The Bank Of New York Mellon Corporation · NYSE:BNY

The Bank Of New York Mellon — Bank of New York Mellon — Q1 2015 Earnings Presentation

23 slides from The Bank Of New York Mellon's earnings presentation, Apr 22, 2015

  1. Slide 1: BNY Mellon First Quarter 2015 Financial Highlights

    BNY Mellon First Quarter 2015 Financial Highlights April 22, 2015

  2. Slide 2: Cautionary Statement

    2 First Quarter 2015 – 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

  3. Slide 3: First Quarter 2015 Financial Highlights

    3 First Quarter 2015 – Financial Highlights First Quarter 2015 Financial Highlights • Earnings per common share of $0.67 • Earnings per common share +18% year-over-year • Total revenue +6% year-over-year; +4% year-over-year on an adjusted basis1 • Total expense (1%) year-over-year, (23%) sequentiall

  4. Slide 4: First Quarter 2015 Key Performance Drivers

    4 First Quarter 2015 – Financial Highlights First Quarter 2015 Key Performance Drivers • Earnings per common share of $0.67, +18%, driven by foreign exchange and other trading revenue and expense control • Investment management and performance fees +1%, or +6% on a constant currency basis (Non-GAAP)

  5. Slide 5: Summary Financial Results for First Quarter 2015

    5 First Quarter 2015 – Financial Highlights Summary Financial Results for First Quarter 2015 Growth vs. $ in millions, except per share data 1Q15 4Q14 1Q14 1Q14 4Q14 Revenue $ 3,851 $ 3,689 $ 3,647 6 % 4 % Expenses $ 2,700 $ 3,524 $ 2,739 (1 )% (23 )% Income before income taxes $ 1,149 $ 164 $ 926 2

  6. Slide 6: Summary Financial Results for First Quarter 2015 (Non-GAAP)

    6 First Quarter 2015 – Financial Highlights Summary Financial Results for First Quarter 2015 (Non-GAAP)1 Growth vs. $ in millions, except per share data 1Q15 4Q14 1Q14 1Q14 4Q14 Revenue $ 3,761 $ 3,665 $ 3,627 4% 3 % Expenses $ 2,637 $ 2,651 $ 2,681 (2)% (1 )% Operating leverage 533 bps 315 bps Inco

  7. Slide 7: Investment Management Metrics

    7 First Quarter 2015 – Financial Highlights Investment Management Metrics Change in Assets Under Management (AUM)1 $ in billions 1Q15 LTM 1Q15 Beginning balance of AUM $1,710 $1,620 Net inflows (outflows): Long-Term: Equity (6 ) (16 ) Fixed income 4 7 Index 8 13 Liability-driven investments2 8 33 Al

  8. Slide 8: Investment Management

    8 First Quarter 2015 – Financial Highlights Investment Management . Growth vs. Drivers ($ in millions) 1Q15 1Q14 4Q14 Investment management and performance fees $ 850 1 % (4 )% Investment management fees  YoY: +7% on a constant currency basis (Non-GAAP)3, driven by higher equity market values, the

  9. Slide 9: Investment Services Metrics

    9 First Quarter 2015 – Financial Highlights Investment Services Metrics Growth vs. 1Q15 1Q14 4Q14 Assets under custody and/or administration at period end (trillions)1,2 $ 28.5 2 % — % Market value of securities on loan at period end (billions)3 $ 291 10 % 1 % Average loans (millions) $ 37,699 20 %

  10. Slide 10: Investment Services

    10 First Quarter 2015 – Financial Highlights Investment Services Growth vs. Drivers ($ in millions) 1Q15 1Q14 4Q14 Investment services fees: Asset Servicing  YoY: Net new business, largely driven by Global Collateral Services and securities lending, and market values, partially offset by unfavorabl

  11. Slide 11: Fee and Other Revenue

    11 First Quarter 2015 – Financial Highlights Fee and Other Revenue Growth vs. Drivers ($ in millions) 1Q15 1Q14 4Q14 Asset servicing1 $ 1,038 3 % 2 % Asset Servicing  YoY: Net new business, largely driven by Global Collateral Services and securities lending, and market values, partially offset by u

  12. Slide 12: Net Interest Revenue

    12 First Quarter 2015 – Financial Highlights Net Interest Revenue Growth vs. Drivers ($ in millions) 1Q15 1Q14 4Q14 Net interest revenue (non-FTE) $ 728 — % 2 % Net Interest Revenue  YoY: Increase in deposits drove growth in securities portfolio and offset impact of lower yields  QoQ: Change in th

