| Metric [Unit: USD Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Securities Services**    | 2,172  **[0001390777-23-000002_ex991_earningsreleasex4q22.htm:3]**  | 2,116  **[0001390777-23-000046_bk-20230331.htm:107]**  | 2,200  **[BK_3254799_4]**  | 2,089  **[0001390777-23-000088_ex992_financialsupplementx.htm:7]**  | 2,200  **[BK_3370239_4]**  | 2,139  **[0001390777-24-000061_ex991_earningsreleasex1q24.htm:3]**  | 2,239  **[0001390777-24-000091_ex991_earningsreleasex2q24.htm:2]**  | 2,214  **[0001390777-24-000115_ex991_earningsreleasex3q24.htm:2]**  |
| **Market and Wealth Services** | 1,399  **[0001390777-23-000002_ex991_earningsreleasex4q22.htm:4]**  | 1,467  **[0001390777-23-000046_bk-20230331.htm:107]**  | 1,400  **[BK_3254799_4]**  | 1,445  **[0001390777-23-000088_ex992_financialsupplementx.htm:9]**  | 1,500  **[BK_3370239_4]**  | 1,517  **[0001390777-24-000061_ex991_earningsreleasex1q24.htm:4]**  | 1,535  **[0001390777-24-000105_bk-20240630.htm:19]**  | 1,545  **[0001390777-24-000133_bk-20240930.htm:20]**  |
| **Investment and Wealth Management** | 825  **[0001390777-23-000002_ex991_earningsreleasex4q22.htm:5]**  | 827  **[0001390777-23-000046_bk-20230331.htm:107]**  | 813  **[BK_3383270_6]**  | 827  **[BK_3337565_6]**  | 676  **[BK_3370239_4]**  | 846  **[0001390777-24-000061_ex993_financialhighlight.htm:3]**  | 821  **[0001390777-24-000091_ex991_earningsreleasex2q24.htm:4]**  | 849  **[0001390777-24-000115_ex991_earningsreleasex3q24.htm:4]**  |
| **Other Segment**          | (478)  **[0001390777-23-000002_ex991_earningsreleasex4q22.htm:6]**  | N/A     | N/A     | N/A     | N/A     | N/A     | N/A     | N/A     |

56db972a747fb456bec664473ec3efe83cc93fb64f64f5003bdea52abf9eb58a

2091f5bda06a8e1a2252d46b4173b8a1dfa05512e2895b2176cbc39481e0616e

93dfdae5be5cadb9fa5606b33f17db5dfb1771353d0c5bb92bd50fb1b51e871a

Total Revenue (USD, millions)

Cost of Goods Sold (COGS) (USD, millions)

Selling, General, and Administrative Expenses (SG&A) (USD, millions)

Research and Development (R&D) (USD, millions)

Depreciation and Amortization (D&A) (USD, millions)

Interest Expense (USD, millions)

Operating Income (EBIT) (USD, millions)

Net Income (USD, millions)

Earnings Per Share (EPS) - Basic (USD)

Earnings Per Share (EPS) - Diluted (USD)

f7c0fca3553983c62cf316865bc3b133ecc3e5e921e3433db178f937fd8a6638

Securities Services

- Total Fee and Other Revenue

- Net Interest Income

- Total Revenue

Market and Wealth Services

Investment and Wealth Management

Other

- Net Interest Income (Expense)

