BNY Mellon CFO backs 20% year-over-year growth in net interest revenue for FY23

BNY Mellon CFO Dermot McDonogh said on the company’s Q2 earnings call: “I will close with a few comments on our current financial outlook for the second half of the year. Number one, our net interest revenue outlook for the full year ’23 remains unchanged for 20% growth year-over-year. This is based on market-implied forward interest rates towards the end of the quarter. We are pleased with our net interest revenue trajectory and balance sheet management year-to-date, but mindful that we are operating in a very uncertain environment with continued rate volatility and higher for longer rate market backdrop and uncertainty surrounding meaningful U.S. treasury issuance in the coming months. Number two, we are ahead of plan when it comes to executing on our efficiency efforts. We remain focused on outperforming our target of 4% expense growth excluding notable items for the full year ’23 and will work hard to drive this closer to 3% in the coming months. While we expect the operating environment to continue to weigh on fee growth relative to what we expected at the beginning of the year, our progress on the expense side continues to give us confidence in our ability to deliver positive operating leverage this year. Number three, we still expect to return 100% of our earnings or more to our shareholders over the full year while continuing to position ourselves conservatively with respect to our capital levels, considering the amount of operating uncertainty.”