  13. Slide 13: Noninterest Expense

    13 First Quarter 2015 – Financial Highlights Noninterest Expense Growth vs. Drivers ($ in millions) 1Q15 1Q14 4Q14 Staff $ 1,485 (2 )% 5 %  YoY: Lower expenses in all categories, except sub- custodian which is volume-related and other expense which includes the impact of the new EU Single Resolutio

  14. Slide 14: Capital Ratios Highlights

    14 First Quarter 2015 – Financial Highlights Capital Ratios Highlights 3/31/15 12/31/14 Regulatory capital ratios:1,2,3  Capital ratios remain strong  Advanced Approach ratios were impacted by increases in operational risk RWA  1Q15: Net CET1 increased $192 million  Repurchased 10.3 million comm

  15. Slide 15: Appendix

    APPENDIX

  16. Slide 16: Expense & Pre-Tax Operating Margin - Non-GAAP Reconciliation

    16 First Quarter 2015 – Financial Highlights Expense & Pre-Tax Operating Margin - Non-GAAP Reconciliation 1Q15 4Q14 1Q14 ($ in millions) Total revenue – GAAP $ 3,851 $ 3,689 $ 3,647 Less: Net income attributable to noncontrolling interests of consolidated investment management funds 90 24 20 Total r

  17. Slide 17: Return on Tangible Common Equity Reconciliation

    17 First Quarter 2015 – Financial Highlights Return on Tangible Common Equity Reconciliation 1Q15 4Q14 1Q14 ($ in millions) Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP $ 766 $ 209 $ 661 Add: Amortization of intangible assets, net of tax 43 47 49 Net

  18. Slide 18: Earnings Per Share & GAAP Revenue Reconciliation

    18 First Quarter 2015 – Financial Highlights Earnings Per Share & GAAP Revenue Reconciliation Earnings per share Growth vs. ($ in dollars) 1Q15 4Q14 1Q14 1Q14 4Q14 GAAP results $ 0.67 $ 0.18 $ 0.57 Add: Litigation and restructuring charges — 0.53 — Less: Benefit primarily related to a tax carryback

  19. Slide 19: Capital Ratio Footnotes

    19 First Quarter 2015 – Financial Highlights Capital Ratio Footnotes 1 March 31, 2015 consolidated regulatory capital ratios are preliminary. Please reference slides 20 and 21. See the “Capital Ratios” section in the Earnings Release for additional detail. 2 Risk-based capital ratios at Dec. 31, 201

  20. Slide 20: Estimated Fully Phased-In SLR - Non-GAAP Reconciliation

    20 First Quarter 2015 – Financial Highlights Estimated Fully Phased-In SLR1 - Non-GAAP Reconciliation ($ in millions) 12/31/14 3/31/152 Total estimated fully phased-in Basel III CET1 - Non-GAAP $ 15,931 $ 16,123 Additional Tier 1 capital 1,550 1,560 Total Tier 1 capital $ 17,481 $ 17,683 Total lever

  21. Slide 21: Estimated Fully Phased-In Basel III CET1 Ratio - Non-GAAP

    21 First Quarter 2015 – Financial Highlights Estimated Fully Phased-In Basel III CET1 Ratio - Non-GAAP1,2 1 Regulatory capital ratios for March 31, 2015 are preliminary. 2 Risk-based capital ratios at Dec. 31, 2014 and March 31, 2015 include the net impact of the total consolidated assets of certain

  22. Slide 22: Pre-Tax Operating Margin – Investment Management Reconciliation

    22 First Quarter 2015 – Financial Highlights Pre-Tax Operating Margin – Investment Management Reconciliation 1Q15 4Q14 1Q14 ($ in millions) Income before income taxes – GAAP $ 264 $ 239 $ 246 Add: Amortization of intangible assets 25 30 31 Money market fee waivers 34 34 35 (Recovery) related to inve

  23. Slide 23: Investment Management and Performance Fees - Non-GAAP

    23 First Quarter 2015 – Financial Highlights Investment Management and Performance Fees - Non-GAAP Investment management and performance fees - Consolidated Growth vs. ($ in millions) 1Q15 1Q14 1Q14 Investment management and performance fees - GAAP $ 854 $ 843 1 % Impact of changes in foreign curren

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