Total Revenue

d80a8055555a76d006d5a12f9f631666583624374124b3ce33feb0fad67d4d49

| Metric / Period | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Nonperforming assets ratio | **0.16**  **[0001390777-23-000033_bk-20221231_d2.htm:46]**  | **0.17**  **[0001390777-23-000046_bk-20230331.htm:30]**  | **0.14**  **[0001390777-23-000081_bk-20230630.htm:35]**  | **0.07**  **[0001390777-23-000103_bk-20230930.htm:36]**  | **0.35**  **[0001390777-24-000051_bk-20231231_d2.htm:41]**  | **0.38**  **[0001390777-24-000075_bk-20240331.htm:32]**  | **0.32**  **[0001390777-24-000105_bk-20240630.htm:36]**  | **0.30**  **[0001390777-24-000133_bk-20240930.htm:37]**  |
| Allowance for loan losses/nonperforming loans | **164.5**  **[0001390777-23-000033_bk-20221231_d2.htm:46]**  | **165.0**  **[0001390777-23-000046_bk-20230331.htm:30]**  | **224.7**  **[0001390777-23-000081_bk-20230630.htm:35]**  | **458.7**  **[0001390777-23-000103_bk-20230930.htm:36]**  | **130.6**  **[0001390777-24-000051_bk-20231231_d2.htm:41]**  | **116.7**  **[0001390777-24-000075_bk-20240331.htm:32]**  | **126.5**  **[0001390777-24-000105_bk-20240630.htm:36]**  | **140.3**  **[0001390777-24-000133_bk-20240930.htm:37]**  |
| Allowance for loan losses/nonperforming assets | **161.5**  **[0001390777-23-000033_bk-20221231_d2.htm:46]**  | **161.9**  **[0001390777-23-000046_bk-20230331.htm:30]**  | **217.0**  **[0001390777-23-000081_bk-20230630.htm:35]**  | **439.6**  **[0001390777-23-000103_bk-20230930.htm:36]**  | **127.8**  **[0001390777-24-000051_bk-20231231_d2.htm:41]**  | **115.8**  **[0001390777-24-000075_bk-20240331.htm:32]**  | **126.0**  **[0001390777-24-000105_bk-20240630.htm:36]**  | **140.3**  **[0001390777-24-000133_bk-20240930.htm:37]**  |
| Allowance for loan losses and lending-related commitments/nonperforming loans | **164.5**  **[0001390777-23-000033_bk-20221231_d2.htm:46]**  | **245.6**  **[0001390777-23-000046_bk-20230331.htm:30]**  | **331.8**  **[0001390777-23-000081_bk-20230630.htm:35]**  | **643.5**  **[0001390777-23-000103_bk-20230930.htm:36]**  | **168.1**  **[0001390777-24-000051_bk-20231231_d2.htm:41]**  | **146.0**  **[0001390777-24-000075_bk-20240331.htm:32]**  | **158.8**  **[0001390777-24-000105_bk-20240630.htm:36]**  | **175.8**  **[0001390777-24-000133_bk-20240930.htm:37]**  |
| Securities purchased not settled | **22**  **[0001390777-23-000033_bk-20221231_d2.htm:311]**  | **240**  **[0001390777-23-000046_bk-20230331.htm:108]**  | **164**  **[0001390777-23-000081_bk-20230630.htm:124]**  | **234**  **[0001390777-23-000103_bk-20230930.htm:126]**  | **1,840**  **[0001390777-24-000051_bk-20231231_d2.htm:319]**  | **1,010**  **[0001390777-24-000075_bk-20240331.htm:117]**  | **521**  **[0001390777-24-000105_bk-20240630.htm:129]**  | **395**  **[0001390777-24-000133_bk-20240930.htm:130]**  |
| Securities sold not settled | **N/A** | **162**  **[0001390777-23-000046_bk-20230331.htm:108]**  | **41**  **[0001390777-23-000081_bk-20230630.htm:124]**  | **455**  **[0001390777-23-000103_bk-20230930.htm:126]**  | **N/A** | **(6)**  **[0001390777-24-000075_bk-20240331.htm:117]**  | **87**  **[0001390777-24-000105_bk-20240630.htm:129]**  | **85**  **[0001390777-24-000133_bk-20240930.htm:130]**  |
| Securities matured not settled | **385**  **[0001390777-23-000033_bk-20221231_d2.htm:311]**  | **N/A** | **N/A** | **455**  **[0001390777-23-000103_bk-20230930.htm:126]**  | **1,840**  **[0001390777-24-000051_bk-20231231_d2.htm:319]**  | **1,840**  **[0001390777-24-000051_bk-20231231_d2.htm:319]**  | **25**  **[0001390777-24-000105_bk-20240630.htm:129]**  | **0**  **[0001390777-24-000133_bk-20240930.htm:130]**  |
| AUM by product type | **1,836**  **[0001390777-23-000033_bk-20221231_d2.htm:21]**  | **1,908**  **[0001390777-23-000046_bk-20230331.htm:19]**  | **1,906**  **[0001390777-23-000081_bk-20230630.htm:22]**  | **1,821**    | **1,974**  **[0001390777-24-000051_bk-20231231_d2.htm:19]**  | **2,015**  **[0001390777-24-000075_bk-20240331.htm:20]**  | **2,045**  **[0001390777-24-000105_bk-20240630.htm:23]**  | **2,144**  **[0001390777-24-000133_bk-20240930.htm:24]**  |
| Net long-term strategy outflows | **N/A** | **5**  **[0001390777-23-000046_bk-20230331.htm:19]**  | **9**  **[0001390777-23-000081_bk-20230630.htm:22]**  | **15**  **[0001390777-23-000103_bk-20230930.htm:23]**  | **25**  **[0001390777-24-000051_bk-20231231_d2.htm:21]**  | **1**  **[0001390777-24-000075_bk-20240331.htm:20]**  | **2**  **[0001390777-24-000105_bk-20240630.htm:23]**  | **24**  **[0001390777-24-000133_bk-20240930.htm:24]**  |
| AUC/A at period end | **44.3**  **[0001390777-23-000033_bk-20221231_d2.htm:5]**  | **46.6**  **[0001390777-23-000046_bk-20230331.htm:5]**  | **46.9**  **[0001390777-23-000081_bk-20230630.htm:5]**  | **45.7**  **[0001390777-23-000103_bk-20230930.htm:6]**  | **47.8**  **[0001390777-24-000051_bk-20231231_d2.htm:4]**  | **48.8**  **[0001390777-24-000075_bk-20240331.htm:6]**  | **49.5**  **[0001390777-24-000105_bk-20240630.htm:6]**  | **52.1**  **[0001390777-24-000133_bk-20240930.htm:3]**  |
| AUM at period end | **1,836**  **[0001390777-23-000033_bk-20221231_d2.htm:5]**  | **1,908**  **[0001390777-23-000046_bk-20230331.htm:19]**  | **1,906**  **[0001390777-23-000081_bk-20230630.htm:22]**  | **1,821**  **[0001390777-23-000103_bk-20230930.htm:23]**  | **1,974**  **[0001390777-24-000051_bk-20231231_d2.htm:4]**  | **2,015**  **[0001390777-24-000075_bk-20240331.htm:20]**  | **2,045**  **[0001390777-24-000105_bk-20240630.htm:23]**  | **2,144**  **[0001390777-24-000133_bk-20240930.htm:24]**  |
| Securities lending indemnifications | **491.043**  **[0001390777-23-000033_bk-20221231_d2.htm:290]**  | **488.416**  **[0001390777-23-000046_bk-20230331.htm:97]**  | **457.772**  **[0001390777-23-000081_bk-20230630.htm:112]**  | **452.620**  **[0001390777-23-000103_bk-20230930.htm:113]**  | **492.739**  **[0001390777-24-000051_bk-20231231_d2.htm:298]**  | **569**  **[0001390777-24-000075_bk-20240331.htm:107]**  | **539.6**  **[0001390777-24-000105_bk-20240630.htm:117]**  | **539.3**  **[0001390777-24-000133_bk-20240930.htm:118]**  |
| Unsettled reverse repurchase agreements | **11.3**  **[0001390777-23-000033_bk-20221231_d2.htm:291]**  | **24.7**  **[0001390777-23-000046_bk-20230331.htm:99]**  | **53.0**  **[0001390777-23-000081_bk-20230630.htm:114]**  | **65.9**  **[0001390777-23-000103_bk-20230930.htm:115]**  | **77.9**  **[0001390777-24-000051_bk-20231231_d2.htm:300]**  | **85.4**  **[0001390777-24-000075_bk-20240331.htm:107]**  | **78.9**  **[0001390777-24-000105_bk-20240630.htm:118]**  | **103.5**  **[0001390777-24-000133_bk-20240930.htm:119]**  |
| Double leverage ratio | **120.5**  **[0001390777-23-000033_bk-20221231_d2.htm:51]**  | **119.9**  **[0001390777-23-000046_bk-20230331.htm:35]**  | **121.0**  **[0001390777-23-000081_bk-20230630.htm:39]**  | **118.7**  **[0001390777-23-000103_bk-20230930.htm:40]**  | **120.5**  **[0001390777-24-000051_bk-20231231_d2.htm:46]**  | **121.2**  **[0001390777-24-000075_bk-20240331.htm:36]**  | **120.6**  **[0001390777-24-000105_bk-20240630.htm:41]**  | **120.4**  **[0001390777-24-000133_bk-20240930.htm:42]**  |
| Liquidity coverage ratio (LCR) | **118**  **[0001390777-23-000033_bk-20221231_d2.htm:51]**  | **118**  **[0001390777-23-000046_bk-20230331.htm:35]**  | **120**  **[0001390777-23-000081_bk-20230630.htm:39]**  | **121**  **[0001390777-23-000103_bk-20230930.htm:40]**  | **117**  **[0001390777-24-000051_bk-20231231_d2.htm:47]**  | **117**  **[0001390777-24-000075_bk-20240331.htm:36]**  | **115**  **[0001390777-24-000105_bk-20240630.htm:42]**  | **116**  **[0001390777-24-000133_bk-20240930.htm:42]**  |
| Net stable funding ratio (NSFR) | **N/A** | **N/A** | **136**  **[0001390777-23-000081_bk-20230630.htm:39]**  | **136**  **[0001390777-23-000103_bk-20230930.htm:41]**  | **135**  **[0001390777-24-000051_bk-20231231_d2.htm:47]**  | **136**  **[0001390777-24-000075_bk-20240331.htm:36]**  | **132**  **[0001390777-24-000105_bk-20240630.htm:42]**  | **132**  **[0001390777-24-000133_bk-20240930.htm:42]**  |
| Assets under custody and/or administration | **44.3**  **[0001390777-23-000033_bk-20221231.htm:8]**  | **46.6**  **[0001390777-23-000046_bk-20230331.htm:2]**  | **46.9**  **[0001390777-23-000081_bk-20230630.htm:2]**  | **45.7**  **[0001390777-23-000103_bk-20230930.htm:2]**  | **47.8**  **[0001390777-24-000051_bk-20231231_d2.htm:2]** **[0001390777-24-000051_bk-20231231.htm:8]**  | **48.8**  **[0001390777-24-000075_bk-20240331.htm:4]**  | **49.5**  **[0001390777-24-000105_bk-20240630.htm:4]**  | **52.1**  **[0001390777-24-000133_bk-20240930.htm:2]**  |
| Assets under management | **1.836**  **[0001390777-23-000033_bk-20221231.htm:8]**  | **1.908**  **[0001390777-23-000046_bk-20230331.htm:19]**  | **1.906**  **[0001390777-23-000081_bk-20230630.htm:22]**  | **1.821**  **[0001390777-23-000103_bk-20230930.htm:23]**  | **2.0**  **[0001390777-24-000051_bk-20231231_d2.htm:2]**  | **2.0**  **[0001390777-24-000075_bk-20240331.htm:4]**  | **2.05**  **[0001390777-24-000105_bk-20240630.htm:4]**  | **2.14**  **[0001390777-24-000133_bk-20240930.htm:24]** **[0001390777-24-000133_bk-20240930.htm:5]**  |
| Foreign exchange revenue | **N/A** | **176**  **[0001390777-23-000046_bk-20230331.htm:92]**  | **158**  **[0001390777-23-000081_bk-20230630.htm:107]**  | **154**  **[0001390777-23-000103_bk-20230930.htm:108]**  | **N/A** | **152**  **[0001390777-24-000075_bk-20240331.htm:100]**  | **184**  **[0001390777-24-000105_bk-20240630.htm:111]**  | **175**  **[0001390777-24-000133_bk-20240930.htm:112]**  |
| Other trading revenue | **N/A** | **45**  **[0001390777-23-000046_bk-20230331.htm:92]**  | **53**  **[0001390777-23-000081_bk-20230630.htm:107]**  | **86**  **[0001390777-23-000103_bk-20230930.htm:108]**  | **N/A** | **69**  **[0001390777-24-000075_bk-20240331.htm:100]**  | **77**  **[0001390777-24-000105_bk-20240630.htm:111]**  | **79**  **[0001390777-24-000133_bk-20240930.htm:112]**  |

6f4dc35041e865999b9dd77c60ce62d39bfe6bb24f4824f20561788280fb6dae

The Bank of New York Mellon Corporation (BNY Mellon) is a global financial services company that provides a range of services across three principal business segments: Securities Services, Market and Wealth Services, and Investment and Wealth Management. BNY Mellon offers custody, fund accounting, administration, clearing, payment, investment strategies, and wealth planning services to its clients **[0001390777-24-000051_bk-20231231.htm:8]** **[0001390777-24-000105_bk-20240630.htm:4]** **[0001390777-24-000051_bk-20231231_d2.htm:2]**. The company is known for its high-margin businesses, particularly within the Market and Wealth Services segment, which includes Treasury Services and Pershing **[BK_3391939_1]**.

