Bank of New York Mellon : 4 2022 Quarterly Financial Highlights

3Q22 Financial Highlights

O C T O B E R 1 7 , 2 0 2 2

3Q22 Financial Highlights

Revenue		EPS
Reported	Excluding	Reported	Excluding
notable items	notable items
	(a)	$0.39	(a)
$4,279mm $4,242mm	$1.21

Pre-tax income	Pre-tax margin
Reported	Excluding	Reported	Excluding
notable items	notable items
$630mm	(a)	15%	(a)
$1,307mm	31%

• Revenue up 6% YoY, up 5%(a) excluding the impact of notable items
• • Fee revenue down 1% YoY
  • Net interest revenue up 44% YoY
• Expense up 26% YoY, up 4%(a) excluding the impact of notable items
• • Recorded a $680mm non-cash goodwill impairment charge(c)
• Provision for credit losses was a benefit of $30mm compared to a provision benefit of $45mm in 3Q21

Returns	Capital ratios	•	Average loans up 11% YoY and down 1% QoQ
Reported	Excluding
notable items		•	Average deposits down 10% YoY and down 7% QoQ
ROE: 3.5%	10.9%(a)	T1L: 5.4%(c)
(b)	(a)	CET1: 10.0%(c)	•	Returned $0.3bn to common shareholders in dividends
ROTCE: 7.5%	22.4%

1. Represents a non-GAAP measure. See pages 14 and 15 in the Appendix for the corresponding reconciliation of the non-GAAP measures of revenue, revenue growth, expense growth, pre-tax income, earnings per share, pre-tax margin, ROE and ROTCE excluding notable items.
2. Represents a non-GAAP measure. See page 17 in the Appendix for the corresponding reconciliation of the non-GAAP measure of ROTCE.

• (c) Impairment of goodwill associated with the Investment Management reporting unit, which was driven by lower market values and a higher discount rate. This goodwill impairment represents a non-cash charge and did not affect BNY Mellon's liquidity position, tangible common equity or regulatory capital ratios.

3Q22 Financial Results

3Q22 vs.

$mm, except per share data or unless otherwise noted	3Q22		2Q22		3Q21		2Q22			3Q21
Fee revenue	$3,236	$3,339	$3,265			(3)%			(1)%
Investment and other revenue	117	91	129			N/M			N/M
Net interest revenue	926	824	641			12%			44%
Total revenue	$4,279		$4,254		$4,035		Down 1%(c)	1%		Up 4%(c)	6%
Provision for credit losses	(30)	47	(45)		N/M		N/M
	excluding		excluding
							notable			notable
Noninterest expense	3,679	3,112	2,918		items	18%		items	26%
Income before income taxes
$630	$1,095	$1,162			(42)%			(46)%
Net income applicable to common shareholders	$319	$835	$881		excluding	(62)%		excluding	(64)%
							Up 5%(c)			Up 11%(c)
EPS	$0.39	$1.03	$1.04		notable	(62)%		notable	(63)%
	items		items

Avg. common shares and equivalents outstanding (mm) - diluted		815	814	849	-
Operating leverage(a)	Excluding				N/M
notable items	15%	26%	29%
Pre-tax margin	31%(c)
ROE	10.9%(c)	3.5%	9.3%	8.8%
ROTCE(b)	22.4%(c)	7.5%	19.2%	16.8%

+115 bps(c)

excluding

notable

items

(4)%

N/M

Notable items impacting the quarter

Increase / (decrease)	Revenue	Expense	EPS
3Q22	37	714	$(0.81)	Impact of goodwill impairment, a disposal gain, severance expense and litigation reserves
2Q22	-	103	$(0.12)	Impact of higher litigation reserves
3Q21	9	73	$(0.05)	Impact of litigation reserves, gains on disposals and severance expense

1. Note: See page 12 in the Appendix for corresponding footnotes.
2. Represents a non-GAAP measure. See page 17 in the Appendix for the corresponding reconciliation of the non-GAAP measure of ROTCE.

• (c) Represents a non-GAAP measure. See pages 14 and 15 in the Appendix for the corresponding reconciliation of the non-GAAP measures of expense growth, earnings per share, operating leverage, pre-tax margin, ROE and ROTCE excluding notable items.
  N/M - not meaningful.

Capital and Liquidity

	3Q22	2Q22	3Q21
Consolidated regulatory capital ratios:(a)
Tier 1 leverage ratio	5.4%	5.2%	5.7%
Supplementary leverage ratio ("SLR")	6.3	6.2	7.0
Common Equity Tier 1 ratio - Advanced Approaches	10.1	10.0	11.8
Common Equity Tier 1 ratio - Standardized Approach	10.0	10.1	11.7
Consolidated regulatory liquidity ratios:
Liquidity coverage ratio ("LCR")	116%	111%	111%
Cash dividends per common share	$0.37	$0.34	$0.34
Common stock dividends ($mm)	$303	$279	$296
Common stock repurchases ($mm)	2	3	2,001
Book value per common share	$43.18	$44.73	$47.30
Tangible book value per common share(b)	21.55	22.02	24.88
Common shares outstanding (mm)	808	808	826

• Note: See page 12 in the Appendix for corresponding footnotes.

Net Interest Revenue and Balance Sheet Trends

N e t I n t e r e s t R e v e n u e

( $ m m )

+44%

+12%

926

824

641

			3Q22 vs.
$bn, avg.	3Q22	2Q22	3Q21
Deposits:
Noninterest-bearing	$85		(8)%			(1)%
Interest-bearing	204		(7)%			(13)%
Total deposits
$288		(7)%			(10)%
Interest-earning assets:
Cash and reverse repo	131		(10)%			(17)%
Loans	68		(1)%			11%
Investment securities:
HQLA	121		(2)%			(4)%
Non-HQLA	27		(3)%			(9)%
Total investment securities	$148		(2)%			(5)%

3Q21

2Q22

3Q22

• Net interest revenue of $926mm up 12% QoQ, primarily reflects higher interest rates on interest-earning assets, partially offset by higher funding expense

Total interest-earning assets	$352	(5)%	(8)%

• Avg. deposits of $288bn down 7% QoQ
• Avg. interest-earning assets of $352bn down 5% QoQ

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