Exhibit 99.1
The Bank of New York Mellon Corporation
Revised Financial Supplement
(Business Resegmentation)
Seven Quarter Trend Through 3Q21
And Full Years 2020 and 2019
Table of Contents
Business Resegmentation | Page |
Business Segment Revenue | |
Consolidated Results | |
Condensed Consolidated Income Statement | |
Fee and Other Revenue | 6 |
Money Market Fee Waivers | 7 |
Business Segment Results | 8 |
Market and Wealth Services Business Segment | |
Securities Services Business Segment | 10 |
Investment and Wealth Management Business Segment | 12 |
AUM by Product Type, Changes in AUM and Wealth Management Client Assets | 13 |
Other Segment | 14 |
Supplemental Information | 15 |
Explanation of GAAP and Non-GAAP Financial Measures | |
Explanation of Income Statement Changes | 16 |
THE BANK OF NEW YORK MELLON CORPORATION
BUSINESS RESEGMENTATION
The following disclosures provide supplemental information related to changes to our business segments, which became effective in the fourth quarter of 2021. The disclosures also provide information related to certain reclassifications on the consolidated income statement that are being made to further simplify our total revenue presentation.
The business segment changes include creating the following two new segments by disaggregating the former Investment Services segment:
Market and Wealth Services business segment. This segment includes the Pershing, Treasury Services and Clearance and Collateral Management businesses.
Securities Services business segment. This segment includes the Asset Servicing and Issuer Services businesses.
Our Investment and Wealth Management business segment and Other segment were not impacted by the changes.
The following pages provide detailed financial information to assist investors in understanding how the business segment results would have been presented in previously-filed reports based on how the businesses are managed beginning in the fourth quarter of 2021.
Below is a summary of our business segments, before and after the changes.
CURRENT FORMER
Investment Services | Investment and Wealth | Other | ||||||||||||||
Management | ||||||||||||||||
Treasury | Clearance and | Asset | Issuer | Investment | Wealth | |||||||||||
Pershing | Collateral | |||||||||||||||
Services | Servicing | Services | Management | Management | ||||||||||||
Management | ||||||||||||||||
Market and Wealth Services | Securities Services | Investment and Wealth | Other | |||||||||||
Management | ||||||||||||||
Treasury | Clearance and | Asset | Issuer | Investment | Wealth | |||||||||
Pershing | Collateral | |||||||||||||
Services | Servicing | Services | Management | Management | ||||||||||
Management | ||||||||||||||
In conjunction with the changes to our business segments, the following simplifications were made to the consolidated income statement presentation:
Asset servicing fees, clearing services fees, issuer services fees and treasury services fees have been collapsed to one line, investment services fees. Net securities gains (losses) were reclassified to investment and other income. Investment and other income was renamed investment and other revenue.
These simplifications had no impact on consolidated total revenue or total revenue for each of the business segments. Prior periods were reclassified for comparability.
For the segment presentation, we are now presenting investment services fees for each line of business, as well as other fees, total fee revenue, investment and other revenue and total fee and other revenue for each business segment.
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THE BANK OF NEW YORK MELLON CORPORATION
BUSINESS SEGMENT REVENUE
Market and Wealth Services business segment
Line of business
Pershing
Treasury Services
Clearance and Collateral Management
Primary products and services
Clearing and custody, investment, wealth and retirement solutions, technology and enterprise data management, trading services and prime brokerage
Integrated cash management solutions including payments, foreign exchange, liquidity management, receivables processing and payables management and trade finance and processing
Clearance (including U.S. government and global clearing services) and Global Collateral Management (including tri-party services)
Primary types of revenue
- Investment services fees
- Net interest revenue
- Investment services fees
- Net interest revenue
- Foreign exchange revenue
- Investment services fees
- Net interest revenue
Securities Services business segment
Line of business | Primary products and services | Primary types of revenue | ||
Asset Servicing | Custody, Trust & Depositary, accounting, ETF services, middle-office solutions, | - Investment services fees (includes securities lending | ||
transfer agency, services for private equity and real estate funds, foreign exchange, | revenue) | |||
securities lending, liquidity/lending services, prime brokerage and data analytics | - Net interest revenue | |||
- Foreign exchange revenue | ||||
- Financing-related fees | ||||
Issuer Services | Corporate Trust (trustee, paying agency, fiduciary, escrow and other financial | - Investment services fees | ||
services) and Depositary Receipts (issuer services and support for brokers and | - Net interest revenue | |||
