Delaware | 13-2614959 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class
|
Trading
symbol(s) |
Name of each exchange
on which registered |
||||||
Common Stock, $0.01 par value | BK | New York Stock Exchange | ||||||
6.244% Fixed-to-Floating Rate Normal Preferred Capital Securities of Mellon Capital IV
|
BK/P | New York Stock Exchange | ||||||
(fully and unconditionally guaranteed by The Bank of New York Mellon Corporation)
|
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||||||
Emerging growth company | ☐ |
Page | |||||
Consolidated Financial Highlights (unaudited)
|
|||||
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:
|
|||||
General
|
|||||
Overview
|
|||||
Net interest revenue
|
|||||
Noninterest expense
|
|||||
Income taxes
|
|||||
Review of businesses
|
|||||
Critical accounting estimates
|
|||||
Consolidated balance sheet review
|
|||||
Liquidity and dividends
|
|||||
Capital
|
|||||
Trading activities and risk management
|
|||||
Asset/liability management
|
|||||
Supplemental information – Explanation of GAAP and Non-GAAP financial measures
|
|||||
Website information
|
|||||
Item 1. Financial Statements: | |||||
Consolidated Income Statement (unaudited)
|
|||||
Consolidated Comprehensive Income Statement (unaudited)
|
|||||
Consolidated Balance Sheet (unaudited)
|
|||||
Consolidated Statement of Cash Flows (unaudited)
|
|||||
Consolidated Statement of Changes in Equity (unaudited)
|
Page | |||||
Notes to Consolidated Financial Statements: | |||||
Item 4. Controls and Procedures
|
|||||
Forward-looking Statements
|
|||||
Part II – Other Information | |||||
Item 1. Legal Proceedings.
|
|||||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
|
|||||
Item 6. Exhibits.
|
|||||
Index to Exhibits | |||||
Signature |
Quarter ended | ||||||||||||||||||||
(dollars in millions, except per share amounts and unless
otherwise noted) |
March 31, 2021 | Dec. 31, 2020 | March 31, 2020 | |||||||||||||||||
Results applicable to common shareholders of The Bank of New York Mellon Corporation:
|
||||||||||||||||||||
Net income | $ | 858 | $ | 702 | $ | 944 | ||||||||||||||
Basic earnings per share | $ | 0.97 | $ | 0.79 | $ | 1.05 | ||||||||||||||
Diluted earnings per share | $ | 0.97 | $ | 0.79 | $ | 1.05 | ||||||||||||||
Fee and other revenue (a)
|
$ | 3,266 | $ | 3,163 | $ | 3,294 | ||||||||||||||
Net interest revenue | 655 | 680 | 814 | |||||||||||||||||
Total revenue | $ | 3,921 | $ | 3,843 | $ | 4,108 | ||||||||||||||
Return on common equity (annualized)
|
8.5 | % | 6.9 | % | 10.1 | % | ||||||||||||||
Return on tangible common equity (annualized) – Non-GAAP (b)
|
16.1 | % | 13.0 | % | 20.4 | % | ||||||||||||||
Return on average assets (annualized)
|
0.76 | % | 0.64 | % | 0.99 | % | ||||||||||||||
Fee revenue as a percentage of total revenue (a)
|
83 | % | 81 | % | 79 | % | ||||||||||||||
Non-U.S. revenue as a percentage of total revenue | 37 | % | 38 | % | 36 | % | ||||||||||||||
Pre-tax operating margin | 29 | % | 24 | % | 30 | % | ||||||||||||||
Net interest margin | 0.66 | % | 0.72 | % | 1.01 | % | ||||||||||||||
Net interest margin on a fully taxable equivalent (“FTE”) basis – Non-GAAP (c)
|
0.67 | % | 0.72 | % | 1.01 | % | ||||||||||||||
Assets under custody and/or administration (“AUC/A”) at period end (in trillions) (d)
|
$ | 41.7 | $ | 41.1 | $ | 35.2 | ||||||||||||||
Assets under management (“AUM”) at period end (in billions) (e)
|
$ | 2,214 | $ | 2,211 | $ | 1,796 | ||||||||||||||
Market value of securities on loan at period end (in billions) (f)
|
$ | 445 | $ | 435 | $ | 389 | ||||||||||||||
Average common shares and equivalents outstanding (in thousands):
|
||||||||||||||||||||
Basic | 882,558 | 889,928 | 894,122 | |||||||||||||||||
Diluted | 885,655 | 891,846 | 896,689 | |||||||||||||||||
Selected average balances: | ||||||||||||||||||||
Interest-earning assets | $ | 397,297 | $ | 378,674 | $ | 323,936 | ||||||||||||||
Total assets | $ | 460,379 | $ | 437,488 | $ | 385,278 | ||||||||||||||
Interest-bearing deposits | $ | 245,115 | $ | 231,318 | $ | 197,632 | ||||||||||||||
Noninterest-bearing deposits | $ | 83,429 | $ | 75,840 | $ | 60,577 | ||||||||||||||
Long-term debt | $ | 26,199 | $ | 25,704 | $ | 27,231 | ||||||||||||||
Preferred stock | $ | 4,541 | $ | 4,827 | $ | 3,542 | ||||||||||||||
Total The Bank of New York Mellon Corporation common shareholders’ equity
|
$ | 40,720 | $ | 40,712 | $ | 37,664 | ||||||||||||||
Other information at period end: | ||||||||||||||||||||
Cash dividends per common share | $ | 0.31 | $ | 0.31 | $ | 0.31 | ||||||||||||||
Common dividend payout ratio | 32 | % | 39 | % | 30 | % | ||||||||||||||
Common dividend yield (annualized)
|
2.7 | % | 2.9 | % | 3.7 | % | ||||||||||||||
Closing stock price per common share | $ | 47.29 | $ | 42.44 | $ | 33.68 | ||||||||||||||
Market capitalization | $ | 41,401 | $ | 37,634 | $ | 29,822 | ||||||||||||||
Book value per common share | $ | 46.16 | $ | 46.53 | $ | 42.47 | ||||||||||||||
Tangible book value per common share – Non-GAAP (b)
|
$ | 24.88 | $ | 25.44 | $ | 21.53 | ||||||||||||||
Full-time employees | 48,000 | 48,500 | 47,900 | |||||||||||||||||
Common shares outstanding (in thousands)
|
875,481 | 886,764 | 885,443 |
Regulatory capital and other ratios | March 31, 2021 | Dec. 31, 2020 | |||||||||
Average liquidity coverage ratio (“LCR”) | 110 | % | 110 | % | |||||||
Regulatory capital ratios: (g)
|
|||||||||||
Advanced: | |||||||||||
Common Equity Tier 1 (“CET1”) ratio | 12.6 | % | 13.1 | % | |||||||
Tier 1 capital ratio | 15.3 | 15.8 | |||||||||
Total capital ratio | 16.1 | 16.7 | |||||||||
Standardized: | |||||||||||
CET1 ratio | 12.6 | % | 13.4 | % | |||||||
Tier 1 capital ratio | 15.2 | 16.1 | |||||||||
Total capital ratio | 16.2 | 17.1 | |||||||||
Tier 1 leverage ratio | 5.8 | % | 6.3 | % | |||||||
Supplementary leverage ratio (“SLR”) (h)
|
8.1 | 8.6 | |||||||||
BNY Mellon shareholders’ equity to total assets ratio | 9.7 | % | 9.8 | % | |||||||
BNY Mellon common shareholders’ equity to total assets ratio | 8.7 | 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 |
Fee and other revenue | |||||||||||||||||||||||||||||||||||
1Q21 vs. | |||||||||||||||||||||||||||||||||||
(dollars in millions, unless otherwise noted) | 1Q21 | 4Q20 | 1Q20 | 4Q20 | 1Q20 | ||||||||||||||||||||||||||||||
Investment services fees: | |||||||||||||||||||||||||||||||||||
Asset servicing fees (a)
|
$ | 1,199 | $ | 1,138 | $ | 1,159 | 5 | % | 3 | % | |||||||||||||||||||||||||
Clearing services fees (b)
|
455 | 418 | 470 | 9 | (3) | ||||||||||||||||||||||||||||||
Issuer services fees | 245 | 257 | 263 | (5) | (7) | ||||||||||||||||||||||||||||||
Treasury services fees | 157 | 156 | 149 | 1 | 5 | ||||||||||||||||||||||||||||||
Total investment services fees | 2,056 | 1,969 | 2,041 | 4 | 1 | ||||||||||||||||||||||||||||||
Investment management and performance fees | 890 | 884 | 862 | 1 | 3 | ||||||||||||||||||||||||||||||
Foreign exchange revenue (c)
|
