The Bank of New York Mellon Corporation (BNY) Earnings Call Transcript & Summary

All right. Well, welcome, everyone. Good afternoon, now, I can say.

Good afternoon.

Pleased to be joined by Emily Portney from BNY.

Happy to be here.

Of course, Global Head of Asset Servicing, the biggest business for BNY. And I wanted to start 2 years ago, you became the Head of Asset Servicing, right, which is, of course, the largest business, as I said. And before that, you served as CFO of the firm. And there was a medium-term target laid out to get pretax margin up, right, was at roughly 20%, and you wanted to be 30% or more. And, lo and behold, last year, we hit 29%.

I like the "we".

Okay. The royal "we". Yes. Yes, sure. I don't even know if I use that term correctly, but whatever. So what do you see as the major components or pieces of differentiation that allowed for you to drive that margin up so high?

So first of all, thank you so much for having us, and it's great to be here again. First, yes, you're right, in '20, I think as it was December of 2021, I happened to have been CFO. And we did lay out what we're ambitious but very realistic targets for the margin of the Securities Services, just remember, it's a Securities Services segment. And that's not just Asset Servicing, but also Issuer Services. And we said at that point, we'd like to get it from what was about 20% to closer to 30%, through the cycle. But more important than the actual number and target is just really what's behind that. And actually what's behind the performance because, as you rightfully said, we've gotten to 29% in 2024, which is great. And it's really all about execution, both on the top line, as well as what I call the bottom line or the expense line. And in terms of fees in the top line, look, we are winning in the marketplace. And it's off the back of investments that we're making, some of which I know we're going to talk about today. Also de-siloing the firm and actually delivering on the whole firm, bringing businesses together to better solution for clients. We are not just a trust bank. We have many assets under the BNY umbrella. As you know, our Pershing platform, wealth tech, the distribution, the power of that distribution, it reaches thousands of RIAs, so clear of U.S. government securities, largest global collateral manager, et cetera, et cetera, the list goes on. So we've got many different assets. And one of the things we are doing to drive fee growth is to stitch those things together to solution for our clients, and that just elevates the conversation. In terms of expenses or what I would call the bottom line or expenses, yes, we're very focused on expense discipline, but make no mistake, we are investing. In fact, we are investing more today than we were 2 years ago, and it's just about being smarter, being more targeted, prioritizing better to really drive those superior outcomes. But doing all that while we're also gaining efficiency and gaining scale, whether it be by automation, digitization or for that matter, leveraging new technology. So really, it's about day in and day out execution.

Got it. Got it. When I was prepping and starting to pull together the questions for this, I was going through my model and '24 was pretty awesome. Like fee revenue growth in your business, 6%. You got to go back a decade, right? It's really, really quite good. So I'd love for you to maybe unpack a little bit about strength, primary contributors to the growth and what you plan to do to sustain momentum in the business.

Sure. So we're very proud of the growth. The fact that everything we are doing in execution is coming through in the numbers, actual results. I do think the momentum is sustainable. So in part, to answer your question. And it's very much both in the what as well as the how. In terms of the what -- some of it goes back to some of the things I already just mentioned. So really de-siloing the company, talking about and delivering solutions for clients across it again, if you think about, the entire life cycle of a transaction. And again, based on our assets, we can offer holistic and integrated solutions across manufacturing, servicing and distribution that is presenting a different value proposition to our clients. It's really unlocking and empowering them to get more efficient and to grow, to increase their AUM. So it's all about that. But it's also then just about the how. And with the how, I would highlight things like data, like discipline, like basic blocking and tackling. So, we now have a Chief Commercial Officer, Cathinka Wahlstrom. She's wonderful. She's been in seat about just under 2 years. And she's really brought together an entire community. All of our salespeople really are now seen as 1 community. We have a lot more data and discipline around account planning, around senior engagement, just around the opportunities that are coming in the next, call it, 6 months, 9 months, 12 months, even 24 months and how you engage early, you engage often and again, how you're solutioning and thinking about it across the firm. We're leveraging data also much more, again, holistically to think about client sentiment. That's all extraordinarily important. When you think about retention, and it's always easier to retain a client than to acquire a new one. And then it's a lot of the blocking and tackling, which I help to control what I call the back door or revenue leakage. So think repricing or billing. Are you just getting the bills about on time? Are you billing for everything that you should be billing for? Time to monetize the revenue, so time from win to actually hitting the ledger. One of the great examples, I think, in 2024 of all of these things working and just showing the power of the franchise and our execution was our win of WisdomTree. It was a full takeaway from a competitor. WisdomTree, if you don't know, a very large global ETF provider. It started as an Asset Servicing conversation, but it very quickly became a holistic firm-wide enterprise conversation and enterprise solution. So really administering and doing all their indexing in our Investment Management business in BNY Advisors. It was all about distribution and the shelf space we can offer on Pershing. It was all about, if you know anything about WisdomTree, they're incredibly innovative and they're doing interesting things in the digital asset space, in the payment space with their own wallet. So again, we brought to bear our great expertise in both Digital Assets and Treasury Services. And it was that entirety of the proposition, the value proposition that pinched that. And on top of that, we onboarded the entirety of their U.S. franchise in less than 6 months.

