The Bank Of New York Mellon Corporation · NYSE:BNY
The Bank Of New York Mellon — Bank of New York Mellon — UBS Global Financial Services Conference 2014
28 slides from The Bank Of New York Mellon's conference presentation, May 20, 2014
Slide 1: UBS Global Financial Services Conference 2014
May 20, 2014 UBS Global Financial Services Conference 2014 Gerald Hassell Chairman and Chief Executive Officer Todd Gibbons Chief Financial Officer Exhibit 99.1 POWERING GLOBAL INVESTMENTS
Slide 2: Cautionary Statement
UBS Global Financial Services Conference 2014 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
Slide 3: Expertise Across the Investment Lifecycle
UBS Global Financial Services Conference 2014 The Investments Company for the World 2 See page 25 in Appendix for sources. Expertise Across the Investment Lifecycle
Slide 4: The Investments Company for the World
UBS Global Financial Services Conference 2014 3 The Investments Company for the World Corporate Trust #1 Global corporate trust service provider Treasury Services Top 5 in U.S.D. payments Global Markets Client driven trading Global Collateral Services Leveraging the breadth of Investment Services *
Slide 5: 2013 Highlights
UBS Global Financial Services Conference 2014 2013 Highlights 4 1 Includes Performance fees. 2 Represents a non-GAAP adjusted measure. See Appendix for reconciliation. Additional disclosure regarding this measure and other non-GAAP adjusted measures are available in the Corporation’s reports filed w
Slide 6: 2013 -- Solid Pretax Income Growth Despite Factors Unique to BNY Mellon
UBS Global Financial Services Conference 2014 2013 -- Solid Pretax Income Growth Despite Factors Unique to BNY Mellon 5 1 Excludes the impact of intangible amortization and money market fee waivers. 2 Assumes no change in client behavior. Pretax Income +12% Money Market Fee Waivers Pretax Trend ($mi
Slide 7: 1Q14 Highlights
UBS Global Financial Services Conference 2014 Growth 1Q14 vs. 1Q13 1Q14 Highlights 6 1Q14 1 Includes Performance fees. LTM = Last twelve months 2 Represents a non-GAAP adjusted measure. See Appendix for reconciliation. Additional disclosure regarding this measure and other non-GAAP adjusted measures
Slide 8: Investment Management – Driving Organic Growth
UBS Global Financial Services Conference 2014 7 Investment Management – Driving Organic Growth NEWTON CIS SIGULER GUFF* MELLON CAPITAL THE BOSTON COMPANY CENTER- SQUARE STANDISH EACM HAMON* INSIGHT ALCENTRA BNY MELLON WESTERN FMC* WALTER SCOTT BNY MELLON ARX MERITEN * Minority ownership or joint ven
Slide 9: Investment Management – Investing in Our Franchise
UBS Global Financial Services Conference 2014 Investment Management – Investing in Our Franchise 8 Projected Margin Impact (%) 0.2 (0.7) (1.1) (0.3) 0.5 1.5+ 2.0+ NOTE: Illustrative scenario based on current estimates. Investing for Organic Growth Investment Management Individuals as Investors • Int
Slide 10: Investment Services – Facing Challenging Operating Environment
UBS Global Financial Services Conference 2014 Investment Services – Facing Challenging Operating Environment 9 Business Performance Dynamics Longer Term Trends Current Operating Environment • Solid demand for custody- and clearing- related solutions • Net new business wins • Organic growth initiativ
Slide 11: Investment Services – Facing Challenging Operating Environment
UBS Global Financial Services Conference 2014 Investment Services – Facing Challenging Operating Environment 10 Performance Drivers Investment Services Fees (adjusted) • ~11% CAGR reflects: Ancillary Revenue: • ~1% CAGR decline reflects lower: Net Interest Revenue Market rates and narrower spreads F
Slide 12: Investment Services – Investing in Our Franchise
UBS Global Financial Services Conference 2014 Investment Services – Investing in Our Franchise 11 * Coverage ratio represents Investment Services fees as a percentage of noninterest expense. Noninterest expense excludes amortization of intangible assets, support agreement charges and litigation expe
Slide 13: Focused on Expense Control and Operating Leverage
UBS Global Financial Services Conference 2014 Focused on Expense Control and Operating Leverage 12 1 Total Corporation actual operating expense may increase or decrease due to other factors. Bending the Cost Curve Technology • Getting more out of existing investment • Insourcing application developm
Slide 14: Strong Capital Generation Provides Financial Flexibility
UBS Global Financial Services Conference 2014 13 Strong Capital Generation Provides Financial Flexibility 1 Represents a non-GAAP adjusted measure. See Appendix for a reconciliation. Additional disclosure regarding this measure and other non-GAAP adjusted measures are available in the Corporation’s
Slide 15: Impact of New Capital Regulations
UBS Global Financial Services Conference 2014 Impact of New Capital Regulations 14 Leverage Bound Banks Risk-Based Capital Bound Banks Business Models Have Different Capital Constraints Spot Capital Stress Capital Sample Institutions • Trust Banks • Securities Lenders • Broker-Dealers • Regional Ban
Slide 16: Corporate Trust What are we Doing?