1. **Securities Services** - Provides custody, fund accounting, and administration services through Asset Servicing and Issuer Services.
2. **Market and Wealth Services** - Offers clearing, custody, and payment services, including Pershing, Treasury Services, and Clearance and Collateral Management.
3. **Investment and Wealth Management** - Delivers investment strategies and wealth planning services through Investment Management and Wealth Management.

0c74bc337a725a39dbf41770ae015d493f52dac370abd582f7964510d4af0b4f

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

ee46aeab54536ed89f6b1db2600ff559ac5ebcce24a73972b99a6aba60cc9057

559d678bb34b661c355c48cb5bde007284cd622724552469aa7002b30729df6f

1. Can you provide specific metrics on how your increased investment in AI has translated into tangible improvements in efficiency or revenue growth, and how do you measure the return on this investment within your platform strategy?
2. Given the decline in the number of sponsored depository receipt programs, what is your strategy to address this trend, and how do you plan to mitigate its potential impact on your revenues from this business segment?
3. With the acquisition of Archer to enhance your managed account solutions, how will you ensure that the integration positively impacts multiple lines of business as expected, and what challenges do you foresee in achieving the anticipated synergies?
4. Considering your commitment to return 100% plus of net earnings to shareholders through buybacks and dividends, how do you balance this capital return with the need to invest in growth initiatives, especially in an unfavorable market backdrop that could affect ROE resiliency?
5. Your strong EPS growth has been partly attributed to favorable market conditions; can you provide more transparency on underlying client growth metrics such as new client acquisitions, revenue per client, or cross-selling success to demonstrate the sustainability of your performance?

a4362d8cc1309cd3fd1735ea11efda039848a9dbd46939cc5f083e80ca42cb74

### Q3 2024 Earnings Call
- **Issued Period:** Q3 2024
- **Guided Period:** Q4 2024 and FY 2024
- **Guidance:**
  1. **Net Interest Income (NII):** Expected to be slightly below Q3 results (~$1 billion) for Q4 2024. No headwind expected for 2025  **[BK_3402771_18]** .
  2. **Expenses:** Core expenses, excluding notable items, to be roughly flat for FY 2024  **[BK_3402771_11]** .
  3. **Effective Tax Rate:** At the lower end of 23% to 24% for FY 2024  **[BK_3402771_6]** .
  4. **Capital Return:** 100% or more of FY 2024 earnings to be returned to shareholders  **[BK_3402771_6]** .
  5. **Pretax Margin:** Aim to maintain 33% through the cycle  **[BK_3402771_23]** .
  6. **Return on Tangible Common Equity (ROTCE):** Medium-term target of ≥23%  **[BK_3402771_17]** .

### Q2 2024 Earnings Call
- **Issued Period:** Q2 2024
- **Guided Period:** FY 2024
- **Guidance:**
  1. **Net Interest Income (NII):** Expected to be down 10% year-over-year for FY 2024  **[BK_3393051_5]** **[BK_3393051_22]** **[BK_3393051_6]** .
  2. **Expenses:** Expected to be roughly flat for FY 2024  **[BK_3393051_5]** **[BK_3393051_22]** .
  3. **Effective Tax Rate:** Between 23% and 24% for FY 2024  **[BK_3393051_5]** .
  4. **Capital Returns:** 100% or more of FY 2024 earnings to be returned to shareholders  **[BK_3393051_5]** .
  5. **Dividend:** 12% increase declared for Q3 2024  **[BK_3393051_5]** .
  6. **Operating Leverage:** Aim for positive operating leverage for FY 2024  **[BK_3393051_22]** .

### Q1 2024 Earnings Call
- **Issued Period:** Q1 2024
- **Guided Period:** FY 2024
- **Guidance:**
  1. **Net Interest Income (NII):** Expected to be down 10% year-over-year for FY 2024  **[BK_3379865_6]** .
  2. **Expenses:** Expected to be flat for FY 2024  **[BK_3379865_6]** .
  3. **Effective Tax Rate:** Between 23% and 24% for FY 2024  **[BK_3379865_6]** .
  4. **Capital Return:** 100% or more of FY 2024 earnings to be returned to shareholders  **[BK_3379865_7]** .
  5. **Operating Leverage:** Aim for some positive operating leverage for FY 2024  **[BK_3379865_6]** .

### Q4 2023 Earnings Call
- **Issued Period:** Q4 2023
- **Guided Period:** FY 2024
- **Guidance:**
  1. **Net Interest Income (NII):** Expected to decrease by approximately 10% year-over-year for FY 2024  **[BK_3370239_22]** **[BK_3370239_10]** **[BK_3370239_20]** .
  2. **Fee Revenue Growth:** Expected to turn positive in FY 2024  **[BK_3370239_5]** .
  3. **Expenses:** Expected to remain roughly flat for FY 2024  **[BK_3370239_5]** .
  4. **Capital Management:** Return north of 100% of FY 2024 earnings to shareholders  **[BK_3370239_5]** .
  5. **Operating Leverage:** Aim to at least break even from an operating leverage perspective for FY 2024  **[BK_3370239_5]** .

19412fdd40ac081f7f18b5ee59ca4d03b079c1d858ad5d4fa6480ec2d471915f

BK’s Q4 highlights: Wove projected to bring $60–$70M in incremental revenue by 2025 (36 clients, 41 contracts). Pershing aims for mid-single-digit net new asset growth, while mid-single-digit NII gains remain on track. BK holds largest-custodian leadership.

5c442e278f92b781c75712fb16d6e09eb27df3340b78539ac4ac6a28b25e974d

d0a07558d611f38e4fa58ec39fa81fc2eab9d488c0093b7d5d6ffde38935e18d

Domestic

International

- EMEA

- APAC

- Other International

- UK

3884bc3b9396f65d4362a67aa09394a5574b186bcdcf1e87478eb5862c20988f

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

Nonperforming assets ratio

Allowance for loan losses/nonperforming loans

Allowance for loan losses/nonperforming assets

Allowance for loan losses and lending-related commitments/nonperforming loans

Securities purchased not settled

Securities sold not settled

Securities matured not settled

AUM by product type

Net long-term strategy outflows

AUC/A at period end

AUM at period end

Securities lending indemnifications

Unsettled reverse repurchase agreements

Double leverage ratio

Liquidity coverage ratio (LCR)

Net stable funding ratio (NSFR)