So I don't know if you know this, but I cover WisdomTree. I didn't realize that, that win was so broad.

Yes. And that's part of why I highlight it.

Yes. No, no, no, that's super interesting. And you're right, they do have this prime thing, this blockchain native which a few years ago, I didn't know about, but now -- it could be interesting. Okay. AUC resilience. So, I hounded Marius about this a few weeks ago. But, fourth quarter, I was prepped up, you guys have a decent exposure to fixed income, right? So bag got hit in the 4Q, but yet, your AUC was remarkably resilient. So, what happened? Did you guys have some wins? Were there any notable dynamics plan through the fourth quarter?

Look, you said it, you're right. AUC/A in the fourth quarter, remarkably resilient. That was despite lower bond markets, despite the impact of a stronger U.S. dollar. But really, it was offset by growth in both new and existing activity. And some of that was very winning all the themes I already talked about, solutioning coming together, I won't repeat all of that. But the other thing I really would highlight here is that we are investing in and really executing on some of the areas of the business that are growing at a much faster pace, like double-digit growth. So think ETFs and ETF servicing. So we've been investing very consistently over the last several years. And I'd argue, have a market-leading capability as seen by our share. Alternatives, very competitive, however, we're making a lot of investments to actually become market-leading in the alts space. And again, we're doing things across the firm. We just announced Alts Bridge. Alts Bridge is actually providing a platform for managers to launch liquid alts products, again, to be distributed on the Pershing platform to retail investors. And of course, Asset Servicing will be servicing those products. And then finally, the managed account space, another area that's growing double-digit growth rates. And of course, we just recently announced the acquisition of Archer, preeminent player in that space, especially in the RMA, what I call the retail managed account space, and that's also a fantastic acquisition. So, all of those things are kind of behind the resiliency in our performance in our AUC/A. And Brennan, I am a recovering CFO. So, I would be missing a beat, if I didn't remind you that only 50% of our fees (sic) are based on market levels. Obviously, you've got 50% also based on transaction fees as well as account fees and of course, any pickup in trading activity helps that.

No, no, no, sure. The revenue side, right? Yes, Yes. I was -- of course, the revenue side too, but I was really AUC/A yes, of course. It's not just based...

Can't help myself, former CFO.

So, you touched on this a little bit when you're talking about WisdomTree, but I'd love to talk about ETFs and the success that you've had in ETFs. So, you speak to a next-gen platform and servicing capabilities. So, could you maybe walk me through what enhancements you made to the ETF offering and help us understand how big that business is and what your expectations are for going forward?

Sure. I mean, first, I'll just say the ETFs, in general, are growing at a double-digit growth rate. It's a very attractive wrapper, very attractive actually globally. Of course, in the U.S., it's more tax efficient, but even more broadly, globally, generally lower expense ratios, et cetera. So all of that driving double-digit growth in the ETF marketplace. We are clearly outpacing the growth in the market. At the end of last year, and I know we disclosed and shared this, our ETF AUC/A was up 60% year-on-year, just shy of $3 trillion in AUC/A for ETFs. The number of funds we serviced were up 20%. So again, very, very good growth. And we have been focused on investments in this space, seeing and knowing where the puck was going, we've been investing in that space over the last several years. We've been very focused on what I would call middle office capabilities and ETF servicing capabilities. So think it's stuff that's really aimed at the experience of both the fund sponsor and how it connects to and how we help the APs in the ETF ecosystem and much more specifically, it's providing like electronic tools that help facilitate, create and redeem processes. It's simplifying, basically rebalancing of the portfolio that has to happen every day. It's providing the AP with just better tools to have much more confidence in pretty much the execution of their hedging, their hedging strategies, et cetera. So, it's all of those things really coming together. And the only other thing I would just mention in the ETF space is we also happen to be the preeminent provider. We administer the vast majority of the digital asset ETPs that have been launched over the last, call it, 2 years. We're really, really proud of that. And we're only one of the very few institutions and perhaps the only bank that actually can custody digital assets literally ourselves.