UBS Global Financial Services Conference 2014 Corporate Trust 15 What are we Doing? 1 Excludes the impact of intangible amortization and money market fee waivers. Near-Term Pressure, Positive Long-Term Outlook, Evaluating Options N ear - Term Profitability / Returns Negatively Impacted by: • Money m
Slide 17: Driving Shareholder Value Positioned for Growth
UBS Global Financial Services Conference 2014 Driving Shareholder Value 16 Positioned for Growth Actively realigning the business model for the new regulatory environment Investing in our franchise to drive organic growth Bending the cost curve and driving positive operating leverage Generating stro
Slide 18: BNY Mellon
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Slide 19: Appendix
APPENDIX ******* ******* ******* ******* ******* ******* ******* ******* ******* ******* *******
Slide 20: Reconciliation Schedule – Business Revenue and Pretax Income
UBS Global Financial Services Conference 2014 Reconciliation Schedule * Totals exclude the Other segment. Pretax metrics exclude the impact of intangible amortization. INVESTMENT MANAGEMENT REVENUE $ MILLION INVESTMENT MANAGEMENT 975 2Q13 310 PRETAX INCOME $ MILLION 949 3Q13 260 1,061 4Q13 301 970 1
Slide 21: Reconciliation Schedule – 2013 Net Income
UBS Global Financial Services Conference 2014 Reconciliation Schedule Net Income ($millions) (Ex. Intangible Amortization) 2013 Net income – continuing operations $2,047 Intangible amortization – after-tax 220 M&I, litigation and restructuring 45 Net charge related to the disallowance of certain tax
Slide 22: Reconciliation Schedule – 1Q14 Net Income
UBS Global Financial Services Conference 2014 Reconciliation Schedule Net Income ($millions) (Ex. Intangible Amortization) 1Q14 Net income – continuing operations $661 Intangible amortization – after-tax 49 M&I, litigation and restructuring (7) Adjusted Net Income 1 $703 ($millions) Average Tangible
Slide 23: Reconciliation Schedule – Basel III Capital Components and Ratios
UBS Global Financial Services Conference 2014 Reconciliation Schedule ($millions) Basel III Capital Components and Ratios at March 31, 2014 Fully phased-in Basel III Common Equity $36,424 Goodwill and Intangible Assets (19,915) Net Pension Fund Assets (104) Equity Method Investments (426) Deferred T
Slide 24: Dodd-Frank Act Stress Test – Severely Adverse Scenario
UBS Global Financial Services Conference 2014 Dodd-Frank Act Stress Test – Severely Adverse Scenario Bank Holding Company Ticker/ Identifier Tier 1 Common Ratio (%) Stress Impact Actual Q3 2013 Ending Minimum American Express Company AXP 12.8 14.0 12.1 0.7 BB&T Corporation BBT 9.4 8.4 8.4 1.0 SunTru
Slide 25: Asset Servicing rankings and sources
UBS Global Financial Services Conference 2014 Source: Globalcustody.net, 2013, data as of June 30, 2013 or as otherwise noted by relevant ranked entity. Leading provider of U.S. Government Securities clearance services Source: Federal Reserve Bank of New York - Fedwire Securities High Volume Custome
Slide 26: Disclosures
UBS Global Financial Services Conference 2014 Disclosures All statistics are global and represent the minimum number of BNY Mellon client relationships in each category. // Fortune magazine, May 2013; Global 500 data // CIA World Factbook, IMF, annual reports // Reprinted with permission of Pensions
Slide 27: Disclosures
UBS Global Financial Services Conference 2014 Disclosures BNY Mellon Investment Management is one of the world’s leading investment management organizations and one of the top U.S. wealth managers, encompassing BNY Mellon’s affiliated investment management firms, wealth management organization and g
Slide 28: Disclosures
UBS Global Financial Services Conference 2014 Disclosures BNY Mellon Investment Strategy & Solutions Group (“ISSG”) is part of The Bank of New York Mellon (“Bank”). In the US, ISSG offers products and services through the Bank, including investment strategies that are developed by affiliated BNY Mel
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