Bank of New York Mellon Corp 8-K, filed Apr 18, 2023

Bank of New York Mellon Corp (BNY)

8-K 2023-04-18 For: 2023-04-18

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Added on April 09, 2026

About this 8-K

Bank of New York Mellon Corp filed this 8-K on April 18, 2023.

Items reported

Item 2.02: Financial results
Item 7.01: Regulation FD disclosure
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						The Bank of New York Mellon Corporation Earnings Release dated April 18, 2023, announcing financial results for the first quarter of 2023.
						The quotation in Exhibit 99.1 (the “Excluded Section”) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (“Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of BNY Mellon under the Securities Act of 1933 or the Exchange Act. The information included in Exhibit 99.1, other than in the Excluded Section, shall be deemed “filed” for purposes of the Exchange Act.

99.2						The Bank of New York Mellon Corporation Financial Supplement dated April 18, 2023, for the first quarter of 2023.
						The information included in Exhibit 99.2 shall be deemed “filed” for purposes of the Exchange Act.

99.3						First Quarter 2023 Financial Highlights Presentation dated April 18, 2023.
						The information included in Exhibit 99.3 shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of BNY Mellon under the Securities Act of 1933 or the Exchange Act.

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: April 18, 2023			By: /s/ James J. Killerlane III
			Name: James J. Killerlane III Title: Secretary


							1Q23 vs.
	1Q23		4Q22		1Q22		4Q22		1Q22
Net income applicable to common shareholders (in millions)	$	905	$	509	$	699	78	%	29	%

Diluted earnings per common share (c)	$	1.12	$	0.62	$	0.86	81	%	30	%


Media Relations: Garrett Marquis (949) 683-1503			Investor Relations: Marius Merz (212) 298-1480

(b) For information on this Non-GAAP measure, see “Explanation of GAAP and Non-GAAP financial measures” beginning on page 9.

Note: Above comparisons are 1Q23 vs. 1Q22, unless otherwise noted.


(in millions, except per share amounts and unless otherwise noted; not meaningful - N/M)										1Q23 vs.
	1Q23			4Q22			1Q22			4Q22		1Q22
Fee revenue	$	3,156		$	3,222		$	3,158		(2)%		—%
Investment and other revenue	79			(360)			70			N/M		N/M
Total fee and other revenue	3,235			2,862			3,228			13		—
Net interest revenue	1,128			1,056			698			7		62
Total revenue	4,363			3,918			3,926			11		11
Provision for credit losses	27			20			2			N/M		N/M
Noninterest expense	3,100			3,213			3,006			(4)		3
Income before taxes	1,236			685			918			80		35
Provision for income taxes	260			142			153			83		70
Net income	$	976		$	543		$	765		80	%	28	%
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	905		$	509		$	699		78	%	29	%
Operating leverage (a)										1,487	bps	800	bps
Diluted earnings per common share (b)	$	1.12		$	0.62		$	0.86		81	%	30	%
Average common shares and equivalents outstanding - diluted (in thousands)	807,718			815,846			813,986
Pre-tax operating margin	28		%	17		%	23		%


(dollars in millions, unless otherwise noted; not meaningful - N/M)										1Q23 vs.
	1Q23			4Q22			1Q22			4Q22		1Q22
Investment services fees:
Asset Servicing	$	948		$	971		$	999		(2)	%	(5)	%
Issuer Services	236			271			141			(13)		67
Total investment services fees	1,184			1,242			1,140			(5)		4
Foreign exchange revenue	139			149			148			(7)		(6)
Other fees (a)	55			55			41			—		34
Total fee revenue	1,378			1,446			1,329			(5)		4
Investment and other revenue	72			70			74			N/M		N/M
Total fee and other revenue	1,450			1,516			1,403			(4)		3
Net interest revenue	666			656			377			2		77
Total revenue	2,116			2,172			1,780			(3)		19
Provision for credit losses	—			11			(10)			N/M		N/M
Noninterest expense	1,556			1,576			1,510			(1)		3
Income before taxes	$	560		$	585		$	280		(4)	%	100	%

Total revenue by line of business:
Asset Servicing	$	1,664		$	1,681		$	1,512		(1)	%	10	%
Issuer Services	452			491			268			(8)		69
Total revenue by line of business	$	2,116		$	2,172		$	1,780		(3)	%	19	%