investors) | - Foreign exchange revenue |
Investment and Wealth Management business segment
Line of business | Primary products and services | Primary types of revenue | ||
Investment Management | Diversified investment management strategies and distribution of investment | - Investment management fees | ||
products | - Performance fees | |||
- Distribution and servicing fees | ||||
Wealth Management | Investment management, custody, wealth and estate planning, private banking | - Investment management fees | ||
services, investment services and information management | - Net interest revenue | |||
Other segment
Description | Primary types of revenue | |
Includes leasing portfolio, corporate treasury activities, including our securities | - Investment and other revenue | |
portfolio, derivatives and other trading activity, corporate and bank-owned life | - Other trading revenue | |
insurance, renewable energy investments and certain business exits | - Net gains (losses) on securities | |
- Net interest revenue (expense) |
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THE BANK OF NEW YORK MELLON CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENT
(dollars in millions, except per share amounts; | Quarters | Full years | |||||||||||||||||||||||||
common shares in thousands) | 3Q21 | 2Q21 | 1Q21 | 4Q20 | 3Q20 | 2Q20 | 1Q20 | FY20 | FY19 | ||||||||||||||||||
Revenue | |||||||||||||||||||||||||||
Investment services fees | $ | 2,091 | $ | 2,076 | $ | 2,056 | $ | 1,969 | $ | 2,012 | $ | 2,025 | $ | 2,041 | $ | 8,047 | $ | 7,900 | |||||||||
Investment management and performance fees | 913 | 889 | 890 | 884 | 835 | 786 | 862 | 3,367 | 3,389 | ||||||||||||||||||
Foreign exchange revenue | 185 | 184 | 231 | 187 | 149 | 193 | 245 | 774 | 564 | ||||||||||||||||||
Financing-related fees | 48 | 48 | 51 | 46 | 49 | 58 | 59 | 212 | 196 | ||||||||||||||||||
Distribution and servicing fees | 28 | 27 | 29 | 28 | 29 | 27 | 31 | 115 | 129 | ||||||||||||||||||
Total fee revenue | 3,265 | 3,224 | 3,257 | 3,114 | 3,074 | 3,089 | 3,238 | 12,515 | 12,178 | ||||||||||||||||||
Investment and other revenue | 129 | 91 | 9 | 49 | 70 | 141 | 56 | 316 | 1,096 | ||||||||||||||||||
Total fee and other revenue | 3,394 | 3,315 | 3,266 | 3,163 | 3,144 | 3,230 | 3,294 | 12,831 | 13,274 | ||||||||||||||||||
Net interest revenue | 641 | 645 | 655 | 680 | 703 | 780 | 814 | 2,977 | 3,188 | ||||||||||||||||||
Total revenue | 4,035 | 3,960 | 3,921 | 3,843 | 3,847 | 4,010 | 4,108 | 15,808 | 16,462 | ||||||||||||||||||
Provision for credit losses | (45) | (86) | (83) | 15 | 9 | 143 | 169 | 336 | (25) | ||||||||||||||||||
Noninterest expense | |||||||||||||||||||||||||||
Staff | 1,584 | 1,518 | 1,602 | 1,554 | 1,466 | 1,464 | 1,482 | 5,966 | 6,063 | ||||||||||||||||||
Software and equipment | 372 | 365 | 362 | 359 | 340 | 345 | 326 | 1,370 | 1,222 | ||||||||||||||||||
Professional, legal and other purchased services | 363 | 363 | 343 | 381 | 355 | 337 | 330 | 1,403 | 1,345 | ||||||||||||||||||
Sub-custodian and clearing | 129 | 132 | 124 | 116 | 119 | 120 | 105 | 460 | 450 | ||||||||||||||||||
Net occupancy | 120 | 122 | 123 | 173 | 136 | 137 | 135 | 581 | 564 | ||||||||||||||||||
Distribution and servicing | 76 | 73 | 74 | 75 | 85 | 85 | 91 | 336 | 374 | ||||||||||||||||||
Bank assessment charges | 34 | 35 | 34 | 24 | 30 | 35 | 35 | 124 | 125 | ||||||||||||||||||
Business development | 22 | 22 | 19 | 26 | 17 | 20 | 42 | 105 | 213 | ||||||||||||||||||
Amortization of intangible assets | 19 | 20 | 24 | 26 | 26 | 26 | 26 | 104 | 117 | ||||||||||||||||||
Other | 199 | 128 | 146 | 191 | 107 | 117 | 140 | 555 | 427 | ||||||||||||||||||
Total noninterest expense | 2,918 | 2,778 | 2,851 | 2,925 | 2,681 | 2,686 | 2,712 | 11,004 | 10,900 | ||||||||||||||||||
Income before income taxes | 1,162 | 1,268 | 1,153 | 903 | 1,157 | 1,181 | 1,227 | 4,468 | 5,587 | ||||||||||||||||||
Provision for income taxes | 219 | 241 | 221 | 148 | 213 | 216 | 265 | 842 | 1,120 | ||||||||||||||||||
Net income | 943 | 1,027 | 932 | 755 | 944 | 965 | 962 | 3,626 | 4,467 | ||||||||||||||||||
Net loss (income) attributable to noncontrolling interests | 4 | (5) | (5) | (5) | (7) | (15) | 18 | (9) | (26) | ||||||||||||||||||
Preferred stock dividends | (66) | (31) | (69) | (48) | (61) | (49) | (36) | (194) | (169) | ||||||||||||||||||
Net income applicable to common shareholders of | $ | 881 | $ | 991 | $ | 858 | $ | 702 | $ | 876 | $ | 901 | $ | 944 | $ | 3,423 | $ | 4,272 | |||||||||
The Bank of New York Mellon Corporation | |||||||||||||||||||||||||||
Average common shares and equivalents outstanding: Basic | 844,088 | 869,460 | 882,558 | 889,928 | 889,499 | 889,020 | 894,122 | 890,839 | 939,623 | ||||||||||||||||||
Diluted | 849,028 | 873,475 | 885,655 | 891,846 | 891,069 | 890,561 | 896,689 | 892,514 | 943,109 | ||||||||||||||||||
Earnings per common share: Basic | $ | 1.04 | $ | 1.14 | $ | 0.97 | $ | 0.79 | $ | 0.98 | $ | 1.01 | $ | 1.05 | $ | 3.84 | $ | 4.53 | |||||||||
Diluted | $ | 1.04 | $ | 1.13 | $ | 0.97 | $ | 0.79 | $ | 0.98 | $ | 1.01 | $ | 1.05 | $ | 3.83 | $ | 4.51 |
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The Bank of New York Mellon Corporation published this content on 08 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 December 2021 16:31:01 UTC.