The Bank Of New York Mellon Corporation · NYSE:BNY
The Bank Of New York Mellon — Bank of New York Mellon — Q1 2024 Earnings Presentation
15 slides from The Bank Of New York Mellon's earnings presentation, Apr 16, 2024
Slide 1: 1Q24 Financial Highlights
1Q 24 FINANCIAL April 16, 2024 HIGHLIGHTS
Slide 2: 1Q24 Financial Highlights
2 +11% Revenue Growth: Pre-tax Margin: EPS Growth: • Revenue Growth: Revenue of $4.5bn up 3% YoY – Investment services fees up 8% YoY – Investment management and performance fees flat YoY – Foreign exchange revenue down 14% YoY – Net interest income down 8% YoY • Expense Discipline: Expense of $3.2b
Slide 3: 1Q24 Financial Results
3 1Q24 vs. $mm, except per share data or unless otherwise noted 1Q24 4Q23 1Q23 4Q23 1Q23 Income Statement Investment services fees $2,278 $2,242 $2,119 2% 8% Investment management and performance fees 776 743 776 4 — Foreign exchange revenue 152 143 176 6 (14) Other fee revenue 99 86 85 15 16 Total
Slide 4: Capital and Liquidity
4 1Q24 4Q23 1Q23 Consolidated regulatory capital ratios:(a) Tier 1 capital ($mm) $22,722 $22,863 $22,595 Average assets for Tier 1 leverage ratio ($mm) 386,146 383,705 389,358 Tier 1 leverage ratio 5.9% 6.0% 5.8% Common Equity Tier 1 ("CET1") capital ($mm) $18,382 $18,534 $17,761 Risk-weighted asset
Slide 5: Net Interest Income and Balance Sheet Trends
5 1,128 1,100 1,016 1,101 1,040 1Q23 2Q23 3Q23 4Q23 1Q24 1Q24 vs. 1Q24 4Q23 1Q23 Total assets $404 1% (1)% Total interest-earning assets $346 1% (1)% Cash and reverse repo 142 (2) 4 Loans 66 — 4 Investment securities 134 5 (7) Noninterest-bearing $50 (5)% (29)% Interest-bearing 229 4 12 Total deposi
Slide 6: Securities Services
6 1Q24 vs. $mm, unless otherwise noted 1Q24 4Q23 1Q23 Asset Servicing $1,013 4% 8% Issuer Services 261 (8) 11 Total investment services fees $1,274 1% 8% Foreign exchange revenue 124 5 (11) Other fees 59 9 7 Investment and other revenue 99 N/M N/M Net interest income 583 (8) (12) Total revenue $2,13
Slide 7: Market and Wealth Services
7 1Q24 vs. $mm, unless otherwise noted 1Q24 4Q23 1Q23 Pershing $482 2% 3% Treasury Services 184 3 5 Clearance and Collateral Management 329 2 13 Total investment services fees $995 2% 7% Foreign exchange revenue 24 14 33 Other fees 58 16 14 Investment and other revenue 17 N/M N/M Net interest income
Slide 8: Investment and Wealth Management
8 1Q24 vs. $mm, unless otherwise noted 1Q24 4Q23 1Q23 Investment management fees $768 6% 2% Performance fees 10 N/M N/M Distribution and servicing fees 70 6 27 Other fees (60) N/M N/M Investment and other revenue 17 N/M N/M Net interest income 41 (9) (9) Total revenue $846 25% 2% Provision for credi
Slide 9: Other Segment
9 $mm, unless otherwise noted 1Q24 4Q23 1Q23 Fee revenue $(17) $(17) $3 Investment and other revenue 47 38 38 Net interest (expense) (7) (15) (36) Total revenue $23 $6 $5 Provision for credit losses 12 (6) 27 Noninterest expense 65 820 41 Income (loss) before income taxes $(54) $(808) $(63) Other Se
Slide 10: Appendix
APPENDIX
Slide 11: Footnotes
11 Footnotes Page 3 – 1Q24 Financial Results (a) Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninterest expense. Page 4 – Capital and Liquidity (a) Regulatory capital and liquidity ratios for March 31, 2024 are preliminary. Fo
Slide 12: Reconciliation of Non-GAAP Measures – Impact of Notable Items
12 Select Income Statement Data Reconciliation of Non-GAAP Measures – Impact of Notable Items 1Q24 vs. $mm, except per share amounts 1Q24 4Q23 1Q23 4Q23 1Q23 Total revenue – GAAP $4,527 $4,358 $4,415 4% 3% Less: Reduction in the fair value of a contingent consideration receivable related to a prior
Slide 13: Reconciliation of Non-GAAP Measures – ROTCE
13 $mm 1Q24 4Q23 1Q23 Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP $953 $162 $911 Add: Amortization of intangible assets 12 14 14 Less: Tax impact of amortization of intangible assets 3 4 3 Adjusted net income applicable to common shareholders of The
Slide 14: Forward-looking statements
14 A number of statements in our presentations, the accompanying slides and the responses to questions on our conference call discussing our quarterly results may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements
Slide 15: BNY Mellon
MELLON
Bank of New York Mellon — Q1 2024 Earnings Presentation on 6ix