DEAR FELLOW
SHAREHOLDERS,
Last year, BNY’s 240th anniversary in business, was an exciting moment where we doubled down on execution. Building on the solid foundation we laid in 2023, we accelerated the pace of our ongoing transformation and closed out 2024 with a strong performance, delivering record net income of $4.3 billion on record revenue of $18.6 billion and generating a return on tangible common equity of 23% for the year.1
Two years ago, near the start of my tenure as CEO, I wrote to you that our company had yet to realize its inherent promise and potential.
We benefited from a legacy handed to us by our predecessors: a collection of terrific businesses and a client franchise that would be the envy of any company. But I think it is fair to say that we had not played our hand as well as we could have.
In that same letter, I detailed some of the reasons: We had largely operated in silos, particularly following a series of mergers over several decades. We had not taken advantage of the complementary, adjacent nature of our businesses. We had not shown our clients the breadth of what we could do for them. And importantly, partly due to how we operated and partly due to cultural factors, our people had yet to experience what we could be as one truly unified company.
The leadership team has been determined to address these challenges and make more of the opportunity provided by our clients, our business and our culture. Those three things, coupled with our central role in global financial markets and the trust in our brand, created the underpinnings for our future.
One important additional insight that came from our strategy work was that we have several businesses that are more akin to a true financial platforms company. This became a guide for both our approach to delivering client solutions and organizing ourselves. We have started to become more for our clients by reimagining how we serve them and found initial opportunities to run our company better through the beginnings of an operating model evolution.
We are humble about the work ahead, and I consider complacency the enemy of progress. Still, there’s an increasingly noticeable difference in the pace and determination of the company when I enter our offices each day, and I hear that same sentiment from our people, clients and many of you, too.
There has been no single silver bullet; rather, we’ve committed to our strategic pillars — to be more for our clients, run our company better and power our culture, each derived from our early strategy work and the thesis that evolved from it. We’ve continued to lay the foundation and execute against that strategy with an increasing pace. Underscoring all of this has been a cultural transformation as we have increasingly come together as one BNY.
Each of these factors is essential to our progress and our improved financial performance to date. I will share specifics of how we’ve done this in 2024 — and intend to continue to do so in the future — in the sections that follow.
1 Return on common equity was 11.9% for the year. Return on tangible common equity is a non-GAAP measure.
DEAR FELLOW
SHAREHOLDERS,
Last year, BNY’s 240th anniversary in business, was an exciting moment where we doubled down on execution. Building on the solid foundation we laid in 2023, we accelerated the pace of our ongoing transformation and closed out 2024 with a strong performance, delivering record net income of $4.3 billion on record revenue of $18.6 billion and generating a return on tangible common equity of 23% for the year.1
Two years ago, near the start of my tenure as CEO, I wrote to you that our company had yet to realize its inherent promise and potential.
We benefited from a legacy handed to us by our predecessors: a collection of terrific businesses and a client franchise that would be the envy of any company. But I think it is fair to say that we had not played our hand as well as we could have.
In that same letter, I detailed some of the reasons: We had largely operated in silos, particularly following a series of mergers over several decades. We had not taken advantage of the complementary, adjacent nature of our businesses. We had not shown our clients the breadth of what we could do for them. And importantly, partly due to how we operated and partly due to cultural factors, our people had yet to experience what we could be as one truly unified company.
The leadership team has been determined to address these challenges and make more of the opportunity provided by our clients, our business and our culture. Those three things, coupled with our central role in global financial markets and the trust in our brand, created the underpinnings for our future.
One important additional insight that came from our strategy work was that we have several businesses that are more akin to a true financial platforms company. This became a guide for both our approach to delivering client solutions and organizing ourselves. We have started to become more for our clients by reimagining how we serve them and found initial opportunities to run our company better through the beginnings of an operating model evolution.
We are humble about the work ahead, and I consider complacency the enemy of progress. Still, there’s an increasingly noticeable difference in the pace and determination of the company when I enter our offices each day, and I hear that same sentiment from our people, clients and many of you, too.
