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| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
| Securities registered pursuant to Section 12(b) of the Act: | ||||||||
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Title of each class
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Trading
symbol(s) |
Name of each exchange
on which registered |
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(fully and unconditionally guaranteed by The Bank of New York Mellon Corporation)
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☒ | Accelerated filer | ☐ | |||||||||||||||||
| Non-accelerated filer | ☐ | Smaller reporting company |
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| Emerging growth company |
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| Page | |||||
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Consolidated Financial Highlights (unaudited)
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| Part I – Financial Information | |||||
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Items 2. and 3. Management’s Discussion and Analysis of Financial Condition and Results of Operations; Quantitative and Qualitative Disclosures about Market Risk:
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Overview
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Supplemental information – Explanation of GAAP
and Non-GAAP financial measures
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| Item 1. Financial Statements: | |||||
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Consolidated Income Statement (unaudited)
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Consolidated Comprehensive Income Statement (unaudited)
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Consolidated Balance Sheet (unaudited)
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Consolidated Statement of Cash Flows (unaudited)
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Consolidated Statement of Changes in Equity (unaudited)
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| Notes to Consolidated Financial Statements: | |||||
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Note 2—New accounting guidance
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Note 3—Acquisitions
and dispositions
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Item 4. Controls and Procedures
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| Part II – Other Information | |||||
| Quarter ended | Year-to-date | |||||||||||||||||||
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(dollars in millions, except per share amounts and unless
otherwise noted) |
Sept. 30, 2023 | June 30, 2023 | Sept. 30, 2022 | Sept. 30, 2023 | Sept. 30, 2022 | |||||||||||||||
| Results applicable to common shareholders of The Bank of New York Mellon Corporation: | ||||||||||||||||||||
| Net income | $ | 956 | $ | 1,031 | $ | 319 | $ | 2,892 | $ | 1,853 | ||||||||||
| Basic earnings per share | $ | 1.23 | $ | 1.31 | $ | 0.39 | $ | 3.66 | $ | 2.29 | ||||||||||
| Diluted earnings per share | $ | 1.22 | $ | 1.30 | $ | 0.39 | $ | 3.65 | $ | 2.28 | ||||||||||
| Fee and other revenue | $ | 3,358 | $ | 3,354 | $ | 3,353 | $ | 9,947 | $ | 10,011 | ||||||||||
| Net interest revenue | 1,016 | 1,100 | 926 | 3,244 | 2,448 | |||||||||||||||
| Total revenue | $ | 4,374 | $ | 4,454 | $ | 4,279 | $ | 13,191 | $ | 12,459 | ||||||||||
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Return on common equity
(annualized)
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10.5 | % | 11.6 | % | 3.5 | % | 10.8 | % | 6.8 | % | ||||||||||
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Return on tangible common equity
(annualized) –
Non-GAAP
(a)
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20.5 | % | 22.6 | % | 7.5 | % | 21.1 | % | 14.0 | % | ||||||||||
| Fee revenue as a percentage of total revenue | 74 | % | 73 | % | 76 | % | 73 | % | 78 | % | ||||||||||
| Non-U.S. revenue as a percentage of total revenue | 36 | % | 37 | % | 35 | % | 36 | % | 35 | % | ||||||||||
| Pre-tax operating margin | 29 | % | 30 | % | 15 | % | 29 | % | 21 | % | ||||||||||
| Net interest margin | 1.18 | % | 1.20 | % | 1.05 | % | 1.23 | % | 0.89 | % | ||||||||||
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Net interest margin on a fully taxable equivalent (“FTE”) basis
– Non-GAAP
(b)
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1.18 | % | 1.20 | % | 1.05 | % | 1.23 | % | 0.90 | % | ||||||||||
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Assets under custody and/or administration (“AUC/A”) at period end
(in trillions) (c)
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$ | 45.7 | $ | 46.9 | $ | 42.2 | $ | 45.7 | $ | 42.2 | ||||||||||
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Assets under management (“AUM”) at period end
(in billions) (d)
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$ | 1,821 | $ | 1,906 | $ | 1,776 | $ | 1,821 | $ | 1,776 | ||||||||||
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Average common shares and equivalents outstanding
(in thousands)
:
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| Basic | 777,813 | 787,718 | 811,304 | 789,609 | 810,703 | |||||||||||||||
| Diluted | 781,781 | 790,725 | 814,516 | 793,364 | 814,214 | |||||||||||||||
| Selected average balances: | ||||||||||||||||||||
| Interest-earning assets | $ | 339,044 | $ | 362,049 | $ | 352,062 | $ | 349,789 | $ | 365,279 | ||||||||||
| Total assets | $ | 397,492 | $ | 421,174 | $ | 415,670 | $ | 408,685 | $ | 431,074 | ||||||||||
| Interest-bearing deposits | $ | 209,641 | $ | 215,057 | $ | 203,659 | $ | 209,624 | $ | 215,271 | ||||||||||
| Noninterest-bearing deposits | $ | 52,467 | $ | 62,152 | $ | 84,804 | $ | 61,438 | $ | 88,952 | ||||||||||
| Long-term debt | $ | 31,161 | $ | 31,970 | $ | 28,449 | $ | 31,129 | $ | 26,754 | ||||||||||
| Preferred stock | $ | 4,838 | $ | 4,838 | $ | 4,838 | $ | 4,838 | $ | 4,838 | ||||||||||
| Total The Bank of New York Mellon Corporation common shareholders’ equity | $ | 35,983 | $ | 35,769 | $ | 35,942 | $ | 35,787 | $ | 36,483 | ||||||||||
| Other information at period end: | ||||||||||||||||||||
| Cash dividends per common share | $ | 0.42 | $ | 0.37 | $ | 0.37 | $ | 1.16 | $ | 1.05 | ||||||||||
| Common dividend payout ratio | 35 | % | 29 | % | 95 | % | 32 | % | 46 | % | ||||||||||
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Common dividend yield
(annualized)
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3.9 | % | 3.3 | % | 3.8 | % | 3.6 | % | 3.6 | % | ||||||||||
| Closing stock price per common share | $ | 42.65 | $ | 44.52 | $ | 38.52 | $ | 42.65 | $ | 38.52 | ||||||||||
| Market capitalization | $ | 32,801 | $ | 34,671 | $ | 31,135 | $ | 32,801 | $ | 31,135 | ||||||||||
| Book value per common share | $ | 46.98 | $ | 46.35 | $ | 43.18 | $ | 46.98 | $ | 43.18 | ||||||||||
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Tangible book value per common share – Non-GAAP
(a)
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$ | 24.66 | $ | 24.17 | $ | 21.55 | $ | 24.66 | $ | 21.55 | ||||||||||
| Full-time employees | 53,600 | 53,200 | 51,100 | 53,600 | 51,100 | |||||||||||||||
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Common shares outstanding
(in thousands)
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769,073 | 778,782 | 808,280 | 769,073 | 808,280 | |||||||||||||||
| Regulatory capital and other ratios | Sept. 30, 2023 | June 30, 2023 | Dec. 31, 2022 | |||||||||||
| Average liquidity coverage ratio (“LCR”) | 121 | % | 120 | % | 118 | % | ||||||||
| Average net stable funding ratio (“NSFR”) | 136 | % | 136 | % | N/A | (e) | ||||||||
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Regulatory capital ratios:
(f)
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| Advanced Approaches: | ||||||||||||||
| Common Equity Tier 1 (“CET1”) ratio | 11.4 | % | 11.1 | % | 11.2 | % | ||||||||
| Tier 1 capital ratio | 14.4 | 14.0 | 14.1 | |||||||||||
| Total capital ratio | 15.2 | 14.8 | 14.9 | |||||||||||
| Standardized Approach: | ||||||||||||||
| CET1 ratio | 11.9 | % | 11.8 | % | 11.3 | % | ||||||||
| Tier 1 capital ratio | 15.1 | 15.0 | 14.4 | |||||||||||
| Total capital ratio | 16.1 | 16.0 | 15.3 | |||||||||||
| Tier 1 leverage ratio | 6.1 | % | 5.7 | % | 5.8 | % | ||||||||
| Supplementary leverage ratio (“SLR”) | 7.2 | 7.0 | 6.8 | |||||||||||
| BNY Mellon shareholders’ equity to total assets ratio | 10.1 | % | 9.5 | % | 10.0 | % | ||||||||
| BNY Mellon common shareholders’ equity to total assets ratio | 8.9 | 8.4 | 8.8 | |||||||||||
| 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 | ||
| The Bank of New York Mellon Corporation | ||||||||||||||||||||||||||||||||||||||||||||||||||
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Securities
Services |
Market and Wealth Services | Investment and Wealth Management | ||||||||||||||||||||||||||||||||||||||||||||||||
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Asset
Servicing |
Pershing |
Investment
Management |
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Issuer
Services |
Treasury
Services |
Wealth
Management |
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| Clearance and Collateral Management | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Fee and other revenue | YTD23 | ||||||||||||||||||||||||||||
| (dollars in millions, unless otherwise noted) | 3Q23 vs. | vs. | |||||||||||||||||||||||||||
| 3Q23 | 2Q23 | 3Q22 | 2Q23 | 3Q22 | YTD23 | YTD22 | YTD22 | ||||||||||||||||||||||
| Investment services fees | $ | 2,230 | $ | 2,252 | $ | 2,157 | (1) | % | 3 | % | $ | 6,601 | $ | 6,356 | 4 | % | |||||||||||||
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Investment management and performance fees
(a)
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777 | 762 | 800 | 2 | (3) | 2,315 | 2,516 | (8) | |||||||||||||||||||||
| Foreign exchange revenue | 154 | 158 | 203 | (3) | (24) | 488 | 632 | (23) | |||||||||||||||||||||
| Financing-related fees | 45 | 50 | 43 | (10) | 5 | 147 | 132 | 11 | |||||||||||||||||||||
| Distribution and servicing fees | 39 | 35 | 33 | 11 | 18 | 107 | 97 | 10 | |||||||||||||||||||||
| Total fee revenue | 3,245 | 3,257 | 3,236 | — | — | 9,658 | 9,733 | (1) | |||||||||||||||||||||
| Investment and other revenue | 113 | 97 | 117 | N/M | N/M | 289 | 278 | N/M | |||||||||||||||||||||
| Total fee and other revenue | $ | 3,358 | $ | 3,354 | $ | 3,353 | — | % | — | % | $ | 9,947 | $ | 10,011 | (1) | % | |||||||||||||
| Fee revenue as a percentage of total revenue | 74 | % | 73 | % | 76 | % | 73 | % | 78 | % | |||||||||||||||||||
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AUC/A at period end
(in trillions) (b)
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$ | 45.7 | $ | 46.9 | $ | 42.2 | (3) | % | 8 | % | $ | 45.7 | $ | 42.2 | 8 | % | |||||||||||||
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AUM at period end
(in billions) (c)
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$ | 1,821 | $ | 1,906 | $ | 1,776 | (4) | % | 3 | % | $ | 1,821 | $ | 1,776 | 3 | % | |||||||||||||
| Investment and other revenue | ||||||||||||||||||||
| (in millions) | 3Q23 | 2Q23 | 3Q22 | YTD23 | YTD22 | |||||||||||||||
| (Loss) income from consolidated investment management funds | $ | (11) | $ | 10 | $ | (7) | $ | 4 | $ | (51) | ||||||||||
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Seed capital (losses) gains
(a)
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(4) | 7 | (11) | 11 | (43) | |||||||||||||||
| Other trading revenue | 86 | 53 | 65 | 184 | 115 | |||||||||||||||
| Renewable energy investments (losses) | (45) | (45) | (44) | (122) | (132) | |||||||||||||||
| Corporate/bank-owned life insurance | 29 | 23 | 32 | 79 | 93 | |||||||||||||||
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Other investments (losses) gains
(b)
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(9) | 10 | 13 | (8) | 152 | |||||||||||||||
| Disposal gains (losses) | 2 | (1) | 37 | — | 37 | |||||||||||||||
| Expense reimbursements from joint venture | 29 | 31 | 27 | 89 | 80 | |||||||||||||||
| Other income | 55 | 9 | 4 | 72 | 22 | |||||||||||||||
| Net securities (losses) gains | (19) | — | 1 | (20) | 5 | |||||||||||||||
| Total investment and other revenue | $ | 113 | $ | 97 | $ | 117 | $ | 289 | $ | 278 | ||||||||||
| Net interest revenue | YTD23 | ||||||||||||||||||||||||||||
| 3Q23 vs. | vs. | ||||||||||||||||||||||||||||
| (dollars in millions) | 3Q23 | 2Q23 | 3Q22 | 2Q23 | 3Q22 | YTD23 | YTD22 | YTD22 | |||||||||||||||||||||
| Net interest revenue | $ | 1,016 | $ | 1,100 | $ | 926 | (8)% | 10% | $ | 3,244 | $ | 2,448 | 33% | ||||||||||||||||
| Add: Tax equivalent adjustment | — | 1 | 3 | N/M | N/M | 1 | 9 | N/M | |||||||||||||||||||||
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Net interest revenue (FTE) – Non-GAAP
(a)
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$ | 1,016 | $ | 1,101 | $ | 929 | (8)% | 9% | $ | 3,245 | $ | 2,457 | 32% | ||||||||||||||||
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Average interest-earning assets
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$ | 339,044 | $ | 362,049 | $ | 352,062 | (6)% | (4)% | $ | 349,789 | $ | 365,279 | (4)% | ||||||||||||||||
| Net interest margin | 1.18 | % | 1.20 | % | 1.05 | % | (2) | bps | 13 | bps | 1.23 | % | 0.89 | % | 34 | bps | |||||||||||||
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Net interest margin (FTE) – Non-GAAP
(a)
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1.18 | % | 1.20 | % | 1.05 | % | (2) | bps | 13 | bps | 1.23 | % | 0.90 | % | 33 | bps | |||||||||||||
| Average balances and interest rates | Quarter ended | ||||||||||||||||||||||||||||||||||||||||
| Sept. 30, 2023 | June 30, 2023 | Sept. 30, 2022 | |||||||||||||||||||||||||||||||||||||||
| (dollars in millions; average rates annualized) |
Average
balance |
Interest |
Average
rates |
Average
balance |
Interest |
Average
rates |
Average balance | Interest | Average rates | ||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits with the Federal Reserve and other central banks | $ | 98,767 | $ | 1,153 | 4.57 | % | $ | 114,578 | $ | 1,241 | 4.29 | % | $ | 91,836 | $ | 288 | 1.23 | % | |||||||||||||||||||||||
| Interest-bearing deposits with banks | 12,287 | 125 | 4.04 | 13,919 | 128 | 3.68 | 16,298 | 67 | 1.62 | ||||||||||||||||||||||||||||||||
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Federal funds sold and securities purchased under resale agreements
(a)
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26,915 | 2,066 | 30.47 | 26,989 | 1,776 | 26.38 | 22,971 | 321 | 5.55 | ||||||||||||||||||||||||||||||||
| Loans | 63,962 | 1,029 | 6.39 | 63,459 | 957 | 6.05 | 68,082 | 581 | 3.39 | ||||||||||||||||||||||||||||||||
| Securities: | |||||||||||||||||||||||||||||||||||||||||
| U.S. government obligations | 32,224 | 250 | 3.08 | 34,147 | 247 | 2.90 | 40,829 | 179 | 1.75 | ||||||||||||||||||||||||||||||||
| U.S. government agency obligations | 59,481 | 426 | 2.87 | 61,565 | 428 | 2.78 | 62,819 | 300 | 1.91 | ||||||||||||||||||||||||||||||||
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State and political subdivisions
(b)
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13 | 1 | 4.42 | 13 | — | 4.45 | 1,982 | 12 | 2.39 | ||||||||||||||||||||||||||||||||
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Other securities
(b)
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39,861 | 393 | 3.93 | 40,976 | 367 | 3.59 | 42,642 | 204 | 1.90 | ||||||||||||||||||||||||||||||||
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Total investment securities
(b)
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131,579 | 1,070 | 3.24 | 136,701 | 1,042 | 3.05 | 148,272 | 695 | 1.87 | ||||||||||||||||||||||||||||||||
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Trading securities
(b)
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5,534 | 76 | 5.49 | 6,403 | 81 | 5.02 | 4,603 | 35 | 3.06 | ||||||||||||||||||||||||||||||||
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Total securities
(b)
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137,113 | 1,146 | 3.33 | 143,104 | 1,123 | 3.14 | 152,875 | 730 | 1.91 | ||||||||||||||||||||||||||||||||
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Total interest-earning assets
(b)
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$ | 339,044 | $ | 5,519 | 6.45 | % | $ | 362,049 | $ | 5,225 | 5.77 | % | $ | 352,062 | $ | 1,987 | 2.24 | % | |||||||||||||||||||||||
| Noninterest-earning assets | 58,448 | 59,125 | 63,608 | ||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 397,492 | $ | 421,174 | $ | 415,670 | |||||||||||||||||||||||||||||||||||
| Liabilities and equity | |||||||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits | $ | 209,641 | $ | 1,911 | 3.62 | % | $ | 215,057 | $ | 1,739 | 3.24 | % | $ | 203,659 | $ | 488 | 0.95 | % | |||||||||||||||||||||||
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Federal funds purchased and securities sold under repurchase agreements
(a)
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21,512 | 1,956 | 36.07 | 26,282 | 1,729 | 26.39 | 12,297 | 250 | 8.05 | ||||||||||||||||||||||||||||||||
| Trading liabilities | 3,959 | 48 | 4.80 | 3,893 | 43 | 4.46 | 3,550 | 23 | 2.52 | ||||||||||||||||||||||||||||||||
| Other borrowed funds | 540 | 6 | 4.47 | 2,702 | 32 | 4.60 | 504 | 1 | 1.15 | ||||||||||||||||||||||||||||||||
| Commercial paper | 7 | — | 4.13 | 5 | — | 5.11 | 5 | — | 2.34 | ||||||||||||||||||||||||||||||||
| Payables to customers and broker-dealers | 13,515 | 147 | 4.30 | 14,801 | 143 | 3.85 | 18,030 | 48 | 1.07 | ||||||||||||||||||||||||||||||||
| Long-term debt | 31,161 | 435 | 5.52 | 31,970 | 438 | 5.45 | 28,449 | 248 | 3.43 | ||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | $ | 280,335 | $ | 4,503 | 6.37 | % | $ | 294,710 | $ | 4,124 | 5.61 | % | $ | 266,494 | $ | 1,058 | 1.57 | % | |||||||||||||||||||||||
| Total noninterest-bearing deposits | 52,467 | 62,152 | 84,804 | ||||||||||||||||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 23,790 | 23,625 | 23,547 | ||||||||||||||||||||||||||||||||||||||
| Total liabilities | 356,592 | 380,487 | 374,845 | ||||||||||||||||||||||||||||||||||||||
| Total The Bank of New York Mellon Corporation shareholders’ equity | 40,821 | 40,607 | 40,780 | ||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests | 79 | 80 | 45 | ||||||||||||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 397,492 | $ | 421,174 | $ | 415,670 | |||||||||||||||||||||||||||||||||||
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Net interest revenue (FTE) – Non-GAAP
(b)(c)
|
$ | 1,016 | $ | 1,101 | $ | 929 | |||||||||||||||||||||||||||||||||||
|
Net interest margin (FTE) – Non-GAAP
(b)(c)
|
1.18 | % | 1.20 | % | 1.05 | % | |||||||||||||||||||||||||||||||||||
| Less: Tax equivalent adjustment | — | 1 | 3 | ||||||||||||||||||||||||||||||||||||||
| Net interest revenue – GAAP | $ | 1,016 | $ | 1,100 | $ | 926 | |||||||||||||||||||||||||||||||||||
| Net interest margin – GAAP | 1.18 | % | 1.20 | % | 1.05 | % | |||||||||||||||||||||||||||||||||||
| Average balances and interest rates | Year-to-date | ||||||||||||||||||||||
| Sept. 30, 2023 | Sept. 30, 2022 | ||||||||||||||||||||||
| (dollars in millions; average rates annualized) | Average balance | Interest | Average rates | Average balance | Interest | Average rates | |||||||||||||||||
| Assets | |||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||
| Interest-bearing deposits with the Federal Reserve and other central banks | $ | 102,762 | $ | 3,247 | 4.17 | % | $ | 98,310 | $ | 389 | 0.52 | % | |||||||||||
| Interest-bearing deposits with banks | 14,129 | 393 | 3.72 | 17,189 | 114 | 0.88 | |||||||||||||||||
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Federal funds sold and securities purchased under resale agreements
(a)
|
26,187 | 4,833 | 24.68 | 24,715 | 474 | 2.56 | |||||||||||||||||
| Loans | 63,563 | 2,852 | 6.00 | 67,980 | 1,211 | 2.38 | |||||||||||||||||
| Securities: | |||||||||||||||||||||||
| U.S. government obligations | 35,050 | 776 | 2.95 | 40,988 | 363 | 1.19 | |||||||||||||||||
| U.S. government agency obligations | 61,098 | 1,259 | 2.75 | 64,922 | 803 | 1.65 | |||||||||||||||||
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State and political subdivisions
(b)
|
16 | 1 | 5.71 | 2,126 | 36 | 2.22 | |||||||||||||||||
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Other securities
(b)
|
41,080 | 1,098 | 3.57 | 43,929 | 461 | 1.40 | |||||||||||||||||
|
Total investment securities
(b)
|
137,244 | 3,134 | 3.05 | 151,965 | 1,663 | 1.46 | |||||||||||||||||
|
Trading securities
(b)
|
5,904 | 227 | 5.15 | 5,120 | 79 | 2.07 | |||||||||||||||||
|
Total securities
(b)
|
143,148 | 3,361 | 3.13 | 157,085 | 1,742 | 1.48 | |||||||||||||||||
|
Total interest-earning assets
(b)
|
$ | 349,789 | $ | 14,686 | 5.59 | % | $ | 365,279 | $ | 3,930 | 1.44 | % | |||||||||||
| Noninterest-earning assets | 58,896 | 65,795 | |||||||||||||||||||||
| Total assets | $ | 408,685 | $ | 431,074 | |||||||||||||||||||
| Liabilities and equity | |||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||
| Interest-bearing deposits | $ | 209,624 | $ | 5,016 | 3.20 | % | $ | 215,271 | $ | 541 | 0.34 | % | |||||||||||
|
Federal funds purchased and securities sold under repurchase agreements
(a)
|
22,048 | 4,577 | 27.75 | 12,589 | 339 | 3.60 | |||||||||||||||||
| Trading liabilities | 3,629 | 121 | 4.47 | 3,385 | 37 | 1.46 | |||||||||||||||||
| Other borrowed funds | 1,317 | 41 | 4.08 | 467 | 6 | 1.85 | |||||||||||||||||
| Commercial paper | 4 | — | 4.55 | 5 | — | 1.41 | |||||||||||||||||
| Payables to customers and broker-dealers | 15,077 | 418 | 3.70 | 17,099 | 57 | 0.45 | |||||||||||||||||
| Long-term debt | 31,129 | 1,268 | 5.39 | 26,754 | 493 | 2.44 | |||||||||||||||||
| Total interest-bearing liabilities | $ | 282,828 | $ | 11,441 | 5.40 | % | $ | 275,570 | $ | 1,473 | 0.71 | % | |||||||||||
| Total noninterest-bearing deposits | 61,438 | 88,952 | |||||||||||||||||||||
| Other noninterest-bearing liabilities | 23,734 | 25,097 | |||||||||||||||||||||
| Total liabilities | 368,000 | 389,619 | |||||||||||||||||||||
| Total The Bank of New York Mellon Corporation shareholders’ equity | 40,625 | 41,321 | |||||||||||||||||||||
| Noncontrolling interests | 60 | 134 | |||||||||||||||||||||
| Total liabilities and equity | $ | 408,685 | $ | 431,074 | |||||||||||||||||||
|
Net interest revenue (FTE) – Non-GAAP
(b)(c)
|
$ | 3,245 | $ | 2,457 | |||||||||||||||||||
|
Net interest margin (FTE) – Non-GAAP
(b)(c)
|
1.23 | % | 0.90 | % | |||||||||||||||||||
| Less: Tax equivalent adjustment | 1 | 9 | |||||||||||||||||||||