Pre-tax operating margin	26		%	27		%	16		%

Securities lending revenue (b)	$	48		$	50		$	39		(4)	%	23	%

Metrics:
Average loans	$	10,939		$	11,850		$	10,150		(8)	%	8	%
Average deposits	$	167,209		$	176,541		$	192,156		(5)	%	(13)	%

AUC/A at period end (in trillions) (current period is preliminary) (c)	$	32.6		$	31.4		$	33.7		4	%	(3)	%
Market value of securities on loan at period end (in billions) (d)	$	441		$	449		$	449		(2)	%	(2)	%



(in millions)	1Q23		4Q22		1Q22
Fee revenue	$	3	$	12	$	8
Investment and other revenue	(14)		(442)		12
Total fee and other revenue	(11)		(430)		20
Net interest (expense)	(36)		(48)		(32)
Total revenue	(47)		(478)		(12)
Provision for credit losses	27		2		17
Noninterest expense	41		153		33
(Loss) before taxes	$	(115)	$	(633)	$	(62)


Capital and liquidity ratios	March 31, 2023			Dec. 31, 2022
Consolidated regulatory capital ratios: (a)
CET1 ratio	11.0		%	11.2		%
Tier 1 capital ratio	13.9			14.1
Total capital ratio	14.7			14.9
Tier 1 leverage ratio	5.8			5.8
Supplementary leverage ratio	6.9			6.8
BNY Mellon shareholders’ equity to total assets ratio	9.6		%	10.0		%
BNY Mellon common shareholders’ equity to total assets ratio	8.4		%	8.8		%

Average LCR	118		%	118		%

Book value per common share	$	45.36		$	44.40
Tangible book value per common share – Non-GAAP (b)	$	23.52		$	23.11




Common shares outstanding (in thousands)	789,134			808,445


Net interest revenue										1Q23 vs.
(dollars in millions; not meaningful - N/M)	1Q23			4Q22			1Q22			4Q22		1Q22
Net interest revenue	$	1,128		$	1,056		$	698		7%		62%
Add: Tax equivalent adjustment	—			2			3			N/M		N/M
Net interest revenue, on a fully taxable equivalent (“FTE”) basis – Non-GAAP (a)	$	1,128		$	1,058		$	701		7%		61%

Net interest margin	1.29		%	1.19		%	0.75		%	10	bps	54	bps
Net interest margin (FTE) – Non-GAAP (a)	1.29		%	1.19		%	0.76		%	10	bps	53	bps


(in millions)	Quarter ended
	March 31, 2023		Dec. 31, 2022		March 31, 2022

Fee and other revenue
Investment services fees	$	2,119	$	2,173	$	1,993
Investment management and performance fees	776		783		883
Foreign exchange revenue	176		190		207
Financing-related fees	52		43		45
Distribution and servicing fees	33		33		30
Total fee revenue	3,156		3,222		3,158
Investment and other revenue	79		(360)		70
Total fee and other revenue	3,235		2,862		3,228
Net interest revenue
Interest revenue	3,942		3,197		778
Interest expense	2,814		2,141		80
Net interest revenue	1,128		1,056		698
Total revenue	4,363		3,918		3,926
Provision for credit losses	27		20		2
Noninterest expense
Staff	1,791		1,802		1,702
Software and equipment	429		432		399
Professional, legal and other purchased services	375		415		370
Net occupancy	119		143		122
Sub-custodian and clearing	118		112		118
Distribution and servicing	85		86		79
Bank assessment charges	40		19		35
Business development	39		45		30

Amortization of intangible assets	14		16		17
Other	90		143		134
Total noninterest expense	3,100		3,213		3,006
Income
Income before taxes	1,236		685		918
Provision for income taxes	260		142		153
Net income	976		543		765
Net loss attributable to noncontrolling interests related to consolidated investment management funds	—		—		8
Net income applicable to shareholders of The Bank of New York Mellon Corporation	976		543		773
Preferred stock dividends	(71)		(34)		(74)
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	905	$	509	$	699


Earnings per share applicable to the common shareholders of The Bank of New York Mellon Corporation	Quarter ended
	March 31, 2023		Dec. 31, 2022		March 31, 2022
(in dollars)
Basic	$	1.13	$	0.63	$	0.86
Diluted	$	1.12	$	0.62	$	0.86