How? I thought it was against the rules.

No, no, no. It's not. There were some SAB 121. There were regulatory and capital implications, but we have built the capabilities and ultimately, we're working very closely with our regulators. We obviously want to progress that business in a very safe and sound fashion, but we have all of the capabilities to do it ourselves and to do it in-house.

Nice. And the SEC just rescinded one of those rules, right?

Yes, it did. It did, indeed.

Okay, which is only going to make it easier, right? So okay. Interesting. Alts. Love to touch on alts, and actually, you touched on it a little bit before when you were talking about, I believe, the resilience and some of the tools you've developed you said that you can now help the alts providers actually launch products and rent outside. I'd love to hear a little more about that. But maybe before we drill into that detail, a big area of growth for BNY. I'd love to know how big it is within the Servicing business, if possible. And given the kind of bespoke nature of the beast here, how do you scale the alts efforts?

So alts is another area that is definitely benefiting from large secular growth trends. The way I think about it is, first of all, GPs, alts managers are just getting bigger. Traditional managers moving into the alts space. By the way, many managers still look and do the alts administration in-house, so that's a big area of opportunity, similar to what was 20 years ago in public markets. So over time, more and more of them are looking to also outsource servicing and administration for their alternatives funds. And so as it grows and then as outsourcing grows, it's obviously a tailwind for us. Likewise, asset owners, as we all know, are allocating a lot more to alternatives in private markets. And finally, I'd highlight, and it kind of goes back to Alts Bridge and just more broadly a trend in the marketplace, but liquid alts products are becoming much more -- we're all looking at interval funds and the like to access the retail market. So it's all of those 3 things coming together, which are really driving double-digit growth in alts. It is an area of investment, as you can imagine. A couple of things I'd highlight. So tech stacks, as you rightfully point out, are very fragmented in this space. The general ledgers that are used for real estate, different than credit, different than private equity and infrastructure. So, some of the investment is literally just trying to provide -- putting tools in place and data layers in place to provide a more seamless and integrated customer experience, irrespective of the ultimate tech stack that any part of the portfolio might be on. Look, we're also building tools to automate really messy and manual processes. And in the alts space think about it, it's like processing of fund expenses, processing -- it's basically fee and waterfall calculations, which could have hundreds of different nuances in all of those. It's the financial reporting. So it's tools around that kind of stuff, which is, I call the messy middle. And then finally, it's data. And data is critically important for the LPs. It's important for both GPs and LPs, but especially for the LP universe, as their allocations are increasing to alternative investments, they want to more and more see what we call and they often call the total portfolio view, which is looking and seeing their private and their public market investments all in one place and being able to do performance and attribution calculations all from one hymn sheet. And the last thing would go without saying -- I'll probably sound a bit like a broken record. But what I just said is really what we're doing in Asset Servicing, but it's all about what the firm is doing, too, and it goes back to the theme about solutions. And Alts Bridge, again, putting a platform connecting the dots of platform to help the asset manager launch, place a liquid alts product, I'll service it in Asset Servicing and in Pershing we'll distribute it to retail investors. I mean that, again, very unique capability that only BNY can really do. Corporate Trust, as you all know, we're the largest provider of issuer services. Therefore, a huge provider of administration services for loans and for structured debt. And more and more we're connecting that business and the tech capabilities there with everything we have in Asset Servicing. So, if we're administering the loan and that same loan shows up in a fund that for which I'm doing admin, I'm not getting the data from 2 different places. It's completely straight through. So again, I would just think about the synergies across the company.

Got it. Alts Bridge. So Alts Bridge, is that you guys put together interval funds themselves and then facilitate that? That's interesting.

