Earnings Per Common Share of $1.54, or $1.72 as Adjusted (a)

Full-Year 2024 Earnings Per Common Share of $5.80, or $6.03 as Adjusted (a)

NEW YORK, January 15, 2025 – The Bank of New York Mellon Corporation (“BNY”) (NYSE: BK) today has reported financial results for the fourth quarter of 2024.

(b)    See “Explanation of GAAP and Non-GAAP financial measures” beginning on page 11 for additional information.

KEY DRIVERS (comparisons are 4Q24 vs. 4Q23, unless otherwise noted)

•Total revenue increased 11%, primarily reflecting:

•Fee revenue increased 9%, primarily reflecting higher market values and client activity, net new business and higher foreign exchange revenue.

•Investment and other revenue increased primarily reflecting a 4Q23 reduction in the fair value of a contingent consideration receivable, partially offset by strategic equity investment gains recorded in 4Q23.

•Net interest income increased 8%, primarily reflecting higher investment securities portfolio yields and balance sheet growth, partially offset by changes in deposit mix.

•Provision for credit losses was $20 million, primarily driven by reserve increases related to commercial real estate exposure.

•Noninterest expense decreased 16% primarily reflecting the net impact of adjustments for the FDIC special assessment, efficiency savings and lower severance expense, partially offset by higher revenue-related expenses, employee merit increases and investments. Excluding notable items, noninterest expense increased 2% (a).

•Effective tax rate of 21.4%.

•AUC/A increased 9%, primarily reflecting higher market values, client inflows and net new business, partially offset by the unfavorable impact of a stronger U.S. dollar.

•AUM increased 3%, primarily reflecting higher market values, partially offset by unfavorable impact of a stronger U.S. dollar.

•$349 million of dividends to common shareholders (b); $750 million of common share repurchases.

•Return on common equity (“ROE”) – 12.2%; Adjusted ROE – 13.6% (a).

•Return on tangible common equity (“ROTCE”) – 23.3% (a); Adjusted ROTCE - 26.1% (a).

•Common Equity Tier 1 (“CET1”) ratio – 11.2%.

•Tier 1 leverage ratio – 5.7%.

•Average liquidity coverage ratio (“LCR”) – 115%; Average net stable funding ratio (“NSFR”) – 132%.

•Total Loss Absorbing Capacity (“TLAC”) ratios exceed minimum requirements.

(a)    See “Explanation of GAAP and Non-GAAP financial measures” beginning on page 11 for additional information.

(b)    See “Explanation of GAAP and Non-GAAP financial measures” beginning on page 11.

KEY DRIVERS (comparisons are 2024 vs. 2023, unless otherwise noted)

•Total revenue increased 5%, primarily reflecting:

•Fee revenue increased 6%, primarily reflecting higher market values, net new business and higher client activity and foreign exchange revenue, partially offset by the mix of AUM flows.

•Investment and other revenue increased primarily reflecting the 4Q23 reduction in the fair value of a contingent consideration receivable and higher client activity in our fixed income and equity trading business.

•Net interest income decreased 1%, primarily reflecting changes in deposit mix, partially offset by higher investment securities portfolio yields and balance sheet growth.

•Provision for credit losses was $70 million, primarily driven by reserve increases related to commercial real estate exposure and changes in the macroeconomic forecast.

•Noninterest expense decreased 4%, primarily reflecting the net impact of adjustments for the FDIC special assessment and efficiency savings, partially offset by higher investments, employee merit increases and revenue-related expenses. Excluding notable items, noninterest expense increased 1% (a).

•Effective tax rate of 22.3%.

•Returned $4.4 billion to common shareholders, including dividends of $1.3 billion (including dividend equivalents on share-based awards) and $3.1 billion of share repurchases.

•ROE – 11.9%; Adjusted ROE – 12.4% (a).

•ROTCE – 22.8% (a); Adjusted ROTCE – 23.8% (a).

(a)    See “Explanation of GAAP and Non-GAAP financial measures” beginning on page 11 for additional information.

(c)    Consists of AUC/A primarily from the Asset Servicing line of business and, to a lesser extent, the Issuer Services line of business. Includes the AUC/A of CIBC Mellon Global Securities Services Company (“CIBC Mellon”), a joint venture with the Canadian Imperial Bank of Commerce, of $1.8 trillion at Dec. 31, 2024, $1.9 trillion at Sept. 30, 2024 and $1.7 trillion at Dec. 31, 2023.

