The Bank Of New York Mellon Corporation · NYSE:BNY
The Bank Of New York Mellon — Q1 2021 Earnings Presentation
21 slides from The Bank Of New York Mellon's earnings presentation, Apr 16, 2021
Slide 1: First Quarter 2021 Financial Highlights
First Quarter 2021 Financial Highlights April 16, 2021
Slide 2: 1Q21 Financial Highlights
1Q21 Financial Highlights › Revenue, down 5% year-over-year due to lower Revenue EPS interest rates, money market fee (“MMF”) waivers and an impairment, partially offset by higher markets, $3.92 bn $0.97 net new business and a favorable currency impact › Fee revenue, excluding MMF waivers, up 6%(a)
Slide 3: 1Q21 Financial Highlights
1Q21 Financial Highlights ($ millions, except per share data) 1Q21 4Q20 1Q20 TO TAL R E V E N U E $3,921 2% (5)% Fee revenue(a) 3,257 5 1 Other revenue(a) 9 N/M N/M Net interest revenue 655 (4) (20) Provision for credit losses (83) N/M N/M Noninterest expense 2,851 (3) 5 Income before income taxes 1
Slide 4: 1Q21 Key Financial Trends
1Q21 Key Financial Trends (a) IS revenue Adj. I&WM revenue Adj. noninterest ($ millions) ($ millions) e x p e n s e (a) (8)% ($ millions) +10% 3,242 +5% Net interest 2,905 2,990 995 991 806 2,712 2,760 2,851 revenue 670 645 Net interest 898 50 48 revenue 52 Total fee and Adj. I&WM 945 943 other reve
Slide 5: Capital and Liquidity
Capital and Liquidity 1Q21 4Q20 1Q20 Consolidated regulatory capital ratios: (a) Common Equity Tier 1 (“CET1”) ratio 12.6% 13.1% 11.3% Tier 1 capital ratio 15.2 15.8 13.5 Total capital ratio 16.1 16.7 14.3 Tier 1 leverage ratio 5.8 6.3 6.0 (b) (b) (b) Supplementary leverage ratio (“SLR“) 8.1 8.6 5.6
Slide 6: Net Interest Revenue
Net Interest Revenue DRIVERS OF SEQUENTIAL NIR CHANGE USD LIBOR AVERAGE ($ millions) (%) (4)% 0.22 0.15 0.20 0.12 680 655 1m 3m + Benefit + Volume - Other, - Lower of lower mix including interest US TREASURY AVERAGE funding (higher hedging rates on (%) 1.32 and deposits interest- deposit and earning
Slide 7: Balance Sheet Trends
Balance Sheet Trends ($ billions) AV E R A G E I N T E R E S T - AV E R A G E D E P O S I T S EARNING ASSETS +27% +7% +23% 307 329 +5% 258 Interest-bearing 198 231 245 397 deposits 379 0.49% Interest-bearing 57 (0.06)% (0.06)% deposits rate 55 324 8 Noninterest-bearing 8 61 76 83 deposits Loans 56 1
Slide 8: Noninterest Expense
Noninterest Expense ($ millions) 1Q21 4Q20 1Q20 › Noninterest expenses up 5% year-over-year, primarily Staff $1,602 3% 8% reflecting higher staff expense, the unfavorable impact of a weaker U.S. dollar and technology-related Software and equipment 362 1 11 expenses, partially offset by lower busines
Slide 9: Investment Services
Investment Services FINANCIAL HIGHLIGHTS ($ millions unless otherwise noted) 1Q21 4Q20 1Q20 › Asset Servicing down year-over-year primarily on lower Total revenue by line of business: interest rates, foreign exchange revenue and higher MMF Asset Servicing $1,424 5% (7)% waivers, partially offset by
Slide 10: Investment Services - Revenue Drivers
Investment Services - Revenue Drivers ($ millions) (7)% (7)% 1,531 1,424 653 (13)% 605 (6)% 419 (6)% 363 339 317 300 281 1Q20 1Q21 1Q20 1Q21 1Q20 1Q21 1Q20 1Q21 1Q20 1Q21 ASSET ISSUER TREASURY CLEARANCE AND SERVICING PERSHING SERVICES SERVICES C O L L AT E R A L - Interest rates - MMF waivers - Inte
Slide 11: Investment and Wealth Management
Investment and Wealth Management FINANCIAL HIGHLIGHTS ($ millions unless otherwise noted) 1Q21 4Q20 1Q20 › Investment Management up year-over-year primarily Total revenue by line of business: due to higher market values, equity investment gains, Investment Management $698 (2)% 13% including seed cap
Slide 12: Other Segment
Other Segment FINANCIAL HIGHLIGHTS ($ millions unless otherwise noted) 1Q21 4Q20 1Q20 › Total revenue includes corporate treasury and other Fee revenue(a) $9 $11 $6 investment activity, including hedging activity which Other revenue(a) (36) (28) 24 offsets between fee and other revenue and net inter
Slide 13: Appendix
Se BNY MELLON Appendix
Slide 14: Footnotes
Footnotes 1Q21 Financial Highlights, Page 3 b) Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninterest expense. c) See page 18 for corresponding reconciliation of this non-GAAP measure. 1Q21 Key Financial Trends, Page 4 a) Nota
Slide 15: Reporting Changes - Effects of Reclassifications
Reporting Changes - Effects of Reclassifications ($ millions) 4Q20 1Q20 Consolidated Income Statement Before reclassification Foreign exchange and other trading revenue $167 $319 Total fee revenue $3,116 $3,323 Investment and other income $22 $11 Income (loss) from consolidated investment management
Slide 16: Money Market Fee Waiver Impact
Money Market Fee Waiver Impact ($ millions) 1Q21 4Q20 3Q20 2Q20 1Q20 Investment services fees: Asset servicing fees $(22) $(13) $(1) $- $- Clearing services fees (74) (64) (57) (50) (9) Issuer services fees (10) (6) (1) (1) - Treasury services fees (3) (2) (3) (2) - Total investment services fees (1
Slide 17: Fourth Quarter – Impact of Notable Items
Fourth Quarter – Impact of Notable Items 4Q20 Results – Notable Results Non- ($ millions, except per share amounts and unless otherwise noted) GAAP i t e m s (a) GAAP Total revenue 3,843 (61) 3,904 Noninterest expense 2,925 165 2,760 Income before income taxes 903 (226) 1,129 Provision for income ta
Slide 18: Return on Common Equity and Tangible Common Equity Reconciliation
Return on Common Equity and Tangible Common Equity Reconciliation ($ millions) 1Q21 4Q20 1Q20 Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP $858 $702 $944 Add: Amortization of intangible assets 24 26 26 Less: Tax impact of amortization of intangible a
Slide 19: Pre-tax Operating Margin Reconciliation – Investment and Wealth Management Business
Pre-tax Operating Margin Reconciliation – Investment and Wealth Management Business ($ millions) 1Q21 4Q20 1Q20 Income before income taxes – GAAP $278 $311 $194 Total revenue – GAAP $991 $990 $898 Less: Distribution and servicing expense 75 76 91 Adjusted total revenue, net of distribution and servi
Slide 20: Cautionary Statement
Cautionary Statement A number of statements in The Bank of New York Mellon Corporation’s (the “Corporation”) presentation, the accompanying slides and the responses to your questions are “forward-looking statements.” Words such as “estimate,” “forecast,” “project,” “anticipate,” “likely,” “target,”
Slide 21: BNY Mellon
Ye BNY MELLON
The Bank of New York Mellon — Q1 2021 Earnings Presentation on 6ix