The Bank Of New York Mellon Corporation · NYSE:BNY
The Bank Of New York Mellon — Bank of New York Mellon — Barclays Global Financial Services Conference 2014
32 slides from The Bank Of New York Mellon's conference presentation, Sep 9, 2014
Slide 1: Barclays Global Financial Services Conference 2014
September 9, 2014 Barclays Global Financial Services Conference 2014 Gerald Hassell Chairman and Chief Executive Officer Exhibit 99.1 POWERING GLOBAL INVESTMENTS
Slide 2: Cautionary Statement
Barclays 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
Slide 3: The Investments Company for the World: Twin Engines of Growth
Barclays Global Financial Services Conference 2014 Investments Company for the World 2 1 Fully phased-in advanced approach at June 30, 2014. This represents a Non-GAAP measure. See Appendix for reconciliation. Additional disclosure regarding this measure and other Non-GAAP adjusted measures is avail
Slide 4: Expertise Across the Investment Lifecycle
Barclays Global Financial Services Conference 2014 The Investments Company for the World 3 NOTE: See additional disclosures in Appendix. Expertise Across the Investment Lifecycle
Slide 5: Leveraging the breadth of Investment Services
Barclays Global Financial Services Conference 2014 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 6: Continued Fee Income Growth
Barclays Global Financial Services Conference 2014 Continued Fee Income Growth 5 Performance Drivers* • AUM, +40% Performance Drivers* • Higher core Asset Servicing, Clearing Services and Treasury Services fees: 1 Investment Management fees are Non-GAAP adjusted: excludes the impact of money market
Slide 7: Although the Macro Environment Has Been Challenging…
Barclays Global Financial Services Conference 2014 Although the Macro Environment Has Been Challenging… 6 Performance Drivers High-margin revenue share represents high-margin revenue as a percentage of GAAP revenue, adjusted for one-time items. High-margin revenue is Non-GAAP adjusted and consists o
Slide 8: … Delivered Operating Margin Improvement
Barclays Global Financial Services Conference 2014 … Delivered Operating Margin Improvement 7 26 % 26 % Performance Drivers LTM operating margin improved over 110 bps through both revenue growth and expense actions In 2Q14, expenses declined 2% sequentially and 4% year-over-year We will continue agg
Slide 9: Significant Further Upside to Higher Short-Term Interest Rates
Barclays Global Financial Services Conference 2014 Significant Further Upside to Higher Short-Term Interest Rates 1 Assumes no change in client behavior. 8 2 Both short-term and long-term rates move in four equal quarterly increments. See Quarterly Report on Form 10-Q for the quarter ended June 30,
Slide 10: Strong Capital Position and Capital Return
Barclays Global Financial Services Conference 2014 Strong Capital Position and Capital Return 9 BNY Mellon’s Common Shares Outstanding Below Pre-Crisis Level Top Shareholder Return of Capital Under 2014 CCAR SOURCE: Federal Reserve – Dodd-Frank Act Stress Test (DFAST) 2014: Supervisory Stress Test M
Slide 11: Investment Management – Diverse AUM and Fee Mix
Barclays Global Financial Services Conference 2014 Investment Management – Diverse AUM and Fee Mix * Minority ownership or joint venture. See additional Investment Management disclosures in Appendix. NEWTON CASH INVESTMENT STRATEGIES SIGULER GUFF* MELLON CAPITAL THE BOSTON COMPANY CENTER- SQUARE STA
Slide 12: Investment Management – Strong Margins
Barclays Global Financial Services Conference 2014 Investment Management – Strong Margins 11 NOTE: Pre-tax margins adjusted to exclude amortization expense with revenues net of distribution expense, and non-recurring items where applicable. Average excludes BNY Mellon. ¹ Adjusted to exclude fee waiv
Slide 13: Investment Management & Investment Services Combined Platform
Barclays Global Financial Services Conference 2014 Investment Management & Investment Services 12 Combined Platform Continues to Drive Performance Investment Management Central to BNY Mellon’s Franchise Asset Flows Enhanced by BNY Mellon’s Platform Acquisitions Thriving Under BNY Mellon’s Ownership
Slide 14: Continuing to Strengthen Our Franchise
Barclays Global Financial Services Conference 2014 Continuing to Strengthen Our Franchise 13 Organizational Realignment Curtis Arledge • CEO Investment Management Brian Shea • Head of Client Service Delivery and Client Technology Solutions Enhancing Our Board Jeffrey Goldstein (April 2014) • Signifi
