The Bank Of New York Mellon Corporation · NYSE:BNY
The Bank Of New York Mellon — Q2 2022 Earnings Presentation
18 slides from The Bank Of New York Mellon's earnings presentation, Jul 15, 2022
Slide 1: 2Q22 Financial Highlights
2Q22 Financial Highlights JU LY 15, 2022
Slide 2: 2Q22 Financial Highlights
2Q22 Financial Highlights Revenue EPS EPS • Revenue up 7% YoY (excluding notable items) (a) – Fee revenue up 4% YoY $ 4,254mm $ 1.03 $ 1.15 – Net interest revenue up 28% YoY • Expense up 12% YoY, up 8%(b ) excluding the impact of notable items Pre-tax income Pre-tax margin • Provision for credit los
Slide 3: 2Q22 Financial Results
2Q22 Financial Results 2Q22 vs. $mm, except per share data or unless otherwise noted 2Q22 1Q22 2Q21 1Q22 2Q21 Fee revenue $3,339 $3,158 $3,224 6% 4% Investment and other revenue 91 70 91 N/M N/M Net interest revenue 824 698 645 18% 28% Total revenue $4,254 $3,926 $3,960 8% 7% Flat(a) Up 8%( a) exclu
Slide 4: Capital and Liquidity
Capital and Liquidity 2Q22 1Q22 2Q21 Consolidated regulatory capital ratios: (a) Tier 1 leverage ratio 5.2% 5.3% 6.0% Supplementary leverage ratio ("SLR") 6.2 6.2 7.5 Common Equity Tier 1 ratio – Advanced Approaches 10.0 10.4 12.7 Common Equity Tier 1 ratio – Standardized Approach 10.1 10.1 12.6 Con
Slide 5: Net Interest Revenue and Balance Sheet Trends
Net Interest Revenue and Balance Sheet Trends N e t I n t e re st R e v en ue 2Q22 vs. ($mm) $bn, avg. 2Q22 1Q22 2Q21 +28% Deposits: +18% Noninterest-bearing $92 2% 7% 824 Interest-bearing 219 (2)% (8)% 645 698 Total deposits $311 (1)% (4)% Interest-earning assets: Cash and reverse repo 145 — (12)%
Slide 6: Noninterest Expense
Noninterest Expense 2Q22 vs. $mm, unless otherwise noted 2Q22 1Q22 2Q21 • Noninterest expense up 12% YoY, of which 4% was due to higher Staff $1,623 (5)% 7% litigation reserves. The remainder of the increase primarily reflects higher Software and equipment 405 2% 11% investments in growth, infrastru
Slide 7: Securities Services
Securities Services 2Q22 vs. $mm, unless otherwise noted 2Q22 1Q22 2Q21 • Total revenue of $2,006mm up 12% YoY Total revenue by line of business: – Asset Servicing up 11% YoY, primarily reflecting higher net interest Asset Servicing $1,534 1% 11% revenue, lower money market fee waivers and higher fo
Slide 8: Market and Wealth Services
Market and Wealth Services 2Q22 vs. $mm, unless otherwise noted 2Q22 1Q22 2Q21 • Total revenue of $1,314mm up 10% YoY Total revenue by line of business: – Pershing up 8% YoY, primarily reflecting lower money market fee Pershing $636 12% 8% waivers and higher transaction activity, partially offset by
Slide 9: Investment and Wealth Management
Investment and Wealth Management 2Q22 vs. $mm, unless otherwise noted 2Q22 1Q22 2Q21 • Total revenue of $899mm down 10% YoY Total revenue by line of business: – Investment Management revenue of $603mm down 14% YoY, Investment Management $603 (8)% (14)% primarily reflecting the unfavorable impact of
Slide 10: Other Segment
Other Segment $mm, unless otherwise noted 2Q22 1Q22 2Q21 • Total revenue includes corporate treasury and other investment activity, Fee revenue $13 $8 $13 including hedging activity which has an offsetting impact between fee and Investment and other revenue 62 12 9 other revenue and net interest exp
Slide 11: Appendix
Appendix Se BNY MELLON Consider Everything
Slide 12: Footnotes
Footnotes Page 3 – 2Q22 Financial Results (b) Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninte rest expense. Page 4 – Capital and Liquidity (a) Regulatory capital ratios for June 30, 2022 are preliminary. For our CET1, Tier
Slide 13: Money Market Fee Waivers Impact
Money Market Fee Waivers Impact 2Q22 1Q22 4Q21 3Q21 2Q21 Investment services fees (see table below) $(26) $(126) $(148) $(142) $(148) Investment management and performance fees (40) (85) (116) (109) (115) Distribution and servicing fees (2) (11) (14) (11) (13) Total fee revenue (68) (222) (278) (262
Slide 14: Earnings per Share Reconciliation – Impact of Notable Items
Earnings per Share Reconciliation – Impact of Notable Items 2Q22 Results – Non-GAAP (b) Results – GAAP Notable items ex. notable items Total revenue $4,254 — $4,254 Provision for credit losses 47 — 47 Noninterest expense 3,112 103 3,009 Income before income taxes $1,095 $(103) $1,198 Net income appl
Slide 15: Pre-tax Operating Margin Reconciliation – Impact of Notable Items
Pre-tax Operating Margin Reconciliation – Impact of Notable Items 2Q22 Results – Non-GAAP (b) Results – GAAP Notable items ex. notable items Total revenue $4,254 — $4,254 Provision for credit losses 47 — 47 Noninterest expense 3,112 103 3,009 Income before income taxes $1,095 $(103) $1,198 Pre-tax o
Slide 16: Return on Common Equity and Tangible Common Equity Reconciliation
Return on Common Equity and Tangible Common Equity Reconciliation 2Q22 1Q22 2Q21 Net income applicable to common shareholders of The Bank of New York Mellon Corporation — GAAP $835 $699 $991 Add: Amortization of intangible assets 17 17 20 Less: Tax impact of amortization of intangible assets 4 4 5 A
Slide 17: ROTCE Reconciliation – Impact of Notable Items
Return on Common Equity and Tangible Common Equity Reconciliation – Impact of Notable Items 2Q22 Non-GAAP (a) Results Notable items ex. notable items Net income applicable to common shareholders of The Bank of New York Mellon Corporation — GAAP $835 $(100) $935 Add: Amortization of intangible assets
Slide 18: Cautionary Statement
Cautionary Statement A number of statements in The Bank of New York Mellon Corporation’s (the “Corporation”) presentations, the accompanying slide s and the responses to your questions are “forward-looking statements.” Words such as “estimate,” “forecast,” “project,” “anticipate,” “likely,” “target,
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