And again, that's an enterprise platform. So it basically is -- and it's not quite live, but we've announced and but it's all about looking at it across the entirety of the firm. So of course, Asset Servicing can support and service those funds, but we have expertise in Investment Management, which actually can help to launch and to place those funds in the marketplace. And then in Pershing, you can actually distribute it. So it's literally the manufacturing, the servicing, the administration as well as the distribution all in 1 place at BNY.

So the alts managers don't need to have that capability at all, they just need the strategy and they can use, is that the idea?

Many of them will still, of course, have many avenues for distribution. Of course, this is probably going to be 1 of many.

Sure. Interesting. And then the fee rates and the profitability of that business, how does that stack up?

Needless to say that the fee rate for -- at least in the servicing side for alts is higher than what you call the more plain vanilla registered fund space commensurate with the complexity. But again, when we price business, we look at the entire bundle.

Yes, sure, sure. Okay. You guys have traditionally focused more on tools and services for GPs. You sort of referenced this before. You've talked about shifting more towards developing tools for LPs recently, right? So, I'd be curious probably the market drove that in demand, but I'm curious about your perspective on that? And what are some of the tools and services that you provide for LPs? And how big is the LP business versus the GP business at this point?

Well, as I said just before, LPs investing more and more in private markets. And I think currently, the total commitments of LPs to the alternative space is anywhere from $10 trillion to $15 trillion, and that's uncommitted, so will be drawn down, of course, over time. I travel a lot, get in front of clients a lot and whether it's medium size or large pension plans or DC plans, endowments, sovereigns, I mean the conversation with all of those asset owners is, oh, I'm taking my alts allocation from 2% to 5% or 10% to 20% or 25% to 50%. So, I mean that's what's happening. And by the way, asset owners more broadly, whether it is the endowment, the sovereigns, the pension plans, they are all clients, not all, of course, but many of them, the vast majority of them, I should say, are clients of BNY, many in our Institutional Accounting business. And so really, they're helping lead the way in terms of what investments to make because their portfolios, as I said, with the increase in allocation, they're just getting more complex. And so, they need more tools to help them really think about the complexity now of their portfolio. And so, some of the services that are aimed very specifically at LPs maybe versus the GPs is like thinking about we are investing in tools that help with enhancing the collection and digitization of GP statements. They all look different, et cetera. And so by virtue of ingesting them in a much more seamless way, if you will, or automated way. It just improves the accuracy and the timeliness of fund administration and reporting. We're doing a lot around subscription and redemptions in that process, which can be very difficult and very fragmented depending upon the manager with respect to actual markets activities and the management of a portfolio working with asset owners in our Markets businesses to help with portfolio rebalancing, hedging, execution, things of that nature. And then finally, it comes back to data and a lot of what we talked about. And we have a very extensive data management offering, and it really provides these asset owners with more transparency, accessibility and basically integration of their data with third-party data. So think FactSet, Morningstar, MSCI, Rimes. And we have all that connectivity. We've done all of the data mapping. So you can connect to us and have all of that and have your data connected. And how does that help an asset owner? Basically, it helps them to then leverage those services for performance and attribution, the total portfolio view I was talking about. It helps also with fund oversight. So as they have to report back to their own boards around concentration risk and geographic risk, and investment performance against ESG objectives. So a lot of it is also data and data management.

Got it. That's interesting. And I agree it's definitely growing. Sergio was just speaking yesterday -- I had a conversation with them and we're currently mid-single digit, and he thinks 15 mid-teens at least. So everybody's got a similar idea there. Archer. So you guys recently acquired Archer. As you said, RMA, I think that's the first time I've heard that term, normally, you swipe the S away, okay? It works though. So you guys have already noted a pickup in new client wins, which is great. Could you put a little bit more meat on the bone though and share some of the goals that you have set out for that business? And maybe how it fits into the overall product suite?

