Bank of New York Mellon : Q2 2022 Quarterly Financial Supplement (PDF)

The Bank of New York Mellon Corporation

Financial Supplement Second Quarter 2022

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
Securities Services Business Segment	9
Market and Wealth Services Business Segment	11
Investment and Wealth Management Business Segment	13
AUM by Product Type, Changes in AUM and Wealth Management Client Assets	14
Other Segment	15
Other
Securities Portfolio	16
Allowance for Credit Losses and Nonperforming Assets	17
Supplemental Information
Explanation of GAAP and Non-GAAP Financial Measures	18

THE BANK OF NEW YORK MELLON CORPORATION

CONSOLIDATED FINANCIAL HIGHLIGHTS

(dollars in millions, except per common share amounts, or unless otherwise																	2Q22 vs.								YTD22 vs.
noted)			2Q22			1Q22			4Q21			3Q21			2Q21	1Q22		2Q21			YTD22			YTD21		YTD21
Selected income statement data
Fee and other revenue	$	3,430	$	3,228	$	3,338	$	3,394	$	3,315		6%	3%	$	6,658	$	6,581	1%
Net interest revenue			824			698			677			641			645		18	28			1,522			1,300	17
Total revenue			4,254			3,926			4,015			4,035			3,960		8	7			8,180			7,881	4
Provision for credit losses			47			2			(17)			(45)			(86)		N/M		N/M			49			(169)		N/M
Noninterest expense			3,112			3,006			2,967			2,918			2,778		4	12			6,118			5,629	9
Income before income taxes			1,095			918			1,065			1,162			1,268		19	(14)			2,013			2,421	(17)
Provision for income taxes			231			153			196			219			241		51	(4)			384			462	(17)
Net income		$	864		$	765		$	869		$	943		$	1,027		13%	(16)%		$	1,629		$	1,959	(17)%
Net income applicable to common shareholders of	$	835	$	699	$	822	$	881	$	991		19%	(16)%	$	1,534	$	1,849	(17)%
The Bank of New York Mellon Corporation
Diluted earnings per common share		$	1.03		$	0.86		$	1.01		$	1.04		$	1.13		20%	(9)%		$	1.88		$	2.10	(10)%
Average common shares and equivalents outstanding - diluted (in	813,590	813,986	817,345	849,028	873,475		-%	(7)%	813,894	879,409	(7)%
thousands)
Financial ratios(Returns are annualized)
Pre-tax operating margin			26%			23%			27%			29%			32%							25%			31%
Return on common equity			9.3%			7.6%			8.6%			8.8%			9.8%							8.4%			9.2%
Return on tangible common equity - Non-GAAP(a)			19.2%			15.4%			17.2%			16.8%			18.6%							17.2%			17.3%
Non-U.S. revenue as a percentage of total revenue			36%			35%			38%			38%			38%							35%			38%
Period end
Assets under custody and/or administration ("AUC/A") (in trillions) (b)	$	43.0	$	45.5	$	46.7	$	45.3	$	45.0		(5)%	(4)%
Assets under management ("AUM") (in trillions)	$	1.94	$	2.27	$	2.43	$	2.31	$	2.32		(15)%	(17)%
Full-time employees			50,800			49,600			49,100			48,900			48,800		2%	4%
Book value per common share	$	44.73	$	45.76	$	47.50	$	47.30	$	47.20
Tangible book value per common share - Non-GAAP(a)	$	22.02	$	22.76	$	24.31	$	24.88	$	25.64
Cash dividends per common share	$	0.34	$	0.34	$	0.34	$	0.34	$	0.31
Common dividend payout ratio			33%			40%			34%			34%			28%
Closing stock price per common share	$	41.71	$	49.63	$	58.08	$	51.84	$	51.23
Market capitalization	$ 33,706	$ 40,091	$ 46,705	$ 42,811	$ 44,220
Common shares outstanding (in thousands)	808,103	807,798	804,145	825,821	863,174
Capital ratios at period end(c)
Common Equity Tier 1 ("CET1") ratio			10.0%			10.1%			11.2%			11.7%			12.6%
Tier 1 capital ratio			12.8%			12.9%			14.0%			14.4%			15.2%
Total capital ratio			13.6%			13.7%			14.9%			15.2%			16.0%
Tier 1 leverage ratio			5.2%			5.3%			5.5%			5.7%			6.0%
Supplementary leverage ratio ("SLR")			6.2%			6.2%			6.6%			7.0%			7.5%