There has been no single silver bullet; rather, we’ve committed to our strategic pillars — to be more for our clients, run our company better and power our culture, each derived from our early strategy work and the thesis that evolved from it. We’ve continued to lay the foundation and execute against that strategy with an increasing pace. Underscoring all of this has been a cultural transformation as we have increasingly come together as one BNY.
Each of these factors is essential to our progress and our improved financial performance to date. I will share specifics of how we’ve done this in 2024 — and intend to continue to do so in the future — in the sections that follow.
1 Return on common equity was 11.9% for the year. Return on tangible common equity is a non-GAAP measure.
LOOKING BACK
ON 2024
BE MORE FOR
OUR CLIENTS
Our teams recognize that it’s all about our clients. The health of any business depends first and foremost on providing consistent and excellent service that enables client acquisition, client retention and ultimately business growth.
When we defined our strategy, we knew client obsession needed to be central to our DNA. Given the important role we play in the global financial system, we have long had the privilege and responsibility of working with a significant majority of the leading financial institutions, pension funds, governments, insurance providers and more. These clients often tell us that they trust us immensely, which is evident in the fact that many have been in business with us for decades.
We realized that even with this great starting advantage, we were not doing enough to deliver our platforms holistically to our clients. It became our mission to determine how to unlock growth by doing more business with existing clients. We see this as our biggest opportunity for growth, and our value proposition is simple: With industry-leading positions across most of our business lines, our platforms enable us to support clients as a comprehensive solutions provider.
BREADTH OF OUR CLIENT FRANCHISE
92%
of Fortune 100
companies
94%
of the Top 100
investment managers
95%
of the
Top 100 banks
Sources: Fortune 100: For 2024, Fortune, Time Inc. ©2024; Investment Managers: Pensions & Investments, worldwide institutional assets under management as of December 31, 2023, P&I Crain Communications Inc. ©2024; Banks: S&P Global, world’s largest banks by assets* as of December 31, 2023, ©2024 S&P Global; client penetration assessment based on positive 2024 revenue with client company or parent/holding company.
*According to S&P Global, company assets were adjusted on a best-efforts basis for pending mergers, acquisitions and divestitures as well as M&A deals that closed after the end of the reporting period through March 31, 2024. To be eligible for inclusion in pro forma adjustments, the amount of assets being transferred had to be at least $1 billion, unless otherwise noted. Assets reported by non-U.S. dollar filers were converted to dollars using period-end exchange rates. Total assets were taken on an “as-reported” basis, and no adjustments were made to account for differing accounting standards. The majority of the banks were ranked by total assets as of December 31, 2023, and the data was compiled April 5, 2024.
That led us to the creation of our Commercial Office, and subsequently, to update our commercial model. Last year we developed a streamlined approach to client service that centralizes account planning and management and ultimately encourages our teams to be more front-footed and proactive about connecting the dots across the enterprise to deliver the power of one BNY to our clients. Accountability and innovation are important elements to this reimagining of our approach to client coverage.
Our commercial model is designed to deliver companywide solutions to clients at an accelerated pace, improve the client experience and ultimately deepen relationships. We remain focused on fueling growth by deepening our relationships with existing clients while also winning business with new clients and increasing our market share. This is an ongoing evolution, and while we are in the early days of the new model, we are beginning to see green shoots as we capitalize on synergies across businesses. The number of strategic multi-line-of-business enterprise clients has grown by over 20% over the past two years, and sales with clients who bought from three or more lines of business have grown more than 30% year-over-year.
At the same time, we want to improve how we adapt and innovate to ensure our products and services anticipate client needs, bridging gaps where necessary. Delivering and bundling solutions that leverage the power of our capabilities is an important way for us to drive top-line growth.
