Bank of New York Mellon Corp [BK] Filings

10-Q 1 bk-20240630.htm FORM 10-Q bk-20240630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended June 30, 2024

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number 001-35651

THE BANK OF NEW YORK MELLON CORPORATION

(Exact name of registrant as specified in its charter)


Delaware			13-2614959
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

240 Greenwich Street

New York, New York 10286

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code – (212) 495-1784

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)


Securities registered pursuant to Section 12(b) of the Act:
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)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of June 30, 2024, 737,957,499 shares of the registrant’s common stock, $0.01 par value per share, were outstanding.

THE BANK OF NEW YORK MELLON CORPORATION

Second Quarter 2024 Form 10-Q

Table of Contents


			Page
Consolidated Financial Highlights (unaudited)			2

Part I – Financial Information
Items 2. and 3. Management’s Discussion and Analysis of Financial Condition and Results of Operations; Quantitative and Qualitative Disclosures about Market Risk:
General			4
Overview			4
Key second quarter 2024 and subsequent events			4
Highlights of second quarter 2024 results			4
Fee and other revenue			6
Net interest income			9
Noninterest expense			12
Income taxes			12
Review of business segments			12
Critical accounting estimates			22
Consolidated balance sheet review			23
Liquidity and dividends			31
Capital			36
Trading activities and risk management			39
Asset/liability management			41
Supplemental information – Explanation of GAAP and Non-GAAP financial measures			43
Recent accounting and regulatory developments			47
Website information			48

Item 1. Financial Statements:
Consolidated Income Statement (unaudited)			49
Consolidated Comprehensive Income Statement (unaudited)			51
Consolidated Balance Sheet (unaudited)			52
Consolidated Statement of Cash Flows (unaudited)			53
Consolidated Statement of Changes in Equity (unaudited)			54


			Page
Notes to Consolidated Financial Statements:
Note 1—Basis of presentation			57
Note 2—New accounting guidance			57
Note 3—Acquisitions and dispositions			58
Note 4—Securities			59
Note 5—Loans and asset quality			63

Note 6—Goodwill and intangible assets			70
Note 7—Other assets			72
Note 8—Contract revenue			73
Note 9—Net interest income			76
Note 10—Employee benefit plans			76
Note 11—Income taxes			77
Note 12—Variable interest entities			77
Note 13—Preferred stock			78
Note 14—Other comprehensive income (loss)			79
Note 15—Fair value measurement			80
Note 16—Fair value option			85
Note 17—Derivative instruments			85
Note 18—Commitments and contingent liabilities			92
Note 19—Business segments			97
Note 20—Supplemental information to the Consolidated Statement of Cash Flows			100

Item 4. Controls and Procedures			101
Forward-looking Statements			102

Part II – Other Information
Item 1. Legal Proceedings.			105

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.			105
Item 5. Other Information.			105
Item 6. Exhibits.			105

Index to Exhibits			106
Signature			108

The Bank of New York Mellon Corporation (and its subsidiaries)

Consolidated Financial Highlights (unaudited)


	Quarter ended									Year-to-date
(dollars in millions, except per share amounts and unless otherwise noted)	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023
Results applicable to common shareholders of The Bank of New York Mellon Corporation:
Net income (a)	$	1,143		$	953		$	1,036		$	2,096		$	1,947
Basic earnings per share (a)	$	1.53		$	1.26		$	1.32		$	2.79		$	2.45
Diluted earnings per share (a)	$	1.52		$	1.25		$	1.31		$	2.77		$	2.44

Fee and other revenue (a)	$	3,567		$	3,487		$	3,404		$	7,054		$	6,691
Net interest income	1,030			1,040			1,100			2,070			2,228
Total revenue (a)	$	4,597		$	4,527		$	4,504		$	9,124		$	8,919

Return on common equity (annualized) (a)	12.7		%	10.7		%	11.7		%	11.7		%	11.0		%
Return on tangible common equity (annualized) – Non-GAAP (a)(b)	24.6		%	20.7		%	22.8		%	22.7		%	21.7		%

Fee revenue as a percentage of total revenue (a)	74		%	73		%	72		%	73		%	72		%

Non-U.S. revenue as a percentage of total revenue (a)	36		%	34		%	36		%	35		%	35		%

Pre-tax operating margin (a)	33		%	29		%	31		%	31		%	30		%

Net interest margin	1.15		%	1.19		%	1.20		%	1.17		%	1.25		%
Net interest margin on a fully taxable equivalent (“FTE”) basis – Non-GAAP (c)	1.15		%	1.19		%	1.20		%	1.17		%	1.25		%

Assets under custody and/or administration (“AUC/A”) at period end (in trillions) (d)	$	49.5		$	48.8		$	46.9		$	49.5		$	46.9
Assets under management (“AUM”) at period end (in trillions) (e)	$	2.05		$	2.02		$	1.91		$	2.05		$	1.91

Average common shares and equivalents outstanding (in thousands):
Basic	746,904			756,937			787,718			751,961			795,512
Diluted	751,596			762,268			790,725			756,870			799,157

Selected average balances:
Interest-earning assets	$	353,633		$	346,133		$	362,049		$	349,883		$	355,251
Total assets (a)	$	412,499		$	403,985		$	420,961		$	408,242		$	414,157
Interest-bearing deposits	$	235,878		$	228,897		$	215,057		$	232,387		$	209,616
Noninterest-bearing deposits	$	48,965		$	49,949		$	62,152		$	49,457		$	65,997
Long-term debt	$	31,506		$	31,087		$	31,970		$	31,296		$	31,112
Preferred stock	$	4,343		$	4,343		$	4,838		$	4,343		$	4,838
Total The Bank of New York Mellon Corporation common shareholders’ equity (a)	$	36,044		$	35,905		$	35,655		$	35,975		$	35,569

Other information at period end:
Cash dividends per common share	$	0.42		$	0.42		$	0.37		$	0.84		$	0.74
Common dividend payout ratio (a)	28		%	34		%	29		%	31		%	31		%
Common dividend yield (annualized)	2.8		%	2.9		%	3.3		%	2.8		%	3.4		%
Closing stock price per common share	$	59.89		$	57.62		$	44.52		$	59.89		$	44.52
Market capitalization	$	44,196		$	43,089		$	34,671		$	44,196		$	34,671
Book value per common share (a)	$	49.46		$	48.44		$	46.21		$	49.46		$	46.21
Tangible book value per common share – Non-GAAP (a)(b)	$	26.19		$	25.44

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