Bank of New York Mellon Corp
For the period ended Mar 31, 2025. Filed May 2, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 2, 2025
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Review of business segments
We have an internal information system that produces performance data along product and service lines for our three principal business segments: Securities Services, Market and Wealth Services and Investment and Wealth Management, and the Other segment.
Business segment accounting principles
Our business segment data has been determined on an internal management basis of accounting, rather than the generally accepted accounting principles (“GAAP”) used for consolidated financial reporting. These measurement principles are designed so that reported results of the businesses will track their economic performance.
Our business segments are consistent with the structure used by the President and Chief Executive Officer, our Chief Operating Decision Maker (“CODM”), to make key operating decisions and assess performance. Our CODM evaluates the business segments’ operating performance primarily based on fee and other revenue, total revenue, income before income taxes, and pre-tax operating margin. The significant expense information regularly provided to and reviewed by the CODM is total noninterest expense. The CODM considers this information when evaluating the performance of each business segment and making decisions about allocating capital and other resources to each business segment.
BNY 11
For information on the accounting principles of our business segments, see Note 18 of the Notes to Consolidated Financial Statements. For information on the primary products and services in each line of business, the primary types of revenue by line of business and how our business segments are presented and analyzed, see Note 24 of the Notes to Consolidated Financial Statements in our 2024 Annual Report.
Business segment results are subject to reclassification when organizational changes are made, or for refinements in revenue and expense allocation methodologies. Refinements are typically reflected on a prospective basis. There were no reclassifications or organizational changes in the first quarter of 2025.
The results of our business segments may be influenced by client and other activities that vary by quarter. In the first quarter, staff expense typically increases reflecting the vesting of long-term stock awards for retirement-eligible employees. The timing of our annual employee merit increases also impacts staff expense. The annual employee merit increases are effective in March. In the third quarter, volume-related fees may decline due to reduced client activity. In the fourth quarter, we typically incur higher business development and marketing expenses. In our Investment and Wealth Management business segment, performance fees are typically higher in the fourth and first quarters, as those quarters represent the end of the measurement period for many of the performance fee-eligible relationships.
The results of our business segments may also be impacted by the translation of financial results denominated in foreign currencies into the U.S. dollar. We are primarily impacted by activities denominated in the British pound and the euro. On a consolidated basis and in our Securities Services and Market and Wealth Services business segments, we typically have more foreign currency-denominated expenses than revenues. However, our Investment and Wealth Management business segment typically has more foreign currency-denominated revenues than expenses. Overall, currency fluctuations impact the year-over-year growth rate in the Investment and Wealth Management business segment more than the Securities Services and Market and Wealth Services business segments. However, currency fluctuations, in isolation, are not expected to significantly impact net income on a consolidated basis.
Fee revenue in the Investment and Wealth Management business segment, and, to a lesser extent, the Securities Services and Market and Wealth Services business segments, is impacted by global market fluctuations. At March 31, 2025, we estimated that a 5% change in global equity markets, spread evenly throughout the year, would impact fee revenue by less than 1% and diluted earnings per common share by $0.05 to $0.08.
See Note 18 of the Notes to Consolidated Financial Statements for the consolidating schedules, which show the contribution of our business segments to our overall profitability.
