Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  Bank of New York Mellon Corporation (The)    BK

BANK OF NEW YORK MELLON CORPORATION (THE)

(BK)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Bank of New York Mellon : Financial Supplement (PDF)

11/02/2020 | 05:50pm EST

The Bank of New York Mellon Corporation

Financial Supplement

Third Quarter 2020

Table of Contents

Consolidated Results

Page

Consolidated Financial Highlights

3

Condensed Consolidated Income Statement

4

Condensed Consolidated Balance Sheet

5

Fee and Other Revenue

6

Average Balances and Interest Rates

7

Capital and Liquidity

8

Business Segment Results

Investment Services Business

9

Investment and Wealth Management Business

11

AUM by Product, AUM Flows and Wealth Management Client Assets

12

Other Segment

13

Other

Securities Portfolio

14

Allowance for Credit Losses and Nonperforming Assets

15

Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures

16

THE BANK OF NEW YORK MELLON CORPORATION

CONSOLIDATED FINANCIAL HIGHLIGHTS

(dollars in millions, except per common share amounts, or unless otherwise

3Q20 vs.

YTD20 vs.

noted)

3Q20

2Q20

1Q20

4Q19

3Q19

2Q20

3Q19

YTD20

YTD19

YTD19

Selected income statement data

Fee revenue

$

3,108

$

3,167

$

3,323

$

3,971

$

3,129

(2)%

(1)%

$

9,598

$

9,265

4 %

Net securities gains (losses)

9

9

9

(25)

(1)

N/M

N/M

27

7

N/M

Total fee and other revenue

3,117

3,176

3,332

3,946

3,128

(2)

-

9,625

9,272

4

Income (loss) from consolidated investment management funds

27

54

(38)

17

3

N/M

N/M

43

39

N/M

Net interest revenue

703

780

814

815

730

(10)

(4)

2,297

2,373

(3)

Total revenue

3,847

4,010

4,108

4,778

3,861

(4)

-

11,965

11,684

2

Provision for credit losses

9

143

169

(8)

(16)

N/M

N/M

321

(17)

N/M

Noninterest expense

2,681

2,686

2,712

2,964

2,590

-

4

8,079

7,936

2

Income before income taxes

1,157

1,181

1,227

1,822

1,287

(2)

(10)

3,565

3,765

(5)

Provision for income taxes

213

216

265

373

246

(1)

(13)

694

747

(7)

Net income

$

944

$

965

$

962

$

1,449

$

1,041

(2)%

(9)%

$

2,871

$

3,018

(5)%

Net income applicable to common shareholders of The Bank of New York

$

876

$

901

$

944

$

1,391

$

1,002

(3)%

(13)%

$

2,721

$

2,881

(6)%

Mellon Corporation

Diluted earnings per common share

$

0.98

$

1.01

$

1.05

$

1.52

$

1.07

(3)%

(8)%

$

3.04

$

3.01

1 %

Average common shares and equivalents outstanding - diluted (in thousands)

891,069

890,561

896,689

914,739

935,677

- %

(5)%

892,793

951,876

(6)%

Financial ratios(Returns are annualized)

Pre-tax operating margin

30 %

29 %

30 %

38 %

33 %

30 %

32 %

Return on common equity

8.7 %

9.4 %

10.1 %

14.6 %

10.6 %

9.4 %

10.3 %

Return on tangible common equity - Non-GAAP(a)

16.7 %

18.5 %

20.4 %

29.3 %

21.4 %

18.5 %

21.1 %

Non-U.S. revenue as a percentage of total revenue

37 %

36 %

36 %

31 %

37 %

37 %

36 %

Period end

Assets under custody and/or administration ("AUC/A") (in trillions) (b)

$

38.6

$

37.3

$

35.2

$

37.1

$

35.8

3 %

8 %

Assets under management ("AUM") (in trillions)

$

2.04

$

1.96

$

1.80

$

1.91

$

1.88

4 %

9 %

Full-time employees

48,600

48,300

47,900

48,400

48,700

1 %

- %

Book value per common share

$

45.58

$

44.21

$

42.47

$

42.12

$

40.75

Tangible book value per common share - Non-GAAP(a)

$

24.60

$

23.31

$

21.53

$

21.33

$

20.59

Cash dividends per common share

$

0.31

$

0.31

$

0.31

$

0.31

$

0.31

Common dividend payout ratio

32 %

31 %

30 %

20 %

29 %

Closing stock price per common share

$

34.34

$

38.65

$

33.68

$

50.33

$

45.21

Market capitalization

$ 30,430

$ 34,239

$ 29,822

$ 45,331

$ 41,693

Common shares outstanding (in thousands)

886,136

885,862

885,443

900,683

922,199

Capital ratios at period end(c)

Common Equity Tier 1 ("CET1") ratio

13.0 %

12.6 %

11.3 %

11.5 %

11.1 %

Tier 1 capital ratio

15.7 %

15.4 %

13.5 %

13.7 %

13.2 %

Total capital ratio

16.6 %

16.3 %

14.3 %

14.4 %

14.0 %

Tier 1 leverage ratio

6.5 %

6.2 %

6.0 %

6.6 %

6.5 %

Supplementary leverage ratio ("SLR")

8.5 %

8.2 %

5.6 %

6.1 %

6.0 %

  1. Non-GAAPinformation, for all periods presented, excludes goodwill and intangible assets, net of deferred tax liabilities. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 16 for the reconciliation of Non-GAAP measures.
  2. Includes the AUC/A of CIBC Mellon Global Securities Services Company ("CIBC Mellon"), a joint venture with the Canadian Imperial Bank of Commerce, of $1.4 trillion at Sept. 30, 2020, $1.3 trillion at June 30, 2020, $1.2 trillion at March 31, 2020, $1.5 trillion at Dec. 31, 2019 and $1.4 trillion at Sept. 30, 2019.
  3. Regulatory capital ratios for Sept. 30, 2020 are preliminary. For our CET1, Tier 1 capital and Total capital ratios, our effective capital ratios under the U.S. capital rules are the lower of the ratios as calculated under the Standardized and Advanced Approaches, which for Sept. 30,2020, June 30, 2020, Dec. 31, 2019 and Sept. 30, 2019, was the Advanced Approaches, and for March 31, 2020 was the Standardized Approach for the CET1 and Tier 1 capital ratios and the Advanced Approaches for the Total capital ratio.

N/M - Not meaningful.

3

THE BANK OF NEW YORK MELLON CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENT

(dollars in millions, except per share amounts; common shares in

3Q20 vs.