231 | 187 | 245 | 24 | (6) | ||||||||||||||||||||||||||||||
Financing-related fees | 51 | 46 | 59 | 11 | (14) | ||||||||||||||||||||||||||||||
Distribution and servicing | 29 | 28 | 31 | 4 | (6) | ||||||||||||||||||||||||||||||
Total fee revenue (c)
|
3,257 | 3,114 | 3,238 | 5 | 1 | ||||||||||||||||||||||||||||||
Investment and other income (c)
|
9 | 43 | 47 | N/M | N/M | ||||||||||||||||||||||||||||||
Net securities gains | — | 6 | 9 | N/M | N/M | ||||||||||||||||||||||||||||||
Total other revenue | 9 | 49 | 56 | N/M | N/M | ||||||||||||||||||||||||||||||
Total fee and other revenue (c)
|
$ | 3,266 | $ | 3,163 | $ | 3,294 | 3 | % | (1) | % | |||||||||||||||||||||||||
Fee revenue as a percentage of total revenue (c)
|
83 | % | 81 | % | 79 | % | |||||||||||||||||||||||||||||
AUC/A at period end (in trillions) (d)
|
$ | 41.7 | $ | 41.1 | $ | 35.2 | 1 | % | 18 | % | |||||||||||||||||||||||||
AUM at period end (in billions) (e)
|
$ | 2,214 | $ | 2,211 | $ | 1,796 | — | % | 23 | % |
Money market fee waivers | ||||||||||||||
(in millions) | 1Q21 | 4Q20 | 1Q20 | |||||||||||
Investment services fees: | ||||||||||||||
Asset servicing fees | $ | (22) | $ | (13) | $ | — | ||||||||
Clearing services fees | (74) | (64) | (9) | |||||||||||
Issuer services fees | (10) | (6) | — | |||||||||||
Treasury services fees | (3) | (2) | — | |||||||||||
Total investment services fees | (109) | (85) | (9) | |||||||||||
Investment management and performance fees | (89) | (56) | (14) | |||||||||||
Distribution and servicing revenue | (13) | (8) | — | |||||||||||
Total fee revenue | (211) | (149) | (23) | |||||||||||
Less: Distribution and servicing expense | 23 | 15 | — | |||||||||||
Net impact of money market fee waivers | $ | (188) | $ | (134) | $ | (23) | ||||||||
Impact to revenue by line of business (a):
|
||||||||||||||
Asset Servicing | $ | (29) | $ | (13) | $ | — | ||||||||
Pershing | (94) | (85) | (9) | |||||||||||
Issuer Services | (15) | (10) | — | |||||||||||
Treasury Services | (9) | (5) | — | |||||||||||
Investment Management | (61) | (34) | (14) | |||||||||||
Wealth Management | (3) | (2) | — | |||||||||||
Total impact to revenue by line of business | $ | (211) | $ | (149) | $ | (23) |
Investment and other income (a)
|
||||||||||||||||||||
(in millions) | 1Q21 | 4Q20 | 1Q20 | |||||||||||||||||
Income (loss) from consolidated investment management funds | $ | 17 | $ | 41 | $ | (38) | ||||||||||||||
Seed capital gains (losses) (b)
|
3 | 22 | (31) | |||||||||||||||||
Other trading (loss) revenue | (7) | (31) | 66 | |||||||||||||||||
Renewable energy investment (losses) | (81) | (27) | (34) | |||||||||||||||||
Corporate/bank-owned life insurance | 33 | 43 | 36 | |||||||||||||||||
Other investments gains (losses) (c)
|
11 | 18 | (7) | |||||||||||||||||
Disposal (losses) | — | (61) | — | |||||||||||||||||
Expense reimbursements from joint venture | 23 | 22 | 21 | |||||||||||||||||
Other income | 10 | 16 | 34 | |||||||||||||||||
Total investment and other income | $ | 9 | $ | 43 | $ | 47 |
Net interest revenue | |||||||||||||||||||||||||||||||||||
1Q21 vs. | |||||||||||||||||||||||||||||||||||
(dollars in millions) | 1Q21 | 4Q20 | 1Q20 | 4Q20 | 1Q20 | ||||||||||||||||||||||||||||||
Net interest revenue – GAAP
|
$ | 655 | $ | 680 | $ | 814 | (4) | % | (20) | % | |||||||||||||||||||||||||
Add: Tax equivalent adjustment | 3 | 3 | 2 | N/M | N/M | ||||||||||||||||||||||||||||||
Net interest revenue (FTE) – Non-GAAP (a)
|
$ | 658 | $ | 683 | $ | 816 | (4) | % | (19) | % | |||||||||||||||||||||||||
Average interest-earning assets
|
$ | 397,297 | $ | 378,674 | $ | 323,936 | 5 | % | 23 | % |
Net interest margin – GAAP | 0.66 | % | 0.72 | % | 1.01 | % | (6) | bps | (35) | bps | |||||||||||||||||||||||||
Net interest margin (FTE) – Non-GAAP (a)
|
0.67 | % | 0.72 | % | 1.01 | % | (5) | bps | (34) | bps |
Average balances and interest rates | Quarter ended | |||||||||||||||||||||||||||||||||||||||||||
March 31, 2021 | Dec. 31, 2020 | March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||
(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
|
$ | 125,930 | $ | (16) | (0.05) | % | $ | 112,274 | $ | (13) | (0.04) | % | $ | 80,403 | $ | 80 | 0.39 | % | ||||||||||||||||||||||||||
Interest-bearing deposits with banks (primarily foreign banks)
|
21,313 | 14 | 0.27 | 19,281 | 16 | 0.32 | 17,081 | 58 | 1.37 | |||||||||||||||||||||||||||||||||||
Federal funds sold and securities purchased under resale agreements (a)
|
29,186 | 32 | 0.44 | 28,389 | 40 | 0.55 | 34,109 | 396 | 4.67 | |||||||||||||||||||||||||||||||||||
Margin loans | 15,891 | 45 | 1.14 | 14,097 | 43 | 1.23 | 12,984 | 87 | 2.69 | |||||||||||||||||||||||||||||||||||
Non-margin loans: | ||||||||||||||||||||||||||||||||||||||||||||
Domestic offices | 31,218 | 157 | 2.02 | 30,855 | 161 | 2.08 | 31,720 | 238 | 3.02 | |||||||||||||||||||||||||||||||||||
Foreign offices | 9,680 | 28 | 1.18 | 9,776 | 32 | 1.31 | 11,170 | 71 | 2.55 | |||||||||||||||||||||||||||||||||||
Total non-margin loans | 40,898 | 185 | 1.82 | 40,631 | 193 | 1.90 | 42,890 | 309 | 2.89 | |||||||||||||||||||||||||||||||||||
Securities: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. government obligations | 28,759 | 101 | 1.43 | 27,783 | 102 | 1.46 | 23,175 | 108 | 1.87 | |||||||||||||||||||||||||||||||||||
U.S. government agency obligations | 77,623 | 291 | 1.50 | 79,712 | 311 | 1.56 | 69,046 | 400 | 2.32 | |||||||||||||||||||||||||||||||||||
State and political subdivisions (b)
|
2,526 | 12 | 1.92 | 2,104 | 12 | 2.01 | 1,033 | 8 | 3.06 | |||||||||||||||||||||||||||||||||||
Other securities (b)
|
47,030 | 58 | 0.50 | 46,280 | 56 | 0.48 | 36,375 | 86 | 0.95 | |||||||||||||||||||||||||||||||||||
Total investment securities (b)
|
155,938 | 462 | 1.19 | 155,879 | 481 | 1.23 | 129,629 | 602 | 1.86 | |||||||||||||||||||||||||||||||||||
Trading securities (b)
|
8,141 | 19 | 0.95 | 8,123 | 19 | 0.95 | 6,840 | 40 | 2.36 | |||||||||||||||||||||||||||||||||||
Total securities (b)
|
164,079 | 481 | 1.18 | 164,002 | 500 | 1.22 | 136,469 | 642 | 1.88 | |||||||||||||||||||||||||||||||||||
Total interest-earning assets (c)
|
$ | 397,297 | $ | 741 | 0.75 | % | $ | 378,674 | $ | 779 | 0.82 | % | $ | 323,936 | $ | 1,572 | 1.95 | % | ||||||||||||||||||||||||||
Noninterest-earning assets | 63,082 | 58,814 | 61,342 | |||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 460,379 | $ | 437,488 | $ | 385,278 | ||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||||||||||||||
Domestic offices | $ | 128,543 | $ | (7) | (0.02) | % | $ | 119,012 | $ | (5) | (0.02) | % | $ | 99,915 | $ | 170 | 0.69 | % | ||||||||||||||||||||||||||
Foreign offices | 116,572 | (30) | (0.10) | 112,306 | (28) | (0.10) | 97,717 | 70 | 0.29 | |||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 245,115 | (37) | (0.06) | 231,318 | (33) | (0.06) | 197,632 | 240 | 0.49 | |||||||||||||||||||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements (a)
|
15,288 | (3) | (0.07) | 14,452 | 1 | 0.01 | 13,919 | 275 | 7.96 | |||||||||||||||||||||||||||||||||||