Assets under custody and/or administration

Assets under management

Foreign exchange revenue

Other trading revenue

f9f2d54662cc5b76f5193bd30820a0cc2f2a49b1e5c7968d4cba976300991fb2

| Name               | Position                                                                 | Start Date         | Short Bio                                                                                                                                                                                                 |
|--------------------|--------------------------------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Robin Vince        | President and Chief Executive Officer                                    | September 2022     | Robin Vince has served as the President and CEO of BNY Mellon since September 2022. Prior to this, he was the President and CEO-elect from March 2022. He joined BNY Mellon in October 2020  **[0001390777-24-000051_bk-20231231.htm:28]** **[0001193125-24-051895_d525388ddef14a.htm:16]** **[0001193125-23-055130_d405459ddef14a.htm:19]** .                                      |
| Dermot McDonogh    | Senior Executive Vice President and Chief Financial Officer              | February 1, 2023   | Dermot McDonogh has served as Senior Executive Vice President since October 2022 and as CFO since February 1, 2023. He was previously COO of the EMEA region for Goldman Sachs International  **[0001390777-24-000051_bk-20231231.htm:27]** **[0001390777-23-000033_bk-20221231.htm:29]** .                                          |
| Senthil Kumar      | Senior Executive Vice President and Chief Risk Officer                   | July 2019          | Senthil Kumar has served as Chief Risk Officer since July 2019. He was previously the Chief Risk Officer of the Institutional Clients Group at Citigroup Inc.  **[0001390777-24-000051_bk-20231231.htm:27]** **[0001390777-23-000033_bk-20221231.htm:28]** .                                                                           |
| Catherine Keating  | Senior Executive Vice President and Global Head of Wealth Management     | July 2018          | Catherine Keating has served in her current role since July 2018. She was previously the CEO of Commonfund  **[0001390777-24-000051_bk-20231231.htm:27]** **[0001390777-23-000033_bk-20221231.htm:28]** .                                                                                                                             |
| Bridget Engle      | Senior Executive Vice President, Chief Information Officer and Global Head of Engineering | June 2017          | Bridget Engle served as CIO since June 2017, with her role modified in 2023 to include Global Head of Engineering. She is no longer an executive officer as of August 9, 2023  **[0001193125-24-051895_d525388ddef14a.htm:53]** **[0001390777-23-000033_bk-20221231.htm:28]** .                                                          |
| Emily Portney      | Senior Executive Vice President and Global Head of Asset Servicing       | February 2023      | Emily Portney has served as Global Head of Asset Servicing since February 2023. She was previously the CFO of BNY Mellon from July 2020  **[0001390777-23-000033_bk-20221231.htm:29]** .                                                                                                   |
| Roman Regelman     | Senior Executive Vice President and Global Head of Securities Services and Digital | April 2023         | Roman Regelman served in his role from April 2023. He held various leadership positions within BNY Mellon since September 2018  **[0001390777-24-000051_bk-20231231.htm:28]** **[0001390777-23-000033_bk-20221231.htm:29]** .                                                                                                         |
| Hanneke Smits      | Senior Executive Vice President and Global Head of Investment Management | October 2020       | Hanneke Smits has served in her current role since October 2020. She was previously the CEO of Newton Investment Management  **[0001390777-24-000051_bk-20231231.htm:28]** **[0001390777-23-000033_bk-20221231.htm:29]** .                                                                                                            |
| Jayee Koffey       | Senior Executive Vice President, Global Head of Enterprise Execution and Chief Corporate Affairs Officer | February 2023      | Jayee Koffey has served in her current role since February 2023. She was previously the Head of the Executive Office and Company Chief of Staff  **[0001390777-24-000051_bk-20231231.htm:27]** .                                                                                            |
| J. Kevin McCarthy  | Senior Executive Vice President and General Counsel                      | April 2014         | J. Kevin McCarthy has served as General Counsel since April 2014  **[0001390777-24-000051_bk-20231231.htm:27]** **[0001390777-23-000033_bk-20221231.htm:29]** .                                                                                                                                                                        |
| Kurtis R. Kurimsky | Vice President and Controller                                            | July 2015          | Kurtis R. Kurimsky has served as Vice President and Controller since July 2015  **[0001390777-24-000051_bk-20231231.htm:27]** .                                                                                                                                                             |
| Joseph Pizzuto     | Chief Auditor                                                            | N/A                | Joseph Pizzuto serves as the Chief Auditor at BNY Mellon. Specific details regarding his start date are not provided.                                                                                                                           |
| Adam Vos           | Global Head of Markets                                                   | N/A                | Adam Vos serves as the Global Head of Markets at BNY Mellon. Specific details regarding his start date are not provided  **[0001390777-24-000051_bk-20231231_d2.htm:326]** .                                                                                                                    |
| Cathinka Wahlstrom | Chief Commercial Officer                                                 | 2023               | Cathinka Wahlstrom joined BNY Mellon as Chief Commercial Officer in 2023, focusing on unifying the sales force  **[BK_3401245_1]** **[BK_3391939_2]** .                                                                                                                          |
| Alejandro Perez    | Chief Administrative Officer and Interim Chief People Officer            | N/A                | Alejandro Perez serves in his current roles at BNY Mellon. Specific details regarding his start date are not provided  **[0001390777-24-000051_bk-20231231_d2.htm:326]** .                                                                                                                      |
| Brian Ruane        | Global Head of Clearance and Collateral Management                       | N/A                | Brian Ruane serves in his current role at BNY Mellon. Specific details regarding his start date are not provided  **[0001390777-24-000051_bk-20231231_d2.htm:326]** .                                                                                                                           |
| Akash Shah         | Senior Executive Vice President and Chief Growth Officer                 | July 2021          | Akash Shah has served as Chief Growth Officer since July 2021. He previously held various strategy roles at BNY Mellon  **[0001390777-23-000033_bk-20221231.htm:29]** .                                                                                                                     |
| Hani A. Kablawi    | Senior Executive Vice President and Chairman of International            | January 2020       | Hani A. Kablawi has served in his current role since January 2020. He previously held leadership roles in EMEA and Global Asset Servicing  **[0001390777-23-000033_bk-20221231.htm:28]** .                                                                                                   |
| Jennifer Barker    | Global Head of Treasury Services                                         | N/A                | Jennifer Barker serves as the Global Head of Treasury Services at BNY Mellon. Specific details regarding her start date are not provided  **[0001390777-24-000051_bk-20231231_d2.htm:326]** **[0001390777-23-000033_bk-20221231_d2.htm:319]** .                                                                                               |
| James (Jim) T. Crowley | Global Head of Pershing                                              | N/A                | Specific details on the start date or a comprehensive biography for James (Jim) T. Crowley are not provided.                                                                                                                                   |
| Leigh-Ann Russell  | Chief Information Officer and Global Head of Engineering                 | September 15, 2024 | Leigh-Ann Russell joined BNY Mellon in her current role on September 15, 2024. Further details about her background are not provided.                                                                                                           |
| Rajashree Datta    | Deputy Chief Risk Officer                                                | December 15, 2024  | Rajashree Datta will join BNY Mellon as Deputy Chief Risk Officer on December 15, 2024, and is set to succeed Senthil Kumar as Chief Risk Officer in the first half of 2025  **[0001193125-24-271502_d908573d8k.htm:1]** .                                                              |

268087a0d554a64634823bef5d5630650de3c72b7e3e985e59ba44507333b07d

| Program Details          | Program 1               | Program 2               |
|--------------------------|-------------------------|-------------------------|
| Approval Date            | January 2023  **[0001390777-24-000133_bk-20240930.htm:140]** **[0001390777-24-000133_bk-20240930.htm:44]**      | April 2024  **[0001390777-24-000133_bk-20240930.htm:140]** **[0001390777-24-000133_bk-20240930.htm:44]**        |
| End Date/Duration        | Not stated  **[0001390777-24-000133_bk-20240930.htm:140]** **[0001390777-24-000133_bk-20240930.htm:44]**        | Not stated  **[0001390777-24-000133_bk-20240930.htm:140]** **[0001390777-24-000133_bk-20240930.htm:44]**        |
| Total additional amount  | **$5.0 billion**  **[0001390777-24-000133_bk-20240930.htm:140]** **[0001390777-24-000133_bk-20240930.htm:44]**  | **$6.0 billion**  **[0001390777-24-000133_bk-20240930.htm:140]** **[0001390777-24-000133_bk-20240930.htm:44]**  |
| Remaining authorization  | N/A                     | **$6.082 billion**  **[0001390777-24-000133_bk-20240930.htm:140]** **[0001390777-24-000133_bk-20240930.htm:44]**  |
| Details                  | N/A                     | N/A                     |