| Net interest revenue – GAAP | $ | 3,244 | $ | 2,448 | |||||||||||||||||||
| Net interest margin – GAAP | 1.23 | % | 0.89 | % | |||||||||||||||||||
| Noninterest expense | YTD23 | ||||||||||||||||||||||||||||
| 3Q23 vs. | vs. | ||||||||||||||||||||||||||||
| (dollars in millions) | 3Q23 | 2Q23 | 3Q22 | 2Q23 | 3Q22 | YTD23 | YTD22 | YTD22 | |||||||||||||||||||||
| Staff | $ | 1,755 | $ | 1,718 | $ | 1,673 | 2 | % | 5 | % | $ | 5,264 | $ | 4,998 | 5 | % | |||||||||||||
| Software and equipment | 452 | 450 | 421 | — | 7 | 1,331 | 1,225 | 9 | |||||||||||||||||||||
| Professional, legal and other purchased services | 368 | 378 | 363 | (3) | 1 | 1,121 | 1,112 | 1 | |||||||||||||||||||||
| Net occupancy | 140 | 121 | 124 | 16 | 13 | 380 | 371 | 2 | |||||||||||||||||||||
| Sub-custodian and clearing | 121 | 119 | 124 | 2 | (2) | 358 | 373 | (4) | |||||||||||||||||||||
| Distribution and servicing | 87 | 93 | 88 | (6) | (1) | 265 | 257 | 3 | |||||||||||||||||||||
| Business development | 36 | 47 | 34 | (23) | 6 | 122 | 107 | 14 | |||||||||||||||||||||
| Bank assessment charges | 37 | 41 | 35 | (10) | 6 | 118 | 107 | 10 | |||||||||||||||||||||
| Goodwill impairment | — | — | 680 | N/M | N/M | — | 680 | N/M | |||||||||||||||||||||
| Amortization of intangible assets | 15 | 14 | 17 | 7 | (12) | 43 | 51 | (16) | |||||||||||||||||||||
| Other | 78 | 130 | 120 | (40) | (35) | 298 | 516 | (42) | |||||||||||||||||||||
| Total noninterest expense | $ | 3,089 | $ | 3,111 | $ | 3,679 | (1) | % | (16) | % | $ | 9,300 | $ | 9,797 | (5) | % | |||||||||||||
| Full-time employees at period end | 53,600 | 53,200 | 51,100 | 1 | % | 5 | % | 53,600 | 51,100 | 5 | % | ||||||||||||||||||
| YTD23 | ||||||||||||||||||||||||||||||||||||||
| (dollars in millions, unless otherwise noted) | 3Q23 vs. | vs. | ||||||||||||||||||||||||||||||||||||
| 3Q23 | 2Q23 | 1Q23 | 4Q22 | 3Q22 | 2Q23 | 3Q22 | YTD23 | YTD22 | YTD22 | |||||||||||||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||||||||||||||||
| Investment services fees: | ||||||||||||||||||||||||||||||||||||||
| Asset Servicing | $ | 984 | $ | 991 | $ | 948 | $ | 971 | $ | 953 | (1) | % | 3 | % | $ | 2,923 | $ | 2,947 | (1) | % | ||||||||||||||||||
| Issuer Services | 281 | 319 | 236 | 271 | 288 | (12) | (2) | 836 | 738 | 13 | ||||||||||||||||||||||||||||
| Total investment services fees | 1,265 | 1,310 | 1,184 | 1,242 | 1,241 | (3) | 2 | 3,759 | 3,685 | 2 | ||||||||||||||||||||||||||||
| Foreign exchange revenue | 107 | 124 | 139 | 149 | 132 | (14) | (19) | 370 | 435 | (15) | ||||||||||||||||||||||||||||
|
Other fees
(a)
|
52 | 54 | 55 | 55 | 52 | (4) | — | 161 | 147 | 10 | ||||||||||||||||||||||||||||
| Total fee revenue | 1,424 | 1,488 | 1,378 | 1,446 | 1,425 | (4) | — | 4,290 | 4,267 | 1 | ||||||||||||||||||||||||||||
| Investment and other revenue | 65 | 84 | 72 | 70 | 111 | N/M | N/M | 221 | 221 | N/M | ||||||||||||||||||||||||||||
| Total fee and other revenue | 1,489 | 1,572 | 1,450 | 1,516 | 1,536 | (5) | (3) | 4,511 | 4,488 | 1 | ||||||||||||||||||||||||||||
| Net interest revenue | 600 | 668 | 666 | 656 | 538 | (10) | 12 | 1,934 | 1,372 | 41 | ||||||||||||||||||||||||||||
| Total revenue | 2,089 | 2,240 | 2,116 | 2,172 | 2,074 | (7) | 1 | 6,445 | 5,860 | 10 | ||||||||||||||||||||||||||||
| Provision for credit losses | 19 | 16 | — | 11 | (6) | N/M | N/M | 35 | (3) | N/M | ||||||||||||||||||||||||||||
| Noninterest expense (excluding amortization of intangible assets) | 1,577 | 1,575 | 1,548 | 1,568 | 1,549 | — | 2 | 4,700 | 4,698 | — | ||||||||||||||||||||||||||||
| Amortization of intangible assets | 8 | 7 | 8 | 8 | 8 | 14 | — | 23 | 25 | (8) | ||||||||||||||||||||||||||||
| Total noninterest expense | 1,585 | 1,582 | 1,556 | 1,576 | 1,557 | — | 2 | 4,723 | 4,723 | — | ||||||||||||||||||||||||||||
| Income before income taxes | $ | 485 | $ | 642 | $ | 560 | $ | 585 | $ | 523 | (24) | % | (7) | % | $ | 1,687 | $ | 1,140 | 48 | % | ||||||||||||||||||
| Pre-tax operating margin | 23 | % | 29 | % | 26 | % | 27 | % | 25 | % | 26 | % | 19 | % | ||||||||||||||||||||||||
|
Securities lending revenue
(b)
|
$ | 46 | $ | 47 | $ | 48 | $ | 50 | $ | 48 | (2) | % | (4) | % | $ | 141 | $ | 132 | 7 | % | ||||||||||||||||||
|
Total revenue by line of business
:
|
||||||||||||||||||||||||||||||||||||||
| Asset Servicing | $ | 1,593 | $ | 1,706 | $ | 1,664 | $ | 1,681 | $ | 1,596 | (7) | % | — | % | $ | 4,963 | $ | 4,642 | 7 | % | ||||||||||||||||||
| Issuer Services | 496 | 534 | 452 | 491 | 478 | (7) | 4 | 1,482 | 1,218 | 22 | ||||||||||||||||||||||||||||
| Total revenue by line of business | $ | 2,089 | $ | 2,240 | $ | 2,116 | $ | 2,172 | $ | 2,074 | (7) | % | 1 | % | $ | 6,445 | $ | 5,860 | 10 | % | ||||||||||||||||||
|
Selected average balances
:
|
||||||||||||||||||||||||||||||||||||||
| Average loans | $ | 11,236 | $ | 11,283 | $ | 10,939 | $ | 11,850 | $ | 11,573 | — | % | (3) | % | $ | 11,154 | $ | 11,042 | 1 | % | ||||||||||||||||||
| Average deposits | $ | 162,509 | $ | 172,863 | $ | 167,209 | $ | 176,541 | $ | 176,328 | (6) | % | (8) | % | $ | 167,510 | $ | 186,500 | (10) | % | ||||||||||||||||||
|
Selected metrics
:
|
||||||||||||||||||||||||||||||||||||||
|
AUC/A at period end
(in trillions) (c)
|
$ | 32.3 | $ | 33.2 | $ | 32.6 | $ | 31.4 | $ | 30.0 | (3) | % | 8 | % | ||||||||||||||||||||||||
|
Market value of securities on loan at period end
(in billions) (d)
|
$ | 406 | $ | 415 | $ | 441 | $ | 449 | $ | 435 | (2) | % | (7) | % | ||||||||||||||||||||||||
| YTD23 | |||||||||||||||||||||||||||||||||||
| (dollars in millions, unless otherwise noted) | 3Q23 vs. | vs. | |||||||||||||||||||||||||||||||||
| 3Q23 | 2Q23 | 1Q23 | 4Q22 | 3Q22 | 2Q23 | 3Q22 | YTD23 | YTD22 | YTD22 | ||||||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||||||||||
| Investment services fees: | |||||||||||||||||||||||||||||||||||
| Pershing | $ | 506 | $ | 496 | $ | 499 | $ | 502 | $ | 494 | 2 | % | 2 | % | $ | 1,501 | $ | 1,406 | 7 | % | |||||||||||||||
| Treasury Services | 172 | 172 | 168 | 170 | 173 | — | (1) | 512 | 519 | (1) | |||||||||||||||||||||||||
| Clearance and Collateral Management | 277 | 265 | 260 | 249 | 239 | 5 | 16 | 802 | 722 | 11 | |||||||||||||||||||||||||
| Total investment services fees | 955 | 933 | 927 | 921 | 906 | 2 | 5 | 2,815 | 2,647 | 6 | |||||||||||||||||||||||||
| Foreign exchange revenue | 21 | 21 | 18 | 20 | 20 | — | 5 | 60 | 68 | (12) | |||||||||||||||||||||||||
|
Other fees
(a)
|
51 | 55 | 54 | 47 | 49 | (7) | 4 | 160 | 129 | 24 | |||||||||||||||||||||||||
| Total fee revenue | 1,027 | 1,009 | 999 | 988 | 975 | 2 | 5 | 3,035 | 2,844 | 7 | |||||||||||||||||||||||||
| Investment and other revenue | 16 | 16 | 15 | 15 | 14 | N/M | N/M | 47 | 25 | N/M | |||||||||||||||||||||||||
| Total fee and other revenue | 1,043 | 1,025 | 1,014 | 1,003 | 989 | 2 | 5 | 3,082 | 2,869 | 7 | |||||||||||||||||||||||||
| Net interest revenue | 402 | 420 | 453 | 396 | 378 | (4) | 6 | 1,275 | 1,014 | 26 | |||||||||||||||||||||||||
| Total revenue | 1,445 | 1,445 | 1,467 | 1,399 | 1,367 | — | 6 | 4,357 | 3,883 | 12 | |||||||||||||||||||||||||
| Provision for credit losses | 6 | 7 | — | 6 | (1) | N/M | N/M | 13 | 1 | N/M | |||||||||||||||||||||||||
| Noninterest expense (excluding amortization of intangible assets) | 806 | 779 | 768 | 783 | 735 | 3 | 10 | 2,353 | 2,141 | 10 | |||||||||||||||||||||||||
| Amortization of intangible assets | 2 | 2 | 1 | 2 | 2 | — | — | 5 | 6 | (17) | |||||||||||||||||||||||||
| Total noninterest expense | 808 | 781 | 769 | 785 | 737 | 3 | 10 | 2,358 | 2,147 | 10 | |||||||||||||||||||||||||
| Income before income taxes | $ | 631 | $ | 657 | $ | 698 | $ | 608 | $ | 631 | (4) | % | — | % | $ | 1,986 | $ | 1,735 | 14 | % | |||||||||||||||
| Pre-tax operating margin | 44 | % | 46 | % | 48 | % | 43 | % | 46 | % | 46 | % | 45 | % | |||||||||||||||||||||
|
Total revenue by line of business
:
|
|||||||||||||||||||||||||||||||||||
| Pershing | $ | 699 | $ | 686 | $ | 693 | $ | 673 | $ | 658 | 2 | % | 6 | % | $ | 2,078 | $ | 1,864 | 11 | % | |||||||||||||||
| Treasury Services | 389 | 402 | 412 | 382 | 390 | (3) | — | 1,203 | 1,101 | 9 | |||||||||||||||||||||||||
| Clearance and Collateral Management | 357 | 357 | 362 | 344 | 319 | — | 12 | 1,076 | 918 | 17 | |||||||||||||||||||||||||
| Total revenue by line of business | $ | 1,445 | $ | 1,445 | $ | 1,467 | $ | 1,399 | $ | 1,367 | — | % | 6 | % | $ | 4,357 | $ | 3,883 | 12 | % | |||||||||||||||
|
Selected average balances
:
|
|||||||||||||||||||||||||||||||||||
| Average loans | $ | 37,496 | $ | 36,432 | $ | 36,854 | $ | 39,843 | $ | 40,882 | 3 | % | (8) | % | $ | 36,930 | $ | 41,791 | (12) | % | |||||||||||||||
| Average deposits | $ | 84,000 | $ | 85,407 | $ | 86,040 | $ | 86,083 | $ | 90,612 | (2) | % | (7) | % | $ | 85,141 | $ | 93,658 | (9) | % | |||||||||||||||
|
Selected metrics
:
|
|||||||||||||||||||||||||||||||||||
|
AUC/A at period end
(in trillions) (b)
|
$ | 13.1 | $ | 13.4 | $ | 13.7 | $ | 12.7 | $ | 12.0 | (2) | % | 9 | % | |||||||||||||||||||||
|
Pershing
:
|
|||||||||||||||||||||||||||||||||||
|
AUC/A at period end
(in trillions)
|
$ | 2.4 | $ | 2.4 | $ | 2.4 | $ | 2.3 | $ | 2.1 | — | % | 14 | % | |||||||||||||||||||||
|
Net new assets (U.S. platform)
(in billions) (c)
|
$ | 23 | $ | (34) | $ | 37 | $ | 42 | $ | 45 | N/M | N/M | |||||||||||||||||||||||
|
Average active clearing accounts
(in thousands)
|
7,979 | 7,946 | 7,849 | 7,603 | 7,466 | — | % | 7 | % | ||||||||||||||||||||||||||
|
Treasury Services
:
|
|||||||||||||||||||||||||||||||||||
| Average daily U.S. dollar payment volumes | 233,620 | 233,931 | 236,322 | 246,189 | 234,468 | — | % | — | % | ||||||||||||||||||||||||||
|
Clearance and Collateral Management
:
|
|||||||||||||||||||||||||||||||||||
|
Average tri-party collateral management balances
(in billions)
|
$ | 5,706 | $ | 6,044 | $ | 5,626 | $ | 5,451 | $ | 5,457 | (6) | % | 5 | % | |||||||||||||||||||||
| YTD23 | |||||||||||||||||||||||||||||||||||||||||
| 3Q23 vs. | vs. | ||||||||||||||||||||||||||||||||||||||||
| (dollars in millions) | 3Q23 | 2Q23 | 1Q23 | 4Q22 | 3Q22 | 2Q23 | 3Q22 | YTD23 | YTD22 | YTD22 | |||||||||||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||||||||||||||||
| Investment management fees | $ | 746 | $ | 750 | $ | 752 | $ | 754 | $ | 788 | (1) | % | (5) | % | $ | 2,248 | $ | 2,461 | (9) | % | |||||||||||||||||||||
| Performance fees | 30 | 10 | 22 | 26 | 10 | N/M | N/M | 62 | 49 | 27 | |||||||||||||||||||||||||||||||
|
Investment management and performance fees
(a)
|
776 | 760 | 774 | 780 | 798 | 2 | (3) | 2,310 | 2,510 | (8) | |||||||||||||||||||||||||||||||
| Distribution and servicing fees | 62 | 58 | 55 | 54 | 55 | 7 | 13 | 175 | 138 | 27 | |||||||||||||||||||||||||||||||
|
Other fees
(b)
|
(50) | (56) | (53) | (58) | (45) | N/M | N/M | (159) | (75) | N/M | |||||||||||||||||||||||||||||||
| Total fee revenue | 788 | 762 | 776 | 776 | 808 | 3 | (2) | 2,326 | 2,573 | (10) | |||||||||||||||||||||||||||||||
|
Investment and other
revenue
(c)
|
1 | 12 | 6 | (3) | (3) | N/M | N/M | 19 | (24) | N/M | |||||||||||||||||||||||||||||||
|
Total fee and other
revenue
(c)
|
789 | 774 | 782 | 773 | 805 | 2 | (2) | 2,345 | 2,549 | (8) | |||||||||||||||||||||||||||||||
| Net interest revenue | 38 | 39 | 45 | 52 | 57 | (3) | (33) | 122 | 176 | (31) | |||||||||||||||||||||||||||||||
| Total revenue | 827 | 813 | 827 | 825 | 862 | 2 | (4) | 2,467 | 2,725 | (9) | |||||||||||||||||||||||||||||||
| Provision for credit losses | (9) | 7 | — | 1 | 3 | N/M | N/M | (2) | — | N/M | |||||||||||||||||||||||||||||||
| Noninterest expense (excluding goodwill impairment and amortization of intangible assets) | 667 | 672 | 729 | 693 | 669 | (1) | — | 2,068 | 2,102 | (2) | |||||||||||||||||||||||||||||||
| Goodwill impairment | — | — | — | — | 680 | N/M | N/M | — | 680 | N/M | |||||||||||||||||||||||||||||||
| Amortization of intangible assets | 5 | 5 | 5 | 6 | 7 | — | (29) | 15 | 20 | (25) | |||||||||||||||||||||||||||||||
| Total noninterest expense | 672 | 677 | 734 | 699 | 1,356 | (1) | (50) | 2,083 | 2,802 | (26) | |||||||||||||||||||||||||||||||
| Income (loss) before income taxes | $ | 164 | $ | 129 | $ | 93 | $ | 125 | $ | (497) | 27 | % | N/M | $ | 386 | $ | (77) | N/M | |||||||||||||||||||||||
| Pre-tax operating margin | 20 | % | 16 | % | 11 | % | 15 | % | (57) | % | 16 | % | (3) | % | |||||||||||||||||||||||||||
|
Adjusted pre-tax operating margin
–
Non-GAAP
(d)
|
22 | % | 18 | % | 13 | % | 17 | % | (64) | % | (e) | 18 | % | (3) | % | (e) | |||||||||||||||||||||||||
|
Total revenue by line of business
:
|
|||||||||||||||||||||||||||||||||||||||||
| Investment Management | $ | 557 | $ | 546 | $ | 557 | $ | 550 | $ | 579 | 2 | % | (4) | % | $ | 1,660 | $ | 1,840 | (10) | % | |||||||||||||||||||||
| Wealth Management | 270 | 267 | 270 | 275 | 283 | 1 | (5) | 807 | 885 | (9) | |||||||||||||||||||||||||||||||
| Total revenue by line of business | $ | 827 | $ | 813 | $ | 827 | $ | 825 | $ | 862 | 2 | % | (4) | % | $ | 2,467 | $ | 2,725 | (9) | % | |||||||||||||||||||||
|
Average balances
:
|
|||||||||||||||||||||||||||||||||||||||||
| Average loans | $ | 13,519 | $ | 13,995 | $ | 13,960 | $ | 14,404 | $ | 14,482 | (3) | % | (7) | % | $ | 13,823 | $ | 13,937 | (1) | % | |||||||||||||||||||||
| Average deposits | $ | 13,578 | $ | 15,410 | $ | 16,144 | $ | 16,416 | $ | 17,225 | (12) | % | (21) | % | $ | 15,035 | $ | 20,157 | (25) | % | |||||||||||||||||||||
| AUM trends | 3Q23 vs. | ||||||||||||||||||||||
| (dollars in billions) | 3Q23 | 2Q23 | 1Q23 | 4Q22 | 3Q22 | 2Q23 | 3Q22 | ||||||||||||||||
|
AUM by product type:
(a)
|
|||||||||||||||||||||||
| Equity | $ | 133 | $ | 145 | $ | 142 | $ | 135 | $ | 125 | (8) | % | 6 | % | |||||||||
| Fixed income | 190 | 203 | 207 | 198 | 205 | (6) | (7) | ||||||||||||||||
| Index | 425 | 440 | 408 | 395 | 366 | (3) | 16 | ||||||||||||||||
| Liability-driven investments | 534 | 579 | 604 | 570 | 546 | (8) | (2) | ||||||||||||||||
| Multi-asset and alternative investments | 156 | 162 | 161 | 153 | 181 | (4) | (14) | ||||||||||||||||
| Cash | 383 | 377 | 386 | 385 | 353 | 2 | 8 | ||||||||||||||||
| Total AUM | $ | 1,821 | $ | 1,906 | $ | 1,908 | $ | 1,836 | $ | 1,776 | (4) | % | 3 | % | |||||||||
|
Changes in AUM:
(a)
|
|||||||||||||||||||||||
| Beginning balance of AUM | $ | 1,906 | $ | 1,908 | $ | 1,836 | $ | 1,776 | $ | 1,937 | |||||||||||||
| Net inflows (outflows): | |||||||||||||||||||||||
| Long-term strategies: | |||||||||||||||||||||||
| Equity | (3) | (3) | (4) | (5) | (5) | ||||||||||||||||||
| Fixed income | (7) | (4) | 4 | (12) | (3) | ||||||||||||||||||
| Liability-driven investments | 1 | (3) | 10 | 19 | 30 | ||||||||||||||||||
| Multi-asset and alternative investments | (4) | (1) | (3) | (4) | 2 | ||||||||||||||||||
| Total long-term active strategies (outflows) inflows | (13) | (11) | 7 | (2) | 24 | ||||||||||||||||||
| Index | (2) | 2 | (2) | (4) | (1) | ||||||||||||||||||
| Total long-term strategies (outflows) inflows | (15) | (9) | 5 | (6) | 23 | ||||||||||||||||||
| Short-term strategies: | |||||||||||||||||||||||
| Cash | 7 | (9) | — | 27 | (2) | ||||||||||||||||||
| Total net (outflows) inflows | (8) | (18) | 5 | 21 | 21 | ||||||||||||||||||
| Net market impact | (50) | (3) | 52 | 18 | (118) | ||||||||||||||||||
| Net currency impact | (27) | 19 | 15 | 53 | (64) | ||||||||||||||||||
| Divestiture | — | — | — | (32) | — | ||||||||||||||||||
| Ending balance of AUM | $ | 1,821 | $ | 1,906 | $ | 1,908 | $ | 1,836 | $ | 1,776 | (4) | % | 3 | % | |||||||||
|
Wealth Management client assets
(b)
|
$ | 292 | $ | 286 | $ | 279 | $ | 269 | $ | 256 | 2 | % | 14 | % | |||||||||
| (in millions) | 3Q23 | 2Q23 | 1Q23 | 4Q22 | 3Q22 | YTD23 | YTD22 | ||||||||||||||||
| Fee revenue | $ | 6 | $ | (2) | $ | 3 | $ | 12 | $ | 28 | $ | 7 | $ | 49 | |||||||||
| Investment and other revenue | 28 | (16) | (14) | (442) | (5) | (2) | 69 | ||||||||||||||||
| Total fee and other revenue | 34 | (18) | (11) | (430) | 23 | 5 | 118 | ||||||||||||||||
| Net interest expense | (24) | (27) | (36) | (48) | (47) | (87) | (114) | ||||||||||||||||
| Total revenue | 10 | (45) | (47) | (478) | (24) | (82) | 4 | ||||||||||||||||
| Provision for credit losses | (13) | (25) | 27 | 2 | (26) | (11) | 21 | ||||||||||||||||
| Noninterest expense | 24 | 71 | 41 | 153 | 29 | 136 | 125 | ||||||||||||||||
| (Loss) before income taxes | $ | (1) | $ | (91) | $ | (115) | $ | (633) | $ | (27) | $ | (207) | $ | (142) | |||||||||
| Average loans and leases | $ | 1,711 | $ | 1,749 | $ | 1,508 | $ | 1,267 | $ | 1,145 | $ | 1,656 | $ | 1,210 | |||||||||
|
Critical accounting estimates
|
Reference | ||||
| Allowance for credit losses | 2022 Annual Report, pages 23-25, and “Allowance for credit losses.” | ||||
| Goodwill and other intangibles | 2022 Annual Report, pages 25-27. Also see below. | ||||
| Litigation and regulatory contingencies | “Legal proceedings” in Note 18 of the Notes to Consolidated Financial Statements. | ||||
|
Country risk exposure at Sept. 30, 2023
|
Interest-bearing deposits | Total exposure | |||||||||||||||||||||||||||||||||
| (in billions) |
Central
banks |
Banks |
Lending
(a)
|
Securities
(b)
|
Other
(c)
|
||||||||||||||||||||||||||||||
| Top 10 country exposure: | |||||||||||||||||||||||||||||||||||
| Germany | $ | 17.0 | $ | 0.7 | $ | 0.9 | $ | 3.9 | $ | 0.3 | $ | 22.8 | |||||||||||||||||||||||
| United Kingdom (“UK”) | 10.7 | 0.7 | 1.7 | 2.9 | 2.3 | 18.3 | |||||||||||||||||||||||||||||
| Japan | 8.2 | 1.0 | — | 0.4 | 0.3 | 9.9 | |||||||||||||||||||||||||||||
| Belgium | 7.8 | 0.9 | 0.1 | 0.7 | — | 9.5 | |||||||||||||||||||||||||||||
| Canada | — | 1.8 | 0.4 | 3.9 | 1.3 | 7.4 | |||||||||||||||||||||||||||||
| Australia | — | 2.0 | 0.3 | 0.7 | 0.5 | 3.5 | |||||||||||||||||||||||||||||
| South Korea | 0.1 | — | 2.2 | 0.2 | 0.5 | 3.0 | |||||||||||||||||||||||||||||
| Luxembourg | 0.1 | 0.1 | 1.5 | — | 1.2 | 2.9 | |||||||||||||||||||||||||||||
| France | — | — | 0.2 | 1.8 | 0.7 | 2.7 | |||||||||||||||||||||||||||||
| Ireland | 0.1 | 0.1 | 0.4 | — | 1.6 | 2.2 | |||||||||||||||||||||||||||||
| Total Top 10 country exposure | $ | 44.0 | $ | 7.3 | $ | 7.7 | $ | 14.5 | $ | 8.7 | $ | 82.2 | (d) | ||||||||||||||||||||||
| Select country exposure: | |||||||||||||||||||||||||||||||||||
| Brazil | $ | — | $ | — | $ | 0.9 | $ | 0.1 | $ | 0.3 | $ | 1.3 | |||||||||||||||||||||||
| Russia | — | 0.4 | (e) | — | — | — | 0.4 | ||||||||||||||||||||||||||||
| Securities portfolio | June 30, 2023 |
3Q23
change in
unrealized
gain (loss)
|
Sept. 30, 2023 |
Fair value as a % of amortized
cost
(a)
|
Unrealized
gain (loss) |
% Floating
rate
(b)
|
Ratings
(c)
|
||||||||||||||||||||||||||||||||||||||||||||||
|
BBB+/
BBB- |
BB+
and lower |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in millions) |
Fair
value |
Amortized
cost
(a)
|
Fair
value |
AAA/
AA- |
A+/
A- |
Not
rated |
|||||||||||||||||||||||||||||||||||||||||||||||
| Agency RMBS | $ | 38,052 | $ | (961) | $ | 41,341 | $ | 35,850 | 87 | % | $ | (5,491) | 18 | % | 100 | % | — | % | — | % | — | % | — | % | |||||||||||||||||||||||||||||
| U.S. Treasury | 33,818 | 18 | 32,689 | 31,439 | 96 | (1,250) | 59 | 100 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Agency commercial mortgage-backed securities (“MBS”) | 11,441 | (64) | 11,739 | 10,927 | 93 | (812) | 45 | 100 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
|
Sovereign debt/sovereign guaranteed
(d)
|
10,662 | 75 | 10,648 | 10,168 | 95 | (480) | 28 | 90 | 5 | 4 | 1 | — | |||||||||||||||||||||||||||||||||||||||||
| Supranational | 8,742 | 24 | 8,498 | 8,239 | 97 | (259) | 65 | 100 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| CLOs | 6,765 | 48 | 6,948 | 6,908 | 99 | (40) | 100 | 100 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| U.S. government agencies | 6,745 | (66) | 7,213 | 6,630 | 92 | (583) | 43 | 100 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
|
Foreign covered bonds
(e)
|
6,133 | 22 | 6,364 | 6,137 | 96 | (227) | 59 | 100 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Non-agency commercial MBS | 3,031 | (6) | 3,315 | 3,012 | 91 | (303) | 55 | 100 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
|
Foreign government agencies/local governments
(f)
|
2,380 | 29 | 2,334 | 2,243 | 96 | (91) | 40 | 92 | 8 | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Non-agency RMBS | 1,895 | (27) | 1,953 | 1,763 | 90 | (190) | 47 | 85 | 3 | — | 6 | 6 | |||||||||||||||||||||||||||||||||||||||||
| Other asset-backed securities (“ABS”) | 1,043 | 6 | 1,026 | 922 | 90 | (104) | 14 | 100 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| State and political subdivisions | 11 | (1) | 12 | 10 | 85 | (2) | — | — | — | 3 | — | 97 | |||||||||||||||||||||||||||||||||||||||||
| Other | 1 | — | 1 | 1 | 100 | — | — | — | — | — | — | 100 | |||||||||||||||||||||||||||||||||||||||||
| Total securities | $ | 130,719 | (g) | $ | (903) | $ | 134,081 | $ | 124,249 | (g) | 93 | % | $ | (9,832) | (g)(h) | 44 | % | 99 | % | 1 | % | — | % | — | % | — | % | ||||||||||||||||||||||||||
|
Amortizable purchase premium (net of discount) and net amortization of securities
(a)
|
||||||||||||||||||||||||||
| (in millions) | 3Q23 | 2Q23 | 3Q22 | |||||||||||||||||||||||
| Amortizable purchase premium, net of discount | $ | 973 | $ | 1,028 | $ | 1,386 | ||||||||||||||||||||
| Net amortization | $ | 45 | $ | 42 | $ | 82 | ||||||||||||||||||||
| Total exposure – consolidated | Sept. 30, 2023 | Dec. 31, 2022 | |||||||||||||||||||||
| (in billions) | Loans |
Unfunded
commitments |
Total
exposure |
Loans |
Unfunded
commitments |
Total
exposure |
|||||||||||||||||
| Financial institutions | $ | 10.4 | $ | 31.8 | $ | 42.2 | $ | 9.7 | $ | 31.7 | $ | 41.4 | |||||||||||
| Commercial | 1.9 | 11.4 | 13.3 | 1.7 | 11.7 | 13.4 | |||||||||||||||||
| Wealth management loans | 9.4 | 0.6 | 10.0 | 10.3 | 0.6 | 10.9 | |||||||||||||||||
| Wealth management mortgages | 9.2 | 0.2 | 9.4 | 9.0 | 0.2 | 9.2 | |||||||||||||||||
| Commercial real estate | 6.7 | 3.4 | 10.1 | 6.2 | 3.9 | 10.1 | |||||||||||||||||
| Lease financings | 0.6 | — | 0.6 | 0.7 | — | 0.7 | |||||||||||||||||
| Other residential mortgages | 1.0 | — | 1.0 | 0.4 | — | 0.4 | |||||||||||||||||
| Overdrafts | 3.6 | — | 3.6 | 4.8 | — | 4.8 | |||||||||||||||||
| Capital call financing | 3.5 | 3.2 | 6.7 | 3.4 | 3.5 | 6.9 | |||||||||||||||||
| Other | 2.8 | — | 2.8 | 3.0 | — | 3.0 | |||||||||||||||||
| Margin loans | 17.2 | — | 17.2 | 16.9 | — | 16.9 | |||||||||||||||||
| Total | $ | 66.3 | $ | 50.6 | $ | 116.9 | $ | 66.1 | $ | 51.6 | $ | 117.7 | |||||||||||
|
Financial institutions
portfolio exposure
(dollars in billions)
|
Sept. 30, 2023 | Dec. 31, 2022 | |||||||||||||||||||||||||||
|
Loans |
Unfunded
commitments |
Total
exposure |
% Inv.