(d)    Represents the total amount of securities on loan in our agency securities lending program. Excludes securities for which BNY acts as agent on behalf of CIBC Mellon clients, which totaled $60 billion at Dec. 31, 2024, $67 billion at Sept. 30, 2024 and $63 billion at Dec. 31, 2023.

•The drivers of the total revenue variances by line of business are indicated below.

•Asset Servicing – The year-over-year increase primarily reflects higher net interest income, foreign exchange revenue, market values, client activity and net new business, partially offset by a strategic equity investment gain recorded in 4Q23. The sequential increase primarily reflects higher net interest income, client activity and foreign exchange revenue.

•Issuer Services – The year-over-year increase reflects higher Corporate Trust fees, partially offset by lower Depositary Receipts revenue. The sequential increase primarily reflects higher net interest income and Depositary Receipts revenue.

•Noninterest expense increased year-over-year primarily reflecting higher litigation reserves, employee merit increases and higher investments, partially offset by efficiency savings. The sequential increase primarily reflects higher litigation reserves, investments and revenue-related expenses, partially offset by efficiency savings.

•The drivers of the total revenue variances by line of business are indicated below.

•Pershing – The year-over-year increase primarily reflects higher market values and client activity, partially offset by lower net interest income. The sequential increase primarily reflects higher client activity and net interest income.

•Treasury Services – The year-over-year increase primarily reflects higher net interest income and net new business. The sequential increase primarily reflects higher net interest income.

•Clearance and Collateral Management – The year-over-year increase primarily reflects higher net interest income, collateral management fees and clearance volumes. The sequential increase primarily reflects higher net interest income and collateral management fees.

•Noninterest expense increased year-over-year primarily reflecting higher revenue-related expenses, investments and employee merit increases, partially offset by efficiency savings and lower litigation reserves. The sequential increase primarily reflects higher investments and severance expense, partially offset by efficiency savings.

(c)    Excluding notable items, income before taxes increased 24% (Non-GAAP) compared with 4Q23. See “Explanation of GAAP and Non-GAAP financial measures” beginning on page 11 for information on this Non-GAAP measure.

(d)    Net of distribution and servicing expense. See “Explanation of GAAP and Non-GAAP financial measures” beginning on page 11 for information on this Non-GAAP measure.

(e)    Excluding notable items and net of distribution and servicing expense, the adjusted pre-tax operating margin was 21% (Non-GAAP) for 4Q23. See “Explanation of GAAP and Non-GAAP financial measures” beginning on page 11 for information on this Non-GAAP measure.

•The drivers of the total revenue variances by line of business are indicated below.

•Investment Management – The year-over-year increase primarily reflects the 4Q23 reduction in the fair value of a contingent consideration receivable and higher market values, partially offset by the mix of AUM flows. The sequential increase primarily reflects higher market values and equity investment income, and the timing of performance fees, partially offset by the mix of AUM flows.

•Wealth Management – The year-over-year increase primarily reflects higher market values and net interest income, partially offset by changes in product mix. The sequential increase primarily reflects higher net interest income.

•Noninterest expense increased year-over-year primarily reflecting higher revenue-related expenses and employee merit increases, partially offset by efficiency savings. The sequential increase primarily reflects higher revenue-related and severance expenses.

The Other segment primarily includes the leasing portfolio, corporate treasury activities, including our securities portfolio, derivatives and other trading activity, renewable energy and other corporate investments, certain business exits and other corporate revenue and expense items.

•Total revenue includes corporate treasury and other investment activity, including hedging activity which has an offsetting impact between fee and other revenue and net interest expense. The year-over-year decrease primarily reflects strategic equity investment gains recorded in 4Q23. The sequential decrease primarily reflects higher net losses on sales of securities and gains on real estate and other investments recorded in 3Q24.

•Noninterest expense decreased year-over-year primarily driven by adjustments for the FDIC special assessment recorded in 4Q23. The sequential increase primarily reflects higher severance expense and the impact of the adjustments to the FDIC special assessment.

(a)    See pages 11 and 12 for details of notable items and line items impacted.

(a)    See pages 11 and 12 for details of notable items and line items impacted.

(a)    See pages 11 and 13 for details of notable items and line items impacted.

(b)    Tangible book value per common share – Non-GAAP excludes goodwill and intangible assets, net of deferred tax liabilities. See “Explanation of GAAP and Non-GAAP financial measures” beginning on page 11 for information on this Non-GAAP measure.

