Financial Data and Key Metrics Changes - Consolidated revenue increased by 11% to $6.4 billion, with underlying growth of 4% [12][15] - Adjusted operating income rose by 13% year-over-year, with adjusted EPS growing by 11% to $1.85 [5][13] - Adjusted operating margin increased by 30 basis points to 22.7% [15][24] Business Line Data and Key Metrics Changes - Risk and insurance services revenue was $3.9 billion, up 13% year-over-year, with underlying growth of 3% [15][16] - Consulting segment revenue increased by 9% to $2.5 billion, with underlying growth of 5% [17][19] - Marsh's revenue grew by 16% to $3.4 billion, with underlying growth of 4% [16][17] Market Data and Key Metrics Changes - Global commercial insurance rates decreased by 4% in Q3, with property rates down 8% year-over-year [10][11] - U.S. rates were down by 1%, while Canada saw a 3% decline [10] - Global casualty rates increased by 3%, with U.S. excess casualty up 16% [11] Company Strategy and Development Direction - The company will rebrand from Marsh & McLennan Companies to Marsh in January, aiming to enhance visibility and strengthen its value proposition [5][6] - The Thrive program aims to generate approximately $400 million in savings over three years, with a focus on automation and efficiency [6][21] - The company is investing in AI and technology to improve client service and operational efficiency [7][22] Management's Comments on Operating Environment and Future Outlook - Management anticipates mid-single-digit underlying revenue growth for 2025, despite economic uncertainties [13][25] - The company is confident in its ability to navigate different economic cycles and pricing pressures [30][44] - Management noted that the current economic environment is uneven, impacting client behavior and growth [62] Other Important Information - The company repurchased $400 million of its stock in the quarter [13][24] - Total debt at the end of the quarter was $19.6 billion, with a cash position of $2.5 billion [24] Q&A Session Summary Question: Impact of government shutdown on growth outlook - Management acknowledged potential pressures from the macro environment but remains confident in their growth strategy and execution [30] Question: Details on the new wholesale business - The company is not looking to build a third-party wholesale business but will develop internal capabilities where necessary [33] Question: Thrive program cost and savings ratio - Management highlighted a favorable cost-to-savings ratio and expressed confidence in achieving the projected savings [37][39] Question: Organic growth expectations in the U.S. - Management indicated that organic growth in the U.S. may remain stable despite economic uncertainties [42][44] Question: Performance of Oliver Wyman amid economic uncertainty - Management expressed satisfaction with Oliver Wyman's growth and noted strong demand for their services [47][50] Question: M&A environment in insurance brokerage - Management confirmed ongoing appetite for M&A and noted a potential widening of bid-ask spreads in the current market [77][79]

Marsh & McLennan Companies (NYSE:MMC) Q3 2025 Earnings Call October 16, 2025 08:00 AM ET Company ParticipantsMartin South - CEONick Studer - CEOGreg Peters - Managing DirectorJohn Doyle - President and CEOElyse Greenspan - Managing DirectorBrian Meredith - Managing DirectorMark McGivney - CFOConference Call ParticipantsDavid Motemaden - Managing Director and Senior Equity Research AnalystMike Zaremski - Senior Equity Research Analyst and Managing DirectorRob Cox - VP and Equity Research AnalystAlex Scott - ...

