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8-K - FORM 8-K - Bank of New York Mellon Corpform8-k_earningsxjuly21.htm
EX-99.2 - EXHIBIT 99.2 - Bank of New York Mellon Corpex992_quarterlytrends2q15.htm
EX-99.1 - EXHIBIT 99.1 - Bank of New York Mellon Corpex991_earningsrelease2q15.htm
EX-99.4 - EXHIBIT 99.4 - Bank of New York Mellon Corpex994quarterlyhighlights.htm


July 21, 2015
KEY FACTS – Second Quarter 2015
Delivering for Shareholders
Total Shareholder Return
2013
2014
YTD 6/30/15
BNY Mellon
38.6%
18.3%
4.4%
11-Member Peer Group Median (a)
38.9%
13.8%
0.7%
S&P 500 Financials
35.6%
15.2%
(0.4)%
S&P 500 Index
32.4%
13.7%
1.2%

Strategic Priorities to Drive Growth
Driving Revenue Growth
• Delivered revenue growth across our businesses
• Continued growth in Clearing and Global Collateral Services
Business Improvement Process
• Continued expense control
• Positive results reflect benefits in areas where we have been investing in enhanced capabilities for our clients
• Divesting Meriten investment manager
Being a Strong, Safe, Trusted Counterparty
• Strong liquidity and improving capital positions
Generating Excess Capital and Deploying Capital Effectively
• Executing on capital plan and returning value to shareholders
o    More than $1B returned in share repurchases and dividends
Attracting and Retaining Top Talent
• Further improving expertise in Investment Services and Client Technology Solutions

Positive Growth Trends
Total revenue in 2Q15 increased 3% year-over-year, as adjusted (b)
Continued fee income growth
Investment Management and performance fees decreased 1% year-over-year, or increased 5% on a constant currency basis, as adjusted (b)
Investment Services fees increased 4% year-over-year
Combination of Investment Management and Investment Services positions us well for future growth
Expense Control and Significant Positive Operating Leverage
Continued progress on expense control in 2Q15
Expenses in 2Q15 decreased 1% year-over-year, as adjusted (b)
Generated more than 460 basis points of positive operating leverage, as adjusted (b)
Continued AUM and AUC/A Growth (c)
AUM up 5% in 2Q15 versus 2Q14
$15 billion of net long-term AUM outflows in 2Q15
AUC/A increased slightly in 2Q15 versus 2Q14
$1.02 trillion of estimated new business wins in 2Q15

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Managing Technology as a Strategic Asset
Optimizing our infrastructure to create efficiencies and cost savings
Insourcing application development to retain talent and expertise
Shifting our investments from tactical to strategic, enhancing client experience
Digitizing BNY Mellon: BNY Mellon Extreme Platform (BXP); Digital Pulse
Extending technology solutions leadership: Eagle, Albridge, HedgeMark, NetX360
Deploying NEXEN: Our next generation, intelligent and secure, open-architecture platform
Initiatives to Streamline Organization and Drive Growth
Revenue initiatives
Expense Initiatives
o     Entered significant strategic partnership in Asset Servicing
o     Exited Central Securities Depository
o     Extending private banking solutions to Pershing clients
o     Exiting U.K.Transfer Agency retail business
o     Created direct lending capability through
     investment management
o     Exited separately managed accounts solutions business in Asia
o     Created dedicated technology solutions unit
     to increase return on technology investment
o     Exited Transition Management and derivatives clearing (U.S. & Europe)
o     Created the Markets Group
o     Sold One Wall Street Headquarters
Numerous ongoing initiatives focused on: Portfolio Review; Operations and Technology Enhancements; Real Estate & Procurement; and Process Improvement
Continued Capital Generation and Returning Value to Shareholders
Capital generation and strong liquidity position
Key capital ratios continue to improve, ending 2Q15 with an estimated common equity tier 1 ratio, fully phased-in (Non-GAAP) under the Advanced Approach of 9.9% (b)
Compliant with estimated U.S. LCR1: >100% (current requirement is 80%)
2015 Capital Plan: repurchase up to $3.1 billion in common stock and maintain strong dividend payout ratio
Repurchased 19.4 million common shares for $834 million in 2Q15
Delivered return on tangible common equity of 22% in 2Q15 (b)
Post financial crisis, our capital generation enabled us to more than double tangible capital
Financial Goals2 -- Operating Basis: 2015 Through 2017
 
Flat
Normalizing
Revenue Growth3
3.5 - 4.5%
6 - 8%
EPS Growth3
7 - 9%
12 - 15%
Return on Tangible Common Equity
17 - 19%
20 - 22%
Assumptions
NIM: 95 - 100 bps
Operating margin: 28 - 30%
Environment: no deterioration in volatility, volume, short-term interest rates
NIM: 125 - 150 bps
Operating margin: 30 - 32%
 
100% payout ratio
Execution on expense and revenue initiatives
Equity market, +5% p.a.
Reasonable regulatory outcomes
Deposits, money market balances and fee waivers recovery as modeled

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AUM = Assets Under Management; AUC/A = Assets Under Custody/Administration

(a)
For information about our 11-Member Peer Group, see page 46 of our Proxy Statement dated
March 13, 2015.

(b)
This fact sheet includes Non-GAAP measures. These measures are used by management to monitor financial performance and capital adequacy and BNY Mellon believes they are useful to investors in analyzing financial results and trends of ongoing operations because they permit a focus on period-to-period comparisons, which relate to the ability of BNY Mellon to enhance revenue and limit expenses in circumstances where such matters are within BNY Mellon's control.  For a reconciliation of these measures and further information, see “Supplemental information – Explanation of GAAP and Non-GAAP Financial Measures” in BNY Mellon’s Quarterly Earnings Release dated July 21, 2015, filed as an exhibit to the Current Report on Form 8-K to which this fact sheet is furnished as an exhibit.

(c)
Preliminary.

1 Estimated U.S. Liquidity Coverage Ratio (LCR) is compliant with the fully-phased in requirements as
of June 30, 2015 based on our current understanding of the U.S. LCR rules.
2
Additional information regarding Financial Goals is available in the company’s 2014 Investor Day presentation available at www.bnymellon.com/investorrelations.
3 Represents compound annual growth rates (CAGR).
NOTE: Normalizing environment represents market consensus on rates; Flat environment assumes no rate increase from present. Financial projections are reflected on a non-GAAP basis - excludes merger and integration, restructuring and litigation expenses, and other non-recurring items. Additional disclosure regarding non-GAAP measures is available in the Corporation’s reports filed with the SEC, available at www.bnymellon.com/investorrelations. Actual results may vary materially.
This fact sheet may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including our estimated capital ratios, preliminary business metrics and our strategic priorities, technology, streamlining initiatives, capital plans and financial goals. These statements, which may be expressed in a variety of ways, include the use of future or present tense language. These statements and other forward-looking statements contained in other public disclosures of BNY Mellon, are based upon current beliefs and expectations and are subject to significant risks and uncertainties (some of which are beyond BNY Mellon’s control). Factors that could cause BNY Mellon’s results to differ materially from those described in the forward-looking statements can be found in the risk factors set forth in BNY Mellon’s Annual Report on Form 10-K for the year ended Dec. 31, 2014 and its other filings with the Securities and Exchange Commission. All forward-looking statements in this fact sheet speak only as of July 21, 2015 and BNY Mellon undertakes no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events.
Additional information about BNY Mellon is available in our annual report on Form 10-K, proxy statement, quarterly reports on Form 10-Q and our current reports on Form 8-K filed with the SEC, available at www.sec.gov.


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