The Bank Of New York Mellon Corporation · NYSE:BNY
The Bank Of New York Mellon — Q2 2020 Earnings Presentation
17 slides from The Bank Of New York Mellon's earnings presentation, Jul 15, 2020
Slide 1: Second Quarter 2020 Financial Highlights
Second Quarter 2020 Financial Highlights July 15, 2020
Slide 2: 2Q20 Financial Results
2Q20 Financial Results PROFITS RETURNS BALANCE SHEET › Net Income: $901 million › ROE: 9.4% › CET1: 12.6% › Diluted EPS: $1.01 › ROTCE: 18.5% (a) › Tier 1 Leverage: 6.2% › Returned $0.3 billion to shareholders in dividends (b) › Average LCR: 112% P R E - TA X I N C O M E T O TA L R E V E N U E ($ mi
Slide 3: 2Q20 Financial Highlights
2Q20 Financial Highlights ($ millions, except per share data) 2Q20 1Q20 2Q19 TO TAL R E V E N U E $4,010 (2)% 2% Fee revenue 3,167 (5) 2 Net interest revenue 780 (4) (3) Provision for credit losses 143 N/M N/M Noninterest expense 2,686 (1) 1 Income before income taxes 1,181 (4) (8) Net income applic
Slide 4: Capital and Liquidity
Capital and Liquidity 2Q20 1Q20 2Q19 Consolidated regulatory capital ratios: (a) Common Equity Tier 1 (“CET1”) ratio 12.6% 11.3% 11.1% Tier 1 capital ratio 15.4 13.5 13.2 Total capital ratio 16.3 14.3 14.0 Tier 1 leverage ratio 6.2 6.0 6.8 Supplementary leverage ratio (“SLR“) (b) 8.2 5.6 6.3 Average
Slide 5: Net Interest Revenue
Net Interest Revenue DRIVERS OF SEQUENTIAL NIR CHANGE ($ millions) 814 780 › Client-driven deposit growth more than offset by + Average + Securities + Hedging – Rate impact impact of lower interest rates across the yield curve deposit and loan and other (i.e. lower balances balances (largely yields
Slide 6: Credit Risk Profile
Credit Risk Profile AV E R A G E I N T E R E S T - › Well collateralized with assets under custody EARNING ASSETS ($358bn) › $1.1bn manufacturing; $1.1bn services and other; $0.1bn energy and utilities +24% +10% › 92% investment grade 358 › 74% secured, predominantly office and residential L O AN S
Slide 7: Noninterest Expense
Noninterest Expense ($ millions) 2Q20 1Q20 2Q19 › Noninterest expenses up year-over-year Staff $1,464 (1)% 3% › Primarily reflecting continued investments in Software and equipment 345 6 13 technology and higher staff and pension expenses, Professional, legal and other purchased services 337 2 - par
Slide 8: Investment Services
Investment Services FINANCIAL HIGHLIGHTS ($ millions unless otherwise noted) 2Q20 1Q20 2Q19 › Asset Servicing up year-over-year on higher foreign Total revenue by line of business: exchange and other trading revenue, higher client Asset Servicing $1,463 (4)% 5% volumes and a one-time fee, partially
Slide 9: Investment Services - Revenue Drivers
Investment Services - Revenue Drivers ($ millions) +5% (3)% +7% +4% +1% 1,463 446 431 340 295 1,397 317 284 572 578 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 ASSET ISSUER TREASURY CLEARANCE AND SERVICING PERSHING SERVICES SERVICES C O L L AT E R A L + FX and other trading + Money market fund
Slide 10: Investment and Wealth Management
Investment and Wealth Management FINANCIAL HIGHLIGHTS ($ millions unless otherwise noted) 2Q20 1Q20 2Q19 › Investment Management (formerly Asset Management) Total revenue by line of business: decreased year-over-year primarily reflecting the Investment Management (formerly Asset Management) $621 -%
Slide 11: Other Segment
Other Segment FINANCIAL HIGHLIGHTS ($ millions unless otherwise noted) 2Q20 1Q20 2Q19 › Fee revenue increased year-over-year primarily $29 $21 $24 reflecting higher equity investment income, partially Fee revenue Net securities gains 9 9 7 offset by sequentially lower foreign currency translation To
Slide 12: Appendix
Ye BNY MELLON Appendix
Slide 13: Footnotes
Footnotes 2Q20 Financial Highlights, Page 3 (a) Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninterest expense. (b) See page 14 for corresponding reconciliation of this non-GAAP measure. Capital and Liquidity, Page 4 (a) Regul
Slide 14: Return on Common Equity and Tangible Common Equity Reconciliation
Return on Common Equity and Tangible Common Equity Reconciliation ($ millions) 2Q20 1Q20 2Q19 Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP $901 $944 $969 Add: Amortization of intangible assets 26 26 30 Less: Tax impact of amortization of intangible a
Slide 15: Pre-tax Operating Margin Reconciliation – Investment and Wealth Management Business
Pre-tax Operating Margin Reconciliation – Investment and Wealth Management Business ($ millions) 2Q20 1Q20 2Q19 Income before income taxes – GAAP $221 $194 $260 Total revenue – GAAP $886 $898 $913 Less: Distribution and servicing expense 86 91 94 Adjusted total revenue, net of distribution and servi
Slide 16: Cautionary Statement
Cautionary Statement 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,”
Slide 17: Ye BNY MELLON
Ye BNY MELLON
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