The Bank Of New York Mellon Corporation · NYSE:BNY
The Bank Of New York Mellon — Q2 2021 Earnings Presentation
19 slides from The Bank Of New York Mellon's earnings presentation, Jul 15, 2021
Slide 1: Second Quarter 2021 Financial Highlights
Second Quarter 2021 Financial Highlights J uly 1 5 , 2 0 2 1
Slide 2: 2Q21 Financial Highlights
2Q21 Financial Highlights Revenue EPS › Revenue down 1% year-over-year › Fee revenue up 4%, excluding money market fee $3.96 bn $1.13 (“MMF”) waivers, up 10% (a) › Net interest revenue down 17% › Expense up 3% year-over-year Pre-tax income Pre-tax margin › Provision for credit losses – benefit of $8
Slide 3: 2Q21 Financial Highlights
2Q21 Financial Highlights ($ millions, except per share data) 2Q21 1Q21 2Q20 T O T AL R E V E N U E $3,960 1% (1)% Fee revenue 3,224 (1) 4 Other revenue 91 N/M N/M Net interest revenue 645 (2) (17) Provision for credit losses (86) N/M N/M Noninterest expense 2,778 (3) 3 Income before income taxes 1,
Slide 4: 2Q21 Key Financial Trends
2Q21 Key Financial Trends IS r e v en u e I& WM r e v e n u e N o n int ere st ($ millions) ($ millions) e xpe n se ($ millions) (4)% +13% 3,107 +3% 2,990 2,979 991 999 Net interest 768 645 643 886 48 47 2,686 2,851 2,778 revenue Net interest revenue 48 Total fee and Total fee and other revenue 2,33
Slide 5: Capital and Liquidity
Capital and Liquidity 2Q21 1Q21 2Q20 Consolidated regulatory capital ratios:(a) Common Equity Tier 1 (“CET1”) ratio 12.6% 12.6% 12.6% Tier 1 capital ratio 15.2 15.2 15.4 Total capital ratio 16.0 16.1 16.3 Tier 1 leverage ratio 6.0 5.8 6.2 (b) (b) Supplementary leverage ratio (“SLR“) 7.5 8.1 8.2 Aver
Slide 6: Net Interest Revenue
Net Interest Revenue D R I V ER S O F S E Q U E N TI AL N I R C H A N G E USD LIBOR AVERAGE ($ millions) (%) 0.20 (1.5)% 0.12 0.16 0.10 655 645 1m 3m + Benefit + Volume mix - Other, - Lower of lower (lower debt including interest US TREASURY AVERAGE debt and and higher hedging rates on (%) 1.59 othe
Slide 7: Balance Sheet Trends
Balance Sheet Trends ($ billions) AV E RA GE I N T E R E ST- AV E R A G E D E P O S I T S EARNING ASSETS +15% (1)% +9% 329 325 (2)% 283 211 245 239 Interest-bearing 397 388 deposits (0.03)% (0.06)% (0.08)% Interest-bearing 358 57 61 deposits rate Loans 57 8 Noninterest-bearing 7 72 83 86 deposits Tr
Slide 8: Noninterest Expense
Noninterest Expense ($ millions) 2Q21 1Q21 2Q20 › Noninterest expenses up 3% year-over-year, primarily Staff $1,518 (5)% 4% reflecting the unfavorable impact of a weaker U.S. dollar, investments in efficiency and growth initiatives and Software and equipment 365 1 6 higher revenue-related expenses P
Slide 9: Investment Services
Investment Services FINANCIAL HIGHLIGHTS ($ millions unless otherwise noted) 2Q21 1Q21 2Q20 › Asset Servicing down year-over-year on lower net Total revenue by line of business: interest revenue, higher MMF waivers and lower foreign Asset Servicing $1,382 (3)% (6)% exchange revenue, partially offset
Slide 10: Investment Services - Revenue Drivers
Investment Services - Revenue Drivers ($ millions) (6)% +2% 1,463 (6)% 1,382 578 590 (6)% 431 405 (4)% 340 319 295 283 2Q20 2Q21 2Q20 2Q21 2Q20 2Q21 2Q20 2Q21 2Q20 2Q21 AS S E T ISSUER T R E AS U R Y C L E AR AN C E AN D S E R VIC IN G PERSHING S E R VIC E S S E R VIC E S C O L L AT E R A L - Intere
Slide 11: Investment and Wealth Management
Investment and Wealth Management FINANCIAL HIGHLIGHTS ($ millions unless otherwise noted) 2Q21 1Q21 2Q20 › Investment Management up year-over-year primarily on Total revenue by line of business: higher market values, the favorable impact of a weaker Investment Management $700 -% 13% U.S. dollar, hig
Slide 12: Other Segment
Other Segment FINANCIAL HIGHLIGHTS ($ millions unless otherwise noted) 2Q21 1Q21 2Q20 › Total revenue includes corporate treasury and other Fee revenue $13 $9 $10 investment activity, including hedging activity which has Other revenue 9 (36) 28 an offsetting impact in fee and other revenue and net T
Slide 13: Appendix
Se BNY MELLON Appendix
Slide 14: Footnotes
Footnotes 2Q21 Financial Highlights, Page 3 a) Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninter est expense. b) See page 16 for corresponding reconciliation of this non-GAAP measure. Capital and Liquidity, Page 5 a) Regulat
Slide 15: Money Market Fee Waiver Impact
Money Market Fee Waiver Impact ($ millions) 2Q21 1Q21 4Q20 3Q20 2Q20 Investment services fees: Asset servicing fees $(42) $(22) $(13) $(1) $- Clearing services fees (88) (74) (64) (57) (50) Issuer services fees (15) (10) (6) (1) (1) Treasury services fees (3) (3) (2) (3) (2) Total investment service
Slide 16: Return on Common Equity and Tangible Common Equity Reconciliation
Return on Common Equity and Tangible Common Equity Reconciliation ($ millions) 2Q21 1Q21 2Q20 Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP $991 $858 $901 Add: Amortization of intangible assets 20 24 26 Less: Tax impact of amortization of intangible a
Slide 17: Pre-tax Operating Margin Reconciliation – Investment and Wealth Management Business
Pre-tax Operating Margin Reconciliation – Investment and Wealth Management Business ($ millions) 2Q21 1Q21 2Q20 Income before income taxes – GAAP $326 $278 $221 Total revenue – GAAP $999 $991 $886 Less: Distribution and servicing expense 74 75 86 Adjusted total revenue, net of distribution and servi
Slide 18: Cautionary Statement
Cautionary Statement A number of statements in this discussion and the responses to your questions may contain “forward-looking statements,” including statements about The Bank of New York Mellon Corporation’s (the “Corporation”) capital plans, strategic priorities, financial goals, organic growth,
Slide 19: BNY Mellon
> BNY MELLON
The Bank of New York Mellon — Q2 2021 Earnings Presentation on 6ix