The Bank Of New York Mellon Corporation · NYSE:BNY
The Bank Of New York Mellon — Q4 2022 Earnings Presentation
20 slides from The Bank Of New York Mellon's earnings presentation, Jan 13, 2023
Slide 1: 4Q22 Financial Highlights
4Q22 Financial Highlights JANUARY 13, 2023
Slide 2: 2022 Financial Highlights
2022 Financial Highlights Revenue EPS • Revenue up 3% YoY, up 6%(a) excluding the impact of notable Excluding Excluding Reported Reported notable items notable items items (a) (a) $ 16.4bn $ 16.9bn $ 2.90 $ 4.59 – Fee revenue flat YoY – Net interest revenue up 34% YoY Pre-tax income Pre-tax margin •
Slide 3: 4Q22 Financial Results
4Q22 Financial Results = excluding the impact of notable items 4Q22 vs. $mm, except per share data or unless otherwise noted 4Q22 3Q22 4Q21 3Q22 4Q21 Fee revenue $3,222 $3,236 $3,231 —% —% Investment and other revenue (360) 117 107 N/M N/M Net interest revenue 1,056 926 677 14% 56% Total revenue $3,
Slide 4: 2022 Financial Results
2022 Financial Results = excluding the impact of notable items 2022 vs. $mm, except per share data or unless otherwise noted 2022 2021 2021 Fee revenue $12,955 $12,977 —% Investment and other revenue (82) 336 N/M Net interest revenue 3,504 2,618 34% Total revenue $16,377 $15,931 3% Up 6%(c) Provisio
Slide 5: Capital and Liquidity
Capital and Liquidity 4Q22 3Q22 4Q21 Consolidated regulatory capital ratios:(a) Tier 1 leverage ratio 5.8% 5.4% 5.5% Supplementary leverage ratio ("SLR") 6.8 6.3 6.6 Common Equity Tier 1 ratio – Advanced Approaches 11.2 10.1 11.4 Common Equity Tier 1 ratio – Standardized Approach 11.4 10.0 11.2 Cons
Slide 6: Net Interest Revenue and Balance Sheet Trends
Net Interest Revenue and Balance Sheet Trends Net Interest Revenue 4Q22 vs. ($mm) $bn, avg. 4Q22 3Q22 4Q21 +56% Deposits: +14% Noninterest-bearing $76 (11)% (17)% Interest-bearing 208 2% (10)% 1,056 Total deposits $284 (2)% (12)% 926 Interest-earning assets: 677 Cash and reverse repo 136 4% (10)% Lo
Slide 7: Noninterest Expense
Noninterest Expense 4Q22 vs. $mm, unless otherwise noted 4Q22 3Q22 4Q21 • Noninterest expense up 8% YoY, primarily reflecting higher severance Staff $1,802 8% 10% expense Software and equipment 432 3% 14% Professional, legal and other purchased services 415 14% 6% – Excluding notable items, noninter
Slide 8: Securities Services
Securities Services 4Q22 vs. $mm, unless otherwise noted 4Q22 3Q22 4Q21 • Total revenue of $2,172mm up 18% YoY Total revenue by line of business: – Asset Servicing up 15% YoY, primarily reflecting higher net interest Asset Servicing $1,681 5% 15% revenue, lower money market fee waivers and higher cl
Slide 9: Market and Wealth Services
Market and Wealth Services 4Q22 vs. $mm, unless otherwise noted 4Q22 3Q22 4Q21 • Total revenue of $1,399mm up 19% YoY Total revenue by line of business: – Pershing up 22% YoY, primarily reflecting lower money market fee Pershing $673 2% 22% waivers, higher fees on sweep balances and higher net inter
Slide 10: Investment and Wealth Management
Investment and Wealth Management 4Q22 vs. $mm, unless otherwise noted 4Q22 3Q22 4Q21 • Total revenue of $825mm down 19% YoY Total revenue by line of business: – Investment Management down 22% YoY, primarily reflecting lower Investment Management $550 (5)% (22)% market values, the mix of cumulative n
