BNY Mellon Reports First Quarter Earnings Of $880 Million Or $0.83 Per Common Share

- Includes $0.03 per common share tax benefit related to new accounting guidance for stock awards

- Earnings per common share up 14% year-over-year

News provided by

BNY Mellon

Apr 20, 2017, 06:30 ET

NEW YORK, April 20, 2017 /PRNewswire/ --  

TOTAL REVENUE OF $3.84 BILLION, INCREASED 3% YEAR-OVER-YEAR

  • Investment management and performance fees increased 4%
  • Investment services fees increased 4%
  • Net interest revenue increased 3%

CONTINUED FOCUS ON EXPENSE CONTROL

  • Total noninterest expense up less than 1% year-over-year

EXECUTING ON CAPITAL PLAN AND RETURNING VALUE TO COMMON SHAREHOLDERS

  • Returned nearly $1.1 billion to shareholders through share repurchases and dividends
  • Return on common equity of 10%; Adjusted return on tangible common equity of 22% (a)
  • SLR – transitional of 6.1%; SLR – fully phased-in of 5.9% (a)

The Bank of New York Mellon Corporation ("BNY Mellon") (NYSE: BK) today reported first quarter net income applicable to common shareholders of $880 million, or $0.83 per diluted common share.  Net income applicable to common shareholders was $804 million, or $0.73 per diluted common share, in the first quarter of 2016, and $822 million, or $0.77 per diluted common share, in the fourth quarter of 2016.

"We again delivered double-digit earnings per share growth and positive operating leverage on a year-over-year basis, reflecting the strength of our dynamic, well-diversified business model.  Our performance in the quarter benefited from our investments in capabilities that address growing client demands in areas such as collateral optimization for both the buy and sell side and middle-office services for asset managers.  In addition, our overall asset management flows improved to their highest levels since 2014 and assets under custody and/or administration hit a record level," Gerald L. Hassell, chairman and chief executive officer, said.

"We have been delivering high returns on tangible common equity while generating significant levels of capital.  During the first quarter, we returned nearly $1.1 billion to shareholders through share repurchases and dividends and strengthened our key regulatory capital ratios," Mr. Hassell added.

"The progress we are making in digitizing our firm and harnessing emerging technologies should result in an increasingly distinctive client experience, new sources of value for our clients and reduced structural costs for our Company.  We see ourselves as being an investments platform company that integrates the best of what we and others have to offer for the benefit of our clients and the marketplace," Mr. Hassell concluded.

__________________________________________

(a)

These measures are considered to be Non-GAAP.  See "Supplemental information – Explanation of GAAP and Non-GAAP financial measures" beginning on page 22 for the adjusted return on tangible common equity reconciliation.  See "Capital and Liquidity" beginning on page 11 for the reconciliation of the SLR.

FIRST QUARTER 2017 FINANCIAL HIGHLIGHTS (a)
(comparisons are 1Q17 vs. 1Q16, unless otherwise stated)

Earnings

  • Total revenue of $3.8 billion, increased 3% on a GAAP basis and 2% on an adjusted basis (Non-GAAP) (a).
    • Investment services fees increased 4% reflecting higher money market fees, net new business and higher equity market values, offset by the unfavorable impact of a stronger U.S. dollar and the impact of downsizing the retail UK transfer agency business.
    • Investment management and performance fees increased 4% due to higher market values, offset by the unfavorable impact of a stronger U.S. dollar (principally versus the British pound) and the impact of outflows of assets under management in the prior year. On a constant currency basis, investment management and performance fees increased 8% (Non-GAAP) (a).
    • Foreign exchange revenue decreased 10% reflecting lower volatility and the migration to lower margin products.
    • Investment and other income decreased $28 million driven by lower lease-related gains and other income, offset by a net gain related to an equity investment.
    • Net interest revenue increased $26 million driven by higher interest rates and the impact of interest rate hedging activities, offset by lower interest-earning assets and higher interest expense on long-term debt.
  • The provision for credit losses was a credit of $5 million.
  • Noninterest expense of $2.6 billion, increased less than 1% on a GAAP basis and 1% on an adjusted basis (Non-GAAP) (a). The increase reflects higher consulting expenses primarily driven by regulatory and compliance costs, and higher staff expense, partially offset by the favorable impact of a stronger U.S. dollar and lower other expense.
  • Effective tax rate of 22.3% reflecting an approximately 3%, or $0.03 per common share, benefit primarily driven by applying the new accounting guidance included in ASU 2016-09, Stock Compensation, to the annual vesting of stock awards and our stock price appreciating above the awards' original grant price.
  • Preferred stock dividends of $42 million compared with $13 million in 1Q16.

Assets under custody and/or administration ("AUC/A") and Assets under management ("AUM")

  • Record AUC/A of $30.6 trillion increased 5% reflecting higher market values, offset by the unfavorable impact of a stronger U.S. dollar.
    • Estimated new AUC/A wins in Asset Servicing of $109 billion in 1Q17.
  • AUM of $1.73 trillion increased 5% reflecting higher market values, offset by the unfavorable impact of a stronger U.S. dollar (principally versus the British pound). AUM reflects the highest level of asset flows since 2014.
    • Net long-term inflows of $14 billion in 1Q17 reflecting inflows of liability-driven investments and other active strategies, partially offset by outflows of active equity investments.
    • Net short-term inflows of $13 billion in 1Q17 were a result of increased distribution through our liquidity portals.

Capital and liquidity

  • Repurchased 19 million common shares for $879 million and paid $201 million in dividends to common shareholders.
  • Return on common equity of 10%.
  • Adjusted return on tangible common equity of 22% (a).
  • SLR – transitional of 6.1%; SLR – fully phased-in of 5.9% (a).
  • LCR of 115%.

(a)

See "Supplemental information – Explanation of GAAP and Non-GAAP financial measures" beginning on page 22 for the reconciliation of Non-GAAP measures.  In all periods presented, Non-GAAP information excludes the net income (loss) attributable to noncontrolling interests of consolidated investment management funds, amortization of intangible assets and M&I, litigation and restructuring charges.  See "Capital and Liquidity" beginning on page 11 for the reconciliation of the SLR.

Note:  Throughout this document, sequential growth rates are unannualized.

FINANCIAL SUMMARY

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




1Q17 vs.

1Q17

4Q16

3Q16

2Q16

1Q16

4Q16

1Q16

Revenue:






Fee and other revenue

$

3,018

$

2,954

$

3,150

$

2,999

$

2,970

2

%

2

%

Income (loss) from consolidated investment management funds

33

5

17

10

(6)


Net interest revenue

792

831

774

767

766

(5)

3

Total revenue – GAAP

3,843

3,790

3,941

3,776

3,730

1

3

Less:  Net income (loss) attributable to noncontrolling interests related to consolidated investment management funds

18

4

9

4

(7)


Total revenue, as adjusted – Non-GAAP

3,825

3,786

3,932

3,772

3,737

1

2

Provision for credit losses

(5)

7

(19)

(9)

10


Expense:






Noninterest expense – GAAP

2,642

2,631

2,643

2,620

2,629

—

—

Less:  Amortization of intangible assets

52

60

61

59

57


M&I, litigation and restructuring charges

8

7

18

7

17


Total noninterest expense, as adjusted – Non-GAAP

2,582

2,564

2,564

2,554

2,555

1

1

Income:






Income before income taxes

1,206

1,152

1,317

1,165

1,091

5

%

11

%

Provision for income taxes

269

280

324

290

283


Net income

$

937

$

872

$

993

$

875

$

808


Net (income) loss attributable to noncontrolling interests (a)

(15)

(2)

(6)

(2)

9


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

922

870

987

873

817


Preferred stock dividends

(42)

(48)

(13)

(48)

(13)


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

$

880

$

822

$

974

$

825

$

804










Operating leverage (b)




98

bps

254

bps

Adjusted operating leverage – Non-GAAP (b)(c)




33

bps

129

bps








Key Metrics:






Pre-tax operating margin (c)

31

%

30

%

33

%

31

%

29

%

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

33

%

32

%

35

%

33

%

31

%









Return on common equity (annualized) (c)

10.2

%

9.3

%

10.8

%

9.3

%

9.2

%

Adjusted return on common equity (annualized) – Non-GAAP (c)

10.7

%

9.8

%

11.3

%

9.7

%

9.7

%









Return on tangible common equity (annualized) – Non-GAAP (c)(d)

22.2

%

20.4

%

23.5

%

20.4

%

20.6

%

Adjusted return on tangible common equity (annualized) – Non-GAAP (c)(d)

22.4

%

20.5

%

23.6

%

20.5

%

20.8

%









Fee revenue as a percentage of total revenue

78

%

78

%

79

%

79

%

79

%









Percentage of non-U.S. total revenue

34

%

34

%

36

%

34

%

33

%









Average common shares and equivalents outstanding:






Basic

1,041,158

1,050,888

1,062,248

1,072,583

1,079,641


Diluted

1,047,746

1,056,818

1,067,682

1,078,271

1,085,284










Period end:






Full-time employees

52,600

52,000

52,300

52,200

52,100


Book value per common share – GAAP (d)

$

34.23

$

33.67

$

34.19

$

33.72

$

33.34


Tangible book value per common share – Non-GAAP (d)

$

16.65

$

16.19

$

16.67

$

16.25

$

15.87


Cash dividends per common share

$

0.19

$

0.19

$

0.19

$

0.17

$

0.17


Common dividend payout ratio

23

%

25

%

21

%

23

%

23

%

Closing stock price per common share

$

47.23

$

47.38

$

39.88

$

38.85

$

36.83


Market capitalization

$

49,113

$

49,630

$

42,167

$

41,479

$

39,669


Common shares outstanding

1,039,877

1,047,488

1,057,337

1,067,674

1,077,083


(a)

Primarily attributable to noncontrolling interests related to consolidated investment management funds.

