The Bank Of New York Mellon Corporation · NYSE:BNY
The Bank Of New York Mellon — Bank of New York Mellon — Q1 2018 Earnings Presentation
16 slides from The Bank Of New York Mellon's earnings presentation, Apr 19, 2018
Slide 1: BNY Mellon First Quarter 2018 Financial Highlights
BNY Mellon First Quarter 2018 Financial Highlights April 19, 2018
Slide 2: Cautionary Statement
2 First Quarter 2018 – Financial Highlights 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”, “co
Slide 3: First Quarter 2018 - Financial Highlights
3 First Quarter 2018 – Financial Highlights • Earnings of $1.14 billion and diluted earnings per common share of $1.10 • Total revenue of $4.2 billion, up 9% ◦ Fee revenue up 10% ◦ Net interest revenue up 16% ◦ Weaker U.S. dollar increased total revenue by ~2% • Total noninterest expense of $2.7 bil
Slide 4: First Quarter 2018 - Financial Highlights
4 First Quarter 2018 – Financial Highlights First Quarter 2018 - Financial Highlights Income Before Income Taxes ($mm) 1Q17 4Q17 1Q18 $1,206 $728 $1,444 (a) Represents a Non-GAAP measure. See Appendix for reconciliation. 20% Total Revenue ($mm) 1Q17 4Q17 1Q18 $3,843 $3,728 $4,178 9% Earnings Per Sha
Slide 5: Investment Services Business Highlights
5 First Quarter 2018 – Financial Highlights Investment Services Business Highlights Note: See page 13 for corresponding footnotes in Appendix. See page 14 "Change in Presentation" for additional information on the Investment Services business. N/M - not meaningful Business Performance Drivers year-o
Slide 6: Investment Management Business Highlights
6 First Quarter 2018 – Financial Highlights Investment Management Business Highlights Note: See page 13 for corresponding footnotes in Appendix. See page 14 "Change in Presentation" for additional information on the Investment Management business. N/M - not meaningful Business Performance Drivers ye
Slide 7: Other Segment
7 First Quarter 2018 – Financial Highlights Other Segment Business Performance DriversFinancial Highlights ($millions) 1Q18 4Q17 1Q17 Fee revenue $ 57 $ (221) $ 62 Net securities (losses) gains (49) (26) 10 Total fee and other revenue (loss) 8 (247) 72 Net interest (expense) (1) (36) (1) Total reven
Slide 8: Capital and Liquidity
8 First Quarter 2018 – Financial Highlights Capital and Liquidity March 31, 2018 Dec. 31, 2017 Consolidated regulatory capital ratios - fully phased-in basis: (a) (b) Advanced Approach: CET1 ratio 10.7% 10.3% Tier 1 capital ratio 12.7 12.3 Total capital ratio 13.5 13.0 Tier 1 leverage ratio 6.5 6.4
Slide 9: Net Interest Revenue
9 First Quarter 2018 – Financial Highlights Net Interest Revenue Growth vs. ($ in millions) 1Q18 4Q17 1Q17 Net interest revenue $ 919 8% 16% Add: Tax equivalent adjustment 6 N/M N/M Net interest revenue (FTE) – Non-GAAP (a) $ 925 7% 15% Net interest margin 1.22% 8 bps 9 bps Net interest margin (FTE)
Slide 10: Noninterest Expense
10 First Quarter 2018 – Financial Highlights Noninterest Expense Growth vs. ($ in millions) 1Q18 4Q17 1Q17 Staff (a) $ 1,576 (3)% 6% Professional, legal and other purchased services 291 (14) (7) Software and equipment 234 (21) 5 Net occupancy 139 (9) 2 Sub-custodian and clearing (b) 119 17 16 Distri
Slide 11: Fee and Other Revenue
11 First Quarter 2018 – Financial Highlights Fee and Other Revenue Growth vs. ($ in millions) 1Q18 4Q17 1Q17 Investment services fees: Asset servicing $ 1,113 3% 10% Securities lending 55 8 12 Clearing services 414 4 10 Issuer services 260 32 4 Treasury services 138 1 (1) Total investment services f
Slide 12: Appendix
Appendix
Slide 13: Footnotes
13 First Quarter 2018 – Financial Highlights Footnotes First Quarter 2018 - 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) Regulatory capital ratios for March 31, 2018 are
Slide 14: Change in Presentation
14 First Quarter 2018 – Financial Highlights Change in Presentation In 1Q18, we began presenting total revenue for each of the primary lines of business in our two principal businesses. The table to the right summarizes the products and services in each line of business and the primary types of reve
Slide 15: Return on Common Equity and Tangible Common Equity Reconciliation
15 First Quarter 2018 – Financial Highlights Return on Common Equity and Tangible Common Equity Reconciliation 1Q18 4Q17 1Q17($ in millions) Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP $ 1,135 $ 1,126 $ 880 Add: Amortization of intangible assets 49
Slide 16: Pre-tax Operating Margin Reconciliation - Investment Management Business
16 First Quarter 2018 – Financial Highlights Pre-tax Operating Margin Reconciliation - Investment Management Business 1Q18 4Q17 1Q17($ in millions) Income before income taxes – GAAP $ 381 $ 276 $ 277 Total revenue – GAAP $ 1,088 $ 1,048 $ 963 Less: Distribution and servicing expense 110 107 101 Adju
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