Our acquisition of Archer last fall is a good example of BNY becoming an end-to-end provider — in this case, across the entire managed account ecosystem, be it manufacturing in BNY Investments, distribution through BNY Pershing or servicing through Archer. It also ensured we could be full-service across the three wrappers of mutual funds, ETFs and separately managed accounts. The transaction also represented an important test for our new operating model: onboarding Archer as a platform would provide capabilities across Asset Servicing, Investments and Pershing. Buying it once to serve the whole company, shedding the historical silo mentality.
Throughout 2024, we also developed numerous new client solutions, such as CollateralOne, AltsBridge, Virtual Account-Based Solutions and three new products on our Wove platform for wealth advisors. Continued product innovation will be an important investment in the years to come.
MARKET POSITIONS
Securities Services
#1
Global Custodian1
#1
Global provider of Issuer Services2
Market and Wealth Services
#1
Clearing firm for broker-dealers and Top 3 RIA Custodian3
#1
Global provider of Clearance and Collateral Management4
TOP 5
Global U.S. dollar
payments clearer5
Investment and Wealth Management
TOP 15
Global Asset Manager6
TOP 10
U.S. Private Bank7
1 Ranking based on latest available peer group company filings. Peer group included in ranking analysis: State Street, JPMorgan Chase, Citigroup, BNP Paribas, HSBC, Northern Trust and RBC.
2 Full-year 2024 figures by deal volume and count referenced herein include long-term program and stand-alone bond issuance in markets where BNY actively participates and for which public trustee and/or paying agent data is available. Sources include: Refinitiv, Dealogic, Asset-Backed Alert, Concept ABS and Artemis. Depositary Receipts ranked #1 based on market share sourced from BNY internal analysis.
3 LaRoche Research Partners, “Clearing Firm Customer Composition 2024,” based on number of broker-dealer clients. Registered Investment Advisor rankings sourced from “The Cerulli Report, U.S. RIA Marketplace 2024,” Cerulli Associates.
4 Finadium market analysis as of July 2024.
5 The Clearing House. Based on CHIPS volumes for the year ended December 31, 2024.
6 Pensions & Investments, October 21, 2024. Ranked by total assets under management as of December 31, 2023.
7 Based on company filings and "The Cerulli Report, U.S. Private Banks & Trust Companies 2024." Ranked by Wealth Management assets under management as of December 31, 2023.
RUN OUR
COMPANY
BETTER
As we took stock of our company two years ago, it became apparent that BNY was not operating as efficiently or effectively as it could. We took inspiration from other industries, and though there is no perfect solution, we realized that any organizational model should be aligned with the inherent nature of the business that it serves.
From this mentality arose the Platforms Operating Model, a carefully sequenced, multiyear transformation initiative. We decided to unite capabilities and better organize ourselves around the products and services we deliver to the market, so we could do things in one place, and do them well. By simplifying, streamlining and collaborating through cross-functional teams, we’re able to create more intuitive client journeys, improve our ability to anticipate unmet needs and accelerate speed to market across the firm. The first two years in our platforms journey, 2022 and 2023, were centered on design and testing. This is something we should do only once. In 2024, we began execution in earnest and transitioned approximately one-quarter of the company into the new model. As we progressed, we learned and adjusted, and in 2025 we will transition the majority of the company into our new way of working.
The Platforms Operating Model is a significant initiative, but it is a means to an end, aimed at simplification and increased velocity; a contributor to top-line revenue growth as well as expenses and efficiency. It is, however, just one change, albeit an important one. Beyond the operating evolution, we recognize that we must also invest in growth, scalability and further efficiency. Over the course of 2024, we increased our investments in new client solutions, technology and our people, and we generated approximately half a billion dollars of efficiency savings by continuing to digitize workflows and leveraging the initial benefits of artificial intelligence (AI).
AI is a catalyst for transformational change — maybe as profound as the first commercialization of electricity. We see enormous potential in AI across all three of our strategic pillars. New solutions for clients, significant step-function changes in efficiency and more machine-leverage for our people.
We are early in the journey, despite the investment so far. In 2023, we launched an AI Hub and spent the past year building and refining our capabilities. The platform is designed to be general-intelligence-model agnostic, supports multi-agentic functionality and serves as a foundation for our digital employees of the future. Of the hundreds of use cases our employees have generated, we now have over 40 AI solutions in production, touching almost every part of what we do at our company.