(b)

Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninterest expense.  See "Supplemental information – Explanation of GAAP and Non-GAAP financial measures" beginning on page 22 for the components of this measure.

(c)

Non-GAAP information for all periods presented excludes the net income (loss) attributable to noncontrolling interests related to consolidated investment management funds, amortization of intangible assets and M&I, litigation and restructuring charges.  Non-GAAP information for 3Q16 also excludes a recovery of the previously impaired loan to Sentinel Management Group, Inc. ("Sentinel"). See "Supplemental information – Explanation of GAAP and Non-GAAP financial measures" beginning on page 22 for the reconciliation of Non-GAAP measures.

(d)

Tangible book value per common share – Non-GAAP and tangible common equity exclude goodwill and intangible assets, net of deferred tax liabilities.  See "Supplemental information – Explanation of GAAP and Non-GAAP financial measures" beginning on page 22 for the reconciliation of Non-GAAP measures.

bps – basis points.

KEY MARKET METRICS

The following table presents key market metrics at period end and on an average basis.

Key market metrics




1Q17 vs.

1Q17

4Q16

3Q16

2Q16

1Q16

4Q16

1Q16

S&P 500 Index (a)

2363

2239

2168

2099

2060

6

%

15

%

S&P 500 Index – daily average

2326

2185

2162

2075

1951

6

19

FTSE 100 Index (a)

7323

7143

6899

6504

6175

3

19

FTSE 100 Index – daily average

7274

6923

6765

6204

5988

5

21

MSCI EAFE (a)

1793

1684

1702

1608

1652

6

9

MSCI EAFE – daily average

1749

1660

1677

1648

1593

5

10

Barclays Capital Global Aggregate BondSM Index (a)(b)

459

451

486

482

468

2

(2)

NYSE and NASDAQ share volume (in billions)

186

189

186

203

218

(2)

(15)

JPMorgan G7 Volatility Index – daily average (c)

10.10

10.24

10.19

11.12

10.60

(1)

(5)

Average interest on excess reserves paid by the Federal Reserve

0.79

%

0.55

%

0.50

%

0.50

%

0.50

%

24

bps

29

bps

Foreign exchange rates vs. U.S. dollar:






British pound (a)

$

1.25

$

1.23

$

1.30

$

1.34

$

1.44

2

%

(13)

%

British pound – average rate

1.24

1.24

1.31

1.43

1.43

—

(13)

Euro (a)

1.07

1.05

1.12

1.11

1.14

2

(6)

Euro – average rate

1.07

1.08

1.12

1.13

1.10

(1)

(3)




















(a)

Period end.

(b)

Unhedged in U.S. dollar terms.

(c)

The JPMorgan G7 Volatility Index is based on the implied volatility in 3-month currency options.

bps – basis points.

FEE AND OTHER REVENUE

Fee and other revenue




1Q17 vs.

(dollars in millions)

1Q17

4Q16

3Q16

2Q16

1Q16

4Q16

1Q16

Investment services fees:






Asset servicing (a)

$

1,063

$

1,068

$

1,067

$

1,069

$

1,040

—

%

2

%

Clearing services

376

355

349

350

350

6

7

Issuer services

251

211

337

234

244

19

3

Treasury services

139

140

137

139

131

(1)

6

Total investment services fees

1,829

1,774

1,890

1,792

1,765

3

4

Investment management and performance fees

842

848

860

830

812

(1)

4

Foreign exchange and other trading revenue

164

161

183

182

175

2

(6)

Financing-related fees

55

50

58

57

54

10

2

Distribution and servicing

41

41

43

43

39

—

5

Investment and other income

77

70

92

74

105

10

(27)

Total fee revenue

3,008

2,944

3,126

2,978

2,950

2

2

Net securities gains

10

10

24

21

20

N/M

N/M

Total fee and other revenue

$

3,018

$

2,954

$

3,150

$

2,999

$

2,970

2

%

2

%

(a)

Asset servicing fees include securities lending revenue of $49 million in 1Q17, $54 million in 4Q16, $51 million in 3Q16, $52 million in 2Q16 and $50 million in 1Q16. 

N/M – Not meaningful.

KEY POINTS

  • Asset servicing fees increased 2% year-over-year, primarily reflecting net new business, including growth of collateral optimization solutions, and higher equity market values, partially offset by the unfavorable impact of a stronger U.S. dollar and the impact of downsizing the retail UK transfer agency business.
  • Clearing services fees increased 7% year-over-year and 6% sequentially. Both increases were primarily driven by higher money market and mutual fund fees.
  • Issuer services fees increased 3% year-over-year and 19% sequentially. Both increases primarily reflect higher fees in Depositary Receipts, partially offset by lower fees in Corporate Trust.
  • Treasury services fees increased of 6% year-over-year, primarily reflecting higher payment volumes, partially offset by higher compensating balance credits provided to clients, which reduces fee revenue and increases net interest revenue.
  • Investment management and performance fees increased 4% year-over-year primarily reflecting higher market values, partially offset by the unfavorable impact of a stronger U.S. dollar (principally versus the British pound) and the impact of outflows of assets under management in the prior year. On a constant currency basis, investment management and performance fees increased 8% (Non-GAAP) year-over-year. The 1% sequential decrease was primarily driven by seasonally lower performance fees and fewer days in 1Q17, partially offset by higher market values.

•

Foreign exchange and other trading revenue





(in millions)

1Q17

4Q16

3Q16

2Q16

1Q16

Foreign exchange

$

154

$

175

$

175

$

166

$

171

Other trading revenue (loss)

10

(14)

8

16

4

Total foreign exchange and other trading revenue

$

164

$

161

$

183

$

182

$

175

Foreign exchange revenue decreased 10% year-over-year and 12% sequentially.  Both decreases primarily reflect lower volatility.  The year-over-year decrease also reflects the migration to lower margin products.

The sequential increase in other trading revenue primarily reflects the 4Q16 impact of interest rate hedging activities (offset in net interest revenue) and higher fixed income trading revenue.

  • The sequential increase in financing-related fees primarily reflects higher underwriting fees.
  • The year-over-year increase in distribution and servicing fees primarily reflect higher money market fees, partially offset by fees paid to introducing brokers.

•

Investment and other income





(in millions)

1Q17

4Q16

3Q16

2Q16

1Q16

Corporate/bank-owned life insurance

$

30

$

53

$

34

$

31

$

31

Equity investment income (loss)

26

(2)

(1)

(4)

(3)

Expense reimbursements from joint venture

14

15

18

17

17

Seed capital gains (a)

9

6

16

11

11

Asset-related gains

3

1

8

1

—

Lease-related gains (loss)

1

(6)

—

—

44

Other (loss) income

(6)

3

17

18

5

Total investment and other income

$

77

$

70

$

92

$

74

$

105

(a)

Excludes the gain (loss) on seed capital investments in consolidated investment management funds which are reflected in operations of consolidated investment management funds, net of noncontrolling interests.  The gain on seed capital investments in consolidated investment management funds was $15 million in 1Q17, $1 million in 4Q16, $8 million in 3Q16, $6 million in 2Q16 and $1 million in 1Q16.

Both the year-over-year and sequential changes in investment and other income primary reflect the net gain related to an equity investment and decreases in other income due to our increased investments in renewable energy.  The year-over-year decrease also reflects lower lease-related gains.  The sequential increase was partially offset by lower income from corporate/bank-owned life insurance.

NET INTEREST REVENUE

Net interest revenue




1Q17 vs.

(dollars in millions)

1Q17

4Q16

3Q16

2Q16

1Q16

4Q16

1Q16

Net interest revenue – GAAP

$

792

$

831

$

774

$

767

$

766

(5)

%

3

%

Tax equivalent adjustment

12

12

12

13

14

N/M

N/M

Net interest revenue (FTE) – Non-GAAP (a)

$

804

$

843

$

786

$

780

$

780

(5)

%

3

%








Net interest margin – GAAP

1.13

%

1.16

%

1.05

%

0.97

%

0.99

%

(3)

bps

14

bps

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

1.14

%

1.17

%

1.06

%

0.98

%

1.01

%

(3)

bps

13

bps








Selected average balances:






Cash/interbank investments

$

106,069

$

104,352

$

114,544

$

137,995

$

127,624

2

%

(17)

%

Trading account securities

2,254

2,288

2,176

2,152

3,320

(1)

(32)

Securities

114,786

117,660

118,405

118,002

118,538

(2)

(3)

Loans

60,312

63,647

61,578

60,284

61,196

(5)

(1)

Interest-earning assets

283,421

287,947

296,703

318,433

310,678

(2)

(9)

Interest-bearing deposits

139,820

145,681

155,109

165,122

162,017

(4)

(14)

Noninterest-bearing deposits

73,555

82,267

81,619

84,033

82,944

(11)

(11)

Long-term debt

25,882

24,986

23,930

22,838

21,556

4

20








Selected average yields/rates: (b)






Cash/interbank investments

0.56

%

0.47

%

0.43

%

0.44

%

0.43

%

Trading account securities

3.12

3.17

2.62

2.45

2.16


Securities

1.71

1.67

1.56

1.56

1.61


Loans

2.15

1.92

1.84

1.85

1.76


Interest-earning assets

1.38

1.30

1.19

1.14

1.16


Interest-bearing deposits

0.03

(0.01)

(0.02)

0.03

0.04


Long-term debt

1.85

1.36

1.54

1.54

1.57










Average cash/interbank investments as a percentage of average interest-earning assets

37

%

36

%

39

%

43

%

41

%

Average noninterest-bearing deposits as a percentage of average interest-earning assets

26

%

29

%

28

%

26

%

27

%

(a)

Net interest revenue (FTE) – Non-GAAP and net interest margin (FTE) – Non-GAAP include the tax equivalent adjustments on tax-exempt income which allows for comparisons 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.

