UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) – September 9, 2014

 

 

THE BANK OF NEW YORK MELLON CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-35651   13-2614959

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

 

One Wall Street

New York, New York

  10286
(Address of principal executive offices)   (Zip code)

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

N/A

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


ITEM 7.01. REGULATION FD DISCLOSURE.

On Tuesday, September 9, 2014, at approximately 9:45 a.m. (EDT), Gerald L. Hassell, Chairman and Chief Executive Officer of The Bank of New York Mellon Corporation (the “Company”) is scheduled to present at the Barclays Global Financial Services Conference in New York. A copy of the slides that will be presented at the conference is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information in this Item 7.01, and in Exhibit 99.1 attached to this Current Report on Form 8-K, is being “furnished” pursuant to General Instruction B.2. of Form 8-K and is not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities under that Section, and shall not be incorporated by reference into any filings the Company has made or may make under the Securities Act of 1933 or Exchange Act, except as otherwise expressly stated in such filing.

 

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

(d) EXHIBITS.

 

Exhibit
Number

  

Description

99.1    Slides for the Barclays Conference on September 9, 2014

 

2


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

     

The Bank of New York Mellon Corporation

(Registrant)

Date:   September 9, 2014     By:  

/s/ Craig T. Beazer

      Name:   Craig T. Beazer
      Title:   Assistant Secretary

 

3


EXHIBIT INDEX

 

Number

  

Description

  

Method of Filing

 
99.1    Slides for the Barclays Conference on September 9, 2014      Furnished herewith   

 

4


EX-99.1
POWERING GLOBAL INVESTMENTS
September 9, 2014
Barclays Global Financial Services Conference 2014
Gerald Hassell
Chairman and Chief Executive Officer
Exhibit 99.1


Barclays Global Financial Services Conference 2014
Cautionary Statement
A
number
of
statements
in
our
presentations,
the
accompanying
slides
and
the
responses
to
your
questions
are
“forward-looking
statements.”
These
statements
relate
to,
among
other
things,
The
Bank
of
New
York
Mellon
Corporation’s
(the
“Corporation”)
expectations
regarding:
continued
growth
in
investment
management
and
investment
services
fees;
abatement
of
net
maturities
in
corporate
trust;
high
revenue
margin
fees;
relative
operating
margin
improvement;
upside
to
higher
short-term
interest
rates;
capital
plans
and
position;
the
benefits
of
a
combined
investment
management
and
investment
services
and
long-term
growth
potential;
run
rate
savings
of
continuous
process
improvements;
gain
and
savings
associated
with
the
sale
of
One
Wall
Street;
client
technology
solutions
and
business
excellence
plans;
positioning
for
earnings
growth
and
outperformance;
commitment
to
expense
reduction;
compliance
with
regulatory
requirements;
and
financial
flexibility;
and
statements
regarding
the
Corporation’s
aspirations,
as
well
as
the
Corporation’s
overall
plans,
strategies,
goals,
objectives,
expectations,
estimates,
intentions,
targets,
opportunities
and
initiatives.
These
forward-looking
statements
are
based
on
assumptions
that
involve
risks
and
uncertainties
and
that
are
subject
to
change
based
on
various
important
factors
(some
of
which
are
beyond
the
Corporation’s
control).
Actual
results
may
differ
materially
from
those
expressed
or
implied
as
a
result
of
the
factors
described
under
“Forward
Looking
Statements”
and
“Risk
Factors”
in
the
Corporation’s
Annual
Report
on
Form
10-K
for
the
year
ended
December
31,
2013
(the
“2013
Annual
Report”),
and
in
other
filings
of
the
Corporation
with
the
Securities
and
Exchange
Commission
(the
“SEC”).
Such
forward-looking
statements
speak
only
as
of
September
9,
2014,
and
the
Corporation
undertakes
no
obligation
to
update
any
forward-looking
statement
to
reflect
events
or
circumstances
after
that
date
or
to
reflect
the
occurrence
of
unanticipated
events.
Non-GAAP
Measures:
In
this
presentation
we
may
discuss
some
non-GAAP
adjusted
measures
in
detailing
the
Corporation’s
performance.
We
believe
these
measures
are
useful
to
the
investment
community
in
analyzing
the
financial
results
and
trends
of
ongoing
operations.
We
believe
they
facilitate
comparisons
with
prior
periods
and
reflect
the
principal
basis
on
which
our
management
monitors
financial
performance.
Additional
disclosures
relating
to
non-GAAP
adjusted
measures
are
contained
in
the
Corporation’s
reports
filed
with
the
SEC,
including
the
2013
Annual
Report
and
our
Quarterly
Report
on
Form
10-Q
for
the
quarter
ended
June
30,
2014,
available
at
www.bnymellon.com/investorrelations.
1


Barclays Global Financial Services Conference 2014
Twin Engines of Growth
Investment Services
Investment Management
Largest global custodian with $28.5T in AUC/A
$1.6T
in
AUM
--
one
of
three
largest
Asset
Managers
owned
by
the
eight
U.S.
G-SIB
peers
Annuity Fee Revenue Stream
Fee revenue –
79% of total revenue
Growth
with
minimal
credit
risk
or
need
for
incremental
capital
Continuous Process of Expense Management
Staffing,
real
estate
footprint,
technology,
procurement
and corporate
services
High Payout while maintaining Strong Capital / High Ratings
Estimated Basel III Common Equity Tier 1 Ratio of 10%¹
Credit ratings ranked among highest in G-SIB peer group
2013
total
payout
ratio
of
83%
--
top
quartile
versus
CCAR
Banks
Positioned for earnings growth
Investing in organic growth
Continuing to aggressively manage costs
Poised to benefit as markets return to normal conditions
Investments Company for the World
Strategically Well Positioned for Outperformance
2
1
Fully
phased-in
advanced
approach at June 30, 2014.
This
represents
a
Non-GAAP
measure.
See
Appendix
for
reconciliation.
Additional
disclosure
regarding
this
measure
and
other
Non-GAAP
adjusted
measures
is
available
in
the
Corporation’s
reports
filed
with
the
SEC,
available
at
www.bnymellon.com.


