Bank of New York Mellon Corp

Highlights of third quarter 2024 results

Net income applicable to common shareholders was $1.11 billion, or $1.50 per diluted common share, in the third quarter of 2024, including the impact of notable items. Notable items in the third quarter of 2024 include severance expense, litigation reserves and a reduction in the FDIC special assessment. Excluding notable items, net income applicable to common shareholders was $1.13 billion (Non-GAAP), or $1.52 (Non-GAAP) per diluted common share, in the third quarter of 2024. Net income applicable to common shareholders was $958 million, or $1.23 per diluted common share, in the third quarter of 2023, including the impact of notable items. Notable items in the third quarter of 2023 include severance expense, litigation reserves and a disposal gain. Excluding notable items, net income applicable to common shareholders was $994 million (Non-GAAP), or $1.27 (Non-GAAP) per diluted common share, in the third quarter of 2023.

The highlights below are based on the third quarter of 2024 compared with the third quarter of 2023, unless otherwise noted.

•Total revenue increased 5%, primarily reflecting:

•Fee revenue increased 5%, primarily reflecting higher market values, net new business and higher foreign exchange revenue. (See “Fee and other revenue” beginning on page 6.)

•Investment and other revenue increased primarily reflecting a strategic equity investment loss recorded in the third quarter of 2023 and improved results from our seed capital investments. (See “Fee and other revenue” beginning on page 6.)

•Net interest income increased 3%, primarily reflecting improved investment securities portfolio yields and balance sheet growth, partially offset by changes in deposit mix.

(See “Net interest income” on page 9.)

•Provision for credit losses was $23 million, primarily driven by increases in the allowance related to commercial real estate exposure.

•Noninterest expense was flat, reflecting higher investments and employee merit increases, offset by efficiency savings and a reduction in the FDIC

special assessment. Excluding notable items, noninterest expense increased 1% (Non-GAAP). (See “Noninterest expense” on page 12.)

•Effective tax rate of 22.0%. (See “Income taxes” on page 12.)

•Return on common equity (“ROE”) was 12.0% for the third quarter of 2024.

•Return on tangible common equity (“ROTCE”) was 22.8% (Non-GAAP) for the third quarter of 2024. Excluding notable items, the adjusted ROTCE was 23.2% (Non-GAAP) for the third quarter of 2024.

See “Supplemental information – Explanation of GAAP and Non-GAAP financial measures” beginning on page 43 for a reconciliation of these Non-GAAP measures.

Metrics

•AUC/A of $52.1 trillion increased 14%, primarily reflecting higher market values, client inflows and net new business.

•AUM of $2.1 trillion increased 18%, primarily reflecting higher market values and the favorable impact of a weaker U.S. dollar.

Capital and liquidity

•Our CET1 ratio was 11.9% at Sept. 30, 2024 and 11.4% at June 30, 2024 under the Standardized Approach. The increase reflects capital generated through earnings and improvements in accumulated other comprehensive income, partially offset by capital returned through common stock repurchases and dividends, and higher risk-weighted assets. (See “Capital” beginning on page 35.)

•Tier 1 leverage was 6.0% at Sept. 30, 2024 and 5.8% at June 30, 2024. The increase reflects the increase in capital, partially offset by higher average assets. (See “Capital” beginning on page 35.)

•Returned $1.1 billion to common shareholders, including $725 million of common share repurchases.

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