BNY raises profit target as CEO Robin Vince says ‘turnaround’ is taking hold

BNY, which calls itself the world’s largest custody bank, is raising a pair of key performance targets as CEO Robin Vince says a turnaround that began when he took over three years ago is taking hold.

The bank is boosting its medium-term targets for pretax margin and return on tangible common equity by 5 percentage points each, to 38% and 28%, respectively, according to materials provided by the bank.

Vince, a former Goldman Sachs executive who joined BNY in 2020 and became the bank’s CEO in 2022, said that the move demonstrates increased confidence in the company’s prospects going forward. Banks overall have also benefited from several deregulatory efforts under Trump administration regulators.

“We’re increasing our medium-term targets, because we have the confidence that we think there’s a lot more value and potential for us to unlock over the long term,” Vince said in an interview, adding that medium-term targets had a three- to five-year horizon.

“Three years in, we’ve really demonstrated a track record of execution and strong performance, which gives us confidence that the strategy is working and that there’s a clear turnaround that’s happening at the company,” he said.