12 BNY
Securities Services business segment
| (dollars in millions, unless otherwise noted) · 1Q25 vs. | ||||||||
|---|---|---|---|---|---|---|---|---|
| 1Q25 · 4Q24 · 3Q24 · 2Q24 · 1Q24 · 4Q24 · 1Q24 | ||||||||
| Revenue: | ||||||||
| Investment services fees: | ||||||||
| Asset Servicing | $1,062 | $1,042 | $1,021 | $1,018 | $1,013 | 2% | 5% | |
| Issuer Services | 267 | 295 | 285 | 322 | 261 | (9) | 2 | |
| Total investment services fees | 1,329 | 1,337 | 1,306 | 1,340 | 1,274 | (1) | 4 | |
| Foreign exchange revenue | 136 | 147 | 137 | 144 | 124 | (7) | 10 | |
| Other fees (a) | 65 | 62 | 57 | 56 | 59 | 5 | 10 | |
| Total fee revenue | 1,530 | 1,546 | 1,500 | 1,540 | 1,457 | (1) | 5 | |
| Investment and other revenue | 140 | 97 | 105 | 104 | 99 | N/M | N/M | |
| Total fee and other revenue | 1,670 | 1,643 | 1,605 | 1,644 | 1,556 | 2 | 7 | |
| Net interest income | 630 | 681 | 609 | 595 | 583 | (7) | 8 | |
| Total revenue | 2,300 | 2,324 | 2,214 | 2,239 | 2,139 | (1) | 8 | |
| Provision for credit losses | 8 | 15 | 15 | (3) | 11 | N/M | N/M | |
| Noninterest expense (excluding amortization of intangible assets) | 1,578 | 1,659 | 1,550 | 1,547 | 1,530 | (5) | 3 | |
| Amortization of intangible assets | 6 | 7 | 7 | 7 | 7 | (14) | (14) | |
| Total noninterest expense | 1,584 | 1,666 | 1,557 | 1,554 | 1,537 | (5) | 3 | |
| Income before income taxes | $708 | $643 | $642 | $688 | $591 | 10% | 20% | |
| Pre-tax operating margin | 31% | 28% | 29% | 31% | 28% | |||
| Securities lending revenue (b) | $52 | $52 | $47 | $46 | $46 | —% | 13% | |
| Total revenue by line of business: | ||||||||
| Asset Servicing | $1,786 | $1,797 | $1,720 | $1,687 | $1,668 | (1)% | 7% | |
| Issuer Services | 514 | 527 | 494 | 552 | 471 | (2) | 9 | |
| Total revenue by line of business | $2,300 | $2,324 | $2,214 | $2,239 | $2,139 | (1)% | 8% | |
| Selected average balances: | ||||||||
| Average loans | $11,347 | $11,553 | $11,077 | $11,103 | $11,204 | (2)% | 1% | |
| Average deposits | $175,854 | $180,843 | $180,500 | $178,495 | $174,687 | (3)% | 1% | |
| Selected metrics: | ||||||||
| AUC/A at period end (in trillions) (c) | $38.1 | $37.7 | $37.5 | $35.7 | $35.4 | 1% | 8% | |
| Market value of securities on loan at period end (in billions) (d) | $504 | $488 | $484 | $481 | $486 | 3% | 4% | |
| Issuer Services: | ||||||||
| Total debt serviced at period end (in trillions) | $13.9 | $14.1 | $14.3 | $14.1 | $14.0 | (1)% | (1)% | |
| Number of sponsored Depositary Receipts programs at period end | 488 | 499 | 507 | 516 | 527 | (2)% | (7)% | |
(a) Other fees primarily include financing-related fees.
(b) Included in investment services fees reported in the Asset Servicing line of business.
(c) Consists of AUC/A primarily from the Asset Servicing line of business and, to a lesser extent, the Issuer Services line of business. Includes the AUC/A of CIBC Mellon of $1.9 trillion at March 31, 2025, $1.8 trillion at Dec. 31, 2024, $1.9 trillion at Sept. 30, 2024 and $1.7 trillion at June 30, 2024 and March 31, 2024.
(d) Represents the total amount of securities on loan in our agency securities lending program. Excludes securities for which BNY acts as agent on behalf of CIBC Mellon clients, which totaled $62 billion at March 31, 2025, $60 billion at Dec. 31, 2024, $67 billion at Sept. 30, 2024, $66 billion at June 30, 2024 and $64 billion at March 31, 2024.
The Securities Services business segment consists of two distinct lines of business, Asset Servicing and Issuer Services, which provide business solutions across the transaction life cycle to our global asset owner and asset manager clients. We are one of the leading global investment services providers with $38.1 trillion of AUC/A at March 31, 2025. For
information on the drivers of the Securities Services fee revenue, see Note 10 of the Notes to Consolidated Financial Statements in our 2024 Annual Report.
The Asset Servicing business provides a comprehensive suite of solutions. We are one of the largest global custody and front-to-back outsourcing partners. We offer services for the safekeeping of assets in capital markets globally, as well as fund
BNY 13 accounting services, exchange-traded funds servicing, transfer agency, trust and depository, front-to-back capabilities as well as data and analytics solutions for our clients. We deliver foreign exchange, securities lending and financing solutions, on both an agency and principal basis. Our agency securities lending program is one of the largest lenders of U.S. and non-U.S. securities, servicing a lendable asset pool of approximately $5.3 trillion in 34 separate markets. Our market-leading liquidity services portal enables cash investments for institutional clients and includes fund research and analytics.