Barclays Global Financial Services Conference 2014
The Investments Company for the World
Expertise Across the Investment Lifecycle
3
NOTE:  See additional disclosures in Appendix.


Barclays Global Financial Services Conference 2014
The Investments Company for the World
Global Market Leadership
Corporate
Trust
#1 Global corporate trust service provider
Treasury
Services
Top 5 in U.S.D. payments
Global Markets
Client-driven trading
Global Collateral
Services
Leveraging the breadth of Investment Services
* Consolidated revenue and pretax income include the Other segment. 
LTM =Last twelve months
Pretax
income
for
Investment
Services
and
Investment
Management
exclude
amortization
of
intangible
assets.
See
Appendix
for
revenue
and
pretax
income
reconciliation. 
Rankings
reflect
BNY
Mellon’s
size
in
the
markets
in
which
it
operates
and
are
based
on
internal
data
as
well
as
BNY
Mellon’s
knowledge
of
those
markets.
See
Appendix
for
additional
details
regarding
these
rankings.
Asset Servicing
Largest global custodian ranked by Assets
Under Custody / Administration
Alternative
Investment Services
#3 fund administrator
Broker-Dealer
Services
#1 (U.S.), growing globally
Pershing
#1 clearing firm U.S., U.K., Ireland, Australia
Depositary
Receipts
#1 in market share (~60%)
Asset
Management
Top 10 global asset manager
Consolidated
Revenue
of
~$14.8B
and
Pretax
Income
of
~$3.5B
LTM
6/30/14*
Investment Management
(46% non-U.S. revenue)
Investment Services
(36% non-U.S. revenue)
Wealth
Management
#7 U.S. wealth manager
Revenue: ~$10.0B
Pretax Income: ~$2.8B
Revenue: ~$4.0B
Pretax Income: ~$1.0B
4


Barclays Global Financial Services Conference 2014
Continued Fee Income Growth
5
Performance Drivers*
AUM, +40%
Performance Drivers*
Higher core Asset Servicing, Clearing Services and Treasury
Services fees:
1 Investment Management fees are Non-GAAP adjusted: excludes the impact of money market fee waivers.
2
Investment
Services
fees
are
Non-GAAP
adjusted:
excludes
Issuer
Services,
Securities
Lending
fees
and
the
impact
of
money
market
fee
waivers.
See
Appendix
for
reconciliation.
Additional
disclosure
regarding
these measures
and
other
Non-GAAP
adjusted
measures
is
available
in
the
Corporation’s
reports
filed
with
the
SEC,
available
at
www.bnymellon.com.
Net AUM inflows of $188B
Higher market values
AUC/A, + 18%
Continued new AUC/A wins
Growth in Global Collateral Services
Average long-term mutual funds assets,
+80%; global DARTs volume, +13%
Higher market values
Higher payment volumes
* Growth rates reflect growth between 12/31/10 and 6/30/14.


Barclays Global Financial Services Conference 2014
Although the Macro Environment Has Been Challenging…
6
Performance Drivers
1
High-margin revenue share represents high-margin revenue as a percentage of GAAP revenue, adjusted for one-time items.  High-margin revenue is Non-GAAP adjusted and consists of foreign
exchange revenue & other trading, net interest revenue, performance fees, securities lending fees, investment & other income, issuer services fees, net securities gains/losses, and adjusted for
one-time items. See Appendix for reconciliation.
Additional
disclosure
regarding
this
measure
and
other
Non-GAAP
adjusted
measures
is
available
in
the
Corporation’s
reports
filed
with
the
SEC,
available
at
www.bnymellon.com.
Lower Corporate Trust fees
Decline of structured debt markets
Continued maturities of high value
structured debt securitizations
Net maturities impact expected to abate in
15 to 21 months
Issuer Services
Net Interest Revenue and Money Market Fee Waivers
Impacted by market rates and narrower spreads
(NIR)
Foreign Exchange
Lower volumes and volatility
Securities Lending
Persistently low short-term interest rates and lower
volumes


Barclays Global Financial Services Conference 2014
Delivered Operating Margin Improvement
7
Performance Drivers
LTM operating margin improved  over 110 bps through both
revenue growth and expense actions
In 2Q14, expenses
1
declined 2% sequentially and 4%
year-over-year
We will continue aggressive, but prudent actions to drive
performance:
Rationalizing our staffing and automating processes;
$120MM severance charge taken in 2Q14 and over
$100MM in expected annual expense savings
Sale of One Wall Street resulted in $345MM pre-tax gain
and reduction of ~750,000 square feet in New York City
Consolidating custody and fund accounting platforms
Developing a common architecture and insourcing
application development to reduce costs
26 %
26 %
15 %
17 %
19 %
21 %
23 %
25 %
27 %
29 %
31 %
33 %
35 %
LTM -
6/30/13
LTM -
6/30/14
27 %
28 %
+112 bps
Core Margin²
Adj. Margin²
(excl. Fee Waiver Impact)
1
Total noninterest expense is Non-GAAP adjusted and excludes amortization of intangible assets, M&I, litigation and restructuring charges and the charge (recovery) related to investment management funds, net of incentives.
2
“Core”
denotes GAAP figures adjusted for: net securities gains (losses), accretion discount, FTE adj., intangible amortization, M&I, litigation & restructuring expense, provision for credit losses and other one-time items. “Adj.
Margin”
denotes Core margin figures adjusted for money market fee waivers associated revenue / expenses.
See
Appendix
for
reconciliations.
Additional
disclosure
regarding
these
measures
and
other
Non-GAAP
adjusted
measures
is
available
in
the
Corporation’s
reports
filed
with
the
SEC,
available
at
www.bnymellon.com.