Trading liabilities | 2,227 | 3 | 0.53 | 2,408 | 4 | 0.72 | 1,626 | 7 | 1.61 | |||||||||||||||||||||||||||||||||||
Other borrowed funds | 331 | 2 | 2.01 | 338 | 2 | 1.71 | 719 | 4 | 2.27 | |||||||||||||||||||||||||||||||||||
Commercial paper | — | — | — | 275 | — | 0.10 | 1,581 | 6 | 1.56 | |||||||||||||||||||||||||||||||||||
Payables to customers and broker-dealers | 17,691 | (1) | (0.01) | 17,521 | (1) | (0.01) | 16,386 | 30 | 0.73 | |||||||||||||||||||||||||||||||||||
Long-term debt | 26,199 | 119 | 1.81 | 25,704 | 123 | 1.88 | 27,231 | 194 | 2.83 | |||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 306,851 | $ | 83 | 0.11 | % | $ | 292,016 | $ | 96 | 0.13 | % | $ | 259,094 | $ | 756 | 1.17 | % | ||||||||||||||||||||||||||
Total noninterest-bearing deposits | 83,429 | 75,840 | 60,577 | |||||||||||||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 24,556 | 23,783 | 24,229 | |||||||||||||||||||||||||||||||||||||||||
Total liabilities | 414,836 | 391,639 | 343,900 | |||||||||||||||||||||||||||||||||||||||||
Temporary equity | ||||||||||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests | 85 | 74 | 66 | |||||||||||||||||||||||||||||||||||||||||
Permanent equity | ||||||||||||||||||||||||||||||||||||||||||||
Total The Bank of New York Mellon Corporation shareholders’ equity
|
45,261 | 45,539 | 41,206 | |||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests | 197 | 236 | 106 | |||||||||||||||||||||||||||||||||||||||||
Total permanent equity | 45,458 | 45,775 | 41,312 | |||||||||||||||||||||||||||||||||||||||||
Total liabilities, temporary equity and permanent equity
|
$ | 460,379 | $ | 437,488 | $ | 385,278 | ||||||||||||||||||||||||||||||||||||||
Net interest revenue (FTE) – Non-GAAP (c)
|
$ | 658 | $ | 683 | $ | 816 | ||||||||||||||||||||||||||||||||||||||
Net interest margin (FTE) – Non-GAAP (b)(c)
|
0.67 | % | 0.72 | % | 1.01 | % | ||||||||||||||||||||||||||||||||||||||
Less: Tax equivalent adjustment (b)
|
3 | 3 | 2 | |||||||||||||||||||||||||||||||||||||||||
Net interest revenue – GAAP | $ | 655 | $ | 680 | $ | 814 | ||||||||||||||||||||||||||||||||||||||
Net interest margin – GAAP | 0.66 | % | 0.72 | % | 1.01 | % |
Noninterest expense | |||||||||||||||||||||||||||||||||||
1Q21 vs. | |||||||||||||||||||||||||||||||||||
(dollars in millions) | 1Q21 | 4Q20 | 1Q20 | 4Q20 | 1Q20 | ||||||||||||||||||||||||||||||
Staff | $ | 1,602 | $ | 1,554 | $ | 1,482 | 3 | % | 8 | % | |||||||||||||||||||||||||
Software and equipment | 362 | 359 | 326 | 1 | 11 | ||||||||||||||||||||||||||||||
Professional, legal and other purchased services | 343 | 381 | 330 | (10) | 4 | ||||||||||||||||||||||||||||||
Sub-custodian and clearing | 124 | 116 | 105 | 7 | 18 | ||||||||||||||||||||||||||||||
Net occupancy | 123 | 173 | 135 | (29) | (9) | ||||||||||||||||||||||||||||||
Distribution and servicing | 74 | 75 | 91 | (1) | (19) | ||||||||||||||||||||||||||||||
Bank assessment charges | 34 | 24 | 35 | 42 | (3) | ||||||||||||||||||||||||||||||
Amortization of intangible assets | 24 | 26 | 26 | (8) | (8) | ||||||||||||||||||||||||||||||
Business development | 19 | 26 | 42 | (27) | (55) | ||||||||||||||||||||||||||||||
Other | 146 | 191 | 140 | (24) | 4 | ||||||||||||||||||||||||||||||
Total noninterest expense | $ | 2,851 | $ | 2,925 | $ | 2,712 | (3) | % | 5 | % | |||||||||||||||||||||||||
Full-time employees at period end | 48,000 | 48,500 | 47,900 | (1) | % | — | % |
(dollars in millions) | 1Q21 vs. | ||||||||||||||||||||||||||||||||||||||||
1Q21 | 4Q20 | 3Q20 | 2Q20 | 1Q20 | 4Q20 | 1Q20 | |||||||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||||||||
Investment services fees: | |||||||||||||||||||||||||||||||||||||||||
Asset servicing fees (a)
|
$ | 1,191 | $ | 1,130 | $ | 1,156 | $ | 1,164 | $ | 1,147 | 5 | % | 4 | % | |||||||||||||||||||||||||||
Clearing services fees (b)
|
455 | 418 | 397 | 431 | 470 | 9 | (3) | ||||||||||||||||||||||||||||||||||
Issuer services fees | 245 | 257 | 295 | 277 | 263 | (5) | (7) | ||||||||||||||||||||||||||||||||||
Treasury services fees | 157 | 156 | 152 | 144 | 149 | 1 | 5 | ||||||||||||||||||||||||||||||||||
Total investment services fees | 2,048 | 1,961 | 2,000 | 2,016 | 2,029 | 4 | 1 | ||||||||||||||||||||||||||||||||||
Foreign exchange revenue (c)
|
193 | 163 | 126 | 164 | 228 | 18 | (15) | ||||||||||||||||||||||||||||||||||
Other (c)(d)
|
104 | 111 | 120 | 159 | 179 | (6) | (42) | ||||||||||||||||||||||||||||||||||
Total fee and other revenue | 2,345 | 2,235 | 2,246 | 2,339 | 2,436 | 5 | (4) | ||||||||||||||||||||||||||||||||||
Net interest revenue | 645 | 670 | 681 | 768 | 806 | (4) | (20) | ||||||||||||||||||||||||||||||||||
Total revenue | 2,990 | 2,905 | 2,927 | 3,107 | 3,242 | 3 | (8) | ||||||||||||||||||||||||||||||||||
Provision for credit losses | (79) | 31 | (10) | 145 | 149 | N/M | N/M | ||||||||||||||||||||||||||||||||||
Noninterest expense (excluding amortization of
intangible assets)
|
2,084 | 2,157 | 2,002 | 1,971 | 1,969 | (3) | 6 | ||||||||||||||||||||||||||||||||||
Amortization of intangible assets | 17 | 17 | 18 | 18 | 18 | — | (6) | ||||||||||||||||||||||||||||||||||
Total noninterest expense | 2,101 | 2,174 | 2,020 | 1,989 | 1,987 | (3) | 6 | ||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 968 | $ | 700 | $ | 917 | $ | 973 | $ | 1,106 | 38 | % | (12) | % | |||||||||||||||||||||||||||
Pre-tax operating margin | 32 | % | 24 | % | 31 | % | 31 | % | 34 | % | |||||||||||||||||||||||||||||||
Securities lending revenue | $ | 41 | $ | 36 | $ | 37 | $ | 51 | $ | 46 | 14 | % | (11) | % | |||||||||||||||||||||||||||
Total revenue by line of business:
|
|||||||||||||||||||||||||||||||||||||||||
Asset Servicing | $ | 1,424 | $ | 1,357 | $ | 1,354 | $ | 1,463 | $ | 1,531 | 5 | % | (7) | % | |||||||||||||||||||||||||||
Pershing | 605 | 563 | 538 | 578 | 653 | 7 | (7) | ||||||||||||||||||||||||||||||||||
Issuer Services | 363 | 385 | 435 | 431 | 419 | (6) | (13) | ||||||||||||||||||||||||||||||||||
Treasury Services | 317 | 325 | 323 | 340 | 339 | (2) | (6) | ||||||||||||||||||||||||||||||||||
Clearance and Collateral Management | 281 | 275 | 277 | 295 | 300 | 2 | (6) | ||||||||||||||||||||||||||||||||||
Total revenue by line of business | $ | 2,990 | $ | 2,905 | $ | 2,927 | $ | 3,107 | $ | 3,242 | 3 | % | (8) | % | |||||||||||||||||||||||||||
Average balances: | |||||||||||||||||||||||||||||||||||||||||
Average loans | $ | 43,468 | $ | 41,437 | $ | 40,308 | $ | 43,113 | $ | 41,789 | 5 | % | 4 | % | |||||||||||||||||||||||||||
Average deposits | $ | 315,088 | $ | 292,631 | $ | 263,621 | $ | 268,467 | $ | 242,187 | 8 | % | 30 | % | |||||||||||||||||||||||||||
Investment Services business metrics | 1Q21 vs. | ||||||||||||||||||||||||||||||||||||||||
(dollars in millions, unless otherwise noted) | 1Q21 | 4Q20 | 3Q20 | 2Q20 | 1Q20 | 4Q20 | 1Q20 | ||||||||||||||||||||||||||||||||||
AUC/A at period end (in trillions) (a)
|
