The Bank Of New York Mellon Corporation · NYSE:BNY
The Bank Of New York Mellon — Q3 2021 Earnings Presentation
19 slides from The Bank Of New York Mellon's earnings presentation, Oct 19, 2021
Slide 1: Third Quarter 2021 Financial Highlights
Third Quarter 2021 Financial Highlights October 19, 2021
Slide 2: 3Q21 Financial Highlights
3Q21 Financial Highlights Revenue EPS Revenue up 5% year-over-year Fee revenue up 6%, excluding money market $4.04 bn $1.04 fee (“MMF”) waivers, up 11%(a) Net interest revenue down 9% Expense up 9% year-over-year, up 6%(a) excluding the Pre-tax income Pre-tax margin impact of higher litigation reser
Slide 3: 3Q21 Financial Highlights
3Q21 Financial Highlights ($ millions, except per share data) 3Q21 2Q21 3Q20 TOTAL REVENUE $4,035 2% 5% Fee revenue 3,265 1 6 (a) 11% excluding impact of MMF Other revenue 129 N/M N/M waivers Net interest revenue 641 (1) (9) (a) Provision for credit losses (45) N/M N/M 6% excluding impact of higher
Slide 4: 3Q21 Key Financial Trends
3Q21 Key Financial Trends IS revenue I&WM revenue Noninterest ($ millions) ($ millions) expense +3% ($ millions) (a) 6% excluding +12% +9% impact of higher 2,927 2,979 3,010 litigation reserves 999 1,032 Net interest 681 643 632 918 2,778 2,918 Net interest 47 2,681 revenue 47 47 revenue Total fee a
Slide 5: Capital and Liquidity
Capital and Liquidity 3Q21 2Q21 3Q20 Consolidated regulatory capital ratios:(a) Common Equity Tier 1 (“CET1”) ratio 11.7% 12.6% 13.0% Tier 1 capital ratio 14.4 15.2 15.7 Total capital ratio 15.3 16.0 16.6 Tier 1 leverage ratio 5.7 6.0 6.5 (b) Supplementary leverage ratio (“SLR“) 7.0 7.5 8.5 Average
Slide 6: Net Interest Revenue
Net Interest Revenue DRIVERS OF SEQUENTIAL NIR CHANGE ($ millions) USD LIBOR AVERAGE (%) (1)% 0.16 645 0.10 641 0.13 0.09 - Lower 1m 3m - Lower + Lower + Other interest securities deposit earning- portfolio and asset yields, funding US TREASURY AVERAGE (%) balances partially costs driven by offset b
Slide 7: Balance Sheet Trends
Balance Sheet Trends ($ billions) AVERAGE DEPOSITS A V E R A G E I N T E R E S T- +14% EARNING ASSETS (2)% 325 319 279 +6% 239 Interest-bearing 233 deposits (2)% 212 Interest-bearing (0.05)% (0.08)% deposits rate 388 381 (0.08)% Noninterest-bearing 358 61 61 deposits Loans 68 86 86 54 7 6 3Q20 2Q21
Slide 8: Noninterest Expense
Noninterest Expense ($ millions) 3Q21 2Q21 3Q20 Noninterest expense up 9% year-over-year, (a) Staff $1,584 4% 8% up 6% excluding the impact of higher litigation reserves Software and equipment 372 2 9 Professional, legal and other purchased services 363 — 2 Excluding the impact of litigation reserve
Slide 9: Investment Services
Investment Services Asset Servicing up year-over-year primarily on higher market FINANCIAL HIGHLIGHTS 3Q21 2Q21 3Q20 ($ millions unless otherwise noted) values, strategic equity investment gains, higher client activity Total revenue by line of business: and foreign exchange revenue, partially offset
Slide 10: Investment Services - Revenue Drivers
Investment Services - Revenue Drivers ($ millions) +6% +5% 1,437 (8)% 1,354 538 566 435 +1% 400 +1% 323 326 277 281 3Q20 3Q21 3Q20 3Q21 3Q20 3Q21 3Q20 3Q21 3Q20 3Q21 ASSET ISSUER TREASURY CLEARANCE AND SERVICING PERSHING SERVICES SERVICES COLLATERAL + Market levels + Market levels - MMF waivers + Pa
Slide 11: Investment and Wealth Management
Investment and Wealth Management FINANCIAL HIGHLIGHTS ($ millions unless otherwise noted) 3Q21 2Q21 3Q20 Investment Management up year-over-year primarily on Total revenue by line of business: higher market values and equity income, strategic Investment Management $727 4% 13% equity investment gains
Slide 12: Other Segment
Other Segment FINANCIAL HIGHLIGHTS 3Q21 2Q21 3Q20 Total revenue includes corporate treasury and other ($ millions) Fee revenue $12 $13 $7 investment activity, including hedging activity which has Other revenue 23 9 13 an offsetting impact between fee and other revenue and Total fee and other revenue
Slide 13: Appendix
Se BNY MELLON Appendix
Slide 14: Footnotes
Footnotes 3Q21 Financial Highlights, Page 3 b. Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninterest expense. Capital and Liquidity, Page 5 a. Regulatory capital ratios for Sept. 30, 2021 are preliminary. For our CET1, Tier 1
Slide 15: Money Market Fee Waiver Impact
Money Market Fee Waiver Impact ($ millions) 3Q21 2Q21 1Q21 4Q20 3Q20 Investment services fees: Asset servicing fees $(40) $(42) $(22) $(13) $(1) Clearing services fees (84) (88) (74) (64) (57) Issuer services fees (16) (15) (10) (6) (1) Treasury services fees (2) (3) (3) (2) (3) Total investment ser
Slide 16: Return on Common Equity and Tangible Common Equity Reconciliation
Return on Common Equity and Tangible Common Equity Reconciliation ($ millions) 3Q21 2Q21 3Q20 Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP $881 $991 $876 Add: Amortization of intangible assets 19 20 26 Less: Tax impact of amortization of intangible a
Slide 17: Pre-tax Operating Margin and Noninterest Expense Reconciliations
Pre-tax Operating Margin Reconciliation – Investment and Wealth Management Business ($ millions) 3Q21 2Q21 3Q20 Income before income taxes – GAAP $348 $326 $245 Total revenue – GAAP $1,032 $999 $918 Less: Distribution and servicing expense 76 74 85 Adjusted total revenue, net of distribution and ser
Slide 18: Cautionary Statement
Cautionary Statement A number of statements in this discussion and the responses to your questions may contain “forward-looking statements,” including statements about The Bank of New York Mellon Corporation’s (the “Corporation”) capital plans, strategic priorities, financial goals, organic growth,
Slide 19: Ye BNY MELLON
Ye BNY MELLON
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