Financial Data and Key Metrics Changes - BNY Mellon reported record revenue of $5.1 billion, up 9% year-over-year, with a pre-tax margin improvement to 36% and a return on tangible common equity of 26% [3][14] - Earnings per share reached $1.88, reflecting a 25% increase year-over-year [3][16] - Total assets under custody and administration (AUCA) increased to $57.8 trillion, up 11% year-over-year [14] Business Line Data and Key Metrics Changes - Security Services segment revenue was $2.5 billion, up 11% year-over-year, driven by a 12% increase in investment services fees [18] - Market and Wealth Services segment revenue rose to $1.8 billion, up 14% year-over-year, with net new assets of $3 billion [21] - Investment and Wealth Management segment revenue decreased to $824 million, down 3% year-over-year, with assets under management remaining flat at $2.1 trillion [22][23] Market Data and Key Metrics Changes - The U.S. economy showed resilience despite a cooling labor market and persistent inflation, with equity markets climbing and credit spreads remaining tight [4] - Client balances grew solidly across platforms, with robust trading, clearing, and settlement activity [4] Company Strategy and Development Direction - The company is focused on reimagining BNY Mellon through two core transformation programs: a new commercial model and a platforms operating model [5][10] - The new commercial model aims to deliver integrated solutions and enhance client relationships, with significant wins in asset servicing [6][7] - BNY Mellon is embracing AI, launching the BNY AI Lab in collaboration with Carnegie Mellon University to advance AI research and deployment [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate uncertainties, including geopolitical conditions and trade policies, while continuing to execute on strategic initiatives [4][13] - The company anticipates net interest income for the fourth quarter to be flat sequentially, projecting a full-year increase of 12% year-over-year [25][26] Other Important Information - The company returned approximately $1.2 billion of capital to shareholders, resulting in a 92% total payout ratio year-to-date [17] - The transition to the platforms operating model is over 70% complete, with expectations to realize full benefits by early 2028 [9] Q&A Session Summary Question: How much of this growth year over year would you attribute to actions that you've taken versus just a generally good market backdrop? - Management indicated that the growth is a mix of organic growth, higher market levels, and foreign exchange impacts, with a balanced contribution from each factor [27][29] Question: Can you expand a little bit more about de-risking the balance sheet and how you've changed your approach towards interest rate risk management? - Management highlighted the sophistication in risk management tools and a clean, liquid balance sheet, which has contributed to the strength in net interest income [36][38] Question: What early trends have you seen on the back of M&A, merger arb, IPO activity, and the like? - Management noted that there hasn't been a noticeable change in securities lending related to M&A activity, but they remain focused on the business as the world's largest agency lenders [44][47] Question: Do you think the rise of stablecoins could put pressure on fee rates? - Management views the evolution of money market funds and stablecoins as an opportunity rather than turbulence, emphasizing their broad participation in the money market ecosystem [56][58] Question: Can you help us frame how the multi-line of business solutions compare to previous years? - Management indicated that the trend of cross-selling multi-line solutions is meaningfully higher compared to previous years, reflecting the success of the commercial model [60][63]

Financial Data and Key Metrics Changes - Earnings per share (EPS) of $1.93 increased by 27% year over year, and by 28% excluding notable items [7][21] - Total revenue rose by 9% year over year, exceeding $5 billion for the first time in a quarter [7][17] - Pre-tax margin improved to 37%, and return on tangible common equity increased to 28% [7][21] Business Line Data and Key Metrics Changes - Security Services reported total revenue of $2.5 billion, up 10% year over year, with investment services fees growing by 10% [26] - Marks and Wealth Services segment revenue increased by 13% year over year to $1.7 billion, with net interest income up 21% [29] - Investment and Wealth Management segment revenue decreased by 2% year over year, with assets under management at $2.1 trillion, reflecting a 3% increase [30] Market Data and Key Metrics Changes - Firm-wide assets under custody and administration (AUCA) reached $55.8 trillion, up 13% year over year [19] - Foreign exchange revenue increased by 16% year over year due to elevated volatility and higher volumes [20] - Net interest income rose by 17% year over year, driven by reinvestment of maturing investment securities at higher yields [24] Company Strategy and Development Direction - The company is focused on a multiyear transformation to capture market beta and generate alpha through improved operational efficiency and client engagement [8][9] - Emphasis on delivering innovative solutions and enhancing the commercial model to deepen client relationships [10][11] - The transition to a platforms operating model is expected to enhance efficiency and client service [13][14] Management's Comments on Operating Environment and Future Outlook - Management noted elevated market volatility and geopolitical tensions as key factors influencing the operating environment [6][5] - The company expects solid fee revenue growth in 2025, with net interest income projected to increase by high single digits year over year [32] - Management remains optimistic about the potential for organic growth and the impact of AI on operational efficiency [84][85] Other Important Information - The company returned approximately $1.2 billion of capital to shareholders, resulting in a 92% total payout ratio year to date [23] - A 13% increase in the quarterly common stock dividend was declared following the Federal Reserve's stress test results [33] Q&A Session Summary Question: How does the company view capital deployment relative to stock trading? - Management emphasized strong momentum and the importance of investing in the business while remaining open to sensible M&A opportunities if they align with strategic priorities [40][41] Question: Is it safe for investors to assume a high return on tangible common equity? - Management indicated that there is no ceiling on medium-term targets and that the company is focused on continuous improvement and organic growth [44][45] Question: Are fees performing better than original expectations? - Management acknowledged strong performance in fees and highlighted the positive operating leverage achieved, with a focus on organic growth [50][51] Question: What investments are being made to improve Investment Management performance? - Management noted leadership changes and a focus on cross-selling within the firm to enhance performance in Investment Management [62][66] Question: What is the outlook for acquisitions? - Management stated that while M&A can be a powerful tool, the primary focus remains on driving organic growth and ensuring any acquisitions align with strategic goals [102]