Today, our AI Hub is promoting a capability-driven approach, creating AI-enabled solutions, deploying them across the company and educating our people on how to use them thoughtfully and responsibly so they can experience tangible outcomes. It’s worth repeating the premise here: It is early, but we see great opportunity.
POWER OUR
CULTURE
Underscoring everything else, we have started to foster a high-performing culture that thrives on client obsession and ownership, centered around our updated company principles.
Celebrating our company’s 240th anniversary in 2024 with colleagues, clients and many other stakeholders around the world felt even more special at a moment when our people could start to see their hard work leaving a positive mark on this iconic institution. Considering the transformation underway at our company, we decided that the time was right last summer to simplify and modernize our brand and logo to “BNY” to improve the market’s familiarity with who we are and what we do.
The benefits of our improved visibility in the market have also supported our recruiting efforts to attract top talent at every level. We see early-career recruitment as essential to the future of our company and have taken an intentional approach to attracting the best and brightest people from around the world. Three years ago, we had a minimal presence on campuses. Today we have a highly competitive, award-winning intern and analyst program. In 2024, we doubled the number of interns and analysts at BNY for the second consecutive year.
In parallel, we significantly raised the bar on what leadership looks like at BNY. At the top of the house, we further rounded out our executive leadership team and introduced a more rigorous selection process and expectations for managing directors, who act as force multipliers for our strategy. And throughout the company, we’ve reinforced the fact that everyone, regardless of role or level, has the potential to lead by role-modeling our company principles and working to bring their teams and colleagues along on the journey.
To support our ability to recruit and retain the very best talent, the targeted investments we’ve been making in the employee experience across development opportunities, benefits and facilities are being recognized and valued by our people. These range from our technology-enabled learning and feedback platforms to our industry-leading suite of mental health and well-being benefits.
FINANCIAL RESULTS
Our progress against each strategic pillar helped us improve our overall performance throughout the year. We were pleased that in 2024, we delivered strong performance against our financial goals for the year. Taken together, significant positive operating leverage resulted in pre-tax margin expansion and improved profitability, and we delivered attractive capital returns to our shareholders, all of which underscored the execution of a reinvigorated BNY.
Global Reach
and Scale
$52.1T
Assets under custody and/or administration1
$2.0T
Assets under
management2
$16.3T
Average daily
clearance value3
$5.4T
Average triparty
balances3
$2.4T
Average daily U.S. dollar
payment value3
$327B
Wealth Management
client assets4
1 As of December 31, 2024. Consists of assets under custody and/or administration (“AUC/A”) primarily from the Asset Servicing line of business and, to a lesser extent, the Clearance and Collateral Management, Issuer Services, Pershing and Wealth Management lines of business. Includes the AUC/A of CIBC Mellon Trust Company, a joint venture with the Canadian Imperial Bank of Commerce, of $1.8 trillion at December 31, 2024.
2 As of December 31, 2024. Represents assets managed in the Investment and Wealth Management business segment.
3 Average for the year ended December 31, 2024.
4 As of December 31, 2024. Includes AUM and AUC/A in the Wealth Management line of business.
Last year, we communicated a strong value proposition for our clients, our shareholders and our people. We set medium-term financial targets to improve pre-tax margin and expand profitability and made solid progress against them in 2024. We believe we are on the right path toward our goal of consistently meeting or exceeding our targets through the cycle, both firmwide and for each of our three business segments:
Securities Services: We made progress over the past year in going after inefficient processes and reducing the cost to serve, driving down unit costs by roughly 5% per custody trade and by roughly 15% per NAV in traditional fund services over the year, for example. We have also invested in uplifting our platforms and deepening client relationships to drive top-line growth. This combination has resulted in an improvement in pre-tax margin for the segment from 25% in 2023 to 29% in 2024, representing solid progress as we aim to generate equal to or greater than 30% pre-tax margin in this segment over the medium term.