grade |
% due
<1 yr. |
Loans |
Unfunded
commitments |
Total
exposure |
||||||||||||||||||||||
| Securities industry | $ | 1.7 | $ | 17.2 | $ | 18.9 | 95 | % | 99 | % | $ | 1.6 | $ | 17.5 | $ | 19.1 | |||||||||||||
| Asset managers | 1.5 | 8.0 | 9.5 | 97 | 81 | 1.6 | 7.6 | 9.2 | |||||||||||||||||||||
| Banks | 6.8 | 1.5 | 8.3 | 85 | 97 | 6.1 | 1.5 | 7.6 | |||||||||||||||||||||
| Insurance | 0.1 | 3.9 | 4.0 | 100 | 12 | 0.1 | 3.8 | 3.9 | |||||||||||||||||||||
| Government | — | 0.2 | 0.2 | 100 | 42 | — | 0.2 | 0.2 | |||||||||||||||||||||
| Other | 0.3 | 1.0 | 1.3 | 97 | 30 | 0.3 | 1.1 | 1.4 | |||||||||||||||||||||
| Total | $ | 10.4 | $ | 31.8 | $ | 42.2 | 94 | % | 84 | % | $ | 9.7 | $ | 31.7 | $ | 41.4 | |||||||||||||
| Commercial portfolio exposure | Sept. 30, 2023 | Dec. 31, 2022 | |||||||||||||||||||||||||||
|
(dollars in billions) |
Loans |
Unfunded
commitments |
Total
exposure |
% Inv.
grade |
% due
<1 yr. |
Loans |
Unfunded
commitments |
Total
exposure |
|||||||||||||||||||||
| Services and other | $ | 1.1 | $ | 3.4 | $ | 4.5 | 98 | % | 34 | % | $ | 0.8 | $ | 3.2 | $ | 4.0 | |||||||||||||
| Manufacturing | 0.5 | 3.6 | 4.1 | 96 | 15 | 0.5 | 4.1 | 4.6 | |||||||||||||||||||||
| Energy and utilities | 0.3 | 3.7 | 4.0 | 91 | 5 | 0.3 | 3.7 | 4.0 | |||||||||||||||||||||
| Media and telecom | — | 0.7 | 0.7 | 87 | — | 0.1 | 0.7 | 0.8 | |||||||||||||||||||||
| Total | $ | 1.9 | $ | 11.4 | $ | 13.3 | 95 | % | 18 | % | $ | 1.7 | $ | 11.7 | $ | 13.4 | |||||||||||||
| Percentage of the portfolios that are investment grade | ||||||||||||||||||||||||||
| Quarter ended | ||||||||||||||||||||||||||
| Sept. 30, 2023 | June 30, 2023 | March 31, 2023 | Dec. 31, 2022 | Sept. 30, 2022 | ||||||||||||||||||||||
| Financial institutions | 94 | % | 94 | % | 95 | % | 95 | % | 96 | % | ||||||||||||||||
| Commercial | 95 | % | 95 | % | 95 | % | 95 | % | 95 | % | ||||||||||||||||
|
Composition of commercial real estate portfolio by asset class
|
Sept. 30, 2023 | Dec. 31, 2022 | |||||||||||||||
|
Total
exposure |
Percentage
secured
(a)
|
Total
exposure |
Percentage
secured
(a)
|
||||||||||||||
|
(in billions)
|
|||||||||||||||||
| Residential | $ | 4.2 | 86 | % | $ | 4.1 | 85 | % | |||||||||
| Office | 2.6 | 74 | 2.8 | 75 | |||||||||||||
| Retail | 0.8 | 65 | 0.9 | 58 | |||||||||||||
| Mixed use | 0.8 | 30 | 0.8 | 33 | |||||||||||||
| Hotels | 0.6 | 40 | 0.6 | 42 | |||||||||||||
| Healthcare | 0.5 | 58 | 0.4 | 49 | |||||||||||||
| Other | 0.6 | 71 | 0.5 | 66 | |||||||||||||
| Total commercial real estate | $ | 10.1 | 72 | % | $ | 10.1 | 71 | % | |||||||||
| Allowance for credit losses activity | Sept. 30, 2023 | June 30, 2023 | Dec. 31, 2022 | Sept. 30, 2022 | |||||||||||||
| (dollars in millions) | |||||||||||||||||
| Beginning balance of allowance for credit losses | $ | 323 | $ | 320 | $ | 280 | $ | 310 | |||||||||
| Provision for credit losses | 3 | 5 | 20 | (30) | |||||||||||||
| Net (charge-offs) recoveries: | |||||||||||||||||
| Loans: | |||||||||||||||||
| Other residential mortgages | — | (1) | 1 | 1 | |||||||||||||
| Other financial instruments | (1) | (1) | (9) | (1) | |||||||||||||
| Net (charge-offs) recoveries | (1) | (2) | (8) | — | |||||||||||||
| Ending balance of allowance for credit losses | $ | 325 | $ | 323 | $ | 292 | $ | 280 | |||||||||
| Allowance for loan losses | $ | 211 | $ | 191 | $ | 176 | $ | 164 | |||||||||
|
Allowance for lending-related commitments
|
85 | 91 | 78 | 72 | |||||||||||||
|
Allowance for other financial instruments
(a)
|
29 | 41 | 38 | 44 | |||||||||||||
| Total allowance for credit losses | $ | 325 | $ | 323 | $ | 292 | $ | 280 | |||||||||
| Total loans, at period end | $ | 66,290 | $ | 64,469 | $ | 66,063 | $ | 69,829 | |||||||||
|
Allowance for loan losses as a percentage of total loans
|
0.32 | % | 0.30 | % | 0.27 | % | 0.23 | % | |||||||||
| Allowance for loan losses and lending-related commitments as a percentage of total loans | 0.45 | % | 0.44 | % | 0.38 | % | 0.34 | % | |||||||||
|
Allocation of allowance for loan losses and
lending-related commitments
(a)
|
Sept. 30, 2023 | June 30, 2023 | Dec. 31, 2022 | Sept. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||
| (dollars in millions) | $ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||||||||||||||||
| Commercial real estate | $ | 222 | 75 | % | $ | 199 | 71 | % | $ | 184 | 72 | % | $ | 176 | 74 | % | ||||||||||||||||||||||||||||
| Commercial | 32 | 10 | 21 | 7 | 18 | 7 | 17 | 7 | ||||||||||||||||||||||||||||||||||||
| Financial institutions | 22 | 7 | 32 | 11 | 24 | 9 | 20 | 8 | ||||||||||||||||||||||||||||||||||||
| Wealth management mortgages | 9 | 3 | 15 | 5 | 12 | 5 | 9 | 4 | ||||||||||||||||||||||||||||||||||||
| Other residential mortgages | 6 | 2 | 9 | 3 | 8 | 3 | 8 | 3 | ||||||||||||||||||||||||||||||||||||
| Capital call financing | 3 | 1 | 4 | 1 | 6 | 2 | 4 | 2 | ||||||||||||||||||||||||||||||||||||
| Lease financings | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||||||||
| Wealth management loans | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||||||||
| Total | $ | 296 | 100 | % | $ | 282 | 100 | % | $ | 254 | 100 | % | $ | 236 | 100 | % | ||||||||||||||||||||||||||||
| Nonperforming assets | Sept. 30, 2023 | Dec. 31, 2022 | |||||||||||||||||||||
| (dollars in millions) | |||||||||||||||||||||||
| Nonperforming loans: | |||||||||||||||||||||||
| Other residential mortgages | $ | 24 | $ | 31 | |||||||||||||||||||
| Wealth management mortgages | 22 | 22 | |||||||||||||||||||||
| Commercial real estate | — | 54 | |||||||||||||||||||||
| Total nonperforming loans | 46 | 107 | |||||||||||||||||||||
| Other assets owned | 2 | 2 | |||||||||||||||||||||
| Total nonperforming assets | $ | 48 | $ | 109 | |||||||||||||||||||
| Nonperforming assets ratio | 0.07 | % | 0.16 | % | |||||||||||||||||||
| Allowance for loan losses/nonperforming loans | 458.7 | 164.5 | |||||||||||||||||||||
| Allowance for loan losses/nonperforming assets | 439.6 | 161.5 | |||||||||||||||||||||
| Allowance for loan losses and lending-related commitments/nonperforming loans | 643.5 | 237.4 | |||||||||||||||||||||
| Allowance for loan losses and lending-related commitments/nonperforming assets | 616.7 | 233.0 | |||||||||||||||||||||
| Available funds | Sept. 30, 2023 | Dec. 31, 2022 | Average | ||||||||||||||||||||
| (dollars in millions) | 3Q23 | 2Q23 | 3Q22 | YTD23 | YTD22 | ||||||||||||||||||
| Cash and due from banks | $ | 4,904 | $ | 5,030 | $ | 5,183 | $ | 5,295 | $ | 5,089 | $ | 5,390 | $ | 5,585 | |||||||||
| Interest-bearing deposits with the Federal Reserve and other central banks | 107,419 | 91,655 | 98,767 | 114,578 | 91,836 | 102,762 | 98,310 | ||||||||||||||||
| Interest-bearing deposits with banks | 12,999 | 17,169 | 12,287 | 13,919 | 16,298 | 14,129 | 17,189 | ||||||||||||||||
| Federal funds sold and securities purchased under resale agreements | 26,299 | 24,298 | 26,915 | 26,989 | 22,971 | 26,187 | 24,715 | ||||||||||||||||
| Total available funds | $ | 151,621 | $ | 138,152 | $ | 143,152 | $ | 160,781 | $ | 136,194 | $ | 148,468 | $ | 145,799 | |||||||||
| Total available funds as a percentage of total assets | 37 | % | 34 | % | 36 | % | 38 | % | 33 | % | 36 | % | 34 | % | |||||||||
|
Credit ratings at Sept. 30, 2023
|
|||||||||||||||||||||||
| Moody’s | S&P | Fitch | DBRS | ||||||||||||||||||||
| Parent: | |||||||||||||||||||||||
| Long-term senior debt | A1 | (a) | A | AA- | AA | ||||||||||||||||||
| Subordinated debt | A2 | (a) | A- | A | AA (low) | ||||||||||||||||||
| Preferred stock | Baa1 | (a) | BBB | BBB+ | A | ||||||||||||||||||
| Outlook – Parent | (a) | Stable | Stable | Stable | |||||||||||||||||||
| The Bank of New York Mellon: | |||||||||||||||||||||||
| Long-term senior debt | Aa2 | (a) | AA- | AA | AA (high) | ||||||||||||||||||
| Subordinated debt | NR | (a) | A | NR | NR | ||||||||||||||||||
| Long-term deposits | Aa1 | AA- | AA+ | AA (high) | |||||||||||||||||||
| Short-term deposits | P1 | A-1+ | F1+ | R-1 (high) | |||||||||||||||||||
| Commercial paper | P1 | A-1+ | F1+ | R-1 (high) | |||||||||||||||||||
| BNY Mellon, N.A.: | |||||||||||||||||||||||
| Long-term senior debt | Aa2 | (a)(b) | AA- |
AA
|
(b) | AA (high) | |||||||||||||||||
| Long-term deposits | Aa1 | AA- | AA+ | AA (high) | |||||||||||||||||||
| Short-term deposits | P1 | A-1+ | F1+ | R-1 (high) | |||||||||||||||||||
| Outlook – Banks | (a) | Stable | Stable | Stable | |||||||||||||||||||
| Consolidated HQLA and LCR | Sept. 30, 2023 | June 30, 2023 | ||||||
| (dollars in billions) | ||||||||
|
Cash
(a)
|
$ | 107 | $ | 118 | ||||
|
Securities
(b)
|
70 | 93 | ||||||
|
Total consolidated HQLA
(c)
|
$ | 177 | $ | 211 | ||||
|
Total consolidated HQLA – average
(c)
|
$ | 180 | $ | 198 | ||||
| Average consolidated LCR | 121 | % | 120 | % | ||||
| Capital data | Sept. 30, 2023 | June 30, 2023 | Dec. 31, 2022 | ||||||||
| (dollars in millions, except per share amounts; common shares in thousands) | |||||||||||
| BNY Mellon shareholders’ equity to total assets ratio | 10.1 | % | 9.5 | % | 10.0 | % | |||||
| BNY Mellon common shareholders’ equity to total assets ratio | 8.9 | % | 8.4 | % | 8.8 | % | |||||
| Total BNY Mellon shareholders’ equity | $ | 40,966 | $ | 40,933 | $ | 40,734 | |||||
| Total BNY Mellon common shareholders’ equity | $ | 36,128 | $ | 36,095 | $ | 35,896 | |||||
|
BNY Mellon tangible common shareholders’ equity – Non-GAAP
(a)
|
$ | 18,964 | $ | 18,821 | $ | 18,686 | |||||
| Book value per common share | $ | 46.98 | $ | 46.35 | $ | 44.40 | |||||
|
Tangible book value per common share – Non-GAAP
(a)
|
$ | 24.66 | $ | 24.17 | $ | 23.11 | |||||
| Closing stock price per common share | $ | 42.65 | $ | 44.52 | $ | 45.52 | |||||
| Market capitalization | $ | 32,801 | $ | 34,671 | $ | 36,800 | |||||
| Common shares outstanding | 769,073 | 778,782 | 808,445 | ||||||||
| Cash dividends per common share | $ | 0.42 | $ | 0.37 | $ | 0.37 | |||||
| Common dividend payout ratio | 35 | % | 29 | % | 60 | % | |||||
|
Common dividend yield
(annualized)
|
3.9 | % | 3.3 | % | 3.2 | % | |||||
|
Consolidated and largest bank subsidiary regulatory capital ratios
|
Sept. 30, 2023 | June 30, 2023 | Dec. 31, 2022 | |||||||||||||||||||||||||||||
| Well capitalized | Minimum required |
Capital
ratios |
Capital
ratios |
Capital
ratios |
||||||||||||||||||||||||||||
| (a) | ||||||||||||||||||||||||||||||||
|
Consolidated regulatory capital ratios
:
(b)
|
||||||||||||||||||||||||||||||||
| Advanced Approaches: | ||||||||||||||||||||||||||||||||
| CET1 ratio | N/A | (c) | 8.5 | % | 11.4 | % | 11.1 | % | 11.2 | % | ||||||||||||||||||||||
| Tier 1 capital ratio | 6 | % | 10 | 14.4 | 14.0 | 14.1 | ||||||||||||||||||||||||||
| Total capital ratio | 10 | 12 | 15.2 | 14.8 | 14.9 | |||||||||||||||||||||||||||
| Standardized Approach: | ||||||||||||||||||||||||||||||||
| CET1 ratio | N/A | (c) | 8.5 | % | 11.9 | % | 11.8 | % | 11.3 | % | ||||||||||||||||||||||
| Tier 1 capital ratio | 6 | % | 10 | 15.1 | 15.0 | 14.4 | ||||||||||||||||||||||||||
| Total capital ratio | 10 | 12 | 16.1 | 16.0 | 15.3 | |||||||||||||||||||||||||||
| Tier 1 leverage ratio | N/A | (c) | 4 | 6.1 | 5.7 | 5.8 | ||||||||||||||||||||||||||
|
SLR
(d)
|
N/A | (c) | 5 | 7.2 | 7.0 | 6.8 | ||||||||||||||||||||||||||
|
The Bank of New York Mellon regulatory capital ratios
:
(b)
|
||||||||||||||||||||||||||||||||
| Advanced Approaches: | ||||||||||||||||||||||||||||||||
| CET1 ratio | 6.5 | % | 7 | % | 15.8 | % | 15.6 | % | 15.6 | % | ||||||||||||||||||||||
| Tier 1 capital ratio | 8 | 8.5 | 15.8 | 15.6 | 15.6 | |||||||||||||||||||||||||||
| Total capital ratio | 10 | 10.5 | 15.9 | 15.7 | 15.7 | |||||||||||||||||||||||||||
| Tier 1 leverage ratio | 5 | 4 | 6.6 | 6.2 | 6.2 | |||||||||||||||||||||||||||
|
SLR
(d)
|
6 | 3 | 8.3 | 8.2 | 7.7 | |||||||||||||||||||||||||||
| Capital components and risk-weighted assets | |||||||||||
| Sept. 30, 2023 | June 30, 2023 | Dec. 31, 2022 | |||||||||
| (in millions) | |||||||||||
| CET1: | |||||||||||
| Common shareholders’ equity | $ | 36,128 | $ | 36,095 | $ | 35,896 | |||||
| Adjustments for: | |||||||||||
|
Goodwill and intangible assets
(a)
|
(17,164) | (17,274) | (17,210) | ||||||||
| Net pension fund assets | (353) | (350) | (317) | ||||||||
| Embedded goodwill | (273) | (278) | (279) | ||||||||
| Deferred tax assets | (63) | (58) | (56) | ||||||||
| Other | (11) | (8) | (2) | ||||||||
| Total CET1 | 18,264 | 18,127 | 18,032 | ||||||||
| Other Tier 1 capital: | |||||||||||
| Preferred stock | 4,838 | 4,838 | 4,838 | ||||||||
| Other | (9) | (8) | (14) | ||||||||
| Total Tier 1 capital | $ | 23,093 | $ | 22,957 | $ | 22,856 | |||||
| Tier 2 capital: | |||||||||||
| Subordinated debt | $ | 1,248 | $ | 1,248 | $ | 1,248 | |||||
| Allowance for credit losses | 325 | 323 | 291 | ||||||||
| Other | (6) | (6) | (11) | ||||||||
| Total Tier 2 capital – Standardized Approach | 1,567 | 1,565 | 1,528 | ||||||||
| Excess of expected credit losses | 78 | 61 | 50 | ||||||||
| Less: Allowance for credit losses | 325 | 323 | 291 | ||||||||
| Total Tier 2 capital – Advanced Approaches | $ | 1,320 | $ | 1,303 | $ | 1,287 | |||||
| Total capital: | |||||||||||
| Standardized Approach | $ | 24,660 | $ | 24,522 | $ | 24,384 | |||||
| Advanced Approaches | $ | 24,413 | $ | 24,260 | $ | 24,143 | |||||
| Risk-weighted assets: | |||||||||||
| Standardized Approach | $ | 153,363 | $ | 153,359 | $ | 159,096 | |||||
| Advanced Approaches: | |||||||||||
| Credit Risk | $ | 86,836 | $ | 89,894 | $ | 90,243 | |||||
| Market Risk | 3,072 | 2,629 | 2,979 | ||||||||
| Operational Risk | 70,550 | 71,013 | 68,450 | ||||||||
| Total Advanced Approaches | $ | 160,458 | $ | 163,536 | $ | 161,672 | |||||
| Average assets for Tier 1 leverage ratio | $ | 379,630 | $ | 403,206 | $ | 396,643 | |||||
| Total leverage exposure for SLR | $ | 318,865 | $ | 326,215 | $ | 336,049 | |||||
| CET1 generation | 3Q23 | ||||
| (in millions) | |||||
| CET1 – Beginning of period | $ | 18,127 | |||
| Net income applicable to common shareholders of The Bank of New York Mellon Corporation | 956 | ||||
| Goodwill and intangible assets, net of related deferred tax liabilities | 110 | ||||
| Gross CET1 generated | 1,066 | ||||
| Capital deployed: | |||||
| Common stock repurchases | (450) | ||||
|
Common stock dividends
(a)
|
(333) | ||||
| Total capital deployed | (783) | ||||
| Other comprehensive gain (loss): | |||||
| Unrealized (loss) on assets available-for-sale | (15) | ||||
| Foreign currency translation | (185) | ||||
| Defined benefit plans | (3) | ||||
| Total other comprehensive (loss) | (203) | ||||
|
Additional paid-in capital
(b)
|
67 | ||||
| Other additions (deductions): | |||||
| Net pension fund assets | (3) | ||||
| Embedded goodwill | 5 | ||||
| Deferred tax assets | (5) | ||||
| Other | (7) | ||||
| Total other (deductions) | (10) | ||||
| Net CET1 generated | 137 | ||||
| CET1 – End of period | $ | 18,264 | |||
|
Sensitivity of consolidated capital ratios at Sept. 30, 2023
|
||||||||||||||
| Increase or decrease of | ||||||||||||||
| (in basis points) |
$100 million
in common equity |
$1 billion in RWA, quarterly average assets or total leverage exposure | ||||||||||||
| CET1: | ||||||||||||||
|
Standardized Approach
|
7 | bps | 8 | bps | ||||||||||
|
Advanced Approaches
|
6 | 7 | ||||||||||||
| Tier 1 capital: | ||||||||||||||
|
Standardized Approach
|
7 | 10 | ||||||||||||
|
Advanced Approaches
|
6 | 9 | ||||||||||||
| Total capital: | ||||||||||||||
|
Standardized Approach
|
7 | 11 | ||||||||||||
|
Advanced Approaches
|
6 | 10 | ||||||||||||
| Tier 1 leverage | 3 | 2 | ||||||||||||
|
SLR
|
3 | 2 | ||||||||||||
|
As a % of RWAs
(a)
|
As a % of total leverage exposure | |||||||
| Eligible external TLAC ratios |
Regulatory minimum of 18% plus a buffer
(b)
equal to the sum of 2.5%, the method 1
G-SIB surcharge (currently 1%), and the countercyclical capital buffer, if any
|
Regulatory minimum of 7.5% plus a buffer
(c)
equal to 2%
|
||||||
| Eligible external LTD ratios | Regulatory minimum of 6% plus the greater of the method 1 or method 2 G-SIB surcharge (currently 1.5%) | 4.5% | ||||||
| TLAC and LTD ratios | Sept. 30, 2023 | ||||||||||
|
Minimum
required |
Minimum ratios
with buffers |
||||||||||
| Ratios | |||||||||||
| Eligible external TLAC: | |||||||||||
|
As a percentage of RWA
|
18.0 | % | 21.5 | % | 30.6 | % | |||||
|
As a percentage of total leverage exposure
|
7.5 | % | 9.5 | % | 15.4 | % | |||||
| Eligible external LTD: | |||||||||||
| As a percentage of RWA | 7.5 | % | N/A | 14.6 | % | ||||||
|
As a percentage of total leverage exposure
|
4.5 | % | N/A | 7.3 | % | ||||||
|
VaR
(a)
|
3Q23 | Sept. 30, 2023 | ||||||||||||
| (in millions) | Average | Minimum | Maximum | |||||||||||
| Interest rate | $ | 2.6 | $ | 1.9 | $ | 4.6 | $ | 2.4 | ||||||
| Foreign exchange | 2.5 | 2.0 | 3.2 | 2.1 | ||||||||||
| Equity | 0.1 | — | 0.3 | 0.2 | ||||||||||
| Credit | 1.2 | 0.9 | 1.7 | 1.3 | ||||||||||
| Diversification | (4.3) | N/M | N/M | (4.1) | ||||||||||
| Overall portfolio | 2.1 | 1.3 | 3.2 | 1.9 | ||||||||||
|
VaR
(a)
|
2Q23 | June 30, 2023 | ||||||||||||
| (in millions) | Average | Minimum | Maximum | |||||||||||
| Interest rate | $ | 3.1 | $ | 2.0 | $ | 5.1 | $ | 2.6 | ||||||
| Foreign exchange | 3.0 | 2.0 | 4.5 | 2.3 | ||||||||||
| Equity | 0.1 | — | 0.3 | 0.1 | ||||||||||
| Credit | 1.4 | 1.0 | 2.0 | 1.3 | ||||||||||
| Diversification | (4.6) | N/M | N/M | (4.0) | ||||||||||
| Overall portfolio | 3.0 | 1.8 | 4.9 | 2.3 | ||||||||||
|
VaR
(a)
|
3Q22 | Sept. 30, 2022 | ||||||||||||
| (in millions) | Average | Minimum | Maximum | |||||||||||
| Interest rate | $ | 4.1 | $ | 2.6 | $ | 7.5 | $ | 3.3 | ||||||
| Foreign exchange | 3.9 | 2.7 | 7.1 | 4.7 | ||||||||||
| Equity | 0.2 | 0.1 | 0.5 | 0.2 | ||||||||||
| Credit | 1.9 | 1.0 | 4.4 | 3.9 | ||||||||||
| Diversification | (5.6) | N/M | N/M | (7.1) | ||||||||||
| Overall portfolio | 4.5 | 2.5 | 7.7 | 5.0 | ||||||||||
|
VaR
(a)
|
YTD23 | |||||||||||||
| (in millions) | Average | Minimum | Maximum | |||||||||||
| Interest rate | $ | 3.2 | $ | 1.9 | $ | 7.6 | ||||||||
| Foreign exchange | 3.0 | 2.0 | 5.7 | |||||||||||
| Equity | 0.1 | — | 0.3 | |||||||||||
| Credit | 1.4 | 0.7 | 3.5 | |||||||||||
| Diversification | (4.7) | N/M | N/M | |||||||||||
| Overall portfolio | 3.0 | 1.3 | 8.9 | |||||||||||
|
VaR
(a)
|
YTD22 | |||||||||||||
| (in millions) | Average | Minimum | Maximum | |||||||||||
| Interest rate | $ | 4.4 | $ | 1.6 | $ | 9.3 | ||||||||
| Foreign exchange | 3.6 | 2.2 | 10.2 | |||||||||||
| Equity | 0.3 | — | 0.9 | |||||||||||
| Credit | 1.9 | 1.0 | 4.4 | |||||||||||
| Diversification | (4.8) | N/M | N/M | |||||||||||
| Overall portfolio | 5.4 | 2.5 | 11.4 | |||||||||||
|
Distribution of trading revenue (loss)
(a)
|
|||||||||||||||||
| Quarter ended | |||||||||||||||||
| (dollars in millions) | Sept. 30, 2023 | June 30, 2023 | March 31, 2023 | Dec. 31, 2022 | Sept. 30, 2022 | ||||||||||||
| Revenue range: | Number of days | ||||||||||||||||
| Less than $(2.5) | — | — | — | 2 | — | ||||||||||||
| $(2.5) – $0 | 5 | 2 | 1 | 4 | 3 | ||||||||||||
| $0 – $2.5 | 14 | 15 | 20 | 13 | 10 | ||||||||||||
| $2.5 – $5.0 | 24 | 37 | 26 | 24 | 32 | ||||||||||||
| More than $5.0 | 20 | 9 | 15 | 20 | 19 | ||||||||||||
|
Foreign exchange and other trading
counterparty risk-rating profile
|
||||||||||||||||||||||||||||||||
| Sept. 30, 2023 | Dec. 31, 2022 | |||||||||||||||||||||||||||||||
| (dollars in millions) | Exposure, net of collateral | Percentage of exposure, net of collateral | Exposure, net of collateral | Percentage of exposure, net of collateral | ||||||||||||||||||||||||||||
| Investment grade | $ | 2,056 | 96 | % | $ | 2,553 | 98 | % | ||||||||||||||||||||||||
| Non-investment grade | 82 | 4 | % | 63 | 2 | % | ||||||||||||||||||||||||||
| Total | $ | 2,138 | 100 | % | $ | 2,616 | 100 | % | ||||||||||||||||||||||||
|
Estimated changes in net interest revenue
(in millions)
|
Sept. 30, 2023 | June 30, 2023 | Sept. 30, 2022 | ||||||||
|
Up 100 bps rate shock vs. baseline
|
$ | 166 | $ | 324 | $ | 267 | |||||
|
Long-term up 100 bps, short-term unchanged
|
13 | 7 | (17) | ||||||||
|
Short-term up 100 bps, long-term unchanged
|
153 | 317 | 283 | ||||||||
|
Long-term down 100 bps, short-term unchanged
(a)
|
(14) | (13) | 14 | ||||||||
|
Short-term down 100 bps, long-term unchanged
|
(214) | (346) | (408) | ||||||||
|
Down 100 bps rate shock vs. baseline
|
(228) | (358) | (394) | ||||||||
| Return on common equity and tangible common equity reconciliation | 3Q23 | 2Q23 | 3Q22 | YTD23 | YTD22 | |||||||||||||||
| (dollars in millions) | ||||||||||||||||||||
| Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP | $ | 956 | $ | 1,031 | $ | 319 | $ | 2,892 | $ | 1,853 | ||||||||||
| Add: Amortization of intangible assets | 15 | 14 | 17 | 43 | 51 | |||||||||||||||
| Less: Tax impact of amortization of intangible assets | 3 | 4 | 4 | 10 | 12 | |||||||||||||||
| Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, excluding amortization of intangible assets – Non-GAAP | $ | 968 | $ | 1,041 | $ | 332 | $ | 2,925 | $ | 1,892 | ||||||||||
| Average common shareholders’ equity | $ | 35,983 | $ | 35,769 | $ | 35,942 | $ | 35,787 | $ | 36,483 | ||||||||||
| Less: Average goodwill | 16,237 | 16,219 | 17,189 | 16,206 | 17,341 | |||||||||||||||