YTD20 vs.

thousands)

3Q20

2Q20

1Q20

4Q19

3Q19

2Q20

3Q19

YTD20

YTD19

YTD19

Revenue

Investment services fees:

Asset servicing fees

$

1,168

$

1,173

$

1,159

$

1,148

$

1,152

- %

1 %

$

3,500

$

3,415

2 %

Clearing services fees

397

431

470

421

419

(8)

(5)

1,298

1,227

6

Issuer services fees

295

277

263

264

324

6

(9)

835

866

(4)

Treasury services fees

152

144

149

147

140

6

9

445

412

8

Total investment services fees

2,012

2,025

2,041

1,980

2,035

(1)

(1)

6,078

5,920

3

Investment management and performance fees

835

786

862

883

832

6

-

2,483

2,506

(1)

Foreign exchange and other trading revenue

137

166

319

168

150

(17)

(9)

622

486

28

Financing-related fees

49

58

59

46

49

(16)

-

166

150

11

Distribution and servicing

29

27

31

34

33

7

(12)

87

95

(8)

Investment and other income

46

105

11

860

30

N/M

N/M

162

108

N/M

Total fee revenue

3,108

3,167

3,323

3,971

3,129

(2)

(1)

9,598

9,265

4

Net securities gains (losses)

9

9

9

(25)

(1)

N/M

N/M

27

7

N/M

Total fee and other revenue

3,117

3,176

3,332

3,946

3,128

(2)

-

9,625

9,272

4

Income (loss) from consolidated investment management funds

27

54

(38)

17

3

N/M

N/M

43

39

N/M

Net interest revenue

703

780

814

815

730

(10)

(4)

2,297

2,373

(3)

Total revenue

3,847

4,010

4,108

4,778

3,861

(4)

-

11,965

11,684

2

Provision for credit losses

9

143

169

(8)

(16)

N/M

N/M

321

(17)

N/M

Noninterest expense

Staff

1,466

1,464

1,482

1,639

1,479

-

(1)

4,412

4,424

-

Professional, legal and other purchased services

355

337

330

367

316

5

12

1,022

978

4

Software and equipment

340

345

326

326

309

(1)

10

1,011

896

13

Net occupancy

136

137

135

151

138

(1)

(1)

408

413

(1)

Sub-custodian and clearing

119

120

105

119

111

(1)

7

344

331

4

Distribution and servicing

85

85

91

92

97

-

(12)

261

282

(7)

Bank assessment charges

30

35

35

32

31

(14)

(3)

100

93

8

Business development

17

20

42

65

47

(15)

(64)

79

148

(47)

Amortization of intangible assets

26

26

26

28

30

-

(13)

78

89

(12)

Other

107

117

140

145

32

(9)

234

364

282

29

Total noninterest expense

2,681

2,686

2,712

2,964

2,590

-

4

8,079

7,936

2

Income before income taxes

1,157

1,181

1,227

1,822

1,287

(2)

(10)

3,565

3,765

(5)

Provision for income taxes

213

216

265

373

246

(1)

(13)

694

747

(7)

Net income

944

965

962

1,449

1,041

(2)

(9)

2,871

3,018

(5)

Net (income) loss attributable to noncontrolling interests

(7)

(15)

18

(9)

(3)

N/M

N/M

(4)

(17)

N/M

Preferred stock dividends

(61)

(49)

(36)

(49)

(36)

N/M

N/M

(146)

(120)

N/M

Net income applicable to common shareholders of The Bank of New York

$

876

$

901

$

944

$

1,391

$

1,002

(3)%

(13)%

$

2,721

$

2,881

(6)%

Mellon Corporation

Average common shares and equivalents outstanding: Basic

889,499

889,020

894,122

911,324

933,264

- %

(5)%

891,050

949,035

(6)%

Diluted

891,069

890,561

896,689

914,739

935,677

- %

(5)%

892,793

951,876

(6)%

Earnings per common share: Basic

$

0.98

$

1.01

$

1.05

$

1.52

$

1.07

(3)%

(8)%

$

3.05

$

3.02

1 %

Diluted

$

0.98

$

1.01

$

1.05

$

1.52

$

1.07

(3)%

(8)%

$

3.04

$

3.01

1 %

N/M - Not meaningful.

4

THE BANK OF NEW YORK MELLON CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

2020

2019

(in millions)

Sept. 30

June 30

March 31

Dec. 31

Sept. 30

Assets

Cash and due from banks

$

4,104

$

4,776

$

5,091

$

4,830

$

6,718

Interest-bearing deposits with the Federal Reserve and other central banks

106,185

112,728

146,535

95,042

73,811

Interest-bearing deposits with banks

19,027

18,045

22,672

14,811

15,417

Federal funds sold and securities purchased under resale agreements

29,647

36,638

27,363

30,182

43,723

Securities

155,339

154,682

139,273

123,033

122,340

Trading assets

13,074

14,150

12,918

13,571

10,180

Loans

55,491

55,397

62,368

54,953

54,881

Allowance for loan losses

(325)

(302)

(140)

(122)

(127)

Net loans

55,166

55,095

62,228

54,831

54,754

Premises and equipment

3,617

3,598

3,514

3,625

3,149

Accrued interest receivable

489

540

576

624

596

Goodwill

17,357

17,253

17,240

17,386

17,248

Intangible assets

3,026

3,045

3,070

3,107

3,124

Other assets

20,779

21,306

27,446

20,221

21,727

Subtotal assets of operations

427,810

441,856

467,926

381,263

372,787

Assets of consolidated investment management funds, at fair value

588

460

229

245

381

Total assets

$

428,398

$

442,316

$

468,155

$

381,508

$

373,168

Liabilities

Deposits

$

296,312

$

305,470

$

336,717

$

259,466

$

249,660

Federal funds purchased and securities sold under repurchase agreements

15,907

14,512

13,128

11,401

11,796

Trading liabilities

6,084

5,595

6,625

4,841

4,756

Payables to customers and broker-dealers

23,514

25,012

24,016

18,758

18,364

Commercial paper

671

665

1,121

3,959

3,538

Other borrowed funds

420

1,628

1,544

599

820

Accrued taxes and other expenses

5,347

5,029

4,705

5,642

5,081

Other liabilities

8,671

12,869

11,425

7,612

9,796

Long-term debt

26,121

27,566

27,494

27,501

27,872

Subtotal liabilities of operations

383,047

398,346

426,775

339,779

331,683

Liabilities of consolidated investment management funds, at fair value

4

4

1

1

15

Total liabilities

383,051

398,350

426,776

339,780

331,698

Temporary equity

Redeemable noncontrolling interests

179

157

140

143

147

Permanent equity

Preferred stock

4,532

4,532

3,542

3,542

3,542

Common stock

14

14

14

14

14

Additional paid-in capital

27,741

27,702

27,644

27,515

27,471

Retained earnings

33,821

33,224

32,601

31,894

30,789

Accumulated other comprehensive loss, net of tax

(1,359)

(1,943)

(2,827)

(2,638)

(2,893)

Less: Treasury stock, at cost

(19,832)

(19,832)

(19,829)

(18,844)

(17,803)

Total The Bank of New York Mellon Corporation shareholders' equity

44,917

43,697

41,145

41,483

41,120

Nonredeemable noncontrolling interests of consolidated investment management funds

251

112

94

102

203

Total permanent equity

45,168

43,809

41,239

41,585

41,323

Total liabilities, temporary equity and permanent equity

$

428,398

$

442,316

$

468,155

$

381,508

$

373,168

5

THE BANK OF NEW YORK MELLON CORPORATION

FEE AND OTHER REVENUE

3Q20 vs.