1. Non-GAAPinformation, for all periods presented, excludes goodwill and intangible assets, net of deferred tax liabilities. See "Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 18 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 $1.5 trillion at June 30, 2022 and $1.7 trillion at March 31, 2022, Dec. 31, 2021, Sept. 30, 2021 and June 30, 2021.
3. Regulatory capital ratios for June 30, 2022 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 June 30, 2022 was the Advanced Approaches, for March 31, 2022 and Dec. 31, 2021 was the Standardized Approach, and for Sept. 30, 2021 and June 30, 2021 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.

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THE BANK OF NEW YORK MELLON CORPORATION

CONDENSED CONSOLIDATED INCOME STATEMENT

(dollars in millions, except per share amounts; common shares in																	2Q22 vs.								YTD22 vs.
thousands)			2Q22			1Q22			4Q21			3Q21			2Q21	1Q22		2Q21			YTD22			YTD21		YTD21
Revenue
Investment services fees	$	2,206	$	1,993	$	2,061	$	2,091	$	2,076		11%	6%	$	4,199	$	4,132	2%
Investment management and performance fees			833			883			896			913			889		(6)	(6)			1,716			1,779	(4)
Foreign exchange revenue			222			207			199			185			184		7	21			429			415	3
Financing-related fees			44			45			47			48			48		(2)	(8)			89			99	(10)
Distribution and servicing fees			34			30			28			28			27		13	26			64			56	14
Total fee revenue			3,339			3,158			3,231			3,265			3,224		6	4			6,497			6,481		-
Investment and other revenue			91			70			107			129			91		N/M		N/M			161			100		N/M
Total fee and other revenue			3,430			3,228			3,338			3,394			3,315		6	3			6,658			6,581	1
Net interest revenue			824			698			677			641			645		18	28			1,522			1,300	17
Total revenue			4,254			3,926			4,015			4,035			3,960		8	7			8,180			7,881	4
Provision for credit losses			47			2			(17)			(45)			(86)		N/M		N/M			49			(169)		N/M
Noninterest expense
Staff			1,623			1,702			1,633			1,584			1,518		(5)	7			3,325			3,120	7
Software and equipment			405			399			379			372			365		2	11			804			727	11
Professional, legal and other purchased services			379			370			390			363			363		2	4			749			706	6
Sub-custodian and clearing			131			118			120			129			132		11	(1)			249			256	(3)
Net occupancy			125			122			133			120			122		2	2			247			245	1
Distribution and servicing			90			79			75			76			73		14	23			169			147	15
Business development			43			30			44			22			22		43	95			73			41	78
Bank assessment charges			37			35			30			34			35		6	6			72			69	4
Amortization of intangible assets			17			17			19			19			20		-	(15)			34			44	(23)
Other			262			134			144			199			128		96	105			396			274	45
Total noninterest expense			3,112			3,006			2,967			2,918			2,778		4	12			6,118			5,629	9
Income before income taxes			1,095			918			1,065			1,162			1,268		19	(14)			2,013			2,421	(17)
Provision for income taxes			231			153			196			219			241		51	(4)			384			462	(17)
Net income			864			765			869			943			1,027		13	(16)			1,629			1,959	(17)
Net loss (income) attributable to noncontrolling interests			5			8			(6)			4			(5)		N/M		N/M			13			(10)		N/M
Preferred stock dividends			(34)			(74)			(41)			(66)			(31)		N/M		N/M			(108)			(100)		N/M
Net income applicable to common shareholders of The Bank of	$	835	$	699	$	822	$	881	$	991		19%	(16)%	$	1,534	$	1,849	(17)%
New York Mellon Corporation
Average common shares and equivalents outstanding: Basic			810,903			809,469			811,463			844,088			869,460		-%	(7)%			810,233			876,006	(8)%
Diluted			813,590			813,986			817,345			849,028			873,475		-%	(7)%			813,894			879,409	(7)%
Earnings per common share: Basic	$	1.03	$	0.86	$	1.01	$	1.04	$	1.14		20%	(10)%	$	1.89	$	2.11	(10)%
Diluted	$	1.03	$	0.86	$	1.01	$	1.04	$	1.13		20%	(9)%	$	1.88	$	2.10	(10)%
N/M - Not meaningful.