| Average intangible assets | 2,875 | 2,888 | 2,922 | 2,887 | 2,950 | |||||||||||||||
| Add: Deferred tax liability – tax deductible goodwill | 1,197 | 1,193 | 1,175 | 1,197 | 1,175 | |||||||||||||||
| Deferred tax liability – intangible assets | 657 | 660 | 660 | 657 | 660 | |||||||||||||||
| Average tangible common shareholders’ equity – Non-GAAP | $ | 18,725 | $ | 18,515 | $ | 17,666 | $ | 18,548 | $ | 18,027 | ||||||||||
|
Return on common equity
(annualized)
– GAAP
|
10.5 | % | 11.6 | % | 3.5 | % | 10.8 | % | 6.8 | % | ||||||||||
|
Return on tangible common equity
(annualized)
– Non-GAAP
|
20.5 | % | 22.6 | % | 7.5 | % | 21.1 | % | 14.0 | % | ||||||||||
| Book value and tangible book value per common share reconciliation | Sept. 30, 2023 | June 30, 2023 | Dec. 31, 2022 | Sept. 30, 2022 | ||||||||||
| (dollars in millions, except per share amounts and unless otherwise noted) | ||||||||||||||
| BNY Mellon shareholders’ equity at period end – GAAP | $ | 40,966 | $ | 40,933 | $ | 40,734 | $ | 39,737 | ||||||
| Less: Preferred stock | 4,838 | 4,838 | 4,838 | 4,838 | ||||||||||
| BNY Mellon common shareholders’ equity at period end – GAAP | 36,128 | 36,095 | 35,896 | 34,899 | ||||||||||
| Less: Goodwill | 16,159 | 16,246 | 16,150 | 16,412 | ||||||||||
| Intangible assets | 2,859 | 2,881 | 2,901 | 2,902 | ||||||||||
| Add: Deferred tax liability – tax deductible goodwill | 1,197 | 1,193 | 1,181 | 1,175 | ||||||||||
| Deferred tax liability – intangible assets | 657 | 660 | 660 | 660 | ||||||||||
|
BNY Mellon tangible common shareholders’ equity at period end – Non-GAAP
|
$ | 18,964 | $ | 18,821 | $ | 18,686 | $ | 17,420 | ||||||
|
Period-end common shares outstanding
(in thousands)
|
769,073 | 778,782 | 808,445 | 808,280 | ||||||||||
| Book value per common share – GAAP | $ | 46.98 | $ | 46.35 | $ | 44.40 | $ | 43.18 | ||||||
| Tangible book value per common share – Non-GAAP | $ | 24.66 | $ | 24.17 | $ | 23.11 | $ | 21.55 | ||||||
| Reconciliation of Non-GAAP measures, excluding notable items | YTD23 | |||||||||||||||||||||||||||||||
| 3Q23 vs. | vs. | |||||||||||||||||||||||||||||||
| (dollars in millions, except per share amounts) | 3Q23 | 3Q22 | 3Q22 | YTD23 | YTD22 | YTD22 | ||||||||||||||||||||||||||
| Total revenue – GAAP | $ | 4,374 | $ | 4,279 | 2 | % | ||||||||||||||||||||||||||
| Less: Disposal gain (reflected in investment and other revenue) | 2 | 37 | ||||||||||||||||||||||||||||||
| Adjusted total revenue – Non-GAAP | $ | 4,372 | $ | 4,242 | 3 | % | ||||||||||||||||||||||||||
| Noninterest expense – GAAP | $ | 3,089 | $ | 3,679 | (16) | % | $ | 9,300 | $ | 9,797 | (5) | % | ||||||||||||||||||||
| Less: Severance | 41 | 32 | 67 | 32 | ||||||||||||||||||||||||||||
| Litigation reserves | 5 | 2 | 46 | 105 | ||||||||||||||||||||||||||||
| Goodwill impairment | — | 680 | — | 680 | ||||||||||||||||||||||||||||
| Adjusted noninterest expense – Non-GAAP | $ | 3,043 | $ | 2,965 | 3 | % | $ | 9,187 | $ | 8,980 | 2 | % | ||||||||||||||||||||
|
Net income applicable to common shareholders of The Bank of New
York Mellon Corporation – GAAP |
$ | 956 | $ | 319 | 200 | % | ||||||||||||||||||||||||||
| Less: Disposal gain (reflected in investment and other revenue) | — | 28 | ||||||||||||||||||||||||||||||
| Less: Severance | (32) | (25) | ||||||||||||||||||||||||||||||
| Litigation reserves | (4) | (2) | ||||||||||||||||||||||||||||||
| Goodwill impairment | — | (665) | ||||||||||||||||||||||||||||||
| Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation – Non-GAAP | $ | 992 | $ | 983 | 1 | % | ||||||||||||||||||||||||||
| Diluted earnings per common share | $ | 1.22 | $ | 0.39 | 213 | % | ||||||||||||||||||||||||||
| Less: Disposal gain (loss) (reflected in investment and other revenue) | — | 0.03 | ||||||||||||||||||||||||||||||
| Less: Severance | (0.04) | (0.03) | ||||||||||||||||||||||||||||||
| Litigation reserves | (0.01) | — | ||||||||||||||||||||||||||||||
| Goodwill impairment | — | (0.82) | ||||||||||||||||||||||||||||||
| Total diluted earnings per share common share impact of notable items | (0.05) | (0.81) | (a) | |||||||||||||||||||||||||||||
| Adjusted diluted earnings per common share – Non-GAAP | $ | 1.27 | $ | 1.21 | 5 | % | ||||||||||||||||||||||||||
| Effective tax rate reconciliation | |||||
| (dollars in millions) | 3Q22 | ||||
| Provision for income taxes – GAAP | $ | 242 | |||
| Less: Disposal gain (reflected in investment and other revenue) | 9 | ||||
| Less: Severance | (7) | ||||
| Litigation reserves | — | ||||
| Goodwill impairment | (15) | ||||
| Adjusted provision for income taxes – Non-GAAP | $ | 255 | |||
| Income before taxes – GAAP | $ | 630 | |||
| Less: Disposal gain (reflected in investment and other revenue) | 37 | ||||
| Less: Severance | (32) | ||||
| Litigation reserves | (2) | ||||
| Goodwill impairment | (680) | ||||
| Adjusted income before taxes – Non-GAAP | $ | 1,307 | |||
| Effective tax rate – GAAP | 38.4 | % | |||
| Adjusted effective tax rate – Non-GAAP | 19.5 | % | |||
| Constant currency reconciliation – Consolidated | 3Q23 vs. | ||||||||||
| (dollars in millions) | 3Q23 | 3Q22 | 3Q22 | ||||||||
| Investment management and performance fees – GAAP | $ | 777 | $ | 800 | (3) | % | |||||
| Impact of changes in foreign currency exchange rates | — | 15 | |||||||||
| Adjusted investment management and performance fees – Non-GAAP | $ | 777 | $ | 815 | (5) | % | |||||
|
Constant currency reconciliation
–
Investment and Wealth Management business segment
|
3Q23 vs. | ||||||||||
| (dollars in millions) | 3Q23 | 3Q22 | 3Q22 | ||||||||
| Investment management and performance fees – GAAP | $ | 776 | $ | 798 | (3) | % | |||||
| Impact of changes in foreign currency exchange rates | — | 15 | |||||||||
| Adjusted investment management and performance fees – Non-GAAP | $ | 776 | $ | 813 | (5) | % | |||||
| Reconciliation of Non-GAAP measures – Investment and Wealth Management business segment | |||||||||||||||||||||||||||||||||||
| 3Q23 vs. | |||||||||||||||||||||||||||||||||||
| (dollars in millions) | 3Q23 | 3Q22 | 3Q22 | YTD22 | |||||||||||||||||||||||||||||||
| Noninterest expense – GAAP | $ | 672 | $ | 1,356 | $ | 2,802 | |||||||||||||||||||||||||||||
| Less: Severance | 5 | (1) | (1) | ||||||||||||||||||||||||||||||||
| Goodwill impairment | — | 680 | 680 | ||||||||||||||||||||||||||||||||
| Adjusted noninterest expense – Non-GAAP | $ | 667 | $ | 677 | $ | 2,123 | |||||||||||||||||||||||||||||
| Income (loss) before income taxes – GAAP | $ | 164 | $ | (497) | N/M | $ | (77) | ||||||||||||||||||||||||||||
| Less: Severance | (5) | 1 | 1 | ||||||||||||||||||||||||||||||||
| Goodwill impairment | — | (680) | (680) | ||||||||||||||||||||||||||||||||
| Adjusted income before income taxes – Non-GAAP | $ | 169 | $ | 182 | (7) | % | $ | 602 | |||||||||||||||||||||||||||
| Total revenue – GAAP | $ | 862 | $ | 2,725 | |||||||||||||||||||||||||||||||
|
Less:
Distribution and servicing expense
|
88 | 258 | |||||||||||||||||||||||||||||||||
| Adjusted total revenue, net of distribution and servicing expense – Non-GAAP | $ | 774 | $ | 2,467 | |||||||||||||||||||||||||||||||
|
Pre-tax operating margin – GAAP
(a)
|
(57) | % | (3) | % | |||||||||||||||||||||||||||||||
|
Adjusted pre-tax operating margin, net of distribution and servicing expense – Non-GAAP
(a)
|
(64) | % | (3) | % | |||||||||||||||||||||||||||||||
|
Adjusted pre-tax operating margin, net of distribution and servicing expense and excluding notable items – Non-GAAP
(a)
|
24 | % | 24 | % | |||||||||||||||||||||||||||||||
| Pre-tax operating margin reconciliation – Investment and Wealth Management business segment | |||||||||||||||||||||||
| (dollars in millions) | 3Q23 | 2Q23 | 1Q23 | 4Q22 | YTD23 | ||||||||||||||||||
| Income before income taxes – GAAP | $ | 164 | $ | 129 | $ | 93 | $ | 125 | $ | 386 | |||||||||||||
| Total revenue – GAAP | $ | 827 | $ | 813 | $ | 827 | $ | 825 | $ | 2,467 | |||||||||||||
| Less: Distribution and servicing expense | 87 | 93 | 86 | 87 | 266 | ||||||||||||||||||
| Adjusted total revenue, net of distribution and servicing expense – Non-GAAP | $ | 740 | $ | 720 | $ | 741 | $ | 738 | $ | 2,201 | |||||||||||||
|
Pre-tax operating margin – GAAP
(a)
|
20 | % | 16 | % | 11 | % | 15 | % | 16 | % | |||||||||||||
|
Adjusted pre-tax operating margin, net of distribution and servicing expense – Non-GAAP
(a)
|
22 | % | 18 | % | 13 | % | 17 | % | 18 | % | |||||||||||||
| Item 1. Financial Statements | ||
| The Bank of New York Mellon Corporation (and its subsidiaries) | ||
| Quarter ended | Year-to-date | |||||||||||||||||||
| Sept. 30, 2023 | June 30, 2023 | Sept. 30, 2022 | Sept. 30, 2023 | Sept. 30, 2022 | ||||||||||||||||
| (in millions) | ||||||||||||||||||||
| Fee and other revenue | ||||||||||||||||||||
| Investment services fees | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||
| Investment management and performance fees |
|
|
|
|
|
|||||||||||||||
| Foreign exchange revenue |
|
|
|
|
|
|||||||||||||||
| Financing-related fees |
|
|
|
|
|
|||||||||||||||
| Distribution and servicing fees |
|
|
|
|
|
|||||||||||||||
| Total fee revenue |
|
|
|
|
|
|||||||||||||||
| Investment and other revenue |
|
|
|
|
|
|||||||||||||||
| Total fee and other revenue |
|
|
|
|
|
|||||||||||||||
| Net interest revenue | ||||||||||||||||||||
| Interest revenue |
|
|
|
|
|
|||||||||||||||
| Interest expense |
|
|
|
|
|
|||||||||||||||
| Net interest revenue |
|
|
|
|
|
|||||||||||||||
| Total revenue |
|
|
|
|
|
|||||||||||||||
| Provision for credit losses |
|
|
(
|
|
|
|||||||||||||||
| Noninterest expense | ||||||||||||||||||||
| Staff |
|
|
|
|
|
|||||||||||||||
| Software and equipment |
|
|
|
|
|
|||||||||||||||
| Professional, legal and other purchased services |
|
|
|
|
|
|||||||||||||||
| Net occupancy |
|
|
|
|
|
|||||||||||||||
| Sub-custodian and clearing |
|
|
|
|
|
|||||||||||||||
| Distribution and servicing |
|
|
|
|
|
|||||||||||||||
| Business development |
|
|
|
|
|
|||||||||||||||
| Bank assessment charges |
|
|
|
|
|
|||||||||||||||
| Goodwill impairment |
|
|
|
|
|
|||||||||||||||
| Amortization of intangible assets |
|
|
|
|
|
|||||||||||||||
| Other |
|
|
|
|
|
|||||||||||||||
| Total noninterest expense |
|
|
|
|
|
|||||||||||||||
| Income | ||||||||||||||||||||
| Income before income taxes |
|
|
|
|
|
|||||||||||||||
| Provision for income taxes |
|
|
|
|
|
|||||||||||||||
| Net income |
|
|
|
|
|
|||||||||||||||
| Net (income) loss attributable to noncontrolling interests related to consolidated investment management funds |
(
|
(
|
|
(
|
|
|||||||||||||||
| Net income applicable to shareholders of The Bank of New York Mellon Corporation |
|
|
|
|
|
|||||||||||||||
| Preferred stock dividends |
(
|
(
|
(
|
(
|
(
|
|||||||||||||||
| Net income applicable to common shareholders of The Bank of New York Mellon Corporation | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||
| The Bank of New York Mellon Corporation (and its subsidiaries) | ||
| Net income applicable to common shareholders of The Bank of New York Mellon Corporation used for the earnings per share calculation | Quarter ended | Year-to-date | ||||||||||||||||||
| Sept. 30, 2023 | June 30, 2023 | Sept. 30, 2022 | Sept. 30, 2023 | Sept. 30, 2022 | ||||||||||||||||
| (in millions) | ||||||||||||||||||||
| Net income applicable to common shareholders of The Bank of New York Mellon Corporation | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||
| Less: Earnings allocated to participating securities |
|
|
|
|
|
|||||||||||||||
| Net income applicable to common shareholders of The Bank of New York Mellon Corporation after required adjustment for the calculation of basic and diluted earnings per common share | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||
| Average common shares and equivalents outstanding of The Bank of New York Mellon Corporation | Quarter ended | Year-to-date | ||||||||||||||||||
| Sept. 30, 2023 | June 30, 2023 | Sept. 30, 2022 | Sept. 30, 2023 | Sept. 30, 2022 | ||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Basic |
|
|
|
|
|
|||||||||||||||
| Common stock equivalents |
|
|
|
|
|
|||||||||||||||
| Less: Participating securities |
(
|
(
|
(
|
(
|
(
|
|||||||||||||||
| Diluted |
|
|
|
|
|
|||||||||||||||
|
Anti-dilutive securities
(a)
|
|
|
|
|
|
|||||||||||||||
| Earnings per share applicable to common shareholders of The Bank of New York Mellon Corporation | Quarter ended | Year-to-date | ||||||||||||||||||
| Sept. 30, 2023 | June 30, 2023 | Sept. 30, 2022 | Sept. 30, 2023 | Sept. 30, 2022 | ||||||||||||||||
| (in dollars) | ||||||||||||||||||||
| Basic | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||
| Diluted | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||
| The Bank of New York Mellon Corporation (and its subsidiaries) | ||
| Quarter ended | Year-to-date | |||||||||||||||||||
| Sept. 30, 2023 | June 30, 2023 | Sept. 30, 2022 | Sept. 30, 2023 | Sept. 30, 2022 | ||||||||||||||||
| (in millions) | ||||||||||||||||||||
| Net income | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||
| Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
| Foreign currency translation adjustments |
(
|
|
(
|
|
(
|
|||||||||||||||
| Unrealized gain (loss) on assets available-for-sale: | ||||||||||||||||||||
| Unrealized (loss) gain arising during the period |
(
|
(
|
(
|
|
(
|
|||||||||||||||
| Reclassification adjustment |
|
|
(
|
|
(
|
|||||||||||||||
| Total unrealized (loss) gain on assets available-for-sale |
(
|
(
|
(
|
|
(
|
|||||||||||||||
| Defined benefit plans: | ||||||||||||||||||||
| Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost |
(
|
(
|
|
(
|
|
|||||||||||||||
| Total defined benefit plans |
(
|
(
|
|
(
|
|
|||||||||||||||
| Net unrealized gain (loss) on cash flow hedges |
|
|
(
|
|
(
|
|||||||||||||||
|
Total other comprehensive (loss) income, net of tax
(a)
|
(
|
(
|
(
|
|
(
|
|||||||||||||||
| Total comprehensive income (loss) |
|
|
(
|
|
(
|
|||||||||||||||
| Net (income) loss attributable to noncontrolling interests |
(
|
(
|
|
(
|
|
|||||||||||||||
| Other comprehensive loss attributable to noncontrolling interests |
|
|
|
|
|
|||||||||||||||
| Comprehensive income (loss) applicable to shareholders of The Bank of New York Mellon Corporation | $ |
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
||||||||||
| The Bank of New York Mellon Corporation (and its subsidiaries) | ||
| Sept. 30, 2023 | Dec. 31, 2022 | |||||||
| (dollars in millions, except per share amounts) | ||||||||
| Assets | ||||||||
|
Cash and due from banks, net of allowance for credit losses of $
|
$ |
|
$ |
|
||||
| Interest-bearing deposits with the Federal Reserve and other central banks |
|
|
||||||
|
Interest-bearing deposits with banks, net of allowance for credit losses of $
|
|
|
||||||
| Federal funds sold and securities purchased under resale agreements |
|
|
||||||
| Securities: | ||||||||
|
Held-to-maturity, at amortized cost, net of allowance for credit losses of $
|
|
|
||||||
|
Available-for-sale, at fair value (amortized cost of $
|
|
|
||||||
| Total securities |
|
|
||||||
| Trading assets |
|
|
||||||
| Loans |
|
|
||||||
| Allowance for credit losses |
(
|
(
|
||||||
| Net loans |
|
|
||||||
| Premises and equipment |
|
|
||||||
| Accrued interest receivable |
|
|
||||||
| Goodwill |
|
|
||||||
| Intangible assets |
|
|
||||||
|
Other assets, net of allowance for credit losses on accounts receivable of $
|
|
|
||||||
| Total assets | $ |
|
$ |
|
||||
| Liabilities | ||||||||
| Deposits: | ||||||||
| Noninterest-bearing (principally U.S. offices) | $ |
|
$ |
|
||||
| Interest-bearing deposits in U.S. offices |
|
|
||||||
| Interest-bearing deposits in non-U.S. offices |
|
|
||||||
| Total deposits |
|
|
||||||
| Federal funds purchased and securities sold under repurchase agreements |
|
|
||||||
| Trading liabilities |
|
|
||||||
| Payables to customers and broker-dealers |
|
|
||||||
| Other borrowed funds |
|
|
||||||
|
Accrued taxes and other expenses
|
|
|
||||||
|
Other liabilities (including allowance for credit losses on lending-related commitments of $
|
|
|
||||||
| Long-term debt |
|
|
||||||
| Total liabilities |
|
|
||||||
| Temporary equity | ||||||||
| Redeemable noncontrolling interests |
|
|
||||||
| Permanent equity | ||||||||
|
Preferred stock – par value $
|
|
|
||||||
|
Common stock – par value $
|
|
|
||||||
| Additional paid-in capital |
|
|
||||||
| Retained earnings |
|
|
||||||
| Accumulated other comprehensive loss, net of tax |
(
|
(
|
||||||
|
Less: Treasury stock of
|
(
|
(
|
||||||
| Total The Bank of New York Mellon Corporation shareholders’ equity |
|
|
||||||
| Nonredeemable noncontrolling interests of consolidated investment management funds |
|
|
||||||
| Total permanent equity |
|
|
||||||
| Total liabilities, temporary equity and permanent equity | $ |
|
$ |
|
||||
| The Bank of New York Mellon Corporation (and its subsidiaries) | ||
| Nine months ended Sept. 30, | ||||||||||||||
| (in millions) | 2023 | 2022 | ||||||||||||
| Operating activities | ||||||||||||||
| Net income | $ |
|
$ |
|
||||||||||
| Net (income) loss attributable to noncontrolling interests |
(
|
|
||||||||||||
| Net income applicable to shareholders of The Bank of New York Mellon Corporation |
|
|
||||||||||||
| Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||||||||
| Provision for credit losses |
|
|
||||||||||||
| Pension plan contributions |
(
|
(
|
||||||||||||
| Depreciation and amortization |
|
|
||||||||||||
| Goodwill impairment |
|
|
||||||||||||
| Deferred tax (benefit) expense |
(
|
|
||||||||||||
| Net securities losses (gains) |
|
(
|
||||||||||||
| Change in trading assets and liabilities |
|
|
||||||||||||
| Change in accruals and other, net |
|
|
||||||||||||
| Net cash provided by operating activities |
|
|
||||||||||||
| Investing activities | ||||||||||||||
| Change in interest-bearing deposits with banks |
|
|
||||||||||||
| Change in interest-bearing deposits with the Federal Reserve and other central banks |
(
|
(
|
||||||||||||
| Purchases of securities held-to-maturity |
(
|
(
|
||||||||||||
| Paydowns of securities held-to-maturity |
|
|
||||||||||||
| Maturities of securities held-to-maturity |
|
|
||||||||||||
| Purchases of securities available-for-sale |
(
|
(
|
||||||||||||
| Sales of securities available-for-sale |
|
|
||||||||||||
| Paydowns of securities available-for-sale |
|
|
||||||||||||
| Maturities of securities available-for-sale |
|
|
||||||||||||
| Net change in loans |
(
|
(
|
||||||||||||
| Change in federal funds sold and securities purchased under resale agreements |
(
|
|
||||||||||||
| Net change in seed capital investments |
|
|
||||||||||||
| Purchases of premises and equipment/capitalized software |
(
|
(
|
||||||||||||
| Proceeds from the sale of premises and equipment |
|
|
||||||||||||
| Disposition, net of cash |
|
|
||||||||||||
| Other, net |
|
(
|
||||||||||||
| Net cash (used for) investing activities |
(
|
(
|
||||||||||||
| Financing activities | ||||||||||||||
| Change in deposits |
|
(
|
||||||||||||
| Change in federal funds purchased and securities sold under repurchase agreements |
|
(
|
||||||||||||
| Change in payables to customers and broker-dealers |
(
|
(
|
||||||||||||
| Change in other borrowed funds |
|
(
|
||||||||||||
| Net proceeds from the issuance of long-term debt |
|
|
||||||||||||
| Repayments, redemptions and repurchases of long-term debt |
(
|
(
|
||||||||||||
| Proceeds from the exercise of stock options |
|
|
||||||||||||
| Issuance of common stock |
|
|
||||||||||||
| Treasury stock acquired |
(
|
(
|
||||||||||||
| Common cash dividends paid |
(
|
(
|
||||||||||||
| Preferred cash dividends paid |
(
|
(
|
||||||||||||
| Other, net |
|
(
|
||||||||||||
| Net cash (used for) financing activities |
(
|
(
|
||||||||||||
| Effect of exchange rate changes on cash |
|
|
||||||||||||
| Change in cash and due from banks and restricted cash | ||||||||||||||
| Change in cash and due from banks and restricted cash |
(
|
(
|
||||||||||||
| Cash and due from banks and restricted cash at beginning of period |
|
|
||||||||||||
| Cash and due from banks and restricted cash at end of period | $ |
|
$ |
|
||||||||||
| Cash and due from banks and restricted cash | ||||||||||||||
| Cash and due from banks at end of period (unrestricted cash) | $ |
|
$ |
|
||||||||||
| Restricted cash at end of period |
|
|
||||||||||||
| Cash and due from banks and restricted cash at end of period | $ |
|
$ |
|
||||||||||
| Supplemental disclosures | ||||||||||||||
| Interest paid | $ |
|
$ |
|
||||||||||
| Income taxes paid |
|
|
||||||||||||
| Income taxes refunded |
|
|
||||||||||||
| The Bank of New York Mellon Corporation (and its subsidiaries) | ||
| The Bank of New York Mellon Corporation shareholders |
Nonredeemable
noncontrolling interests of consolidated investment management funds |
Total
permanent equity |
Redeemable
non- controlling interests/ temporary equity |
|||||||||||||||||||||||||||||
|
(in millions, except per
share amount) |
Preferred stock |
Common
stock |
Additional
paid-in capital |
Retained
earnings |
Accumulated other comprehensive (loss), net
of tax |
Treasury
stock |
||||||||||||||||||||||||||