Our Digital Asset Custody platform offers custody and administration services for Bitcoin and Ether for select U.S. institutional clients. Our Digital Assets Funds Services provides accounting and administration, transfer agency and ETF services to digital asset funds. We continue to develop our digital asset capabilities, working closely with clients to address their evolving digital asset needs. As of and for the quarter ended March 31, 2025, our Digital Asset Custody platform and related initiatives had a de minimis impact on our assets, liabilities, revenues and expenses.
The Issuer Services business includes Corporate Trust and Depositary Receipts. Our Corporate Trust business delivers a full range of issuer and related investor services, including trustee, paying agency, fiduciary, escrow and other financial services. We are a leading provider to debt capital markets, providing customized and market-driven solutions to investors, bondholders and lenders. Our Depositary Receipts business drives global investing by providing servicing and value-added solutions that enable, facilitate and enhance cross-border trading, clearing, settlement and ownership. We are one of the largest providers of depositary receipts services in the world, partnering with leading companies from more than 50 countries.
AUC/A of $38.1 trillion increased 8% compared with March 31, 2024, primarily reflecting higher market values, client inflows and net new business.
Total revenue of $2.3 billion increased 8% compared with the first quarter of 2024 and
decreased 1% compared with the fourth quarter of 2024. The drivers of total revenue by line of business are indicated below.
Asset Servicing revenue of $1.8 billion increased 7% compared with the first quarter of 2024 and decreased 1% compared with the fourth quarter of 2024. The increase compared with the first quarter of 2024 primarily reflects higher net interest income, market values, foreign exchange revenue and client activity. The decrease compared with the fourth quarter of 2024 primarily reflects lower net interest income.
Issuer Services revenue of $514 million increased 9% compared with the first quarter of 2024 and decreased 2% compared with the fourth quarter of 2024. The increase compared with the first quarter of 2024 primarily reflects the disposal gain and higher Corporate Trust fees, partially offset by lower net interest income. The decrease compared with the fourth quarter of 2024 primarily reflects lower net interest income and Depositary Receipts revenue, partially offset by the disposal gain.
Market and regulatory trends are driving investable assets toward lower fee asset management products at reduced margins for our clients. These dynamics are also negatively impacting our investment services fees. However, at the same time, these trends are providing additional outsourcing opportunities as clients and other market participants seek to comply with regulations and reduce their operating costs.
Noninterest expense of $1.6 billion increased 3% compared with the first quarter of 2024 and decreased 5% compared with the fourth quarter of 2024. The increase compared with the first quarter of 2024 primarily reflects higher investments, revenue-related expenses and employee merit increases, partially offset by efficiency savings. The decrease compared with the fourth quarter of 2024 primarily reflects efficiency savings and lower litigation reserves, partially offset by higher investments.
