The Bank Of New York Mellon Corporation · NYSE:BNY
The Bank Of New York Mellon — Q1 2022 Earnings Presentation
17 slides from The Bank Of New York Mellon's earnings presentation, Apr 18, 2022
Slide 1: 1Q22 Financial Highlights
1Q22 Financial Highlights APRIL 18, 2022
Slide 2: 1Q22 Financial Highlights
1Q22 Financial Highlights Revenue EPS • Revenue flat YoY, up 2%(c) excluding $88mm reduction related to Russia $ 3,926mm $ 0.86(a) – Fee revenue down 3% YoY, flat(c) excluding the reduction related to Russia – Net interest revenue up 7% YoY Pre-tax income Pre-tax margin • Expense up approximately 5.
Slide 3: 1Q22 Financial Results
1Q22 Financial Results 1Q22 vs. $mm, except per share data or unless otherwise noted 1Q22 4Q21 1Q21 4Q21 1Q21 Fee revenue $3,158 $3,231 $3,257 (2)% (3)% Investment and other revenue 70 107 9 N/M N/M Net interest revenue 698 677 655 3% 7% Total revenue $3,926 $4,015 $3,921 (2)% — Provision for credit
Slide 4: Capital and Liquidity
Capital and Liquidity 1Q22 4Q21 1Q21 Consolidated regulatory capital ratios: (a) Tier 1 leverage ratio 5.3% 5.5% 5.8% (b) Supplementary leverage ratio ("SLR") 6.2 6.6 8.1 Common Equity Tier 1 ratio – Advanced Approaches 10.4 11.4 12.6 Common Equity Tier 1 ratio – Standardized Approach 10.1 11.2 12.6
Slide 5: Net Interest Revenue and Balance Sheet Trends
Net Interest Revenue and Balance Sheet Trends Net Interest Revenue 1Q22 vs. ($mm) $bn, avg. 1Q22 4Q21 1Q21 +7% Deposits: +3% Noninterest-bearing $90 (1)% 8% Interest-bearing 223 (3)% (9)% 677 698 Total deposits $313 (3)% (5)% 655 Interest-earning assets: Cash and reverse repo 144 (5)% (18)% Loans 67
Slide 6: Noninterest Expense
Noninterest Expense 1Q22 vs. $mm, unless otherwise noted 1Q22 4Q21 1Q21 • Noninterest expense up approximately 5.5% YoY, primarily reflecting Staff $1,702 4% 6% higher investments in growth, infrastructure and efficiency initiatives and Software and equipment 399 5% 10% higher revenue-related expens
Slide 7: Securities Services
Securities Services 1Q22 vs. $mm, unless otherwise noted 1Q22 4Q21 1Q21 • Total revenue of $1,780mm flat YoY, up 4% YoY(a) excluding the Total revenue by line of business: reduction related to Russia Asset Servicing $1,512 4% 6% – Asset Servicing up 6% YoY, reflecting a gain on a strategic equity Is
Slide 8: Market and Wealth Services
Market and Wealth Services 1Q22 vs. $mm, unless otherwise noted 1Q22 4Q21 1Q21 • Total revenue of $1,202mm flat YoY Total revenue by line of business: – Pershing down 6% YoY, primarily reflecting the impact of prior year Pershing $570 3% (6)% lost business and elevated 1Q21 transaction activity, par
Slide 9: Investment and Wealth Management
Investment and Wealth Management 1Q22 vs. $mm, unless otherwise noted 1Q22 4Q21 1Q21 • Total revenue of $964mm down 3% YoY Total revenue by line of business: – Investment Management revenue of $658mm down 6% YoY, Investment Management $658 (7)% (6)% primarily reflects lower seed capital results, the
Slide 10: Other Segment
Other Segment $mm, unless otherwise noted 1Q22 4Q21 1Q21 • Total revenue includes corporate treasury and other investment activity, Fee revenue $8 $2 $9 including hedging activity which has an offsetting impact between fee and Investment and other revenue 12 19 (36) other revenue and net interest ex
Slide 11: Appendix
Appendix Se BNY MELLON Consider Everything
Slide 12: Footnotes
Footnotes Page 3 – 1Q22 Financial Results (a) Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninterest expense. Page 4 – Capital and Liquidity (a) Regulatory capital ratios for March 31, 2022 are preliminary. For our CET1, Tier
Slide 13: Money Market Fee Waivers Impact
Money Market Fee Waivers Impact 1Q22 4Q21 3Q21 2Q21 1Q21 Investment services fees (see table below) $(126) $(148) $(142) $(148) $(109) Investment management and performance fees (85) (116) (109) (115) (89) Distribution and servicing fees (11) (14) (11) (13) (13) Total fee revenue (222) (278) (262) (
Slide 14: Pre-tax Operating Margin and ROTCE Reconciliation – Impact of Notable Items
Pre-tax Operating Margin and ROTCE Reconciliation – Impact of Notable Items 1Q22 Results – Non-GAAP Results – GAAP Notable items (a) ex. notable items Total revenue $3,926 $(88) $4,014 Provision for credit losses 2 — 2 Noninterest expense 3,006 (1) 3,007 Income before income taxes $918 $(87) $1,005
Slide 15: Return on Common Equity and Tangible Common Equity Reconciliation
Return on Common Equity and Tangible Common Equity Reconciliation 1Q22 4Q21 1Q21 Net income applicable to common shareholders of The Bank of New York Mellon Corporation — GAAP $699 $822 $858 Add: Amortization of intangible assets 17 19 24 Less: Tax impact of amortization of intangible assets 4 5 6 A
Slide 16: Pre-tax Operating Margin Reconciliation – Investment and Wealth Management
Pre-tax Operating Margin Reconciliation – Investment and Wealth Management Business 1Q22 4Q21 1Q21 Income before income taxes — GAAP $212 $278 $278 Total revenue — GAAP $964 $1,020 $991 Less: Distribution and servicing expense 79 75 75 Adjusted total revenue, net of distribution and servicing expens
Slide 17: 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,”
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