| Balance at June 30, 2023 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
(a) | $ |
|
|||||||||||||
| Shares issued to shareholders of noncontrolling interests | — | — | — | — | — | — | — | — |
|
|||||||||||||||||||||||
| Other net changes in noncontrolling interests | — | — |
|
— | — | — |
(
|
(
|
(
|
|||||||||||||||||||||||
| Net income | — | — | — |
|
— | — |
|
|
— | |||||||||||||||||||||||
| Other comprehensive (loss) | — | — | — | — |
(
|
— | — |
(
|
|
|||||||||||||||||||||||
| Dividends: | ||||||||||||||||||||||||||||||||
|
Common stock at $
share
(b)
|
— | — | — |
(
|
— | — | — |
(
|
— | |||||||||||||||||||||||
| Preferred stock | — | — | — |
(
|
— | — | — |
(
|
— | |||||||||||||||||||||||
| Repurchase of common stock | — | — | — | — | — |
(
|
— |
(
|
— | |||||||||||||||||||||||
| Common stock issued under employee benefit plans | — | — |
|
— | — | — | — |
|
— | |||||||||||||||||||||||
| Stock-based compensation | — | — |
|
— | — | — | — |
|
— | |||||||||||||||||||||||
| Excise tax on share repurchases | — | — | — | — | — |
(
|
— |
(
|
— | |||||||||||||||||||||||
| Other | — | — | — | — | — | — | — | — |
(
|
|||||||||||||||||||||||
| Balance at Sept. 30, 2023 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
(a) | $ |
|
|||||||||||||
| The Bank of New York Mellon Corporation shareholders |
Nonredeemable
noncontrolling interests of consolidated investment management funds |
Total
permanent equity |
Redeemable
non- controlling interests/ temporary equity |
|||||||||||||||||||||||||||||
|
(in millions, except per
share amount) |
Preferred stock |
Common
stock |
Additional
paid-in capital |
Retained
earnings |
Accumulated other comprehensive (loss), net
of tax |
Treasury
stock |
||||||||||||||||||||||||||
| Balance at March 31, 2023 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
(a) | $ |
|
|||||||||||||
|
Shares issued to shareholders of noncontrolling interests
|
— | — | — | — | — | — | — | — |
|
|||||||||||||||||||||||
|
Other net changes in noncontrolling interests
|
— | — |
|
— | — | — |
(
|
(
|
(
|
|||||||||||||||||||||||
| Net income | — | — | — |
|
— | — |
|
|
— | |||||||||||||||||||||||
| Other comprehensive (loss) | — | — | — | — |
(
|
— | — |
(
|
— | |||||||||||||||||||||||
| Dividends: | ||||||||||||||||||||||||||||||||
|
Common stock at $
share
(b)
|
— | — | — |
(
|
— | — | — |
(
|
— | |||||||||||||||||||||||
| Preferred stock | — | — | — |
(
|
— | — | — |
(
|
— | |||||||||||||||||||||||
| Repurchase of common stock | — | — | — | — | — |
(
|
— |
(
|
— | |||||||||||||||||||||||
| Common stock issued under employee benefit plans | — | — |
|
— | — | — | — |
|
— | |||||||||||||||||||||||
| Stock-based compensation | — | — |
|
— | — | — | — |
|
— | |||||||||||||||||||||||
| Excise tax of share repurchases | — | — | — | — | — |
(
|
— |
(
|
— | |||||||||||||||||||||||
| Other | — | — | — | — | — | — | — | — |
|
|||||||||||||||||||||||
| Balance at June 30, 2023 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
(a) | $ |
|
|||||||||||||
| The Bank of New York Mellon Corporation (and its subsidiaries) | ||
| The Bank of New York Mellon Corporation shareholders |
Nonredeemable
noncontrolling interests of consolidated investment management funds |
Total
permanent equity |
Redeemable
non- controlling interests/ temporary equity |
|||||||||||||||||||||||||||||
|
(in millions, except per
share amount) |
Preferred stock |
Common
stock |
Additional
paid-in capital |
Retained
earnings |
Accumulated other comprehensive (loss), net
of tax |
Treasury
stock |
||||||||||||||||||||||||||
| Balance at June 30, 2022 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
(a) | $ |
|
|||||||||||||
|
Shares issued to shareholders of noncontrolling interests
|
— | — | — | — | — | — | — | — |
|
|||||||||||||||||||||||
|
Redemption of subsidiary shares from noncontrolling interests
|
— | — | — | — | — | — | — | — |
(
|
|||||||||||||||||||||||
|
Other net changes in noncontrolling interests
|
— | — |
|
— | — | — | — |
|
|
|||||||||||||||||||||||
| Net income | — | — | — |
|
— | — | — |
|
— | |||||||||||||||||||||||
| Other comprehensive (loss) | — | — | — | — |
(
|
— | — |
(
|
(
|
|||||||||||||||||||||||
| Dividends: | ||||||||||||||||||||||||||||||||
|
Common stock at $
share
(b)
|
— | — | — |
(
|
— | — | — |
(
|
— | |||||||||||||||||||||||
| Preferred stock | — | — | — |
(
|
— | — | — |
(
|
— | |||||||||||||||||||||||
| Repurchase of common stock | — | — | — | — | — |
(
|
— |
(
|
— | |||||||||||||||||||||||
|
Common stock issued under employee benefit plans
|
— | — |
|
— | — | — | — |
|
— | |||||||||||||||||||||||
|
Stock awards and options exercised
|
— | — |
|
— | — | — | — |
|
— | |||||||||||||||||||||||
| Balance at Sept. 30, 2022 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
(a) | $ |
|
|||||||||||||
| The Bank of New York Mellon Corporation shareholders |
Nonredeemable
noncontrolling interests of consolidated investment management funds |
Total
permanent equity |
Redeemable
non- controlling interests/ temporary equity |
|||||||||||||||||||||||||||||
|
(in millions, except per
share amount) |
Preferred stock |
Common
stock |
Additional
paid-in capital |
Retained
earnings |
Accumulated other comprehensive (loss) income,
net of tax |
Treasury
stock |
||||||||||||||||||||||||||
| Balance at Dec. 31, 2022 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
(a) | $ |
|
|||||||||||||
|
Shares issued to shareholders of noncontrolling interests
|
— | — | — | — | — | — | — | — |
|
|||||||||||||||||||||||
|
Redemption of subsidiary shares from noncontrolling interests
|
— | — | — | — | — | — | — | — |
(
|
|||||||||||||||||||||||
|
Other net changes in noncontrolling interests
|
— | — |
(
|
— | — | — |
|
|
|
|||||||||||||||||||||||
| Net income | — | — | — |
|
— | — |
|
|
— | |||||||||||||||||||||||
| Other comprehensive income | — | — | — | — |
|
— | — |
|
— | |||||||||||||||||||||||
| Dividends: | ||||||||||||||||||||||||||||||||
|
Common stock at $
share
(b)
|
— | — | — |
(
|
— | — | — |
(
|
— | |||||||||||||||||||||||
| Preferred stock | — | — | — |
(
|
— | — | — |
(
|
— | |||||||||||||||||||||||
| Repurchase of common stock | — | — | — | — | — |
(
|
— |
(
|
— | |||||||||||||||||||||||
|
Common stock issued under employee benefit plans
|
— | — |
|
— | — | — | — |
|
— | |||||||||||||||||||||||
| Stock-based compensation | — | — |
|
— | — | — | — |
|
— | |||||||||||||||||||||||
| Excise tax on share repurchases | — | — | — | — | — |
(
|
— |
(
|
— | |||||||||||||||||||||||
| Other | — | — | — | — | — | — | — | — |
|
|||||||||||||||||||||||
| Balance at Sept. 30, 2023 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
(a) | $ |
|
|||||||||||||
| The Bank of New York Mellon Corporation (and its subsidiaries) | ||
| The Bank of New York Mellon Corporation shareholders |
Nonredeemable
noncontrolling interests of consolidated investment management funds |
Total
permanent equity |
Redeemable
non- controlling interests/ temporary equity |
|||||||||||||||||||||||||||||
|
(in millions, except per
share amount) |
Preferred stock |
Common
stock |
Additional
paid-in capital |
Retained
earnings |
Accumulated other comprehensive (loss), net
of tax |
Treasury
stock |
||||||||||||||||||||||||||
| Balance at Dec. 31, 2021 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
(a) | $ |
|
|||||||||||||
|
Shares issued to shareholders of noncontrolling interests
|
— | — | — | — | — | — | — | — |
|
|||||||||||||||||||||||
|
Redemption of subsidiary shares from noncontrolling interests
|
— | — | — | — | — | — | — | — |
(
|
|||||||||||||||||||||||
|
Other net changes in noncontrolling interests
|
— | — |
(
|
— | — | — |
(
|
(
|
|
|||||||||||||||||||||||
| Net income (loss) | — | — | — |
|
— | — |
(
|
|
— | |||||||||||||||||||||||
| Other comprehensive (loss) | — | — | — | — |
(
|
— | — |
(
|
(
|
|||||||||||||||||||||||
| Dividends: | ||||||||||||||||||||||||||||||||
|
Common stock at $
share
(b)
|
— | — | — |
(
|
— | — | — |
(
|
— | |||||||||||||||||||||||
| Preferred stock | — | — | — |
(
|
— | — | — |
(
|
— | |||||||||||||||||||||||
| Repurchase of common stock | — | — | — | — | — |
(
|
— |
(
|
— | |||||||||||||||||||||||
| Common stock issued under employee benefit plans | — | — |
|
— | — | — | — |
|
— | |||||||||||||||||||||||
|
Stock awards and options exercised
|
— | — |
|
— | — | — | — |
|
— | |||||||||||||||||||||||
| Balance at Sept. 30, 2022 | $ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
(a) | $ |
|
|||||||||||||
| Notes to Consolidated Financial Statements | ||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Securities at Sept. 30, 2023
|
Gross
unrealized |
Fair
value |
||||||||||||
| Amortized cost | ||||||||||||||
| (in millions) | Gains | Losses | ||||||||||||
| Available-for-sale: | ||||||||||||||
| U.S. Treasury | $ |
|
$ |
|
$ |
|
$ |
|
||||||
| Agency residential mortgage-backed securities (“RMBS”) |
|
|
|
|
||||||||||
| Sovereign debt/sovereign guaranteed |
|
|
|
|
||||||||||
| Supranational |
|
|
|
|
||||||||||
| Agency commercial mortgage-backed securities (“MBS”) |
|
|
|
|
||||||||||
| Foreign covered bonds |
|
|
|
|
||||||||||
| Collateralized loan obligations (“CLOs”) |
|
|
|
|
||||||||||
| Non-agency commercial MBS |
|
|
|
|
||||||||||
| U.S. government agencies |
|
|
|
|
||||||||||
| Foreign government agencies/local governments |
|
|
|
|
||||||||||
| Non-agency RMBS |
|
|
|
|
||||||||||
| Other asset-backed securities (“ABS”) |
|
|
|
|
||||||||||
| Other debt securities |
|
|
|
|
||||||||||
|
Total securities available-for-sale
(a)(b)
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
| Held-to-maturity: | ||||||||||||||
| Agency RMBS | $ |
|
$ |
|
$ |
|
$ |
|
||||||
| U.S. Treasury |
|
|
|
|
||||||||||
| U.S. government agencies |
|
|
|
|
||||||||||
| Agency commercial MBS |
|
|
|
|
||||||||||
| Sovereign debt/sovereign guaranteed |
|
|
|
|
||||||||||
| CLOs |
|
|
|
|
||||||||||
| Supranational |
|
|
|
|
||||||||||
| Foreign government agencies |
|
|
|
|
||||||||||
| Non-agency RMBS |
|
|
|
|
||||||||||
| State and political subdivisions |
|
|
|
|
||||||||||
| Total securities held-to-maturity | $ |
|
$ |
|
$ |
|
$ |
|
||||||
| Total securities | $ |
|
$ |
|
$ |
|
$ |
|
||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Securities at Dec. 31, 2022
|
Gross
unrealized |
|||||||||||||
| Amortized cost |
Fair
value |
|||||||||||||
| (in millions) | Gains | Losses | ||||||||||||
| Available-for-sale: | ||||||||||||||
| U.S. Treasury | $ |
|
$ |
|
$ |
|
$ |
|
||||||
| Sovereign debt/sovereign guaranteed |
|
|
|
|
||||||||||
| Agency RMBS |
|
|
|
|
||||||||||
| Agency commercial MBS |
|
|
|
|
||||||||||
| Supranational |
|
|
|
|
||||||||||
| Foreign covered bonds |
|
|
|
|
||||||||||
| CLOs |
|
|
|
|
||||||||||
| Non-agency commercial MBS |
|
|
|
|
||||||||||
| U.S. government agencies |
|
|
|
|
||||||||||
| Foreign government agencies/local governments |
|
|
|
|
||||||||||
| Non-agency RMBS |
|
|
|
|
||||||||||
| Other ABS |
|
|
|
|
||||||||||
| State and political subdivisions |
|
|
|
|
||||||||||
| Other debt securities |
|
|
|
|
||||||||||
|
Total securities available-for-sale
(a)(b)
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
| Held-to-maturity: | ||||||||||||||
| Agency RMBS | $ |
|
$ |
|
$ |
|
$ |
|
||||||
| U.S. Treasury |
|
|
|
|
||||||||||
| U.S. government agencies |
|
|
|
|
||||||||||
| Agency commercial MBS |
|
|
|
|
||||||||||
| Sovereign debt/sovereign guaranteed |
|
|
|
|
||||||||||
| CLOs |
|
|
|
|
||||||||||
| Supranational |
|
|
|
|
||||||||||
| Foreign government agencies |
|
|
|
|
||||||||||
| Non-agency RMBS |
|
|
|
|
||||||||||
| State and political subdivisions |
|
|
|
|
||||||||||
| Total securities held-to-maturity | $ |
|
$ |
|
$ |
|
$ |
|
||||||
| Total securities | $ |
|
$ |
|
$ |
|
$ |
|
||||||
| Net securities gains (losses) | |||||||||||||||||
| (in millions) | 3Q23 | 2Q23 | 3Q22 | YTD23 | YTD22 | ||||||||||||
| Realized gross gains | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
| Realized gross losses |
(
|
(
|
(
|
(
|
(
|
||||||||||||
| Total net securities (losses) gains | $ |
(
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
| Net securities gains (losses) | |||||||||||||||||
| (in millions) | 3Q23 | 2Q23 | 3Q22 | YTD23 | YTD22 | ||||||||||||
| Non-agency RMBS | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
| U.S. Treasury |
(
|
|
|
(
|
|
||||||||||||
| State and political subdivisions |
|
|
|
|
(
|
||||||||||||
| Corporate bonds |
|
|
|
|
(
|
||||||||||||
| Other |
|
|
|
|
|
||||||||||||
| Total net securities (losses) gains | $ |
(
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Available-for-sale securities in an unrealized loss position without an allowance for credit losses at Sept. 30, 2023
|
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
|
Fair
value |
Unrealized
losses |
Fair
value |
Unrealized
losses |
Fair
value |
Unrealized
losses |
|||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| U.S. Treasury | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Agency RMBS |
|
|
|
|
|
|
||||||||||||||||||||
| Sovereign debt/sovereign guaranteed |
|
|
|
|
|
|
||||||||||||||||||||
| Agency commercial MBS |
|
|
|
|
|
|
||||||||||||||||||||
| Supranational |
|
|
|
|
|
|
||||||||||||||||||||
| Foreign covered bonds |
|
|
|
|
|
|
||||||||||||||||||||
| CLOs |
|
|
|
|
|
|
||||||||||||||||||||
| Non-agency commercial MBS |
|
|
|
|
|
|
||||||||||||||||||||
| U.S. government agencies |
|
|
|
|
|
|
||||||||||||||||||||
| Foreign government agencies/local governments |
|
|
|
|
|
|
||||||||||||||||||||
| Non-agency RMBS |
|
|
|
|
|
|
||||||||||||||||||||
| Other ABS |
|
|
|
|
|
|
||||||||||||||||||||
|
Total securities available-for-sale
(a)
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
|
Available-for-sale securities in an unrealized loss position without an allowance for credit losses at Dec. 31, 2022
|
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
|
Fair
value |
Unrealized
losses |
Fair
value |
Unrealized
losses |
Fair
value |
Unrealized
losses |
|||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| U.S. Treasury | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Agency RMBS |
|
|
|
|
|
|
||||||||||||||||||||
| Agency commercial MBS |
|
|
|
|
|
|
||||||||||||||||||||
| Sovereign debt/sovereign guaranteed |
|
|
|
|
|
|
||||||||||||||||||||
| Supranational |
|
|
|
|
|
|
||||||||||||||||||||
| CLOs |
|
|
|
|
|
|
||||||||||||||||||||
| Foreign covered bonds |
|
|
|
|
|
|
||||||||||||||||||||
| Non-agency commercial MBS |
|
|
|
|
|
|
||||||||||||||||||||
| Foreign government agencies/local governments |
|
|
|
|
|
|
||||||||||||||||||||
| U.S. government agencies |
|
|
|
|
|
|
||||||||||||||||||||
| Non-agency RMBS |
|
|
|
|
|
|
||||||||||||||||||||
| Other ABS |
|
|
|
|
|
|
||||||||||||||||||||
| State and political subdivisions |
|
|
|
|
|
|
||||||||||||||||||||
|
Total securities available-for-sale
(a)
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Held-to-maturity securities portfolio at Sept. 30, 2023
|
Ratings
(a)
|
|||||||||||||||||||||||||||||||
| Net unrealized gain (loss) |
BB+
and lower |
|||||||||||||||||||||||||||||||
| (dollars in millions) |
Amortized
cost |
AAA/
AA- |
A+/
A- |
BBB+/
BBB- |
Not
rated |
|||||||||||||||||||||||||||
| Agency RMBS | $ |
|
$ |
(
|
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||
| U.S. Treasury |
|
(
|
|
|
|
|
|
|||||||||||||||||||||||||
| U.S. government agencies |
|
(
|
|
|
|
|
|
|||||||||||||||||||||||||
| Agency commercial MBS |
|
(
|
|
|
|
|
|
|||||||||||||||||||||||||
|
Sovereign debt/sovereign guaranteed
(b)
|
|
(
|
|
|
|
|
|
|||||||||||||||||||||||||
| CLOs |
|
(
|
|
|
|
|
|
|||||||||||||||||||||||||
| Supranational |
|
(
|
|
|
|
|
|
|||||||||||||||||||||||||
| Foreign government agencies |
|
(
|
|
|
|
|
|
|||||||||||||||||||||||||
| Non-agency RMBS |
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| State and political subdivisions |
|
(
|
|
|
|
|
|
|||||||||||||||||||||||||
| Total held-to-maturity securities | $ |
|
$ |
(
|
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||
|
Held-to-maturity securities portfolio at Dec. 31, 2022
|
Ratings
(a)
|
|||||||||||||||||||||||||||||||
| Net unrealized gain (loss) |
BB+
and lower |
|||||||||||||||||||||||||||||||
| (dollars in millions) |
Amortized
cost |
AAA/
AA- |
A+/
A- |
BBB+/
BBB- |
Not
rated |
|||||||||||||||||||||||||||
| Agency RMBS | $ |
|
$ |
(
|
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||
| U.S. Treasury |
|
(
|
|
|
|
|
|
|||||||||||||||||||||||||
| U.S. government agencies |
|
(
|
|
|
|
|
|
|||||||||||||||||||||||||
| Agency commercial MBS |
|
(
|
|
|
|
|
|
|||||||||||||||||||||||||
|
Sovereign debt/sovereign guaranteed
(b)
|
|
(
|
|
|
|
|
|
|||||||||||||||||||||||||
| CLOs |
|
(
|
|
|
|
|
|
|||||||||||||||||||||||||
| Supranational |
|
(
|
|
|
|
|
|
|||||||||||||||||||||||||
| Foreign government agencies |
|
(
|
|
|
|
|
|
|||||||||||||||||||||||||
| Non-agency RMBS |
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| State and political subdivisions |
|
(
|
|
|
|
|
|
|||||||||||||||||||||||||
| Total held-to-maturity securities | $ |
|
$ |
(
|
|
% |
|
% |
|
% |
|
% |
|
% | ||||||||||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Maturity distribution and yields on securities at Sept. 30, 2023
|
||||||||||||||||||||||||||||||||||||||||||||
| Within 1 year | 1-5 years | 5-10 years | After 10 years | Total | ||||||||||||||||||||||||||||||||||||||||
| (dollars in millions) | Amount |
Yield
(a)
|
Amount |
Yield
(a)
|
Amount |
Yield
(a)
|
Amount |
Yield
(a)
|
Amount |
Yield
(a)
|
||||||||||||||||||||||||||||||||||
| Available-for-sale: | ||||||||||||||||||||||||||||||||||||||||||||
| U.S. Treasury | $ |
|
|
% | $ |
|
|
% | $ |
|
|
% | $ |
|
|
% | $ |
|
|
% | ||||||||||||||||||||||||
| Sovereign debt/sovereign guaranteed |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| Supranational |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| Foreign covered bonds |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| Foreign government agencies/local governments |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| U.S. government agencies |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| Other debt securities |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||
| Agency RMBS |
|
|
||||||||||||||||||||||||||||||||||||||||||
| Non-agency RMBS |
|
|
||||||||||||||||||||||||||||||||||||||||||
| Agency commercial MBS |
|
|
||||||||||||||||||||||||||||||||||||||||||
| Non-agency commercial MBS |
|
|
||||||||||||||||||||||||||||||||||||||||||
| CLOs |
|
|
||||||||||||||||||||||||||||||||||||||||||
| Other ABS |
|
|
||||||||||||||||||||||||||||||||||||||||||
| Total securities available-for-sale | $ |
|
|
% | $ |
|
|
% | $ |
|
|
% | $ |
|
|
% | $ |
|
|
% | ||||||||||||||||||||||||
| Held-to-maturity: | ||||||||||||||||||||||||||||||||||||||||||||
| U.S. Treasury | $ |
|
|
% | $ |
|
|
% | $ |
|
|
% | $ |
|
|
% | $ |
|
|
% | ||||||||||||||||||||||||
| U.S. government agencies |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| Sovereign debt/sovereign guaranteed |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| Supranational |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| Foreign government agencies |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| State and political subdivisions |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||
| Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||
| Agency RMBS |
|
|
||||||||||||||||||||||||||||||||||||||||||
| Non-agency RMBS |
|
|
||||||||||||||||||||||||||||||||||||||||||
| Agency commercial MBS |
|
|
||||||||||||||||||||||||||||||||||||||||||
| CLOs |
|
|
||||||||||||||||||||||||||||||||||||||||||
| Total securities held-to-maturity | $ |
|
|
% | $ |
|
|
% | $ |
|
|
% | $ |
|
|
% | $ |
|
|
% | ||||||||||||||||||||||||
| Total securities | $ |
|
|
% | $ |
|
|
% | $ |
|
|
% | $ |
|
|
% | $ |
|
|
% | ||||||||||||||||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
| Loans | Sept. 30, 2023 | Dec. 31, 2022 | ||||||
| (in millions) | ||||||||
| Commercial | $ |
|
$ |
|
||||
| Commercial real estate |
|
|
||||||
| Financial institutions |
|
|
||||||
| Lease financings |
|
|
||||||
| Wealth management loans |
|
|
||||||
| Wealth management mortgages |
|
|
||||||
| Other residential mortgages |
|
|
||||||
| Capital call financing |
|
|
||||||
| Other |
|
|
||||||
| Overdrafts |
|
|
||||||
| Margin loans |
|
|
||||||
|
Total loans
(a)
|
$ |
|
$ |
|
||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Allowance for credit losses activity for the quarter ended Sept. 30, 2023
|
Wealth management loans | Wealth management mortgages |
Other
residential mortgages |
Capital call financing | ||||||||||||||||||||||||||||
| (in millions) | Commercial |
Commercial
real estate |
Financial
institutions |
Lease
financings |
Total | |||||||||||||||||||||||||||
| Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Charge-offs |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Recoveries |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Net (charge-offs) recoveries |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
|
Provision
(a)
|
|
|
(
|
|
|
(
|
(
|
(
|
|
|||||||||||||||||||||||
| Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Allowance for: | ||||||||||||||||||||||||||||||||