Reconciliation of Non-GAAP measures, excluding notable items					1Q23 vs.
(dollars in millions)	1Q23		1Q22		1Q22
Total revenue – GAAP	$	4,363	$	3,926	11	%
Impact of notable items (a)	(1)		(88)
Adjusted total revenue – Non-GAAP	$	4,364	$	4,014	9	%

Diluted earnings per common share	$	1.12	$	0.86	30	%
Impact of notable items (a)	(0.01)		(0.08)
Adjusted diluted earnings per commons share – Non-GAAP	$	1.13	$	0.94	20	%

Fee revenue – GAAP	$	3,156	$	3,158	—	%
Impact of notable items (a)	—		(88)
Adjusted fee revenue – Non-GAAP	$	3,156	$	3,246	(3)	%


The Bank of New York Mellon Corporation

Financial Supplement

First Quarter 2023


News Release


CEO Commentary


Table of Contents




Consolidated Results						Page
Consolidated Financial Highlights						3
Condensed Consolidated Income Statement						4
Condensed Consolidated Balance Sheet						5
Fee and Other Revenue						6
Average Balances and Interest Rates						7
Capital and Liquidity						8

Business Segment Results
Securities Services Business Segment						9
Market and Wealth Services Business Segment						11
Investment and Wealth Management Business Segment						13
AUM by Product Type, Changes in AUM and Wealth Management Client Assets						14
Other Segment						15

Other
Securities Portfolio						16
Allowance for Credit Losses and Nonperforming Assets						17

Supplemental Information
Explanation of GAAP and Non-GAAP Financial Measures						18


THE BANK OF NEW YORK MELLON CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(dollars in millions, except per common share amounts, or unless otherwise noted)																1Q23 vs.
	1Q23			4Q22			3Q22			2Q22			1Q22			4Q22		1Q22
Selected income statement data


Fee and other revenue	$	3,235		$	2,862		$	3,353		$	3,430		$	3,228		13	%	—	%
Net interest revenue	1,128			1,056			926			824			698			7		62
Total revenue	4,363			3,918			4,279			4,254			3,926			11		11
Provision for credit losses	27			20			(30)			47			2			N/M		N/M
Noninterest expense	3,100			3,213			3,679			3,112			3,006			(4)		3
Income before income taxes	1,236			685			630			1,095			918			80		35
Provision for income taxes	260			142			242			231			153			83		70
Net income	$	976		$	543		$	388		$	864		$	765		80	%	28	%
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	905		$	509		$	319		$	835		$	699		78	%	29	%
Diluted earnings per common share	$	1.12		$	0.62		$	0.39		$	1.03		$	0.86		81	%	30	%
Average common shares and equivalents outstanding – diluted (in thousands)	807,718			815,846			814,516			813,590			813,986			(1)	%	(1)	%

Financial ratios (Returns are annualized)
Pre-tax operating margin	28		%	17		%	15		%	26		%	23		%
Return on common equity	10.3		%	5.7		%	3.5		%	9.3		%	7.6		%
Return on tangible common equity – Non-GAAP (a)	20.2		%	11.5		%	7.5		%	19.2		%	15.4		%
Non-U.S. revenue as a percentage of total revenue	35		%	39		%	35		%	36		%	35		%

Period end
Assets under custody and/or administration (“AUC/A”) (in trillions) (b)	$	46.6		$	44.3		$	42.2		$	43.0		$	45.5		5	%	2	%
Assets under management (“AUM”) (in trillions)	$	1.91		$	1.84		$	1.78		$	1.94		$	2.27		4	%	(16)	%
Full-time employees	51,600			51,700			51,100			50,800			49,600			—	%	4	%
Book value per common share	$	45.36		$	44.40		$	43.18		$	44.73		$	45.76
Tangible book value per common share – Non-GAAP (a)	$	23.52		$	23.11		$	21.55		$	22.02		$	22.76
Cash dividends per common share	$	0.37		$	0.37		$	0.37		$	0.34		$	0.34
Common dividend payout ratio	34		%	60		%	95		%	33		%	40		%
Closing stock price per common share	$	45.44		$	45.52		$	38.52		$	41.71		$	49.63
Market capitalization	$	35,858		$	36,800		$	31,135		$	33,706		$	40,091
Common shares outstanding (in thousands)	789,134			808,445			808,280			808,103			807,798