Slide 11: Other Segment
Other Segment $mm, unless otherwise noted 4Q22 3Q22 4Q21 • Total revenue includes corporate treasury and other investment activity, Fee revenue $12 $28 $2 including hedging activity which has an offsetting impact between fee and Investment and other revenue (442) (5) 19 other revenue and net interes
Slide 12: Appendix
Appendix Sm BNY MELLON Consider Everything
Slide 13: Footnotes
Footnotes Page 3 – 4Q22 Financial Results (a) Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninterest expense. Page 4 – 2022 Financial Results (a) Operating leverage is the rate of increase (decrease) in total revenue less the
Slide 14: Money Market Fee Waivers Impact
Money Market Fee Waivers Impact 4Q22 3Q22 2Q22 1Q22 4Q21 FY22 FY21 Investment services fees (see table below) $ — $ (1) $ (26) $ (126) $ (148) $ (153) $ (547) Investment management and performance fees (19) (21) (40) (85) (116) (165) (429) Distribution and servicing fees — — (2) (11) (14) (13) (51)
Slide 15: Return on Common Equity and Tangible Common Equity Reconciliation
Return on Common Equity and Tangible Common Equity Reconciliation 4Q22 3Q22 4Q21 FY22 FY21 Net income applicable to common shareholders of The Bank of New York Mellon Corporation — GAAP $ 509 $ 319 $ 822 $ 2,362 $ 3,552 Add: Amortization of intangible assets 16 17 19 67 82 Less: Tax impact of amorti
Slide 16: Reconciliation of Non-GAAP measures – Impact of Notable Items
Reconciliation of Non-GAAP measures – Impact of Notable Items 4Q22 vs. 2022 vs. 4Q22 3Q22 4Q21 3Q22 4Q21 2022 2021 2021 Total revenue — GAAP $ 3,918 $ 4,279 $ 4,015 (8)% (2)% $ 16,377 $ 15,931 3% Notable items(a) (460) 37 — (511) 13 Total revenue, ex-notables — Non-GAAP $ 4,378 $ 4,242 $ 4,015 3% 9%
Slide 17: Pre-tax Operating Margin Reconciliation – Impact of Notable Items
Pre-tax Operating Margin Reconciliation – Impact of Notable Items 4Q22 2022 Results – Notable Non-GAAP ex. Results – Notable Non-GAAP ex. GAAP items(a) notable items GAAP items(a) notable items Total revenue $ 3,918 (460) $ 4,378 $ 16,377 (511) $ 16,888 Provision for credit losses 20 — 20 39 — 39 No
Slide 18: Return on Common Equity and Tangible Common Equity Reconciliation – Impact of Notable Items
Return on Common Equity and Tangible Common Equity Reconciliation – Impact of Notable Items 4Q22 2022 Non-GAAP Non-GAAP Results – Notable ex. notable Results – Notable ex. notable GAAP items(a) items GAAP items(a) items Net income applicable to common shareholders of The Bank of New York Mellon Corp
Slide 19: Pre-tax Operating Margin Reconciliation – Investment and Wealth Management Segment
Pre-tax Operating Margin Reconciliation – Investment and Wealth Management Segment 4Q22 4Q21 Income before income taxes — GAAP $ 125 $ 278 Total revenue — GAAP $ 825 $ 1,020 Less: Distribution and servicing expense 87 75 Adjusted total revenue, net of distribution and servicing expense — Non-GAAP $
Slide 20: Cautionary Statement
Cautionary Statement A number of statements in The Bank of New York Mellon Corporation’s (the “Corporation”) presentations, the accompanying slides and the responses to your questions are “forward-looking statements.” Words such as “estimate,” “forecast,” “project,” “anticipate,” “likely,” “target,”
The Bank of New York Mellon — Q4 2022 Earnings Presentation on 6ix