Barclays Global Financial Services Conference 2014
Significant Further Upside to Higher Short-Term Interest Rates
1 Assumes no change in client behavior.
8
($ millions)
2 Both short-term and long-term rates move in four equal quarterly increments.  See Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, 
available at www.bnymellon.com/investorrelations.
* Represents the pretax income impact from money market fee waivers; includes an estimated impact to related compensation expense.
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
2011
2012
2013
LTM-6/30/14
Net Interest Revenue (NIR)
0.80%
1.00%
1.20%
1.40%
1.60%
-$500
-$300
-$100
2009
2010
2011
2012
2013
LTM
-
6/30/14
0%
20%
40%
60%
80%
100%
0
25
50
75
100
~70% of fee waivers
(pretax) recovered if
rates rise by 50 bps ¹
Rapid Recovery of Fee Waivers
With Rising Short-Term Interest Rates
Increase in Interest Rates (bps)
$364
$426
$200
$300
$400
$500
+100 bps
+200 bps
Net Interest Revenue (NIR)
Money Market Fee Waivers *
Pretax Trend
Continued Pressure
on NIR / NIM
Net Interest Revenue Sensitivity
Parallel Rate Ramp
Versus Baseline²
($172)
($204)
($53)
($243)
($94)
($38)
($259)
($321)
($108)
($351)
($125)
($81)
Net Interest Margin (NIM)
Investment Services
Investment Management
Net Interest
Revenue (FTE)
Net Interest
Margin
Opportunity for
Significant Upside
1.36%
1.21%
1.13%
1.07%
$3,028
$3,072
$3,048
$3,011


Barclays Global Financial Services Conference 2014
Strong Capital Position and
Capital Return
9
BNY Mellon’s Common
Shares Outstanding
Below
Pre-Crisis Level
Top Shareholder Return of
Capital Under 2014 CCAR
Common Share Count Change Since Pre-
Crisis²
2014 CCAR Total Payout¹
SOURCE: Federal Reserve –
Dodd-Frank Act Stress Test (DFAST) 2014: Supervisory Stress Test Methodology and Results; payout as a percentage of 2014E IBES Net Income as of 3/26/14,
repurchases
net
of
equity
due
to
employee
compensation
with
2014
amount
assumed
to
be
equal
to
2013
amount.
1 Information
regarding
our
peers’
payout
ratios
is
derived
from
their
public
filings.
2 Represents
G-SIBs:
Pre-crisis
defined
as
of
9/30/07,
share
count
as
of
6/30/07
in
cases
where
data
undisclosed
as
of
9/30/07;
current
data
as
of
9/3/14;
SNL
Financial
(share
count
data). 
Barclays Global Financial Services Conference 2014
28%
38%
24%
19%
19%
34%
25%
18%
31%
29%
28%
26%
23%
26%
32%
14%
15%
61%
49%
61%
63%
63%
46%
50%
55%
38%
40%
34%
24%
89%
87%
84%
82%
81%
80%
75%
73%
69%
68%
62%
50%
49%
48%
32%
14%
15%
3%
3%
BK
NTRS
STT
AXP
DFS
WFC
KEY
COF
USB
FITB
PNC
STI
RF
JPM
BBT
GS
MS
C
BAC
(100.0)%
0.0 %
100.0 %
200.0 %
300.0 %
400.0 %
500.0 %
600.0 %
RBS
C
UniCredit
DB
BARC
BAC
Mizuho
Santander
UBS
MS
SocGen
Sumitomo
STAN
HSBA
BBVA
ACA
WFC
NDA SEK
CSGN
BNP
Mitsubishi
JPM
STT
BoC
ICBC
GS
BK
910%
2014 Dividend Payout
2014 Share Repurchases


Barclays Global Financial Services Conference 2014
Investment Management –
Diverse AUM and Fee Mix
Multi-Boutique Model
& Wealth Management
* Minority ownership or joint venture.  See additional Investment Management disclosures in Appendix.
NEWTON
CASH
INVESTMENT
STRATEGIES
SIGULER
GUFF*
MELLON
CAPITAL
THE
BOSTON
COMPANY
CENTER-
SQUARE
STANDISH
EACM
HAMON*
INSIGHT
ALCENTRA
WALTER
SCOTT
ARX
MERITEN
10
ASSETS UNDER MANAGEMENT
1
$1.6 trillion (6/30/2014)
CASH
ACTIVE FIXED
INCOME
ACTIVE EQUITY
ALTERNATIVES
INDEX
$282B
$66B
$275B
17%
14%
4%
17%
21%
LIABILITY-DRIVEN
INVESTMENTS
$436B
27%
$224B
$353B
1 LDI AUM includes Overlay assets.
2 Fee
revenue
is
calculated
as
follows:
Total
2Q14
Investment
management
fees,
distribution
fees
and
transfer
fees,
net
of
distribution
expense,
annualized.  See Appendix for fee revenue reconciliation. Additional disclosure regarding this measure and other Non-GAAP adjusted measures
is available in the Corporation’s reports filed with the SEC, available at www.bnymellon.com.
49%
5%
4%
9%
20%
13%
FEE REVENUE (Non-GAAP)
2
$3.1 billion


