The Bank of New York Mellon (BK) Goldman Sachs 28th European Financials conference summary

Strategic priorities and transformation

• Focused on three pillars: running the company better, being more for clients, and empowering culture, with a new Chief Commercial Officer driving client engagement and sales force transformation.

• Breaking down business silos to offer integrated solutions, increasing cross-selling and internal product visibility, especially in liquidity and asset management.

• Migration to a platform operating model, with 7,000 employees already transitioned and plans for all 53,000 staff to follow, aiming for efficiency and entrepreneurial culture.

• Emphasis on expense management and value creation, targeting positive operating leverage and further efficiencies through AI and platform integration.

• Investment in talent and culture, including a new graduate program to remix headcount and support growth initiatives.

Business segment performance and growth

• Securities services remain a core business, with a focus on margin improvement and growth in corporate trust and depositary receipts.

• Wealth services and Pershing platform are high-margin, fast-growing segments, with new client wins and innovative offerings like Wove driving expansion.

• Treasury services deliver strong digital growth and high margins, while wealth management and asset management are being repositioned for margin recovery and efficiency.

• Collateral management and clearance businesses are innovating, benefiting from regulatory changes and international expansion opportunities.

• Strategic hires and new initiatives in securities financing, FX, and digital assets are expanding capabilities and positioning for future growth.

Financial outlook and capital management

• Medium-term targets include a 33% margin, 23% return on tangible common equity, and capital returns of 100% or more of earnings.

• NII guidance is down 10% for the year, with deposit levels stable and fee growth expected around 4%, supported by strong pricing discipline and client stickiness.

• Capital return framework remains robust, with significant buybacks and dividends planned, and AOCI expected to provide a tailwind as it pulls to par.

• Continued focus on positive operating leverage, with revenue-related expenses driving any increases and ongoing investment in growth and efficiency.

• Management confident in outperforming market expectations, aiming for a SaaS-like platform model and higher market valuation multiples over the next three years.