(b)

Yields/rates include the impact of interest rate hedging activities.

FTE – fully taxable equivalent.

N/M – Not meaningful.

bps – basis points.

KEY POINTS

  • Net interest revenue increased $26 million year-over-year and decreased $39 million sequentially. The year-over-year increase primarily reflects higher interest rates and the impact of interest rate hedging activities (which negatively impacted 1Q17 less than 1Q16), partially offset by lower average interest-earning assets and higher average long-term debt. The sequential decrease primarily reflects the impact of interest rate hedging activities and the 4Q16 premium amortization adjustment which combined reduced net interest revenue by approximately $43 million, or 6 basis points to the net interest margin. Substantially all of the impact of interest rate hedging activities in 4Q16 was offset in foreign exchange and other trading revenue.

NONINTEREST EXPENSE

Noninterest expense




1Q17 vs.

(dollars in millions)

1Q17

4Q16

3Q16

2Q16

1Q16

4Q16

1Q16

Staff

$

1,472

$

1,395

$

1,467

$

1,412

$

1,459

6

%

1

%

Professional, legal and other purchased services

312

325

292

290

278

(4)

12

Software and equipment

223

237

215

223

219

(6)

2

Net occupancy

136

153

143

152

142

(11)

(4)

Distribution and servicing

100

98

105

102

100

2

—

Sub-custodian

64

57

59

70

59

12

8

Bank assessment charges (a)

57

53

61

52

53

8

8

Business development

51

71

52

65

57

(28)

(11)

Other (a)

167

175

170

188

188

(5)

(11)

Amortization of intangible assets

52

60

61

59

57

(13)

(9)

M&I, litigation and restructuring charges

8

7

18

7

17

N/M

N/M

Total noninterest expense – GAAP

$

2,642

$

2,631

$

2,643

$

2,620

$

2,629

—

%

—

%








Total staff expense as a percentage of total revenue

38

%

37

%

37

%

37

%

39

%









Memo:






Total noninterest expense excluding amortization of intangible assets and M&I, litigation and restructuring charges – Non-GAAP

$

2,582

$

2,564

$

2,564

$

2,554

$

2,555

1

%

1

%

(a)

In the first quarter of 2017, we began disclosing bank assessment charges on a quarterly basis.  The bank assessment charges were previously included in other expense.

N/M – Not meaningful.

KEY POINTS

  • Total noninterest expense increased less than 1% year-over-year and sequentially. Total noninterest expense, excluding amortization of intangible assets and M&I, litigation and restructuring charges (Non-GAAP), increased 1% year-over-year and sequentially.
  • The year-over-year increase primarily reflects higher consulting and staff expenses, partially offset by lower other expense. The increase in consulting expense primarily reflects higher regulatory and compliance costs. The increase in staff expense primarily reflects higher incentive expense, partially offset by the favorable impact of a stronger U.S. dollar. We continue to benefit from the savings generated by the business improvement process, including improved efficiencies by changing the way we work, continued impact from location strategy and vendor renegotiations, and optimizing our physical footprint.
  • The sequential increase primarily reflects higher staff expense, partially offset by lower business development, net occupancy, software and equipment and professional, legal and other purchased services expenses. The increase in staff expense was primarily driven by higher incentives due to the impact of vesting of long-term stock awards for retirement eligible employees, partially offset by lower severance expense.

INVESTMENT SECURITIES PORTFOLIO

At March 31, 2017, the fair value of our investment securities portfolio totaled $115.5 billion.  The net unrealized pre-tax loss on our total securities portfolio was $23 million at March 31, 2017 compared with $221 million at Dec. 31, 2016.  The improvement in the net unrealized pre-tax loss was primarily driven by a decrease in market interest rates.  At March 31, 2017, the fair value of the held-to-maturity securities totaled $40.1 billion and represented 35% of the fair value of the total investment securities portfolio.

The following table shows the distribution of our investment securities portfolio.

Investment securities
  portfolio

 

(dollars in millions)

Dec. 31,
2016

1Q17

change in

unrealized

gain (loss)

March 31, 2017

Fair value

as a % of amortized

cost (a)

Unrealized

gain (loss)

Ratings




BB+

and

lower

 Fair
value

Amortized

cost

Fair
value


AAA/

AA-

A+/

A-

BBB+/

BBB-

Not

rated

Agency RMBS

$

47,715

$

71

$

48,044

$

47,680

99

%

$

(364)

100

%

—

%

—

%

—

%

—

%

U.S. Treasury

25,244

107

26,288

26,149

99

(139)

100

—

—

—

—

Sovereign debt/sovereign guaranteed

14,373

(55)

13,809

13,968

101

159

74

5

21

—

—

Non-agency RMBS (b)

1,357

5

1,016

1,298

81

282

—

1

2

87

10

Non-agency RMBS

718

2

648

670

95

22

8

4

14

73

1

European floating rate notes

706

3

647

639

98

(8)

67

24

9

—

—

Commercial MBS

8,037

26

8,839

8,796

100

(43)

98

2

—

—

—

State and political subdivisions

3,396

25

3,312

3,322

100

10

80

17

—

—

3

Foreign covered bonds

2,216

1

2,127

2,144

101

17

100

—

—

—

—

Corporate bonds

1,396

—

1,361

1,366

100

5

18

68

14

—

—

CLOs

2,598

3

2,561

2,569

100

8

100

—

—

—

—

U.S. Government agencies

1,964

5

1,971

1,985

101

14

100

—

—

—

—

Consumer ABS

1,727

4

1,454

1,456

100

2

90

3

6

1

—

Other (c)

2,833

1

3,458

3,470

100

12

77

—

20

—

3

Total investment securities

$

114,280

(d)

$

198

$

115,535

$

115,512

(d)

99

%

$

(23)

(d)(e)

92

%

2

%

4

%

2

%

—

%

(a)

Amortized cost before impairments.

(b)

These RMBS were included in the former Grantor Trust and were marked-to-market in 2009.  We believe these RMBS would receive higher credit ratings if these ratings incorporated, as additional credit enhancements, the difference between the written-down amortized cost and the current face amount of each of these securities.

(c)

Includes commercial paper with a fair value of $401 million and $701 million and money market funds with a fair value of $842 million and $853 million at Dec. 31, 2016 and March 31, 2017, respectively.

(d)

Includes net unrealized losses on derivatives hedging securities available-for-sale of $211 million at Dec. 31, 2016 and $134 million at March 31, 2017.

(e)

Unrealized gains of $165 million at March 31, 2017 related to available-for-sale securities, net of hedges.

NONPERFORMING ASSETS

Nonperforming assets

(dollars in millions)

March 31,
2017

Dec. 31,
2016

March 31,
2016

Nonperforming loans:


Other residential mortgages

$

88

$

91

$

99

Wealth management loans and mortgages

10

8

11

Financial institutions

—

—

171

Lease financing

—

4

—

Commercial

—

—

5

Commercial real estate

—

—

2

Total nonperforming loans

98

103

288

Other assets owned

9

4

4

Total nonperforming assets

$

107

$

107

$

292

Nonperforming assets ratio

0.18

%

0.17

%

0.48

%

Allowance for loan losses/nonperforming loans

167.3

164.1

56.3

Total allowance for credit losses/nonperforming loans

281.6

272.8

99.7

Nonperforming assets were unchanged compared with Dec. 31, 2016, and decreased $185 million compared with March 31, 2016.  The decrease primarily reflects the receipt of trust assets from the bankruptcy proceeding of Sentinel in the third quarter of 2016.

ALLOWANCE FOR CREDIT LOSSES, PROVISION AND NET CHARGE-OFFS

Allowance for credit losses, provision and net charge-offs

(in millions)

March 31,
2017

Dec. 31,
2016

March 31,
2016

Allowance for credit losses - beginning of period

$

281

$

274

$

275

Provision for credit losses

(5)

7

10

Net recoveries (charge-offs):


Other residential mortgages

—

—

2

Net recoveries (charge-offs)

—

—

2

Allowance for credit losses - end of period

$

276

$

281

$

287

Allowance for loan losses

$

164

$

169

$

162

Allowance for lending-related commitments

112

112

125

CAPITAL AND LIQUIDITY

The common equity Tier 1 ("CET1"), Tier 1 and Total risk-based regulatory capital ratios in the first section of the table below are based on Basel III components of capital, as phased-in (referred to as "Transitional ratios").  The transitional capital ratios for March 31, 2017 were negatively impacted by the additional phase-in requirements for 2017.  Our consolidated capital ratios are shown in the following table.