Capital ratios at period end (c)
Common Equity Tier 1 ("CET1") ratio	11.0		%	11.2		%	10.0		%	10.0		%	10.1		%
Tier 1 capital ratio	13.9		%	14.1		%	12.8		%	12.8		%	12.9		%
Total capital ratio	14.7		%	14.9		%	13.7		%	13.6		%	13.7		%
Tier 1 leverage ratio	5.8		%	5.8		%	5.4		%	5.2		%	5.3		%
Supplementary leverage ratio ("SLR")	6.9		%	6.8		%	6.3		%	6.2		%	6.2		%
(a) Non-GAAP information, for all periods presented, excludes goodwill and intangible assets, net of deferred tax liabilities. See "Explanation of GAAP and Non-GAAP Financial Measures" beginning on page 18 for the reconciliation of Non-GAAP measures.
(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 $1.5 trillion at March 31, 2023 and Dec. 31, 2022, $1.4 trillion at Sep. 30, 2022, $1.5 trillion at June 30, 2022 and $1.7 trillion at March 31, 2022.
(c) Regulatory capital ratios for March 31, 2023 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, which for March 31, 2023 and Dec. 31, 2022 was the Advanced Approaches, for Sept. 30, 2022 was the Standardized Approach for the CET1 and Tier 1 capital ratios and the Advanced Approaches for the Total capital ratio, for June 30, 2022 was the Advanced Approaches, and for March 31, 2022 was the Standardized Approach.
N/M – Not meaningful.


THE BANK OF NEW YORK MELLON CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENT

(dollars in millions, except per share amounts; common shares in thousands)											1Q23 vs.
	1Q23		4Q22		3Q22		2Q22		1Q22		4Q22		1Q22
Revenue
Investment services fees	$	2,119	$	2,173	$	2,157	$	2,206	$	1,993	(2)	%	6	%
Investment management and performance fees	776		783		800		833		883		(1)		(12)
Foreign exchange revenue	176		190		203		222		207		(7)		(15)
Financing-related fees	52		43		43		44		45		21		16
Distribution and servicing fees	33		33		33		34		30		—		10
Total fee revenue	3,156		3,222		3,236		3,339		3,158		(2)		—
Investment and other revenue	79		(360)		117		91		70		N/M		N/M
Total fee and other revenue	3,235		2,862		3,353		3,430		3,228		13		—
Net interest revenue	1,128		1,056		926		824		698		7		62
Total revenue	4,363		3,918		4,279		4,254		3,926		11		11
Provision for credit losses	27		20		(30)		47		2		N/M		N/M
Noninterest expense
Staff	1,791		1,802		1,673		1,623		1,702		(1)		5
Software and equipment	429		432		421		405		399		(1)		8
Professional, legal and other purchased services	375		415		363		379		370		(10)		1
Net occupancy	119		143		124		125		122		(17)		(2)
Sub-custodian and clearing	118		112		124		131		118		5		—
Distribution and servicing	85		86		88		90		79		(1)		8
Bank assessment charges	40		19		35		37		35		111		14
Business development	39		45		34		43		30		(13)		30
Goodwill impairment	—		—		680		—		—		N/M		N/M
Amortization of intangible assets	14		16		17		17		17		(13)		(18)
Other	90		143		120		262		134		(37)		(33)
Total noninterest expense	3,100		3,213		3,679		3,112		3,006		(4)		3
Income before income taxes	1,236		685		630		1,095		918		80		35
Provision for income taxes	260		142		242		231		153		83		70
Net income	976		543		388		864		765		80		28
Net loss attributable to noncontrolling interests	—		—		—		5		8		N/M		N/M
Preferred stock dividends	(71)		(34)		(69)		(34)		(74)		N/M		N/M
Net income applicable to common shareholders of The Bank of New York Mellon Corporation	$	905	$	509	$	319	$	835	$	699	78	%	29	%

Average common shares and equivalents outstanding: Basic	803,340		811,669		811,304		810,903		809,469		(1)	%	(1)	%
Diluted	807,718		815,846		814,516		813,590		813,986		(1)	%	(1)	%

Earnings per common share: Basic	$	1.13	$	0.63	$	0.39	$	1.03	$	0.86	79	%	31	%
Diluted	$	1.12	$	0.62	$	0.39	$	1.03	$	0.86	81	%	30	%
N/M – Not meaningful.


