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 - 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][16] - 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, with investment services fees also increasing by 11% [18] - Market and Wealth Services segment reported total revenue of $1.8 billion, up 14% year-over-year, with investment services fees rising by 9% [20] - Investment and Wealth Management segment revenue decreased to $824 million, down 3% year-over-year, with investment management fees down 1% [22] Market Data and Key Metrics Changes - The U.S. economy remained resilient despite a cooling labor market and persistent inflation above the Federal Reserve's target [3] - Equity markets continued to rise, and credit spreads remained tight, contributing to solid growth in client balances and robust trading activity [4] Company Strategy and Development Direction - BNY Mellon is focused on reimagining its operations through two core transformation programs: a new commercial model and a platforms operating model [4][10] - The company is embracing AI, launching the BNY AI Lab in collaboration with Carnegie Mellon University to advance AI research and deployment [10] - The firm is also investing in digital assets and blockchain technology to support institutional adoption and enhance product offerings [8][10] 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 executing its transformation strategy [4][12] - The company anticipates continued organic growth driven by its integrated solutions and the successful implementation of its commercial model [5][10] Other Important Information - BNY Mellon returned approximately $1.2 billion of capital to shareholders, resulting in a 92% total payout ratio year-to-date [17] - The firm expects net interest income for the fourth quarter to be approximately flat sequentially, projecting a full-year increase of 12% year-over-year [25] 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 the commercial model and platform operating model positioning the company to take advantage of market opportunities [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 of their risk management tools and the strength of their balance sheet, which has allowed them to navigate seasonal declines in deposits while capitalizing on capital markets activity [36][38] Question: What early trends have you seen on the back of M&A activity regarding securities lending? - Management noted that while they haven't seen a noticeable change in securities lending, they remain focused on the business and its adjacency to broader collateral management services [42][44] Question: Is the move towards on-chain tokenization disruptive from revenue margins for BNY Mellon? - Management views the evolution towards on-chain capabilities as a tangible revenue opportunity rather than a risk, emphasizing their readiness to adapt to technological changes in the market [78][79]