14 BNY
Market and Wealth Services business segment
| (dollars in millions, unless otherwise noted) · 1Q25 vs. | ||||||||
|---|---|---|---|---|---|---|---|---|
| 1Q25 · 4Q24 · 3Q24 · 2Q24 · 1Q24 · 4Q24 · 1Q24 | ||||||||
| Revenue: | ||||||||
| Investment services fees: | ||||||||
| Pershing | $503 | $516 | $475 | $474 | $482 | (3)% | 4% | |
| Treasury Services | 209 | 206 | 200 | 202 | 184 | 1 | 14 | |
| Clearance and Collateral Management | 362 | 364 | 354 | 338 | 329 | (1) | 10 | |
| Total investment services fees | 1,074 | 1,086 | 1,029 | 1,014 | 995 | (1) | 8 | |
| Foreign exchange revenue | 29 | 27 | 23 | 23 | 24 | 7 | 21 | |
| Other fees (a) | 65 | 61 | 58 | 58 | 58 | 7 | 12 | |
| Total fee revenue | 1,168 | 1,174 | 1,110 | 1,095 | 1,077 | (1) | 8 | |
| Investment and other revenue | 21 | 19 | 20 | 23 | 17 | N/M | N/M | |
| Total fee and other revenue | 1,189 | 1,193 | 1,130 | 1,118 | 1,094 | — | 9 | |
| Net interest income | 497 | 474 | 415 | 417 | 423 | 5 | 17 | |
| Total revenue | 1,686 | 1,667 | 1,545 | 1,535 | 1,517 | 1 | 11 | |
| Provision for credit losses | 4 | 9 | 7 | (2) | 5 | N/M | N/M | |
| Noninterest expense (excluding amortization of intangible assets) | 865 | 851 | 833 | 832 | 833 | 2 | 4 | |
| Amortization of intangible assets | 1 | 1 | 1 | 1 | 1 | — | — | |
| Total noninterest expense | 866 | 852 | 834 | 833 | 834 | 2 | 4 | |
| Income before income taxes | $816 | $806 | $704 | $704 | $678 | 1% | 20% | |
| Pre-tax operating margin | 48% | 48% | 46% | 46% | 45% | |||
| Total revenue by line of business: | ||||||||
| Pershing | $719 | $705 | $649 | $663 | $670 | 2% | 7% | |
| Treasury Services | 477 | 471 | 424 | 426 | 416 | 1 | 15 | |
| Clearance and Collateral Management | 490 | 491 | 472 | 446 | 431 | — | 14 | |
| Total revenue by line of business | $1,686 | $1,667 | $1,545 | $1,535 | $1,517 | 1% | 11% | |
| Selected average balances: | ||||||||
| Average loans | $42,986 | $42,217 | $42,730 | $41,893 | $39,271 | 2% | 9% | |
| Average deposits | $91,905 | $90,980 | $88,856 | $91,371 | $89,539 | 1% | 3% | |
| Selected metrics: | ||||||||
| AUC/A at period end (in trillions) (b) | $14.7 | $14.1 | $14.3 | $13.4 | $13.1 | 4% | 12% | |
| Pershing: | ||||||||
| AUC/A at period end (in trillions) | $2.7 | $2.7 | $2.7 | $2.6 | $2.6 | —% | 4% | |
| Net new assets (U.S. platform) (in billions) (c) | $11 | $41 | $(22) | $(23) | $(2) | N/M | N/M | |
| Daily average revenue trades (“DARTs”) (U.S. platform) (in thousands) | 298 | 254 | 251 | 280 | 290 | 17% | 3% | |
| Average active clearing accounts (in thousands) | 8,406 | 8,260 | 8,085 | 8,057 | 7,991 | 2% | 5% | |
| Treasury Services: | ||||||||
| Average daily U.S. dollar payment volumes | 244,673 | 250,714 | 242,243 | 241,253 | 237,124 | (2)% | 3% | |
| Clearance and Collateral Management: | ||||||||
| Average collateral balances (in billions) (d) | $6,576 | $6,463 | $6,380 | $6,085 | $5,937 | 2% | 11% | |
(a) Other fees primarily include financing-related fees.
(b) Consists of AUC/A from the Clearance and Collateral Management and Pershing lines of business.
(c) Net new assets represent net flows of assets (e.g., net cash deposits and net securities transfers, including dividends and interest) in customer accounts in Pershing LLC, a U.S. broker-dealer.
(d) The previously reported metric for the Clearance and Collateral Management line of business, Average tri-party collateral management balances, has been replaced with a new metric, Average collateral balances. Average collateral balances include all revenue-generating collateral balances, including the tri-party collateral management balances previously reported. The average collateral balances were $6,217 billion for full-year 2024, $6,343 billion for full-year 2023, $5,861 billion for full-year 2022, $4,657 billion for full-year 2021 and $3,966 billion for full-year 2020.
The Market and Wealth Services business segment consists of three distinct lines of business, Pershing,
Treasury Services and Clearance and Collateral Management, which provide business services and technology solutions to entities including financial institutions, corporations, foundations and
BNY 15 endowments, public funds and government agencies. For information on the drivers of the Market and Wealth Services fee revenue, see Note 10 of the Notes to Consolidated Financial Statements in our 2024 Annual Report.
Pershing provides execution, clearing, custody, business and technology solutions, delivering operational support to broker-dealers, wealth managers and registered investment advisors (“RIAs”) globally.
