The Bank Of New York Mellon Corporation · NYSE:BNY
The Bank Of New York Mellon — Bank of New York Mellon — Morgan Stanley Financials Conference 2015
22 slides from The Bank Of New York Mellon's conference presentation, Jun 10, 2015
Slide 1: Maximizing Returns and Creating Value
MAXIMIZING RETURNS AND CREATING VALUE Morgan Stanley Financials Conference 2015 Brian Shea Chief Executive Officer, Investment Services Todd Gibbons Chief Financial Officer June 10, 2015
Slide 2: Cautionary Statement
1Morgan Stanley – Financials Conference 2015 Cautionary Statement A number of statements in our presentations, the accompanying slides and the responses to your questions are ?forward-looking statements.? Words such as “estimate”, “forecast”, “project”, “anticipate”, “target”, “expect”, “intend”, “c
Slide 3: BNY Mellon – The Investments Company for the World
2Morgan Stanley – Financials Conference 2015 NOTE: Financial data for Investment Management and Investment Services reflect LTM 1Q15 and exclude amortization of intangible assets (Investment Services pre-tax income excludes impact of 4Q14 litigation charge). Revenue and pre-tax income are non-GAAP m
Slide 4: Delivering Innovative Investment Solutions Globally
3Morgan Stanley – Financials Conference 2015 Invested in – Delivering Innovative Investment Solutions Globally Pension Funds Not-for-Profits and Endowments Alternative Investment Managers Shadow Banking Exchanges Central Counterparties (CCP)Central Securities Depositories (CSD) Banks Broker-Dealers
Slide 5: Expertise, Scale and Client Experience
4Morgan Stanley – Financials Conference 2015 Invested in – Expertise, Scale and Client Experience • Integrity and focus on doing what’s right • Financial strength and stability • Diverse revenue streams, reduced volatility • High level of reliability and transparency • Risk management excellence t M
Slide 6: Strategic Priorities to Drive Growth
5Morgan Stanley – Financials Conference 2015 Strategic Priorities to Drive Growth Achieving Our Earnings, Expense and Operating Leverage Goals Priorities Progress Driving Revenue Growth • Leveraging Expertise and Scale • Delivering Innovative Strategic Solutions to Clients • Strategic Platform Inves
Slide 7: Investment Services Strategic Goals and Priorities
6Morgan Stanley – Financials Conference 2015 Investment Services Strategic Goals and Priorities - Extend leadership in each business - Deliver cross-business client solutions - Strategic platform investments in high growth markets - Increase return on technology investment - Drive technology solutio
Slide 8: Delivering Client Solutions, Creating Growth
7Morgan Stanley – Financials Conference 2015 Delivering Client Solutions, Creating Growth Growth Opportunities and Strategies • Fund manager middle-office services • Insurance accounting • Alternative investment manager capabilities • Risk aggregation, managed account solutions • Technology solution
Slide 9: Market Opportunity
8Morgan Stanley – Financials Conference 2015 Market Opportunity1 Core Principles Global Private Wealth - $53T in global high net worth assets, growing at ~10% - Scalable, global solutions Anchor clients Scalable platform solutions Cross-business solutions Shared economies of scale for all clients Fu
Slide 10: Strategic Investments to Digitize
9Morgan Stanley – Financials Conference 2015 Strategic Investments to Digitize BNY Mellon Digital Pulse Proprietary Big Data Platform Captures, stores and analyzes data from transaction processes and business events leading to: Increased Efficiency Improved Client Experience Lower Costs BXP Platform
Slide 11: NEXEN Open-Architecture Platform
10Morgan Stanley – Financials Conference 2015 NEXEN Open-Architecture Platform A foundation for clients and the industry to build upon DIGITAL INTERACTIONS INNOVATIVE SOLUTIONS OPERATIONAL BACKBONE BNY Mellon eXtreme Platform Our secure, private cloud-based platform that lowers our costs and deliver
Slide 12: Business Improvement Process: Delivering Operating Margin Improvement
11Morgan Stanley – Financials Conference 2015 20% 24% 28% 32% LTM 1Q14 LTM 1Q15 Business Improvement Process… Operating Margin1 29% % ? Business Excellence ? Continuous Process Improvement ? Client Technology Solutions Excellence ? Corporate Services ? Discretionary Activity 1 Operating margin is no
Slide 13: Transformation Process Driving Productivity Gains and Greater Efficiency
12Morgan Stanley – Financials Conference 2015 Transformation Process Driving Productivity Gains and Greater Efficiency Productivity and Efficiency Gains Funding: ? Organic business growth ? Merit increase (2H15) ? Incremental regulatory compliance costs ? Resolution Recovery planning in 2H15 ? Europ
Slide 14: Generating Excess Capital and Deploying Capital Effectively
13Morgan Stanley – Financials Conference 2015 Generating Excess Capital and Deploying Capital Effectively Share Repurchases 38% ($5.2B) Dividends 22% ($3.0B) Retention 41% ($5.6B) Capital Deployment (cumulative: 2011 – 1Q 2015) Gross Capital Generation (cumulative: 2011 – 1Q 2015)$B $3.2 $7.1 $9.9 $
Slide 15: Focused on Achieving our Financial Goals
14Morgan Stanley – Financials Conference 2015 Focused on Achieving our Financial Goals Drivers to Achieve Financial Goals Business performance, net interest revenue and markets ?? Revenue growth initiatives ? Expense reduction initiatives ? Capital management ? Regulatory expenses – Tax rate ? 2014
Slide 16: BNY Mellon | Invested in
— BNY MELLON | Invested
Slide 17: Appendix
Appendix
Slide 18: Business – Revenue and Pre-Tax Income
17Morgan Stanley – Financials Conference 2015 Business – Revenue and Pre-Tax Income NOTE: Pre-tax metrics for Investment Services and Investment Management businesses exclude the impact of amortization of intangible assets (Investment Services pre-tax income excludes impact of 4Q14 litigation charge
Slide 19: Pre-Tax Income, Noninterest Expense & Operating Leverage – Non-GAAP
18Morgan Stanley – Financials Conference 2015 Pre-Tax Income, Noninterest Expense & Operating Leverage – Non-GAAP ($MM) LTM 1Q14 LTM 1Q15 Margin Expansion Total revenue – GAAP $15,066 $15,896 Less: Net income attributable to noncontrolling interests of consolidated investment management funds 85 154
Slide 20: Capital Generation & Deployment
19Morgan Stanley – Financials Conference 2015 Capital Generation & Deployment Capital Generation & Deployment ($B) 2011 2012 2013 2014 1Q15 Total Net Income $2.5 $2.4 $2.1 $2.6 $0.8 $10.5 Other Comprehensive Income (0.3) 1.0 (0.2) (0.7) (0.6) (0.8) Share Issuances (Benefit Plans) 0.3 0.3 0.5 0.6 0.3
Slide 21: Technology Awards and Recognition
20Morgan Stanley – Financials Conference 2015 Technology Awards and Recognition 1 Designation based on interviews by FImetrix, LLC, with senior level executives at more than 640 banks in nearly 100 countries. Awards Best Mobile Initiative – NETX360 and NETX Investor Mobile Waters Sell-Side Technolog
Slide 22: Disclosures
21Morgan Stanley – Financials Conference 2015 Disclosures Best Mobile Initiative – NETX360 and NETX Investor Mobile Waters Sell Side Technology: Recognized Pershing's Net360® and NetXInvestor® Mobile solutions as best for the second consecutive year in 2014. Asset Servicing Technology Vendor of the
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