Bank of New York Mellon Corp 8-K, filed Dec 8, 2021

Bank of New York Mellon Corp (BNY)

8-K 2021-12-08 For: 2021-12-08

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Added on April 09, 2026

About this 8-K

Bank of New York Mellon Corp filed this 8-K on December 8, 2021.

Items reported

Item 8.01: Other events
Item 9.01: Financial statements and exhibits

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Delaware	001-35651	13-2614959
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	BK	New York Stock Exchange

6.244% Fixed-to-Floating Rate Normal Preferred Capital Securities of Mellon Capital IV	BK/P	New York Stock Exchange
(fully and unconditionally guaranteed by The Bank of New York Mellon Corporation)


Exhibit
Number						Description

99.1						Revised Financial Supplement - Business Resegmentation

104						Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.


			The Bank of New York Mellon Corporation (Registrant)
Date: December 8, 2021			By: /s/ James J. Killerlane III
			Name: James J. Killerlane III Title: Secretary


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


						Page
Business Resegmentation						3
Business Segment Revenue						4

Consolidated Results
Condensed Consolidated Income Statement						5
Fee and Other Revenue						6
Money Market Fee Waivers						7

Business Segment Results
Market and Wealth Services Business Segment						8
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
Explanation of GAAP and Non-GAAP Financial Measures						15
Explanation of Income Statement Changes						16


THE BANK OF NEW YORK MELLON CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENT

(dollars in millions, except per share amounts; common shares in thousands)	Quarters														Full years
	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 The Bank of New York Mellon Corporation	$	881	$	991	$	858	$	702	$	876	$	901	$	944	$	3,423	$	4,272

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


THE BANK OF NEW YORK MELLON CORPORATION
EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES





BNY Mellon has included in this Revised Financial Supplement the adjusted pre-tax operating margin – Non-GAAP, which is the pre-tax operating margin for the Investment and Wealth Management business segment, net of distribution and servicing expense that was passed to third parties who distribute or service our managed funds. We believe that this measure is useful when evaluating the performance of the Investment and Wealth Management business relative to industry competitors.




Pre-tax operating margin reconciliation - Investment and Wealth Management business
	Quarters																					Full years
(dollars in millions)	3Q21			2Q21			1Q21			4Q20			3Q20			2Q20			1Q20			FY20			FY19
Income before income taxes – GAAP	$	348		$	326		$	278		$	311		$	245		$	221		$	194		$	971		$	1,061

Total revenue – GAAP	$	1,032		$	999		$	991		$	990		$	918		$	886		$	898		$	3,692		$	3,707
Less: Distribution and servicing expense	76			74			75			76			85			86			91			338			376
Adjusted total revenue, net of distribution and servicing expense – Non-GAAP	$	956		$	925		$	916		$	914		$	833		$	800		$	807		$	3,354		$	3,331

Pre-tax operating margin – GAAP (a)	34		%	33		%	28		%	32		%	27		%	25		%	22		%	26		%	29		%
Adjusted pre-tax operating margin, net of distribution and servicing expense – Non-GAAP (a)	36		%	35		%	30		%	34		%	29		%	28		%	24		%	29		%	32		%
(a) Income before income taxes divided by total revenue.


THE BANK OF NEW YORK MELLON CORPORATION
EXPLANATION OF INCOME STATEMENT CHANGES

In conjunction with reorganizing our business segments in the fourth quarter of 2021, net securities gains (losses) were reclassified to investment and other income on the consolidated income statement. Investment and other income was renamed investment and other revenue.

The reclassifications had no impact on consolidated total revenue. Prior periods were reclassified to be comparable.

	Quarters														Full years
(in millions)	3Q21		2Q21		1Q21		4Q20		3Q20		2Q20		1Q20		FY20		FY19
Investment and other income – previously reported	$	127	$	89	$	9	$	43	$	61	$	132	$	47	$	283	$	1,114	(a)
Add: Net securities gains (losses)	2		2		—		6		9		9		9		33		(18)
Investment and other revenue	$	129	$	91	$	9	$	49	$	70	$	141	$	56	$	316	$	1,096
(a) Investment and other income for full year 2019 reflects the first quarter 2021 reporting changes described below. This amount was not previously published.


In order to combine items of a similar nature within total revenue and to simplify our income statement presentation, in the first quarter of 2021 we made the following reporting changes. The reclassifications had no impact on consolidated total revenue or total revenue for the business segments. Prior periods were reclassified to be comparable with the current period presentation.
• Other trading revenue was reclassified from foreign exchange and other trading revenue to investment and other income.
• Foreign exchange and other trading revenue was renamed foreign exchange revenue.
• The impact of foreign currency remeasurement was reclassified from investment and other income to foreign exchange revenue.
• Income (loss) from consolidated investment management funds was reclassified to investment and other income.
• Investment and other income was reclassified from fee revenue to other revenue. Other revenue includes investment and other income and net securities gains (losses).