| Loan losses | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Lending-related commitments |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Individually evaluated for impairment: | ||||||||||||||||||||||||||||||||
|
Loan balance
(b)
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Allowance for loan losses |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
|
Allowance for credit losses activity for the quarter ended June 30, 2023
|
Wealth management loans | Wealth management mortgages |
Other
residential mortgages |
Capital call financing | ||||||||||||||||||||||||||||
| (in millions) | Commercial |
Commercial
real estate |
Financial
institutions |
Lease
financings |
Total | |||||||||||||||||||||||||||
| Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Charge-offs |
|
|
|
|
|
|
(
|
|
(
|
|||||||||||||||||||||||
| Recoveries |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Net (charge-offs) |
|
|
|
|
|
|
(
|
|
(
|
|||||||||||||||||||||||
|
Provision
(a)
|
|
|
|
|
|
|
|
(
|
|
|||||||||||||||||||||||
| Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Allowance for: | ||||||||||||||||||||||||||||||||
| Loan losses | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Lending-related commitments |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Individually evaluated for impairment: | ||||||||||||||||||||||||||||||||
|
Loan balance
(b)
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Allowance for loan losses |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Allowance for credit losses activity for the quarter ended Sept. 30, 2022
|
Wealth management loans | Wealth management mortgages |
Other
residential mortgages |
Capital call financing | Total | |||||||||||||||||||||||||||
| (in millions) | Commercial |
Commercial
real estate |
Financial
institutions |
Lease
financings |
||||||||||||||||||||||||||||
| Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Charge-offs |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Recoveries |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Net recoveries |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
|
Provision
(a)
|
|
(
|
(
|
|
|
|
|
(
|
(
|
|||||||||||||||||||||||
| Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Allowance for: | ||||||||||||||||||||||||||||||||
| Loan losses | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Lending-related commitments |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Individually evaluated for impairment: | ||||||||||||||||||||||||||||||||
|
Loan balance
(b)
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Allowance for loan losses |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Allowance for credit losses activity for the nine months ended Sept. 30, 2023 |
Other
residential mortgages |
Capital call financing | Total | |||||||||||||||||||||||||||||
| (in millions) | Commercial |
Commercial
real estate |
Financial
institutions |
Lease
financings |
Wealth management loans | Wealth management mortgages | ||||||||||||||||||||||||||
| Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Charge-offs |
|
|
|
|
|
|
(
|
|
(
|
|||||||||||||||||||||||
| Recoveries |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Net recoveries (charge-offs) |
|
|
|
|
|
|
(
|
|
|
|||||||||||||||||||||||
|
Provision
(a)
|
|
|
(
|
|
|
(
|
(
|
(
|
|
|||||||||||||||||||||||
| Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Allowance for credit losses activity for the nine months ended Sept. 30, 2022 |
Other
residential mortgages |
Capital call financing | Total | |||||||||||||||||||||||||||||
| (in millions) | Commercial |
Commercial
real estate |
Financial
institutions |
Lease
financings |
Wealth management loans | Wealth management mortgages | ||||||||||||||||||||||||||
| Beginning balance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Charge-offs |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Recoveries |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Net recoveries |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
|
Provision
(a)
|
|
(
|
|
|
|
|
(
|
|
(
|
|||||||||||||||||||||||
| Ending balance | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Nonperforming assets | Sept. 30, 2023 | Dec. 31, 2022 | |||||||||||||||||||||
| Recorded investment | Recorded investment | ||||||||||||||||||||||
|
With an
allowance |
Without an allowance |
With an
allowance |
Without an allowance | ||||||||||||||||||||
| (in millions) | Total | Total | |||||||||||||||||||||
| Nonperforming loans: | |||||||||||||||||||||||
| Other residential mortgages | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
| Wealth management mortgages |
|
|
|
|
|
|
|||||||||||||||||
| Commercial real estate |
|
|
|
|
|
|
|||||||||||||||||
| Total nonperforming loans |
|
|
|
|
|
|
|||||||||||||||||
| Other assets owned |
|
|
|
|
|
|
|||||||||||||||||
| Total nonperforming assets | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
| Past due loans and still accruing interest | Sept. 30, 2023 | Dec. 31, 2022 | |||||||||||||||||||||||||||
| Days past due |
Total
past due |
Days past due |
Total
past due |
||||||||||||||||||||||||||
| (in millions) | 30-59 | 60-89 | ≥90 | 30-59 | 60-89 | ≥90 | |||||||||||||||||||||||
| Wealth management loans | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||
| Commercial real estate |
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Other residential mortgages |
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Wealth management mortgages |
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total past due loans | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
| Credit profile of the loan portfolio | Sept. 30, 2023 | |||||||||||||||||||||||||||||||
| Revolving loans | ||||||||||||||||||||||||||||||||
| Originated, at amortized cost | Amortized cost | Converted to term loans – Amortized cost |
Accrued
interest receivable |
|||||||||||||||||||||||||||||
| (in millions) | YTD23 | 2022 | 2021 | 2020 | 2019 | Prior to 2019 |
Total
(a)
|
|||||||||||||||||||||||||
| Commercial: | ||||||||||||||||||||||||||||||||
| Investment grade | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Non-investment grade |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Total commercial |
|
|
|
|
|
|
|
|
|
$ |
|
|||||||||||||||||||||
| Commercial real estate: | ||||||||||||||||||||||||||||||||
| Investment grade |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Non-investment grade |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Total commercial real estate |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Financial institutions: | ||||||||||||||||||||||||||||||||
| Investment grade |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Non-investment grade |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Total financial institutions |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Wealth management loans: | ||||||||||||||||||||||||||||||||
| Investment grade |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Non-investment grade |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Total wealth management loans |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Wealth management mortgages |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Lease financings |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Other residential mortgages
(b)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Capital call financing |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Other loans |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Margin loans |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Total loans | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
| Credit profile of the loan portfolio | Dec. 31, 2022 | |||||||||||||||||||||||||||||||
| Revolving loans | ||||||||||||||||||||||||||||||||
| Originated, at amortized cost | Amortized cost | Converted to term loans – Amortized cost |
Accrued
interest receivable |
|||||||||||||||||||||||||||||
| (in millions) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior to 2018 |
Total
(a)
|
|||||||||||||||||||||||||
| Commercial: | ||||||||||||||||||||||||||||||||
| Investment grade | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Non-investment grade |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Total commercial |
|
|
|
|
|
|
|
|
|
$ |
|
|||||||||||||||||||||
| Commercial real estate: | ||||||||||||||||||||||||||||||||
| Investment grade |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Non-investment grade |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Total commercial real estate |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Financial institutions: | ||||||||||||||||||||||||||||||||
| Investment grade |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Non-investment grade |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Total financial institutions |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Wealth management loans: | ||||||||||||||||||||||||||||||||
| Investment grade |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Non-investment grade |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Total wealth management loans |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Wealth management mortgages |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Lease financings |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Other residential mortgages |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Capital call financing |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Other loans |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Margin loans |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
| Total loans | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Goodwill by business segment
(in millions)
|
Securities
Services |
Market and Wealth Services |
Investment
and Wealth Management |
Consolidated | ||||||||||
|
Balance at Dec. 31, 2022
|
||||||||||||||
| Goodwill | $ |
|
$ |
|
$ |
|
$ |
|
||||||
| Accumulated impairment losses |
|
|
(
|
(
|
||||||||||
| Net goodwill | $ |
|
$ |
|
$ |
|
$ |
|
||||||
| Foreign currency translation |
(
|
|
|
|
||||||||||
|
Balance at Sept. 30, 2023
|
||||||||||||||
| Goodwill | $ |
|
$ |
|
$ |
|
$ |
|
||||||
| Accumulated impairment losses |
|
|
(
|
(
|
||||||||||
| Net goodwill | $ |
|
$ |
|
$ |
|
$ |
|
||||||
|
Goodwill by business segment
(in millions)
|
Securities
Services |
Market and Wealth Services |
Investment
and Wealth Management |
Consolidated | ||||||||||
|
Balance at Dec. 31, 2021
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
| Impairment loss |
|
|
(
|
(
|
||||||||||
| Dispositions |
(
|
|
|
(
|
||||||||||
| Foreign currency translation |
(
|
(
|
(
|
(
|
||||||||||
|
Balance at Sept. 30, 2022
|
||||||||||||||
| Goodwill | $ |
|
$ |
|
$ |
|
$ |
|
||||||
| Accumulated impairment losses |
|
|
(
|
(
|
||||||||||
| Net goodwill | $ |
|
$ |
|
$ |
|
$ |
|
||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Intangible assets – net carrying amount by business segment
(in millions)
|
Securities
Services |
Market and Wealth Services |
Investment
and Wealth Management |
Other | Consolidated | ||||||||||||
|
Balance at Dec. 31, 2022
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
| Amortization |
(
|
(
|
(
|
|
(
|
||||||||||||
| Foreign currency translation |
|
|
|
|
|
||||||||||||
|
Balance at Sept. 30, 2023
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
|
Intangible assets – net carrying amount by business segment
(in millions)
|
Securities
Services |
Market and Wealth Services |
Investment
and Wealth Management |
Other | Consolidated | ||||||||||||
|
Balance at Dec. 31, 2021
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
| Amortization |
(
|
(
|
(
|
|
(
|
||||||||||||
| Foreign currency translation |
(
|
|
(
|
|
(
|
||||||||||||
|
Balance at Sept. 30, 2022
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
| Intangible assets | Sept. 30, 2023 | Dec. 31, 2022 | ||||||||||||||||||||||||
| (dollars in millions) |
Gross
carrying amount |
Accumulated
amortization |
Net
carrying amount |
Remaining
weighted- average amortization period |
Gross
carrying amount |
Accumulated
amortization |
Net
carrying amount |
|||||||||||||||||||
|
Subject to amortization:
(a)
|
||||||||||||||||||||||||||
|
Customer contracts
–
Securities Services
|
$ |
|
$ |
(
|
$ |
|
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||
|
Customer contracts
–
Market and Wealth Services
|
|
(
|
|
|
|
(
|
|
|||||||||||||||||||
|
Customer relationships
–
Investment and Wealth Management
|
|
(
|
|
|
|
(
|
|
|||||||||||||||||||
| Other |
|
(
|
|
|
|
(
|
|
|||||||||||||||||||
| Total subject to amortization | $ |
|
$ |
(
|
$ |
|
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||
|
Not subject to amortization:
(b)
|
||||||||||||||||||||||||||
| Tradename | $ |
|
N/A | $ |
|
N/A | $ |
|
N/A | $ |
|
|||||||||||||||
| Customer relationships |
|
N/A |
|
N/A |
|
N/A |
|
|||||||||||||||||||
| Total not subject to amortization | $ |
|
N/A | $ |
|
N/A | $ |
|
N/A | $ |
|
|||||||||||||||
| Total intangible assets | $ |
|
$ |
(
|
$ |
|
N/A | $ |
|
$ |
(
|
$ |
|
|||||||||||||
|
For the year ended
Dec. 31, |
Estimated amortization expense
(in millions)
|
|||||||
| 2023 | $ |
|
||||||
| 2024 |
|
|||||||
| 2025 |
|
|||||||
| 2026 |
|
|||||||
| 2027 |
|
|||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
| Other assets | Sept. 30, 2023 | Dec. 31, 2022 | ||||||
| (in millions) | ||||||||
| Corporate/bank-owned life insurance | $ |
|
$ |
|
||||
| Accounts receivable |
|
|
||||||
| Software |
|
|
||||||
| Fails to deliver |
|
|
||||||
| Prepaid pension assets |
|
|
||||||
| Qualified affordable housing project investments |
|
|
||||||
| Cash collateral receivable on derivative transactions |
|
|
||||||
| Equity method investments |
|
|
||||||
| Prepaid expense |
|
|
||||||
| Renewable energy investments |
|
|
||||||
|
Other equity investments
(a)
|
|
|
||||||
| Fair value of hedging derivatives |
|
|
||||||
| Assets of consolidated investment management funds |
|
|
||||||
| Federal Reserve Bank stock |
|
|
||||||
| Income taxes receivable |
|
|
||||||
|
Seed capital
(b)
|
|
|
||||||
|
Other
(c)
|
|
|
||||||
| Total other assets | $ |
|
$ |
|
||||
| Adjustments on non-readily marketable equity securities | Life-to-date | |||||||||||||||||||
| (in millions) | 3Q23 | 2Q23 | 3Q22 | YTD23 | YTD22 | |||||||||||||||
| Upward adjustments | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
| Downward adjustments |
(
|
(
|
|
(
|
(
|
(
|
||||||||||||||
| Net adjustments | $ |
(
|
$ |
|
$ |
|
$ |
(
|
$ |
|
$ |
|
||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
| Investments valued using NAV | Sept. 30, 2023 | Dec. 31, 2022 | |||||||||||||||||||||||||||||||||
| (in millions) | Fair value |
Unfunded
commitments |
Fair value |
Unfunded
commitments |
|||||||||||||||||||||||||||||||
|
Seed capital
(a) (b)
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||
|
Private equity investments
(c)
|
|
|
|
|
|||||||||||||||||||||||||||||||
| Other |
|
|
|
|
|||||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||
| Disaggregation of contract revenue by business segment | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sept. 30, 2023 | Sept. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | Securities Services | Market and Wealth Services | Investment and Wealth Management | Other | Total | Securities Services | Market and Wealth Services | Investment and Wealth Management | Other | Total | |||||||||||||||||||||||||||||||||||||||||||
| Fee and other revenue – contract revenue: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment services fees | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||||||||||
| Investment management and performance fees |
|
|
|
(
|
|
|
|
|
(
|
|
|||||||||||||||||||||||||||||||||||||||||||
| Financing-related fees |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||
| Distribution and servicing fees |
|
(
|
|
|
|
|
(
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||
| Investment and other revenue |
|
|
(
|
|
|
|
|
(
|
(
|
|
|||||||||||||||||||||||||||||||||||||||||||
| Total fee and other revenue – contract revenue |
|
|
|
(
|
|
|
|
|
(
|
|
|||||||||||||||||||||||||||||||||||||||||||
|
Fee and other revenue – not in scope of Accounting Standards Codification (“ASC”) 606
(a)(b)
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||
| Total fee and other revenue | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
| Disaggregation of contract revenue by business segment | Quarter ended | ||||||||||||||||||||||||||||||||||
| June 30, 2023 | |||||||||||||||||||||||||||||||||||
| (in millions) | Securities Services | Market and Wealth Services | Investment and Wealth Management | Other | Total | ||||||||||||||||||||||||||||||
| Fee and other revenue – contract revenue: | |||||||||||||||||||||||||||||||||||
| Investment services fees | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||
| Investment management and performance fees |
|
|
|
(
|
|
||||||||||||||||||||||||||||||
| Financing-related fees |
|
|
|
|
|
||||||||||||||||||||||||||||||
| Distribution and servicing fees |
|
(
|
|
(
|
|
||||||||||||||||||||||||||||||
| Investment and other revenue |
|
|
(
|
|
|
||||||||||||||||||||||||||||||
| Total fee and other revenue – contract revenue |
|
|
|
(
|
|
||||||||||||||||||||||||||||||
|
Fee and other revenue – not in scope of ASC 606
(a)(b)
|
|
|
|
|
|
||||||||||||||||||||||||||||||
| Total fee and other revenue | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||
| Disaggregation of contract revenue by business segment | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Year-to-date | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Sept. 30, 2023 | Sept. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | Securities Services | Market and Wealth Services | Investment and Wealth Management | Other | Total | Securities Services | Market and Wealth Services | Investment and Wealth Management | Other | Total | ||||||||||||||||||||||||||||||||||||||||
| Fee and other revenue – contract revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment services fees | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
||||||||||||||||||||||||||||||
| Investment management and performance fees |
|
|
|
(
|
|
|
|
|
(
|
|
||||||||||||||||||||||||||||||||||||||||
| Financing-related fees |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
| Distribution and servicing fees |
|
(
|
|
|
|
|
(
|
|
|
|
||||||||||||||||||||||||||||||||||||||||
| Investment and other revenue |
|
|
(
|
|
|
|
|
(
|
(
|
|
||||||||||||||||||||||||||||||||||||||||
| Total fee and other revenue – contract revenue |
|
|
|
(
|
|
|
|
|
(
|
|
||||||||||||||||||||||||||||||||||||||||
|
Fee and other revenue – not in scope of ASC 606
(a)(b)
|
|
|
|
|
|
|
|
(
|
|
|
||||||||||||||||||||||||||||||||||||||||
| Total fee and other revenue | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
| Net interest revenue | Quarter ended | Year-to-date | ||||||||||||||||||
| (in millions) | Sept. 30, 2023 | June 30, 2023 | Sept. 30, 2022 | Sept. 30, 2023 | Sept. 30, 2022 | |||||||||||||||
| Interest revenue | ||||||||||||||||||||
| Deposits with the Federal Reserve and other central banks | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||
| Deposits with banks |
|
|
|
|
|
|||||||||||||||
| Federal funds sold and securities purchased under resale agreements |
|
|
|
|
|
|||||||||||||||
| Loans |
|
|
|
|
|
|||||||||||||||
| Securities: | ||||||||||||||||||||
| Taxable |
|
|
|
|
|
|||||||||||||||
| Exempt from federal income taxes |
|
|
|
|
|
|||||||||||||||
| Total securities |
|
|
|
|
|
|||||||||||||||
| Trading securities |
|
|
|
|
|
|||||||||||||||
| Total interest revenue |
|
|
|
|
|
|||||||||||||||
| Interest expense | ||||||||||||||||||||
| Deposits |
|
|
|
|
|
|||||||||||||||
| Federal funds purchased and securities sold under repurchase agreements |
|
|
|
|
|
|||||||||||||||
| Trading liabilities |
|
|
|
|
|
|||||||||||||||
| Other borrowed funds |
|
|
|
|
|
|||||||||||||||
| Customer payables |
|
|
|
|
|
|||||||||||||||
| Long-term debt |
|
|
|
|
|
|||||||||||||||
| Total interest expense |
|
|
|
|
|
|||||||||||||||
| Net interest revenue |
|
|
|
|
|
|||||||||||||||
| Provision for credit losses |
|
|
(
|
|
|
|||||||||||||||
| Net interest revenue after provision for credit losses | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Net periodic benefit (credit) cost
|
Quarter ended | ||||||||||||||||||||||||||||||||||
| Sept. 30, 2023 | June 30, 2023 | Sept. 30, 2022 | |||||||||||||||||||||||||||||||||
| (in millions) | Domestic pension benefits | Foreign pension benefits | Health care benefits | Domestic pension benefits | Foreign pension benefits | Health care benefits | Domestic pension benefits | Foreign pension benefits | Health care benefits | ||||||||||||||||||||||||||
| Service cost | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||
| Interest cost |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
| Expected return on assets |
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
||||||||||||||||||||||||||
| Other |
|
(
|
(
|
|
(
|
(
|
|
|
(
|
||||||||||||||||||||||||||
|
Net periodic benefit (credit) cost