•CET1 capital totaled $18.8 billion and Tier 1 capital totaled $23.0 billion at Dec. 31, 2024, both decreasing compared with Sept. 30, 2024, primarily reflecting a decline in accumulated other comprehensive income and capital returned through common stock repurchases and dividends, partially offset by capital generated through earnings. The CET1 ratio decreased compared with Sept. 30, 2024 reflecting the decrease in capital and higher risk-weighted assets. The Tier 1 leverage ratio decreased compared with Sept. 30, 2024 reflecting the decrease in capital and higher average assets.

(a)    Net interest income (FTE) – Non-GAAP and net interest margin (FTE) – Non-GAAP include the tax equivalent adjustments on tax-exempt income. See “Explanation of GAAP and Non-GAAP financial measures” beginning on page 11 for information on this Non-GAAP measure.

•Net interest income increased year-over-year primarily reflecting higher investment securities portfolio yields and balance sheet growth, partially offset by changes in deposit mix.

•The sequential increase in net interest income primarily reflects the reinvestment of maturing investment securities at higher yields, partially offset by deposit margin compression.

BNY has included in this Earnings Release 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 income, 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 has 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.

See “Explanation of GAAP and Non-GAAP Financial Measures” in the Financial Supplement available at www.bny.com for additional reconciliations of Non-GAAP measures.

BNY has also included revenue measures excluding notable items, including the reduction in the fair value of a contingent consideration receivable and disposal gains. Expense measures, excluding notable items, including severance expense, litigation reserves and the FDIC special assessment, are also presented. Litigation reserves represent accruals for loss contingencies that are both probable and reasonably estimable, but exclude standard business-related legal fees. Net income applicable to common shareholders of The Bank of New York Mellon Corporation, diluted earnings per share, operating leverage, return on common equity, return on tangible common equity and pre-tax operating margin, excluding the notable items mentioned above, are also provided. These measures are provided to permit investors to view the financial measures on a basis consistent with how management views the businesses.

(a)    See pages 11-13 for details of notable items and line items impacted.

(a)    See pages 11-13 for details of notable items and line items impacted.

A number of statements in this Earnings Release and in our Financial Supplement may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about our strategic priorities, financial performance and financial targets. Preliminary business metrics and regulatory capital ratios are subject to change, possibly materially, as we complete our Annual Report on Form 10-K for the year ended Dec. 31, 2024. Forward-looking statements are not guarantees of future results or occurrences, are inherently uncertain and are based upon current beliefs and expectations of future events, many of which are, by their nature, difficult to predict, outside of our control and subject to change.

By identifying these statements for you in this manner, we are alerting you to the possibility that our actual results may differ, possibly materially, from the anticipated results expressed or implied in these forward-looking statements as a result of a number of important factors, including the risk factors and other uncertainties set forth in our Annual Report on Form 10-K for the year ended Dec. 31, 2023 and our other filings with the Securities and Exchange Commission.

You should not place undue reliance on any forward-looking statement. All forward-looking statements speak only as of the date on which they were made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events.

BNY is a global financial services company that helps make money work for the world – managing it, moving it and keeping it safe. For 240 years BNY has partnered alongside clients, putting its expertise and platforms to work to help them achieve their ambitions. Today BNY helps over 90% of Fortune 100 companies and nearly all the top 100 banks globally to access the money they need. BNY supports governments in funding local projects and works with over 90% of the top 100 pension plans to safeguard investments for millions of individuals, and so much more. As of Dec. 31, 2024, BNY oversees $52.1 trillion in assets under custody and/or administration and $2.0 trillion in assets under management.

BNY is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Headquartered in New York City, BNY employs over 50,000 people globally and has been named among Fortune’s World’s Most Admired Companies and Fast Company’s Best Workplaces for Innovators. Additional information is available on www.bny.com. Follow on LinkedIn or visit the BNY Newsroom for the latest company news.

Robin Vince, President and Chief Executive Officer, and Dermot McDonogh, Chief Financial Officer, will host a conference call and simultaneous live audio webcast at 12:00 p.m. ET on Jan. 15, 2025. This conference call and audio webcast will include forward-looking statements and may include other material information.

Investors and analysts wishing to access the conference call and audio webcast may do so by dialing (800) 390-5696 (U.S.) or (720) 452-9082 (International), and using the passcode: 200200, or by logging onto www.bny.com/investorrelations. Earnings materials will be available at www.bny.com/investorrelations beginning at approximately 6:30 a.m. ET on Jan. 15, 2025.

An archived version of the fourth quarter conference call and audio webcast will be available beginning on Jan. 15, 2025 at approximately 4:00 p.m. ET through Feb. 14, 2025 at www.bny.com/investorrelations.