The Bank of New York Mellon Corporation (NYSE:BK) Q4 2019 Earnings Conference Call - Final Transcript

Jan 16, 2020 • 08:00 am ET


The Bank of New York Mellon Corporation (NYSE:BK) Q4 2019 Earnings Conference Call - Final Transcript


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Thomas P. Gibbons

executed a significant number of strategic programs in 2019 that will drive efficiency, reduce risk and enhance the client experience.

Looking at our progress across our business portfolio, let's start with asset servicing. We're taking action to ensure we consistently provide excellent service quality, the pipeline is growing and we announced an important new wins in 2019 across different geographies in both asset owner and asset manager segments. We created some exciting partnerships with leading front office system providers, namely Aladdin, Bloomberg and most recently SimCorp. And we will provide our clients with open architecture that give them choice and flexibility. While still early these partnerships are strengthening our offering and they're helping us win new business.

We enhanced our capabilities and alternatives and ETFs, which have strong growth prospects, and we're expanding new range of data and analytical applications available to our clients, where our strong position in data management, accounting, performance and distribution analytics position us to deepen our relationships. We made good progress in monitoring and measuring client relationships and improving the quality of work and services we provide day in and day out for our clients. This is already driving improved client satisfaction and lower attrition rates.

In Pershing, we are seeing fee growth coming through and are excited about the future to this business. The industry is evolving and we are confident that our market leadership and strategy will position us well going forward. We ended the year with strongest pipeline in many years with both institutional broker dealers and in the RIA space. We continued to onboard these new clients each quarter and to build the future pipeline. Across the industry consolidation is helping make Pershing's open architecture increasingly attractive to our clients. We're accelerating investments in the advisory segment, strengthening market leadership in the broker-dealers segment and continuing the development of front-end technology, including integration with third-party providers to deliver state-of-the-art experiences and analytics to advisers and investors. All of these are making us an even better partner to our clients.

In clearance and collateral management, where we are the clear leader, we delivered strong financial performance in 2019. We saw organic fee growth over the course of the year, driven by existing clients and new business, as well as clients on-boarded in 2018, they will increase their business with us. We see continued growth opportunity in this business from structural and regulatory changes, that provision our services to bilateral repos and for modernizing our platform to give our clients the ability to seamlessly move their collateral globally. We are enhancing our platform to allow clients have access to more real-time data and self-service tools. We also continue to automate manual processes to reduce risk and improve operational efficiencies, and we are improving the client experience by introducing new digitally enhanced capabilities.

In issuer services, we're building our capabilities which is broadening our relationships. We gained market share in corporate trust and drove new business across a number of our key products, such