Our Treasury Services business is a leading provider of global payments, liquidity management and trade finance services for financial institutions, corporations and the public sector.
Our Clearance and Collateral Management business clears and settles equity and fixed income transactions globally and serves as custodian for tri-party repo collateral worldwide. We are the primary provider of U.S. government securities clearance and a provider of non-U.S. government securities clearance. Our collateral services include collateral management, administration and segregation. We offer innovative solutions and industry expertise, which help financial institutions and institutional investors with their financing, risk and balance sheet challenges. We are a leading provider of collateral services with an average of $6.6 trillion serviced globally, including approximately $5.1 trillion of the U.S. tri-party repo market at March 31, 2025.
AUC/A of $14.7 trillion increased 12% compared with March 31, 2024, primarily reflecting net client inflows in the Clearance and Collateral Management business.
Total revenue of $1.7 billion increased 11% compared with the first quarter of 2024 and 1% compared with the fourth quarter of 2024. The drivers of total revenue by line of business are indicated below.
Pershing revenue of $719 million increased 7% compared with the first quarter of 2024 and 2% compared with the fourth quarter of 2024. The increase compared with the first quarter of 2024 primarily reflects higher net interest income, market values and net new business. The increase compared with the fourth quarter of 2024 primarily reflects higher net interest income.
Treasury Services revenue of $477 million increased 15% compared with the first quarter of 2024 and 1% compared with the fourth quarter of 2024. The increase compared with the first quarter of 2024 primarily reflects higher net interest income, net new business and higher client activity.
Clearance and Collateral Management revenue of $490 million increased 14% compared with the first quarter of 2024 and was flat compared with the fourth quarter of 2024. The increase compared with the first quarter of 2024 primarily reflects higher net interest income, clearance volumes and collateral management balances.
Noninterest expense of $866 million increased 4% compared with the first quarter of 2024 and 2% compared with the fourth quarter of 2024. The increase compared with the first quarter of 2024 primarily reflects higher investments and employee merit increases, partially offset by efficiency savings. The increase compared with the fourth quarter of 2024 primarily reflects higher investments, partially offset by efficiency savings and lower severance expense.
16 BNY
Investment and Wealth Management business segment
| 1Q25 vs. | ||||||||
|---|---|---|---|---|---|---|---|---|
| (dollars in millions) · 1Q25 (a) · 4Q24 · 3Q24 · 2Q24 · 1Q24 · 4Q24 (a) · 1Q24 (a) | ||||||||
| Revenue: | ||||||||
| Investment management fees (a) | $735 | $789 | $782 | $754 | $768 | (7)% | (4)% | |
| Performance fees | 5 | 20 | 13 | 8 | 10 | N/M | N/M | |
| Investment management and performance fees (b) | 740 | 809 | 795 | 762 | 778 | (9) | (5) | |
| Distribution and servicing fees | 68 | 68 | 68 | 69 | 70 | — | (3) | |
| Other fees (c) | (75) | (64) | (68) | (64) | (60) | N/M | N/M | |
| Total fee revenue | 733 | 813 | 795 | 767 | 788 | (10) | (7) | |
| Investment and other revenue (d) | 5 | 13 | 9 | 11 | 17 | N/M | N/M | |
| Total fee and other revenue (d) | 738 | 826 | 804 | 778 | 805 | (11) | (8) | |
| Net interest income | 41 | 47 | 45 | 43 | 41 | (13) | — | |
| Total revenue | 779 | 873 | 849 | 821 | 846 | (11) | (8) | |
| Provision for credit losses | 2 | — | 1 | 4 | (1) | N/M | N/M | |
| Noninterest expense (excluding amortization of intangible assets) (a) | 710 | 695 | 668 | 663 | 736 | 2 | (4) | |
| Amortization of intangible assets | 4 | 5 | 4 | 5 | 4 | (20) | — | |
| Total noninterest expense | 714 | 700 | 672 | 668 | 740 | 2 | (4) | |
| Income before income taxes | $63 | $173 | $176 | $149 | $107 | (64)% | (41)% | |
| Pre-tax operating margin | 8% | 20% | 21% | 18% | 13% | |||
| Adjusted pre-tax operating margin – Non-GAAP (e) | 9% | 22% | 23% | 20% | 14% | |||
| Total revenue by line of business: | ||||||||
| Investment Management (a) | $505 | $585 | $569 | $549 | $576 | (14)% | (12)% | |
| Wealth Management | 274 | 288 | 280 | 272 | 270 | (5) | 1 | |
| Total revenue by line of business | $779 | $873 | $849 | $821 | $846 | (11)% | (8)% | |
| Selected average balances: | ||||||||
| Average loans | $13,537 | $13,718 | $13,648 | $13,520 | $13,553 | (1)% | —% | |
| Average deposits | $9,917 | $9,967 | $10,032 | $11,005 | $11,364 | (1)% | (13)% | |
(a) Beginning in the first quarter of 2025, certain rebate agreements, which were previously recorded as distribution and servicing expense, began to be reflected as a reduction of investment management fees. These amounts totaled approximately $20 million for both the first quarter of 2025 and first quarter of 2024 and impacted the variances for investment management fees and related revenue subtotals, noninterest expense and Investment Management total revenue in the table above.