Slide 15: Strong Shareholder Returns
Strong Shareholder Returns 14 NOTE: G-SIB Peer Group includes: HSBC, JPM, BARC, BNP, C, DBK, BAC, CSGN, GS, ACA, MTU, MS, RBS, UBS, Bank of China, BBVA, ICBC, MFG, NDA, SAN, GLE, STAN, STT, SMFG, UCG, WFC. Proxy Peers include: BLK, SCHW, BEN, JPM, MS, NTRS, PNC, PRU, STT, USB, WFC. Barclays Global F
Slide 16: The Investments Company for the World: Twin Engines of Growth
Barclays Global Financial Services Conference 2014 Investments Company for the World 15 1 Fully phased-in advanced approach at June 30, 2014. This represents a Non-GAAP measure. See Appendix for reconciliation. Additional disclosure regarding this measure and other Non-GAAP adjusted measures is avai
Slide 17: BNY Mellon
yy Ka BNY MELLON
Slide 18: Appendix
APPENDIX
Slide 19: BNY Mellon
BNY MELLON
Slide 20: Reconciliation Schedule: Investment Management & Performance Fees
Barclays Global Financial Services Conference 2014 Reconciliation Schedule ($millions) Investment Management & Performance Fees 2011 2013 LTM 6/30/13 LTM 6/3014 Investment management and performance fees $2,998 $3,385 $3,281 $3,449 (+) Investment management money market fee waivers 225 276 221 309 (
Slide 21: Reconciliation Schedule: High Margin Revenue as a Percent of Total Revenue
Barclays Global Financial Services Conference 2014 Reconciliation Schedule ($millions) High Margin Revenue as a Percent of Total Revenue 2011 2013 LTM 6/30/13 LTM 6/3014 Total Revenue - Adjusted $14,798 $15,039 $14,791 $14,961 Foreign exchange & other trading 848 674 690 571 Net interest revenue (no
Slide 22: Reconciliation Schedule: Operating Margin
Barclays Global Financial Services Conference 2014 Reconciliation Schedule ($millions) LTM 6/30/13 LTM 6/30/14 Total Revenue - GAAP $14,975 $14,786 Net securities gains(losses) (152) (100) Loss (gain) on equity investments & asset sales (184) 175 Accretable discount (237) (194) Earnings attributable
Slide 23: Reconciliation Schedule: Net Interest Margin (FTE)
Barclays Global Financial Services Conference 2014 Reconciliation Schedule 22 Net Interest Margin (FTE) ($millions) 3Q13 4Q13 1Q14 2Q14 2Q14 LTM FTE - fully taxable equivalent Net Interest Margin (LTM-6/30/14) Net Interest Revenue (FTE) $787 $781 $744 $736 $3,048 Average Interest-earning Assets $285
Slide 24: BNY Mellon
BNY MELLON
Slide 25: Reconciliation Schedule: Pre-tax Operating Margin – Investment Management
Barclays Global Financial Services Conference 2014 Reconciliation Schedule 24 Pre-tax Operating Margin – Investment Management ($millions) 1Q13 2Q13 3Q13 4Q13 FY 2013 Income before taxes – GAAP $206 $271 $225 $266 $968 Add: Amortization of intangible assets 39 39 35 35 148 Add: Money market fee waiv
Slide 26: Reconciliation Schedule: Noninterest Expense
Barclays Global Financial Services Conference 2014 Reconciliation Schedule 1 Represents a non-GAAP adjusted measure. Additional disclosure regarding this and other non-GAAP adjusted measures is available in the Corporation’s reports filed with the SEC, including our Form 10-Q for the quarter ended J
Slide 27: Reconciliation Schedule: Basel III Capital Components and Ratios
Barclays Global Financial Services Conference 2014 Reconciliation Schedule ($millions) Basel III Capital Components and Ratios at June 30, 2014 Fully phased-in Basel III Common Equity $36,764 Goodwill and Intangible Assets (19,925) Net Pension Fund Assets (106) Equity Method Investments (430) Deferr
Slide 28: Dodd-Frank Act Stress Test – Severely Adverse Scenario
Barclays 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 S
Slide 29: Disclosures
Barclays Global Financial Services Conference 2014 Disclosures All statistics are global and represent the minimum number of BNY Mellon client relationships in each category. 28 // Fortune magazine, May 2013; Global 500 data // CIA World Factbook, IMF, annual reports // Reprinted with permission of
Slide 30: Asset Servicing rankings and sources
Barclays 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 Cu
Slide 31: Disclosures
Barclays 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
Slide 32: Disclosures
Barclays 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 BN
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