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
|||||||||||||||||
| Net periodic benefit (credit) cost | Year-to-date | ||||||||||||||||||||||
| Sept. 30, 2023 | Sept. 30, 2022 | ||||||||||||||||||||||
| (in millions) | Domestic pension benefits | Foreign pension benefits | Health care benefits | Domestic pension benefits | Foreign pension benefits | Health care benefits | |||||||||||||||||
| Service cost | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
| Interest cost |
|
|
|
|
|
|
|||||||||||||||||
| Expected return on assets |
(
|
(
|
(
|
(
|
(
|
(
|
|||||||||||||||||
| Other |
|
(
|
(
|
|
|
(
|
|||||||||||||||||
| Net periodic benefit (credit) cost | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
|||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
| Consolidated investment management funds | |||||||||||||||||||||||||||||
| Sept. 30, 2023 | Dec. 31, 2022 | ||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Trading assets | $ |
|
$ |
|
|||||||||||||||||||||||||
| Other assets |
|
|
|||||||||||||||||||||||||||
|
Total assets
(a)
|
$ |
|
$ |
|
|||||||||||||||||||||||||
| Other liabilities | $ |
|
$ |
|
|||||||||||||||||||||||||
|
Total liabilities
(b)
|
$ |
|
$ |
|
|||||||||||||||||||||||||
|
Nonredeemable noncontrolling
interests
(c)
|
$ |
|
$ |
|
|||||||||||||||||||||||||
| Non-consolidated VIEs | Sept. 30, 2023 | Dec. 31, 2022 | ||||||
| (in millions) | ||||||||
| Other assets | $ |
|
$ |
|
||||
| Other liabilities |
|
|
||||||
| Maximum loss exposure |
|
|
||||||
|
Preferred stock summary
(a)
|
Total shares issued and outstanding |
Carrying value
(b)
|
||||||||||||||||||
| (in millions) | ||||||||||||||||||||
| Sept. 30, 2023 | Dec. 31, 2022 | Sept. 30, 2023 | Dec. 31, 2022 | |||||||||||||||||
|
Per annum dividend rate
(c)
|
||||||||||||||||||||
| Series A |
Greater of (i) SOFR plus
|
|
|
$ |
|
$ |
|
|||||||||||||
| Series D |
SOFR plus
|
|
|
|
|
|||||||||||||||
| Series F |
|
|
|
|
|
|||||||||||||||
| Series G |
|
|
|
|
|
|||||||||||||||
| Series H |
|
|
|
|
|
|||||||||||||||
| Series I |
|
|
|
|
|
|||||||||||||||
| Total |
|
|
$ |
|
$ |
|
||||||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
| Preferred dividends | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in millions, except per share amounts) |
Depositary shares
per share |
3Q23 | 2Q23 | 3Q22 | YTD23 | YTD22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Per share |
Total
dividend |
Per share |
Total
dividend |
Per share |
Total
dividend |
Per share |
Total
dividend |
Per share |
Total
dividend |
||||||||||||||||||||||||||||||||||||||||||||||||||
| Series A | 100 | (a) | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||
| Series D | 100 |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||
| Series F | 100 |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||
| Series G | 100 |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||
| Series H | 100 |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||
| Series I | 100 |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Components of other comprehensive income (loss) | Quarter ended | ||||||||||||||||||||||||||||||||||
| Sept. 30, 2023 | June 30, 2023 | Sept. 30, 2022 | |||||||||||||||||||||||||||||||||
| (in millions) |
Pre-tax
amount |
Tax
(expense) benefit |
After-tax
amount |
Pre-tax
amount |
Tax
(expense) benefit |
After-tax
amount |
Pre-tax
amount |
Tax
(expense) benefit |
After-tax
amount |
||||||||||||||||||||||||||
| Foreign currency translation: | |||||||||||||||||||||||||||||||||||
|
Foreign currency translation adjustments arising during the period
(a)
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||||||||||||
| Total foreign currency translation |
(
|
(
|
(
|
|
|
|
(
|
(
|
(
|
||||||||||||||||||||||||||
| Unrealized gain (loss) on assets available-for-sale: | |||||||||||||||||||||||||||||||||||
| Unrealized (loss) arising during period |
(
|
|
(
|
(
|
|
(
|
(
|
|
(
|
||||||||||||||||||||||||||
|
Reclassification adjustment
(b)
|
|
(
|
|
|
|
|
(
|
|
(
|
||||||||||||||||||||||||||
| Net unrealized (loss) on assets available-for-sale |
(
|
|
(
|
(
|
|
(
|
(
|
|
(
|
||||||||||||||||||||||||||
| Defined benefit plans: | |||||||||||||||||||||||||||||||||||
|
Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost
(b)
|
(
|
|
(
|
(
|
|
(
|
|
(
|
|
||||||||||||||||||||||||||
| Total defined benefit plans |
(
|
|
(
|
(
|
|
(
|
|
(
|
|
||||||||||||||||||||||||||
| Unrealized gain (loss) on cash flow hedges: | |||||||||||||||||||||||||||||||||||
| Unrealized hedge (loss) gain arising during period |
(
|
|
|
|
(
|
|
(
|
|
(
|
||||||||||||||||||||||||||
| Reclassification of net loss to net income: | |||||||||||||||||||||||||||||||||||
| FX contracts – investment and other revenue |
|
(
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
| Foreign exchange (“FX”) contracts – staff expense |
(
|
|
(
|
|
|
|
|
(
|
|
||||||||||||||||||||||||||
| Total reclassifications to net income |
|
|
|
|
|
|
|
(
|
|
||||||||||||||||||||||||||
| Net unrealized (loss) gain on cash flow hedges |
(
|
|
|
|
(
|
|
(
|
|
(
|
||||||||||||||||||||||||||
| Total other comprehensive (loss) income | $ |
(
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
|
$ |
(
|
|||||||||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
| Components of other comprehensive income (loss) | Year-to-date | ||||||||||||||||||||||
| Sept. 30, 2023 | Sept. 30, 2022 | ||||||||||||||||||||||
| (in millions) |
Pre-tax
amount |
Tax
(expense) benefit |
After-tax
amount |
Pre-tax
amount |
Tax
(expense) benefit |
After-tax
amount |
|||||||||||||||||
| Foreign currency translation: | |||||||||||||||||||||||
|
Foreign currency translation adjustments arising during the period
(a)
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
|||||||||||
| Total foreign currency translation |
|
(
|
|
(
|
(
|
(
|
|||||||||||||||||
| Unrealized gain (loss) on assets available-for-sale: | |||||||||||||||||||||||
| Unrealized gain (loss) arising during period |
|
(
|
|
(
|
|
(
|
|||||||||||||||||
|
Reclassification adjustment
(b)
|
|
(
|
|
(
|
|
(
|
|||||||||||||||||
| Net unrealized gain (loss) on assets available-for-sale |
|
(
|
|
(
|
|
(
|
|||||||||||||||||
| Defined benefit plans: | |||||||||||||||||||||||
|
Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost
(b)
|
(
|
|
(
|
|
(
|
|
|||||||||||||||||
| Total defined benefit plans |
(
|
|
(
|
|
(
|
|
|||||||||||||||||
| Unrealized gain (loss) on cash flow hedges: | |||||||||||||||||||||||
| Unrealized hedge gain (loss) arising during period |
|
(
|
|
(
|
|
(
|
|||||||||||||||||
| Reclassification of net loss to net income: | |||||||||||||||||||||||
| FX contracts – staff expense |
|
|
|
|
(
|
|
|||||||||||||||||
| FX contracts – investment and other revenue |
|
(
|
|
|
|
|
|||||||||||||||||
| Total reclassifications to net income |
|
(
|
|
|
(
|
|
|||||||||||||||||
| Net unrealized gain (loss) on cash flow hedges |
|
(
|
|
(
|
|
(
|
|||||||||||||||||
| Total other comprehensive income (loss) | $ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
|||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Assets and liabilities measured at fair value on a recurring basis at Sept. 30, 2023
|
Total carrying
value |
||||||||||||||||
| (dollars in millions) | Level 1 | Level 2 | Level 3 |
Netting
(a)
|
|||||||||||||
| Available-for-sale securities: | |||||||||||||||||
| U.S. Treasury | $ |
|
$ |
|
$ |
|
$ | — | $ |
|
|||||||
| Agency RMBS |
|
|
|
— |
|
||||||||||||
| Sovereign debt/sovereign guaranteed |
|
|
|
— |
|
||||||||||||
| Supranational |
|
|
|
— |
|
||||||||||||
| Agency commercial MBS |
|
|
|
— |
|
||||||||||||
| Foreign covered bonds |
|
|
|
— |
|
||||||||||||
| CLOs |
|
|
|
— |
|
||||||||||||
| Non-agency commercial MBS |
|
|
|
— |
|
||||||||||||
| U.S. government agencies |
|
|
|
— |
|
||||||||||||
| Foreign government agencies/local governments |
|
|
|
— |
|
||||||||||||
| Non-agency RMBS |
|
|
|
— |
|
||||||||||||
| Other ABS |
|
|
|
— |
|
||||||||||||
| Other debt securities |
|
|
|
— |
|
||||||||||||
| Total available-for-sale securities |
|
|
|
— |
|
||||||||||||
| Trading assets: | |||||||||||||||||
| Debt instruments |
|
|
|
— |
|
||||||||||||
| Equity instruments |
|
|
|
— |
|
||||||||||||
| Derivative assets not designated as hedging: | |||||||||||||||||
| Interest rate |
|
|
|
(
|
|
||||||||||||
| Foreign exchange |
|
|
|
(
|
|
||||||||||||
| Equity and other contracts |
|
|
|
(
|
|
||||||||||||
| Total derivative assets not designated as hedging |
|
|
|
(
|
|
||||||||||||
| Total trading assets |
|
|
|
(
|
|
||||||||||||
| Other assets: | |||||||||||||||||
| Derivative assets designated as hedging: | |||||||||||||||||
| Interest rate |
|
|
|
— |
|
||||||||||||
| Foreign exchange |
|
|
|
— |
|
||||||||||||
| Total derivative assets designated as hedging |
|
|
|
— |
|
||||||||||||
|
Other assets
(b)
|
|
|
|
— |
|
||||||||||||
| Total other assets |
|
|
|
— |
|
||||||||||||
|
Assets measured at NAV
(b)
|
|
||||||||||||||||
| Total assets | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
| Percentage of total assets prior to netting |
|
% |
|
% |
|
% | |||||||||||
| Liabilities | |||||||||||||||||
| Trading liabilities: | |||||||||||||||||
| Debt instruments | $ |
|
$ |
|
$ |
|
$ | — | $ |
|
|||||||
| Equity instruments |
|
|
|
— |
|
||||||||||||
| Derivative liabilities not designated as hedging: | |||||||||||||||||
| Interest rate |
|
|
|
(
|
|
||||||||||||
| Foreign exchange |
|
|
|
(
|
|
||||||||||||
| Equity and other contracts |
|
|
|
(
|
|
||||||||||||
| Total derivative liabilities not designated as hedging |
|
|
|
(
|
|
||||||||||||
| Total trading liabilities |
|
|
|
(
|
|
||||||||||||
| Other liabilities: | |||||||||||||||||
| Derivative liabilities designated as hedging: | |||||||||||||||||
| Foreign exchange |
|
|
|
— |
|
||||||||||||
| Total derivative liabilities designated as hedging |
|
|
|
— |
|
||||||||||||
| Other liabilities |
|
|
|
— |
|
||||||||||||
| Total other liabilities |
|
|
|
— |
|
||||||||||||
| Total liabilities | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
| Percentage of total liabilities prior to netting |
|
% |
|
% |
|
% | |||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Assets and liabilities measured at fair value on a recurring basis at Dec. 31, 2022
|
Total carrying
value |
||||||||||||||||
| (dollars in millions) | Level 1 | Level 2 | Level 3 |
Netting
(a)
|
|||||||||||||
| Assets | |||||||||||||||||
| Available-for-sale securities: | |||||||||||||||||
| U.S. Treasury | $ |
|
$ |
|
$ |
|
$ | — | $ |
|
|||||||
| Sovereign debt/sovereign guaranteed |
|
|
|
— |
|
||||||||||||
| Agency RMBS |
|
|
|
— |
|
||||||||||||
| Agency commercial MBS |
|
|
|
— |
|
||||||||||||
| Supranational |
|
|
|
— |
|
||||||||||||
| Foreign covered bonds |
|
|
|
— |
|
||||||||||||
| CLOs |
|
|
|
— |
|
||||||||||||
| Non-agency commercial MBS |
|
|
|
— |
|
||||||||||||
| U.S. government agencies |
|
|
|
— |
|
||||||||||||
| Foreign government agencies/local governments |
|
|
|
— |
|
||||||||||||
| Non-agency RMBS |
|
|
|
— |
|
||||||||||||
| Other ABS |
|
|
|
— |
|
||||||||||||
| State and political subdivisions |
|
|
|
— |
|
||||||||||||
| Other debt securities |
|
|
|
— |
|
||||||||||||
| Total available-for-sale securities |
|
|
|
— |
|
||||||||||||
| Trading assets: | |||||||||||||||||
| Debt instruments |
|
|
|
— |
|
||||||||||||
| Equity instruments |
|
|
|
— |
|
||||||||||||
| Derivative assets not designated as hedging: | |||||||||||||||||
| Interest rate |
|
|
|
(
|
|
||||||||||||
| Foreign exchange |
|
|
|
(
|
|
||||||||||||
| Equity and other contracts |
|
|
|
(
|
|
||||||||||||
| Total derivative assets not designated as hedging |
|
|
|
(
|
|
||||||||||||
| Total trading assets |
|
|
|
(
|
|
||||||||||||
|
Other assets
:
|
|||||||||||||||||
| Derivative assets designated as hedging: | |||||||||||||||||
| Interest rate |
|
|
|
— |
|
||||||||||||
| Foreign exchange |
|
|
|
— |
|
||||||||||||
| Total derivative assets designated as hedging |
|
|
|
— |
|
||||||||||||
|
Other assets
(b)
|
|
|
|
— |
|
||||||||||||
| Total other assets |
|
|
|
— |
|
||||||||||||
|
Assets measured at NAV
(b)
|
|
||||||||||||||||
| Total assets | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
| Percentage of total assets prior to netting |
|
% |
|
% |
|
% | |||||||||||
| Liabilities | |||||||||||||||||
| Trading liabilities: | |||||||||||||||||
| Debt instruments | $ |
|
$ |
|
$ |
|
$ | — | $ |
|
|||||||
| Equity instruments |
|
|
|
— |
|
||||||||||||
| Derivative liabilities not designated as hedging: | |||||||||||||||||
| Interest rate |
|
|
|
(
|
|
||||||||||||
| Foreign exchange |
|
|
|
(
|
|
||||||||||||
| Equity and other contracts |
|
|
|
(
|
|
||||||||||||
| Total derivative liabilities not designated as hedging |
|
|
|
(
|
|
||||||||||||
| Total trading liabilities |
|
|
|
(
|
|
||||||||||||
| Other liabilities: | |||||||||||||||||
| Derivative liabilities designated as hedging: | |||||||||||||||||
| Foreign exchange |
|
|
|
— |
|
||||||||||||
| Total derivative liabilities designated as hedging |
|
|
|
— |
|
||||||||||||
| Other liabilities |
|
|
|
— |
|
||||||||||||
| Total other liabilities |
|
|
|
— |
|
||||||||||||
| Total liabilities | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||
| Percentage of total liabilities prior to netting |
|
% |
|
% |
|
% | |||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
| Details of certain available-for-sale securities measured at fair value on a recurring basis | Sept. 30, 2023 | Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||
|
Total
carrying
value
(b)
|
Ratings
(a)
|
Total
carrying value
(b)
|
Ratings
(a)
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
AAA/
AA- |
A+/
A- |
BBB+/
BBB- |
BB+ and
lower |
Not rated |
AAA/
AA- |
A+/
A- |
BBB+/
BBB- |
BB+ and
lower |
Not rated | ||||||||||||||||||||||||||||||||||||||||||||
| (dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-agency RMBS, originated in: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2008-2023 | $ |
|
|
% |
|
% |
|
% |
|
% |
|
% | $ |
|
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||||||||
| 2007 and earlier |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Total non-agency RMBS | $ |
|
|
% |
|
% |
|
% |
|
% |
|
% | $ |
|
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||||||||
| Non-agency commercial MBS originated in: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2009-2023 | $ |
|
|
% |
|
% |
|
% |
|
% |
|
% | $ |
|
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||||||||
| Foreign covered bonds: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Canada | $ |
|
|
% |
|
% |
|
% |
|
% |
|
% | $ |
|
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||||||||
| UK |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Australia |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Germany |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Norway |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Other |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Total foreign covered bonds | $ |
|
|
% |
|
% |
|
% |
|
% |
|
% | $ |
|
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||||||||
| Sovereign debt/sovereign guaranteed: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Germany | $ |
|
|
% |
|
% |
|
% |
|
% |
|
% | $ |
|
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||||||||
| France |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| UK |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Canada |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Singapore |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Japan |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Spain |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Hong Kong |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Italy |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Austria |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
|
Other
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Total sovereign debt/sovereign guaranteed | $ |
|
|
% |
|
% |
|
% |
|
% |
|
% | $ |
|
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||||||||
| Foreign government agencies/local governments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Canada | $ |
|
|
% |
|
% |
|
% |
|
% |
|
% | $ |
|
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||||||||
| Norway |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Netherlands |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Sweden |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| France |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Other |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||
| Total foreign government agencies/local governments | $ |
|
|
% |
|
% |
|
% |
|
% |
|
% | $ |
|
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Assets measured at fair value on a nonrecurring basis
|
Sept. 30, 2023 | Dec. 31, 2022 | ||||||||||||||||||||||||||||||
|
Total carrying
value |
Total carrying
value |
|||||||||||||||||||||||||||||||
| (in millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
|
Loans
(a)
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||
|
Other assets
(b)
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
| Total assets at fair value on a nonrecurring basis | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||
| Summary of financial instruments | Sept. 30, 2023 | ||||||||||||||||
| (in millions) | Level 1 | Level 2 | Level 3 |
Total
estimated fair value |
Carrying
amount |
||||||||||||
| Assets: | |||||||||||||||||
|
Interest-bearing deposits with the Federal Reserve and other central banks
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
| Interest-bearing deposits with banks |
|
|
|
|
|
||||||||||||
| Federal funds sold and securities purchased under resale agreements |
|
|
|
|
|
||||||||||||
| Securities held-to-maturity |
|
|
|
|
|
||||||||||||
|
Loans
(a)
|
|
|
|
|
|
||||||||||||
| Other financial assets |
|
|
|
|
|
||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
| Liabilities: | |||||||||||||||||
| Noninterest-bearing deposits | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
| Interest-bearing deposits |
|
|
|
|
|
||||||||||||
| Federal funds purchased and securities sold under repurchase agreements |
|
|
|
|
|
||||||||||||
| Payables to customers and broker-dealers |
|
|
|
|
|
||||||||||||
| Borrowings |
|
|
|
|
|
||||||||||||
| Long-term debt |
|
|
|
|
|
||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
| Summary of financial instruments | Dec. 31, 2022 | ||||||||||||||||
| (in millions) | Level 1 | Level 2 | Level 3 |
Total estimated
fair value |
Carrying
amount |
||||||||||||
| Assets: | |||||||||||||||||
|
Interest-bearing deposits with the Federal Reserve and other central banks
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
| Interest-bearing deposits with banks |
|
|
|
|
|
||||||||||||
| Federal funds sold and securities purchased under resale agreements |
|
|
|
|
|
||||||||||||
| Securities held-to-maturity |
|
|
|
|
|
||||||||||||
|
Loans
(a)
|
|
|
|
|
|
||||||||||||
| Other financial assets |
|
|
|
|
|
||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
| Liabilities: | |||||||||||||||||
| Noninterest-bearing deposits | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
| Interest-bearing deposits |
|
|
|
|
|
||||||||||||
| Federal funds purchased and securities sold under repurchase agreements |
|
|
|
|
|
||||||||||||
| Payables to customers and broker-dealers |
|
|
|
|
|
||||||||||||
| Borrowings |
|
|
|
|
|
||||||||||||
| Long-term debt |
|
|
|
|
|
||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
|
Assets and liabilities of consolidated investment
management funds, at fair value
|
||||||||
| Sept. 30, 2023 | Dec. 31, 2022 | |||||||
| (in millions) | ||||||||
| Assets of consolidated investment management funds: | ||||||||
| Trading assets | $ |
|
$ |
|
||||
| Other assets |
|
|
||||||
| Total assets of consolidated investment management funds | $ |
|
$ |
|
||||
| Liabilities of consolidated investment management funds: | ||||||||
| Other liabilities | $ |
|
$ |
|
||||
| Total liabilities of consolidated investment management funds | $ |
|
$ |
|
||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Notes to Consolidated Financial Statements
(continued)
|
||
| Income statement impact of fair value and cash flow hedges | ||||||||||||||||||||
| (in millions) | Location of gains (losses) | 3Q23 | 2Q23 | 3Q22 | YTD23 | YTD22 | ||||||||||||||
| Interest rate fair value hedges of available-for-sale securities | ||||||||||||||||||||
| Derivative | Interest revenue | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||
| Hedged item | Interest revenue |
(
|
(
|
(
|
(
|
(
|
||||||||||||||
| Interest rate fair value hedges of long-term debt | ||||||||||||||||||||
| Derivative | Interest expense |
(
|
(
|
(
|
(
|
(
|
||||||||||||||
| Hedged item | Interest expense |
|
|
|
|
|
||||||||||||||
| Foreign exchange fair value hedges of available-for-sale securities | ||||||||||||||||||||
|
Derivative
(a)
|
Foreign exchange revenue |
|
|
(
|
|
(
|
||||||||||||||
| Hedged item | Foreign exchange revenue |
|
|
|
|
|
||||||||||||||
| Cash flow hedges of forecasted FX exposures | ||||||||||||||||||||
| Gain (loss) reclassified from OCI into income | Staff expense |