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THE BANK OF NEW YORK MELLON CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

			2022							2021
(in millions)		June 30			March 31			Dec. 31			Sept. 30			June 30
Assets
Cash and due from banks	$	5,185	$	6,143	$	6,061	$	6,752	$	5,154
Interest-bearing deposits with the Federal Reserve and other central banks		125,372			135,691			102,467			126,959			126,355
Interest-bearing deposits with banks		16,639			18,268			16,630			20,057			21,270
Federal funds sold and securities purchased under resale agreements		22,940			27,131			29,607			28,497			29,762
Securities		150,844			153,396			158,705			157,274			155,906
Trading assets		10,759			14,703			16,577			17,854			15,520
Loans		69,347			68,052			67,787			64,328			63,547
Allowance for loan losses		(181)			(171)			(196)			(233)			(269)
Net loans		69,166			67,881			67,591			64,095			63,278
Premises and equipment		3,354			3,359			3,431			3,422			3,442
Accrued interest receivable		548			467			457			464			492
Goodwill		17,271			17,462			17,512			17,420			17,487
Intangible assets		2,934			2,968			2,991			2,941			2,964
Other assets		27,609			26,342			22,409			24,798			25,333
Total assets	$	452,621		$	473,811		$	444,438		$	470,533		$	466,963
Liabilities
Deposits	$	325,813	$	345,565	$	319,694	$	343,139	$	338,670
Federal funds purchased and securities sold under repurchase agreements		11,434			13,181			11,566			11,973			12,425
Trading liabilities		5,595			5,587			5,469			5,152			6,451
Payables to customers and broker-dealers		25,769			26,608			25,150			26,002			23,704
Other borrowed funds		520			312			749			767			451
Accrued taxes and other expenses		5,011			4,534			5,767			5,609			5,213
Other liabilities		9,724			10,626			6,721			8,796			8,626
Long-term debt		27,610			25,246			25,931			25,043			25,629
Total liabilities		411,476			431,659			401,047			426,481			421,169
Temporary equity
Redeemable noncontrolling interests		154			155			161			178			169
Permanent equity
Preferred stock		4,838			4,838			4,838			4,541			4,541
Common stock		14			14			14			14			14
Additional paid-in capital		28,316			28,258			28,128			28,075			28,006
Retained earnings		37,644			37,088			36,667			36,125			35,540
Accumulated other comprehensive loss, net of tax		(5,307)			(3,881)			(2,213)			(2,003)			(1,670)
Less: Treasury stock, at cost		(24,521)			(24,518)			(24,400)			(23,151)			(21,150)
Total The Bank of New York Mellon Corporation shareholders' equity		40,984			41,799			43,034			43,601			45,281
Nonredeemable noncontrolling interests of consolidated investment management funds		7			198			196			273			344
Total permanent equity		40,991			41,997			43,230			43,874			45,625
Total liabilities, temporary equity and permanent equity	$	452,621		$	473,811		$	444,438		$	470,533		$	466,963

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