Barclays Global Financial Services Conference 2014
Investment Management –
Strong Margins
11
NOTE:   Pre-tax margins adjusted to exclude amortization expense with revenues net of distribution expense, and non-recurring items where applicable. Average excludes BNY Mellon.
¹
Adjusted to exclude fee waivers for BNY Mellon and all peers, where applicable and disclosed.
* Information
regarding
our
peers
is
derived
from
their
public
filings
and
may
not
be
directly
comparable
to
BNY
Mellon’s
calculations.
Strong Investment Management margin on par with peers
Taking into account AUM mix, BNY Mellon’s performance is above the
line
Barclays Global Financial Services Conference 2014
21 %
30 %
30 %
32 %
32 %
35 %
37 %
49 %
24 %
24 %
32 %
34%
36 %
41 %
42 %
49 %
GSAM
AB
LM
JPM AM
SSGA
JNS
BNYM
AMG
IVZ
BEN
BLK
EV
TROW
2013 Avg. P-T Mgn: 33%
0.0 %
10.0 %
20.0 %
30.0 %
40.0 %
50.0 %
60.0 %
0.0 %
20.0 %
40.0 %
60.0 %
80.0 %
100.0 %
Equity and Other as % AuM
T. Rowe Price
Legg
Mason
AllianceBernstein
Affiliated Managers
JPMorgan AM
State Street
Eaton Vance
BNY Mellon¹
GSAM
Janus
Invesco
Franklin Resources
BlackRock
2013 AUM Mix vs. Pre-Tax Margin¹


Barclays Global Financial Services Conference 2014
Investment Management & Investment Services
Combined Platform Continues to Drive Performance
Investment Management
Central to BNY Mellon’s Franchise
Asset Flows
Enhanced by BNY Mellon’s Platform
Acquisitions Thriving
Under BNY Mellon’s Ownership
Highly successful contributor to
earnings
Minimal balance sheet usage
Positive to BNY Mellon’s credit
ratings and stress test performance
Corporate brand and excellent
credit ratings are attractive to large,
sophisticated investors
Strong long-term growth potential
Liability-Driven Investments (LDI)
Index and money market products
12
NOTE: Represents estimated internal rate of return of
large acquisitions (>$100MM), since acquisition
through 12/31/13.
Internal Rate of Return
Successfully leveraging BNY Mellon’s
capabilities
Strong financial position of Holding
Company parent is attractive to client
base
Attractive cross-selling opportunities for
Investment Services’
clients


Barclays Global Financial Services Conference 2014
Continuing to Strengthen Our Franchise
13
Organizational Realignment
Curtis Arledge
CEO Investment Management
Brian Shea
Head of Client Service Delivery and Client Technology Solutions
Enhancing Our Board
Jeffrey Goldstein
(April 2014)
Significant finance, banking, government, economics, global markets and
corporate strategy experience
John Hinshaw
(Sep. 2014)
Proven technology leader having served in progressively more complex,
global technology roles across several different industries
New Role
Markets Group
CEO Investment Services
Global Markets
Global Collateral Services
Prime Services


Strong Shareholder Returns
14
YTD –
9/5/2014
2012 Total Shareholder Return
2013 Total Shareholder Return
NOTE: G-SIB Peer Group includes: HSBC, JPM, BARC, BNP, C, DBK, BAC, CSGN, GS, ACA, MTU, MS, RBS, UBS, Bank of China, BBVA, ICBC, MFG, NDA, SAN, GLE, STAN,
STT, SMFG, UCG, WFC.
Proxy Peers include:  BLK, SCHW, BEN, JPM, MS, NTRS, PNC, PRU, STT, USB, WFC.
Performance (%)
YTD
BNY Mellon
15 %
Trust Peers Average
Proxy Peer Median
7
S&P 500
10 
G-SIB Peer Group
3
Barclays Global Financial Services Conference 2014


Barclays Global Financial Services Conference 2014
Twin Engines of Growth
Investment Services
Investment Management
Largest global custodian with $28.5T in AUC/A
$1.6T in AUM --
one of three largest Asset Managers owned by
the eight U.S. G-SIB peers
Annuity Fee Revenue Stream
Fee revenue –
79% of total revenue
Growth with minimal credit risk or need for incremental capital
Continuous Process of Expense Management
Staffing, real estate footprint, technology, procurement and corporate
services
High Payout while maintaining Strong Capital / High Ratings
Estimated Basel III Common Equity Tier 1 Ratio of 10%
Credit ratings ranked among highest in G-SIB peer group
2013 total payout ratio of 83% --
top quartile versus CCAR Banks
Positioned for earnings growth
Investing in organic growth
Continuing to aggressively manage costs
Poised to benefit as markets return to normal conditions
Investments Company for the World
Strategically Well Positioned for Outperformance
15
1 Fully phased-in advanced approach at June 30, 2014.  This represents a Non-GAAP measure.  See Appendix for reconciliation.
Additional
disclosure
regarding
this
measure
and
other
Non-GAAP
adjusted
measures
is
available
in
the
Corporation’s
reports
filed
with
the
SEC,
available
at
www.bnymellon.com.
1



APPENDIX


Barclays Global Financial Services Conference 2014
Reconciliation Schedule
Business -
Revenue and Pretax Income
* Consolidated
totals
include
the
Other
segment.
Pretax
metrics
for
Investment
Services
and
Investment
Management
exclude
the
impact
of
intangible
amortization.
INVESTMENT SERVICES
INVESTMENT MANAGEMENT
CONSOLIDATED TOTAL
INVESTMENT SERVICES
REVENUE
$ MILLION
INVESTMENT MANAGEMENT
CONSOLIDATED TOTAL
2,568
949
803
3Q13
$3,783
260
$1,002
PRETAX INCOME
$ MILLION
2,470
1,061
648
4Q13
$3,611
301
$728
2,477
970
699
1Q14
$3,647
277
$926
2,513
1,036
689
4Q14
$3,745
202
$811
2,839
1,040
$3,467
10,028
4,016
LTM
6/3014
$14,786
18