YTD20 vs.

(dollars in millions)

3Q20

2Q20

1Q20

4Q19

3Q19

2Q20

3Q19

YTD20

YTD19

YTD19

Investment services fees:

Asset servicing fees (a)

$

1,128

$

1,117

$

1,108

$

1,104

$

1,109

1 %

2 %

$

3,353

$

3,280

2 %

Securities lending revenue

40

56

51

44

43

(29)

(7)

147

135

9

Clearing services fees (b)

397

431

470

421

419

(8)

(5)

1,298

1,227

6

Issuer services fees

295

277

263

264

324

6

(9)

835

866

(4)

Treasury services fees

152

144

149

147

140

6

9

445

412

8

Total investment services fees

2,012

2,025

2,041

1,980

2,035

(1)

(1)

6,078

5,920

3

Investment management and performance fees (c):

Investment management fees

828

781

812

835

830

6

-

2,421

2,471

(2)

Performance fees

7

5

50

48

2

N/M

N/M

62

35

77

Total investment management and performance fees (d)

835

786

862

883

832

6

-

2,483

2,506

(1)

Foreign exchange and other trading revenue:

Foreign exchange

151

174

253

138

129

(13)

17

578

439

32

Other trading (loss) revenue

(14)

(8)

66

30

21

N/M

N/M

44

47

N/M

Total foreign exchange and other trading revenue

137

166

319

168

150

(17)

(9)

622

486

28

Financing-related fees

49

58

59

46

49

(16)

-

166

150

11

Distribution and servicing

29

27

31

34

33

7

(12)

87

95

(8)

Investment and other income:

Corporate/bank-owned life insurance

33

36

36

43

33

N/M

N/M

105

95

N/M

Expense reimbursements from joint venture

23

19

21

20

21

N/M

N/M

63

59

N/M

Asset-related gains

4

3

4

815

2

N/M

N/M

11

4

N/M

Seed capital gains (losses) (c)

9

23

(31)

4

-

N/M

N/M

1

10

N/M

Other (loss) income

(23)

24

(19)

(22)

(26)

N/M

N/M

(18)

(60)

N/M

Total investment and other income (c)

46

105

11

860

30

N/M

N/M

162

108

N/M

Total fee revenue

3,108

3,167

3,323

3,971

3,129

(2)

(1)

9,598

9,265

4

Net securities gains (losses)

9

9

9

(25)

(1)

N/M

N/M

27

7

N/M

Total fee and other revenue

$

3,117

$

3,176

$

3,332

$

3,946

$

3,128

(2)%

- %

$

9,625

$

9,272

4 %

  1. Asset servicing fees include the fees from the Clearance and Collateral Management business.
  2. Clearing services fees are almost entirely earned by our Pershing business.
  3. Excludes seed capital gains (losses) related to consolidated investment management funds, which are reflected in operations of consolidated investment management funds.
  4. On a constant currency basis (Non-GAAP), investment management and performance fees decreased 1% compared with 3Q19. See "Supplemental Information - Explanation of GAAP and Non- GAAP Financial Measures" beginning on page 16 for the reconciliation of this Non-GAAP measure.

N/M - Not meaningful.

6

THE BANK OF NEW YORK MELLON CORPORATION

AVERAGE BALANCES AND INTEREST RATES

3Q20

2Q20

1Q20

4Q19

3Q19

Average

Average

Average

Average

Average

Average

Average

Average

Average

Average

(dollars in millions; average rates are annualized)

balance

rate

balance

rate

balance

rate

balance

rate

balance

rate

Assets

Interest-earning assets:

Interest-bearing deposits with the Federal Reserve and other central banks

$

90,670

(0.04)%

$

94,229

(0.03)%

$

80,403

0.39 %

$

61,627

0.60 %

$

60,030

0.67 %

Interest-bearing deposits with banks (primarily foreign banks)

19,202

0.42

21,093

0.76

17,081

1.37

15,788

1.63

15,324

1.89

Federal funds sold and securities purchased under resale agreements (a)

30,342

0.63

30,265

0.82

34,109

4.67

38,846

4.62

40,816

6.42

Margin loans

12,870

1.24

12,791

1.28

12,984

2.69

11,609

3.25

10,303

4.02

Non-margin loans:

Domestic offices

30,053

2.12

31,185

2.21

31,720

3.02

29,690

3.36

29,285

2.75

(b)

Foreign offices

10,693

1.45

12,743

1.84

11,170

2.55

11,418

2.70

11,247

2.97

Total non-margin loans

40,746

1.94

43,928

2.10

42,890

2.89

41,108

3.18

40,532

2.81

(b)

Securities:

U.S. government obligations

30,073

1.36

27,901

1.52

23,175

1.87

18,444

2.08

19,315

2.11

U.S. government agency obligations

78,300

1.68

74,583

1.92

69,046

2.32

67,494

2.36

67,235

2.49

State and political subdivisions (c)

1,500

2.51

1,025

2.98

1,033

3.06

1,134

3.03

1,217

3.05

Other securities (c)

46,719

0.59

45,511

0.82

36,375

0.95

35,242

1.64

33,729

1.75

Trading securities (c)

7,212

0.91

6,236

1.13

6,840

2.36

6,695

2.41

5,653

2.80

Total securities (c)

163,804

1.28

155,256

1.50

136,469

1.88

129,009

2.13

127,149

2.25

Total interest-earning assets (c)

$

357,634

0.92 %

$

357,562

1.06 %

$

323,936

1.95 %

$

297,987

2.30 %

$

294,154

2.63 %

(b)

Noninterest-earning assets

57,231

57,797

61,342

56,354

56,525

Total assets

$

414,865

$

415,359

$

385,278

$

354,341

$

350,679

Liabilities and equity

Interest-bearing liabilities:

Interest-bearing deposits:

Domestic offices

$

102,767

(0.01)%

$

102,135

0.06 %

$

99,915

0.69 %

$

87,162

0.98 %

$

82,663

1.28 %

Foreign offices

108,733

(0.09)

108,508

(0.12)

97,717

0.29

95,262

0.49

94,738

0.71

Total interest-bearing deposits

211,500

(0.05)

210,643

(0.03)

197,632

0.49

182,424

0.73

177,401

0.98

Federal funds purchased and securities sold under repurchase

16,850

0.13

14,209

0.03

13,919

7.96

12,668

9.11

13,432

13.08

agreements (a)

