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

Bank of New Yorkwhich calls itself the world’s largest custody bank, is raising a pair of key performance targets as CEO Robin Vince says the turnaround that began when he took over three years ago begins to take hold.

The bank is boosting its medium-term targets for pre-tax 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 the move shows increased confidence in the company’s prospects going forward. Banks in general have also benefited from several deregulation efforts under the Trump administration’s regulatory agencies.

“We are increasing our medium-term goals because we have confidence that we believe there is a lot of value and potential that we can unlock in the long term,” Vince said in an interview, adding that medium-term goals have a three- to five-year horizon.

“After three years, we have already demonstrated a track record of execution and strong performance, giving us confidence that the strategy is working and that there is a clear transformation happening in the company,” he said.