Barclays Global Financial Services Conference 2014
Reconciliation Schedule
Investment Management & Performance Fees / Investment Services Fees (Adj.)
($millions)
Investment Management & Performance Fees
2011
2013
LTM 6/30/13
LTM 6/3014
Investment management and performance fees
$2,998
$3,385
$3,281
$3,449
(+)  Investment management money market fee waivers
225
276
221
309
Total
$3,223
$3,661
$3,502
$3,758
($millions)
Investment Services Fees (Adj.)
2011
2013
LTM 6/30/13
LTM 6/3014
Investment services fees
$6,499
$6,689
$6,523
$6,719
(-) Issuer services fees
1,252
1,087
1,053
1,016
(-) Securities lending revenue
146
117
138
112
(+)  Investment services money market fee waivers
203
292
239
321
Total
$5,304
$5,777
$5,571
$5,912
19


Barclays Global Financial Services Conference 2014
Reconciliation Schedule
High Margin Revenue as a Percent of Total Revenue
($millions)
High Margin Revenue as a Percent of Total Revenue
2011
2013
LTM 6/30/13
LTM 6/3014
Total Revenue  -
Adjusted
$14,798
$15,039
$14,791
$14,961
Foreign exchange & other trading
848
674
690
571
Net interest revenue (non-FTE)
2,984
3,009
2,950
2,980
Performance fees
93
130
115
130
Securities lending fees
183
155
179
150
Investment & other income
524
482
642
353
Issuer services fees
1,446
1,090
1,056
1,019
Securities gains/(losses)
48
141
152
101
Gain (loss) related to an equity investment (pre-tax)
-
(9)
(184)
175
Total High-Margin Revenue*
$6,124
$5,671
$5,599
$5,479
% of Total Revenue -
Adjusted
41%
38%
38%
37%
*Total High-Margin Revenue may not sum due to rounding
20


Barclays Global Financial Services Conference 2014
Reconciliation Schedule
Operating Margin
($millions)
LTM 6/30/13
LTM 6/30/14
Total Revenue -
GAAP
$14,975
$14,786
Net securities gains(losses)
(152)
(100)
Loss (gain) on equity investments & asset sales
(184)
175
Accretable discount
(237)
(194)
Earnings attributable to non-controlling Interest
(92)
(62)
FTE adjustment
59
68
Core Revenue
$14,369
$14,673
Fee Waiver Revenue
532
677
Adjusted Core Revenue
$14,900
$15,350
Total Expense –
GAAP
$11,180
$11,341
Amortization of intangible assets
(370)
(313)
M&I, litigation & restructuring
(124)
(128)
Admin error charge (recovery)
(28)
(104)
Core Expense
$10,658
$10,796
Fee waiver expense
184
200
Adjusted Core Expense
$10,842
$10,996
Core Pre-Tax Income
$3,711
$3,877
Core Pre-Tax Margin
26%
26%
Adjusted Core Pre-Tax Income
$4,059
$4,354
Adjusted Core Pre-Tax Margin
27%
28%
*Figures may not foot due to rounding
21


Barclays Global Financial Services Conference 2014
Reconciliation Schedule
Net Interest Margin (LTM-6/30/14)
22
Net Interest Margin (FTE)   ($millions)
3Q13
4Q13
1Q14
2Q14
2Q14 LTM
Net Interest  Revenue (FTE)
$787
$781
$744
$736
$3,048
Average Interest-earning Assets
$285,519
FTE -
fully taxable equivalent
Net Interest Margin (FTE)           1.07%


Barclays Global Financial Services Conference 2014
Investment Management Fee Revenue Reconciliation
Reconciliation Schedule
23
INVESTMENT MANAGEMENT FEES
(EXCLUDING PERFORMANCE FEES)
DISTRIBUTION AND SERVICING FEES
DISTRIBUTION AND SERVICING EXPENSE
SUBTOTAL
$ MILLION
$852
$41
$782
2Q14
(111)
TOTAL (ANNUALIZED)
X4
$3,128


Barclays Global Financial Services Conference 2014
Reconciliation Schedule
Investment Management Operating Margin
24
Pre-tax Operating Margin –
Investment Management   ($millions)
1Q13
2Q13
3Q13
4Q13
FY 2013
Income before taxes –
GAAP
$206
$271
$225
$266
$968
Add:  Amortization of intangible assets
39
39
35
35
148
Add:  Money market fee waiver
21
24
30
33
108
Add:  Charge (recovery) related to investment management funds
39
(27)
12
Income before taxes excluding amortization of intangibles assets, money
market fee waivers and the charge (recovery) related investment
management funds –
Non-GAAP
$305
$307
$290
$334
$1,236
Total Revenue -
GAAP
$943
$975
$949
$1,061
$3,928
Less:  Distribution and servicing expense
104
110
107
108
429
Less:  Money market fee waivers benefiting distribution and
servicing expense
36
35
38
38
147
Add:  Money market fee waivers impacting total revenue
57
59
68
71
255
Total revenue net of distribution and servicing expense and excluding
money market fee waivers
Non-GAAP
$860
$889
$872
$986
$3,607
Pre-tax operating margin excluding amortization of intangibles assets,
money market fee waivers and the charge (recovery) related to investment
management
funds,
and
net
of
distribution
and
servicing
expense
Non-GAAP¹
34%
1
Income before taxes divided by total revenue.