Financial Data and Key Metrics Changes - Consolidated revenue increased by 11% to $6.4 billion, with underlying growth of 4% despite headwinds from fiduciary interest income [11][14] - Adjusted operating income rose by 13% year-over-year, with an adjusted operating margin increase of 30 basis points to 22.7% [14][23] - Adjusted EPS grew by 11% to $1.85, while GAAP EPS was reported at $1.51 [14][23] Business Line Data and Key Metrics Changes - Risk and insurance services revenue was $3.9 billion, up 13% year-over-year, with underlying growth of 3% [14][15] - Marsh's revenue increased by 16% to $3.4 billion, with 4% underlying growth [15][16] - Consulting segment revenue was $2.5 billion, up 9% or 5% on an underlying basis [16][17] Market Data and Key Metrics Changes - Global commercial insurance rates decreased by 4% in Q3, with property rates down 8% year-over-year [9][10] - Global casualty rates increased by 3%, with U.S. excess casualty up 16% [10] - Dedicated reinsurance capital is projected to reach approximately $650 billion by year-end 2025 [10] Company Strategy and Development Direction - The company will change its brand to Marsh in January 2026, aiming to enhance visibility and strengthen its value proposition [4][5] - The Thrive program aims to generate approximately $400 million in savings over three years, with a focus on automation and efficiency [5][20] - The company is investing in AI and technology to improve client service and operational efficiency [6][21] Management's Comments on Operating Environment and Future Outlook - Management anticipates mid-single-digit underlying revenue growth for 2025, despite economic uncertainties and pricing pressures [12][24] - The company is confident in its ability to navigate different economic cycles and maintain growth [28][41] - Management noted that the current economic environment is uneven, impacting client behavior and growth rates [41][56] Other Important Information - The company repurchased $400 million of its stock in the quarter and plans to deploy approximately $4.5 billion of capital in 2025 across dividends, acquisitions, and share repurchases [12][23] - Interest expense increased to $237 million from $154 million year-over-year [22][23] Q&A Session Summary Question: Impact of government shutdown on growth outlook - Management acknowledged the potential for low to mid-single-digit growth due to macroeconomic pressures but expressed confidence in their positioning and execution [28] Question: Details on the new wholesale business - The company clarified that it is not looking to build a third-party wholesale business but will develop internal capabilities where necessary [30][32] Question: Thrive program cost and savings ratio - Management highlighted a favorable cost-to-savings ratio for the Thrive program and expressed confidence in achieving the projected savings [34][36] Question: Organic growth expectations in the U.S. - Management indicated that organic growth in the U.S. is expected to remain stable despite economic uncertainties [40][41] Question: Oliver Wyman's growth amid economic uncertainty - Management reported strong growth at Oliver Wyman and expressed optimism about the demand pipeline despite a complex operating environment [44][46] Question: International pricing sensitivity - Management noted that pricing dynamics vary by geography, with a competitive market impacting overall rates [59][60] Question: M&A environment and appetite for larger deals - Management confirmed ongoing interest in M&A, focusing on cultural fit and strategic alignment rather than just size [69][70]

Financial Data and Key Metrics Changes - Revenues for Q2 FY26 grew 2.2% sequentially and 2.9% year-on-year in constant currency terms, with quarterly revenues crossing $5 billion and $10 billion for the half year [3][6] - Operating margins expanded by 20 basis points sequentially to 21%, with H1 margins at 20.9% compared to 21.1% in H1 FY25 [7][9] - Free cash flow stood at $1.1 billion, representing 131% of net profit, marking the sixth consecutive quarter above 100% [8][9] - Earnings per share (EPS) in rupee terms grew by 13% year-on-year to INR 17.6 [8] Business Line Data and Key Metrics Changes - Financial services and manufacturing verticals grew above 5% year-on-year in constant currency terms for both Q2 and H1 [7][11] - The company signed 23 large deals during the quarter, with significant contributions from financial services, manufacturing, communication, and retail sectors [10][11] - The manufacturing segment faced trade and macro uncertainties, impacting discretionary spending, particularly in the automotive sector [11][12] Market Data and Key Metrics Changes - Four of the five large industry verticals and three of the four geographies grew year-on-year in constant currency terms [3] - Europe experienced growth greater than 5% year-on-year in constant currency terms [7] - The deal pipeline remains strong, with a focus on cost reduction and operational efficiency across various sectors [12][13] Company Strategy and Development Direction - The company has revised its revenue growth guidance for the financial year to 2% to 3% in constant currency terms, maintaining operating margin guidance at 20% to 22% [5][14] - Infosys is positioning itself as a leading enterprise AI services provider, with a focus on AI-driven initiatives and modernization projects [4][15] - The strategic approach includes a joint venture with Versent in Australia, aimed at enhancing service capabilities [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macro uncertainties and highlighted strong client demand for AI and modernization initiatives [11][14] - The company anticipates seasonal factors impacting growth in H2, with lower working days and potential furloughs [14][68] - Management noted that while there is uncertainty in the environment, the overall pipeline and signing remain strong [11][44] Other Important Information - The company added 8,000 employees during the quarter, with a total headcount of 332,000 [8] - Cash and investments totaled $6.2 billion at the end of the quarter, with a yield on cash balance of 6.98% [9] - The company announced an INR 18,000 crore buyback plan and an interim dividend of INR 23, reflecting a 9.5% increase from the previous year [10] Q&A Session Summary Question: Partnerships with companies building AI capabilities - Management confirmed ongoing partnerships with companies expanding AI capabilities, focusing on modernization as a significant growth opportunity [28][30] Question: Large deal margins and comfort level - Management stated that while they do not disclose margins separately, they maintain a disciplined approach to large deals to ensure margin profiles are preserved [31] Question: Smaller deal activity and average sizes - Management indicated no significant changes in smaller deal activity, with a consistent structure in deal sizes [33][34] Question: Impact of H1B visa changes on business model - Management noted that while there is uncertainty, they have been working on localization strategies to adapt to changes in the visa landscape [44][45] Question: AI's impact on revenue growth profile - Management highlighted that AI presents both growth opportunities and efficiency improvements, with a focus on cost reduction in the current economic environment [55][56] Question: Seasonal softness and employee additions - Management explained that the addition of employees was driven by demand visibility, despite anticipated seasonal softness in H2 [74]