(b) On a constant currency basis, investment management and performance fees decreased 4% (Non-GAAP) compared with the first quarter of 2024. See “Supplemental information – Explanation of GAAP and Non-GAAP financial measures” beginning on page 41 for the reconciliation of this Non-GAAP measure.
(c) Other fees primarily include investment services fees.
(d) Investment and other revenue and total fee and other revenue are net of income (loss) attributable to noncontrolling interests related to consolidated investment management funds.
(e) Net of distribution and servicing expense. See “Supplemental information – Explanation of GAAP and Non-GAAP financial measures” beginning on page 41 for the reconciliation of this Non-GAAP measure.
BNY 17
| AUM trends | 1Q25 vs. | ||||||
|---|---|---|---|---|---|---|---|
| (dollars in billions) | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 1Q24 | 4Q24 | 1Q24 |
| AUM by product type: (a) | |||||||
| Equity | $156 | $162 | $173 | $167 | $168 | (4)% | (7)% |
| Fixed income | 234 | 221 | 235 | 221 | 219 | 6 | 7 |
| Index | 470 | 491 | 498 | 485 | 474 | (4) | (1) |
| Liability-driven investments | 549 | 548 | 637 | 598 | 573 | — | (4) |
| Multi-asset and alternative investments | 167 | 171 | 175 | 173 | 174 | (2) | (4) |
| Cash | 432 | 436 | 426 | 401 | 407 | (1) | 6 |
| Total AUM | $2,008 | $2,029 | $2,144 | $2,045 | $2,015 | (1)% | —% |
| Changes in AUM: (a) | |||||||
| Beginning balance of AUM | $2,029 | $2,144 | $2,045 | $2,015 | $1,974 | ||
| Net inflows (outflows): | |||||||
| Long-term strategies: | |||||||
| Equity | (3) | (5) | (2) | (4) | (4) | ||
| Fixed income | 2 | (2) | 4 | 4 | 12 | ||
| Liability-driven investments | 1 | (11) | (4) | 4 | 13 | ||
| Multi-asset and alternative investments | (2) | (2) | (6) | (2) | (5) | ||
| Total long-term active strategies (outflows) inflows | (2) | (20) | (8) | 2 | 16 | ||
| Index | (11) | (7) | (16) | (4) | (15) | ||
| Total long-term strategies (outflows) inflows | (13) | (27) | (24) | (2) | 1 | ||
| Short-term strategies: | |||||||
| Cash | (5) | 12 | 24 | (7) | 16 | ||
| Total net (outflows) inflows | (18) | (15) | — | (9) | 17 | ||
| Net market impact | (25) | (45) | 58 | 40 | 16 | ||
| Net currency impact | 22 | (55) | 41 | (1) | (10) | ||
| Other | — | — | — | — | 18(b) | ||
| Ending balance of AUM | $2,008 | $2,029 | $2,144 | $2,045 | $2,015 | (1)% | —% |
| Wealth Management client assets (c) | $327 | $327 | $333 | $308 | $309 | —% | 6% |
(a) Represents assets managed in the Investment and Wealth Management business segment.
(b) Reflects the realignment of similar products and services within our lines of business.
(c) Includes AUM and AUC/A in the Wealth Management line of business.