Trading liabilities

2,692

0.30

1,974

0.39

1,626

1.61

1,504

2.25

1,371

2.33

Other borrowed funds

873

1.40

2,272

1.30

719

2.27

709

2.83

1,148

3.24

Commercial paper

2,274

0.09

191

1.02

1,581

1.56

1,792

1.66

3,796

2.26

Payables to customers and broker-dealers

18,501

(0.01)

18,742

(0.01)

16,386

0.73

15,178

1.07

15,440

1.52

Long-term debt

26,511

2.01

28,122

2.42

27,231

2.83

28,117

3.09

28,386

3.24

Total interest-bearing liabilities

$

279,201

0.16 %

$

276,153

0.24 %

$

259,094

1.17 %

$

242,392

1.48 %

$

240,974

1.99 %

Total noninterest-bearing deposits

67,610

72,411

60,577

49,632

49,027

Other noninterest-bearing liabilities

23,393

24,121

24,229

20,681

19,280

Total The Bank of New York Mellon Corporation shareholders' equity

44,456

42,486

41,206

41,384

41,139

Noncontrolling interests

205

188

172

252

259

Total liabilities and equity

$

414,865

$

415,359

$

385,278

$

354,341

$

350,679

Net interest margin

0.79 %

0.88 %

1.01 %

1.09 %

0.99 %

(b)

Net interest margin (FTE) - Non-GAAP(d)

0.79 %

0.88 %

1.01 %

1.09 %

1.00 %

(b)

  1. Includes the average impact of offsetting under enforceable netting agreements of approximately $43 billion for 3Q20, $67 billion for 2Q20, $80 billion for 1Q20, $60 billion for 4Q19 and $68 billion for 3Q19. On a Non-GAAP basis, excluding the impact of offsetting, the yield on federal funds sold and securities purchased under resale agreements would have been 0.26% for 3Q20 and 2Q20, 1.39% for 1Q20, 1.82% for 4Q19 and 2.42% for 3Q19. On a Non-GAAP basis, excluding the impact of offsetting, the rate on federal funds purchased and securities sold under repurchase agreements would have been 0.04% for 3Q20, 0.00% for 2Q20, 1.18% for 1Q20, 1.59% for 4Q19 and 2.17% for 3Q19. We believe providing the rates excluding the impact of netting is useful to investors as it is more reflective of the actual rates earned and paid.
  2. Includes the impact of the lease-related impairment of $70 million in 3Q19. On a Non-GAAP basis, excluding the lease-related impairment, the yield on non-margin loans in domestic offices would have been 3.70%, the yield on total non-margin loans would have been 3.50%, the yield on total interest-earning assets would have been 2.72% and the net interest margin and the net interest margin (FTE) - Non-GAAP would have been 1.09% in 3Q19.
  3. Average rates were calculated on an FTE basis, at tax rates of approximately 21%.
  4. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 16 for the reconciliation of this Non-GAAP measure.

7

THE BANK OF NEW YORK MELLON CORPORATION

CAPITAL AND LIQUIDITY

2020

2019

(dollars in millions)

Sept. 30

June 30

March 31

Dec. 31

Sept. 30

Consolidated regulatory capital ratios (a)

Standardized Approach:

CET1 capital

$

21,171

$

20,035

$

18,465

$

18,540

$

18,196

Tier 1 capital

25,614

24,478

21,933

21,996

21,677

Total capital

27,331

26,183

23,494

23,449

23,145

Risk-weighted assets

156,741

157,290

163,006

148,695

148,399

CET1 ratio

13.5 %

12.7 %

11.3 %

12.5 %

12.3 %

Tier 1 capital ratio

16.3

15.6

13.5

14.8

14.6

Total capital ratio

17.4

16.6

14.4

15.8

15.6

Advanced Approaches:

CET1 capital

$

21,171

$

20,035

$

18,465

$

18,540

$

18,196

Tier 1 capital

25,614

24,478

21,933

21,996

21,677

Total capital

27,095

25,937

23,281

23,233

22,921

Risk-weighted assets

163,136

159,340

162,561

160,898

164,172

CET1 ratio

13.0 %

12.6 %

11.4 %

11.5 %

11.1 %

Tier 1 capital ratio

15.7

15.4

13.5

13.7

13.2

Total capital ratio

16.6

16.3

14.3

14.4

14.0

Tier 1 leverage ratio

6.5 %

6.2 %

6.0 %

6.6 %

6.5 %

SLR:

Leverage exposure

$

300,105 (b)

$

297,300

(b)

$

392,807

$

362,452

$

359,023

SLR

8.5 % (b)

8.2 % (b)

5.6 %

6.1 %

6.0 %

Average liquidity coverage ratio

111 %

112 %

115 %

120 %

117 %

  1. Regulatory capital ratios for Sept. 30, 2020 are preliminary. For our CET1, Tier 1 capital and Total capital ratios, our effective capital ratios under the U.S. capital rules are the lower of the ratios as calculated under the Standardized and Advanced Approaches, which for Sept. 30, 2020, June 30, 2020, Dec. 31, 2019 and Sept. 30, 2019, was the Advanced Approaches, and for March 31, 2020 was the Standardized Approach for the CET1 and Tier 1 capital ratios and the Advanced Approaches for the Total capital ratio.
  2. Reflects the application of a new rule effective April 1, 2020 to exclude certain central bank placements. Also effective on April 1, 2020 was the temporary exclusion of U.S. Treasury securities from the leverage exposure used in the SLR calculation which increased our consolidated SLR by 78 basis points at Sept. 30, 2020 and 40 basis points at June 30, 2020.

8

THE BANK OF NEW YORK MELLON CORPORATION

INVESTMENT SERVICES BUSINESS

3Q20 vs.

YTD20 vs.

(dollars in millions)

3Q20

2Q20

1Q20

4Q19

3Q19

2Q20

3Q19

YTD20

YTD19

YTD19

Revenue:

Investment services fees:

Asset servicing fees (ex. securities lending revenue) (a)

$

1,119

$

1,113

$

1,101

$

1,098

$

1,099

1 %

2 %

$

3,333

$

3,252

2 %

Securities lending revenue

37

51

46

40

39

(27)

(5)

134

123

9

Clearing services fees (b)

397

431

470

421

419

(8)

(5)

1,298

1,228

6

Issuer services fees

295

277

263

264

324

6

(9)

835

866

(4)

Treasury services fees

152

144

149

147

139

6

9

445

411

8

Total investment services fees

2,000

2,016

2,029

1,970

2,020

(1)

(1)

6,045

5,880

3

Foreign exchange and other trading revenue

146

178

261

151

160

(18)

(9)

585

470

24

Other (c)

100

145

146

115

116

(31)

(14)

391

340

15

Total fee and other revenue

2,246

2,339

2,436

2,236

2,296

(4)

(2)