THE BANK OF NEW YORK MELLON CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET

	2023		2022
(in millions)	March 31		Dec. 31		Sept. 30		June 30		March 31
Assets
Cash and due from banks	$	5,564	$	5,030	$	4,707	$	5,185	$	6,143
Interest-bearing deposits with the Federal Reserve and other central banks	117,042		91,655		107,427		125,372		135,691
Interest-bearing deposits with banks	15,114		17,169		13,890		16,639		18,268
Federal funds sold and securities purchased under resale agreements	26,894		24,298		23,483		22,940		27,131
Securities	138,678		142,816		144,181		150,844		153,396
Trading assets	9,024		9,908		12,650		10,759		14,703
Loans	62,323		66,063		69,829		69,347		68,052
Allowance for loan losses	(170)		(176)		(164)		(181)		(171)
Net loans	62,153		65,887		69,665		69,166		67,881
Premises and equipment	3,248		3,256		3,311		3,354		3,359
Accrued interest receivable	978		858		723		548		467
Goodwill	16,192		16,150		16,412		17,271		17,462
Intangible assets	2,890		2,901		2,902		2,934		2,968
Other assets	27,335		25,855		28,602		27,609		26,342
Total assets	$	425,112	$	405,783	$	427,953	$	452,621	$	473,811
Liabilities
Deposits	$	281,294	$	278,970	$	301,989	$	325,813	$	345,565
Federal funds purchased and securities sold under repurchase agreements	26,540		12,335		11,339		11,434		13,181
Trading liabilities	5,705		5,385		7,494		5,595		5,587
Payables to customers and broker-dealers	22,598		23,435		23,741		25,769		26,608

Other borrowed funds	2,538		397		357		520		312
Accrued taxes and other expenses	4,732		5,410		5,316		5,011		4,534
Other liabilities	10,414		8,543		10,001		9,724		10,626
Long-term debt	30,489		30,458		27,820		27,610		25,246
Total liabilities	384,310		364,933		388,057		411,476		431,659
Temporary equity
Redeemable noncontrolling interests	96		109		152		154		155
Permanent equity
Preferred stock	4,838		4,838		4,838		4,838		4,838
Common stock	14		14		14		14		14
Additional paid-in capital	28,650		28,508		28,374		28,316		28,258
Retained earnings	38,465		37,864		37,660		37,644		37,088
Accumulated other comprehensive loss, net of tax	(5,543)		(5,966)		(6,627)		(5,307)		(3,881)
Less: Treasury stock, at cost	(25,790)		(24,524)		(24,522)		(24,521)		(24,518)
Total The Bank of New York Mellon Corporation shareholders’ equity	40,634		40,734		39,737		40,984		41,799
Nonredeemable noncontrolling interests of consolidated investment management funds	72		7		7		7		198
Total permanent equity	40,706		40,741		39,744		40,991		41,997
Total liabilities, temporary equity and permanent equity	$	425,112	$	405,783	$	427,953	$	452,621	$	473,811


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

BNY Mellon has included in this Financial Supplement certain Non-GAAP financial measures on a tangible basis as a supplement to GAAP information, which exclude goodwill and intangible assets, net of deferred tax liabilities. We believe that the return on tangible common equity – Non-GAAP is additional useful information for investors because it presents a measure of those assets that can generate income, and the tangible book value per common share – Non-GAAP is additional useful information because it presents the level of tangible assets in relation to shares of common stock outstanding.

Net interest revenue, on a fully taxable equivalent ("FTE") basis – Non-GAAP and net interest margin (FTE) – Non-GAAP and other FTE measures include the tax equivalent adjustments on tax-exempt income which allows for the comparison 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.

BNY Mellon has also included 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 segment relative to industry competitors.

The presentation of the growth rates of investment management and performance fees 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. We believe 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.

Notes:


Quarterly return on common and tangible common equity ratios are annualized.