Capital ratios

March 31,
2017

Dec. 31,
2016

Consolidated regulatory capital ratios: (a)

Standardized Approach:

 CET1 ratio

12.0

%

12.3

%

 Tier 1 capital ratio

14.4

14.5

 Total (Tier 1 plus Tier 2) capital ratio

15.0

15.2

Advanced Approach:

 CET1 ratio

10.4

10.6

 Tier 1 capital ratio

12.5

12.6

 Total (Tier 1 plus Tier 2) capital ratio

12.8

13.0

Leverage capital ratio (b)

6.6

6.6

Supplementary leverage ratio ("SLR")

6.1

6.0

BNY Mellon shareholders' equity to total assets ratio

11.6

11.6

BNY Mellon common shareholders' equity to total assets ratio

10.5

10.6



Selected regulatory capital ratios – fully phased-in – Non-GAAP: (a)(c)

CET1 ratio:

Standardized Approach

11.5

%

11.3

%

Advanced Approach

10.0

9.7

SLR

5.9

5.6

(a)

Regulatory capital ratios for March 31, 2017 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.

(b)

The leverage capital ratio is based on Tier 1 capital, as phased-in and quarterly average total assets.

(c)

Estimated.

CET1 generation in 1Q17 – preliminary

Transitional

basis (b)

Fully

phased-in –

Non-GAAP (c)


(in millions)

CET1 – Beginning of period

$

18,093

$

16,490

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

880

880

Goodwill and intangible assets, net of related deferred tax liabilities

(482)

26

Gross CET1 generated

398

906

Capital deployed:


Dividends

(201)

(201)

Common stock repurchased

(879)

(879)

 Total capital deployed

(1,080)

(1,080)

Other comprehensive income

(43)

241

Additional paid-in capital (a)

286

286

Other

(48)

(8)

Total other deductions

195

519

Net CET1 generated

(487)

345

CET1 – End of period

$

17,606

$

16,835

(a)

Primarily related to stock awards, the exercise of stock options and stock issued for employee benefit plans.

(b)

Reflects transitional adjustments to CET1 required under the U.S. capital rules.

(c)

Estimated.

The table presented below compares the fully phased-in Basel III capital components and risk-based ratios to those capital components and ratios determined on a transitional basis.

Basel III capital components and ratios

March 31, 2017 (a)

Dec. 31, 2016

(dollars in millions)

Transitional basis (b)

Fully phased-in –  Non-GAAP (c)

Transitional
basis (b)

Fully phased-in –Non-GAAP (c)

CET1:




Common shareholders' equity

$

35,837

$

35,596

$

35,794

$

35,269

Goodwill and intangible assets

(17,796)

(18,286)

(17,314)

(18,312)

Net pension fund assets

(72)

(90)

(55)

(90)

Equity method investments

(326)

(341)

(313)

(344)

Deferred tax assets

(27)

(34)

(19)

(32)

Other

(10)

(10)

—

(1)

 Total CET1

17,606

16,835

18,093

16,490

Other Tier 1 capital:




Preferred stock

3,542

3,542

3,542

3,542

Trust preferred securities

—

—

—

—

Deferred tax assets

(7)

—

(13)

—

Net pension fund assets

(18)

—

(36)

—

Other

(14)

(14)

(121)

(121)

 Total Tier 1 capital

21,109

20,363

21,465

19,911






Tier 2 capital:




Trust preferred securities

—

—

148

—

Subordinated debt

550

550

550

550

Allowance for credit losses

276

276

281

281

Other

(2)

(2)

(12)

(11)

 Total Tier 2 capital - Standardized Approach

824

824

967

820

Excess of expected credit losses

49

49

50

50

Less: Allowance for credit losses

276

276

281

281

 Total Tier 2 capital - Advanced Approach

$

597

$

597

$

736

$

589






Total capital:




Standardized Approach

$

21,933

$

21,187

$

22,432

$

20,731

Advanced Approach

$

21,706

$

20,960

$

22,201

$

20,500






Risk-weighted assets:




Standardized Approach

$

146,549

$

145,924

$

147,671

$

146,475

Advanced Approach

$

169,476

$

168,815

$

170,495

$

169,227






Standardized Approach:




CET1 ratio

12.0

%

11.5

%

12.3

%

11.3

%

Tier 1 capital ratio

14.4

14.0

14.5

13.6

Total (Tier 1 plus Tier 2) capital ratio

15.0

14.5

15.2

14.2

Advanced Approach:




CET1 ratio

10.4

%

10.0

%

10.6

%

9.7

%

Tier 1 capital ratio

12.5

12.1

12.6

11.8

Total (Tier 1 plus Tier 2) capital ratio

12.8

12.4

13.0

12.1

(a)

Preliminary.

(b)

Reflects transitional adjustments to CET1, Tier 1 capital and Tier 2 capital required under the U.S. capital rules.

(c)

Estimated.

BNY Mellon has presented its estimated fully phased-in CET1 and other risk-based capital ratios and the fully phased-in SLR based on its interpretation of the U.S. capital rules, which are being gradually phased-in over a multi-year period, and on the application of such rules to BNY Mellon's businesses as currently conducted.  Management views the estimated fully phased-in CET1 and other risk-based capital ratios and fully phased-in SLR as key measures in monitoring BNY Mellon's capital position and progress against future regulatory capital standards.  Additionally, the presentation of the estimated fully phased-in CET1 and other risk-based capital ratios and fully phased-in SLR are intended to allow investors to compare these ratios with estimates presented by other companies.

Our capital and liquidity ratios are necessarily subject to, among other things, BNY Mellon's further review of applicable rules, anticipated compliance with all necessary enhancements to model calibration, approval by regulators of certain models used as part of RWA calculations, other refinements, further implementation guidance from regulators, market practices and standards and any changes BNY Mellon may make to its businesses.  Consequently, our capital and liquidity ratios remain subject to ongoing review and revision and may change based on these factors.

Supplementary Leverage Ratio ("SLR")

The following table presents the SLR on both the transitional and fully phased-in Basel III basis for BNY Mellon and our largest bank subsidiary, The Bank of New York Mellon.

SLR

March 31, 2017 (a)

Dec. 31, 2016

(dollars in millions)

Transitional basis

Fully phased-in – Non-GAAP (b)

Transitional
basis

Fully phased-in – Non-GAAP (b)

Consolidated:




Tier 1 capital

$

21,109

$

20,363

$

21,465

$

19,911






Total leverage exposure:




Quarterly average total assets

$

336,200

$

336,200

$

344,142

$

344,142

Less: Amounts deducted from Tier 1 capital

18,016

18,763

17,333

18,887

Total on-balance sheet assets

318,184

317,437

326,809

325,255

Off-balance sheet exposures:




Potential future exposure for derivatives contracts (plus certain other items)

5,912

5,912

6,021

6,021

Repo-style transaction exposures

536

536

533

533

Credit-equivalent amount of other off-balance sheet exposures (less SLR exclusions)

22,901

22,901

23,274

23,274

Total off-balance sheet exposures

29,349

29,349

29,828

29,828

Total leverage exposure

$

347,533

$

346,786

$

356,637

$

355,083






SLR - Consolidated (c)

6.1

%

5.9

%

6.0

%

5.6

%






The Bank of New York Mellon, our largest bank subsidiary:




Tier 1 capital

$

19,321

$

18,523

$

19,011

$

17,708

Total leverage exposure

$

281,360

$

280,723

$

291,022

$

290,230






SLR - The Bank of New York Mellon (c)

6.9

%

6.6

%

6.5

%

6.1

%

(a)

March 31, 2017 information is preliminary.

(b)

Estimated.

(c)

The estimated fully phased-in SLR (Non-GAAP) is based on our interpretation of the U.S. capital rules.  When the SLR is fully phased-in in 2018 as a required minimum ratio, we expect to maintain an SLR of over 5%.  The minimum required SLR is 3% and there is a 2% buffer, in addition to the minimum, that is applicable to U.S. G-SIBs.  The insured depository institution subsidiaries of the U.S. G-SIBs, including those of BNY Mellon, must maintain a 6% SLR to be considered "well capitalized."


Liquidity Coverage Ratio ("LCR")

The U.S. LCR rules became fully phased-in on Jan. 1, 2017 and require BNY Mellon to meet an LCR of 100%.  On a consolidated basis, our LCR was 115% and HQLA before haircuts and trapped liquidity totaled $164 billion at March 31, 2017, compared with our LCR of 114% and HQLA before haircuts and trapped liquidity of $156 billion at Dec. 31, 2016.

INVESTMENT MANAGEMENT provides investment management services to institutional and retail investors, as well as investment management, wealth and estate planning and private banking solutions to high net worth individuals and families, and foundations and endowments.

(dollars in millions, unless otherwise noted)





1Q17 vs.

