The Bank of New York Mellon (BNY) Q4 2024 earnings summary

Executive summary

• Achieved record net income of $4.3 billion and record revenue of $18.6 billion for 2024, with a return on tangible common equity of 23% and four consecutive quarters of positive operating leverage.

• Accelerated transformation initiatives, including a new commercial coverage model, acquisition of Archer, and phased transition to a Platform Operating Model, with 13,000 employees transitioned in 2024 and a target of over 80% by end of 2025.

• Returned $4.4 billion to shareholders in 2024 through dividends and share repurchases, with a 102% payout ratio.

• Celebrated the company's 240th anniversary and modernized the brand and logo to enhance market visibility and talent recruitment.

• Strategic initiatives included new products, platform transitions, and increased technology investment.

Financial highlights

• Total revenue of $18.6 billion, up 5% year-over-year; net income up 41%; EPS up 49% year-over-year; fee revenue up 6%; investment services fees up 7%; investment management and performance fees up 3%.

• Expenses of $12.7 billion, down 4% year-over-year on a reported basis; up 1% excluding notable items.

• Pre-tax margin was 31% (reported) and 33% (excluding notable items); EPS of $5.80 (reported), $6.03 (excluding notable items), up 19% year-over-year.

• Fourth quarter revenue of $4.85 billion, up 11% year-over-year; net income applicable to common shareholders was $1.13 billion, up 598% year-over-year; EPS up 633% year-over-year to $1.54.

• Noninterest expense fell 16% year-over-year to $3.36 billion in Q4; adjusted noninterest expense up 2%.

Outlook and guidance

• Expect full-year 2025 NII to be up mid-single-digit percentage points year-over-year; fee revenue expected to increase; expenses (excluding notable items) to grow 1%-2% in 2025.

• Effective tax rate for 2025 projected at 22%-23%.

• Plan to return approximately 100% of 2025 earnings to shareholders; positive operating leverage and payout ratio around 100% anticipated.

• CET1 ratio target remains at 11.2%; Tier 1 leverage ratio management target at 5.5%-6%.

• Entering 2025 with strong momentum and ongoing transformation, supported by strategic execution and investments in talent and technology.