Financial Data and Key Metrics Changes - The company reported record revenue of $5.1 billion, up 9% year-over-year, with earnings per share of $1.88, up 25% year-over-year [3][14] - Pre-tax margin improved to 36%, and return on tangible common equity was 26% [3][16] - Total assets under custody and administration (AUCA) reached $57.8 trillion, up 11% year-over-year [14] - Net interest income was $1.2 billion, up 18% year-over-year, driven by reinvestment of maturing investment securities at higher yields [15][17] Business Line Data and Key Metrics Changes - Security Services segment reported total revenue of $2.5 billion, up 11% year-over-year, with investment services fees also up 11% [18] - Market and Wealth Services segment revenue was $1.8 billion, up 14% year-over-year, with net new assets of $3 billion driven by inflows from existing and new clients [21] - Investment and Wealth Management segment revenue was $824 million, down 3% year-over-year, with assets under management flat at $2.1 trillion [22][23] Market Data and Key Metrics Changes - The U.S. economy remained resilient despite a cooling labor market and persistent inflation [3][4] - Equity markets continued to climb, and credit spreads remained tight, contributing to solid growth in client balances and robust trading activity [4] Company Strategy and Development Direction - The company is focused on two core transformation programs: a new commercial model and a platforms operating model, both showing positive results [5][9] - The company is embracing AI, launching the BNY AI Lab in collaboration with Carnegie Mellon University to advance AI research and deployment [10][11] - The company aims to enhance its digital asset capabilities and has made significant investments in this area, including partnerships for tokenization and blockchain initiatives [7][8][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate uncertainties such as geopolitical conditions and trade policies while executing its strategy [4][13] - The company expects net interest income for the fourth quarter to be approximately flat sequentially, projecting a full-year increase of 12% year-over-year [25] - Management highlighted the importance of a diversified platform-oriented strategy to capitalize on various market conditions [32][33] 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 expected to be completed within the next year, with full benefits anticipated 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 emphasized the strength and liquidity of the balance sheet, noting proactive measures taken to position for potential lower interest rates [36][39] Question: What early trends have you seen on the back of M&A activity regarding securities lending? - Management noted no significant changes in securities lending but highlighted the importance of the business within the broader collateral management franchise [46][48] Question: Do you think the rise of stablecoins could put pressure on fee rates? - Management viewed the evolution of money market funds and stablecoins as an opportunity rather than turbulence, emphasizing the company's readiness to adapt to technological changes [56][58] Question: How does the company view the total addressable market (TAM) for digital assets? - Management sees digital assets as a long-term opportunity, with investments made to position the company for various aspects of the evolving market [75][77]