1Q17

4Q16

3Q16

2Q16

1Q16

4Q16

1Q16

Revenue:







Investment management fees:







 Mutual funds

$

299

$

297

$

309

$

304

$

300

1

%

—

%

 Institutional clients

348

340

362

344

334

2

4

 Wealth management

167

164

166

160

152

2

10

Investment management fees (a)

814

801

837

808

786

2

4

Performance fees

12

32

8

9

11

N/M

9

Investment management and performance fees

826

833

845

817

797

(1)

4

Distribution and servicing

52

48

49

49

46

8

13

Other (a)

(1)

(1)

(18)

(10)

(31)

N/M

N/M

Total fee and other revenue (a)

877

880

876

856

812

—

8

Net interest revenue

86

80

82

82

83

8

4

Total revenue

963

960

958

938

895

—

8

Provision for credit losses

3

6

—

1

(1)

N/M

N/M

Noninterest expense (ex. amortization of intangible assets)

668

672

680

684

660

(1)

1

Amortization of intangible assets

15

22

22

19

19

(32)

(21)

Total noninterest expense

683

694

702

703

679

(2)

1

Income before taxes

$

277

$

260

$

256

$

234

$

217

7

%

28

%

Income before taxes (ex. amortization of intangible assets) – Non-GAAP

$

292

$

282

$

278

$

253

$

236

4

%

24

%

Pre-tax operating margin

29

%

27

%

27

%

25

%

24

%

Adjusted pre-tax operating margin – Non-GAAP (b)

34

%

33

%

33

%

30

%

30

%










Changes in AUM (in billions): (c)(d)







Beginning balance of AUM

$

1,648

$

1,715

$

1,664

$

1,639

$

1,625


Net inflows (outflows):







Long-term strategies:







 Equity

(4)

(5)

(6)

(2)

(2)


 Fixed income

2

(1)

(1)

(3)

—


 Liability-driven investments (e)

14

(7)

4

15

14


 Multi-asset and alternative investments

2

3

7

2

—


Total long-term active strategies inflows (outflows)

14

(10)

4

12

12


Index

—

(1)

(3)

(17)

(11)


Total long-term strategies inflows (outflows)

14

(11)

1

(5)

1


Short term strategies:







 Cash

13

(3)

(1)

4

(9)


Total net inflows (outflows)

27

(14)

—

(1)

(8)


Net market impact/other

41

(11)

80

71

41


Net currency impact

11

(42)

(29)

(47)

(19)


Acquisition

—

—

—

2

—


Ending balance of AUM

$

1,727

(f)

$

1,648

$

1,715

$

1,664

$

1,639

5

%

5

%









AUM at period end, by product type: (c)(d)







Equity

9

%

9

%

9

%

9

%

9

%

Fixed income

11

11

11

12

12


Index

19

19

18

18

19


Liability-driven investments (e)

34

34

35

34

33


Multi-asset and alternative investments

11

11

11

11

11


Cash

16

16

16

16

16


Total AUM

100

%

(f)

100

%

100

%

100

%

100

%










Average balances:







Average loans

$

16,153

$

15,673

$

15,308

$

14,795

$

14,275

3

%

13

%

Average deposits

$

15,781

$

15,511

$

15,600

$

15,518

$

15,971

2

%

(1)

%

(a)

Total fee and other revenue includes the impact of the consolidated investment management funds, net of noncontrolling interests.  See page 25 for a breakdown of the revenue line items in the Investment Management business impacted by the consolidated investment management funds.  Additionally, other revenue includes asset servicing, treasury services, foreign exchange and other trading revenue and investment and other income.

(b)

Excludes amortization of intangible assets, provision for credit losses and distribution and servicing expense.  See "Supplemental information – Explanation of GAAP and Non-GAAP financial measures" beginning on page 22 for the reconciliation of this Non-GAAP measure.

(c)

Excludes securities lending cash management assets and assets managed in the Investment Services business.

(d)

In the first quarter of 2017, the AUM in our Wealth Management business and our multi-asset strategies has been reclassified to multi-asset and alternative investments.  This reclassification does not change total AUM.  All prior periods have been restated.

(e)

Includes currency overlay assets under management.

(f)

Preliminary.

N/M – Not meaningful.

INVESTMENT MANAGEMENT KEY POINTS

  • Income before taxes totaled $277 million in 1Q17, an increase of 28% year-over-year and 7% sequentially. Income before taxes, excluding amortization of intangible assets (Non-GAAP), totaled $292 million in 1Q17, an increase of 24% year-over-year and 4% sequentially.
    • Pre-tax operating margin of 29% in 1Q17 increased 446 bps year-over-year and 165 bps sequentially.
    • Adjusted pre-tax operating margin (Non-GAAP) of 34% in 1Q17 increased 462 bps year-over-year and 80 bps sequentially.
  • Total revenue was $963 million, an increase of 8% year-over-year and a slight increase sequentially.
    • 40% non-U.S. revenue in both 1Q17 and 1Q16.
  • Investment management fees increased 4% year-over-year, primarily reflecting higher market values, partially offset by the unfavorable impact of a stronger U.S. dollar (principally versus the British pound) and the impact of outflows of assets under management in the prior year. On a constant currency basis, investment management fees increased 7% (Non-GAAP) year-over-year. The 2% sequential increase was primarily driven by higher market values, partially offset by fewer days in 1Q17.
    • Net long-term inflows of $14 billion in 1Q17 reflect inflows of liability-driven investments and other active strategies, partially offset by outflows of active equity investments.
    • Net short-term inflows of $13 billion in 1Q17 were a result of increased distribution through our liquidity portals.
  • The sequential decrease in performance fees was driven by seasonality.
  • Other revenue improvement year-over-year reflects higher seed capital gains and losses on hedging activity recorded in 1Q16, partially offset by payments to Investment Services related to higher money market fees.
  • Net interest revenue increased 4% year-over-year and 8% sequentially, primarily reflecting higher rates on deposits.
    • Average loans increased 13% year-over-year and 3% sequentially. Record average loans were driven by extending banking solutions to high net worth clients.
    • Average deposits decreased 1% year-over-year and increased 2% sequentially.
  • Total noninterest expense (excluding amortization of intangible assets) increased 1% year-over-year and decreased 1% sequentially. The year-over-year increase was primarily driven by higher incentive expense, partially offset by the favorable impact of a stronger U.S. dollar (principally versus the British pound). The sequential decrease primarily reflects lower business development expense.

INVESTMENT SERVICES provides business and technology solutions to financial institutions, corporations, public funds and government agencies, including: asset servicing (custody, foreign exchange, fund services, broker-dealer services, securities finance, collateral and liquidity services), clearing services, issuer services (depositary receipts and corporate trust) and treasury services (global payments, trade finance and cash management).

(dollars in millions, unless otherwise noted)





1Q17 vs.

1Q17

4Q16

3Q16

2Q16

1Q16

4Q16

1Q16

Revenue:







Investment services fees:







 Asset servicing

$

1,038

$

1,043

$

1,039

$

1,043

$

1,016

—

%

2

%

 Clearing services

375

354

347

350

348

6

8

 Issuer services

250

211

336

233

244

18

2

 Treasury services

139

139

136

137

129

—

8

 Total investment services fees

1,802

1,747

1,858

1,763

1,737

3

4

Foreign exchange and other trading revenue

153

157

177

161

168

(3)

(9)

Other (a)

129

128

148

130

125

1

3

 Total fee and other revenue

2,084

2,032

2,183

2,054

2,030

3

3

Net interest revenue

707

713

715

690

679

(1)

4

 Total revenue

2,791

2,745

2,898

2,744

2,709

2

3

Provision for credit losses

—

—

1

(7)

14

N/M

N/M

Noninterest expense (ex. amortization of intangible assets)

1,812

1,786

1,812

1,819

1,770

1

2

Amortization of intangible assets

37

38

39

40

38

(3)

(3)

Total noninterest expense

1,849

1,824

1,851

1,859

1,808

1

2

Income before taxes

$

942

$

921

$

1,046

$

892

$

887

2

%

6

%

Income before taxes (ex. amortization of intangible assets) – Non-GAAP

$

979

$

959

$

1,085

$

932

$

925

2

%

6

%









Pre-tax operating margin

34

%

34

%

36

%

33

%

33

%

Adjusted pre-tax operating margin (ex. provision for credit losses and amortization of intangible assets) – Non-GAAP

35

%

35

%

37

%

34

%

35

%










Investment services fees as a percentage of noninterest expense (ex. amortization of intangible assets)

99

%

98

%

103

%

97

%

98

%










Securities lending revenue

$

40

$

44

$

42

$

42

$

42

(9)

%

(5)

%









Metrics:







Average loans

$

42,818

$

45,832

$

44,329

$

43,786

$

45,004

(7)

%

(5)

%

Average deposits

$

197,690

$

213,531

$

220,316

$

221,998

$

215,707

(7)

%

(8)

%









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

$

30.6

(c)

$

29.9

$

30.5

$

29.5

$

29.1

2

%

5

%

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

$

314

$

296

$

288

$

278

$

300

6

%

5

%









Asset servicing:







Estimated new business wins (AUC/A) (in billions)

$

109

(c)

$

141

$

150

$

167

$

40











Depositary Receipts:







Number of sponsored programs

1,050

1,062

1,094

1,112

1,131

(1)

%

(7)

%









Clearing services:







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

6,058

5,960

5,942

5,946

5,947

2

%

2

%

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

$

460,977

$

438,460

$

443,112

$

431,150

$

415,025

5

%

11

%

Average investor margin loans (U.S. platform)

$

10,740

$

10,562

$

10,834

$

10,633

$

11,063

2

%

(3)

%









Broker-Dealer:







Average tri-party repo balances (in billions)

$

2,373

$

2,307

$

2,212

$

2,108

$

2,104

3

%

13

%

(a)

Other revenue includes investment management fees, financing-related fees, distribution and servicing revenue and investment and other income.