Barclays Global Financial Services Conference 2014
Reconciliation Schedule
Operating Expenses
1
Represents
a
non-GAAP
adjusted
measure.
Additional
disclosure
regarding
this
and
other
non-GAAP
adjusted
measures
is
available
in
the
Corporation’s
reports
filed
with
the
SEC,
including
our
Form
10-Q
for
the
quarter
ended
June
30,
2014,
available
at
www.bnymellon.com/investorrelations.
Noninterest Expense   ($millions)
2Q14
1Q14
2Q13
Total noninterest expense –
GAAP
$2,946
$2,739
$2,822
Amortization of intangible assets
(75)
(75)
(93)
M&I, litigation and restructuring charges
(122)
12
(13)
Charge
(recovery)
related
to
investment
management
funds,
net
of
incentives
and
severance expense
(109)
5  
27
Adjusted Noninterest Expense
1
$2,640
$2,681
$2,743
Adjusted Noninterest Expense                  (2)              
(4)
25


Barclays Global Financial Services Conference 2014
Reconciliation Schedule
Estimated Common Equity Tier 1 Ratio, Fully Phased-in 
($millions)
Basel III Capital Components and Ratios at June 30, 2014
Fully phased-in
Basel III
Common Equity
$36,764
Goodwill and Intangible Assets
(19,925)
Net Pension Fund Assets
(106)
Equity Method Investments
(430)
Deferred Tax Assets
(17)
Other
(9)
Total Common Equity Tier 1
$16,277
Risk-weighted Assets –
Standardized Approach
$158,168
Risk-weighted Assets –
Advanced Approach
$162,072
Estimated Basel III CET1 ratio –
Standardized Approach (Non-GAAP)
1
10.3%
Estimated Basel III CET1 ratio –
Advanced Approach (Non-GAAP)
1
10.0%
1Represents a non-GAAP adjusted measure.  Additional disclosure regarding this measure and other non-GAAP adjusted measures are available in the Corporation’s reports filed with the SEC, including our Form 10-Q for
the quarter ended June 30, 2014, available at
www.bnymellon.com/investorrelations.
At June 30, 2014, the estimated fully phased-in Basel III CET1 ratios are based on our interpretation of the final rules released by the Board of Governors of the Federal Reserve System (the “Federal Reserve”) on July 2,
2013 (the “Final Capital Rules”), which are being gradually phased-in over a multiyear period. The estimated fully phased-in Basel III CET1 ratios assume all relevant regulatory model approvals. The Final Capital Rules
require approval by banking regulators of certain models used as
part of risk-weighted asset calculations. If these models are not approved, the estimated fully phased-in capital ratios would likely be adversely impacted.
See additional disclosures in our Form 10-Q for the quarter ended June 30, 2014, available at
www.bnymellon.com/investorrelations.
26


Barclays Global Financial Services Conference 2014
Dodd-Frank Act Stress Test –
Severely Adverse Scenario
Impact on Tier 1 Common Equity Ratio
Bank Holding Company
Ticker/
Identifier
Tier 1 Common Ratio (%)
Stress
Impact
Actual Q3 2013
Ending
Minimum
American Express Company
AXP
12.8
14.0
12.1
0.7
BNY Mellon
BK
14.1
16.1
13.1
1.0
BB&T Corporation
BBT
9.4
8.4
8.4
1.0
SunTrust Banks
STI
9.9
9.0
8.8
1.1
U.S. Bancorp
USB
9.3
8.3
8.2
1.1
PNC Financial Services Group
PNC
10.3
9.0
9.0
1.3
Northern Trust Corporation
NTRS
13.1
11.7
11.7
1.4
Discover Financial Services
DFS
14.7
13.7
13.2
1.5
Fifth Third Bancorp
FITB
9.9
8.4
8.4
1.5
Ally Financial
ALLY
7.9
6.3
6.3
1.6
KeyCorp
KEY
11.2
9.3
9.2
2.0
Regions Financial Corporation
RF
11.0
9.0
8.9
2.1
Comerica Incorporated
CMA
10.7
8.6
8.6
2.1
State Street Corporation
STT
15.5
14.7
13.3
2.2
Wells Fargo & Company
WFC
10.6
8.2
8.2
2.4
M&T Bank Corporation
MTB
9.1
6.2
6.2
2.9
UnionBanCal Corporation
UNB
11.1
8.1
8.1
3.0
BBVA  Compass Bancshares
BBVA
11.6
8.5
8.5
3.1
RBS Citizens Financial Group
RBS
13.9
10.7
10.7
3.2
BMO Financial Corp.
BMO
10.8
7.6
7.6
3.2
Huntington Bancshares Incorporated
HBAN
10.9
7.4
7.4
3.5
JPMorgan Chase & Co.
JPM
10.5
6.7
6.3
4.2
Capital One Financial Corporation
COF
12.7
7.8
7.8
4.9
Bank of America Corporation
BAC
11.1
6.0
5.9
5.2
Citigroup
C
12.7
7.2
7.2
5.5
Santander Holdings USA
SC
13.7
7.3
7.3
6.4
Morgan Stanley
MS
12.6
7.6
6.1
6.5
Zions Bancorporation
ZB
10.5
3.6
3.6
6.9
Goldman Sachs Group
GS
14.2
9.2
6.9
7.3
HSBC North America Holdings
HSBC
14.7
6.6
6.6
8.1
SOURCE:  
Federal Reserve –
Dodd-Frank Act Stress
Test  (DFAST) 2014: Supervisory Stress
Test Methodology and Results
27