|
|
(
|
(
|
(
|
||||||||||||||
| (Loss) reclassified from OCI into income | Investment and other revenue |
(
|
(
|
(
|
(
|
(
|
||||||||||||||
| Gain (loss) recognized in the consolidated income statement due to fair value and cash flow hedging relationships | $ |
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
||||||||||
| Impact of derivative instruments used in net investment hedging relationships | ||||||||||||||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||||||||||||||
| Derivatives in net investment hedging relationships | Gain or (loss) recognized in accumulated OCI on derivatives |
Location of gain or (loss) reclassified from accumulated
OCI into income |
Gain or (loss) reclassified from
accumulated OCI into income |
|||||||||||||||||||||||||||||||||||
| 3Q23 | 2Q23 | 3Q22 | YTD23 | YTD22 | 3Q23 | 2Q23 | 3Q22 | YTD23 | YTD22 | |||||||||||||||||||||||||||||
| FX contracts | $ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
Net interest revenue | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||
| Hedged items in fair value hedging relationships |
Carrying amount of hedged
asset or liability |
Hedge accounting basis adjustment increase (decrease)
(a)
|
|||||||||||||||
| (in millions) | Sept. 30, 2023 | Dec. 31, 2022 | Sept. 30, 2023 | Dec. 31, 2022 | |||||||||||||
|
Available-for-sale securities
(b)
|
$ |
|
$ |
|
$ |
(
|
$ |
(
|
|||||||||
| Long-term debt | $ |
|
$ |
|
$ |
(
|
$ |
(
|
|||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
| Impact of derivative instruments on the balance sheet | Notional value |
Asset derivatives
fair value |
Liability derivatives
fair value |
|||||||||||||||||||||||
| Sept. 30, 2023 | Dec. 31, 2022 | Sept. 30, 2023 | Dec. 31, 2022 | Sept. 30, 2023 | Dec. 31, 2022 | |||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
|
Derivatives designated as hedging instruments:
(a)(b)
|
||||||||||||||||||||||||||
| Interest rate contracts | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Foreign exchange contracts |
|
|
|
|
|
|
||||||||||||||||||||
| Total derivatives designated as hedging instruments | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
|
Derivatives not designated as hedging instruments:
(b)(c)
|
||||||||||||||||||||||||||
| Interest rate contracts | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||
| Foreign exchange contracts |
|
|
|
|
|
|
||||||||||||||||||||
| Equity contracts |
|
|
|
|
|
|
||||||||||||||||||||
| Credit contracts |
|
|
|
|
|
|
||||||||||||||||||||
| Total derivatives not designated as hedging instruments | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
|
Total derivatives fair value
(d)
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
|
Effect of master netting agreements
(e)
|
(
|
(
|
(
|
(
|
||||||||||||||||||||||
| Fair value after effect of master netting agreements | $ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||
| Foreign exchange revenue and other trading revenue | |||||||||||||||||
| (in millions) | 3Q23 | 2Q23 | 3Q22 | YTD23 | YTD22 | ||||||||||||
| Foreign exchange revenue | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||
| Other trading revenue |
|
|
|
|
|
||||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
| Sept. 30, 2023 | Dec. 31, 2022 | |||||||||||||
| (in millions) | ||||||||||||||
|
Aggregate fair value of OTC derivatives in net liability positions
(a)
|
$ |
|
$ |
|
||||||||||
| Collateral posted | $ |
|
$ |
|
||||||||||
|
Potential close-out exposures (fair value)
(a)
|
||||||||
| Sept. 30, 2023 | Dec. 31, 2022 | |||||||
| (in millions) | ||||||||
|
If The Bank of New York Mellon’s rating changed to:
(b)
|
||||||||
| A3/A- | $ |
|
$ |
|
||||
| Baa2/BBB | $ |
|
$ |
|
||||
| Ba1/BB+ | $ |
|
$ |
|
||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Offsetting of derivative assets and financial assets at Sept. 30, 2023
|
|||||||||||||||||||||||
| Gross assets recognized | Gross amounts offset in the balance sheet | Net assets recognized in the balance sheet | Gross amounts not offset in the balance sheet | ||||||||||||||||||||
| (in millions) | (a) | Financial instruments | Cash collateral received | Net amount | |||||||||||||||||||
|
Derivatives subject to netting arrangements:
|
|||||||||||||||||||||||
| Interest rate contracts | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
| Foreign exchange contracts |
|
|
|
|
|
|
|||||||||||||||||
| Equity and other contracts |
|
|
|
|
|
|
|||||||||||||||||
|
Total derivatives subject to netting arrangements
|
|
|
|
|
|
|
|||||||||||||||||
|
Total derivatives not subject to netting arrangements
|
|
— |
|
— | — |
|
|||||||||||||||||
| Total derivatives |
|
|
|
|
|
|
|||||||||||||||||
| Reverse repurchase agreements |
|
|
(b) |
|
|
|
|
||||||||||||||||
| Securities borrowing |
|
— |
|
|
— |
|
|||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Offsetting of derivative assets and financial assets at Dec. 31, 2022
|
|||||||||||||||||||||||
| Gross assets recognized | Gross amounts offset in the balance sheet |
Net assets recognized
in the balance sheet |
Gross amounts not offset in the balance sheet | ||||||||||||||||||||
| (in millions) | (a) | Financial instruments | Cash collateral received | Net amount | |||||||||||||||||||
|
Derivatives subject to netting arrangements:
|
|||||||||||||||||||||||
| Interest rate contracts | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
| Foreign exchange contracts |
|
|
|
|
|
|
|||||||||||||||||
| Equity and other contracts |
|
|
|
|
|
|
|||||||||||||||||
|
Total derivatives subject to netting arrangements
|
|
|
|
|
|
|
|||||||||||||||||
|
Total derivatives not subject to netting arrangements
|
|
— |
|
— | — |
|
|||||||||||||||||
| Total derivatives |
|
|
|
|
|
|
|||||||||||||||||
| Reverse repurchase agreements |
|
|
(b) |
|
|
|
|
||||||||||||||||
| Securities borrowing |
|
— |
|
|
— |
|
|||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Offsetting of derivative liabilities and financial liabilities at Sept. 30, 2023
|
Net liabilities recognized in the balance sheet | ||||||||||||||||||||||
| Gross liabilities recognized | Gross amounts offset in the balance sheet | Gross amounts not offset in the balance sheet | |||||||||||||||||||||
| (in millions) | (a) | Financial instruments | Cash collateral pledged | Net amount | |||||||||||||||||||
|
Derivatives subject to netting arrangements:
|
|||||||||||||||||||||||
| Interest rate contracts | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
| Foreign exchange contracts |
|
|
|
|
|
|
|||||||||||||||||
| Equity and other contracts |
|
|
|
|
|
|
|||||||||||||||||
|
Total derivatives subject to netting arrangements
|
|
|
|
|
|
|
|||||||||||||||||
|
Total derivatives not subject to netting arrangements
|
|
— |
|
— | — |
|
|||||||||||||||||
| Total derivatives |
|
|
|
|
|
|
|||||||||||||||||
| Repurchase agreements |
|
|
(b) |
|
|
|
|
||||||||||||||||
| Securities lending |
|
— |
|
|
— |
|
|||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Offsetting of derivative liabilities and financial liabilities at Dec. 31, 2022
|
Net liabilities recognized
in the balance sheet |
||||||||||||||||||||||
| Gross liabilities recognized | Gross amounts offset in the balance sheet | Gross amounts not offset in the balance sheet | |||||||||||||||||||||
| (in millions) | (a) | Financial instruments | Cash collateral pledged | Net amount | |||||||||||||||||||
|
Derivatives subject to netting arrangements:
|
|||||||||||||||||||||||
| Interest rate contracts | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
| Foreign exchange contracts |
|
|
|
|
|
|
|||||||||||||||||
| Equity and other contracts |
|
|
|
|
|
|
|||||||||||||||||
|
Total derivatives subject to netting arrangements
|
|
|
|
|
|
|
|||||||||||||||||
|
Total derivatives not subject to netting arrangements
|
|
— |
|
— | — |
|
|||||||||||||||||
| Total derivatives |
|
|
|
|
|
|
|||||||||||||||||
| Repurchase agreements |
|
|
(b) |
|
|
|
|
||||||||||||||||
| Securities lending |
|
— |
|
|
— |
|
|||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
| Repurchase agreements and securities lending transactions accounted for as secured borrowings | |||||||||||||||||||||||||||||||||||
| Sept. 30, 2023 | Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||
| Remaining contractual maturity | Total | Remaining contractual maturity | Total | ||||||||||||||||||||||||||||||||
| (in millions) | Overnight and continuous | Up to 30 days | 30-90 days | Over 90 days | Overnight and continuous | Up to 30 days | 30-90 days |
Over 90
days |
|||||||||||||||||||||||||||
| Repurchase agreements: | |||||||||||||||||||||||||||||||||||
| U.S. Treasury | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Agency RMBS |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Corporate bonds |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Sovereign debt/sovereign guaranteed |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| State and political subdivisions |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| U.S. government agencies |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Other debt securities |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Equity securities |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Securities lending: | |||||||||||||||||||||||||||||||||||
| Agency RMBS | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Other debt securities |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Equity securities |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Total | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
| Total secured borrowings | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
| Off-balance sheet credit risks | Sept. 30, 2023 | Dec. 31, 2022 | ||||||
| (in millions) | ||||||||
| Lending commitments | $ |
|
$ |
|
||||
|
Standby letters of credit (“SBLC”)
(a)
|
|
|
||||||
| Commercial letters of credit |
|
|
||||||
|
Securities lending
indemnifications
(b)(c)
|
|
|
||||||
| Standby letters of credit | Sept. 30, 2023 | Dec. 31, 2022 | ||||||
| Investment grade |
|
% |
|
% | ||||
| Non-investment grade |
|
% |
|
% | ||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Financial institutions
portfolio exposure
(in billions)
|
Sept. 30, 2023 | ||||||||||
|
Loans |
Unfunded
commitments |
Total exposure | |||||||||
| Securities industry | $ |
|
$ |
|
$ |
|
|||||
| Asset managers |
|
|
|
||||||||
| Banks |
|
|
|
||||||||
| Insurance |
|
|
|
||||||||
| Government |
|
|
|
||||||||
| Other |
|
|
|
||||||||
| Total | $ |
|
$ |
|
$ |
|
|||||
|
Commercial portfolio
exposure
(in billions)
|
Sept. 30, 2023 | ||||||||||
|
Loans |
Unfunded
commitments |
Total exposure | |||||||||
| Services and other | $ |
|
$ |
|
$ |
|
|||||
| Manufacturing |
|
|
|
||||||||
| Energy and utilities |
|
|
|
||||||||
| Media and telecom |
|
|
|
||||||||
| Total | $ |
|
$ |
|
$ |
|
|||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
For the quarter ended Sept. 30, 2023
|
Securities
Services |
Market and Wealth Services |
Investment
and Wealth Management |
Other | Consolidated | |||||||||||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||||||||||
| Total fee and other revenue | $ |
|
$ |
|
$ |
|
(a) | $ |
|
$ |
|
(a) | ||||||||||||||||||||
| Net interest revenue (expense) |
|
|
|
(
|
|
|||||||||||||||||||||||||||
| Total revenue |
|
|
|
(a) |
|
|
(a) | |||||||||||||||||||||||||
| Provision for credit losses |
|
|
(
|
(
|
|
|||||||||||||||||||||||||||
| Noninterest expense |
|
|
|
|
|
|||||||||||||||||||||||||||
| Income (loss) before income taxes | $ |
|
$ |
|
$ |
|
(a) | $ |
(
|
$ |
|
(a) | ||||||||||||||||||||
|
Pre-tax operating margin
(b)
|
|
% |
|
% |
|
% | N/M |
|
% | |||||||||||||||||||||||
| Average assets | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
For the quarter ended June 30, 2023
|
Securities
Services |
Market and Wealth Services |
Investment
and Wealth Management |
Other | Consolidated | |||||||||||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||||||||||
| Total fee and other revenue | $ |
|
$ |
|
$ |
|
(a) | $ |
(
|
$ |
|
(a) | ||||||||||||||||||||
| Net interest revenue (expense) |
|
|
|
(
|
|
|||||||||||||||||||||||||||
| Total revenue (loss) |
|
|
|
(a) |
(
|
|
(a) | |||||||||||||||||||||||||
| Provision for credit losses |
|
|
|
(
|
|
|||||||||||||||||||||||||||
| Noninterest expense |
|
|
|
|
|
|||||||||||||||||||||||||||
| Income (loss) before income taxes | $ |
|
$ |
|
$ |
|
(a) | $ |
(
|
$ |
|
(a) | ||||||||||||||||||||
|
Pre-tax operating margin
(b)
|
|
% |
|
% |
|
% | N/M |
|
% | |||||||||||||||||||||||
| Average assets | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||
|
For the quarter ended Sept. 30, 2022
|
Securities
Services |
Market and Wealth Services |
Investment
and Wealth Management |
Other | Consolidated | |||||||||||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||||||||||
| Total fee and other revenue | $ |
|
$ |
|
$ |
|
(a) | $ |
|
$ |
|
(a) | ||||||||||||||||||||
| Net interest revenue (expense) |
|
|
|
(
|
|
|||||||||||||||||||||||||||
| Total revenue (loss) |
|
|
|
(a) |
(
|
|
(a) | |||||||||||||||||||||||||
| Provision for credit losses |
(
|
(
|
|
(
|
(
|
|||||||||||||||||||||||||||
| Noninterest expense |
|
|
|
|
|
|||||||||||||||||||||||||||
| Income (loss) before income taxes | $ |
|
$ |
|
$ |
(
|
(a) | $ |
(
|
$ |
|
(a) | ||||||||||||||||||||
|
Pre-tax operating margin
(b)
|
|
% |
|
% |
(
|
% | N/M |
|
% | |||||||||||||||||||||||
| Average assets | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||
|
For the nine months ended Sept. 30, 2023
|
Securities
Services |
Market and Wealth Services |
Investment
and Wealth Management |
Other | Consolidated | |||||||||||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||||||||||
| Total fee and other revenue | $ |
|
$ |
|
$ |
|
(a) | $ |
|
$ |
|
(a) | ||||||||||||||||||||
| Net interest revenue (expense) |
|
|
|
(
|
|
|||||||||||||||||||||||||||
| Total revenue (loss) |
|
|
|
(a) |
(
|
|
(a) | |||||||||||||||||||||||||
| Provision for credit losses |
|
|
(
|
(
|
|
|||||||||||||||||||||||||||
| Noninterest expense |
|
|
|
|
|
|||||||||||||||||||||||||||
| Income (loss) before income taxes | $ |
|
$ |
|
$ |
|
(a) | $ |
(
|
$ |
|
(a) | ||||||||||||||||||||
|
Pre-tax operating margin
(b)
|
|
% |
|
% |
|
% | N/M |
|
% | |||||||||||||||||||||||
| Average assets | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||
|
Notes to Consolidated Financial Statements
(continued)
|
||
|
For the nine months ended Sept. 30, 2022
|
Securities
Services |
Market and Wealth Services |
Investment
and Wealth Management |
Other | Consolidated | |||||||||||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||||||||||
| Total fee and other revenue | $ |
|
$ |
|
$ |
|
(a) | $ |
|
$ |
|
(a) | ||||||||||||||||||||
| Net interest revenue (expense) |
|
|
|
(
|
|
|||||||||||||||||||||||||||
| Total revenue |
|
|
|
(a) |
|
|
(a) | |||||||||||||||||||||||||
| Provision for credit losses |
(
|
|
|
|
|
|||||||||||||||||||||||||||
| Noninterest expense |
|
|
|
|
|
|||||||||||||||||||||||||||
| Income (loss) before income taxes | $ |
|
$ |
|
$ |
(
|
(a) | $ |
(
|
$ |
|
(a) | ||||||||||||||||||||
|
Pre-tax operating margin
(b)
|
|
% |
|
% |
(
|
% | N/M |
|
% | |||||||||||||||||||||||
| Average assets | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||
| Non-cash investing and financing transactions | Nine months ended Sept. 30, | |||||||||||||||||||
| (in millions) | 2023 | 2022 | ||||||||||||||||||
| Transfers from loans to other assets for other real estate owned | $ |
|
$ |
|
||||||||||||||||
| Change in assets of consolidated investment management funds |
|
|
||||||||||||||||||
| Change in liabilities of consolidated investment management funds |
|
|
||||||||||||||||||
| Change in nonredeemable noncontrolling interests of consolidated investment management funds |
|
|
||||||||||||||||||
| Securities purchased not settled |
|
|
||||||||||||||||||
| Securities matured not settled |
|
|
||||||||||||||||||
| Available-for-sale securities transferred to held-to-maturity securities |
|
|
||||||||||||||||||
| Premises and equipment/operating lease obligations |
|
|
||||||||||||||||||
| Excise tax on share repurchases |
|
|
||||||||||||||||||
| Item 4. Controls and Procedures | ||
|
Forward-looking Statements
|
||
|
Forward-looking Statements
(continued)
|
||
|
Part II – Other Information
|
||
|
Share repurchases – third quarter of 2023
|
Total shares
repurchased as part of a publicly announced plan or program |
Maximum approximate dollar value of shares that may yet be purchased under the publicly announced plans or programs at Sept. 30, 2023
|
|||||||||||||||||||||||||||
| (dollars in millions, except per share amounts; common shares in thousands) |
Total shares
repurchased |
Average price
per share |
|||||||||||||||||||||||||||
| July 2023 | 1,909 | $ | 45.52 | 1,909 | $ | 3,209 | |||||||||||||||||||||||
| August 2023 | 4,238 | 44.73 | 4,238 | 3,019 | |||||||||||||||||||||||||
| September 2023 | 3,832 | 45.13 | 3,832 | 2,846 | |||||||||||||||||||||||||
|
Third quarter of 2023
(a)
|
9,979 | $ | 45.03 | 9,979 | $ | 2,846 | (b) | ||||||||||||||||||||||
|
Index to Exhibits
|
||
| Exhibit No. | Description | Method of Filing | ||||||||||||
| 3.1 | Restated Certificate of Incorporation of The Bank of New York Mellon Corporation. | |||||||||||||
| 3.2 | Certificate of Amendment to The Bank of New York Mellon Corporation’s Restated Certificate of Incorporation, as filed with the Secretary of State of the State of Delaware on April 9, 2019. | |||||||||||||
| 3.3 | Certificate of Designations of The Bank of New York Mellon Corporation with respect to the Series A Noncumulative Preferred Stock, dated June 15, 2007. | |||||||||||||
| 3.4 | Certificate of Designations of The Bank of New York Mellon Corporation with respect to the Series D Noncumulative Perpetual Preferred Stock, dated May 16, 2013. | |||||||||||||
| 3.5 | Certificate of Designations of The Bank of New York Mellon Corporation with respect to the Series F Noncumulative Perpetual Preferred Stock, dated July 29, 2016. | |||||||||||||
| 3.6 | Certificate of Designations of The Bank of New York Mellon Corporation with respect to the Series G Noncumulative Perpetual Preferred Stock, dated May 15, 2020. | |||||||||||||
| 3.7 | Certificate of Designations of The Bank of New York Mellon Corporation with respect to the Series H Noncumulative Perpetual Preferred Stock, dated Nov. 2, 2020. | |||||||||||||
| 3.8 | Certificate of Designations of The Bank of New York Mellon Corporation with respect to the Series I Noncumulative Perpetual Preferred Stock, dated Nov. 16, 2021. | |||||||||||||
| 3.9 | Amended and Restated By-Laws of The Bank of New York Mellon Corporation, as amended and restated on Aug. 8, 2023. | |||||||||||||
|
Index to Exhibits
(continued)
|
||
| Exhibit No. | Description | Method of Filing | ||||||||||||
| 4.1 |
None of the instruments defining the rights of holders of long-term debt of the Parent or any of its subsidiaries represented long-term debt in excess of 10% of the total assets of the Company as of
Sept. 30, 2023
. The Company hereby agrees to furnish to the Commission, upon request, a copy of any such instrument.
|
N/A | ||||||||||||
| 22.1 | Subsidiary Issuer of Guaranteed Securities. | |||||||||||||
| 31.1 | Certification of the Chief Executive Officer pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||||||||
| 31.2 | Certification of the Chief Financial Officer pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||||||||
| 32.1 | Certification of the Chief Executive Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||||||||
| 32.2 | Certification of the Chief Financial Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||||||||
| 101.INS | Inline XBRL Instance Document. | The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. | ||||||||||||
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. | Filed herewith. | ||||||||||||
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | Filed herewith. | ||||||||||||
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | Filed herewith. | ||||||||||||
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | Filed herewith. | ||||||||||||
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | Filed herewith. | ||||||||||||
| 104 |
The cover page of The Bank of New York Mellon Corporation’s Quarterly Report on Form 10-Q for the quarter ended
Sept. 30, 2023
, formatted in inline XBRL.
|
The cover page interactive data file is embedded within the inline XBRL document and included in Exhibit 101. | ||||||||||||
| THE BANK OF NEW YORK MELLON CORPORATION | |||||
| (Registrant) | |||||
| Date: November 3, 2023 | By: | /s/ Kurtis R. Kurimsky | |||||||||
| Kurtis R. Kurimsky | |||||||||||
| Corporate Controller | |||||||||||
| (Duly Authorized Officer and | |||||||||||
| Principal Accounting Officer of | |||||||||||
| the Registrant) | |||||||||||
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
| FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
|---|
| DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
|---|
No information found
Customers
| Customer name | Ticker |
|---|---|
| Mr. Cooper Group Inc. | COOP |
Suppliers
Price
Yield
| Owner | Position | Direct Shares | Indirect Shares |
|---|