Market and Wealth Services: Our fastest-growing and highest-margin business segment, including our BNY Pershing, Treasury Services and Clearance and Collateral Management businesses, has grown to represent approximately half of BNY’s profits. We most recently reported a 46% pre-tax margin last year, in line with our medium-term target of roughly 45% pre-tax margin for this segment. Here, we are focused on accelerating growth through deliberate investments, including in wealth technology, real-time payments and the future of collateral and liquidity, while not compromising on profitability.
Investment and Wealth Management: Our focus over the past year, in a combination of growth and efficiency initiatives, led to an improvement in pre-tax margin from 12% in 2023 to 18% in 2024. We recognize we have more work to do to reach our pre-tax margin target of equal to or greater than 25% over the medium term, but we remain excited about the opportunity to unlock distribution capabilities from across BNY and expand products and solutions, including integrated solutions from across our lines of business.
Medium term refers to a 3-5 year time horizon.
FEE REVENUE GROWTH
2024 vs. 2023
PRE-TAX MARGIN EXPANSION
2024
MACROECONOMIC
OUTLOOK
Looking ahead, it’s more apparent than ever that economic growth matters. Growth is essential for progress; it fuels prosperity, and it pays for the choices and services that define the identities of nations. A vibrant capital market, supported by a strong financial sector, is the foundation of a robust economy, and enabling it is a very solid investment for any country to make.
The United States entered 2025 in a position of relative strength. The U.S. benefits from a resilient consumer base, a robust labor force, energy independence and burgeoning technological leadership. Its economy has outpaced other regions over the past decade and the new administration seems determined to accelerate the progress already made.
Growth is, however, a competitive sport. Globally, there are early signs of economic recovery in parts of Asia and a renewed focus on growth in the United Kingdom and European nations. But it is still early days. This path of divergence is likely to persist in the near term, but there is plenty of global opportunity for broad economic success. Nearly 40% of our business is international, and we are in the import-export business of financial services: serving our global clients, helping U.S. clients succeed internationally and helping international clients bring business and investment to the U.S.
As we navigate a changing economic landscape under new leadership in the U.S. and in many other nations around the world, this elevation of the growth agenda across both the public and private sectors should serve as a constructive operating backdrop for global financial services companies like BNY, and it is one we welcome. While I am cautiously optimistic about the outlook for the U.S. economy and capital markets, we must remain humble and acknowledge risks, including ongoing uncertainties and headwinds, continued growing fiscal challenges, geopolitical conflicts, the lingering effects of inflation and the complexities surrounding prospective policy actions.
2025 AND FORWARD
BNY has proudly stood at the heart of the American financial system since its inception, and our international footprint has played an important role in global capital markets for over a hundred years. Today, overseeing more than $50 trillion in assets — the first bank in history to do so — BNY stands ready to assist clients in navigating and benefiting from the next phases of growth around the world, while also helping them prepare for a range of outcomes.
As a company, we are positioning ourselves to capitalize on several megatrends in the industry while remaining equally focused on continued execution against our strategic initiatives and, ultimately, driving results.
In 2025, with our strategy set, we intend to accelerate the pace of execution across each of our priorities. This is not a trivial undertaking, but we can see the path.
Effectively cross-selling and leveraging the breadth of our business platforms is the single most compelling growth opportunity for the company. This year will be the first full year of our new commercial model, and we need to seize the moment to do more business with existing clients, gain new ones and continue to strengthen product offerings.
Through the combination of increasing the scope and value of client relationships, both existing and new, while also scaling growth investments and finding opportunities to fill gaps in the market, we are showing up differently for clients, with opportunities for fee growth and revenue generation guiding our path forward.
We will also continue to build momentum toward simplifying how we run our company. By year-end, around 80% of our people around the world will work in our Platforms Operating Model, representing an important milestone. We believe that our transition will have a meaningful impact on BNY over the years to come — both financially and culturally — as will the growing adoption and investment into AI.