Barclays Global Financial Services Conference 2014
Disclosures
All statistics are global and represent the minimum number of BNY Mellon client relationships in each category.
Fortune 500 (as of 12/31/13)
Central Banks (as of June 2013)
Pensions & EB Funds (as of 2/26/14)
Endowments (as of 2/26/14)
Life & Health Insurance Companies (as of 2/26/14)
QS World Universities Top 50 (of 400 listed) (as of 12/31/2013)
28
// Fortune magazine, May 2013; Global 500 data
// CIA World Factbook, IMF, annual reports
// Reprinted with permission of Pensions & Investments, Copyright 2013 // Metric is Plan Assets, Millions (converted in thousands)
// Reprinted with permission of NACUBO, Copyright 2013 // Metric
is Total Market Value of Endowments, in thousands, as of FYE 2011
// Data source used by P&I Magazine
// Reprinted with permission of A.M. Best Company, Inc., Copyright 2013 // Metric is 2012 Total Admitted Assets, in thousands
// www.topuniversities.com/university-rankings/world-university-rankings/2013


Barclays Global Financial Services Conference 2014
Asset Servicing:
Largest global custodian ranked by
Assets Under Custody and / or Administration
Source:
Globalcustody.net,
2013,
data
as
of
June
30,
2013
or
as
otherwise
noted
by
relevant
ranked
entity.
Broker-Dealer Services:  #1 (U.S.), growing globally
Leading provider of U.S. Government Securities clearance services
Source:
Federal
Reserve
Bank
of
New
York
-
Fedwire
Securities
High
Volume
Customer
Report,
March
2013
Alternative Investment Services:  #3 fund administrator
Based on single manager funds and funds of hedge fund assets under administration
combined.
Source:
HFMWeek
20th
Biannual
AuA
Survey
-
June
2013
Corporate Trust:  #1 Global Corporate Trust Service Provider
Source:
Thomson Reuters and Dealogic, first quarter, 2013
Depositary Receipts:
#1 in market share (~60%)
Leader in sponsored global depositary receipts programs
Source: BNY Mellon.
Data as of December 31, 2013
Pershing:  #1 U.S. clearing firm
Pershing LLC., ranked by number of broker-dealer customers
Source: Investment News, 2012
Treasury Services:
Top 5 in USD payments
Fifth largest participant in CHIPS funds transfer volume
Fifth largest Fedwire payment processor
Source:
CHIPS
High
Volume
Customer
Report,
June
2013
and
Fedwire
High
Volume
Customer Report, June 2013
Asset Management
Eighth largest global asset manager
Source: Pensions & Investments, November 2013
Wealth Management
Seventh largest U.S. wealth manager
Source: Barrons, Sept 2013
Disclosures
29


Barclays Global Financial Services Conference 2014
Disclosures
BNY
Mellon
Investment
Management
is
one
of
the
world’s
leading
investment
management
organizations
and
one
of
the
top
U.S.
wealth
managers,
encompassing
BNY
Mellon’s
affiliated
investment
management
firms,
wealth
management
organization
and
global
distribution
companies.
BNY
Mellon
is
the
corporate
brand
of
The
Bank
of
New
York
Mellon
Corporation
and
may
also
be
used
as
a
generic
term
to
reference
the
Corporation
as
a
whole
or
its
various
subsidiaries
generally.
Products
and
services
may
be
provided
under
various
brand
names
and
in
various
countries
by
subsidiaries,
affiliates
and
joint
ventures
of
The
Bank
of
New
York
Mellon
Corporation
where
authorized
and
regulated
as
required
within
each
jurisdiction.
Products
or
services
described
herein
are
provided
by
BNY
Mellon,
its
subsidiaries,
affiliates
or
related
companies
and
may
be
provided
in
various
countries
by
one
or
more
of
these
companies
where
authorized
and
regulated
as
required
within
each
jurisdiction.
Certain
investment
vehicles
may
only
be
offered
through
regulated
entities
or
licensed
individuals,
such
as
a
bank,
a
broker-dealer
or
an
insurance
company.
However,
this
material
is
not
intended,
nor
should
be
construed,
as
an
offer
or
solicitation
of
services
or
products
or
an
endorsement
thereof
in
any
jurisdiction
or
in
any
circumstance
that
is
otherwise
unlawful
or
unauthorized.
The
investment
products
and
services
mentioned
here
are
not
insured
by
the
FDIC
(or
any other state or federal agency), are not deposits of or guaranteed by any bank, and may lose value.
This
material
is
not
intended
as
an
offer
to
sell
or
a
solicitation
of
an
offer
to
buy
any
security,
and
it
is
not
provided
as
a
sales
or
advertising
communication
and
does
not
constitute
investment
advice.
MBSC
Securities
Corporation,
a
registered
broker-dealer,
FINRA
member
and
wholly
owned
subsidiary
of
BNY
Mellon,
has
entered
into
agreements
to
offer
securities
in the U.S. on behalf of certain BNY Mellon Investment Management firms.
Securities
in
Canada
are
offered
through
BNY
Mellon
Asset
Management
Canada
Ltd.,
registered
as
a
Portfolio
Manager
and
Exempt
Market
Dealer
in
all
provinces
and
territories
of
Canada, and as an Investment Fund Manager and Commodity Trading Manager in Ontario.
The
value
of
investments
and
the
income
from
them
is
not
guaranteed
and
can
fall
as
well
as
rise
due
to
stock
market
and
currency
movements.
When
you
sell
your
investment
you
may
get back less than you originally invested.
Rankings include assets managed by BNY Mellon’s investment boutiques and BNY Mellon Wealth Management. Each ranking may not include the same mix of firms.
Unless
otherwise
noted,
all
references
to
assets
under
management
(which
are
approximate)
are
as
of
6/30/14.
Assets
under
management
(AUM)
/
overlay
under
management
(OUM)
for
The
Boston
Company
Asset
Management,
EACM
Advisors,
Mellon
Capital
Management
Corporation
and
Standish
Mellon
Asset
Management
Company
LLC
includes
assets
managed
by
those
individual
firms’
officers
as
associated
persons,
dual
officers
or
employees
of
The
Dreyfus
Corporation.
In
addition,
AUM/OUM
for
the
following
firms
includes
assets
managed
by
them
as
non-discretionary
investment
manager
for,
or
by
the
individual
firms’
officers
as
dual
officers
or
employees
of,
The
Bank
of
New
York
Mellon:
The
Dreyfus
Corporation
and
its
BNY
Mellon
Cash
Investment
Strategies
division,
The
Boston
Company
Asset
Management,
LLC,
CenterSquare
Investment
Management,
Inc,
Mellon
Capital
Management Corporation, Newton Capital Management Limited (part of The Newton Group) and Standish Mellon Asset Management Company LLC.
Alcentra
Limited,
Insight
Investment
Management
Limited,
Newton
Capital
Management
Limited,
Newton
Investment
Management
Limited
and
Walter
Scott
&
Partners
Limited
are
authorized
and
regulated
by
the
Financial
Conduct
Authority.
The
registered
address
for
Alcentra
Limited
is
10
Gresham
Street,
London,
EC2V7JD,
England.
The
registered
address
for
Insight
Investment
and
Newton
is
BNY
Mellon
Centre,
160
Queen
Victoria
Street,
London,
EC4V
4LA,
England.
The
registered
address
for
Walter
Scott
is
One
Charlotte
Square,
Edinburgh, EH2 4DR, Scotland. 
The Alcentra Group refers to the affiliated companies Alcentra, Ltd and Alcentra NY, LLC. AUM includes assets managed by both companies.
BNY
Mellon
Cash
Investment
Strategies
(CIS)
is
a
division
of
The
Dreyfus
Corporation.
Important Information
30


