Latest news with #BankOfNewYorkMellon
Bloomberg
23-07-2025
- Business
- Bloomberg
Goldman Sachs, BNY to Record Money Market Funds on Blockchain
Bank of New York Mellon Corp. and Goldman Sachs Group Inc. are collaborating to use blockchain technology to maintain an ownership record of money market funds. The so-called tokenization of real world assets has been promoted heavily as one of the most viable use cases for blockchains, the distributed ledger technology that underpins most cryptocurrencies. BlackRock Inc., Franklin Templeton, and KKR & Co. all have announced efforts to tokenize certain parts of their funds. Mckinsey estimated the tokenization market could swell to $2 trillion by 2030 in a report published last year.
Yahoo
19-07-2025
- Business
- Yahoo
Invesco stock soars after seeking to convert QQQ Trust to open-ended fund
-- Invesco Capital Management (NYSE:IVZ) stock soared 13% Friday, reaching its highest intraday level since February, after the company filed a proxy statement with the Securities and Exchange Commission seeking to convert the Invesco QQQ Trust Series 1 into an open-ended fund. The asset manager is asking shareholders to approve changing QQQ from its current unit investment trust structure to an open-ended fund, a move that could significantly alter revenue distribution. Currently, despite QQQ generating approximately $711 million in annual fee revenue with its $355 billion in assets and 0.2% expense ratio, Invesco earns virtually nothing from running it, with most revenue going to Bank of New York Mellon (NYSE:BK) as trustee and Nasdaq as index provider. If shareholders approve the conversion, Invesco Capital Management would be appointed as investment adviser to QQQ under an investment advisory agreement with a unitary fee of 18 basis points. This would represent a 2 basis point reduction from QQQ's current expense ratio of 20 basis points. The stock rally also coincided with better-than-expected results from Charles Schwab (NYSE:SCHW) and other financial firms, boosting investor sentiment in the sector. Meanwhile, Nasdaq Inc. (NASDAQ:NDAQ) shares fell 1.2% Friday, potentially reflecting concerns about its revenue from the QQQ index if the conversion proceeds. Bloomberg Intelligence ETF analyst Athanasios Psarofagis noted the significance of the potential change, saying, "They have basically been running this fund, which is the greatest ever, as a charity," referring to QQQ's nearly 1,260% return since its 1999 inception. "If they can re-purpose that, it could free up revenue to invest in other areas, like new products." Related articles Invesco stock soars after seeking to convert QQQ Trust to open-ended fund Victoria's Secret Exposed: The Warning Sign Behind the Stock's 52% Collapse Clients buying into summer rally, bracing for later pullback, says BofA's Hartnett Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-07-2025
- Business
- Yahoo
Bank of New York Mellon Corp (BK) Q2 2025 Earnings Call Highlights: Robust Revenue Growth and ...
Earnings Per Share (EPS): $1.93, up 27% year over year on a reported basis; $1.94, up 28% excluding notable items. Total Revenue: $5 billion, up 9% year over year. Fee Revenue: Up 7%, including 9% growth in investment services fees. Net Interest Income: Up 17% year over year. Pre-Tax Margin: 37%. Return on Tangible Common Equity: 28%. Assets Under Custody/Administration (AUC/A): $55.8 trillion, up 13% year over year. Assets Under Management (AUM): $2.1 trillion, up 3% year over year. Expenses: $3.2 billion, up 4% year over year. Security Services Revenue: $2.5 billion, up 10% year over year. Market and Wealth Services Revenue: $1.7 billion, up 13% year over year. Investment and Wealth Management Revenue: $801 million, down 2% year over year. Net Interest Income Growth Expectation for 2025: High-single digit percentage points year over year. Expense Growth Expectation for 2025: Approximately 3% year over year. Effective Tax Rate Expectation for 2025: 22% to 23% range. Capital Return to Shareholders: Approximately $1.2 billion in the second quarter, 92% total payout ratio year to date. Warning! GuruFocus has detected 2 Warning Sign with FBK. Release Date: July 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bank of New York Mellon Corp (NYSE:BK) reported a strong second quarter with earnings per share of $1.93, up 27% year over year. Total revenue exceeded $5 billion for the first time in a quarter, marking a 9% increase year over year. The company achieved significant positive operating leverage, approximately 500 basis points on both a reported and operating basis. Return on tangible common equity improved to 28%, reflecting the company's robust financial performance. The commercial model has shown effectiveness with record sales for two consecutive quarters, indicating strong client engagement and growth potential. Investment management and performance fees were flat, with growth offset by the mix of AUM flows and certain rebates. Assets under management saw net outflows of $17 billion, driven by index, multi-assets, and equity strategies. The investment and wealth management segment reported a 2% decline in total revenue year over year. The company's Tier 1 leverage ratio decreased by 17 basis points sequentially to 6.1%. The liquidity coverage ratio dropped by 4 percentage points sequentially, reflecting elevated deposit balances. Q: Robin, could you address how you're thinking about capital deployment relative to where the stock is trading today, and the news around BNY pursuing a merger with a competitor? A: Robin Vince, CEO: Our primary focus is on generating value over the medium and long term. We are a capital-light business, as evidenced by our 28% ROTCE. While M&A can be a powerful tool, it has a high bar, especially for larger transactions. We are focused on organic growth, but remain open to sensible inorganic opportunities if they align with our strategic priorities and make financial sense. Q: Is it safe for investors to assume that BNY is becoming a high 20s ROTCE institution, which should support a different multiple than in the past? A: Robin Vince, CEO: We don't see a ceiling on our ROTCE. As a platforms-oriented company, we are focused on fee growth, which is a capital-light business. We have a lot of ambition and are early in our journey, constantly moving the bar higher on ourselves. Q: Can you discuss the evolution of top-of-the-house performance, particularly the fee side, and how it informs the slight increase in the overall cost guide? A: Dermot Mcdonogh, CFO: We focus on positive operating leverage, which has been our core strategy. Revenue is up 9%, and expenses are up 4%, delivering positive operating leverage. The strength in fees underscores our commercial model, and we see strong momentum continuing, despite Q3 being seasonally slower. Q: With so much going well, can you discuss what investments you're making to improve the investment management business? A: Dermot Mcdonogh, CFO: Appointing Jose as the leader of investment management was a key investment. We are focusing on cross-selling within the firm and bringing the boutiques closer to the firm. We see opportunities to leverage our manufacturing capabilities with our Pershing and asset servicing clients. Q: How does AI contribute to your operating leverage, and is it more of a revenue or expense story? A: Robin Vince, CEO: AI is both a top-line and expense story. It unlocks capacity in the company, allowing us to reinvest in higher-value activities. We are in the early days, but we expect AI to accelerate our growth in the coming years. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