7,021

6,690

5

Net interest revenue

681

768

806

778

761

(11)

(11)

2,255

2,348

(4)

Total revenue

2,927

3,107

3,242

3,014

3,057

(6)

(4)

9,276

9,038

3

Provision for credit losses

(10)

145

149

(5)

(15)

N/M

N/M

284

(11)

N/M

Noninterest expense (ex. amortization of intangible assets)

2,002

1,971

1,969

2,160

1,952

2

3

5,942

5,856

1

Amortization of intangible assets

18

18

18

19

21

-

(14)

54

61

(11)

Total noninterest expense

2,020

1,989

1,987

2,179

1,973

2

2

5,996

5,917

1

Income before taxes

$

917

$

973

$

1,106

$

840

$

1,099

(6)%

(17)%

$

2,996

$

3,132

(4)%

Pre-tax operating margin

31 %

31 %

34 %

28 %

36 %

32 %

35 %

Total revenue by line of business:

Asset Servicing

$

1,354

$

1,463

$

1,531

$

1,411

$

1,411

(7)%

(4)%

$

4,348

$

4,223

3 %

Pershing

538

578

653

579

575

(7)

(6)

1,769

1,708

4

Issuer Services

435

431

419

415

466

1

(7)

1,285

1,308

(2)

Treasury Services

323

340

339

329

312

(5)

4

1,002

946

6

Clearance and Collateral Management

277

295

300

280

293

(6)

(5)

872

853

2

Total revenue by line of business

$

2,927

$

3,107

$

3,242

$

3,014

$

3,057

(6)%

(4)%

$

9,276

$

9,038

3 %

  1. Asset servicing fees include the fees from the Clearance and Collateral Management business.
  2. Clearing services fees are almost entirely earned by our Pershing business.
  3. Other revenue includes investment management fees, financing-related fees, distribution and servicing revenue, securities gains and losses and investment and other income. N/M - Not meaningful.

9

THE BANK OF NEW YORK MELLON CORPORATION

INVESTMENT SERVICES BUSINESS

3Q20 vs.

YTD20 vs.

(dollars in millions, unless otherwise noted)

3Q20

2Q20

1Q20

4Q19

3Q19

2Q20

3Q19

YTD20

YTD19

YTD19

Average loans

$

40,308

$

43,113

$

41,789

$

38,721

$

37,005

(7)%

9 %

$

41,731

$

36,881

13 %

Average assets

$

329,324

$

335,288

$

304,089

$

278,098

$

269,926

(2)%

22 %

$

322,924

$

263,631

22 %

Average deposits

$

263,621

$

268,467

$

242,187

$

215,388

$

208,044

(2)%

27 %

$

258,112

$

201,472

28 %

AUC/A at period end (in trillions) (a)(b)

$

38.6

$

37.3

$

35.2

$

37.1

$

35.8

3 %

8 %

Market value of securities on loan at period end (in billions) (c)

$

378

$

384

$

389

$

378

$

362

(2)%

4 %

Pershing

Net new assets (U.S. platform) (in billions) (d)

$

12

$

11

$

31

$

33

$

19

N/M

N/M

Average active clearing accounts (U.S. platform) (in thousands)

6,556

6,507

6,437

6,340

6,283

1 %

4 %

Average long-term mutual fund assets (U.S. platform)

$

597,312

$

547,579

$

549,206

$

573,475

$

547,522

9 %

9 %

Average investor margin loans (U.S. platform)

$

9,350

$

9,235

$

9,419

$

9,420

$

9,222

1 %

1 %

Clearance and Collateral Management

Average tri-party collateral management balances (in billions)

$

3,417

$

3,573

$

3,724

$

3,562

$

3,550

(4)%

(4)%

  1. Sept. 30, 2020 information is preliminary.
  2. Consists of AUC/A primarily from the Asset Servicing business and, to a lesser extent, the Clearance and Collateral Management, Issuer Services, Pershing and Wealth Management businesses. Includes the AUC/A of CIBC Mellon of $1.4 trillion at Sept. 30, 2020, $1.3 trillion at June 30, 2020, $1.2 trillion at March 31, 2020, $1.5 trillion at Dec. 31, 2019 and $1.4 trillion at Sept. 30, 2019.
  3. Represents the total amount of securities on loan in our agency securities lending program managed by the Investment Services business. Excludes securities for which BNY Mellon acts as agent on behalf of CIBC Mellon clients, which totaled $62 billion at Sept. 30, 2020 and June 30, 2020, $59 billion at March 31, 2020, $60 billion at Dec. 31, 2019 and $66 billion at Sept. 30, 2019.
  4. Net new assets represents net flows of assets (e.g., net cash deposits and net securities transfers) in customer accounts in Pershing LLC, a U.S. broker-dealer.

N/M - Not meaningful.

10

THE BANK OF NEW YORK MELLON CORPORATION

INVESTMENT AND WEALTH MANAGEMENT BUSINESS

3Q20 vs.

YTD20 vs.

(dollars in millions)

3Q20

2Q20

1Q20

4Q19

3Q19

2Q20

3Q19

YTD20

YTD19

YTD19

Revenue:

Investment management fees (a)

$

828

$

782

$

812

$

836

$

830

6 %

- %

$

2,422

$

2,471

(2)%

Performance fees

7

5

50

48

2

N/M

N/M

62

35

77

Investment management and performance fees (b)

835

787

862

884

832

6

-

2,484

2,506

(1)

Distribution and servicing

31

34

43

44

45

(9)

(31)

108

134

(19)

Other (a)

5

17

(59)

(4)

(39)

N/M

N/M

(37)

(79)

N/M

Total fee and other revenue (a)

871

838

846

924

838

4

4

2,555

2,561

-

Net interest revenue

47

48

52

47

49

(2)

(4)

147

175

(16)

Total revenue

918

886

898

971

887

4

3

2,702

2,736

(1)

Provision for credit losses

12

7

9

-

-

N/M

N/M

28

(1)

N/M

Noninterest expense (ex. amortization of intangible assets)

653

650

687

722

582

-

12

1,990

1,888

5

Amortization of intangible assets

8

8

8

9

10

-

(20)

24

28

(14)

Total noninterest expense

661

658

695

731

592

-

12

2,014

1,916

5

Income before taxes

$

245

$

221

$

194

$

240

$

295

11 %

(17)%

$

660

$

821

(20)%

Pre-tax operating margin

27 %

25 %

22 %

25 %

33 %

24 %

30 %

Adjusted pre-tax operating margin - Non-GAAP(c)

29 %

28 %

24 %

27 %

37 %

27 %

33 %

Total revenue by line of business:

Investment Management

$

641

$

621

$

620

$

692

$

608

3 %

5 %

$

1,882

$

1,870

1 %

Wealth Management

277

265

278

279

279

5

(1)

820

866

(5)