$ | 41.7 | $ | 41.1 | $ | 38.6 | $ | 37.3 | $ | 35.2 | 1 | % | 18 | % | |||||||||||||||||||||||||||
Market value of securities on loan at period end (in billions) (b)
|
$ | 445 | $ | 435 | $ | 378 | $ | 384 | $ | 389 | 2 | % | 14 | % | |||||||||||||||||||||||||||
Pershing:
|
|||||||||||||||||||||||||||||||||||||||||
Net new assets (U.S. platform) (in billions) (c)
|
$ | 28 | $ | 28 | $ | 12 | $ | 11 | $ | 31 | N/M | N/M | |||||||||||||||||||||||||||||
Average active clearing accounts (U.S. platform) (in thousands)
|
6,757 | 6,635 | 6,556 | 6,507 | 6,437 | 2 | % | 5 | % | ||||||||||||||||||||||||||||||||
Average long-term mutual fund assets (U.S. platform) | $ | 678,556 | $ | 630,086 | $ | 597,312 | $ | 547,579 | $ | 549,206 | 8 | % | 24 | % | |||||||||||||||||||||||||||
Average investor margin loans (U.S. platform) | $ | 10,937 | $ | 10,097 | $ | 9,350 | $ | 9,235 | $ | 9,419 | 8 | % | 16 | % | |||||||||||||||||||||||||||
Clearance and Collateral Management:
|
|||||||||||||||||||||||||||||||||||||||||
Average tri-party collateral management balances (in billions)
|
$ | 3,638 | $ | 3,555 | $ | 3,417 | $ | 3,573 | $ | 3,724 | 2 | % | (2) | % |
1Q21 vs. | |||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 1Q21 | 4Q20 | 3Q20 | 2Q20 | 1Q20 | 4Q20 | 1Q20 | ||||||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||||||||
Investment management fees (a)
|
$ | 850 | $ | 839 | $ | 828 | $ | 782 | $ | 812 | 1 | % | 5 | % | |||||||||||||||||||||||||||
Performance fees | 40 | 45 | 7 | 5 | 50 | N/M | (20) | ||||||||||||||||||||||||||||||||||
Investment management and performance fees (b)
|
890 | 884 | 835 | 787 | 862 | 1 | 3 | ||||||||||||||||||||||||||||||||||
Distribution and servicing | 28 | 29 | 31 | 34 | 43 | (3) | (35) | ||||||||||||||||||||||||||||||||||
Other (a)
|
25 | 27 | 5 | 17 | (59) | N/M | N/M | ||||||||||||||||||||||||||||||||||
Total fee and other revenue (a)
|
943 | 940 | 871 | 838 | 846 | — | 11 | ||||||||||||||||||||||||||||||||||
Net interest revenue | 48 | 50 | 47 | 48 | 52 | (4) | (8) | ||||||||||||||||||||||||||||||||||
Total revenue | 991 | 990 | 918 | 886 | 898 | — | 10 | ||||||||||||||||||||||||||||||||||
Provision for credit losses | 4 | (8) | 12 | 7 | 9 | N/M | N/M | ||||||||||||||||||||||||||||||||||
Noninterest expense (excluding amortization of intangible assets) | 702 | 678 | 653 | 650 | 687 | 4 | 2 | ||||||||||||||||||||||||||||||||||
Amortization of intangible assets | 7 | 9 | 8 | 8 | 8 | (22) | (13) | ||||||||||||||||||||||||||||||||||
Total noninterest expense | 709 | 687 | 661 | 658 | 695 | 3 | 2 | ||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 278 | $ | 311 | $ | 245 | $ | 221 | $ | 194 | (11) | % | 43 | % | |||||||||||||||||||||||||||
Pre-tax operating margin | 28 | % | 32 | % | 27 | % | 25 | % | 22 | % | |||||||||||||||||||||||||||||||
Adjusted pre-tax operating margin – Non-GAAP (c)
|
30 | % | 34 | % | 29 | % | 28 | % | 24 | % | |||||||||||||||||||||||||||||||
Total revenue by line of business:
|
|||||||||||||||||||||||||||||||||||||||||
Investment Management | $ | 698 | $ | 714 | $ | 641 | $ | 621 | $ | 620 | (2) | % | 13 | % | |||||||||||||||||||||||||||
Wealth Management | 293 | 276 | 277 | 265 | 278 | 6 | 5 | ||||||||||||||||||||||||||||||||||
Total revenue by line of business | $ | 991 | $ | 990 | $ | 918 | $ | 886 | $ | 898 | — | % | 10 | % | |||||||||||||||||||||||||||
Average balances:
|
|||||||||||||||||||||||||||||||||||||||||
Average loans | $ | 11,610 | $ | 11,497 | $ | 11,503 | $ | 11,791 | $ | 12,124 | 1 | % | (4) | % | |||||||||||||||||||||||||||
Average deposits | $ | 19,177 | $ | 18,144 | $ | 17,570 | $ | 17,491 | $ | 16,144 | 6 | % | 19 | % |
AUM trends | 1Q21 vs. | ||||||||||||||||||||||||||||||||||
(dollars in billions) | 1Q21 | 4Q20 | 3Q20 | 2Q20 | 1Q20 | 4Q20 | 1Q20 | ||||||||||||||||||||||||||||
AUM at period end, by product type: (a)
|
|||||||||||||||||||||||||||||||||||
Equity | $ | 173 | $ | 170 | $ | 149 | $ | 141 | $ | 120 | 2 | % | 44 | % | |||||||||||||||||||||
Fixed income | 261 | 259 | 241 | 224 | 211 | 1 | 24 | ||||||||||||||||||||||||||||
Index | 419 | 393 | 350 | 333 | 274 | 7 | 53 | ||||||||||||||||||||||||||||
Liability-driven investments | 802 | 855 | 788 | 752 | 705 | (6) | 14 | ||||||||||||||||||||||||||||
Multi-asset and alternative investments | 214 | 209 | 193 | 185 | 171 | 2 | 25 | ||||||||||||||||||||||||||||
Cash | 345 | 325 | 320 | 326 | 315 | 6 | 10 | ||||||||||||||||||||||||||||
Total AUM by product type | $ | 2,214 | $ | 2,211 | $ | 2,041 | $ | 1,961 | $ | 1,796 | — | % | 23 | % | |||||||||||||||||||||
Changes in AUM: (a)
|
|||||||||||||||||||||||||||||||||||
Beginning balance of AUM | $ | 2,211 | $ | 2,041 | $ | 1,961 | $ | 1,796 | $ | 1,910 | |||||||||||||||||||||||||
Net inflows (outflows): | |||||||||||||||||||||||||||||||||||
Long-term strategies: | |||||||||||||||||||||||||||||||||||
Equity | — | (2) | (4) | (2) | (2) | ||||||||||||||||||||||||||||||
Fixed income | 8 | 5 | 1 | 4 | — | ||||||||||||||||||||||||||||||
Liability-driven investments | 8 | 15 | 14 | (2) | (5) | ||||||||||||||||||||||||||||||
Multi-asset and alternative investments | (2) | — | (3) | — | (1) | ||||||||||||||||||||||||||||||
Total long-term active strategies inflows (outflows) | 14 | 18 | 8 | — | (8) | ||||||||||||||||||||||||||||||
Index | 3 | (3) | (3) | 9 | 3 | ||||||||||||||||||||||||||||||
Total long-term strategies inflows (outflows) | 17 | 15 | 5 | 9 | (5) | ||||||||||||||||||||||||||||||
Short-term strategies: | |||||||||||||||||||||||||||||||||||
Cash | 19 | 5 | (10) | 11 | 43 | ||||||||||||||||||||||||||||||
Total net inflows (outflows) | 36 | 20 | (5) | 20 | 38 | ||||||||||||||||||||||||||||||
Net market impact | (36) | 93 | 41 | 143 | (91) | ||||||||||||||||||||||||||||||
Net currency impact | 3 | 57 | 44 | 2 | (61) | ||||||||||||||||||||||||||||||
Ending balance of AUM | $ | 2,214 | $ | 2,211 | $ | 2,041 | $ | 1,961 | $ | 1,796 | — | % | 23 | % | |||||||||||||||||||||
Wealth Management client assets (b)
|
$ | 292 | $ | 286 | $ | 265 | $ | 254 | $ | 236 | 2 | % | 24 | % |
(in millions) | 1Q21 | 4Q20 | 3Q20 | 2Q20 | 1Q20 | ||||||||||||||||||||||||
Fee revenue (a)
|
$ | 9 | $ | 11 | $ | 7 | $ | 10 | $ | 6 | |||||||||||||||||||
Other revenue (a)
|
(36) | (28) | 13 | 28 | 24 | ||||||||||||||||||||||||
Total fee and other revenue | (27) | (17) | 20 | 38 | 30 | ||||||||||||||||||||||||
Net interest (expense) | (38) | (40) | (25) | (36) | (44) | ||||||||||||||||||||||||
Total revenue | (65) | (57) | (5) | 2 | (14) | ||||||||||||||||||||||||
Provision for credit losses | (8) | (8) | 7 | (9) | 11 | ||||||||||||||||||||||||
Noninterest expense
|
41 | 64 | — | 39 | 30 | ||||||||||||||||||||||||
(Loss) before income taxes | $ | (98) | $ | (113) | $ | (12) | $ | (28) | $ | (55) | |||||||||||||||||||
Average loans and leases | $ | 1,711 | $ | 1,794 | $ | 1,805 | $ | 1,815 | $ | 1,961 |
Critical accounting estimates
|
Reference | ||||
Allowance for credit losses | 2020 Annual Report, pages 24-26, and “Allowance for credit losses.” | ||||
