David Smith

Dermot said the new TRU-M mandate's revenue and expenses are durable going forward, though expected to level off slightly rather than grow.

Dermot said BNY no longer guides buybacks, treating payout as an output while prioritizing balance sheet support for clients and healthy capital ratios.

CEO cited record sales quarters, 3 consecutive years of core fee sales growth, 60%+ growth in 3+ business clients, 20% annual increase in sales productivity, and 10% of sales from new logos. Emphasized deliberate platform diversification to compound value across market environments.

CEO acknowledged trading some upside in extreme bull markets for broader exposure. Used NII as proxy: out of a thousand scenarios, very few are bad for BNY. Positioned as a diversified long-term compounder rather than a market-beta play.

CFO framed the 38% PTM and 28% ROTCE as sustainable through-the-cycle targets they aim to outperform, noting nonlinear path. Acknowledged the firm needs to deliver these through different market conditions.

CFO noted a lot more room for improvement, citing 20% increase in annual sales productivity, 2 individual record sales quarters in 2025, and 3 consecutive years of core fee sales growth. Asset management can do much more with Pershing and asset servicing.

CEO rejected 'turbulence' framing, describing stablecoin and tokenization trends as opportunities. BNY touches money markets from multiple angles, Dreyfus fund, liquidity, collateral, custody, and trustee, and has invested in digital infrastructure to capture the evolution.

CFO acknowledged they only started tracking this metric in 2025 so no precise comparison, but described multiline wins as meaningfully higher, citing WisdomTree last year as a proof point that is now being replicated with existing clients.

CEO rejected ceiling concept, citing platforms comps beyond bank peers. CFO highlighted corporate trust as example of investing in a high-margin business and growing share at even higher margins.

CEO noted higher-frequency platform businesses continue to attract activity while larger strategic decisions may pause, but BNY's breadth of platforms means most business is not in the 'big strategic decision' category.

CFO noted repo is only about 5% of NII and performing well with higher balances and tighter spreads. Deposit betas have consistently been in the low-to-mid 80s range with marginal beta around 100%.

CFO expressed strong confidence in competitive positioning and new business momentum in asset servicing, noting BNY is well positioned as world's largest custodian entering 2025.

Fox declined to commit to a precise payout figure, saying they are ahead of the 100% pace but manage capital return dynamically.

O'Grady detailed: WM organic growth consistent around 1% with GFO above and regions below, need regions to incrementally increase. AS can swing more given large mandates; had flat/negative periods a few years ago, now positive in similar range. AM growth primarily from liquidity but diversifying into ETFs and tax-advantaged equity. All about the same range, all expected to increase.

O'Grady confirmed target is all three businesses above 3%, acknowledging quarter-to-quarter variation. Diversification across three businesses provides buffer.

Fox explained planning now starts with productivity first, then balances investments against implied expense growth. Minimum 1 point of operating leverage is critical in any environment, but targets greater than 1 point to allow growth investment.

Fox noted incremental investment will go toward business growth, not running the bank. Technology modernization expenses are well-handled; additional freed-up dollars flow to growth levers.

O'Grady detailed strategy to build durable recurring capital markets business through outsourced trading services (100+ new clients YTD), currency management as automated service, and expanded liquidity capabilities including repo.

Fox attributed deposit strength to risk-off trade plus concentrated large euro deposits, noted deposits are normalizing in Q3 back to pre-Liberation Day levels with typical seasonal patterns.

O'Grady highlighted upmarket asset owners as strongest growth area with large recent wins, while asset manager outflows have stabilized. Fox added positive AUM flows with $8B Q2 and $19B YTD in liquidity, the tenth consecutive quarter of positive flows.

O'Grady connected productivity gains to funding growth in ETFs, tax-managed equity, and alternatives. Technology investments in scalability enabling both simultaneously.

O'Grady noted institutional RFPs continue on long timelines while wealth switching may pause, building up pipelines rather than destroying them.

O'Grady confirmed comfort with current levels, willingness to move them down somewhat, and expectation of 78% or higher payout ratio into 2025.

Fox highlighted the liability-driven nature of the balance sheet and difficulty predicting exact quarterly NII cadence despite full-year guidance.

Woods sized one-time severance-related costs at roughly $500M, expecting net headcount down low single digits after reinvestment.

John confirmed still operating at upper end of 10-11% range based on averages. Q1-end was episodic due to March 31 activity. On Basel III, expects net benefit: credit risk RWA reduction exceeding operational risk RWA increase. 80% payout is on GAAP basis.

Ron outlined revenue confidence from service quality improvement, expanded capabilities, and strengthened sales force. Software in good position, wealth services nascent but growing. Expects continued $500M annual productivity with AI-driven AgenTx creating additional opportunity. John hinted at medium-term targets to be shared 'sometime later this year' but didn't commit to specific ROTCE level.

Ron confirmed wealth already represents over 20% of investment management AUM. Low-cost S&P funds growing faster than industry with continued share gains. Strategy combines providing infrastructure/servicing with convenient, low-cost asset management exposures to wealth platforms.

Mark and Ron explained Alpha mandates vary too much by size, complexity, and CRD presence for simple per-mandate revenue calculation. Confirmed Alpha is accelerating sales overall.

Eric explained betas in same general zone as on the way up, with quarter-to-quarter variation driven by deposit mix, pricing changes, and individual client movements.

Ron highlighted Alpha's distinctive front-to-back value proposition, longer contract terms (7+ vs typical 3 years), and client problem-solving as key advantages. 35 announced, ~25 installed.

Shiv gave cross-adoption color and a total user count but did not break out the requested new-versus-existing split.

Vlad acknowledged banking has been mostly existing-customer adoption but expects shift to top-of-funnel acquisition via Gold Card and banking package over the next year.

Vlad highlighted Bitstamp integration driving market share gains with basic infrastructure improvements. Shiv explained smart order routing led to tiered pricing; Q4 lower volatility saw more active traders on higher tiers reducing blended take rate. January about 5bps lower than Q4 average due to more active trader engagement.

Rick confirmed no regulatory impediments remaining. Internal build of books, records, and custody capabilities is the timeline driver with plan for phased rollout.

Rick expressed strong confidence in full gap closure, noting Ameritrade clients show growing satisfaction and engagement each quarter as they discover the full Schwab platform.

Mike did not provide a specific threshold, noting intent to maintain funding diversification and operational flexibility rather than targeting zero supplemental borrowings.