The Bank of New York Mellon Corporation (NYSE:BK) Q4 2019 Earnings Conference Call - Final Transcript
Jan 16, 2020 • 08:00 am ET
of the securities portfolio reprices each quarter. We will continue to actively focus on growing deposits, optimizing the mix between on and off balance sheet offerings, and being disciplined about pricing.
The Fed actions to increase excess reserves should be helpful as they've been historically correlated to the level of our deposits, just to keep in mind that the relationship may not hold in the short run or in any given quarter. We would expect that investment and other income would be between $25 million to $35 million per quarter for the year. With regard to expenses, Todd spoke about the importance of consistently investing in technology. We expect that the level of technology investment will be up from 2019. We can calibrate the pace of that investment if we need to. This will lead our overall expenses for the full year of 2020 to increase by up to 2% year-on-year, excluding the notable items. Included is approximately 50 basis point impact from accounting related to higher pension expense.
Now keep in mind that the charge we took in the fourth quarter for severance reflects the actions that will take place over the year, so we won't see the full run rate impact until 2021. And note that in the first quarter, staff expenses will be impacted by the acceleration of long-term incentive compensation expense for the retirement of eligible [Phonetic] employees, the impact of which will be similar to last year and will effect sequential expense growth. At this point, we currently expect the full-year 2020 effective tax rate will be approximately 21%. And lastly on the regulatory front, we are quickly entering this year's CCAR process and are awaiting next steps on the capital reform proposals. We continue to be encouraged by the direction of the proposals being discussed, but we'll all see the final outcome and impact when they are complete.
With that, operator, can you please open up the lines for questions?