(b)

Includes the AUC/A of CIBC Mellon Global Securities Services Company ("CIBC Mellon"), a joint venture with the Canadian Imperial Bank of Commerce, of $1.2 trillion at March 31, 2017, Dec. 31, 2016 and Sept. 30, 2016 and $1.1 trillion at June 30, 2016 and March 31, 2016.

(c)

Preliminary.

(d)

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 $65 billion at March 31, 2017, $63 billion at Dec. 31, 2016, $64 billion at Sept. 30, 2016 and $56 billion at June 30, 2016 and March 31, 2016.

N/M – Not meaningful.

INVESTMENT SERVICES KEY POINTS

  • Income before taxes totaled $942 million in 1Q17. Income before taxes, excluding amortization of intangible assets (Non-GAAP), totaled $979 million in 1Q17.
    • The pre-tax operating margin was 34% in 1Q17. The pre-tax operating margin, excluding the provision for credit losses and amortization of intangible assets (Non-GAAP), was 35% in 1Q17 and the investment services fees as a percentage of noninterest expense (excluding amortization of intangible assets) was 99% in 1Q17.
  • Investment services fees increased 4% year-over-year and 3% sequentially.
    • Asset servicing fees increased 2% year-over-year primarily reflecting net new business, including growth of collateral optimization solutions, and higher equity market values, partially offset by the unfavorable impact of a stronger U.S. dollar and the impact of downsizing the retail UK transfer agency business.
    • Clearing services fees increased 8% year-over-year and 6% sequentially, primarily driven by higher money market and mutual fund fees.
    • Issuer services fees increased 2% year-over-year and 18% sequentially, primarily reflecting higher fees in Depositary Receipts, partially offset by lower fees in Corporate Trust.
    • Treasury services fees increased 8% year-over-year primarily reflecting higher payment volumes, partially offset by higher compensating balance credits provided to clients, which reduces fee revenue and increases net interest revenue.
  • Foreign exchange and other trading revenue decreased 9% year-over-year and 3% sequentially, primarily reflecting lower volatility. The year-over-year decrease also reflects the migration to lower margin products.
  • Other revenue increased 3% year-over-year primarily reflecting higher payments from Investment Management related to higher money market fees, and higher financing-related fees, partially offset by certain fees paid to introducing brokers.
  • Net interest revenue increased 4% year-over-year primarily reflecting the impact of the higher interest rates, offset by lower deposits. The 1% sequential decrease primarily reflects lower deposits and loans as well as fewer days in 1Q17, partially offset by higher short-term rates.
  • Noninterest expense (excluding amortization of intangible assets) increased 2% year-over-year primarily reflecting higher expense from regulatory and compliance costs, additional technology investments and higher staff expenses, offset by lower litigation expense and the favorable impact of a stronger U.S. dollar. The 1% sequential increase primarily reflects higher incentive expense, partially offset by lower severance and other general expenses.

OTHER SEGMENT primarily includes leasing operations, certain corporate treasury activities, derivatives, global markets, business exits and other corporate revenue and expense items.




(in millions)

1Q17

4Q16

3Q16

2Q16

1Q16

Revenue:




Fee and other revenue

$

72

$

42

$

100

$

95

$

129

Net interest (expense) revenue

(1)

38

(23)

(5)

4

Total revenue

71

80

77

90

133

Provision for credit losses

(8)

1

(20)

(3)

(3)

Noninterest expense (ex. M&I and restructuring charges (recoveries))

106

108

88

53

141

M&I and restructuring charges (recoveries)

1

2

—

3

(1)

Total noninterest expense

107

110

88

56

140

(Loss) income before taxes

$

(28)

$

(31)

$

9

$

37

$

(4)

(Loss) income before taxes (ex. M&I and restructuring charges (recoveries)) – Non-GAAP

$

(27)

$

(29)

$

9

$

40

$

(5)






Average loans and leases

$

1,341

$

2,142

$

1,941

$

1,703

$

1,917

KEY POINTS

  • Total fee and other revenue decreased $57 million compared with 1Q16 and increased $30 million compared with 4Q16. Both comparisons primarily reflect the net gain related to an equity investment, the impact of interest rate hedging activities and lower other income due to increased investments in renewable energy. The year-over-year decrease also reflects lower lease-related gains. The sequential increase was partially offset by lower income from corporate/bank-owned life insurance.
  • Net interest revenue decreased $5 million compared with 1Q16 and $39 million compared with 4Q16. The year-over-year decrease was driven by the impact of interest rate hedging activities. The sequential decrease primarily reflects the impact of interest rate hedging activities and the 4Q16 premium amortization adjustment which combined reduced net interest revenue by approximately $43 million.
  • Noninterest expense (excluding M&I and restructuring charges (recoveries)) decreased $35 million compared with 1Q16 and $2 million compared with 4Q16. The year-over-year decrease primarily reflects lower incentive expense.

THE BANK OF NEW YORK MELLON CORPORATION

Condensed Consolidated Income Statement

(in millions)

Quarter ended

March 31,
2017

Dec. 31,
2016

March 31,
2016

Fee and other revenue



Investment services fees:



Asset servicing

$

1,063

$

1,068

$

1,040

Clearing services

376

355

350

Issuer services

251

211

244

Treasury services

139

140

131

Total investment services fees

1,829

1,774

1,765

Investment management and performance fees

842

848

812

Foreign exchange and other trading revenue

164

161

175

Financing-related fees

55

50

54

Distribution and servicing

41

41

39

Investment and other income

77

70

105

Total fee revenue

3,008

2,944

2,950

Net securities gains

10

10

20

Total fee and other revenue

3,018

2,954

2,970

Operations of consolidated investment management funds



Investment income (loss)

37

8

(3)

Interest of investment management fund note holders

4

3

3

Income (loss) from consolidated investment management funds

33

5

(6)

Net interest revenue



Interest revenue

960

928

883

Interest expense

168

97

117

Net interest revenue

792

831

766

Total revenue

3,843

3,790

3,730

Provision for credit losses

(5)

7

10

Noninterest expense



Staff

1,472

1,395

1,459

Professional, legal and other purchased services

312

325

278

Software and equipment

223

237

219

Net occupancy

136

153

142

Distribution and servicing

100

98

100

Sub-custodian

64

57

59

Bank assessment charges (a)

57

53

53

Business development

51

71

57

Other (a)

167

175

188

Amortization of intangible assets

52

60

57

M&I, litigation and restructuring charges

8

7

17

Total noninterest expense

2,642

2,631

2,629

Income



Income before income taxes

1,206

1,152

1,091

Provision for income taxes

269

280

283

Net income

937

872

808

Net (income) loss attributable to noncontrolling interests (includes $(18), $(4) and $7 related to consolidated investment management funds, respectively)

(15)

(2)

9

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

922

870

817

Preferred stock dividends

(42)

(48)

(13)

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

$

880

$

822

$

804

(a)

In the first quarter of 2017, we began disclosing bank assessment charges on a quarterly basis.  The bank assessment charges were previously included in other expense.

THE BANK OF NEW YORK MELLON CORPORATION

Condensed Consolidated Income Statement - continued

Net income applicable to common shareholders of The Bank of New York Mellon Corporation used for the earnings per share calculation

Quarter ended

March 31, 2017

Dec. 31, 2016

March 31, 2016

(in millions)

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

$

880

$

822

$

804

Less:  Earnings allocated to participating securities

14

13

11

Net income applicable to the common shareholders of The Bank of New York Mellon Corporation after required adjustments for the calculation of basic and diluted earnings per common share

$

866

$

809

$

793



Average common shares and equivalents outstanding of The Bank of New York Mellon Corporation

Quarter ended

March 31, 2017

Dec. 31, 2016

March 31, 2016

(in thousands)

Basic

1,041,158

1,050,888

1,079,641

Diluted

1,047,746

1,056,818

1,085,284



Earnings per share applicable to the common shareholders of The Bank of New York Mellon Corporation

Quarter ended

March 31, 2017

Dec. 31, 2016

March 31, 2016

(in dollars)

Basic

$

0.83

$

0.77

$

0.73

Diluted

$

0.83

$

0.77

$

0.73

THE BANK OF NEW YORK MELLON CORPORATION

Consolidated Balance Sheet

(dollars in millions, except per share amounts)

March 31,
2017

Dec. 31,
2016

Assets


Cash and due from:


Banks

$

5,366

$

4,822

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

65,086

58,041

Interest-bearing deposits with banks

14,554

15,086

Federal funds sold and securities purchased under resale agreements

25,776

25,801

Securities:


Held-to-maturity (fair value of $40,066 and $40,669)

40,254

40,905

Available-for-sale

75,580

73,822

 Total securities

115,834

114,727

Trading assets

4,912

5,733

Loans

60,868

64,458

Allowance for loan losses

(164)

(169)

Net loans

60,704

64,289

Premises and equipment

1,307

1,303

Accrued interest receivable

551

568

Goodwill

17,355

17,316

Intangible assets

3,549

3,598

Other assets

21,515

20,954

Subtotal assets of operations

336,509

332,238

Assets of consolidated investment management funds, at fair value

1,027

1,231

Total assets

$

337,536

$

333,469

Liabilities


Deposits:


Noninterest-bearing (principally U.S. offices)

