The Bank Of New York Mellon Corporation · NYSE:BNY
The Bank Of New York Mellon — Bank of New York Mellon — Q2 2024 Earnings Presentation
15 slides from The Bank Of New York Mellon's earnings presentation, Jul 12, 2024
Slide 1: 2Q24 Financial Highlights
2Q 24 FINANCIAL July 12, 2024 HIGHLIGHTS
Slide 2: 2Q24 Financial Highlights
2 +16% Revenue Growth: Pre-tax Margin: EPS Growth: • Revenue Growth: Revenue of $4.6bn up 2% YoY – Investment services fees up 5% YoY – Investment management and performance fees flat YoY – Foreign exchange revenue up 16% YoY – Net interest income down 6% YoY • Expense Discipline: Expense of $3.1bn
Slide 3: 2Q24 Financial Results
3 2Q24 vs. $mm, except per share data or unless otherwise noted 2Q24 1Q24 2Q23 1Q24 2Q23 Income Statement Investment services fees $2,359 $2,278 $2,252 4% 5% Investment management and performance fees 761 776 762 (2) — Foreign exchange revenue 184 152 158 21 16 Other fee revenue 94 99 85 (5) 11 Tota
Slide 4: Capital and Liquidity
4 2Q24 1Q24 2Q23 Consolidated regulatory capital ratios(a) Tier 1 capital ($mm) $23,006 $22,723 $22,848 Average assets for Tier 1 leverage ratio ($mm) 394,672 386,148 402,993 Tier 1 leverage ratio 5.8% 5.9% 5.7% Common Equity Tier 1 ("CET1") capital ($mm) $18,671 $18,383 $18,018 Risk-weighted assets
Slide 5: Net Interest Income and Balance Sheet Trends
5 1,100 1,016 1,101 1,040 1,030 2Q23 3Q23 4Q23 1Q24 2Q24 2Q24 vs. 2Q24 1Q24 2Q23 Total assets $412 2% (2)% Total interest-earning assets $354 2% (2)% Cash and reverse repo 142 1 (8) Loans 68 4 8 Investment securities 138 3 1 Noninterest-bearing $49 (2)% (21)% Interest-bearing 236 3 10 Total deposits
Slide 6: Securities Services
6 2Q24 vs. $mm, unless otherwise noted 2Q24 1Q24 2Q23 Asset Servicing $1,018 —% 4% Issuer Services 322 23 1 Total investment services fees $1,340 5% 3% Foreign exchange revenue 144 16 16 Other fees 56 (5) 4 Investment and other revenue 104 N/M N/M Net interest income 595 2 (11) Total revenue $2,239
Slide 7: Market and Wealth Services
7 2Q24 vs. $mm, unless otherwise noted 2Q24 1Q24 2Q23 Pershing $474 (2)% 2% Treasury Services 202 10 10 Clearance and Collateral Management 338 3 15 Total investment services fees $1,014 2% 7% Foreign exchange revenue 23 (4) 10 Other fees 58 — 12 Investment and other revenue 23 N/M N/M Net interest
Slide 8: Investment and Wealth Management
8 2Q24 vs. $mm, unless otherwise noted 2Q24 1Q24 2Q23 Investment management fees $754 (2)% —% Performance fees 8 N/M N/M Distribution and servicing fees 69 (1) 19 Other fees(a) (64) N/M N/M Investment and other revenue(b) 11 N/M N/M Net interest income 43 5 10 Total revenue $821 (3)% 1% Provision fo
Slide 9: Other Segment
9 $mm, unless otherwise noted 2Q24 1Q24 2Q23 Fee revenue $(4) $(17) $(2) Investment and other revenue 29 47 34 Net interest (expense) (25) (7) (27) Total revenue $— $23 $5 Provision for credit losses 1 12 (25) Noninterest expense 15 65 71 (Loss) before income taxes $(16) $(54) $(41) Other Segment Se
Slide 10: Appendix
APPENDIX
Slide 11: Footnotes
11 Footnotes Page 3 – 2Q24 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 – Capital and Liquidity (a) Regulatory capital and liquidity ratios for June 30, 2024 are preliminary. For
Slide 12: Reconciliation of Non-GAAP Measures – Impact of Notable Items
12 Select Income Statement Data Reconciliation of Non-GAAP Measures – Impact of Notable Items 2Q24 vs. $mm, except per share amounts 2Q24 1Q24 2Q23 1Q24 2Q23 Total revenue – GAAP $4,597 $4,527 $4,504 2% 2% Less: Disposal (losses)(a) — — (1) Adjusted total revenue, ex-notables — Non-GAAP $4,597 $4,52
Slide 13: Reconciliation of ROTCE
13 $mm 2Q24 1Q24 2Q23 Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP $1,143 $953 $1,036 Add: Amortization of intangible assets 13 12 14 Less: Tax impact of amortization of intangible assets 3 3 4 Adjusted net income applicable to common shareholders of
Slide 14: Forward-looking statements
14 A number of statements in our presentations, the accompanying slides and the responses to questions on our conference call discussing our quarterly results may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements
Slide 15: Slide 15
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