The Bank Of New York Mellon Corporation · NYSE:BNY
The Bank Of New York Mellon — Bank of New York Mellon — Shareholder Meeting (April 2019)
20 slides from The Bank Of New York Mellon's shareholder meeting presentation, Apr 9, 2019
Slide 1: 2019 Annual Meeting of Stockholders
Exhibit 99.1 2019 Annual Meeting of Stockholders April 9, 2019 1 | 2019 Annual Meeting of StockholdersExhibit 99.1 2019 Annual Meeting of Stockholders April 9, 2019 1 | 2019 Annual Meeting of Stockholders
Slide 2: BNY Mellon business overview: Investment Services and Investment Management
Investment Investment BNY Mellon Management Services $12.3B $4.1B Revenue Revenue Diversified global asset manager Asset Servicing Broad range of investment strategies Services business Pershing 8 specialized managers Asset Management Issuer Services Leading positions in specialized asset Technology
Slide 3: Serving the world's clients through leading capabilities
Serving the world’s clients through leading capabilities Institutions Asset Managers Financial Services Public/Non-Profits Individuals Corporations Mutual Funds Banks Pension Funds High-Net-Worth Individuals and Families Governments Hedge Funds Broker-Dealers Local Governments Central Banks Private
Slide 4: A dynamic model delivering long-term value to clients and shareholders
A dynamic model delivering long-term value to clients and shareholders Attractive High Risk-Adjusted Business Model Returns Strong EPS Growth • Diversified business mix • Increasing scale benefits • Prudent credit risk business model • Majority of revenue from • Positive operating leverage recurring
Slide 5: 2018 Financial Performance
2018 Financial Performance 2018 Impact of 2018 2018 2018 vs. 2017 1 2 $ in billions, except EPS Reported Notable Items Operating Operating Revenue $16.4 $16.4 3% - Expense $11.2 ($0.3) $10.9 2% Net Income $4.1 $0.2 $4.3 14% Operating Margin 32% 2% 34% 79bps EPS $4.04 $0.17 $4.21 18% NOTE: May not fo
Slide 6: Generating positive operating leverage
Generating positive operating leverage +135 bps ($ millions) ~3% increase ~2% expense increase 1 NOTE: The above reflects non-GAAP measures. See Appendix for reconciliations. Additional disclosure regarding non-GAAP measures is available in the Corporation’s reports filed with the SEC, available at
Slide 7: Returning majority of generated capital to shareholders
Returning majority of generated capital to shareholders 23.9% ($ millions) 22.5% 21.2% 19.7% +20% 16.0% 4,321 1 ROTCE 3,588 3,176 3,117 2,431 3,269 2,686 2,398 2,355 1,669 Share buy-back 1,052 902 778 762 762 Common dividends 2014 2015 2016 2017 2018 2 Total Payout Ratio 98% 102% 93% 92% 105% 1. ROT
Slide 8: Delivering progress on our priorities
Delivering progress on our priorities • Strong demand for offering in U.S. and UK Pershing Asset Servicing • Accelerating investments in RIA servicing and Markets • Launching new platform for CLO and traditional loan products as well as improved client reporting Issuer Services • Alliance with Black
Slide 9: Announcing a new alliance: BNY Mellon and BlackRock Solutions
Announcing a new alliance: BNY Mellon and BlackRock Solutions 9 | 2019 Annual Meeting of StockholdersAnnouncing a new alliance: BNY Mellon and BlackRock Solutions 9 | 2019 Annual Meeting of Stockholders
Slide 10: Analytics tools and improved workflows to build new competitive advantages for asset managers
Analytics tools and improved workflows to build new competitive advantages for asset managers Custody Activity NAV Construction Review transactions with an enhanced level of detail and See the steps of the NAV process so clients can track accuracy, viewing by account, date, asset type, location, fun
Slide 11: In closing
In closing Sustainable and unique franchise with scale and global diversification Maintaining a low-risk profile Progressing on our strategic priorities Investing in the future while also increasing operating margins Maintaining our shareholder friendly capital return (subject to approvals) 11 | 201
Slide 12: 12 | 2019 Annual Meeting of Stockholders12 | 2019 Annual Meeting of Stockholders
12 | 2019 Annual Meeting of Stockholders12 | 2019 Annual Meeting of Stockholders
Slide 13: Cautionary Statement
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”, “continue”, “seek”, “believe”, “plan”, “goal”
Slide 14: Appendix
Appendix 14 | 2019 Annual Meeting of StockholdersAppendix 14 | 2019 Annual Meeting of Stockholders
Slide 15: Disclosures
Disclosures Slide 3: BNY Mellon client data as of December 2018 Willis Towers Watson, October 30, 2018. Based on discretionary assets under management at the end of 2017; does not include saving/current accounts or assets unrelated to investment business, money market funds, advisory portfolios, or
Slide 16: Revenue, expense and pre-tax operating margin reconciliation
Revenue, expense and pre-tax operating margin reconciliation Growth ($MM) 2018 2017 vs. 2017 Total revenue – GAAP $16,392 $15,543 5% Exclude the impact of notable items (a)(b) (13) (320) Total revenue, excluding notable items – Non-GAAP $16,405 $15,863 3% Total noninterest expense – GAAP $11,211 $10
Slide 17: Net income and EPS reconciliation
Net income and EPS reconciliation 2018 2017 2018 vs. 2017 Diluted Diluted Diluted Results Results Results EPS EPS EPS ($MM) Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP $4,097 $4.04 $3,915 $3.72 5% 9% Exclude the impact of notable items: (a)(b) Total
Slide 18: Return on common equity and tangible common equity reconciliation
Return on common equity and tangible common equity reconciliation ($MM) 2018 2017 2016 2015 2014 Net income applicable to common shareholders of The Bank of New York Mellon $4,097 $3,915 $3,425 $3,053 $2,494 Corporation–GAAP 180 209 237 261 298 Add: Amortization of intangible assets Less: Tax impact
Slide 19: Definitions
Definitions Acronym Definition AUC/A Assets under custody and/or administration AUM Assets under management CLO Collateralized loan obligation EPS Earnings per share ETF Exchange-traded fund GAAP Generally accepted accounting principles LDI Liability–driven investment RIA Registered independent advi
Slide 20: 20 | 2019 Annual Meeting of Stockholders20 | 2019 Annual Meeting of Stockholders
20 | 2019 Annual Meeting of Stockholders20 | 2019 Annual Meeting of Stockholders
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