$

79,771

$

78,342

Interest-bearing deposits in U.S. offices

50,991

52,049

Interest-bearing deposits in Non-U.S. offices

90,529

91,099

 Total deposits

221,291

221,490

Federal funds purchased and securities sold under repurchase agreements

11,149

9,989

Trading liabilities

2,816

4,389

Payables to customers and broker-dealers

21,306

20,987

Commercial paper

2,543

—

Other borrowed funds

1,022

754

Accrued taxes and other expenses

5,290

5,867

Other liabilities (includes allowance for lending-related commitments of $112 and $112)

5,733

5,635

Long-term debt

26,346

24,463

Subtotal liabilities of operations

297,496

293,574

Liabilities of consolidated investment management funds, at fair value

209

315

Total liabilities

297,705

293,889

Temporary equity


Redeemable noncontrolling interests

159

151

Permanent equity


Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 35,826 and 35,826 shares

3,542

3,542

Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,345,247,459 and 1,333,706,427 shares

13

13

Additional paid-in capital

26,248

25,962

Retained earnings

23,300

22,621

Accumulated other comprehensive loss, net of tax

(3,524)

(3,765)

Less:  Treasury stock of 305,370,439 and 286,218,126 common shares, at cost

(10,441)

(9,562)

Total The Bank of New York Mellon Corporation shareholders' equity

39,138

38,811

Nonredeemable noncontrolling interests of consolidated investment management funds

534

618

Total permanent equity

39,672

39,429

Total liabilities, temporary equity and permanent equity

$

337,536

$

333,469

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

BNY Mellon has included in this Earnings Release certain Non-GAAP financial measures based on fully phased-in CET1 and other risk-based capital ratios, the fully phased-in SLR and tangible common shareholders' equity.  BNY Mellon believes that the CET1 and other risk-based capital ratios on a fully phased-in basis and the SLR on a fully phased-in basis are measures of capital strength that provide additional useful information to investors, supplementing the capital ratios which are, or were, required by regulatory authorities.  The tangible common shareholders' equity ratio, which excludes goodwill and intangible assets, net of deferred tax liabilities, includes changes in investment securities valuations which are reflected in total shareholders' equity.  In addition, this ratio is expressed as a percentage of the actual book value of assets.  BNY Mellon believes that the return on tangible common equity measure, which excludes goodwill and intangible assets, net of deferred tax liabilities, is a useful additional measure for investors because it presents a measure of those assets that can generate income.  BNY Mellon has provided a measure of tangible book value per common share, which it believes provides additional useful information as to the level of tangible assets in relation to shares of common stock outstanding.

BNY Mellon has presented revenue measures, which exclude the effect of noncontrolling interests related to consolidated investment management funds, and expense measures, which exclude M&I, litigation and restructuring charges and amortization of intangible assets.  Return on equity, operating leverage and operating margin measures, which exclude some or all of these items, as well as the recovery related to Sentinel, are also presented.  Operating margin measures may also exclude the provision for credit losses and distribution and servicing expense.  BNY Mellon believes that these measures are useful to investors because they permit a focus on period-to-period comparisons, which relate to the ability of BNY Mellon to enhance revenues and limit expenses in circumstances where such matters are within BNY Mellon's control.  M&I expenses primarily relate to acquisitions and generally continue for approximately three years after the transaction.  Litigation charges represent accruals for loss contingencies that are both probable and reasonably estimable, but exclude standard business-related legal fees.  Restructuring charges relate to our streamlining actions and Operational Excellence Initiatives.  Excluding these charges mentioned above permits investors to view expenses on a basis consistent with how management views the business.

The presentation of revenue growth 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.  BNY Mellon believes 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.

The presentation of income (loss) from consolidated investment management funds, net of net income (loss) attributable to noncontrolling interests related to the consolidation of certain investment management funds permits investors to view revenue on a basis consistent with how management views the business.  BNY Mellon believes that these presentations, as a supplement to GAAP information, give investors a clearer picture of the results of its primary businesses.

Each of these measures as described above is used by management to monitor financial performance, both on a company-wide and on a business-level basis.

The following table presents the reconciliation of the pre-tax operating margin ratio.

Reconciliation of income before income taxes – pre-tax operating margin




(dollars in millions)

1Q17

4Q16

3Q16

2Q16

1Q16

Income before income taxes – GAAP

$

1,206

$

1,152

$

1,317

$

1,165

$

1,091

Less:  Net income (loss) attributable to noncontrolling interests of consolidated investment management funds

18

4

9

4

(7)

Add:  Amortization of intangible assets

52

60

61

59

57

M&I, litigation and restructuring charges

8

7

18

7

17

Recovery related to Sentinel

—

—

(13)

—

—

Income before income taxes, as adjusted – Non-GAAP (a)

$

1,248

$

1,215

$

1,374

$

1,227

$

1,172






Fee and other revenue – GAAP

$

3,018

$

2,954

$

3,150

$

2,999

$

2,970

Income (loss) from consolidated investment management funds – GAAP

33

5

17

10

(6)

Net interest revenue – GAAP

792

831

774

767

766

Total revenue – GAAP

3,843

3,790

3,941

3,776

3,730

Less:  Net income (loss) attributable to noncontrolling interests of consolidated investment management funds

18

4

9

4

(7)

Total revenue, as adjusted – Non-GAAP (a)

$

3,825

$

3,786

$

3,932

$

3,772

$

3,737






Pre-tax operating margin – GAAP (b)(c)

31

%

30

%

33

%

31

%

29

%

Adjusted pre-tax operating margin – Non-GAAP (a)(b)(c)

33

%

32

%

35

%

33

%

31

%

(a)

Non-GAAP information for all periods presented excludes net income (loss) attributable to noncontrolling interests of consolidated investment management funds, amortization of intangible assets and M&I, litigation and restructuring charges.  Non-GAAP information for 3Q16 also excludes a recovery of the previously impaired Sentinel loan.

(b)

Income before taxes divided by total revenue.

(c)

Our GAAP earnings include tax-advantaged investments such as low income housing, renewable energy, bank-owned life insurance and tax-exempt securities.  The benefits of these investments are primarily reflected in tax expense.  If reported on a tax-equivalent basis, these investments would increase revenue and income before taxes by $101 million for 1Q17, $92 million for 4Q16, $74 million for 3Q16 and 2Q16, $77 million for 1Q16 and would increase our pre-tax operating margin by approximately 1.8% for 1Q17, 1.7% for 4Q16, 1.2% for 3Q16, 1.3% for 2Q16 and 1.4% for 1Q16.

The following table presents the reconciliation of the operating leverage.

Operating leverage


1Q17 vs.

(dollars in millions)

1Q17

4Q16

1Q16

4Q16

1Q16

Total revenue – GAAP

$

3,843

$

3,790

$

3,730

1.40

%

3.03

%

Less:  Net income (loss) attributable to noncontrolling interests of consolidated investment management funds

18

4

(7)


Total revenue, as adjusted – Non-GAAP

$

3,825

$

3,786

$

3,737

1.03

%

2.35

%






Total noninterest expense – GAAP

$

2,642

$

2,631

$

2,629

0.42

%

0.49

%

Less:  Amortization of intangible assets

52

60

57


M&I, litigation and restructuring charges

8

7

17


Total noninterest expense, as adjusted – Non-GAAP

$

2,582

$

2,564

$

2,555

0.70

%

1.06

%






Operating leverage – GAAP (a)


98

bps

254

bps

Adjusted operating leverage – Non-GAAP (a)(b)


33

bps

129

bps

(a)

Operating leverage is the rate of increase (decrease) in total revenue less the rate of increase (decrease) in total noninterest expense.

(b)

Non-GAAP operating leverage for all periods presented excludes net income (loss) attributable to noncontrolling interests of consolidated investment management funds, amortization of intangible assets and M&I, litigation and restructuring charges.

bps – basis points.

The following table presents the reconciliation of the returns on common equity and tangible common equity.

Return on common equity and tangible common equity




(dollars in millions)

1Q17

4Q16

3Q16

2Q16

1Q16

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

$

880

$

822

$

974

$

825

$

804

Add:  Amortization of intangible assets

52

60

61

59

57

Less:  Tax impact of amortization of intangible assets

18

19

21

21

20

Net income applicable to common shareholders of The Bank of New York Mellon Corporation excluding amortization of intangible assets – Non-GAAP

914

863

1,014

863

841

Add:  M&I, litigation and restructuring charges

8

7

18

7

17

  Recovery related to Sentinel

—

—

(13)

—

—

Less:  Tax impact of M&I, litigation and restructuring charges

2

3

5

2

6

  Tax impact of recovery related to Sentinel

—

—

(5)

—

—

Net income applicable to common shareholders of The Bank of New York Mellon Corporation, as adjusted – Non-GAAP (a)

$

920

$

867

$

1,019

$

868

$

852






Average common shareholders' equity

$

34,965

$

35,171

$

35,767

$

35,827

$

35,252

Less:  Average goodwill

17,338

17,344

17,463

17,622

17,562

Average intangible assets

3,578

3,638

3,711

3,789

3,812

Add:  Deferred tax liability – tax deductible goodwill (b)

1,518

1,497

1,477

1,452

1,428

Deferred tax liability – intangible assets (b)

1,100

1,105

1,116

1,129

1,140

Average tangible common shareholders' equity – Non-GAAP

$

16,667

$

16,791

$

17,186

$

16,997

$

16,446






Return on common equity – GAAP (c)

10.2

%

9.3

%

10.8

%

9.3

%

9.2

%

Adjusted return on common equity – Non-GAAP (a)(c)

10.7

%

9.8

%

11.3

%

9.7

%

9.7

%






Return on tangible common equity – Non-GAAP (c)

22.2

%

20.4

%

23.5

%

20.4

%

20.6

%

Adjusted return on tangible common equity – Non-GAAP (a)(c)

22.4

%

20.5

%

23.6

%

20.5

%

20.8

%

(a)

Non-GAAP information for all periods presented excludes amortization of intangible assets and M&I, litigation and restructuring charges.  Non-GAAP information for 3Q16 also excludes a recovery of the previously impaired Sentinel loan.

