 million as of March 31, 2025, compared to $227 million in the previous quarter[36]

The upcoming report from The Bank of New York Mellon Corporation (BK) is expected to reveal quarterly earnings of $1.49 per share, indicating an increase of 15.5% compared to the year-ago period. Analysts forecast revenues of $4.74 billion, representing an increase of 4.6% year over year.The consensus EPS estimate for the quarter has undergone a downward revision of 1.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initia ...

Core Insights - Reality Defender has secured strategic investments from BNY, Samsung Next, and Fusion Fund to enhance its deepfake and AI-generated media detection capabilities, addressing the growing threat of deepfake-enabled fraud [1][4] - The company, founded in 2021, offers advanced detection solutions for enterprises, government, and institutional clients, protecting against various forms of deepfake impersonations [2][6] - The prevalence of deepfakes is alarming, with a deepfake attempt occurring every five minutes in 2024 and deepfakes accounting for 40% of all biometric fraud, highlighting the urgent need for Reality Defender's technology [3] Company Overview - Reality Defender specializes in securing communication channels against deepfake impersonations, enabling secure interactions in an AI-driven environment [6] - The company employs a patented multimodal approach for real-time detection of sophisticated impersonations, integrating seamlessly with existing infrastructures [6] - Reality Defender was recognized as the Most Innovative Company at the 2024 RSA Innovation Sandbox competition, underscoring its leadership in developing solutions for AI-generated threats [4] Investment Context - BNY's investment reflects its commitment to safeguarding the integrity of financial transactions amid rising risks from deepfake technology [4] - Samsung Next emphasizes the importance of real-time deepfake detection to maintain trust in digital communications as AI-generated content becomes more sophisticated [4] - Fusion Fund highlights the significant threat deepfake technology poses to institutional trust in the digital economy, supporting Reality Defender's proactive approach to detection [4][12]

About BNY BNY is a global financial services company that helps make money work for the world – managing it, moving it and keeping it safe. For more than 240 years BNY has partnered alongside clients, putting its expertise and platforms to work to help them achieve their ambitions. Today BNY helps over 90% of Fortune 100 companies and nearly all the top 100 banks globally to access the money they need. BNY supports governments in funding local projects and works with over 90% of the top 100 pension plans to ...

Group 1 - The article discusses an upcoming IPO for an exchange-traded fixed-income security related to The Bank of New York Mellon Corporation [1] - It invites active investors to join a free trial and engage in discussions with sophisticated traders and investors [1] Group 2 - The article emphasizes that past performance does not guarantee future results and does not provide specific investment recommendations [2] - It clarifies that the analysts involved may not be licensed or certified by any regulatory body [2]