Does this look like layoffs are immanent?

Not sure what to think about it at all.

Bank of New York Mellon Corp (BK) Q1 2025 Earnings Highlights
Published April 12, 2025 | Source: GuruFocus News

Financial Performance

EPS: $1.58, up 26% YoY (22% excluding notable items)
Total Revenue: $4.8B, up 6% YoY
Expenses: $3.3B, up 2% YoY
Pre-Tax Margin: 32%
Return on Tangible Common Equity: 24%
Net Interest Income: $1.2B, up 11% YoY
Fee Revenue: Up 3% YoY

Assets & Capital

Assets Under Custody/Administration (AUCA): $53.1T, up 9% YoY
Assets Under Management (AUM): $2T, flat YoY
Provision for Credit Losses: $18M
Capital Returned to Shareholders: $1.1B YTD (95% payout ratio)
CET1 Ratio: 11.5%
Tier 1 Leverage Ratio: 6.2%
Liquidity Coverage Ratio: 116%
Net Stable Funding Ratio: 132%

Revenue by Segment

Securities Services: $2.3B, up 8% YoY
Market & Wealth Services: $1.7B, up 11% YoY
Investment & Wealth Management: $779M, down 8% YoY

Positives

Strong EPS & revenue growth
Positive operating leverage and high return on equity
Effective use of AI: 40+ AI solutions deployed, 80% of employees trained on internal AI platform Eliza
Over half the company now operating under a new platforms model
Stable deposit mix and confident NII growth forecast for 2025

Negatives

Flat AUM and net outflows in certain strategies
5% decline in investment management fees
8% revenue drop in Investment & Wealth Management; 41% drop in pre-tax income
Ongoing macroeconomic & geopolitical uncertainty

Q&A Highlights

Deposits: Q1 deposit levels in line with expectations; slight increase despite volatility
M&A Strategy: Open to strategic acquisitions (e.g., Archer) that align with company goals
AI Strategy: Strong platform-based AI integration expected to improve productivity & risk management
Digital Assets: Long-term opportunity, focus on stablecoins & digital currency engagement
Platform Model Impact: Enhancing agility, efficiency, and expected to drive future growth
NII Outlook: Mid-single-digit growth expected; non-interest-bearing deposits stable

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7 replies (most recent on top)

No, but your own career is suffering as you struggle with eighth grade spelling and grammar.

When you results look good because you are cutting costs , as opposed to rolling out innovative new products, then you have to keep cutting costs. Def more lay-offs to come. We were 55k people 2 years ago, a friend in HR ( we refuse to call it the People Team…because it’s not) told me that they want to get to 42.5k people within 18 months. We are at around 50k now. They will keep cutting. The leverage ratio goes up and the stock price looks good. Then just as you can cut no more, RV and the Goldman Bunch will “retire” and take golden payoffs. BNY will be left in an absolute mess…..

You answered it yourself OP.
Look hard at what you put down here and think about it. Not growing the business. Declining revenue. Losing clients. Cutting way back on employee budgeting and going for AI and general auto servicing…now guess what’s for lunch? Us.

Flat AUM and net outflows in certain strategies
5% decline in investment management fees
8% revenue drop in Investment & Wealth

spell check?

Was cut today. You wonder why hr is so bad..they layoff everyone that has been there a while and bring in cheaper help that have no idea what they are doing

once you move into P-M , they automatically look to cut at least 10%- my understanding is there are no exceptions.

Yes. P-M=LAYOFFS

Cutting heads is the only move they have to increase the stock price.

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Does this look like layoffs are immanent?

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