The Bank Of New York Mellon Corporation · NYSE:BNY
The Bank Of New York Mellon — Bank of New York Mellon — Goldman Sachs Financial Services Conference 2012
25 slides from The Bank Of New York Mellon's conference presentation, Dec 5, 2012
Slide 1: Goldman Sachs Financial Services Conference 2012
Exhibit 99.1 December 5, 2012 Presented by: Gerald Hassell – Chairman & CEO Todd Gibbons – Chief Financial Officer Goldman Sachs Financial Services Conference 2012
Slide 2: Cautionary Statement
Cautionary Statement A number of statements in our presentations, the accompanying slides and the responses to your questions are “forward- looking statements.” These statements relate to, among other things, The Bank of New York Mellon Corporation’s (the “Corporation”) financial outlook and future
Slide 3: Attractive Business Model
Attractive Business Model A leading manager and servicer of global financial assets Growth Deliver revenue growth in challenging markets, significant upside Profile in normalized markets Operational Improve efficiency to increase margins, reduce operational risk and Excellence deliver the highest se
Slide 4: Leading Manager and Servicer of Global Financial Assets
Leading Manager and Servicer of Global Financial Assets Investment Services (36% non-U.S. Revenue)1 • Largest global custodian The global leader in • Global Collateral Management – #1 Investment Services, ~$27.9T AUC/A • Alternative Investment Services – #3 Fund Administrator LTM ended 9/30/12: • Co
Slide 5: We are an Investments Company
We are an Investments Company Serving clients across and at any point in the investment life cycle Depositary Receipts Create Broker-Dealer Svcs. Corporate Global Markets Assets Trust Treasury Services Restructure Trade Assets Assets Investment Life Cycle Distribute Hold Assets Assets Investment Man
Slide 6: Spanning the Investment Life Cycle
Spanning the Investment Life Cycle A client example CREATE Corporate Trust, Depositary Receipts, TRADE Capital Markets, Lending Global Collateral Services, Lending, Global Markets, RESTRUCTURE Debt Servicing globally and Treasury Services Corporate Trust Debt Servicing in the Americas, Depositary Re
Slide 7: Challenging Operating Environment Persists
Challenging Operating Environment Persists • “Lower for longer” macro environment – Interest rates and economic forecasts • Eurozone and U.S. “fiscal cliff” concerns • De-risking • Lower trading volumes and volatility • Weak structured debt securitizations market • Cyclical headwinds for Depositary
Slide 8: Priorities in a Challenging Operating Environment
Priorities in a Challenging Operating Environment • Winning new business • Providing client solutions to address increasing regulation Organic Revenue Growth • Building on our international presence • Fostering culture of collaboration and innovation Operational Excellence Initiatives • Targeting $6
Slide 9: Driving Organic Revenue Growth
Driving Organic Revenue Growth Continuing to win new business Cumulative Assets Under Custody Wins Cumulative Long-Term Net Flows LTM ending 9/30/12 LTM ending 9/30/12 ($ billions) ($ billions) $2,000 $80 $1,720 $58 $1,500 $1,198 $49 $60 $884 $1,000 $40 $23 $431 $16 $500 $20 $0 $0 4Q11 1Q12 2Q12 3Q1
Slide 10: Driving Organic Revenue Growth: Global Collateral Services
Driving Organic Revenue Growth Global Collateral Services – client solutions to address increasing regulation Hold / Segregate / Global Collateral Services Aggregate By the Numbers $2.0 trillion in global collateral assets $40 billion in derivatives collateral Transparency Manage assets Collateral I
Slide 11: Driving Organic Revenue Growth: Building on our international presence
Driving Organic Revenue Growth Building on our international presence Maturity of market China US France South Japan Korea $10-60T Brazil India Germany UK Australia/NZ Russia Gulf region Singapore Canada Mexico $1-10T South Africa Poland Emerging Mature Asset Management Trade Finance Fund Administra
Slide 12: Winning Through Collaboration and Innovation