Fair value of financial instruments and derivatives | 2020 Annual Report, pages 26-28. | ||||
Goodwill and other intangibles | 2020 Annual Report, pages 28-29. | ||||
Litigation and regulatory contingencies | “Legal proceedings” in Note 17 of the Notes to Consolidated Financial Statements. |
Country risk exposure at March 31, 2021
|
Interest-bearing deposits | Total exposure | |||||||||||||||||||||||||||||||||
(in billions) | Central banks | Banks |
Lending (a)
|
Securities (b)
|
Other (c)
|
||||||||||||||||||||||||||||||
Top 10 country exposure: | |||||||||||||||||||||||||||||||||||
United Kingdom (“UK”) | $ | 17.6 | $ | 0.4 | $ | 1.3 | $ | 3.5 | $ | 2.8 | $ | 25.6 | |||||||||||||||||||||||
Germany | 17.6 | 0.7 | 0.7 | 4.3 | 0.5 | 23.8 | |||||||||||||||||||||||||||||
Japan | 18.4 | 1.0 | — | 0.6 | 0.1 | 20.1 | |||||||||||||||||||||||||||||
Belgium | 8.6 | 0.9 | 0.1 | 0.2 | — | 9.8 | |||||||||||||||||||||||||||||
Canada | — | 3.9 | 0.1 | 3.7 | 0.9 | 8.6 | |||||||||||||||||||||||||||||
Netherlands | 4.3 | 0.1 | 0.2 | 1.9 | 0.1 | 6.6 | |||||||||||||||||||||||||||||
Luxembourg | 2.4 | 0.1 | 0.2 | 0.1 | 2.3 | 5.1 | |||||||||||||||||||||||||||||
China | — | 2.5 | 1.7 | — | 0.1 | 4.3 | |||||||||||||||||||||||||||||
Ireland | 1.7 | 0.3 | 0.3 | 0.2 | 1.8 | 4.3 | |||||||||||||||||||||||||||||
Australia | — | 2.5 | 0.3 | 0.9 | 0.3 | 4.0 | |||||||||||||||||||||||||||||
Total Top 10 country exposure | $ | 70.6 | $ | 12.4 | $ | 4.9 | $ | 15.4 | $ | 8.9 | $ | 112.2 | (d) | ||||||||||||||||||||||
Select country exposure: | |||||||||||||||||||||||||||||||||||
Italy | $ | 0.1 | $ | 0.3 | $ | — | $ | 1.8 | $ | — | $ | 2.2 | |||||||||||||||||||||||
Brazil | — | — | 1.0 | 0.1 | 0.1 | 1.2 | |||||||||||||||||||||||||||||
Total select country exposure | $ | 0.1 | $ | 0.3 | $ | 1.0 | $ | 1.9 | $ | 0.1 | $ | 3.4 |
Securities portfolio |
Dec. 31, 2020
|
1Q21
change in
unrealized
gain (loss)
|
March 31, 2021 |
Fair value as a % of amortized
cost (a)
|
Unrealized
gain (loss) |
% Floating
rate (b)
|
Ratings (c)
|
||||||||||||||||||||||||||||||||||||||||||||||
BBB+/
BBB- |
BB+
and lower |
A1+/A2 & SP-1 | |||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) |
Fair
value |
Amortized
cost (a)
|
Fair
value |
AAA/
AA- |
A+/
A- |
Not
rated |
|||||||||||||||||||||||||||||||||||||||||||||||
Agency RMBS | $ | 61,740 | $ | (742) | $ | 58,107 | $ | 58,831 | 101 | % | $ | 724 | 14 | % | 100 | % | — | % | — | % | — | % | — | % | — | % | |||||||||||||||||||||||||||
U.S. Treasury | 26,958 | (280) | 30,412 | 30,595 | 101 | 183 | 55 | 100 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Sovereign debt/sovereign guaranteed (d)
|
13,452 | (83) | 14,454 | 14,571 | 101 | 117 | 16 | 73 | 5 | 21 | 1 | — | — | ||||||||||||||||||||||||||||||||||||||||
Agency commercial mortgage-backed securities (“MBS”) | 11,685 | (175) | 11,484 | 11,730 | 102 | 246 | 33 | 100 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Supranational | 7,208 | (31) | 7,469 | 7,505 | 100 | 36 | 56 | 100 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Foreign covered bonds (e)
|
6,725 | (16) | 6,491 | 6,542 | 101 | 51 | 34 | 100 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
U.S. government agencies | 6,577 | (110) | 5,498 | 5,469 | 99 | (29) | 25 | 100 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Collateralized loan obligations (“CLOs”) | 4,703 | 6 | 4,751 | 4,754 | 100 | 3 | 100 | 99 | — | — | — | — | 1 | ||||||||||||||||||||||||||||||||||||||||
Non-agency commercial MBS | 2,992 | (87) | 2,907 | 2,948 | 101 | 41 | 24 | 99 | 1 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Foreign government agencies (f)
|
4,132 | (27) | 2,678 | 2,697 | 101 | 19 | 14 | 92 | 8 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | 2,324 | (55) | 2,665 | 2,649 | 99 | (16) | — | 74 | 8 | 1 | — | 17 | — | ||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities (“ABS”) | 3,164 | (18) | 2,617 | 2,628 | 100 | 11 | 19 | 100 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Non-agency RMBS (g)
|
2,387 | (7) | 2,365 | 2,509 | 106 | 144 | 53 | 71 | 4 | 1 | 13 | — | 11 | ||||||||||||||||||||||||||||||||||||||||
Corporate bonds | 1,994 | (100) | 2,289 | 2,238 | 98 | (51) | — | 15 | 68 | 17 | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Commercial paper/certificates of deposit (“CDs”) | 249 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Other | 1 | — | 1 | 1 | 100 | — | — | — | — | — | — | — | 100 | ||||||||||||||||||||||||||||||||||||||||
Total securities | $ | 156,291 | (h) | $ | (1,725) | $ | 154,188 | $ | 155,667 | (h) | 101 | % | $ | 1,479 | (h)(i) | 30 | % | 95 | % | 2 | % | 3 | % | — | % | — | % | — | % |
Net premium amortization and discount accretion of securities (a)
|
||||||||||||||||||||||||||
(dollars in millions) | 1Q21 | 4Q20 | 3Q20 | 2Q20 | 1Q20 | |||||||||||||||||||||
Amortizable purchase premium (net of discount) relating to securities:
|
||||||||||||||||||||||||||
Balance at period-end | $ | 2,195 | $ | 2,283 | $ | 2,050 | $ | 1,693 | $ | 1,555 | ||||||||||||||||
Estimated average life remaining at period-end (in years)
|
4.3 | 3.9 | 3.8 | 3.7 | 3.8 | |||||||||||||||||||||
Amortization | $ | 189 | $ | 181 | $ | 161 | $ | 125 | $ | 101 | ||||||||||||||||
Accretable discount related to the prior restructuring of the securities portfolio:
|
||||||||||||||||||||||||||
Balance at period-end | $ | 121 | $ | 130 | $ | 133 | $ | 145 | $ | 159 | ||||||||||||||||
Estimated average life remaining at period-end (in years)
|
5.9 | 5.6 | 5.7 | 5.8 | 6.1 | |||||||||||||||||||||
Accretion | $ | 12 | $ | 8 | $ | 9 | $ | 10 | $ | 11 |
Total exposure – consolidated | March 31, 2021 | Dec. 31, 2020 | |||||||||||||||||||||
(in billions) | Loans |
Unfunded
commitments |
Total
exposure |
Loans |
Unfunded
commitments |
Total
exposure |
|||||||||||||||||
Non-margin loans: | |||||||||||||||||||||||
Financial institutions | $ | 11.0 | $ | 32.8 | $ | 43.8 | $ | 11.2 | $ | 32.8 | $ | 44.0 | |||||||||||
Commercial | 1.4 | 12.3 | 13.7 | 1.4 | 12.7 | 14.1 | |||||||||||||||||
Subtotal institutional | 12.4 | 45.1 | 57.5 | 12.6 | 45.5 | 58.1 | |||||||||||||||||
Wealth management loans and mortgages | 16.6 | 1.4 | 18.0 | 16.4 | 1.1 | 17.5 | |||||||||||||||||
Commercial real estate | 5.9 | 3.5 | 9.4 | 6.1 | 3.2 | 9.3 | |||||||||||||||||
Lease financings | 1.0 | — | 1.0 | 1.0 | — | 1.0 | |||||||||||||||||
Other residential mortgages | 0.4 | — | 0.4 | 0.4 | — | 0.4 | |||||||||||||||||
Overdrafts | 4.8 | — | 4.8 | 2.7 | — | 2.7 | |||||||||||||||||
Other | 1.7 | — | 1.7 | 1.9 | — | 1.9 | |||||||||||||||||
Subtotal non-margin loans | 42.8 | 50.0 | 92.8 | 41.1 | 49.8 | 90.9 | |||||||||||||||||
Margin loans | 17.9 | 0.1 | 18.0 | 15.4 | 0.1 | 15.5 | |||||||||||||||||
Total | $ | 60.7 | $ | 50.1 | $ | 110.8 | $ | 56.5 | $ | 49.9 | $ | 106.4 |
Financial institutions
portfolio exposure
(dollars in billions)
|
March 31, 2021 | Dec. 31, 2020 | |||||||||||||||||||||||||||
Loans |
Unfunded
commitments |
Total
exposure |
% Inv.
