Q4 2024 Bank of New York Mellon Corp Earnings Call Transcript
Key Points
- Bank of New York Mellon Corp (BK) delivered record net income of $4.3 billion on record revenue of $18.6 billion for 2024.
- The company achieved a return on tangible common equity of 23% for the year, indicating strong profitability.
- Fee revenue grew by 6% year over year, with investment services fees increasing by 7%, driven by net new business and higher market values.
- The company successfully executed its strategic transformation, transitioning approximately 13,000 employees to a new operating model.
- BK returned 102% of 2024 earnings to shareholders through dividends and share repurchases, demonstrating strong capital return commitment.
- Net interest income was down 1% year over year, reflecting changes in the deposit mix.
- Expenses, excluding notable items, increased by 1% year over year, driven by higher investments and employee merit increases.
- The outlook for 2025 is uncertain due to geopolitical tensions, trade policy uncertainties, and market volatility.
- Provision for credit losses was $20 million in the fourth quarter, primarily due to commercial real estate exposure.
- The company faces challenges in maintaining positive operating leverage amidst ongoing transformation efforts.
Good afternoon and welcome to the 2024 fourth-quarter earnings conference call hosted by BNY. (Operator Instructions) Please note that this conference call and webcast will be recorded and will consist of copyrighted material. You may not record or rebroadcast these materials without BNY's consent.
I will now turn the call over to Marius Merz, BNY Head of Investor Relations. Please go ahead.
Thank you, operator. Good afternoon, everyone, and welcome to our earnings call for the fourth quarter of 2024. I'm joined by Robin Vince, our President and Chief Executive Officer, and Dermot McDonogh, our Chief Financial Officer. Robin will start with a strategic update, followed by Dermot with his financial update and outlook. Both will reference our quarterly update presentation, which can be found on the Investor Relations page of our website at bny.com.
I'll also note that our remarks will contain forward-looking statements
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