Total revenue by line of business

$

918

$

886

$

898

$

971

$

887

4 %

3 %

$

2,702

$

2,736

(1)%

Average loans

$

11,503

$

11,791

$

12,124

$

12,022

$

12,013

(2)%

(4)%

$

11,805

$

12,184

(3)%

Average assets

$

30,160

$

30,327

$

30,543

$

28,481

$

27,840

(1)%

8 %

$

30,343

$

29,815

2 %

Average deposits

$

17,570

$

17,491

$

16,144

$

15,195

$

14,083

- %

25 %

$

17,070

$

14,831

15 %

  1. Total fee and other revenue includes the impact of the consolidated investment management funds, net of noncontrolling interests. Additionally, other revenue includes asset servicing fees, treasury services fees, foreign exchange and other trading revenue and investment and other income.
  2. On a constant currency basis (Non-GAAP), investment management and performance fees decreased 1% compared with 3Q19. See "Supplemental Information - Explanation of GAAP and Non- GAAP Financial Measures" beginning on page 16 for the reconciliation of this Non-GAAP measure.
  3. Net of distribution and servicing expense. See "Supplemental Information - Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 16 for the reconciliation of this Non-GAAP measure.

N/M - Not meaningful.

11

THE BANK OF NEW YORK MELLON CORPORATION

AUM BY PRODUCT, AUM FLOWS AND WEALTH MANAGEMENT CLIENT ASSETS

3Q20 vs.

(dollars in billions)

3Q20

2Q20

1Q20

4Q19

3Q19

2Q20

3Q19

AUM by product type (a)(b)

Equity

$

149

$

141

$

120

$

154

$

147

6 %

1 %

Fixed income

241

224

211

224

211

8

14

Index

350

333

274

339

321

5

9

Liability-driven investments

788

752

705

728

742

5

6

Multi-asset and alternative investments

193

185

171

192

182

4

6

Cash

320

326

315

273

278

(2)

15

Total AUM by product type

$

2,041

$

1,961

$

1,796

$

1,910

$

1,881

4 %

9 %

Changes in AUM (a)(b)

Beginning balance of AUM

$

1,961

$

1,796

$

1,910

$

1,881

$

1,843

Net inflows (outflows):

Long-term strategies:

Equity

(4)

(2)

(2)

(6)

(4)

Fixed income

1

4

-

5

2

Liability-driven investments

14

(2)

(5)

(3)

(4)

Multi-asset and alternative investments

(3)

-

(1)

3

(1)

Total long-term active strategies inflows (outflows)

8

-

(8)

(1)

(7)

Index

(3)

9

3

(5)

(3)

Total long-term strategies inflows (outflows)

5

9

(5)

(6)

(10)

Short-term strategies:

Cash

(10)

11

43

(7)

11

Total net (outflows) inflows

(5)

20

38

(13)

1

Net market impact

41

143

(91)

(20)

66

Net currency impact

44

2

(61)

62

(29)

Ending balance of AUM

$

2,041

$

1,961

$

1,796

$

1,910

$

1,881

4 %

9 %

Wealth Management client assets (a)(c)

$

265

$

254

$

236

$

266

$

259

4 %

2 %

  1. Sept. 30, 2020 information is preliminary.
  2. Excludes securities lending cash management assets and assets managed in the Investment Services business.
  3. Includes AUM and AUC/A in the Wealth Management business.

12

THE BANK OF NEW YORK MELLON CORPORATION

OTHER SEGMENT

(in millions)

3Q20

2Q20

1Q20

4Q19

3Q19

YTD20

YTD19

Fee revenue (loss)

$

11

$

29

$

21

$

817

(a)

$

(5)

$

61

$

36

Net securities gains (losses)

9

9

9

(23)

(1)

27

7

Total fee and other revenue (loss)

20

38

30

794

(6)

88

43

Net interest (expense)

(25)

(36)

(44)

(10)

(80)

(105)

(150)

Total (loss) revenue

(5)

2

(14)

784

(86)

(17)

(107)

Provision for credit losses

7

(9)

11

(3)

(1)

9

(5)

Noninterest expense

-

39

30

54

25

69

103

(Loss) income before taxes

$

(12)

$

(28)

$

(55)

$

733

$

(110)

$

(95)

$

(205)

Average loans and leases

$

1,805

$

1,815

$

1,961

$

1,974

$

1,817

$

1,861

$

1,789

Average assets

$

55,381

$

49,744

$

50,646

$

47,762

$

52,913

$

51,936

$

49,683

(a) Includes a gain on sale of an equity investment.

13

THE BANK OF NEW YORK MELLON CORPORATION

SECURITIES PORTFOLIO

June 30,

3Q20

Sept. 30, 2020

Fair value

Ratings (c)

2020

change in

as a % of

A1+/

unrealized

Amortized

amortized Unrealized

% Floating

AAA/

A+/

BBB+/

BB+ and

A2 &

Not

(dollars in millions)

Fair value

Fair value

gain (loss)

cost

cost (a)

gain (loss)

rate (b)

AA-

A-

BBB-

lower

SP-1+

rated

Agency RMBS

$

60,401

$

47

$

61,348

$

62,922

103 % $

1,574

16 %

100 %

- %

- %

- %

- %

- %

U.S. Treasury

28,651

83

26,454

26,964

102

510

42

100

-

-

-

-

-

Sovereign debt/sovereign

16,868

8

14,908

15,086

101

178

10

67

7

25

1

-

-

guaranteed

Agency commercial MBS

11,731

45

11,340

11,777

104

437

32

100

-

-

-

-

-

Supranational

5,484

5

7,121

7,176

101

55

46

100

-

-

-

-

-

Foreign covered bonds

5,598

14

5,777

5,841

101

64

35

99

1

-

-

-

-

U.S. government agencies

5,056

8

5,566

5,646

101

80

21

100

-

-

-

-

-

CLOs

4,432

44

4,707

4,657

99

(50)

100

99

-

-

-

-

1

Foreign government

3,575

4

3,924

3,967

101

43

29

94

6

-

-

-

-

agencies

Other asset-backed

2,743

8

2,903

2,930

101

27

25

99

-

-

1

-

-

securities

Non-agency commercial

2,602

34

2,565

2,684

105

119

23

100

-

-

-

-

-

MBS

Non-agency RMBS (d)

1,672

14

1,864

2,013

108

149

55

60

5

2

20

-

13

State and political

1,196

(1)

1,676

1,705

102

29

1

83

13

3

-

-

1

subdivisions

Corporate bonds

831

-

988

1,030

104

42

-

19

64

17

-

-

-

Commercial paper and

certificates of deposits

3,392

(4)

650

652

100

2

55

-

-

-

-

100

-

(e)(f)

Other

1

-

1

1

100

-

-

-

-

-

-

-

100

Total securities

$

154,233 (g)

$

309

$

151,792

$

155,051

(g)(h)