grade |
% due
<1 yr. |
Loans |
Unfunded
commitments |
Total
exposure |
||||||||||||||||||||||
Securities industry | $ | 2.3 | $ | 21.3 | $ | 23.6 | 98 | % | 99 | % | $ | 2.3 | $ | 21.6 | $ | 23.9 | |||||||||||||
Asset managers | 1.4 | 6.5 | 7.9 | 98 | 85 | 1.4 | 6.4 | 7.8 | |||||||||||||||||||||
Banks | 6.4 | 1.1 | 7.5 | 85 | 96 | 6.7 | 1.1 | 7.8 | |||||||||||||||||||||
Insurance | 0.1 | 3.0 | 3.1 | 100 | 19 | 0.1 | 2.8 | 2.9 | |||||||||||||||||||||
Government | 0.1 | 0.2 | 0.3 | 100 | 44 | 0.1 | 0.2 | 0.3 | |||||||||||||||||||||
Other | 0.7 | 0.7 | 1.4 | 96 | 65 | 0.6 | 0.7 | 1.3 | |||||||||||||||||||||
Total | $ | 11.0 | $ | 32.8 | $ | 43.8 | 96 | % | 89 | % | $ | 11.2 | $ | 32.8 | $ | 44.0 |
Commercial portfolio exposure | March 31, 2021 | Dec. 31, 2020 | |||||||||||||||||||||||||||
(dollars in billions) | Loans |
Unfunded
commitments |
Total
exposure |
% Inv.
grade |
% due
<1 yr. |
Loans |
Unfunded
commitments |
Total
exposure |
|||||||||||||||||||||
Manufacturing | $ | 0.4 | $ | 4.0 | $ | 4.4 | 95 | % | 22 | % | $ | 0.5 | $ | 4.1 | $ | 4.6 | |||||||||||||
Energy and utilities | 0.3 | 4.0 | 4.3 | 88 | 5 | 0.3 | 3.9 | 4.2 | |||||||||||||||||||||
Services and other | 0.7 | 3.5 | 4.2 | 94 | 40 | 0.6 | 3.8 | 4.4 | |||||||||||||||||||||
Media and telecom | — | 0.8 | 0.8 | 92 | 4 | — | 0.9 | 0.9 | |||||||||||||||||||||
Total | $ | 1.4 | $ | 12.3 | $ | 13.7 | 92 | % | 21 | % | $ | 1.4 | $ | 12.7 | $ | 14.1 |
Composition of commercial real estate portfolio by asset class
|
March 31, 2021 | Dec. 31, 2020 | |||||||||||||||
Total
exposure |
Percentage
secured (a)
|
Total
exposure |
Percentage
secured (a)
|
||||||||||||||
(in billions)
|
|||||||||||||||||
Residential | $ | 3.2 | 86 | % | $ | 3.3 | 86 | % | |||||||||
Office | 2.7 | 76 | 2.8 | 75 | |||||||||||||
Retail | 0.9 | 58 | 1.0 | 52 | |||||||||||||
Mixed-use | 0.7 | 22 | 0.7 | 22 | |||||||||||||
Hotels | 0.6 | 20 | 0.6 | 20 | |||||||||||||
Healthcare | 0.5 | 22 | 0.4 | 25 | |||||||||||||
Other | 0.8 | 14 | 0.5 | 23 | |||||||||||||
Total commercial real estate | $ | 9.4 | 63 | % | $ | 9.3 | 64 | % |
Allowance for credit losses activity | March 31, 2021 | Dec. 31, 2020 | March 31, 2020 | ||||||||||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||||||||
Beginning balance of allowance for credit losses | $ | 501 | $ | 486 | $ | 216 | |||||||||||||||||||||||||||||
Impact of adopting ASU 2016-13 | N/A | N/A | (55) | (a) | |||||||||||||||||||||||||||||||
Provision for credit losses | (83) | 15 | 169 | ||||||||||||||||||||||||||||||||
Net recoveries (charge-offs): | |||||||||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||
Other residential mortgages | 2 | — | — | ||||||||||||||||||||||||||||||||
Wealth management loans and mortgages | (1) | — | — | ||||||||||||||||||||||||||||||||
Other financial instruments
|
— | — | (1) | ||||||||||||||||||||||||||||||||
Net recoveries (charge-offs)
|
1 | — | (1) | ||||||||||||||||||||||||||||||||
Ending balance of allowance for credit losses | $ | 419 | $ | 501 | $ | 329 | |||||||||||||||||||||||||||||
Allowance for loan losses | $ | 327 | $ | 358 | $ | 140 | |||||||||||||||||||||||||||||
Allowance for lending-related commitments
|
73 | 121 | 148 | ||||||||||||||||||||||||||||||||
Allowance for financial instruments (b)
|
19 | 22 | 41 | ||||||||||||||||||||||||||||||||
Total allowance for credit losses
|
$ | 419 | $ | 501 | $ | 329 | |||||||||||||||||||||||||||||
Non-margin loans | $ | 42,839 | $ | 41,053 | $ | 49,253 | |||||||||||||||||||||||||||||
Margin loans | 17,893 | 15,416 | 13,115 | ||||||||||||||||||||||||||||||||
Total loans | $ | 60,732 | $ | 56,469 | $ | 62,368 | |||||||||||||||||||||||||||||
Allowance for loan losses as a percentage of total loans
|
0.54 | % | 0.63 | % | 0.22 | % | |||||||||||||||||||||||||||||
Allowance for loan losses as a percentage of non-margin loans
|
0.76 | 0.87 | 0.28 | ||||||||||||||||||||||||||||||||
Allowance for loan losses and lending-related commitments as a percentage of total loans
|
0.66 | 0.85 | 0.46 | ||||||||||||||||||||||||||||||||
Allowance for loan losses and lending-related commitments as a percentage of non-margin loans
|
0.93 | 1.17 | 0.58 |
Allocation of allowance for loan losses and lending-related commitments | March 31, 2021 | Dec. 31, 2020 | March 31, 2020 | |||||||||||
Commercial real estate | 91 | % | 89 | % | 72 | % | ||||||||
Commercial | 2 | 3 | 9 | |||||||||||
Financial institutions | 2 | 2 | 6 | |||||||||||
Other residential mortgages | 2 | 3 | 5 | |||||||||||
Wealth management (a)
|
2 | 2 | 3 | |||||||||||
Lease financings | 1 | 1 | 5 | |||||||||||
Total | 100 | % | 100 | % | 100 | % |
Nonperforming assets | March 31, 2021 | Dec. 31, 2020 | |||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
Nonperforming loans: | |||||||||||||||||||||||
Other residential mortgages | $ | 56 | $ | 57 | |||||||||||||||||||
Wealth management loans and mortgages | 28 | 30 | |||||||||||||||||||||
Commercial real estate | 26 | 1 | |||||||||||||||||||||
Total nonperforming loans | 110 | 88 | |||||||||||||||||||||
Other assets owned | 2 | 1 | |||||||||||||||||||||
Total nonperforming assets | $ | 112 | $ | 89 | |||||||||||||||||||
Nonperforming assets ratio | 0.18 | % | 0.16 | % | |||||||||||||||||||
Nonperforming assets ratio, excluding margin loans | 0.26 | 0.22 | |||||||||||||||||||||
Allowance for loan losses/nonperforming loans | 297.3 | 406.8 | |||||||||||||||||||||
Allowance for loan losses/nonperforming assets | 292.0 | 402.2 | |||||||||||||||||||||
Total allowance for credit losses/nonperforming loans | 363.6 | 544.3 | |||||||||||||||||||||
Total allowance for credit losses/nonperforming assets | 357.1 | 538.2 |
Quarter ended | ||||||||||||||||||||
(dollars in millions) | March 31, 2021 | Dec. 31, 2020 | March 31, 2020 | |||||||||||||||||
Maximum month-end balance during the quarter
|
$ | 15,863 | $ | 15,479 | $ | 16,644 | ||||||||||||||
Average daily balance (a)
|
$ | 15,288 | $ | 14,452 | $ | 13,919 | ||||||||||||||
Weighted-average rate during the quarter (a)
|
(0.07) | % | 0.01 | % | 7.96 | % | ||||||||||||||
Ending balance (b)
|
$ | 15,150 | $ | 11,305 | $ | 13,128 | ||||||||||||||
Weighted-average rate at period end (b)
|
(0.12) | % | (0.03) | % | 3.93 | % |
Payables to customers and broker-dealers | ||||||||||||||||||||
Quarter ended | ||||||||||||||||||||
(dollars in millions) | March 31, 2021 | Dec. 31, 2020 | March 31, 2020 | |||||||||||||||||
Maximum month-end balance during the quarter
|
$ | 25,124 | $ | 25,085 | $ | 24,016 | ||||||||||||||
Average daily balance (a)
|
$ | 24,772 | $ | 23,589 | $ | 20,629 | ||||||||||||||
Weighted-average rate during the quarter (a)
|
(0.01) | % | (0.01) | % | 0.73 | % | ||||||||||||||
Ending balance | $ | 23,827 | $ | 25,085 | $ | 24,016 | ||||||||||||||
Weighted-average rate at period end
|
(0.01) | % | (0.01) | % | 0.28 | % |
Commercial paper | Quarter ended | |||||||||||||||||||
(dollars in millions) | March 31, 2021 | Dec. 31, 2020 | March 31, 2020 | |||||||||||||||||