c42f7428a39eea3d1aa7218520df1a90e19c024ad1235b34625586fa9a7b45b6

**Quarterly guidance for Q1 2025:**
- **Staff expenses**: Elevated  **[BK_3412553_8]** (no prior guidance)

**Annual guidance for FY 2025:**
- **Net Interest Income (NII)**: Up mid-single-digit percentage points year-over-year  **[BK_3412553_7]** **[BK_3412553_8]** (raised from “no headwind expected” for 2025  **[BK_3402771_18]** )  
- **Fee revenue**: Expected to be up year-over-year  **[BK_3412553_7]** (no prior guidance)  
- **Expenses (excluding notable items)**: 1% to 2% year-over-year growth  **[BK_3412553_7]** (raised from “roughly flat”  **[BK_3402771_11]** )  
- **Effective tax rate**: 22% to 23%  **[BK_3412553_8]** (lowered from 23% to 24%  **[BK_3402771_6]** )  
- **Capital deployment**: 100%, plus or minus, of 2025 earnings returned to shareholders  **[BK_3412553_8]** (lowered from 100% or more  **[BK_3402771_6]** )  
- **Tier 1 leverage ratio**: 5.5% to 6%  **[BK_3412553_8]** (no prior guidance)  

13f98569821478b523b591477d9a0976f8803710d701b936d34dd4659496af46

| Name       | Start Date | End Date | Reason for Change |
|------------|------------|----------|-------------------|
| KPMG LLP   | 2007  **[0001390777-24-000051_bk-20231231_d2.htm:325]**    | Present  | Current auditor   |

33b05b38a767323ba9973e86a6201acaad9a92428e28a3eb9ac25083d0826a63

a7911dfba90ecbcfa131478c44df74a6320e3d731a35635efdcf13575336d628

- **Net Interest Income (NII) is expected to decline significantly in the second half of 2024.** Management maintained guidance of **down 10% year-over-year** for full-year 2024 NII, citing expectations of **seasonally lower activity in Q3** and potential rate cuts by the Federal Reserve. Despite better-than-expected NII performance in the first half, management remains cautious about the second half, which could pressure overall earnings.  **[BK_3393051_6]**
- **Non-Interest Bearing Deposits (NIBs) are expected to decline further,** which could negatively impact NII. Management indicated that while they outperformed expectations in deposit growth in the first half, they expect overall balances to come down and NIBs to **"grind a little bit lower"** going forward.  **[BK_3393051_7]**
- **Challenges in improving margins in the Investment and Wealth Management segment.** Management acknowledged that returning to a **25% pretax margin** in this segment will take **"a period of a few years,"** indicating prolonged pressure on profitability in this business line.  **[BK_3393051_28]**

8f28a122d4682a40a6204162ab26d80f442336eb60cded225b5e451115a9baa5

1. **Platform Model's Impact on Margins**  
   **Q:** Will the platform model improve margins and fee growth?  
   **A:** Management is confident that the platform operating model will drive incremental top-line growth, enhance fee revenue resiliency, and improve efficiency. They expect to sustainably hit pretax margin and ROE targets through the cycle, with more significant benefits materializing in **2026** and beyond as **80% of employees** transition to the model by end of 2025.  **[BK_3412553_9]** **[BK_3412553_10]** **[BK_3412553_11]** 

2. **Fee Operating Leverage Focus**  
   **Q:** How important is fee operating leverage to the firm?  
   **A:** While total operating leverage is the "north star," management is also focused on delivering positive fee operating leverage through the cycle. They have multiple levers, including managing **NII**, fees, and expenses, and feel they have flexibility to ensure positive outcomes even if the fee outlook falls short.  **[BK_3412553_17]** 

3. **Net Interest Income Outlook**  
   **Q:** What are the NII expectations and deposit mix shifts?  
   **A:** Management expects net interest income to grow at **mid-single digits** in 2025, driven by proactive balance sheet management on the asset side, including rolling over **2% yielding assets** into current market rates. They anticipate non-interest-bearing deposits (NIBs) to moderate to **$44‑46 billion** for the full year, with balances expected to be roughly flat.  **[BK_3412553_14]** **[BK_3412553_19]** **[BK_3412553_22]** 

4. **Growth in Pershing and Wove**  
   **Q:** What's driving net new assets at Pershing and progress on Wove?  
   **A:** Pershing saw a solid rebound in net new assets, aiming for mid-single-digit growth through the cycle. Growth is driven by large RIA firms and broker-dealers, with **36 clients on the Wove platform** and **41 signed contracts**. They have guided for incremental Wove revenue of **$60‑70 million** in 2025, up from a **$75 million** exit rate in 2024.  **[BK_3412553_13]** **[BK_3412553_25]** 

5. **Risks to Business Outlook**  
   **Q:** What primary risks is management monitoring?  
   **A:** Management is monitoring risks including geopolitical tensions, potential downturns or recessions, higher interest rates, and cyber risk. They mention wars in two continents, policy uncertainties, and the impact of higher rates as factors that could create complexity. Despite these risks, they remain pro-growth and believe their platforms position them to help clients navigate uncertainties.  **[BK_3412553_23]** 

6. **Impact of Trading Volatility on Fees**  
   **Q:** How does increased trading volatility affect fee revenue growth?  
   **A:** Increased trading volatility benefits businesses like Clearance and Collateral Management, resulting in higher transaction volumes and fees. Treasury issuance has been a significant tailwind, setting records in transaction volumes and positively impacting servicing fee revenue growth over the past couple of years.  **[BK_3412553_24]** 

8477b094108f4003e6f343cae4cc1ff358e109f065d47fbd35780b2904cbb17b

- **BNY Mellon reported strong financial performance with 5% revenue growth, flat expenses, a 33% pretax margin, and a 23% return on tangible common equity, demonstrating the company's operational efficiency and profitability.**  **[BK_3402771_17]**
- **The company is investing heavily in AI and transitioning to a platform operating model, with 25% of employees already transitioned and plans to reach 100% in 18 months, aiming to drive top-line growth and operational efficiency.**  **[BK_3402771_24]** **[BK_3402771_20]**
- **BNY Mellon is executing strategic acquisitions, such as Archer, to enhance its capabilities in fast-growing areas like managed accounts, which is expected to contribute to future revenue growth and strengthen its market position.**  **[BK_3402771_15]**

4498151d6e43c519d0da9335eb40934e77dfec045519a1927b0bb06d5e650bc7

1. **NII and Deposit Outlook with Expected Rate Cuts**  
   **Q:** How will rate cuts affect NII and deposits?  
   **A:** We expect net interest income to decrease by **10% in 2024** due to anticipated rate cuts.  **[BK_3370239_10]**  If rates decline as projected with **six cuts this year**, deposit balances might increase; however, if rates remain higher for longer, we anticipate continued deposit outflows.  **[BK_3370239_10]**  We begin the year strong with **$273 billion of average deposits in Q4**, feeling confident about our net interest margin for 2024.  **[BK_3370239_10]** 

2. **Fee Revenue Growth Guidance**  
   **Q:** Are fees expected to grow only 3% in 2024?  
   **A:** While your calculations might suggest a 3% fee growth, we haven't provided specific fee revenue guidance due to various factors influencing the year.  **[BK_3370239_11]**  We are committed to achieving flat to positive operating leverage and are focusing on the areas we've discussed.  **[BK_3370239_11]** 

3. **Medium-term Return Targets**  
   **Q:** How will you increase returns to 23% medium-term?  
   **A:** We aim to boost returns through a combination of higher organic fee growth, driven by de-siloing the organization and investments in growth areas, and by enhancing efficiency.  **[BK_3370239_11]**  We expect **FX revenue** to normalize and are optimistic about **mid-single-digit equity market appreciation** supporting fee growth.  **[BK_3370239_11]**  Additionally, we'll continue digitizing and automating processes to deliver more for clients, enabling us to buy back more stock and drive higher ROTCE and pretax margin.  **[BK_3370239_11]** 