Winning Through Collaboration and Innovation Investment Clearing Asset Issuer & Treasury Management Services Servicing Services • Embed a culture of Platforms – RIA, DC, Managed Accts ongoing collaboration D360 and innovation Prime Custody – Leverage our product Global Collateral Services breadth to
Slide 13: Operational Excellence Initiatives
Operational Excellence Initiatives Transforming Operations, Technology and Corporate Services Total Targeted Pre-tax Savings for 2015: $650 - $700MM $500 $360 - $390 Gross Savings $274 $120 - $130 Program Costs $250 $51 $240 - $260 Net Savings $223 $0 Sept – 2012 2012 YTD Target 12 Goldman Sachs Fin
Slide 14: Continuing to Leverage Our Strengths
Continuing to Leverage Our Strengths Strong capital generation and disciplined deployment Growing capital… 14% $3.0 $2.6 ($ billions) CCAR 2012 1 Tangible Capital Stress Test Results² 12% (cumulative) $1.8 10% $2.0 Performing well in 8% $1.3 stress tests… 6% $1.0 $0.6 4% 2% $0.0 4Q11 1Q12 2Q12 LTM 3
Slide 15: Operating Environment: Continuing to Pressure Revenue
Operating Environment: Continuing to Pressure Revenue 0.50 3-Month LIBOR (U.S.) FX Volatility 10 FX Volatility 0.45 3Q12 Average 4Q12 Average 9 0.40 8 0.35 7 0.30 3-Month LIBOR (U.S.) Source: Bloomberg (Ticker = US0003M) Source: Bloomberg (Deutsche Bank Index, Ticker = CVIX) 0.25 6 Jul-12 Aug-12 Sep
Slide 16: Our Business Model Drives Value
Our Business Model Drives Value Broadest product breadth to deliver client solutions Benefits from globalization and long-term growth of financial assets Generates recurring core fee revenue that is less reliant on risk- weighted asset growth Generates significant levels of capital that can be retur
Slide 17: BNY Mellon
> BNY MELLON
Slide 18: Appendix
Appendix
Slide 19: BNY Mellon Peer Groups
BNY Mellon Peer Groups Corporate 12-Member Top 10 U.S. Banks Peer Group (by Market Capitalization) American Express BNY Mellon Bank of America Bank of America BlackRock Citigroup Charles Schwab JPMorgan Chase Citigroup Fifth Third JPMorgan Chase Northern Trust Northern Trust PNC Financial PNC Financ
Slide 20: Reconciliation Schedule
Reconciliation Schedule Business – revenue and pretax income ($millions) Revenue 4Q11 1Q12 2Q12 3Q12 LTM 3Q12 Investment Services $2,415 $2,494 $2,488 $2,487 $9,884 Investment Management $822 $907 $913 $924 $3,566 ($millions) Pretax Income 4Q11 1Q12 2Q12 3Q12 LTM 3Q12 Investment Services $709 $699 $
Slide 21: Capital Ratio Definitions
Capital Ratio Definitions Tier 1 Capital Represents common shareholders’ equity (excluding certain components of comprehensive income) and qualifying trust preferred securities, adjusted for goodwill and certain intangible assets, deferred tax liabilities associated with non-tax deductible intangibl
Slide 22: Reconciliation Schedule
Reconciliation Schedule Tangible capital generation ($millions) 4Q11 1Q12 2Q12 3Q12 LTM 3Q12 Tangible Net Income Net income – continuing operations¹ $505 $619 $466 $720 $2,310 Intangible amortization – after-tax 66 61 61 60 248 Tangible Net Income $571 $680 $527 $780 $2,558 1 Represents a non-GAAP m
Slide 23: Reconciliation Schedule
Reconciliation Schedule Return on tangible common equity ($millions) ($millions) 2012 YTD Average Tangible 2012 YTD Net Income Common Equity Average common shareholder’s Net income – continuing operations¹ $1,805 equity $34,123 Intangible amortization 182 Less: Average goodwill 17,941 Average intang
Slide 24: Driving Operational Excellence
Driving Operational Excellence $650MM to $700MM of savings for 2015 $MM 2015 Investment Management $40 - $45 Investment Services 375 - 405 Total Business Operations $415 - $450 Technology / Corporate Services 235 - 250 Pre-tax Savings $650 - $700MM 23 Goldman Sachs Financial Services Conference 2012
Slide 25: Driving Operational Excellence
Driving Operational Excellence Transforming Operations, Technology and Corporate Services Financial Summary 2015 Program • Estimated pre-tax savings of $650 - $700 MM Savings • 2012: $240 – $260 MM Savings net of Calendar Year • 2013: $400 – $430 MM program costs / Savings • 2014: $535 – $575 MM rei
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