																	Full year
(in millions)																	FY19
Foreign exchange and other trading revenue – previously reported																	$	654


Foreign exchange revenue																	$	564

Total fee revenue – previously reported																	$	13,236



Total fee revenue – revised																	$	12,178

Investment and other income – previously reported																	$	968



Investment and other income – revised																	$	1,114

Fee and other revenue – previously reported																	$	13,218

Fee and other revenue – revised																	$	13,274












Other segment
Fee revenue – previously reported																	$	853



Fee (loss) revenue – revised																	$	(24)

Net securities (losses) – previously reported																	$	(16)



Investment and other revenue																	$	861


THE BANK OF NEW YORK MELLON CORPORATION
MONEY MARKET FEE WAIVERS

	Quarters														Full year
(in millions)	3Q21		2Q21		1Q21		4Q20		3Q20		2Q20		1Q20		FY20
Investment services fees	$	(142)	$	(148)	$	(109)	$	(85)	$	(62)	$	(53)	$	(9)	$	(209)
Investment management and performance fees (a)	(109)		(115)		(89)		(56)		(42)		(30)		(14)		(142)
Distribution and servicing fees	(11)		(13)		(13)		(8)		(6)		(3)		—		(17)
Total fee revenue	(262)		(276)		(211)		(149)		(110)		(86)		(23)		(368)
Less: Distribution and servicing expense	29		24		23		15		9		7		—		31
Net impact of money market fee waivers	$	(233)	$	(252)	$	(188)	$	(134)	$	(101)	$	(79)	$	(23)	$	(337)

Impact to investment services fees by line of business (b):
Pershing	$	(86)	$	(91)	$	(77)	$	(65)	$	(59)	$	(53)	$	(9)	$	(186)
Treasury Services	(10)		(11)		(6)		(4)		—		—		—		(4)
Asset Servicing	(29)		(30)		(15)		(9)		(1)		—		—		(10)
Issuer Services	(17)		(16)		(11)		(7)		(2)		—		—		(9)
Total impact to investment services fees by line of business	$	(142)	$	(148)	$	(109)	$	(85)	$	(62)	$	(53)	$	(9)	$	(209)

Impact to revenue by line of business (b):
Pershing	$	(102)	$	(99)	$	(94)	$	(85)	$	(73)	$	(60)	$	(9)	$	(227)
Treasury Services	(13)		(16)		(9)		(5)		(1)		—		—		(6)
Asset Servicing	(47)		(50)		(29)		(13)		(4)		(1)		—		(18)
Issuer Services	(22)		(22)		(15)		(10)		(2)		(1)		—		(13)
Investment Management (a)	(76)		(85)		(61)		(34)		(28)		(24)		(14)		(100)
Wealth Management	(2)		(4)		(3)		(2)		(2)		—		—		(4)
Total impact to revenue by line of business	$	(262)	$	(276)	$	(211)	$	(149)	$	(110)	$	(86)	$	(23)	$	(368)
(a) Money market fee waivers were $49 million in 2019.
(b) The line of business revenue for management reporting purposes reflects the impact of revenue transferred between the businesses.


THE BANK OF NEW YORK MELLON CORPORATION
MARKET AND WEALTH SERVICES BUSINESS SEGMENT

	Quarters																					Full years
(dollars in millions)	3Q21			2Q21			1Q21			4Q20			3Q20			2Q20			1Q20			FY20			FY19
Income statement:
Revenue
Investment services fees
Pershing	$	427		$	439		$	459		$	422		$	401		$	436		$	475		$	1,734		$	1,668
Treasury Services	168			160			164			163			167			157			154			641			584
Clearance and Collateral Management	228			228			226			220			218			227			231			896			904
Total investment services fees	823			827			849			805			786			820			860			3,271			3,156
Foreign exchange revenue	23			23			21			24			17			13			25			79			69
Other fees (a)	31			32			37			33			41			42			50			166			184
Total fee revenue	877			882			907			862			844			875			935			3,516			3,409
Investment and other revenue	13			21			7			9			8			15			30			62			56
Total fee and other revenue	890			903			914			871			852			890			965			3,578			3,465
Net interest revenue	283			289			289			292			286			323			327			1,228			1,230
Total revenue	1,173			1,192			1,203			1,163			1,138			1,213			1,292			4,806			4,695
Provision for credit losses	(16)			(19)			(29)			8			(3)			46			49			100			(5)
Noninterest expense (ex. amortization of intangible assets)	665			647			673			661			637			624			655			2,577			2,600
Amortization of intangible assets	3			5			9			9			9			10			9			37			39
Total noninterest expense	668			652			682			670			646			634			664			2,614			2,639
Income before taxes	$	521		$	559		$	550		$	485		$	495		$	533		$	579		$	2,092		$	2,061


Total revenue by line of business:
Pershing	$	566		$	590		$	605		$	563		$	538		$	578		$	653		$	2,332		$	2,287
Treasury Services	326			319			317			325			323			340			339			1,327			1,275
Clearance and Collateral Management	281			283			281			275			277			295			300			1,147			1,133
Total revenue by line of business	$	1,173		$	1,192		$	1,203		$	1,163		$	1,138		$	1,213		$	1,292		$	4,806		$	4,695


Financial ratios:
Pre-tax operating margin	44		%	47		%	46		%	42		%	43		%	44		%	45		%	44		%	44		%
(a) Other fees includes investment management and performance fees, financing-related fees and distribution and servicing fees.


