The Bank Of New York Mellon Corporation · NYSE:BNY
The Bank Of New York Mellon — Bank of New York Mellon — Q1 2023 Earnings Presentation
15 slides from The Bank Of New York Mellon's earnings presentation, Apr 18, 2023
Slide 1: 1Q23 Financial Highlights
1Q23 Financial Highlights A P R I L 1 8 , 2 0 2 3
Slide 2: 1Q23 Financial Highlights
2 ROE: 10.3% ROTCE: 20.2% 1Q23 Financial Highlights Revenue Pre-tax income Pre-tax margin Returns Capital ratios T1L: 5.8% CET1: 11.0% • Revenue up 11% YoY – Fee revenue flat YoY – Net interest revenue up 62% YoY • Expense up 3% YoY • Provision for credit losses was $27mm • Deposits up 1% QoQ – Aver
Slide 3: 1Q23 Financial Results
3 1Q23 vs. $mm, except per share data or unless otherwise noted 1Q23 4Q22 1Q22 4Q22 1Q22 Fee revenue $3,156 $3,222 $3,158 (2)% —% Investment and other revenue 79 (360) 70 N/M N/M Net interest revenue 1,128 1,056 698 7% 62% Total revenue $4,363 $3,918 $3,926 11% 11% Provision for credit losses 27 20
Slide 4: Capital and Liquidity
4 1Q23 4Q22 1Q22 Consolidated regulatory capital ratios:(a) Tier 1 leverage ratio 5.8% 5.8% 5.3% Supplementary leverage ratio ("SLR") 6.9 6.8 6.2 Common Equity Tier 1 ratio – Advanced Approaches 11.0 11.2 10.4 Common Equity Tier 1 ratio – Standardized Approach 11.4 11.3 10.1 Consolidated regulatory
Slide 5: Net Interest Revenue and Balance Sheet Trends
5 1Q23 vs. $bn, avg. 1Q23 4Q22 1Q22 Deposits: Noninterest-bearing $70 (8)% (23)% Interest-bearing 204 (2)% (9)% Total deposits $274 (3)% (13)% Interest-earning assets: Cash and reverse repo 136 —% (6)% Loans 63 (6)% (5)% Investment securities: HQLA 119 — % (6) % Non-HQLA 25 (1) % (14) % Total invest
Slide 6: Noninterest Expense
6 1Q23 vs. $mm, unless otherwise noted 1Q23 4Q22 1Q22 Staff $1,791 (1)% 5% Software and equipment 429 (1)% 8% Professional, legal and other purchased services 375 (10)% 1% Net occupancy 119 (17)% (2)% Sub-custodian and clearing 118 5% —% Distribution and servicing 85 (1)% 8% Bank assessment charges
Slide 7: Securities Services
7 1Q23 vs. $mm, unless otherwise noted 1Q23 4Q22 1Q22 Total revenue by line of business: Asset Servicing $1,664 (1)% 10% Issuer Services 452 (8)% 69% Total revenue $2,116 (3)% 19% Provision for credit losses — N/M N/M Noninterest expense 1,556 (1)% 3% Income before income taxes $560 (4)% 100% Fee re
Slide 8: Market and Wealth Services
8 1Q23 vs. $mm, unless otherwise noted 1Q23 4Q22 1Q22 Total revenue by line of business: Pershing $693 3% 22% Treasury Services 412 8% 22% Clearance and Collateral Management 362 5% 23% Total revenue $1,467 5% 22% Provision for credit losses — N/M N/M Noninterest expense 769 (2)% 9% Income before in
Slide 9: Investment and Wealth Management
9 1Q23 vs. $mm, unless otherwise noted 1Q23 4Q22 1Q22 Total revenue by line of business: Investment Management $557 1% (15)% Wealth Management 270 (2)% (12)% Total revenue $827 —% (14)% Provision for credit losses — N/M N/M Noninterest expense 734 5% (3)% Income before income taxes $93 (26)% (56)% F
Slide 10: Other Segment
10 • Total revenue includes corporate treasury and other investment activity, including hedging activity which has an offsetting impact between fee and other revenue and net interest expense – QoQ increase in total revenue primarily reflects the $449mm net loss from repositioning the securities port
Slide 11: Appendix
Appendix Sm BNY MELLON Consider Everything
Slide 12: Footnotes
12 Footnotes Page 3 – 1Q23 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 ratios for March 31, 2023 are preliminary. For our CET1 rat
Slide 13: Non-GAAP reconciliations
13 2023 2022 $mm, expect common shares and unless otherwise noted March 31 Dec. 31 March 31 BNY Mellon shareholders’ equity at period end — GAAP $ 40,634 $ 40,734 $ 41,799 Less: Preferred stock 4,838 4,838 4,838 BNY Mellon common shareholders’ equity at period end — GAAP 35,796 35,896 36,961 Less: G
Slide 14: Pre-tax Operating Margin and EPS Reconciliation
14 (a) Income before income taxes divided by total revenue. (b) Notable items in 1Q23 reflect litigation reserves and a disposal loss (reflected in investment and other revenue). Notable item in 1Q22 reflects the accelerated amortization of deferred costs for depositary receipts services related to
Slide 15: Forward-looking statements
15 A number of statements in The Bank of New York Mellon Corporation’s (the “Corporation”) presentations, the accompanying slides and the responses to your questions are “forward-looking statements.” Words such as “estimate,” “forecast,” “project,” “anticipate,” “likely,” “target,” “expect,” “intend
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