BNY Mellon says NIR still stronger than anticipated, expects up 12% in Q4

Speaking at the Goldman Sachs 2022 US Financial Services Conference, BNY Mellon’s CFO Emily Portney said that, "our transaction activity is very healthy, and obviously, short-term interest rates continue to rise. So, with 3 weeks left in the quarter and assuming that market is more or less still steady where they are, we’d expect fee revenue for the fourth quarter to be flat to slightly down year-on-year, which would mean that fee revenue, overall, for the year will be roughly flat to last year. In terms of NIR, it continues to be stronger than we had anticipated… For the fourth quarter, we now expect NIR to be up about 12% sequentially. And what the pie for the year would be NIR north of 30% year-on-year. As far as expenses, excluding notable items, we intend, or we expect, expenses to be up about 1% sequentially. And that would imply that we are going to land the plane very much as we had suggested in the last earnings call, so the lower end of the 5% to 5.5% range year-on-year that we are driving… we’ve been very proactively managing our securities portfolio really to retain flexibility and optionality."