The Bank Of New York Mellon Corporation · NYSE:BNY
The Bank Of New York Mellon — 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 u l y 1 5 , 2 0 2 1
Slide 2: 2Q21 Financial Highlights
2 Second Quarter 2021 – Financial Highlights 2Q21 Financial Highlights $1.13 EPS $1.27 bn Pre-tax income ROE: 9.8% ROTCE: 18.6% Returns CET1: 12.6% Tier 1 leverage: 6.0% Capital ratios › Revenue down 1% year-over-year › Fee revenue up 4%, excluding money market fee (“MMF”) waivers, up 10% (a) › Net
Slide 3: 2Q21 Financial Highlights ($ millions, except per share data)
3 Second Quarter 2021 – Financial Highlights 2 Q 2 1 1 Q 2 1 2 Q 2 0 T O T A L R E V E N U E $3,960 1% (1)% Fee revenue 3,224 (1) 4 Other revenue 91 N/M N/M Net interest revenue 645 (2) (17) Provision for credit losses (86) N/M N/M Noninterest expense 2,778 (3) 3 Income before income taxes 1,268 10
Slide 4: 2Q21 Key Financial Trends
4 Second Quarter 2021 – Financial Highlights 9.4 8.5 9.8 5 10 15 2Q21 Key Financial Trends 838 943 952 48 48 47 999 886 2Q20 1Q21 2Q21 991 +13% I& W M r e v e n u e ($ millions) 2,7782,686 2Q20 1Q21 2Q21 2,851 +3% 18.618.5 2Q20 1Q21 2Q21 16.1 +3 bps IS r e v en u e ($ millions) N o n i nt e re s t e
Slide 5: Capital and Liquidity
5 Second Quarter 2021 – Financial Highlights Capital and Liquidity Note: See page 14 in the Appendix for corresponding footnotes. 2 Q 2 1 1 Q 2 1 2 Q 2 0 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
Slide 6: Net Interest Revenue
6 Second Quarter 2021 – Financial Highlights Net Interest Revenue ($ millions) - Lower interest rates on interest- earning assets - Other, including hedging + Benefit of lower debt and other funding rates D R I V E R S O F S E Q U E N T I A L N I R C H A N G E 2Q211Q21 655 645 + Volume mix (lower de
Slide 7: Balance Sheet Trends
7 Second Quarter 2021 – Financial Highlights 123 126 126 26 30 30 1.51% 1.19% 1.10% 0.00 2.00 4.00 0.0 50.0 100.0 150.0 200.0 Balance Sheet Trends AV E R A G E D E P O S I T S Interest-bearing deposits rate AV E R A G E S E C U R I T I E S P O R T F O L I O Average securities portfolio rate High Qua
Slide 8: Noninterest Expense
8 Second Quarter 2021 – Financial Highlights Noninterest Expense › Noninterest expenses up 3% year-over-year, primarily reflecting the unfavorable impact of a weaker U.S. dollar, investments in efficiency and growth initiatives and higher revenue-related expenses 2 Q 2 1 1 Q 2 1 2 Q 2 0 Staff $1,518
Slide 9: Investment Services
9 Second Quarter 2021 – Financial Highlights Investment Services Note: See page 14 in the Appendix for corresponding footnotes. N/M – not meaningful › Asset Servicing down year-over-year on lower net interest revenue, higher MMF waivers and lower foreign exchange revenue, partially offset by higher
Slide 10: Investment Services - Revenue Drivers
10 Second Quarter 2021 – Financial Highlights Investment Services - Revenue Drivers A S S E T S E R V I C I N G I S S U E R S E R V I C E SP E R S H I N G T R E A S U R Y S E R V I C E S C L E A R A N C E A N D C O L L AT E R A L - Interest rates - MMF waivers - FX volatility + Client activity + Mar
Slide 11: Investment and Wealth Management
11 Second Quarter 2021 – Financial Highlights Investment and Wealth Management (a) Net of distribution and servicing expense. See page 17 in the Appendix for the reconciliation of this non-GAAP measure. Note: see page 14 in the Appendix for corresponding footnotes (b) and (c). N/M – not meaningful ›
Slide 12: Other Segment
12 Second Quarter 2021 – Financial Highlights Other Segment › Total revenue includes corporate treasury and other investment activity, including hedging activity which has an offsetting impact in fee and other revenue and net interest expense › Total fee and other revenue decreased year-over-year on
Slide 13: Appendix
Se BNY MELLON Appendix
Slide 14: Footnotes
14 Second Quarter 2021 – Financial Highlights 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 noninterest expense. b) See page 16 for corresponding reconciliation of this non-GAAP meas
Slide 15: Money Market Fee Waiver Impact
15 Second Quarter 2021 – Financial Highlights Money Market Fee Waiver Impact 2 Q 2 1 1 Q 2 1 4 Q 2 0 3 Q 2 0 2 Q 2 0 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
Slide 16: Return on Common Equity and Tangible Common Equity Reconciliation
16 Second Quarter 2021 – Financial Highlights Return on Common Equity and Tangible Common Equity Reconciliation 2 Q 2 1 1 Q 2 1 2 Q 2 0 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:
Slide 17: Pre-tax Operating Margin Reconciliation – Investment and Wealth Management Business
17 Second Quarter 2021 – Financial Highlights Pre-tax Operating Margin Reconciliation – Investment and Wealth Management Business (a) Income before income taxes divided by total revenue. 2 Q 2 1 1 Q 2 1 2 Q 2 0 Income before income taxes – GAAP $326 $278 $221 Total revenue – GAAP $999 $991 $886 Less
Slide 18: Cautionary Statement
18 Second Quarter 2021 – Financial Highlights 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
Slide 19: BNY Mellon
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