The Bank of New York Mellon (NYSE:BK) Q3 2025 Earnings Call October 16, 2025 07:30 AM ET Company ParticipantsRobin Vince - CEODermot McDonogh - CFOMarius Merz - Head of Investor RelationsConference Call ParticipantsGlenn Schorr - Senior Research AnalystEbrahim Poonawala - AnalystKen Usdin - AnalystBrennan Hawken - AnalystGerard Cassidy - Large Cap Bank AnalystDavid Smith - AnalystBetsy Graseck - AnalystMike Mayo - Research AnalystAlex Blostein - Senior AnalystOperatorGood morning and welcome to the 2025 Thi ...

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]

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]

Financial Data and Key Metrics Changes - The company reported record revenue of $5.1 billion, up 9% year over year [5][21] - Earnings per share increased to $1.88, reflecting a 25% year-over-year growth [6][24] - The pretax margin improved to 36%, with a return on tangible common equity of 26% [6][24] Business Line Data and Key Metrics Changes - Security Services revenue was $2.5 billion, up 11% year over year, driven by strong client activity and market values [28] - Markets and Wealth Services segment reported total revenue of $1.8 billion, up 14% year over year [30] - Investment and Wealth Management segment revenue decreased to $824 million, down 3% year over year, with assets under management flat at $2.1 trillion [33][34] Market Data and Key Metrics Changes - Firm-wide assets under custody and administration (AUCA) increased to $57.8 trillion, up 11% year over year [22] - The ETF AUCA grew by 35% year over year, outperforming market growth [28] - Foreign exchange revenue was down 5% year over year, reflecting corporate treasury activity [22] Company Strategy and Development Direction - The company is focused on two core transformation programs: a new commercial model and a platform operating model [8][9] - The new commercial model aims to deliver integrated solutions and enhance client relationships [9][10] - The company is investing in AI and has launched the BNY AI Lab in collaboration with Carnegie Mellon University [16] Management's Comments on Operating Environment and Future Outlook - Management noted a resilient U.S. economy despite challenges such as inflation and geopolitical risks [6][8] - The company expects net interest income for the fourth quarter to be flat sequentially, projecting a 12% year-over-year increase for the full year [36] - Management expressed confidence in the strategy's effectiveness, citing positive indicators for future success [19] Other Important Information - The company returned approximately $1.2 billion of capital to shareholders, resulting in a 92% total payout ratio year to date [25] - The transition to the platform operating model is over 70% complete, with expectations to finish by next year [14] Q&A Session Summary Question: How much of the growth year over year is attributed to company actions versus market conditions? - Management indicated that the growth is a balanced mix of organic growth, higher market levels, and foreign exchange impacts, with the new commercial model enabling better cross-selling opportunities [40][41] Question: Can you expand on the approach towards interest rate risk management? - Management highlighted the sophistication in risk management tools and a clean, liquid balance sheet, which has contributed to strong net interest income [49][51] Question: What early trends have been seen in securities lending due to capital markets activity? - Management noted no significant changes in securities lending but emphasized the importance of the business within the broader collateral management franchise [58][60] Question: How does the company view the evolution of money market funds and stablecoins? - Management sees the evolution as an opportunity rather than turbulence, emphasizing the company's readiness to adapt to technological changes in the market [68][70] Question: Can you provide insights on multiline business solutions and their growth? - Management indicated that nearly half of the asset servicing wins were multiline solutions, reflecting a meaningful increase compared to previous periods [75][78]