Our people remain the key to advancing our ambitions. This year is about leaning into teamwork — while continuing to raise the bar on talent and performance. We are pushing ourselves to be nimble and faster while working to make BNY feel smaller, special and human.
We can do more when we work together, and we want to build a culture where teams can collaborate more seamlessly each day with fewer barriers across businesses and regions. Where appropriately questioning the status quo is encouraged to spark progress. Where we accept that no one has all the answers, and we all remain on a continuous learning journey. Where people are proud and excited to come to work each day because they feel a real sense of community and belonging. And where we see ourselves truly pulling together as one BNY.
MEGATRENDS
CAPITAL MARKETS ACTIVITY
We’re optimistic that policy in the U.S. and greater collaboration across the public and private sectors will help drive more investment, loans and growth — resulting in higher trading volumes, enhanced investment opportunities as well as more equity, debt and activity in the system. Across our company, we create, administer, distribute, optimize, manage and transact assets, and so this changing environment presents tailwinds for our revenue and fee growth. Some of our fastest-growing businesses — Treasury Services, Clearance and Collateral Management, and Corporate Trust — demonstrate our gearing toward higher activity and greater volumes.
CONTINUED SHIFT TOWARD PRIVATE MARKETS
Private market assets under management (AUM) is projected to grow at more than double the rate of public assets over the next several years, which is being driven by a few catalysts: the trend for companies to stay private for longer and public companies opting to privatize, as well as regulatory trends. We are a leading service provider for fund management and administration in public markets, and the logical next step for us is to support our clients with these same capabilities with a private- market wrapper. We see significant opportunities to support our clients end-to-end — from servicing to distribution, cash investment, FX hedging and lending — and across traditional and alternative asset classes. The integration of public and private markets is a related trend, and we believe this may favor large more integrated players who can service across the spectrum of asset types, irrespective of the form or type of wrapper.
GROWTH IN THE U.S. WEALTH MARKET
The U.S. wealth market is one of the fastest-growing segments in financial services. With the growth of the market also comes increased complexity as clients seek to navigate the often confusing regulatory and compliance environment. Through our Pershing and Wealth businesses, we’re a leader in serving this growing segment. Our Wealth business is focused on the faster-growing ultra-high-net-worth space while our Pershing business leverages the size and scale of our platforms to power advisors’ businesses, helping them navigate evolving client needs.
NEW INVESTMENT VEHICLES
Amid rapid technological advancements, investors are increasingly seeking out new asset classes, additional transparency and more personalized solutions at lower cost. Digital assets are just one example of a new investment vehicle in which we see significant long-term potential. As early adopters, we have focused on digital assets and tokenization, emphasizing regulatory clarity for innovation and client safety. Last year, we saw the mass adoption of digital asset exchange- traded products in the U.S., which grew to more than $100B in AUM in less than a year. We now provide fund services for the vast majority of these products in the U.S. and Canada.
SCALING WITH TRUSTED PROVIDERS
Twenty years ago, a company might have seriously considered building a proprietary email or operating system in-house. Today, they prefer using established technology suites and scaled platforms rather than expending capital on their own systems, so they can focus on revenue- generating solutions and client benefits. We each choose partners to allow us to focus on what makes us special. As global markets evolve and become ever more complex, both buy-side and sell-side firms are looking to outsource certain functions and consolidate providers to gain scale and reduce risk, and the strength and connectivity of our platforms are true differentiators.
CAPITAL MARKETS ACTIVITY
We’re optimistic that policy in the U.S. and greater collaboration across the public and private sectors will help drive more investment, loans and growth — resulting in higher trading volumes, enhanced investment opportunities as well as more equity, debt and activity in the system. Across our company, we create, administer, distribute, optimize, manage and transact assets, and so this changing environment presents tailwinds for our revenue and fee growth. Some of our fastest-growing businesses — Treasury Services, Clearance and Collateral Management, and Corporate Trust — demonstrate our gearing toward higher activity and greater volumes.