Barclays Global Financial Services Conference 2014
Disclosures
BNY Mellon Investment Strategy & Solutions Group (“ISSG”) is part of The Bank of New York Mellon (“Bank”).  In the US, ISSG offers products and services through
the Bank, including investment strategies that are developed by affiliated BNY Mellon Investment Management advisory firms and managed by officers of such
affiliated firms acting in their capacities as dual officers of the Bank.
Insight Investment Management Limited and Meriten Investment Management GmbH do not offer services in the U.S.  This presentation does not constitute an offer to
sell, or a solicitation of an offer to purchase, any of the firms’
services or funds to any U.S. investor, or where otherwise unlawful.
BNY Mellon owns 90% of The Boston Company Asset Management, LLC and the remainder is owned by employees of the firm.
BNY Mellon owns a 19.9% minority interest in The Hamon Investment Group Pte Limited, the parent company of Blackfriars Asset Management Limited and Hamon
Asian Advisors Limited which both offer investment services in the U.S.
Insight investment's assets under management are represented by the value of cash securities and other economic exposure managed
for clients. Services offered in
the U.S., Canada and Australia by Pareto Investment Management Limited under the Insight Pareto brand.
Mellon Capital Management Corporation AUM includes $4.6 billion in overlay strategies.
Meriten Investment Management GmbH does not offer services in the U.S It was formerly known as WestLB Mellon Asset Management KAG mbH.
The Newton Group (“Newton”) is comprised of the following affiliated companies: Newton Investment Management Limited, Newton Capital Management Limited
(NCM Ltd) and Newton Capital Management LLC (NCM LLC). NCM LLC personnel are supervised persons of NCM Ltd and NCM LLC does not provide investment
advice, all of which is conducted by NCM Ltd. Only NCM LLC and NCM Ltd offer services in the U.S. AUM for the Newton Group include assets managed by all of
these companies (except NCM LLC). In addition, AUM for the Firm may include assets managed by the firm's officers as dual officers or employees of The Bank of
New York Mellon and assets of wrap fee account(s) and high net worth client model(s) for which Newton Capital Management Limited
provides advice in the form of
non-discretionary model portfolios.
BNY Mellon owns a 20% interest in Siguler Guff & Company, LP and
certain related entities (including Siguler Guff Advisers, LLC).
31
Securities
transactions
are
effected,
where
required,
only
through
registered
broker-dealers.
Pershing
is
the
umbrella
name
for
Pershing
LLC
(member
FINRA,
SIPC
and
NYSE),
Pershing
Advisor
Solutions
(member
FINRA
and
SIPC),
Pershing
Prime
Services
(a
service
of
Pershing
LLC),
Pershing
Limited
(UK),
Pershing
Securities
Limited,
Pershing
Securities
International
Limited
(Ireland),
Pershing
(Channel
Islands)
Limited,
Pershing
Securities
Canada
Limited,
Pershing
Securities
Singapore
Private
Limited
and
Pershing
Securities
Australia
Pty.
Ltd.
SIPC
protects
securities
in
customer
accounts
of
its
members
up
to
$500,000
in
securities
(including
$250,000
for
claims
for
cash).
Explanatory
brochure
available
upon
request
or
at
www.sipc.org.
SIPC
does
not
protect
against
loss
due
to
market
fluctuation.
SIPC
protection
is
not
the
same
as,
and
should
not
be
confused
with,
FDIC
insurance.
Investment
products
(other
than
deposit
products)
referenced
in
this
brochure
(including
money
market
funds)
are
not
insured
by
the
FDIC
(or
any
other
state
or
federal
agency),
are
not
deposits
of
or
guaranteed
by
BNY
Mellon
or
any
bank
or
non-bank
subsidiary
thereof,
and
are
subject
to
investment
risk,
including
the
loss
of
principal
amount
invested.