Our Investment and Wealth Management business segment consists of the Investment Management and Wealth Management lines of business. Our investment firms deliver a highly diversified portfolio of investment strategies independently, and through our global distribution network, to institutional and retail clients globally. Wealth Management provides investment management, custody, wealth and estate planning, private banking services, investment servicing and information management. See pages 18 and 19 of our 2024 Annual Report for additional information on our Investment and Wealth Management business segment.
AUM of $2.0 trillion as of March 31, 2025, was flat compared with March 31, 2024, reflecting higher market values, offset by cumulative net outflows.
Net long-term strategy outflows were $13 billion in the first quarter of 2025, driven by index, equity and multi-asset and alternative investments, partially offset by fixed income and liability-driven investments. Short-term strategy outflows were $5 billion in the first quarter of 2025. Market and regulatory trends have resulted in increased demand for lower fee asset management products and for performance-based fees.
Total revenue of $779 million decreased 8% compared with the first quarter of 2024 and 11% compared with the fourth quarter of 2024.
18 BNY
Investment Management revenue of $505 million decreased 12% compared with the first quarter of 2024 and 14% compared with the fourth quarter of 2024. The decrease compared with the first quarter of 2024 primarily reflects the mix of AUM flows, an adjustment for certain rebates (offset in noninterest expense) (refer to note(a) in the table on page 17), lower seed capital gains and lower equity investment income, partially offset by higher market values. The decrease compared with the fourth quarter of 2024 primarily reflects the adjustment for certain rebates (offset in noninterest expense), timing of performance fees, lower equity investment income, lower seed capital gains and the mix of AUM flows.
Wealth Management revenue of $274 million increased 1% compared with the first quarter of 2024 and decreased 5% compared with the fourth quarter of 2024. The increase compared with the first quarter of 2024 primarily reflects higher market values, partially offset by changes in product mix. The
decrease compared with the fourth quarter of 2024 primarily reflects lower net interest income.
Revenue generated in the Investment and Wealth Management business segment included 28% from non-U.S. sources in the first quarter of 2025, compared with 30% in the first quarter of 2024 and 30% in the fourth quarter of 2024.
Noninterest expense of $714 million decreased 4% compared with the first quarter of 2024 and increased 2% compared with the fourth quarter of 2024. The decrease compared with the first quarter of 2024 primarily reflects lower revenue-related expenses (including the adjustment for certain rebates) and efficiency savings, partially offset by higher investments. The increase compared with the fourth quarter of 2024 primarily reflects higher revenue-related expenses (net of the adjustment for certain rebates), partially offset by lower severance expense and efficiency savings.
Other segment
| (in millions) | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 1Q24 |
|---|---|---|---|---|---|
| Fee revenue | $(28) | $(20) | $(1) | $(4) | $(17) |
| Investment and other revenue | 62 | 9 | 55 | 29 | 47 |
| Total fee and other revenue | 34 | (11) | 54 | 25 | 30 |
| Net interest (expense) | (9) | (8) | (21) | (25) | (7) |
| Total revenue | 25 | (19) | 33 | — | 23 |
| Provision for credit losses | 4 | (4) | — | 1 | 12 |
| Noninterest expense | 88 | 137 | 37 | 15 | 65 |
| (Loss) income before income taxes | $(67) | $(152) | $(4) | $(16) | $(54) |
| Average loans and leases | $1,800 | $1,723 | $1,750 | $1,767 | $1,816 |
See page 20 of our 2024 Annual Report for additional information on the Other segment.
Total revenue includes corporate treasury and other investment activity, including hedging activity, which has an offsetting impact between fee and other revenue and net interest expense.
Total revenue increased $2 million compared with the first quarter of 2024 and $44 million compared with the fourth quarter of 2024. The increase compared
with the fourth quarter of 2024 primarily reflects net losses on sales of securities recorded in the fourth quarter of 2024.
Noninterest expense increased $23 million compared with the first quarter of 2024 and decreased $49 million compared with the fourth quarter of 2024. The increase compared with the first quarter of 2024 primarily reflects higher staff expense. The decrease compared with the fourth quarter of 2024 primarily reflects lower severance expense and the net impact of the adjustments to the FDIC special assessment.
BNY 19
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.