“And assuming interest rates follow marks implied forwards, we expect to generate additional excess capital from the unrealized loss related to AFS securities pulling to par over time.”

In context

“ng completion, and by better leveraging the enterprise to transform fragmented and sub-scale support activities into scaled enterprise platforms. Moving onto our capital management philosophy on Page 19. BNY Mellon benefits from a capital-light business model that allows us to drive organic growth while typically returning nearly 100% of earnings to our common shareholders over time. Over the past 10 years, the firm grew dividends per share at an 11% CAGR and returned almost 100% of earnings to shareholders through a combination of dividends and buybacks. Our philosophy for capital deployment and capital distribution remains unchanged. We've entered the year with strong capital ratios at or above our management target of approximately 5.5% to 6% Tier 1 leverage and approximately 11% CET1. And assuming interest rates follow marks implied forwards, we expect to generate additional excess capital from the unrealized loss related to AFS securities pulling to par over time. Wrapping up on Page 20. Over the past year, we conducted thorough strategic reviews, we developed detailed business and financial plans, and we've taken the first steps on what would be a multi-year transformation of our company. Our business plans drive as achieving what we laid out across our three strategic pillars, be more for our clients, run our company better and power our culture. And our financial plans aim to improve the firm's pre-tax margin to 33% and our ROTCE to 23% over the medium-term, while maintaining a strong balance sheet. In publishing our medium-term financial targets together with our most important strategic priorities and the actions that will help us achieve them, we are providing transparency to allow you all to track our progress, and we are confident that we w”