102 % $

3,259

(g)(i)

27 %

95 %

2 %

3 %

- %

- %

- %

  1. Amortized cost reflects historical impairments.
  2. Includes the impact of hedges.
  3. Represents ratings by S&P, or the equivalent.
  4. Includes RMBS that were included in the former Grantor Trust of $538 million at June 30, 2020 and $512 million at Sept. 30, 2020.
  5. Includes amounts purchased from affiliated money market funds of $1,853 million at June 30, 2020 and $357 million at Sept. 30, 2020.
  6. Includes amounts funded by borrowings from the Federal Reserve Bank under its Money Market Mutual Fund Liquidity Facility program of $1,539 million at June 30, 2020 and $295 million at Sept. 30, 2020.
  7. Includes net unrealized losses on derivatives hedging securities available-for-sale (including terminated hedges) of $1,817 million at June 30, 2020 and $1,650 million at Sept. 30, 2020.
  8. The fair value of available-for-sale securities totaled $107,593 million at Sept. 30, 2020, net of hedges, or 69% of the fair value of the securities portfolio, net of hedges. The fair value of the held-to- maturity securities totaled $47,458 million at Sept. 30, 2020, or 31% of the fair value of the securities portfolio, net of hedges.
  9. Includes unrealized gains of $1,897 million at Sept. 30, 2020 related to available-for-sale securities, net of hedges, and $1,362 million related to held-to-maturity securities.

Note: The amortizable purchase premium (net of discount) relating to securities was $1,917 million at Sept. 30, 2020 and the 3Q20 amortization of that purchase premium was $152 million in 3Q20.

14

THE BANK OF NEW YORK MELLON CORPORATION

ALLOWANCE FOR CREDIT LOSSES AND NONPERFORMING ASSETS

2020

2019

(dollars in millions)

Sept. 30

June 30

March 31

Dec. 31

Sept. 30

Allowance for credit losses - beginning of period:

Allowance for loan losses

$

302

$

140

$

122

$

127

$

146

Allowance for lending-related commitments

152

148

94

97

95

Allowance for other financial instruments

21

(a)

41

(a)

N/A

N/A

N/A

Allowance for credit losses - beginning of period

$

475

$

329

$

216

$

224

$

241

Impact of adopting ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit

N/A

N/A

(55)

(b)

N/A

N/A

Losses on Financial Instruments, effective Jan. 1, 2020

Net recoveries (charge-offs):

Charge-offs

-

-

(1)

(1)

(1)

Recoveries

2

3

-

1

-

Total net recoveries (charge-offs)

2

3

(1)

-

(1)

Provision for credit losses

9

(b)

143

(b)

169

(b)

(8)

(16)

Allowance for credit losses - end of period

$

486

$

475

$

329

$

216

$

224

Allowance for credit losses - end of period:

Allowance for loan losses

$

325

$

302

$

140

$

122

$

127

Allowance for lending-related commitments

135

152

148

94

97

Allowance for other financial instruments

26

(a)

21

(a)

41

(a)

N/A

N/A

Allowance for credit losses - end of period

$

486

$

475

$

329

$

216

$

224

Allowance for loan losses as a percentage of total loans

0.59 %

0.55 %

0.22 %

0.22 %

0.23 %

Nonperforming assets

$

84

$

88

$

88

$

89

$

88

  1. Includes allowance for credit losses on federal funds sold and securities purchased under resale agreements, available-for-sale securities, accounts receivable, cash and due from banks and interest-bearing deposits with banks.
  2. Includes all instruments within the scope of ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments.

N/A - Not applicable.

15

THE BANK OF NEW YORK MELLON CORPORATION

SUPPLEMENTAL INFORMATION - EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES

BNY Mellon has included in this Financial Supplement certain Non-GAAP financial measures on a tangible basis as a supplement to GAAP information, which exclude goodwill and intangible assets, net of deferred tax liabilities. We believe that the return on tangible common equity is additional useful information for investors because it presents a measure of those assets that can generate income, and the tangible book value per common share is additional useful information because it presents the level of tangible assets in relation to shares of common stock outstanding.

Net interest revenue, on a fully taxable equivalent ("FTE") basis - Non-GAAP and net interest margin (FTE) - Non-GAAP and other FTE measures include the tax equivalent adjustments on tax-exempt income which allows for the comparison of amounts arising from both taxable and tax-exempt sources and is consistent with industry practice. The adjustment to an FTE basis has no impact on net income.

BNY Mellon has also included the adjusted pre-tax operating margin - Non-GAAP, which is the pre-tax operating margin for the Investment and Wealth Management business net of distribution and servicing expense that was passed to third parties who distribute or service our managed funds. We believe that this measure is useful when evaluating the performance of the Investment and Wealth Management business relative to industry competitors.

The presentation of the growth rates of investment management and performance fees on a constant currency basis permits investors to assess the significance of changes in foreign currency exchange rates. Growth rates on a constant currency basis were determined by applying the current period foreign currency exchange rates to the prior period revenue. We believe that this presentation, as a supplement to GAAP information, gives investors a clearer picture of the related revenue results without the variability caused by fluctuations in foreign currency exchange rates.

Notes:

Certain immaterial reclassifications/revisions have been made to prior periods to place them on a basis comparable with the current period's presentation.

In businesses where average deposits are greater than average loans, average assets include an allocation of investment securities equal to the difference.

Return on common and tangible common equity ratios are annualized.

Return on common equity and tangible common equity reconciliation

(dollars in millions)

3Q20

2Q20

1Q20

4Q19

3Q19

YTD20

YTD19

Net income applicable to common shareholders of The Bank of New York Mellon Corporation - GAAP

$

876

$

901

$

944

$

1,391

$

1,002

$

2,721

$

2,881

Add: Amortization of intangible assets

26

26

26

28

30

78

89

Less: Tax impact of amortization of intangible assets

7

6

6

7

7

19

21

Adjusted net income applicable to common shareholders of The Bank of New York Mellon

$

895

$

921

$

964

$

1,412

$

1,025

$

2,780

$

2,949

Corporation, excluding amortization of intangible assets - Non-GAAP

Average common shareholders' equity

$

39,924

$

38,476

$

37,664

$

37,842

$

37,597

$

38,693

$

37,392

Less: Average goodwill

17,357

17,243

17,311

17,332

17,267

17,304

17,328

Average intangible assets

3,039

3,058

3,089

3,119

3,141

3,062

3,176

Add: Deferred tax liability - tax deductible goodwill

1,132

1,119

1,109

1,098

1,103

1,132

1,103

Deferred tax liability - intangible assets

666

664

666

670

679

666

679

Average tangible common shareholders' equity - Non-GAAP

$

21,326

$

19,958

$

19,039

$

19,159

$

18,971

$

20,125

$

18,670

Return on common equity - GAAP

8.7 %

9.4 %

10.1 %

14.6 %

10.6 %

9.4 %

10.3 %

Return on tangible common equity - Non-GAAP

16.7 %

18.5 %

20.4 %

29.3 %

21.4 %

18.5 %

21.1 %

16

THE BANK OF NEW YORK MELLON CORPORATION

SUPPLEMENTAL INFORMATION - EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES

Book value and tangible book value per common share reconciliation

2020

2019

(dollars in millions, except common shares)

Sept. 30

June 30

March 31

Dec. 31

Sept. 30

BNY Mellon shareholders' equity at period end - GAAP

$

44,917

$

43,697

$

41,145

$

41,483

$

41,120

Less: Preferred stock

4,532

4,532

3,542

3,542

3,542

BNY Mellon common shareholders' equity at period end - GAAP

40,385

39,165

37,603

37,941

37,578

Less: Goodwill

17,357

17,253

17,240

17,386

17,248

Intangible assets

3,026

3,045

3,070

3,107

3,124

Add: Deferred tax liability - tax deductible goodwill

1,132

1,119

1,109

1,098

1,103

Deferred tax liability - intangible assets

666

664

666

670

679

BNY Mellon tangible common shareholders' equity at period end - Non-GAAP

$

21,800

$

20,650

$

19,068

$

19,216

$

18,988

Period-end common shares outstanding (in thousands)

886,136

885,862

885,443

900,683

922,199

Book value per common share - GAAP

$

45.58

$

44.21

$

42.47

$

42.12

$

40.75

Tangible book value per common share - Non-GAAP

$

24.60

$

23.31

$

21.53

$

21.33

$

20.59

Net interest margin reconciliation

(dollars in millions)

3Q20

2Q20

1Q20

4Q19

3Q19

Net interest revenue - GAAP

$

703

$

780

$

814

$

815

$

730

Add: Tax equivalent adjustment

2

2

2

2

3

Net interest revenue (FTE) - Non-GAAP

$

705

$

782

$

816

$

817

$

733

Average interest-earning assets

$

357,634

$

357,562

$

323,936

$

297,987

$

294,154

Net interest margin - GAAP (a)

0.79 %

0.88 %

1.01 %

1.09 %

0.99 %

Net interest margin (FTE) - Non-GAAP(a)

0.79 %

0.88 %

1.01 %

1.09 %

1.00 %

(a) Net interest margin is annualized.

17

THE BANK OF NEW YORK MELLON CORPORATION

SUPPLEMENTAL INFORMATION - EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES

Pre-tax operating margin reconciliation - Investment and Wealth Management business

(dollars in millions)

3Q20

2Q20

1Q20

4Q19

3Q19

YTD20

YTD19

Income before income taxes - GAAP

$

245

$

221

$

194

$

240

$

295

$

660

$

821

Total revenue - GAAP

$

918

$

886

$

898

$

971

$

887

$

2,702

$

2,736

Less: Distribution and servicing expense

85

86

91

93

98

262

283

Adjusted total revenue, net of distribution and servicing expense - Non-GAAP

$

833

$

800

$

807

$

878

$

789

$

2,440

$

2,453

Pre-tax operating margin - GAAP (a)

27 %

25 %

22 %

25 %

33 %

24 %

30 %

Adjusted pre-tax operating margin, net of distribution and servicing expense - Non-GAAP(a)

29 %

28 %

24 %

27 %

37 %

27 %

33 %

(a) Income before income taxes divided by total revenue.

Constant currency reconciliations

3Q20 vs.

(dollars in millions)

3Q20

3Q19

3Q19

Consolidated:

Investment management and performance fees - GAAP

$

835

$

832

- %

Impact of changes in foreign currency exchange rates

-

11

Adjusted investment management and performance fees - Non-GAAP

$

835

$

843

(1)%

Investment and Wealth Management business:

Investment management and performance fees - GAAP

$

835

$

832

- %

Impact of changes in foreign currency exchange rates

-

11

Adjusted investment management and performance fees - Non-GAAP

$

835

$

843

(1)%

18

Disclaimer

The Bank of New York Mellon Corporation published this content on 15 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2020 22:49:04 UTC


© Publicnow 2020
All news about BANK OF NEW YORK MELLON CORPORATION (THE)
01/15BANK OF NEW YORK MELLON CORPORATION : annual earnings release
01/14EXCLUSIVE : Wells Fargo close to deal with buyout firms for asset management bus..
RE
01/13BANK OF NEW YORK MELLON : Amundi and BNY Mellon Announce Strategic Alliance to P..
PR
01/12Bank of New York Mellon Registers First Branch Office in Spain
MT
01/11BANK OF NEW YORK MELLON : Piper Sandler Adjusts Bank of New York Mellon's Price ..
MT
01/11BANK OF NEW YORK MELLON : JP Morgan Adjusts Bank of New York Mellon PT to $46.50..
MT
01/11BNY MELLON INVESTMENT MANAGEMENT : Announces Dawn Tutje as the New Head of Finan..
PR
01/06BANK OF NEW YORK MELLON : Euan Munro appointed chief executive officer of Newton..
PR
01/05BANK OF NEW YORK MELLON : Seaport Global Adjusts Price Target for Bank of New Yo..
MT
01/05BANK OF NEW YORK MELLON : Goldman Sachs Adjusts Bank of New York Mellon's Price ..
MT
More news
Financials (USD)
Sales 2020 15 759 M - -
Net income 2020 3 476 M - -
Net Debt 2020 34 382 M - -
P/E ratio 2020 11,7x
Yield 2020 2,72%
Capitalization 40 381 M 40 381 M -
EV / Sales 2020 4,74x
EV / Sales 2021 4,88x
Nbr of Employees 48 600
Free-Float 64,0%
Chart BANK OF NEW YORK MELLON CORPORATION (THE)
Duration : Period :
Bank of New York Mellon Corporation (The) Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends BANK OF NEW YORK MELLON CORPORATION (THE)
Short TermMid-TermLong Term
TrendsBullishBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 19
Average target price 48,97 $
Last Close Price 45,57 $
Spread / Highest target 29,5%
Spread / Average Target 7,47%
Spread / Lowest Target -5,64%
EPS Revisions
Managers and Directors
NameTitle
Thomas P. Gibbons Chief Executive Officer & Director
Joseph J. Echevarria Non-Executive Chairman
Emily H. Portney Chief Financial Officer
Bridget E. Engle Chief Information Officer & Senior Executive VP
Sabet Elias Chief Technology Officer
Sector and Competitors
1st jan.Capitalization (M$)
BANK OF NEW YORK MELLON CORPORATION (THE)7.38%40 381
BLACKROCK, INC.0.86%111 007
UBS GROUP AG7.98%54 294
T. ROWE PRICE GROUP INC.3.32%35 419
STATE STREET CORPORATION6.05%27 229
AMERIPRISE FINANCIAL INC.7.18%24 572