(b)

Deferred tax liabilities are based on fully phased-in Basel III rules.

(c)

Quarterly returns are annualized.

The following table presents the reconciliation of the book value per common share.

Book value per common share

March 31,
2017

Dec. 31,
2016

Sept. 30,
2016

June 30,
2016

March 31,
2016

(dollars in millions, unless otherwise noted)

BNY Mellon shareholders' equity at period end – GAAP

$

39,138

$

38,811

$

39,695

$

38,559

$

38,459

Less:  Preferred stock

3,542

3,542

3,542

2,552

2,552

BNY Mellon common shareholders' equity at period end – GAAP

35,596

35,269

36,153

36,007

35,907

Less:  Goodwill

17,355

17,316

17,449

17,501

17,604

     Intangible assets

3,549

3,598

3,671

3,738

3,781

Add:  Deferred tax liability – tax deductible goodwill (a)

1,518

1,497

1,477

1,452

1,428

Deferred tax liability – intangible assets (a)

1,100

1,105

1,116

1,129

1,140

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

$

17,310

$

16,957

$

17,626

$

17,349

$

17,090






Period-end common shares outstanding (in thousands)

1,039,877

1,047,488

1,057,337

1,067,674

1,077,083






Book value per common share – GAAP

$

34.23

$

33.67

$

34.19

$

33.72

$

33.34

Tangible book value per common share – Non-GAAP

$

16.65

$

16.19

$

16.67

$

16.25

$

15.87

(a)   Deferred tax liabilities are based on fully phased-in Basel III rules.

The following table presents the impact of changes in foreign currency exchange rates on our consolidated investment management and performance fees.

Investment management and performance fees – Consolidated

1Q17 vs.

(dollars in millions)

1Q17

1Q16

1Q16

Investment management and performance fees – GAAP

$

842

$

812

4

%

Impact of changes in foreign currency exchange rates

—

(30)

Investment management and performance fees, as adjusted – Non-GAAP

$

842

$

782

8

%

The following table presents income from consolidated investment management funds, net of noncontrolling interests.

Income (loss) from consolidated investment management funds, net of noncontrolling interests

(in millions)

1Q17

4Q16

3Q16

2Q16

1Q16

Income (loss) from consolidated investment management funds

$

33

$

5

$

17

$

10

$

(6)

Less:  Net income (loss) attributable to noncontrolling interests of consolidated investment management funds

18

4

9

4

(7)

Income from consolidated investment management funds, net of noncontrolling interests

$

15

$

1

$

8

$

6

$

1

The following table presents the impact of changes in foreign currency exchange rates on investment management fees reported in the Investment Management segment.

Investment management fees - Investment Management business

1Q17 vs.

(dollars in millions)

1Q17

1Q16

1Q16

Investment management fees – GAAP

$

814

$

786

4

%

Impact of changes in foreign currency exchange rates

—

(28)

Investment management fees, as adjusted – Non-GAAP

$

814

$

758

7

%

The following table presents the revenue line items in the Investment Management business impacted by the consolidated investment management funds.

Income (loss) from consolidated investment management funds, net of noncontrolling interests - Investment Management business

(in millions)

1Q17

4Q16

3Q16

2Q16

1Q16

Investment management fees

$

2

$

4

$

2

$

3

$

2

Other (Investment income (loss))

13

(3)

6

3

(1)

Income from consolidated investment management funds, net of noncontrolling interests

$

15

$

1

$

8

$

6

$

1

The following table presents the reconciliation of the pre-tax operating margin for the Investment Management business.

Pre-tax operating margin - Investment Management business




(dollars in millions)

1Q17

4Q16

3Q16

2Q16

1Q16

Income before income taxes – GAAP

$

277

$

260

$

256

$

234

$

217

Add:  Amortization of intangible assets

15

22

22

19

19

Provision for credit losses

3

6

—

1

(1)

Adjusted income before income taxes excluding amortization of intangible assets and provision for credit losses – Non-GAAP

$

295

$

288

$

278

$

254

$

235






Total revenue – GAAP

$

963

$

960

$

958

$

938

$

895

Less:  Distribution and servicing expense

101

98

104

102

100

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

$

862

$

862

$

854

$

836

$

795






Pre-tax operating margin – GAAP (a)

29

%

27

%

27

%

25

%

24

%

Adjusted pre-tax operating margin, excluding amortization of intangible assets, provision for credit losses and distribution and servicing expense – Non-GAAP (a)

34

%

33

%

33

%

30

%

30

%

(a)   Income before taxes divided by total revenue.

DIVIDENDS

Common – On April 20, 2017, The Bank of New York Mellon Corporation declared a quarterly common stock dividend of $0.19 per common share.  This cash dividend is payable on May 12, 2017 to shareholders of record as of the close of business on May 2, 2017.

Preferred – On April 20, 2017, The Bank of New York Mellon Corporation declared the following dividends for the noncumulative perpetual preferred stock, liquidation preference $100,000 per share, for the dividend period ending in June 2017, in each case payable on June 20, 2017 to holders of record as of the close of business on June 5, 2017:

  • $1,022.22 per share on the Series A Preferred Stock (equivalent to $10.2222 per Normal Preferred Capital Security of Mellon Capital IV, each representing a 1/100th interest in a share of the Series A Preferred Stock);
  • $1,300.00 per share on the Series C Preferred Stock (equivalent to $0.3250 per depositary share, each representing a 1/4,000th interest in a share of the Series C Preferred Stock);
  • $2,250.00 per share on the Series D Preferred Stock (equivalent to $22.5000 per depositary share, each representing a 1/100th interest in a share of the Series D Preferred Stock); and
  • $2,475.00 per share on the Series E Preferred Stock (equivalent to $24.7500 per depositary share, each representing a 1/100th interest in a share of the Series E Preferred Stock).

CAUTIONARY STATEMENT

A number of statements (i) in this Earnings Release, (ii) in our presentations and (iii) in the responses to questions on our conference call discussing our quarterly results and other public events may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 including our estimated capital ratios and expectations relating to those ratios, preliminary business metrics and statements regarding the progress and impact of technology enhancements and the business improvement process.  These statements may be expressed in a variety of ways, including the use of future or present tense language.  Words such as "estimate," "forecast," "project," "anticipate," "likely," "target," "expect," "intend," "continue," "seek," "believe," "plan," "goal," "could," "should," "may," "will," "strategy," "opportunities," "trends" and words of similar meaning signify forward-looking statements.  These statements and other forward-looking statements contained in other public disclosures of The Bank of New York Mellon Corporation which make reference to the cautionary factors described in this Earnings Release are based upon current beliefs and expectations and are subject to significant risks and uncertainties (some of which are beyond BNY Mellon's control).  Actual results may differ materially from those expressed or implied as a result of these risks and uncertainties, including, but not limited to, the risk factors and other uncertainties set forth in BNY Mellon's Annual Report on Form 10-K for the year ended Dec. 31, 2016 and BNY Mellon's other filings with the Securities and Exchange Commission.  All forward-looking statements in this Earnings Release speak only as of April 20, 2017, 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.

ABOUT BNY MELLON

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle.  Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets.  As of March 31, 2017, BNY Mellon had $30.6 trillion in assets under custody and/or administration, and $1.7 trillion in assets under management.  BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments.  BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK).  Additional information is available on www.bnymellon.com.  Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.

CONFERENCE CALL INFORMATION

Gerald L. Hassell, chairman and chief executive officer, and Thomas P. Gibbons, vice chairman and chief financial officer, along with other members of the executive management team from BNY Mellon, will host a conference call and simultaneous live audio webcast at 8:00 a.m. EDT on April 20, 2017.  This conference call and audio webcast will include forward-looking statements and may include other material information. 

Investors and analysts wishing to access the conference call and audio webcast may do so by dialing (800) 390-5696 (U.S.) or (719) 325-2110 (International), and using the passcode: 445371, or by logging on to www.bnymellon.com/investorrelations.  Earnings materials will be available at www.bnymellon.com/investorrelations beginning at approximately 6:30 a.m. EDT on April 20, 2017.  Replays of the conference call and audio webcast will be available beginning April 20, 2017 at approximately 2 p.m. EDT through May 20, 2017 by dialing (888) 203-1112 (U.S.) or (719) 457-0820 (International), and using the passcode: 6203153.  The archived version of the conference call and audio webcast will also be available at www.bnymellon.com/investorrelations for the same time period.

Media Relations:  Eva Radtke  (212) 635-1504
Investor Relations:  Valerie Haertel  (212) 635-8529

SOURCE BNY Mellon

Related Links

http://www.bnymellon.com

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