4. **Impact of Automation on Securities Services Revenue**  
   **Q:** Will digitization boost revenue or just reduce costs?  
   **A:** By automating processes and improving client experience, we expect not only to reduce the **cost to serve** but also to enhance revenue as clients consolidate business with us.  **[BK_3370239_12]**  In 2023, we had our strongest sales quarter in Asset Servicing and enter 2024 with a healthy pipeline.  **[BK_3370239_12]** 

5. **Expense Management and Operating Leverage**  
   **Q:** How will you manage expenses with NII declining?  
   **A:** We are committed to achieving **positive operating leverage** and plan to maintain **flat expenses** in 2024 despite a projected 10% decline in NII.  **[BK_3370239_9]** **[BK_3370239_11]**  Our focus is on running the company better through financial discipline and engaging all employees in expense management.  **[BK_3370239_11]** **[BK_3370239_9]** 

6. **Use of Capital: Buybacks vs. M&A**  
   **Q:** Will you consider M&A over stock buybacks?  
   **A:** We prioritize investing capital profitably in the business and returning surplus capital to shareholders through buybacks.  **[BK_3370239_11]**  While we're focused on improving our existing operations, we remain open to M&A opportunities that could accelerate our strategy, but we maintain a high bar for such deals.  **[BK_3370239_11]** 

7. **AI Implementation and Impact**  
   **Q:** How will AI affect your business?  
   **A:** We're excited about AI's potential over the medium term.  **[BK_3370239_27]**  We've established an **AI Hub**, developed use cases across businesses, and have applications already in production.  **[BK_3370239_27]**  While we haven't quantified the impact yet, we anticipate AI will provide benefits on both the top and bottom lines over the next decade.  **[BK_3370239_27]** 

8. **Deposit Trends and QT Impact**  
   **Q:** How will QT affect deposits in 2024?  
   **A:** Our net interest income outlook assumes that quantitative tightening (QT) continues.  **[BK_3370239_20]**  If QT ends, it could positively impact deposit balances, but that's not our base case.  **[BK_3370239_20]**  We expect deposits to decrease in 2024 but remain prepared to adjust if conditions change.  **[BK_3370239_20]** 

9. **Pricing Environment in Securities Services**  
   **Q:** Is pricing pressure intensifying in Securities Services?  
   **A:** The pricing environment remains stable, and we've become more sophisticated in pricing our services.  **[BK_3370239_26]**  By analyzing client profitability and adjusting our strategies, we see positive momentum in pricing.  **[BK_3370239_26]** 

10. **Asset Servicing Sales and Backlog**  
    **Q:** What is the status of new business wins and backlog?  
    **A:** While we don't provide specific numbers, we had our strongest sales quarter in Asset Servicing in 2023 and feel very positive about mandates won and the pipeline heading into 2024.  **[BK_3370239_23]**  We're optimistic about opportunities ahead.  **[BK_3370239_23]** 

---

*[Numbers in brackets refer to the document index in the provided materials]*

e7879c82518c699d9b03c06a45811ae17504fd40fa25f621c0ccb4a354424d93

- **BNY Mellon aims to improve its Return on Tangible Common Equity (ROTCE) to 23%, up from approximately 21.5%**, by focusing on higher organic growth, expense management, and stock buybacks over the medium term.  **[BK_3370239_12]**
- The company is optimistic about **achieving higher organic fee growth** through strategic investments, appointing a **Chief Commercial Officer**, and de-siloing the organization to enhance efficiency and integration.  **[BK_3370239_12]** **[BK_3370239_15]**
- **Strong momentum in Asset Servicing and Market and Wealth Services**, along with investments like the **Wove platform**, are expected to drive revenue growth and improve pretax margins, with **Q4 sales being the strongest of 2023** and a positive outlook for 2024.  **[BK_3370239_15]** **[BK_3370239_9]** **[BK_3370239_23]**

2f75f2abbf002974d7f98f743d086d3dca3999a3f374f6a49faabb12f606e0c6

- **The company expects net interest revenue to decrease by approximately 10% year-over-year in 2024**, which could impact overall profitability.  **[BK_3370239_8]**
- **Reluctance to provide specific revenue growth targets due to past inconsistencies in achieving organic growth**, indicating potential challenges in sustaining revenue growth.  **[BK_3370239_15]**
- **Dependence on favorable market conditions, such as increasing equity markets and normalization of FX volatility, to achieve projected fee revenue growth**, which poses risks if these conditions do not occur as expected.  **[BK_3370239_12]**

4437b5ddda2e129c79d9d37b575ffa0e3e34d2a1b4de47b70821ee7bab801bd6

1. **Expense Outlook**  
   **Q:** Are expenses expected to be even lower in Q4?  
   **A:** While we've guided expenses to be roughly flat for the full year, higher revenues may put some pressure on expenses in Q4 due to revenue-related costs and integration expenses from the Archer acquisition. We remain committed to financial discipline and being good stewards of our expense base.  **[BK_3402771_11]** 

2. **Client Growth Drivers**  
   **Q:** Is growth due to smart management or market luck?  
   **A:** While we've benefited from favorable markets, our deliberate strategy is driving growth. We've rallied around three strategic pillars: being more for our clients, running the company better, and fostering a winning culture. Clients are now buying from us across more than one line of business, sometimes even four, which was not possible a few years ago.  **[BK_3402771_10]** 

3. **M&A Strategy**  
   **Q:** What's your outlook on future acquisitions?  
   **A:** We're open to opportunistic, bolt-on acquisitions that align with our strategic priorities and offer attractive returns, like the Archer acquisition. Our capital-light model allows us to invest prudently and return excess capital to shareholders.  **[BK_3402771_15]** 

4. **NII Guidance**  
   **Q:** Is $1 billion quarterly NII the bottom for now?  
   **A:** We've seen NII between $1 billion and $1.1 billion over the past five quarters. For Q4, we expect NII to be around **$1 billion**. We don't foresee NII being a headwind in 2025.  **[BK_3402771_18]** 

5. **ROE Resiliency**  
   **Q:** How is your ROE resilient in unfavorable markets?  
   **A:** We're committed to delivering positive operating leverage through the cycle. In the recent quarter, we achieved a **23% return on tangible common equity** and **22% EPS growth**. By focusing on delivering for clients and shareholders, we believe valuation will take care of itself.  **[BK_3402771_17]** 

6. **Revenue Growth Outlook**  
   **Q:** How will the enterprise approach impact revenue growth?  
   **A:** We're seeing solid underlying growth across all three business segments. Our enterprise approach delivers holistic solutions to clients, leading them to buy more from us. This strategy is driving revenue growth, and we feel positive about opportunities in 2025.  **[BK_3402771_12]** 

7. **ETF Growth Revenue**  
   **Q:** Is ETF revenue fully reflected this quarter?  
   **A:** ETF revenue is partly reflected this quarter. We have **$2.7 trillion** in ETFs on our platform, up **70% year-on-year**. Some revenue from recent wins is on the platform, with more to come as clients onboard in phases.  **[BK_3402771_7]** **[BK_3402771_8]** 

8. **Platform Model Transition**  
   **Q:** Will the entire firm move to the platform model?  
   **A:** Yes, we plan to have the entire firm on the platform model over the next 18 months. This transition is about driving top-line growth and fostering collaboration, not just efficiency improvements.  **[BK_3402771_20]** 

9. **AI Integration**  
   **Q:** How does AI relate to your platform strategy?  
   **A:** AI is integral to our platform strategy. We have an AI hub with a couple hundred people and are investing to make our people more effective and efficient. We're enthusiastic about AI's potential for our business.  **[BK_3402771_24]** 

3be187b1ee3cd5a1dad8b1e087a3d54d30c5b7445139737d076c4e072ffd93d0

- **Net Interest Income Decline**: Net interest income decreased by **8% year-over-year** and **6% quarter-over-quarter**, primarily due to changes in the composition of deposits.  **[BK_3379865_4]**
- **Increase in Credit Loss Provisions**: The provision for credit losses was **$27 million**, mainly driven by reserve increases related to **commercial real estate exposure**.  **[BK_3379865_4]**
- **Expense Growth**: Expenses increased by **2% year-over-year** on a reported basis and **1% excluding notable items**, due to incremental investments and employee merit increases, which may pressure margins despite efficiency savings.  **[BK_3379865_4]**