Maximum month-end balance during the quarter
|
$ | — | $ | 450 | $ | 3,379 | ||||||||||||||
Average daily balance | $ | — | $ | 275 | $ | 1,581 | ||||||||||||||
Weighted-average rate during the quarter
|
— | % | 0.10 | % | 1.56 | % | ||||||||||||||
Ending balance | $ | — | $ | — | $ | 1,121 | ||||||||||||||
Weighted-average rate at period end
|
— | % | — | % | 1.57 | % |
Other borrowed funds | Quarter ended | |||||||||||||||||||
(dollars in millions) | March 31, 2021 | Dec. 31, 2020 | March 31, 2020 | |||||||||||||||||
Maximum month-end balance during the quarter
|
$ | 348 | $ | 505 | $ | 1,544 | ||||||||||||||
Average daily balance | $ | 331 | $ | 338 | $ | 719 | ||||||||||||||
Weighted-average rate during the quarter
|
2.01 | % | 1.71 | % | 2.27 | % | ||||||||||||||
Ending balance | $ | 348 | $ | 350 | $ | 1,544 | ||||||||||||||
Weighted-average rate at period end
|
2.05 | % | 0.79 | % | 2.01 | % |
Available funds | March 31, 2021 | Dec. 31, 2020 | Average | |||||||||||||||||||||||
(dollars in millions) | 1Q21 | 4Q20 | 1Q20 | |||||||||||||||||||||||
Cash and due from banks | $ | 5,991 | $ | 6,252 | $ | 5,720 | $ | 4,993 | $ | 4,595 | ||||||||||||||||
Interest-bearing deposits with the Federal Reserve and other central banks | 125,524 | 141,775 | 125,930 | 112,274 | 80,403 | |||||||||||||||||||||
Interest-bearing deposits with banks | 23,763 | 17,300 | 21,313 | 19,281 | 17,081 | |||||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | 28,263 | 30,907 | 29,186 | 28,389 | 34,109 | |||||||||||||||||||||
Total available funds | $ | 183,541 | $ | 196,234 | $ | 182,149 | $ | 164,937 | $ | 136,188 | ||||||||||||||||
Total available funds as a percentage of total assets | 39 | % | 42 | % | 40 | % | 38 | % | 35 | % |
Credit ratings at March 31, 2021
|
|||||||||||||||||||||||
Moody’s | S&P | Fitch | DBRS | ||||||||||||||||||||
Parent: | |||||||||||||||||||||||
Long-term senior debt | A1 | A | AA- | AA | |||||||||||||||||||
Subordinated debt | A2 | A- | A | AA (low) | |||||||||||||||||||
Preferred stock | Baa1 | BBB | BBB+ | A | |||||||||||||||||||
Outlook – Parent | Stable | Stable | Stable | Stable | |||||||||||||||||||
The Bank of New York Mellon: | |||||||||||||||||||||||
Long-term senior debt | Aa2 | AA- | AA | AA (high) | |||||||||||||||||||
Subordinated debt | NR | 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) | AA- |
AA
|
(a) | AA (high) | |||||||||||||||||
Long-term deposits | Aa1 | AA- | AA+ | AA (high) | |||||||||||||||||||
Short-term deposits | P1 | A-1+ | F1+ | R-1 (high) | |||||||||||||||||||
Outlook – Banks | Stable | Stable | Stable | Stable |
Consolidated HQLA and LCR | March 31, 2021 | ||||
(dollars in billions) | |||||
Securities (a)
|
$ | 120 | |||
Cash (b)
|
126 | ||||
Total consolidated HQLA (c)
|
$ | 246 | |||
Total consolidated HQLA – average (c)
|
$ | 243 | |||
Average LCR | 110 | % |
Capital data
(dollars in millions, except per share amounts; common shares in thousands)
|
March 31, 2021 | Dec. 31, 2020 | |||||||||
Average common equity to average assets | 8.8 | % | 9.3 | % | |||||||
At period end: | |||||||||||
BNY Mellon shareholders’ equity to total assets ratio | 9.7 | % | 9.8 | % | |||||||
BNY Mellon common shareholders’ equity to total assets ratio | 8.7 | % | 8.8 | % | |||||||
Total BNY Mellon shareholders’ equity | $ | 44,954 | $ | 45,801 | |||||||
Total BNY Mellon common shareholders’ equity | $ | 40,413 | $ | 41,260 | |||||||
BNY Mellon tangible common shareholders’ equity – Non-GAAP (a)
|
$ | 21,779 | $ | 22,563 | |||||||
Book value per common share | $ | 46.16 | $ | 46.53 | |||||||
Tangible book value per common share – Non-GAAP (a)
|
$ | 24.88 | $ | 25.44 | |||||||
Closing stock price per common share | $ | 47.29 | $ | 42.44 | |||||||
Market capitalization | $ | 41,401 | $ | 37,634 | |||||||
Common shares outstanding | 875,481 | 886,764 | |||||||||
Cash dividends per common share | $ | 0.31 | $ | 0.31 | |||||||
Common dividend payout ratio | 32 | % | 39 | % | |||||||
Common dividend yield | 2.7 | % | 2.9 | % |
Consolidated and largest bank subsidiary regulatory capital ratios
|
March 31, 2021 | Dec. 31, 2020 | ||||||||||||||||||||||||||||||
Well capitalized | Minimum required |
Capital
ratios |
Capital
ratios |
|||||||||||||||||||||||||||||
(a) | ||||||||||||||||||||||||||||||||
Consolidated regulatory capital ratios: (b)
|
||||||||||||||||||||||||||||||||
Advanced Approaches: | ||||||||||||||||||||||||||||||||
CET1 ratio | N/A | (c) | 8.5 | % | 12.6 | % | 13.1 | % | ||||||||||||||||||||||||
Tier 1 capital ratio | 6 | % | 10 | 15.3 | 15.8 | |||||||||||||||||||||||||||
Total capital ratio | 10 | 12 | 16.1 | 16.7 | ||||||||||||||||||||||||||||
Standardized Approach: | ||||||||||||||||||||||||||||||||
CET1 ratio | N/A | (c) | 8.5 | % | 12.6 | % | 13.4 | % | ||||||||||||||||||||||||
Tier 1 capital ratio | 6 | % | 10 | 15.2 | 16.1 | |||||||||||||||||||||||||||
Total capital ratio | 10 | 12 | 16.2 | 17.1 | ||||||||||||||||||||||||||||
Tier 1 leverage ratio | N/A | (c) | 4 | 5.8 | 6.3 | |||||||||||||||||||||||||||
SLR (d)(e)
|
N/A | (c) | 5 | 8.1 | 8.6 | |||||||||||||||||||||||||||
The Bank of New York Mellon regulatory capital ratios: (b)
|
||||||||||||||||||||||||||||||||
Advanced Approaches: | ||||||||||||||||||||||||||||||||
CET1 ratio | 6.5 | % | 7 | % | 16.8 | % | 17.1 | % | ||||||||||||||||||||||||
Tier 1 capital ratio | 8 | 8.5 | 16.8 | 17.1 | ||||||||||||||||||||||||||||
Total capital ratio | 10 | 10.5 | 17.0 | 17.3 | ||||||||||||||||||||||||||||
Tier 1 leverage ratio | 5 | 4 | 6.1 | 6.4 | ||||||||||||||||||||||||||||
SLR (d)
|
6 | 3 | 8.2 | 8.5 |
Capital components and risk-weighted assets | March 31, 2021 | Dec. 31, 2020 | |||||||||
(in millions) | |||||||||||
CET1: | |||||||||||
Common shareholders’ equity | $ | 40,413 | $ | 41,260 | |||||||
Adjustments for: | |||||||||||
Goodwill and intangible assets (a)
|
(18,634) | (18,697) | |||||||||
Net pension fund assets | (321) | (319) | |||||||||
Equity method investments | (307) | (306) | |||||||||
Deferred tax assets | (53) | (54) | |||||||||
Other | (8) | (9) | |||||||||
Total CET1 | 21,090 | 21,875 | |||||||||
Other Tier 1 capital: | |||||||||||
Preferred stock | 4,541 | 4,541 | |||||||||
Other | (97) | (106) | |||||||||
Total Tier 1 capital | $ | 25,534 | $ | 26,310 | |||||||
Tier 2 capital: | |||||||||||
Subordinated debt | $ | 1,248 | $ | 1,248 | |||||||
Allowance for credit losses | 409 | 490 | |||||||||
Other | (1) | (10) | |||||||||
Total Tier 2 capital – Standardized Approach | 1,656 | 1,728 | |||||||||
Excess of expected credit losses | 127 | 247 | |||||||||
Less: Allowance for credit losses | 409 | 490 | |||||||||
Total Tier 2 capital – Advanced Approaches | $ | 1,374 | $ | 1,485 | |||||||
Total capital: | |||||||||||
Standardized Approach | $ | 27,190 | $ | 28,038 | |||||||
Advanced Approaches | $ | 26,908 | $ | 27,795 | |||||||
Risk-weighted assets: | |||||||||||
Standardized Approach | $ | 167,510 | $ | 163,848 | |||||||
Advanced Approaches: | |||||||||||
Credit Risk | $ | 99,398 | $ | 98,262 | |||||||