GROWTH IN THE U.S. WEALTH MARKET
The U.S. wealth market is one of the fastest-growing segments in financial services. With the growth of the market also comes increased complexity as clients seek to navigate the often confusing regulatory and compliance environment. Through our Pershing and Wealth businesses, we’re a leader in serving this growing segment. Our Wealth business is focused on the faster-growing ultra-high-net-worth space while our Pershing business leverages the size and scale of our platforms to power advisors’ businesses, helping them navigate evolving client needs.
CONTINUED SHIFT TOWARD PRIVATE MARKETS
Private market assets under management (AUM) is projected to grow at more than double the rate of public assets over the next several years, which is being driven by a few catalysts: the trend for companies to stay private for longer and public companies opting to privatize, as well as regulatory trends. We are a leading service provider for fund management and administration in public markets, and the logical next step for us is to support our clients with these same capabilities with a private- market wrapper. We see significant opportunities to support our clients end-to-end — from servicing to distribution, cash investment, FX hedging and lending — and across traditional and alternative asset classes. The integration of public and private markets is a related trend, and we believe this may favor large more integrated players who can service across the spectrum of asset types, irrespective of the form or type of wrapper.
NEW INVESTMENT VEHICLES
Amid rapid technological advancements, investors are increasingly seeking out new asset classes, additional transparency and more personalized solutions at lower cost. Digital assets are just one example of a new investment vehicle in which we see significant long-term potential. As early adopters, we have focused on digital assets and tokenization, emphasizing regulatory clarity for innovation and client safety. Last year, we saw the mass adoption of digital asset exchange- traded products in the U.S., which grew to more than $100B in AUM in less than a year. We now provide fund services for the vast majority of these products in the U.S. and Canada.
SCALING WITH TRUSTED PROVIDERS
Twenty years ago, a company might have seriously considered building a proprietary email or operating system in-house. Today, they prefer using established technology suites and scaled platforms rather than expending capital on their own systems, so they can focus on revenue- generating solutions and client benefits. We each choose partners to allow us to focus on what makes us special. As global markets evolve and become ever more complex, both buy-side and sell-side firms are looking to outsource certain functions and consolidate providers to gain scale and reduce risk, and the strength and connectivity of our platforms are true differentiators.
UNLOCKING
OPPORTUNITY
To summarize our company’s trajectory: 2023 was about foundation-setting, 2024 was about accelerating the pace and 2025 represents the moment where we really begin to unlock the opportunity.
We are still early in our journey and much of our work today is for the future. As we look ahead, we will continue to work hard to deliver for our clients, our people and all of you, our valued shareholders, guided by our strategy and with a laser-focus on consistent execution.
Thank you for your ongoing support and conviction in all we can be as a company.
We look forward to taking the next steps of this journey together. We’re just getting started.
ONWARD,
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
(a) Results for the year ended and balances at Dec. 31, 2023 were restated to reflect the retrospective application of adopting new accounting guidance in 2024 related to our investments in renewable energy projects (ASU 2023-02).
(b)Return on tangible common equity, a Non-GAAP measure, excludes goodwill and intangible assets, net of deferred tax liabilities. See “Supplemental information – Explanation of GAAP and Non-GAAP financial measures” beginning on page 115 for a reconciliation.
(c) Adjusted (Non-GAAP) measures exclude notable items. See “Supplemental information – Explanation of GAAP and Non-GAAP financial measures” beginning on page 115 for a reconciliation.
(d) Consists of AUC/A primarily from the Asset Servicing line of business and, to a lesser extent, the Clearance and Collateral Management, Issuer Services, Pershing and Wealth Management lines of business. Includes the AUC/A of CIBC Mellon Trust Company, a joint venture.
(e) Represents assets managed in the Investment and Wealth Management business segment.
(f) For our CET1, Tier 1 capital and Total capital ratios, our effective capital ratios under U.S. capital rules are the lower of the ratios as calculated under the Standardized and Advanced Approaches, which for December 31, 2024 was the Standardized Approach, and for December 31, 2023 was the Advanced Approaches.