Financial Data and Key Metrics Changes - The company reported a revenue growth of 2.2% sequentially and 2.9% year-on-year in constant currency terms for Q2 [2][3] - Operating margin was reported at 21% [3] - The revenue growth guidance for the financial year was revised to 2% to 3% in constant currency terms, while the operating margin guidance remains at 20% to 22% for the full year [4] Business Line Data and Key Metrics Changes - Large deals amounted to $3.1 billion, with 67% being new or net new work [3] - The company added 8,000 employees during the quarter [3] Market Data and Key Metrics Changes - Strong performance was noted in manufacturing and financial services, while retail continues to face constraints [10][21] - The company has seen good traction in its client base, particularly in financial services and manufacturing [21] Company Strategy and Development Direction - The company is focusing on deploying AI across enterprises for growth and cost efficiency [3][16] - There is a strong emphasis on scaling the team of forward-deployed engineers to support AI initiatives [3] - The company is actively looking at further acquisitions to enhance capabilities in various sectors [14][60] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the uncertain global environment but expressed confidence in the guidance due to good traction observed [9][21] - The company is adapting to changes in the macroeconomic environment, with a focus on cost optimization and automation [29] Other Important Information - The company is strengthening its nearshore centers and local hiring strategies in response to stricter H-1B visa norms [44][46] - The recent mega deal worth $1.6 billion is with the UK NHS, focusing on a complete transformation supported by AI technologies [44] Q&A Session Summary Question: Insights on guidance and industry recovery - The management explained that the guidance reflects a typical seasonal pattern, with the second half of the year being slower than the first half, and noted good performance in manufacturing and financial services despite constraints in retail [9][10] Question: H-1B visa concerns - The management stated that the majority of employees in the U.S. do not require Infosys immigration support and emphasized a focus on local hiring and nearshore strategies [11][12][64] Question: AI revenue quantification - The management acknowledged the interest in AI projects and indicated that they are scaling up efforts in enterprise AI, but did not provide specific revenue figures [16][20] Question: Project Maximus impact - The management reported that Project Maximus has continued to deliver margin expansion despite headwinds, contributing positively to the operating margin [26] Question: Client contribution changes - The management noted that changes in client contributions are marginal and attributed them to project ramp-ups and ramp-downs [32] Question: Acquisitions and growth outlook - The management confirmed ongoing interest in acquisitions to fill capability gaps and enhance growth, particularly in sectors like digital and AI [14][60] Question: Voluntary attrition increase - The management acknowledged an increase in voluntary attrition compared to the previous year but did not provide specific reasons [71] Question: Nearshore strategy - The management highlighted the success of nearshore centers and local hiring initiatives, which are expected to scale further [46][44]

Financial Data and Key Metrics Changes - In Q3 2025, the average market spot rates for Handysize and Supramax vessels were approximately $11,600 and $14,300 net per day, reflecting a decrease of 1% and an increase of 4% respectively compared to the same period in 2024 [5] - The average TCE earnings for Handysize and Supramax vessels were $11,680 and $13,410, representing a year-on-year decrease of 15% for Handysize and an increase of 10% for Supramax [8] - The company has utilized approximately $26 million of its announced $40 million share buyback program, completing about 65% of the targeted buyback [20] Business Line Data and Key Metrics Changes - The core business generated average TCE earnings of $11,680 for Handysize and $13,410 for Supramax in Q3 2025, with performance against market indices showing a $90 per day outperformance for Handysize but a $100 per day underperformance for Supramax [8][9] - Operating activities generated a daily average margin of $750 over 6,830 operating days in Q3 [10] Market Data and Key Metrics Changes - Global mined bulk loadings rose 4% year-on-year, driven by bauxite, fertilizers, and mined ores, while grain loadings decreased by 9% [5][6] - Coal earnings reduced by 6% year-on-year due to weaker demand from major markets, with China’s coal imports falling by 15% [7] - The combined global fleet of Handysize and Supramax vessels is estimated to grow by 4.3% in 2025, with newbuilding deliveries accounting for 4.4% of this growth [13] Company Strategy and Development Direction - The company aims to strategically renew and grow its fleet, maintaining fixed price purchase options on 13 long-term chartered vessels and planning to take delivery of newbuildings in 2026 [15] - The focus remains on expanding growth optionality while managing fleet renewal in a disciplined manner [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the dry bulk market, anticipating steady minor bulk demand growth and potential supply disruptions that could support tighter freight market conditions [21] - The company is prepared for ongoing macroeconomic and industry uncertainties, leveraging its financial strength and agile business model to navigate challenges [21] Other Important Information - The company has taken proactive steps to comply with new port tariffs, including transferring vessels to Singapore ownership to mitigate potential impacts [16][18] - The company does not believe it is subject to special tariffs under U.S. and Chinese regulations, as it maintains a diverse shareholder base [17][18] Q&A Session Summary Question: Can you elaborate on congestion and disruptions related to port tariffs? - Management noted that while there are concerns about congestion, the market has improved since summer, and strategic leadership has shifted to Singapore to align with regulatory definitions [28][29] Question: What is the expectation from the ongoing IMO meeting regarding supply dynamics? - Management expressed hope for regulations on decarbonization, which could positively impact the business and support new building initiatives [33] Question: How is the company managing disruptions from new port fees? - Management acknowledged that disruptions create inefficiencies, which could positively impact the market in the short term, while emphasizing the need for clarity on regulations [39][84] Question: What is the outlook for the spot market and outperformance in Q4? - Management indicated a positive outlook for the market, driven by demand growth and seasonal factors, while acknowledging the typical lag in performance during rising markets [56][58] Question: What are the CapEx plans and new building market expectations? - Management outlined a cautious approach to CapEx, focusing on share buybacks and monitoring the secondhand market, while noting that newbuilding orders remain low due to market uncertainties [72][76]