Bank of New York Mellon Corp
For the period ended Sep 30, 2024. Filed Nov 1, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 1, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Net interest income
| Net interest income · YTD24 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 3Q24 vs. · vs. | |||||||||||
| (dollars in millions) · 3Q24 · 2Q24 · 3Q23 · 2Q24 · 3Q23 · YTD24 · YTD23 · YTD23 | |||||||||||
| Net interest income | $1,048 | $1,030 | $1,016 | 2% | 3% | $3,118 | $3,244 | (4)% | |||
| Add: Tax equivalent adjustment | — | 1 | — | N/M | N/M | 1 | 1 | N/M | |||
| Net interest income (FTE) – Non-GAAP (a) | $1,048 | $1,031 | $1,016 | 2% | 3% | $3,119 | $3,245 | (4)% | |||
| Average interest-earning assets | $356,934 | $353,633 | $339,044 | 1% | 5% | $352,250 | $349,789 | 1% | |||
| Net interest margin | 1.16% | 1.15% | 1.18% | 1 | bps | (2) | bps | 1.16% | 1.23% | (7) | bps |
| Net interest margin (FTE) – Non-GAAP (a) | 1.16% | 1.15% | 1.18% | 1 | bps | (2) | bps | 1.16% | 1.23% | (7) | bps |
(a) Net interest income (FTE) – Non-GAAP and net interest margin (FTE) – Non-GAAP include the tax equivalent adjustments on tax-exempt income, which allows for comparisons of amounts arising from both taxable and tax-exempt sources and is consistent with industry practice. The adjustment to an FTE basis has no impact on net income.
bps – basis points.
Net interest income increased 3% compared with the third quarter of 2023 and 2% compared with the second quarter of 2024. The increase compared with the third quarter of 2023 primarily reflects improved investment securities portfolio yields and balance sheet growth, partially offset by changes in deposit mix. The increase compared with the second quarter of 2024 primarily reflects higher sponsored member cleared repo activity.
Net interest margin decreased 2 basis points compared with the third quarter of 2023 and increased 1 basis point compared with the second quarter of 2024. The changes compared with the third quarter of 2023 and the second quarter of 2024 primarily reflect the factors mentioned above.
Average interest-earning assets increased 5% compared with the third quarter of 2023 and 1% compared with the second quarter of 2024. The increase compared with the third quarter of 2023 primarily reflects higher securities and loan balances and federal funds sold and securities purchased under resale agreements, partially offset by lower interest-bearing deposits with banks. The increase compared with the second quarter of 2024 primarily reflects higher securities balances and federal funds sold and securities purchased under resale agreements, partially offset by lower interest-bearing deposits with the Federal Reserve and other central banks.
Average non-U.S. dollar deposits comprised approximately 25% of our average total deposits in the third quarter of 2024. Approximately 50% of the average non-U.S. dollar deposits in the third quarter of 2024 were euro-denominated.
Net interest income decreased 4% compared with the first nine months of 2023, primarily driven by changes in balance sheet mix, partially offset by higher interest rates. The decrease in the net interest margin primarily reflects the factors mentioned above.
Average interest-earning assets increased 1% compared with the first nine months of 2023, primarily reflecting higher loan balances and federal funds sold and securities purchased under resale agreements, partially offset by lower interest-bearing deposits with banks.