10c512870f7a4034e471842a4236d565a3cdb6d373161db67058ae9f308ba803

- **Reliance on favorable market conditions:** Management acknowledges that recent strong performance may be partly due to benefiting from a **"terrific backdrop in terms of markets"**, suggesting that downturns could adversely affect future performance.  **[BK_3402771_10]**
- **Concerns about return on equity resilience:** When asked about return on equity resiliency in unfavorable market conditions, management emphasized their commitment to positive operating leverage but did not fully address potential challenges in sustaining a **23% return on tangible common equity** in less favorable environments.  **[BK_3402771_17]**
- **Prolonged transition to new operating model:** The company's shift to a platforms operating model will take **another 18 months** to complete, and management indicates that benefits will take even longer to materialize, potentially delaying expected efficiencies and increasing execution risk.  **[BK_3402771_20]**

c0066fe4f59e2f97fcef8007d8ee08d5f9b221e960913030d9f56d41d5024d26

1. **Organic Growth Outlook**  
   **Q:** What are your organic growth aspirations for '24 and beyond?  
   **A:** Management is pleased with early momentum in growth initiatives and is focusing on controlling controllable factors. They are operationalizing the **"ONE BNY Mellon"** approach, enhancing client coverage, and delivering integrated solutions. While it's early in the journey, they are optimistic about working the opportunity rather than the problem.  **[BK_3379865_8]** 

2. **Capital Deployment and Buybacks**  
   **Q:** How should we think about capital deployment and buyback cadence?  
   **A:** The firm saw robust Risk-Weighted Assets (RWA) growth partly due to temporary factors and strong demand in securities lending. They remain committed to returning **100% or more** of earnings to shareholders through buybacks, but don't provide quarter-by-quarter guidance. They expect to take it quarter by quarter.  **[BK_3379865_10]** **[BK_3379865_24]** 

3. **Deposits Outlook and NII Guidance**  
   **Q:** What are your assumptions on deposit balances and NII trajectory?  
   **A:** Period-end deposits saw a significant uptick due to temporary factors. Deposits have returned to normal levels in the high **$270 billion** range. The guidance remains at approximately **down 10%** for Net Interest Income (NII) year-over-year, given rate volatility and expectations for deposits to decline with quantitative tightening.  **[BK_3379865_14]** **[BK_3379865_17]** 

4. **Efficiency Initiatives and Expense Outlook**  
   **Q:** How far along are you in your efficiency journey?  
   **A:** The efficiency journey is multi-year, with work on both revenue and expense sides. Investments in the business are ongoing, and there's a focus on running the company better rather than just cutting costs. The platform operating model and AI investments are expected to yield benefits starting from 2025 and beyond.  **[BK_3379865_23]** **[BK_3379865_25]** **[BK_3379865_12]** 

5. **Asset Management Margins and Strategy**  
   **Q:** How are you addressing the investment and wealth margins shortfall?  
   **A:** Management is investing in the business, launching new products, and seeing growth in areas like cash management. They aim to expand pretax margins to over **25%**, focusing on both revenue growth and expense optimization. Integration with the broader enterprise is expected to unlock further opportunities.  **[BK_3379865_11]** **[BK_3379865_19]** 

6. **Commercial Real Estate Exposure**  
   **Q:** Can you provide color on your commercial real estate exposure?  
   **A:** The commercial real estate portfolio is small, about **3%** of total loans (**$2 billion**). Reserve builds were taken prudently for specific situations, but overall, the portfolio is clean with Class A properties performing well. The impact is expected to be modest, with broad industry challenges depending on longer-term rates.  **[BK_3379865_22]** **[BK_3379865_29]** 

7. **Pershing Offboarding and Growth**  
   **Q:** Update on Pershing offboarding and its impact on net new assets.  
   **A:** The deconversion process is expected to be largely completed by **Q3**. While offboarding has impacted net new assets, the firm continues to invest in Pershing, adding new clients and building a strong pipeline. They feel confident about winning more mandates and meeting revenue commitments.  **[BK_3379865_16]** 

8. **Impact of T+1 Settlement**  
   **Q:** What is the impact of T+1 on expenses and capital?  
   **A:** The transition to T+1 settlement involves expenses considered ordinary course of business. While it may not yield immediate cost relief, it provides benefits to the financial system and clients. There are potential opportunities for outsourcing solutions as clients navigate these changes. No significant headwinds on NII or capital are expected.  **[BK_3379865_20]** 

9. **Non-Interest-Bearing Deposits and Servicing Fees**  
   **Q:** Is servicing fee growth substituting for declining non-interest-bearing deposits?  
   **A:** Non-interest-bearing deposits have declined due to higher rates, as clients seek higher yields. However, servicing fees grew **8%** year-over-year, driven by strong pipelines, higher balances, and winning mandates. The growth in fees is not a direct substitution for deposits but reflects competitive pricing and focus on client profitability.  **[BK_3379865_18]** 

10. **Securities Portfolio Growth**  
    **Q:** Securities book grew; is this due to deposit confidence or market options?  
    **A:** The growth in the securities book is due to optimizing yield and deploying cash where opportunities exist, rather than increased confidence in deposit levels. The bank remains neutrally positioned regarding rate movements and continues to manage the balance sheet conservatively.  **[BK_3379865_27]** 

770aa78349a7351e732975a93a2d4693f7bd6ec0aeeb44e690d4763463308448

- BNY Mellon is experiencing strong fee growth, particularly in clearance and collateral management, driven by higher client activity and volumes, with expectations for this positive trend to continue in the near term.  **[BK_3393051_8]**
- The company is achieving positive operating leverage through expense discipline and is optimistic about delivering positive operating leverage for the year, targeting flat expenses despite better-than-expected revenues, which is expected to enhance profitability.  **[BK_3393051_22]**
- BNY Mellon is seeing momentum in new business opportunities, especially in its Pershing business with the Wove platform, signing 21 clients so far this year, and expects headwinds from client deconversions to end by Q3, positioning it for growth in a large market where it is a leading player.  **[BK_3393051_13]**

abad11da53585c5cde9cc5ebbf2e6729b7b72e02beb48b0ed451835945cb4313

- **Strong growth in the Wove platform**, with expected incremental revenue of **$60 million to $70 million** in 2025 and **36 clients on the platform** with **41 signed contracts**, indicating successful expansion in digital offerings.  **[BK_3412553_25]**
- **Pershing business showing strong momentum**, expecting to grow net new assets at **mid-single digits through the cycle**, tapping into the fast-growing U.S. wealth market with **$3 trillion** worth of wealth assets.  **[BK_3412553_13]**
- **Maintaining leadership in Asset Servicing**, with continued momentum, investments in infrastructure, and expectation to maintain its position as **the world's largest custodian**, suggesting ability to navigate market challenges and capitalize on growth opportunities.  **[BK_3412553_21]**

ea612be5bb671e16b51d2ed627550c1406835949f08cf2a6dc2fe51f4394e512

- **Investment Services fees increased by 8% year-over-year**, driven by **higher market values**, **net new business**, and **higher client activity**. The company achieved a **win rate of over 50% on deal completions**, indicating strong business momentum.  **[BK_3379865_18]**
- BNY Mellon is implementing a **multi-year efficiency improvement program**, including a **new platform operating model** that is expected to **improve profitability**, **drive revenue growth**, and **enhance employee empowerment and client service**. The company invested **$0.5 billion** in new initiatives within expense growth last year and is replicating that investment this year.  **[BK_3379865_23]** **[BK_3379865_25]**
- The company is committed to **returning over 100% of 2024 earnings to shareholders** through dividends and buybacks, including a **new $6 billion share repurchase authorization**, demonstrating strong capital return commitment.  **[BK_3379865_24]**

af270be85b38699d9af725c92951d6de7fbb9bd364e96446c624abf119d17ed2

1. **NII Guidance and Seasonality**  
   **Q:** Explain factors affecting NII guidance and seasonal impact?  
   **A:** Dermot highlighted that NII guidance remains cautious due to expected seasonal declines in Q3, as Q1 and Q2 are typically strong, while Q3 is usually quieter. Despite outperforming expectations in the first half, he sees no point in changing guidance now, remaining "cautiously optimistic" and expecting NII to be somewhat seasonally lower in Q3.  **[BK_3393051_6]** 