Sure. So we're really excited. We closed the deal on November 1. We've onboarded all of their clients. So managed accounts basically SMAs and UMAs, again, like ETFs, like alternatives, a wrapper that is growing double-digit growth rates. Why? It is the preferred vehicle to deliver model. It is a preferred vehicle to deliver tax optimization strategies. It is preferred vehicle to deliver more customization in both, the institutional space but more and more also in the retail space, and I think that's kind of Nirvana. The journey with Archer really started to fill a void in Asset Servicing. None of the large asset servicers really had the capabilities to service retail -- and that's where I get the word retail -- managed accounts at scale. I could do them in their money market funds, their mutual funds or ETFs, their private markets, but I couldn't really do the retail managed accounts. And like I said, that was what was growing. But make no mistake, very quickly as we started talking about Archer, it started within Asset Servicing, but we zoomed out, and we realized it was really about the entirety of the ecosystem. So, we're thinking, again, the firm much more across the enterprise. We had very good relationships with Archer already in our Investment Management business, where they were leveraging Archer to distribute their model. Pershing was already connected to Archer as a sponsor to deliver some models and other customization to their end. Their RIAs use that to deliver to their own clients, so we actually got to know them. And like I said, it quickly became apparent that this was an acquisition that could help us literally own the entirety of the ecosystem as it relates to retail managed accounts, across manufacturing, servicing and distribution. Archer, by the way, there are very few assets in this space, very much a preeminent provider. Whenever I sat in front of the client and said, gee, who are you using, the name Archer more often came up one of the few that do operational and middle office services as well as has the tech at scale. Like I said, we closed the deal on November 1. All the clients are onboarded. There's an immense amount of interest. There's not 1 conversation with an asset manager, medium size or big for that matter, where they're not asking me about how can you help me with managed accounts. It's tough. It's messy. You need scale, the proliferation of models, how do I get them to all the sponsors, all the sponsors have a different interface how can you help me? And that's exactly where Archer fits in.

Got it. Any goals for that business? I mean, obviously, SMAs are growing really quickly, right? But how should we -- it might be too small to matter and if that's the case, fine, just let me know, but...

It's not that it's too small to matter actually, but it's embedded within the Asset Servicing business. And by the way, it's a little bit difficult. I mean we, of course, have very clear deal models and goals. But when you think about it, it just becomes another wrapper just like ETF, just like registered funds, like so it's hard to separate out just very specifically what will be Archer versus anything else I can do for the same asset manager.

Sure. Okay. Part of achieving the medium-term targets for the Securities Services was to optimize platforms across the core services. Could you explain maybe what you're doing there and what impact we should expect?

Sure. So we've talked a lot about some of the more like innovative and big picture things. We don't forget about what I call the core services and think about things like tax services and tax reclaims that we all know are bundled with custody. And again, it's uplifting those capabilities, digitizing those capabilities. I'd say the same thing about corporate actions and income processing, et cetera. We talked a little bit about the connectivity between ourselves and our Corporate Trust business, so to think about a loan and the entirety of the life cycle. By the way, it's all about in this core bucket, I'd put leveraging new technologies. I think we've spoken about leveraging AI. We all talk about AI and the promise of AI, but actually, we have literally leveraged AI now across in excess of 10,000 funds and 250 clients for NAV oversight, and it really helps a fund accountant in the golden hour when you got to get that NAV out the door to really understand what's a real exception versus the false positive. So again, makes us just smarter and better. And look, why are we doing it at all? It really translates into just better performance, more resilience or more scalable and, frankly, happier clients.

Okay. That all sounds good. We're down to the few more minutes. I'll see if there's any questions in the audience.

Got to get to the Platforms Operating Model.

Don't worry, I got -- we've been having a very low batting average with the audience questions. Don't sweat it. All right. There we go. I have to go through my motions sometimes. Platforms Operating Model. So, this became the topic of the call on the fourth quarter. And I had mine chambered, I had to change because it was like the prior 2 questions were on the same thing. I said forget it. So has Asset Servicing transitioned to this new Platforms Operating Model yet? And what has been your experience? And can you share maybe any metrics you noted that would help us understand the impact of this transition?

So Brennan, sorry, we're just really excited about the Platforms Operating Model. So hence, why I make sure that we have some time to actually talk about it.

I'm glad you keep me on time.