THE BANK OF NEW YORK MELLON CORPORATION
MARKET AND WEALTH SERVICES BUSINESS SEGMENT

	Quarters														Full years
(dollars in millions, unless otherwise noted)	3Q21		2Q21		1Q21		4Q20		3Q20		2Q20		1Q20		FY20		FY19
Selected balance sheet data:
Average loans	$	39,041	$	38,360	$	35,094	$	32,939	$	31,705	$	32,967	$	32,122	$	32,432	$	29,021
Average assets (a)	$	143,630	$	144,297	$	148,820	$	137,410	$	121,197	$	128,259	$	107,222	$	123,554	$	95,932
Average deposits	$	101,253	$	102,896	$	107,079	$	98,670	$	81,660	$	81,568	$	71,725	$	83,442	$	57,515

Selected metrics:
AUC/A at period end (in trillions) (b)	$	11.2	$	11.1	$	9.9	$	10.2	$	9.6	$	9.5	$	9.5	$	10.2	$	9.5

Pershing
AUC/A at period end (in trillions)	$	2.6	$	2.8	$	2.6	$	2.5	$	2.2	$	2.1	$	1.8	$	2.5	$	2.1
Net new assets (U.S. platform) (in billions) (c)	$	13	$	47	$	32	$	45	$	17	$	17	$	37	$	116	$	111
Average active clearing accounts (in thousands) (d)	7,259		7,290		7,143		7,007		6,914		6,850		6,761		6,883		6,555

Treasury Services
Average daily U.S. dollar payment volumes (in thousands)	232,144		230,346		235,975		234,362		215,255		208,817		229,320		221,755		225,145

Clearance and Collateral Management
Average tri-party collateral management balances (in billions)	$	4,516	$	3,898	$	3,638	$	3,555	$	3,417	$	3,573	$	3,724	$	3,566	$	3,446
(a) In business segments where average deposits are greater than average loans, average assets include an allocation of investment securities equal to the difference.
(b) Consists of AUC/A from the Clearance and Collateral Management and Pershing businesses.
(c) Net new assets represent net flows of assets (e.g., net cash deposits and net securities transfers, including dividends and interest) in customer accounts in Pershing LLC, a U.S. broker-dealer. The methodology used to determine net new assets has been updated to include dividends and interest. Prior period amounts have been restated for comparability.
(d) Average active clearing accounts have been expanded to include global accounts. Prior periods have been restated for comparability.


THE BANK OF NEW YORK MELLON CORPORATION
SECURITIES SERVICES BUSINESS SEGMENT

	Quarters																					Full years
(dollars in millions)	3Q21			2Q21			1Q21			4Q20			3Q20			2Q20			1Q20			FY20			FY19
Income statement:
Revenue
Investment services fees
Asset Servicing	$	979		$	960		$	953		$	896		$	915		$	918		$	906		$	3,635		$	3,565
Issuer Services	281			281			246			260			299			278			263			1,100			1,129
Total investment services fees	1,260			1,241			1,199			1,156			1,214			1,196			1,169			4,735			4,694
Foreign exchange revenue	125			129			172			139			109			151			203			602			457
Other fees (a)	30			25			30			39			43			53			47			182			176
Total fee revenue	1,415			1,395			1,401			1,334			1,366			1,400			1,419			5,519			5,327
Investment and other revenue	73			38			30			30			28			49			52			159			134
Total fee and other revenue	1,488			1,433			1,431			1,364			1,394			1,449			1,471			5,678			5,461
Net interest revenue	349			354			356			378			395			445			479			1,697			1,896
Total revenue	1,837			1,787			1,787			1,742			1,789			1,894			1,950			7,375			7,357
Provision for credit losses	(19)			(58)			(50)			23			(7)			99			100			215			(11)
Noninterest expense (ex. amortization of intangible assets)	1,535			1,393			1,411			1,496			1,365			1,347			1,314			5,522			5,416
Amortization of intangible assets	8			7			8			8			9			8			9			34			41
Total noninterest expense	1,543			1,400			1,419			1,504			1,374			1,355			1,323			5,556			5,457
Income before taxes	$	313		$	445		$	418		$	215		$	422		$	440		$	527		$	1,604		$	1,911


Total revenue by line of business:
Asset Servicing	$	1,437		$	1,382		$	1,424		$	1,357		$	1,354		$	1,463		$	1,531		$	5,705		$	5,634
Issuer Services	400			405			363			385			435			431			419			1,670			1,723
Total revenue by line of business	$	1,837		$	1,787		$	1,787		$	1,742		$	1,789		$	1,894		$	1,950		$	7,375		$	7,357


Financial ratios:
Pre-tax operating margin	17		%	25		%	23		%	12		%	24		%	23		%	27		%	22		%	26		%

Memo: Securities lending revenue (b)	$	45		$	42		$	41		$	36		$	37		$	51		$	46		$	170		$	163
(a) Other fees includes investment management and performance fees, financing-related fees and distribution and servicing fees.
(b) Included in investment services fees reported in the Asset Servicing business.