The Bank Of New York Mellon Corporation · NYSE:BNY
The Bank Of New York Mellon — Q4 2021 Earnings Presentation
19 slides from The Bank Of New York Mellon's earnings presentation, Jan 18, 2022
Slide 1: 4Q21 Financial Highlights
4Q21 Financial Highlights JANUARY 18, 2022
Slide 2: 4Q21 and 2021 Highlights
4Q21 and 2021 Highlights 4Q21 2021 Revenue EPS Revenue EPS 4% 28% 1% 8% Pre-tax income Pre-tax margin Pre-tax income Pre-tax margin 18% 303bps 4% 91bps Returns Capital ratios Returns ROE: 8.6% T1L: 5.5% ROE: 8.9% ROTCE: 17.2%(a) CET1: 11.1% ROTCE: 17.1%(a) 2 (a) Represents a non-GAAP
Slide 3: 4Q21 Financial Results
4Q21 Financial Results 4Q21 vs. $mm, except per share data or unless otherwise noted 4Q21 3Q21 4Q20 3Q21 4Q20 Fee revenue $3,231 $3,265 $3,114 (1)% Up 8%(a) 4% excluding Investment and other revenue 107 129 49 N/M MMF N/M waivers Net interest revenue 677 641 680 6% — Total revenue $4,015 $4,035 $3,8
Slide 4: 2021 Financial Results
2021 Financial Results 2021 vs. $mm, except per share data or unless otherwise noted 2021 2020 2020 Fee revenue $12,977 $12,515 Up 9%(a) 4% excluding Investment and other revenue 336 316 MMF N/M waivers Net interest revenue 2,618 2,977 (12)% Total revenue $15,931 $15,808 1% Provision for credit loss
Slide 5: Capital and Liquidity
Capital and Liquidity 4Q21 3Q21 4Q20 Consolidated regulatory capital ratios:(a) Tier 1 leverage ratio 5.5% 5.7% 6.3% Supplementary leverage ratio ("SLR") 6.6 7.0 8.6 (b) Common Equity Tier 1 ratio – Advanced Approaches 11.3 11.8 13.1 Common Equity Tier 1 ratio – Standardized Approach 11.1 11.7 13.4
Slide 6: Net Interest Revenue and Balance Sheet Trends
Net Interest Revenue and Balance Sheet Trends Net Interest Revenue 4Q21 vs. ($mm) $bn, avg. 4Q21 3Q21 4Q20 Flat Deposits: +6% Noninterest-bearing $92 7% 21% Interest-bearing 231 (1)% — 680 677 Total deposits $323 1% 5% 641 Interest-earning assets: Cash and reverse repo 152 (4)% (5)% Loans $65 6% 18%
Slide 7: Noninterest Expense
Noninterest Expense 4Q21 vs. $mm, unless otherwise noted 4Q21 3Q21 4Q20 • Noninterest expense of $2,967mm up 1% YoY, up 6%(a) excluding the Staff $1,633 3% 5% impact of notable items, driven by higher investments in growth, Software and equipment 379 2% 6% infrastructure and efficiency initiatives a
Slide 8: Securities Services
Securities Services 4Q21 vs. $mm, unless otherwise noted 4Q21 3Q21 4Q20 • Total revenue of $1,833mm up 5% YoY Total revenue by line of business: – Asset Servicing up 7% YoY, excluding MMF waivers, up 10%(a), Asset Servicing $1,456 1% 7% reflecting higher activity from existing clients, higher market
Slide 9: Market and Wealth Services
Market and Wealth Services 4Q21 vs. $mm, unless otherwise noted 4Q21 3Q21 4Q20 • Total revenue of $1,173mm up 1% YoY Total revenue by line of business: – Pershing down 2% YoY, excluding MMF waivers, up 2%(a), reflecting Pershing $553 (2)% (2)% higher market values, client balances and activity from
Slide 10: Investment and Wealth Management
Investment and Wealth Management 4Q21 vs. $mm, unless otherwise noted 4Q21 3Q21 4Q20 • Total revenue of $1,020mm up 3% YoY Total revenue by line of business: – Investment Management revenue of $709mm down 1% YoY, Investment Management $709 (2)% (1)% excluding MMF waivers, up 6%(a) reflecting higher
Slide 11: Other Segment
Other Segment $mm, unless otherwise noted 4Q21 3Q21 4Q20 • Total revenue includes corporate treasury and other investment activity, Fee revenue $2 $12 $11 including hedging activity which has an offsetting impact between fee and Investment and other revenue 19 23 (28) other revenue and net interest
Slide 12: 2022 Outlook
2022 Outlook 2021 2022 vs. 2021 Net interest revenue $ 2,618mm ~ 10% Total fee revenue $ 12,977mm ~ %7 Expenses (excluding notable items)(a) $ 11,385mm ~5.5% 100 ~ % Total payout ratio 160% (subject to changes in AOCI and deposit balances) 12 (a) Represents a non-GAAP measure. See page 18 in the App
Slide 13: Appendix
Appendix Se BNY MELLON Consider Everything
Slide 14: Footnotes
Footnotes Page 3 – 4Q21 Financial Results (b) Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninterest expense. Page 4 – 2021 Financial Results (b) Operating leverage is the rate of increase (decrease) in total revenue less the
Slide 15: Money Market Fee Waivers Impact
Money Market Fee Waivers Impact 4Q21 3Q21 2Q21 1Q21 4Q20 Investment services fees $(148) $(142) $(148) $(109) $(85) Investment management and performance fees (116) (109) (115) (89) (56) Distribution and servicing fees (14) (11) (13) (13) (8) Total fee revenue (278) (262) (276) (211) (149) Less: Dis
Slide 16: Total Revenue and Investment Services Fees Excluding MMF Waivers Reconciliation
Total Revenue and Investment Services Fees Excluding MMF Waivers Reconciliation 4Q21 vs. 4Q21 vs. 4Q21 4Q20 4Q20 4Q21 4Q20 4Q20 Fee revenue — GAAP $3,231 $3,114 4% Pershing business, total revenue — GAAP $553 $563 (2)% Less: MMF waivers (278) (149) Less: MMF waivers (106) (85) Fee revenue, ex-MMF wa
Slide 17: Return on Common Equity and Tangible Common Equity Reconciliation
Return on Common Equity and Tangible Common Equity Reconciliation 4Q21 3Q21 4Q20 2021 2020 Net income applicable to common shareholders of The Bank of New York Mellon Corporation — GAAP $822 $881 $702 $3,552 $3,423 Add: Amortization of intangible assets 19 19 26 82 104 Less: Tax impact of amortizati
Slide 18: Pre-tax Operating Margin Reconciliation and Notable Items
Pre-tax Operating Margin Reconciliation – Investment and Wealth Management Business 4Q21 3Q21 4Q20 Income before income taxes — GAAP $278 $348 $311 Total revenue — GAAP $1,020 $1,032 $990 Less: Distribution and servicing expense 75 76 76 Adjusted total revenue, net of distribution and servicing expe
Slide 19: 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,”
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