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- **Record Financials**: Q3 revenue of $5.1 billion (+9% YoY), EPS of $1.88 (+25% YoY), and 36% pretax margin highlight strong execution.
- **Strategic Growth**: 49% of Asset Servicing wins were multiline, reflecting success of the new commercial model. Digital asset initiatives, including blockchain-enabled money market funds, position BNY for future growth.
- **AI Acceleration**: 117 AI solutions in production (75% QoQ growth), with 100+ digital employees supporting tasks like payment validation.
- **Capital Discipline**: 92% payout ratio year-to-date, with 3% expense growth guided for 2025, balancing reinvestment in AI and digital assets.

**【CEO Summary Section】**
- **Record Revenue Growth**: Q3 revenue of $5.1 billion, up 9% YoY, driven by double-digit growth in Securities Services and Market and Wealth Services segments. Pretax margin expanded to 36%, with EPS up 25% YoY to $1.88.
- **Strategic Wins**: Secured multiline solutions with long-term clients like Franklin Templeton and TIAA, leveraging the new commercial model. Digital asset initiatives, such as custodianship for OpenEden and blockchain-enabled money market funds, highlight innovation.
- **AI and Operating Model**: Launched Eliza 2.0 AI platform, with 117 AI solutions in production (75% QoQ growth). 70% of employees transitioned to the platform operating model, with full activation by Q4 2026.

**【CFO Financial Commentary】**
- **Revenue Breakdown**: Fee revenue up 7% YoY, driven by investment services (10% growth) and foreign exchange (4% growth). Net interest income rose 18% YoY to $1.2 billion, benefiting from higher reinvestment yields.
- **Segment Performance**: Securities Services pretax income up 26% YoY to $806 million (33% margin). Market and Wealth Services reported $875 million pretax income (50% margin), driven by Pershing's net new assets and clearance volumes.
- **Expense Management**: Total expenses up 4% YoY to $3.2 billion, with 3% full-year growth guided, reflecting cost control and reinvestment in growth initiatives.

**【Q&A Highlights】**
- **Market vs. Company Growth**: 50% of growth attributed to company initiatives (e.g., commercial model, AI), with the rest from market conditions. Cross-selling success in Asset Servicing (49% of wins multiline).
- **Digital Assets**: Viewed as a long-term opportunity, with BNY as a rails provider for stablecoins. No immediate plans for a BNY stablecoin, but open to enabling clients' digital asset strategies.
- **M&A and Capital Returns**: Maintained 90-100% payout ratio, with $1.2 billion returned in Q3. Open to M&A but focused on organic growth through platform transformation.
- **NII Outlook**: Q4 NII flat sequentially, with full-year 2025 growth of 12% YoY. 2026 NII guided to match Q4 2025 levels, assuming stable rates.

The Bank of New York Mellon Corporation (BK) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

BK

BK fundamentals

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