2. **Impact of Potential Fed Rate Cuts**  
   **Q:** How would Fed rate cuts affect NII and balance sheet?  
   **A:** Dermot stated the balance sheet is positioned to be "**roughly flat**" in response to expected rate cuts. With cumulative betas in the "**low 80s**" for dollars and "**high 50s to low 60s**" for euros and sterling, NII wouldn't be significantly impacted by small rate moves, and they feel "very well positioned" for expected cuts.  **[BK_3393051_10]** 

3. **Fee Revenue Growth Drivers**  
   **Q:** What drives fee revenue growth amid stable NII?  
   **A:** Robin explained that their strategy focuses on fueling organic growth and positioning businesses to respond to market growth tailwinds. Investments in innovation, such as in the U.S. treasury market and the **1BNY campaign**, aim to build momentum in fee revenue despite market dependencies.  **[BK_3393051_11]** 

4. **Repo Activity Contribution**  
   **Q:** How significant is repo activity to NII growth?  
   **A:** Dermot noted that cleared repo makes up about **5%** of NII today and is not a material driver of year-over-year NII change. However, it's an important product meeting client needs, with BNY Mellon being a **top 3 provider** in the space.  **[BK_3393051_12]** 

5. **Pershing Business and Wove Platform**  
   **Q:** What's the outlook for Pershing and Wove platform?  
   **A:** Dermot mentioned that client departures will be fully out by Q3, and they've signed **21 clients** for Wove this year, with revenue guidance of **$30 million to $40 million** for the year. They expect **mid-single-digit** underlying core growth through the cycle.  **[BK_3393051_13]** 

6. **Operating Leverage and Expense Management**  
   **Q:** How are expenses managed to maintain operating leverage?  
   **A:** Dermot emphasized focusing on "running the company better," aiming for **flat expenses** despite revenue-related pressures. The goal is to deliver **positive operating leverage**, investing where necessary without just increasing expenses because revenues are better.  **[BK_3393051_22]** **[BK_3393051_27]** 

7. **1BNY Initiative and Client Solutions**  
   **Q:** How is the 1BNY initiative impacting growth?  
   **A:** Robin stated that integrating products into true solutions for clients is maturing their commercial model. Dermot added that business won touching more than one line of business has increased by **one-third**, reflecting success in breaking down silos and offering bundled solutions.  **[BK_3393051_19]** **[BK_3393051_20]** 

8. **Deposit Mix and Seasonality**  
   **Q:** What's driving the expected decline in deposits?  
   **A:** Dermot explained that both the overall deposit balance and non-interest-bearing deposits (NIBs) are expected to decline due to seasonal factors, which is the main driver of the NII change.  **[BK_3393051_7]** **[BK_3393051_26]** 

9. **Corporate Trust and CLO Activity**  
   **Q:** How is Corporate Trust performing?  
   **A:** Dermot highlighted Corporate Trust as a "very good opportunity." Investments in technology and leadership have led to **doubled activity in CLOs** over the last 12 months, improving market share.  **[BK_3393051_16]** 

10. **T+1 Settlement Impact**  
    **Q:** What's the impact of T+1 on revenue and expenses?  
    **A:** Dermot stated that T+1 is not about revenue or expenses but about delivering a "complicated change project" with "**A+ execution**" for clients and the financial market infrastructure.  **[BK_3393051_17]** 

11. **Effect of ECB Rate Cut**  
    **Q:** How did the ECB rate cut affect deposit costs?  
    **A:** Dermot mentioned that euros represent roughly **10%** of the total portfolio. The cumulative betas in euros, at **high 50s to low 60s**, held up as expected when the ECB cut rates, behaving as anticipated.  **[BK_3393051_14]** **[BK_3393051_15]** 

12. **Balance Sheet Positioning Amid QT**  
    **Q:** How is the balance sheet positioned amid QT easing?  
    **A:** Dermot stated they do extensive modeling for various scenarios, maintaining a "vanilla, liquid" balance sheet prepared to withstand a wide range of outcomes. Robin emphasized being prepared for different possibilities due to global uncertainties.  **[BK_3393051_24]** 

13. **Investment and Wealth Management Margins**  
    **Q:** Timeline for returning to 25%+ margins in Investment and Wealth Management?  
    **A:** Dermot affirmed the goal of returning to a **25%** margin over a few years, with a **200 basis point** increase over the last year due to tough decisions and expense discipline.  **[BK_3393051_28]** 

14. **Breaking Down Organizational Silos**  
    **Q:** How is BNY Mellon breaking down silos?  
    **A:** Robin attributed progress to cultural initiatives, investing in people, and creating a flywheel effect where employees deliver integrated solutions for clients, leading to better outcomes. Though not complete, significant strides have been made.  **[BK_3393051_25]** 

15. **Balance Sheet Asset Growth**  
    **Q:** What's driving growth in loans and securities?  
    **A:** Dermot credited the CIO team's strategic deployment where they see opportunities, including picking up up to **200 basis points** as securities roll off into higher-yielding assets, and extending credit to clients as part of their business activities.  **[BK_3393051_23]** 

16. **Clearance and Collateral Management Growth**  
    **Q:** Source of higher clearance volumes?  
    **A:** Dermot said growth is due to both increased client activity from market volatility and winning new business through innovation. He expects this positive trend to continue in the near term.  **[BK_3393051_8]** 

17. **T+1 Costs and Capital Impact**  
    **Q:** Does T+1 reduce costs or free up capital?  
    **A:** Robin explained that the P&L impact is "pretty de minimis," with no significant changes in costs or spreads. It's more about assisting clients and improving market efficiency during this market inflection.  **[BK_3393051_9]** 

18. **Depository Receipt Fees Outlook**  
    **Q:** How to think about depository receipt fees?  
    **A:** Dermot mentioned they have good market share in depository receipts and expect that to continue, with opportunities to leverage scale and technology similar to Corporate Trust.  **[BK_3393051_16]** 

19. **Effectiveness of 1BNY Culture Change**  
    **Q:** How effective is the culture shift in breaking silos?  
    **A:** Robin emphasized that focusing on culture is key. By investing in people and fostering a collaborative environment, they've seen better client outcomes and bottom-line results, though there's still work to do.  **[BK_3393051_25]** 

20. **Investment in Wove Attracting New Clients**  
    **Q:** Are Wove clients new or existing?  
    **A:** Dermot stated it's both new and existing clients, and they're not cannibalizing existing business. Robin added that Wove is expanding to deliver broader capabilities, attracting clients beyond clearing and custody services.  **[BK_3393051_18]** 

21. **Impact of Quantitative Tightening on Balance Sheet**  
    **Q:** How will QT affect the balance sheet over 12–18 months?  
    **A:** Dermot said they model various scenarios, ensuring preparedness. Robin added they're maintaining a conservative and agile balance sheet to handle different outcomes amidst global uncertainties.  **[BK_3393051_24]** 

22. **Trajectory of Core Servicing Fee Growth**  
    **Q:** Where will core servicing fee growth go?  
    **A:** Robin indicated that while each year may vary, the focus is on delivering **positive operating leverage**, with higher fee growth being an important component over time.  **[BK_3393051_21]** 

23. **Impact of Seasonal Deposit Decline on NII**  
    **Q:** Is NII decline driven by seasonal deposit changes?  
    **A:** Dermot confirmed that the expected NII decline reflects seasonal decreases in deposits, particularly NIBs, which is the main driver.  **[BK_3393051_26]** 

cd40bc86c29c0e845905be9128c896cf786ce194b3d29e768bf0d093b5a6de9c

Bank of New York Mellon Corp (BK)

Financials