Return on common equity and tangible common equity reconciliation
(dollars in millions)	1Q23			4Q22			3Q22			2Q22			1Q22
Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP	$	905		$	509		$	319		$	835		$	699
Add: Amortization of intangible assets	14			16			17			17			17
Less: Tax impact of amortization of intangible assets	3			4			4			4			4
Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, excluding amortization of intangible assets – Non-GAAP	$	916		$	521		$	332		$	848		$	712

Average common shareholders’ equity	$	35,604		$	35,259		$	35,942		$	36,199		$	37,363
Less: Average goodwill	16,160			16,229			17,189			17,347			17,490
Average intangible assets	2,899			2,905			2,922			2,949			2,979
Add: Deferred tax liability – tax deductible goodwill	1,187			1,181			1,175			1,187			1,184
Deferred tax liability – intangible assets	660			660			660			668			673
Average tangible common shareholders’ equity – Non-GAAP	$	18,392		$	17,966		$	17,666		$	17,758		$	18,751

Return on common equity – GAAP	10.3		%	5.7		%	3.5		%	9.3		%	7.6		%
Return on tangible common equity – Non-GAAP	20.2		%	11.5		%	7.5		%	19.2		%	15.4		%


THE BANK OF NEW YORK MELLON CORPORATION
EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES
Book value and tangible book value per common share reconciliation	2023			2022
(dollars in millions, except common shares and unless otherwise noted)	March 31			Dec. 31			Sept. 30			June 30			March 31
BNY Mellon shareholders’ equity at period end – GAAP	$	40,634		$	40,734		$	39,737		$	40,984		$	41,799
Less: Preferred stock	4,838			4,838			4,838			4,838			4,838
BNY Mellon common shareholders’ equity at period end – GAAP	35,796			35,896			34,899			36,146			36,961
Less: Goodwill	16,192			16,150			16,412			17,271			17,462
Intangible assets	2,890			2,901			2,902			2,934			2,968
Add: Deferred tax liability – tax deductible goodwill	1,187			1,181			1,175			1,187			1,184
Deferred tax liability – intangible assets	660			660			660			668			673
BNY Mellon tangible common shareholders’ equity at period end – Non-GAAP	$	18,561		$	18,686		$	17,420		$	17,796		$	18,388

Period-end common shares outstanding (in thousands)	789,134			808,445			808,280			808,103			807,798

Book value per common share – GAAP	$	45.36		$	44.40		$	43.18		$	44.73		$	45.76
Tangible book value per common share – Non-GAAP	$	23.52		$	23.11		$	21.55		$	22.02		$	22.76



Net interest margin reconciliation
(dollars in millions)	1Q23			4Q22			3Q22			2Q22			1Q22
Net interest revenue – GAAP	$	1,128		$	1,056		$	926		$	824		$	698
Add: Tax equivalent adjustment	—			2			3			3			3
Net interest revenue (FTE) – Non-GAAP	$	1,128		$	1,058		$	929		$	827		$	701

Average interest-earning assets	$	348,378		$	352,987		$	352,062		$	370,782		$	373,186

Net interest margin – GAAP (a)	1.29		%	1.19		%	1.05		%	0.89		%	0.75		%
Net interest margin (FTE) – Non-GAAP (a)	1.29		%	1.19		%	1.05		%	0.89		%	0.76		%
(a) Net interest margin is annualized.


THE BANK OF NEW YORK MELLON CORPORATION
EXPLANATION OF GAAP AND NON-GAAP FINANCIAL MEASURES
Pre-tax operating margin reconciliation - Investment and Wealth Management business segment
(dollars in millions)	1Q23			4Q22			3Q22			2Q22			1Q22
Income (loss) before income taxes – GAAP	$	93		$	125		$	(497)		$	208		$	212

Total revenue – GAAP	$	827		$	825		$	862		$	899		$	964
Less: Distribution and servicing expense	86			87			88			91			79
Adjusted total revenue, net of distribution and servicing expense – Non-GAAP	$	741		$	738		$	774		$	808		$	885

Pre-tax operating margin – GAAP (a)	11		%	15		%	(57)		%	23		%	22		%
Adjusted pre-tax operating margin, net of distribution and servicing expense – Non-GAAP (a)	13		%	17		%	(64)		%	26		%	24		%
(a) Income before income taxes divided by total revenue.



Constant currency reconciliations							1Q23 vs.
(dollars in millions)	1Q23			1Q22			1Q22
Consolidated:
Investment management and performance fees – GAAP	$	776		$	883		(12)		%
Impact of changes in foreign currency exchange rates	—			(28)
Adjusted investment management and performance fees – Non-GAAP	$	776		$	855		(9)		%


Investment and Wealth Management business segment:
Investment management and performance fees – GAAP	$	774		$	882		(12)		%
Impact of changes in foreign currency exchange rates	—			(28)
Adjusted investment management and performance fees – Non-GAAP	$	774		$	854		(9)		%