The Bank of New York Mellon (BK) Q2 2023 Earnings Call Transcript

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, and welcome to the 2023 Second Quarter Earnings Conference Call hosted by BNY Mellon. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. 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 Mellon's consent.

I will now turn the call over to Marius Merz, BNY Mellon, Head of Investor Relations. Please go ahead.

Marius Merz

Thank you, operator, and good morning, everyone. Welcome to our second quarter 2023 earnings call. As always, we will reference our financial highlights presentation, which can be found on the Investor Relations page of our website at bnymellon.com.

I'm joined by Robin Vince, President and Chief Executive Officer; and Dermot McDonogh, our Chief Financial Officer. Robin will start with introductory remarks and Dermot will then take you through the earnings presentation. Following their remarks, there will be a Q&A session.

Before we begin, please note that our remarks include forward-looking statements and non-GAAP measures. Information about these statements and non-GAAP measures are available in the earnings press release, financial supplement and financial highlights presentation, all available on the Investor Relations page of our website. Forward-looking statements made on this call speak only as of today, July 18, 2023, and will not be updated.

With that, I will turn it over to Robin.

Robin Vince

Thanks, Marius, and thank you everyone for joining us this morning. Dermot will walk you through the financials for the quarter shortly. But in summary, the company delivered good financial performance amid a very dynamic operating environment, and we've continued taking actions to position the firm for higher underlying growth and enhanced operational efficiency over time.

Referring to Slide 2 of our financial highlights presentation, BNY Mellon reported second quarter earnings per share of $1.30, which was up 26% year-over-year, on $4.5 billion of revenue, an increase of 5% year-over-year.

Consistent with our focus on driving pre-tax margin expansion in 2023 and beyond, we drove meaningful positive operating leverage, as we maintained strong expense discipline, while continuing to make significant investments to improve our growth trajectory and transform our operating model. As a result, our pre-tax margin improved to 30% and we generated a return on tangible common equity of 23% in the quarter.