BNY 9
| Average balances and interest rates | Quarter ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sept. 30, 2024 · June 30, 2024 · Sept. 30, 2023 | ||||||||||||||
| (dollars in millions; average rates are annualized) · Averagebalance · Interest · Averagerates · Averagebalance · Interest · Averagerates · Average balance · Interest · Average rates | ||||||||||||||
| Assets | ||||||||||||||
| Interest-earning assets: | ||||||||||||||
| Interest-bearing deposits with the Federal Reserve and other central banks | $100,611 | $1,188 | 4.62% | $102,257 | $1,201 | 4.65% | $98,767 | $1,153 | 4.57% | |||||
| Interest-bearing deposits with banks | 10,559 | 109 | 4.15 | 11,210 | 110 | 3.91 | 12,287 | 125 | 4.04 | |||||
| Federal funds sold and securities purchased under resale agreements (a) | 31,183 | 2,874 | 36.65 | 29,013 | 2,631 | 36.48 | 26,915 | 2,066 | 30.47 | |||||
| Loans | 69,205 | 1,142 | 6.57 | 68,283 | 1,119 | 6.58 | 63,962 | 1,029 | 6.39 | |||||
| Securities: | ||||||||||||||
| U.S. government obligations | 28,490 | 266 | 3.71 | 28,347 | 269 | 3.82 | 32,224 | 250 | 3.08 | |||||
| U.S. government agency obligations | 62,572 | 511 | 3.26 | 62,549 | 515 | 3.29 | 59,481 | 426 | 2.87 | |||||
| Other securities | 48,647 | 487 | 4.00 | 46,828 | 472 | 4.04 | 39,874 | 394 | 3.93 | |||||
| Total investment securities | 139,709 | 1,264 | 3.61 | 137,724 | 1,256 | 3.66 | 131,579 | 1,070 | 3.24 | |||||
| Trading securities (b) | 5,667 | 75 | 5.33 | 5,146 | 76 | 5.89 | 5,534 | 76 | 5.49 | |||||
| Total securities (b) | 145,376 | 1,339 | 3.68 | 142,870 | 1,332 | 3.74 | 137,113 | 1,146 | 3.33 | |||||
| Total interest-earning assets (b) | $356,934 | $6,652 | 7.40% | $353,633 | $6,393 | 7.24% | $339,044 | $5,519 | 6.45% | |||||
| Noninterest-earning assets | 59,463 | 58,866 | 58,247 | |||||||||||
| Total assets | $416,397 | $412,499 | $397,291 | |||||||||||
| Liabilities and equity | ||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||
| Interest-bearing deposits | $236,724 | $2,271 | 3.82% | $235,878 | $2,255 | 3.85% | $209,641 | $1,911 | 3.62% | |||||
| Federal funds purchased and securities sold under repurchase agreements (a) | 16,584 | 2,620 | 62.85 | 17,711 | 2,433 | 55.26 | 21,512 | 1,956 | 36.07 | |||||
| Trading liabilities | 1,844 | 22 | 4.83 | 1,689 | 23 | 5.43 | 3,959 | 48 | 4.80 | |||||
| Other borrowed funds | 418 | 3 | 3.15 | 351 | 8 | 8.61 | 540 | 6 | 4.47 | |||||
| Commercial paper | 1,474 | 21 | 5.50 | 954 | 13 | 5.54 | 7 | — | 4.13 | |||||
| Payables to customers and broker-dealers | 12,737 | 170 | 5.29 | 12,066 | 161 | 5.35 | 13,515 | 147 | 4.30 | |||||
| Long-term debt | 33,154 | 497 | 5.93 | 31,506 | 469 | 5.92 | 31,161 | 435 | 5.52 | |||||
| Total interest-bearing liabilities | $302,935 | $5,604 | 7.36% | $300,155 | $5,362 | 7.18% | $280,335 | $4,503 | 6.37% | |||||
| Total noninterest-bearing deposits | 47,962 | 48,965 | 52,467 | |||||||||||
| Other noninterest-bearing liabilities | 24,122 | 22,839 | 23,699 | |||||||||||
| Total liabilities | 375,019 | 371,959 | 356,501 | |||||||||||
| Total The Bank of New York Mellon Corporation shareholders’ equity | 41,115 | 40,387 | 40,711 | |||||||||||
| Noncontrolling interests | 263 | 153 | 79 | |||||||||||
| Total liabilities and equity | $416,397 | $412,499 | $397,291 | |||||||||||
| Net interest income (FTE) – Non-GAAP (b)(c) | $1,048 | $1,031 | $1,016 | |||||||||||
| Net interest margin (FTE) – Non-GAAP (b)(c) | 1.16% | 1.15% | 1.18% | |||||||||||
| Less: Tax equivalent adjustment | — | 1 | — | |||||||||||
| Net interest income – GAAP | $1,048 | $1,030 | $1,016 | |||||||||||
| Net interest margin – GAAP | 1.16% | 1.15% | 1.18% | |||||||||||
(a) Includes the average impact of offsetting under enforceable netting agreements of approximately $179 billion for the third quarter of 2024, $163 billion for the second quarter of 2024 and $126 billion for the third quarter of 2023. On a Non-GAAP basis, excluding the impact of offsetting, the yield on federal funds sold and securities purchased under resale agreements would have been 5.43% for the third quarter of 2024, 5.51% for the second quarter of 2024 and 5.36% for the third quarter of 2023. On a Non-GAAP basis, excluding the impact of offsetting, the rate on federal funds purchased and securities sold under repurchase agreements would have been 5.32% for the third quarter of 2024, 5.41% for the second quarter of 2024 and 5.26% for the third quarter of 2023. We believe providing rates excluding the impact of netting is useful to investors as it is more reflective of the actual rates earned and paid.
(b) Average rates were calculated on an FTE basis, at tax rates of approximately 21%.