Yes. There you go. So the one thing I'd first say is that -- we call it internally POM, Platforms Operating Model, and it's all about how we do things. It's not about our strategy, but it's just literally about how we run the company. And at the core, its principle is we do things once, we do it in one place, we do them well, and it's all about the execution and the metrics associated with delivering. And then how does that translate, like into the day in and day out? Like what it really means is we are removing redundancy from the company. We're streamlining the company, and you think about running a business or a product truly, truly end-to-end. Look, it means just faster speed to market. So embedded in POM is the notion of agile. And it's agile ways of working, not just for tech, but the entirety. So every product, you stand up pods. Those pods are interdisciplinary. So, you've got people from product and people from engineering and people from operations, and they're all in a pod. And it just means you can iterate through development or a client issue that much faster. It simplifies how we work. It's reducing risk. We have less risk events. And the most important thing is that, honestly, it's empowering our people. So about 25% of the company's in the model -- we're about to go to 50% over the next couple of weeks. And the surveys, the employee satisfaction from folks in the model, is truly higher than folks that are not yet in the model because there's something about the accountability and the empowerment and the interdisciplinary nature of it that is really compelling to our client base. Before you stand up any platform at all, it's about what we call OKRs, which are really KPIs. So it's those metrics really important. You have to have what are you measuring, what are you trying to deliver, and how are you measuring it. And just a great example for Asset Servicing, in particular, I was in Lake Mary. We have a wonderful about 2,000-person office in Lake Mary. And I was doing a floor walk, and I spoke to our middle office outsourcing team. They were transitioned into POM in the third quarter of last year. And they were telling me a story about how they onboarded a middle-office client in record time, and they attributed to that, they really did. I said, how did you do that? And it was about 3 months less than it would have taken them otherwise, and they truly said it was the POM model. It was the fact that they had everyone sitting at the table. They had stand-ups every morning and they were just iterating through any challenges that came up iterating through, how do we solve this? How do we think about it? And I think it's like that example of that power, that's the power of the POM platform.

Got it. Yes, that's helpful. And of course, we'll learn more about it as we go through the year, right, and you'll be transitioning people. Deposits. So you guys changed the deposit -- it's now centrally managed. So I'd love to hear how significant that was. And now if you're in the servicing business, right, and you've got the relationship with the servicing client, and they want to come to you about deposit pricing and what the yields they're getting, does that get routed to the central team? Like how does that work?

So it's interesting. When I think about our deposit model and team, the operating model and the team, it almost was a pilot platform before we actually went full into POM, right? It was probably the first real platform across the company. And it's been incredibly effective. I'd argue that part of our outperformance in NIR over last year really was as a result of having this operating model across the firm. By bringing everyone together, it really allows us to work with clients just much more proactively and seamlessly. We work much more across the businesses to help them optimize their cash and their short-term liquidity. And by the way, remember, BNY, we manage a liquidity ecosystem of about $1.5 trillion on a daily basis. That's both on balance sheet and off balance sheet. That's both proprietary and third-party products. So, it's a large ecosystem. And by bringing it all together, the client, we service them, it's more -- you think about it as a continuum. You can service them on -- they have many more options. Those options are like a ladder, and they can actually understand them across a continuum, so we can talk to them more holistically about what are your liquidity needs, over what kind of time horizons. It frankly just also simplifies their experience, it simplifies how we price them. So, all of those things are beneficial. And the last thing I would highlight is that it's not just about the liability side. It is also about the asset side and the strategic management of the overall balance sheet. So, by virtue of bringing this team together, you have more predictability and understanding of our liabilities. And as a result, it enhances better decision-making across the asset side, the loan portfolio, the investment portfolio. So it really has translated into better overall performance, especially in the NIR line.

Got it. We only got a minute or so left. So, I want to finish where we started, right? Really impressive operating leverage in 2024, you are at a 28.8% pretax margin, right? So basically -- we can call it 29%. What's 20 bps between friends -- so what's the plan to continue to drive operating leverage? Of course, what have you done for me lately? Always more has to be on the come? And how high do you think we can get that pre-tax margin in that business?

So look, like I said, we're really proud of the performance and how we've executed thus far. The 30% remember, is through the cycle. I do think there will be times that we can exceed that. So certainly, it's very, very possible, especially if there's a very constructive market backdrop. But again, it's just everything around the execution, and it goes back to the 3 pillars of the company and many of the things I've been saying. So being more for our clients, solutioning, elevating the conversation, putting the wins on the board. We have a very healthy pipeline of both AUC/A and revenues to be installed. It's all about just running the company better, the POM model, automation, leveraging new technology. Look, AI is very promising. I think that could potentially, at some point, have a meaningful impact on margins, but it's too early to tell right now, it's just making us smarter and better. And again, it's all about powering our culture and empowering our people. And the performance that we've seen and the culture that we've built. We're literally attracting great talent and retaining and developing the talent that we already have. So it's just literally execution, execution, execution.

It's a great point to end on. Emily, thanks a lot for your time today.

Thank you.