BNY Mellon's Q4 2024: Conflicting Signals on Revenue Growth, Acquisitions, and Expense Management

Record Financial Performance:
- BNY reported record net income of $4.3 billion on record revenue of $18.6 billion in 2024, generating a return on tangible common equity of 23% for the year.
- This strong performance was driven by accelerated transformation, effective cross-selling, and innovative solutions that leveraged the breadth of BNY's business platforms.

Client-Focused Growth and Operationalization of ONE BNY:
- The rollout of the new commercial coverage model was an important milestone for BNY, aimed at effectively cross-selling and leveraging the breadth of its business platforms.
- This strategy, operationalizing ONE BNY, was designed to improve client experience and deepen relationships, contributing to record revenue growth.

Investment in Technology and Workforce:
- BNY generated approximately $0.5 billion of efficiency savings by digitizing workflows and leveraging AI, while transitioning roughly 25% of its employees to a new strategic platform operating model.
- These investments in technology and workforce were part of a broader strategy to drive revenue growth and scalability, supporting BNY's transformation and cultural alignment.

Positive Operating Leverage and Fee Revenue Growth:
- BNY achieved 968 basis points of positive operating leverage on a reported basis and 288 basis points excluding notable items in 2024.
- This was supported by a 6% year-over-year growth in fee revenue, despite a 1% decline in NII, outperforming revenue outlook expectations due to controlled expenses and strategic investments.