(c) See “Net interest income” on page 9 for the reconciliation of this Non-GAAP measure.
10 BNY
| Average balances and interest rates | Year-to-date | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Sept. 30, 2024 · Sept. 30, 2023 | |||||||||
| (dollars in millions; average rates are 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 | $101,883 | $3,608 | 4.65% | $102,762 | $3,247 | 4.17% | |||
| Interest-bearing deposits with banks | 11,162 | 340 | 4.07 | 14,129 | 393 | 3.72 | |||
| Federal funds sold and securities purchased under resale agreements (a) | 29,079 | 7,938 | 36.46 | 26,187 | 4,833 | 24.68 | |||
| Loans | 67,782 | 3,322 | 6.54 | 63,563 | 2,852 | 6.00 | |||
| Securities: | |||||||||
| U.S. government obligations | 28,028 | 785 | 3.74 | 35,050 | 776 | 2.95 | |||
| U.S. government agency obligations | 62,751 | 1,534 | 3.26 | 61,098 | 1,259 | 2.75 | |||
| Other securities | 46,343 | 1,394 | 4.02 | 41,096 | 1,099 | 3.57 | |||
| Total investment securities | 137,122 | 3,713 | 3.61 | 137,244 | 3,134 | 3.05 | |||
| Trading securities (b) | 5,222 | 220 | 5.64 | 5,904 | 227 | 5.15 | |||
| Total securities (b) | 142,344 | 3,933 | 3.69 | 143,148 | 3,361 | 3.13 | |||
| Total interest-earning assets (b) | $352,250 | $19,141 | 7.23% | $349,789 | $14,686 | 5.59% | |||
| Noninterest-earning assets | 58,730 | 58,684 | |||||||
| Total assets | $410,980 | $408,473 | |||||||
| Liabilities and equity | |||||||||
| Interest-bearing liabilities: | |||||||||
| Interest-bearing deposits | $233,843 | $6,713 | 3.83% | $209,624 | $5,016 | 3.20% | |||
| Federal funds purchased and securities sold under repurchase agreements (a) | 16,809 | 7,296 | 57.98 | 22,048 | 4,577 | 27.75 | |||
| Trading liabilities | 1,728 | 66 | 5.11 | 3,629 | 121 | 4.47 | |||
| Other borrowed funds | 424 | 15 | 4.78 | 1,317 | 41 | 4.08 | |||
| Commercial paper | 815 | 34 | 5.51 | 4 | — | 4.55 | |||
| Payables to customers and broker-dealers | 12,409 | 477 | 5.13 | 15,077 | 418 | 3.70 | |||
| Long-term debt | 31,919 | 1,421 | 5.89 | 31,129 | 1,268 | 5.39 | |||
| Total interest-bearing liabilities | $297,947 | $16,022 | 7.18% | $282,828 | $11,441 | 5.40% | |||
| Total noninterest-bearing deposits | 48,955 | 61,438 | |||||||
| Other noninterest-bearing liabilities | 23,325 | 23,637 | |||||||
| Total liabilities | 370,227 | 367,903 | |||||||
| Total The Bank of New York Mellon Corporation shareholders’ equity | 40,585 | 40,510 | |||||||
| Noncontrolling interests | 168 | 60 | |||||||
| Total liabilities and equity | $410,980 | $408,473 | |||||||
| Net interest income (FTE) – Non-GAAP (b)(c) | $3,119 | $3,245 | |||||||
| Net interest margin (FTE) – Non-GAAP (b)(c) | 1.16% | 1.23% | |||||||
| Less: Tax equivalent adjustment | 1 | 1 | |||||||
| Net interest income – GAAP | $3,118 | $3,244 | |||||||
| Net interest margin – GAAP | 1.16% | 1.23% | |||||||
(a) Includes the average impact of offsetting under enforceable netting agreements of approximately $165 billion for the first nine months of 2024 and $101 billion for the first nine months of 2023. On a Non-GAAP basis, excluding the impact of offsetting, the yield on federal funds sold and securities purchased under resale agreements would have been 5.47% for the first nine months of 2024 and 5.10% for the first nine months of 2023. On a Non-GAAP basis, excluding the impact of offsetting, the rate on federal funds purchased and securities sold under repurchase agreements would have been 5.37% for the first nine months of 2024 and 4.99% for the first nine months of 2023. We believe providing rates excluding the impact of netting is useful to investors as it is more reflective of the actual rates earned and paid.
(b) Average rates were calculated on an FTE basis, at tax rates of approximately 21%.
(c) See “Net interest income” on page 9 for the reconciliation of this Non-GAAP measure.
BNY 11
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.