Bank of New York Mellon : Q3 2022 Quarterly Financial Highlights

4Q22 Financial Highlights

J A N U A R Y 1 3 , 2 0 2 3

2022 Financial Highlights

Revenue

ReportedExcluding notable items

(a)

$16.4bn $16.9bn

Pre-tax income

ReportedExcluding notable items

(a)

$3.3bn $4.9bn

Returns

ReportedExcluding notable items

ROE:	6.5%		%
		10.3	(a)
	(b)	(a)
ROTCE:	13.4%	21.0%

EPS

ReportedExcluding notable items

(a)

$2.90 $4.59

Pre-tax margin

ReportedExcluding notable items

20%29% (a)

Capital ratios

T1L: 5.8%

CET1: 11.2%

• Revenue up 3% YoY, up 6%(a) excluding the impact of notable items
• • Fee revenue flat YoY
  • Net interest revenue up 34% YoY
• Expense up 13% YoY, up 5%(a) excluding the impact of notable items, and up 8%(a) excluding the impact of notable items and currency translation
• Provision for credit losses was $39mm compared with a provision benefit of $231mm in 2021
• Returned $1.3bn to common shareholders
• Board of Directors authorized a new $5bn common equity share repurchase program, effective January 1, 2023

1. Represents a non-GAAP measure. See pages 16, 17 and 18 in the Appendix for the corresponding reconciliations of the non-GAAP measures of revenue, revenue growth, expense growth, pre-tax income, earnings per share, pre-tax margin, ROE
   2 and ROTCE excluding notable items and expense growth excluding notable items and currency translation.
2. Represents a non-GAAP measure. See page 15 in the Appendix for the corresponding reconciliation of the non-GAAP measure of ROTCE.

4Q22 Financial Results							= excluding the impact of notable items
	4Q22		3Q22		4Q21		4Q22 vs.
$mm, except per share data or unless otherwise noted				3Q22			4Q21
Fee revenue	$3,222	$3,236	$3,231			-%			-%
Investment and other revenue	(360)	117	107			N/M			N/M
Net interest revenue	1,056	926	677			14%			56%
Total revenue	$3,918		$4,279		$4,015		Up 3%(c)	(8)%		Up 9%(c)	(2)%
Provision for credit losses	20	(30)	(17)			N/M			N/M
Noninterest expense	3,213	3,679	2,967		Up 1%(c)	(13)%		Up 2%(c)	8%
Income before income taxes
$685	$630	$1,065			9%			(36)%
Net income applicable to common shareholders	$509	$319	$822			60%			(38)%
EPS	$0.62	$0.39	$1.01		Up 7%(c)	59%		Up 25%(c)	(39)%

Avg. common shares and equivalents outstanding (mm) - diluted

Operating leverage(a)
Pre-tax margin	31%(c)
ROE	11.9%(c)
ROTCE(b)	23.6%(c)

816	815	817	-%	-%
		+203 bps(c)	423 bps	+665 bps(c) N/M
17%	15%	27%
5.7%	3.5%	8.6%
11.5%	7.5%	17.2%

Notable items impacting the quarter

Increase / (decrease)	Revenue	Expense	EPS
4Q22	(460)	213	$(0.67)	4Q22: Impact of net loss from repositioning the securities portfolio, a disposal loss, severance expense and litigation reserves
3Q22	37	714	$(0.81)	3Q22: Impact of goodwill impairment, a disposal gain, severance expense and litigation reserves
4Q21	-	37	$(0.04)	4Q21: Impact of severance expense and litigation reserves

1. Note: See page 13 in the Appendix for corresponding footnotes.
2. Represents a non-GAAP measure. See page 15 in the Appendix for the corresponding reconciliation of the non-GAAP measure of ROTCE.

• (c) Represents a non-GAAP measure. See pages 16, 17 and 18 in the Appendix for the corresponding reconciliations of the non-GAAP measures of revenue growth, expense growth, earnings per share growth, operating leverage, pre-tax margin, ROE and ROTCE excluding notable items.
  N/M - not meaningful.

2022 Financial Results

	2022	2021		2022 vs.
$mm, except per share data or unless otherwise noted		2021
Fee revenue	$12,955	$12,977		-%
Investment and other revenue	(82)	336		N/M
Net interest revenue	3,504	2,618		34%
Total revenue	$16,377		$15,931		3%
Provision for credit losses	39	(231)		N/M
Noninterest expense	13,010	11,514		13%
Income before income taxes
$3,328	$4,648		(28)%
Net income applicable to common shareholders	$2,362	$3,552		(34)%

= excluding the impact of notable items

Up 6%(c)

Up 5%(c), or up 8%(c) excluding

currency translation

EPS		$2.90	$4.14	(30)%	Up 8%(c)
Avg. common shares and equivalents outstanding (mm) - diluted		815	856	(5)%
Operating leverage(a)				N/M	+86 bps(c)
Pre-tax margin	29%(c)	20%	29%
ROE	10.3%(c)	6.5%	8.9%
ROTCE(b)	21.0%(c)	13.4%	17.1%

Notable items impacting the year

Increase / (decrease)	Revenue	Expense	EPS
2022	(511)	1,029	$(1.69)
2021	13	129	$(0.10)

2022: Impact of goodwill impairment, net loss from repositioning the securities portfolio, severance expense, litigation reserves, accelerated amortization of deferred costs for depositary receipts services related to Russia and net gains on disposals

2021: Impact of litigation reserves, severance expense and gains on disposals

1. Note: See page 13 in the Appendix for corresponding footnotes.
2. Represents a non-GAAP measure. See page 15 in the Appendix for the corresponding reconciliation of the non-GAAP measure of ROTCE.

• (c) Represents a non-GAAP measure. See pages 16, 17 and 18 in the Appendix for the corresponding reconciliations of the non-GAAP measures of revenue growth, expense growth, earnings per share growth, operating leverage, pre-tax margin, ROE and ROTCE excluding notable items and expense growth excluding notable items and currency translation.
  N/M - not meaningful.

Capital and Liquidity

	4Q22	3Q22	4Q21
Consolidated regulatory capital ratios:(a)
Tier 1 leverage ratio	5.8%	5.4%	5.5%
Supplementary leverage ratio ("SLR")	6.8	6.3	6.6
Common Equity Tier 1 ratio - Advanced Approaches	11.2	10.1	11.4
Common Equity Tier 1 ratio - Standardized Approach	11.4	10.0	11.2
Consolidated regulatory liquidity ratios:
Liquidity coverage ratio ("LCR")	118%	116%	109%
Cash dividends per common share	$0.37	$0.37	$0.34
Common stock dividends ($mm)	$305	$303	$280
Common stock repurchases ($mm)	2	2	1,249
Book value per common share	$44.40	$43.18	$47.50
Tangible book value per common share(b)	23.11	21.55	24.31
Common shares outstanding (mm)	808	808	804

5

Note: See page 13 in the Appendix for corresponding footnotes.