Market Risk | 3,599 | 4,226 | |||||||||
Operational Risk | 64,038 | 63,938 | |||||||||
Total Advanced Approaches | $ | 167,035 | $ | 166,426 | |||||||
Average assets for Tier 1 leverage ratio | $ | 440,968 | $ | 417,982 | |||||||
Total leverage exposure for SLR | $ | 314,334 | $ | 304,823 |
CET1 generation | 1Q21 | ||||
(in millions) | |||||
CET1 – Beginning of period | $ | 21,875 | |||
Net income applicable to common shareholders of The Bank of New York Mellon Corporation | 858 | ||||
Goodwill and intangible assets, net of related deferred tax liabilities | 63 | ||||
Gross CET1 generated | 921 | ||||
Capital deployed: | |||||
Common stock dividends (a)
|
(277) | ||||
Common stock repurchases | (699) | ||||
Total capital deployed | (976) | ||||
Other comprehensive income: | |||||
Unrealized loss on assets available-for-sale | (703) | ||||
Foreign currency translation | (150) | ||||
Unrealized loss on cash flow hedges | (3) | ||||
Defined benefit plans | 22 | ||||
Total other comprehensive income | (834) | ||||
Additional paid-in capital (b)
|
105 | ||||
Other additions (deductions): | |||||
Net pension fund assets | (2) | ||||
Embedded goodwill | (1) | ||||
Deferred tax assets | 1 | ||||
Other | 1 | ||||
Total other deductions | (1) | ||||
Net CET1 deployed | (785) | ||||
CET1 – End of period | $ | 21,090 |
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 | March 31, 2021 | ||||||||||
Minimum
required |
Minimum ratios
with buffers |
||||||||||
Ratios | |||||||||||
Eligible external TLAC: | |||||||||||
As a percentage of RWA
|
18.0 | % | 21.5 | % | 27.5 | % | |||||
As a percentage of total leverage exposure
|
7.5 | % | 9.5 | % | 14.6 | % | |||||
Eligible external LTD: | |||||||||||
As a percentage of RWA | 7.5 | % | N/A | 11.4 | % | ||||||
As a percentage of total leverage exposure
|
4.5 | % | N/A | 6.1 | % |
VaR (a)
|
1Q21 | March 31, 2021 | ||||||||||||
(in millions) | Average | Minimum | Maximum | |||||||||||
Interest rate | $ | 2.1 | $ | 1.6 | $ | 2.7 | $ | 2.5 | ||||||
Foreign exchange | 2.7 | 2.2 | 3.9 | 3.0 | ||||||||||
Equity | 0.1 | 0.1 | 0.9 | 0.1 | ||||||||||
Credit | 1.8 | 1.3 | 2.8 | 2.2 | ||||||||||
Diversification | (3.5) | N/M | N/M | (4.3) | ||||||||||
Overall portfolio | 3.2 | 2.5 | 4.9 | 3.5 |
VaR (a)
|
4Q20 | Dec. 31, 2020 | ||||||||||||
(in millions) | Average | Minimum | Maximum | |||||||||||
Interest rate | $ | 2.2 | $ | 1.8 | $ | 3.0 | $ | 1.8 | ||||||
Foreign exchange | 2.5 | 1.9 | 3.6 | 3.0 | ||||||||||
Equity | 0.1 | — | 0.7 | 0.7 | ||||||||||
Credit | 1.8 | 1.2 | 2.7 | 2.1 | ||||||||||
Diversification | (3.1) | N/M | N/M | (3.7) | ||||||||||
Overall portfolio | 3.5 | 2.3 | 4.7 | 3.9 |
VaR (a)
|
1Q20 | March 31, 2020 | ||||||||||||
(in millions) | Average | Minimum | Maximum | |||||||||||
Interest rate | $ | 4.9 | $ | 3.2 | $ | 11.3 | $ | 5.1 | ||||||
Foreign exchange | 3.1 | 1.7 | 6.3 | 4.5 | ||||||||||
Equity | 1.4 | 0.8 | 2.3 | 0.9 | ||||||||||
Credit | 3.4 | 1.2 | 12.1 | 9.8 | ||||||||||
Diversification | (6.4) | N/M | N/M | (9.9) | ||||||||||
Overall portfolio | 6.4 | 3.5 | 14.3 | 10.4 |
Estimated changes in net interest revenue
(in millions) |
March 31, 2021 | Dec. 31, 2020 | March 31, 2020 | ||||||||
Up 200 bps parallel rate ramp vs. baseline (a)
|
$ | 1,024 | $ | 826 | $ | 557 | |||||
Up 100 bps parallel rate ramp vs. baseline (a)
|
551 | 449 | 334 | ||||||||
Down 100 bps parallel rate ramp vs. baseline (a)
|
384 | 411 | 100 | ||||||||
Long-term up 50 bps, short-term unchanged (b)
|
120 | 125 | 166 | ||||||||
Long-term down 50 bps, short-term unchanged (b)
|
(116) | (144) | (158) |
Book value and tangible book value per common share reconciliation | March 31, 2021 | Dec. 31, 2020 | March 31, 2020 | |||||||||||||||||
(dollars in millions, except per share amounts and unless otherwise noted) | ||||||||||||||||||||
BNY Mellon shareholders’ equity at period end – GAAP | $ | 44,954 | $ | 45,801 | $ | 41,145 | ||||||||||||||
Less: Preferred stock | 4,541 | 4,541 | 3,542 | |||||||||||||||||
BNY Mellon common shareholders’ equity at period end – GAAP | 40,413 | 41,260 | 37,603 | |||||||||||||||||
Less: Goodwill | 17,469 | 17,496 | 17,240 | |||||||||||||||||
Intangible assets | 2,983 | 3,012 | 3,070 | |||||||||||||||||
Add: Deferred tax liability – tax deductible goodwill | 1,153 | 1,144 | 1,109 | |||||||||||||||||
Deferred tax liability – intangible assets | 665 | 667 | 666 | |||||||||||||||||
BNY Mellon tangible common shareholders’ equity at period end – Non-GAAP
|
$ | 21,779 | $ | 22,563 | $ | 19,068 | ||||||||||||||
Period-end common shares outstanding (in thousands)
|
875,481 | 886,764 | 885,443 | |||||||||||||||||
Book value per common share – GAAP | $ | 46.16 | $ | 46.53 | $ | 42.47 | ||||||||||||||
Tangible book value per common share – Non-GAAP | $ | 24.88 | $ | 25.44 | $ | 21.53 |
Constant currency reconciliation – Consolidated | 1Q21 | 1Q20 | 1Q21 vs. | ||||||||
(dollars in millions) | 1Q20 | ||||||||||
Investment management and performance fees – GAAP | $ | 890 | $ | 862 | 3 | % | |||||
Impact of changes in foreign currency exchange rates | — | 23 | |||||||||
Adjusted investment management and performance fees – Non-GAAP | $ | 890 | $ | 885 | 1 | % |
Constant currency reconciliation – Investment and Wealth Management business
|
1Q21 vs. | ||||||||||
(dollars in millions) | 1Q21 | 1Q20 | 1Q20 | ||||||||
Investment management and performance fees – GAAP
|
$ | 890 | $ | 862 | 3 | % | |||||
Impact of changes in foreign currency exchange rates | — | 23 | |||||||||
Adjusted investment management and performance fees – Non-GAAP | $ | 890 | $ | 885 | 1 | % |
The Bank of New York Mellon Corporation (and its subsidiaries) |
Quarter ended | ||||||||||||||||||||
March 31, 2021 | Dec. 31, 2020 | March 31, 2020 | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Fee and other revenue | ||||||||||||||||||||
Investment services fees: | ||||||||||||||||||||
Asset servicing fees | $ | 1,199 | $ | 1,138 | $ | 1,159 | ||||||||||||||
Clearing services fees | 455 | 418 | 470 | |||||||||||||||||
Issuer services fees | 245 | 257 | 263 | |||||||||||||||||
Treasury services fees | 157 | 156 | 149 | |||||||||||||||||
Total investment services fees | 2,056 | 1,969 | 2,041 | |||||||||||||||||
Investment management and performance fees | 890 | 884 | 862 | |||||||||||||||||
Foreign exchange revenue (a)
|
231 | 187 | 245 | |||||||||||||||||
Financing-related fees | 51 | 46 | 59 | |||||||||||||||||
Distribution and servicing | 29 | 28 | 31 | |||||||||||||||||
Total fee revenue (a)
|
3,257 | 3,114 | 3,238 | |||||||||||||||||
Investment and other income (a)
|
9 | 43 | 47 | |||||||||||||||||
Net securities gains | — | 6 | 9 | |||||||||||||||||
Total other revenue (a)
|
9 | 49 | 56 | |||||||||||||||||
Total fee and other revenue (a)
|
3,266 | 3,163 | 3,294 | |||||||||||||||||
Net interest revenue | ||||||||||||||||||||
Interest revenue | 738 | 776 | 1,570 | |||||||||||||||||
Interest expense | 83 | 96 | 756 | |||||||||||||||||
Net interest revenue | 655 | 680 | 814 | |||||||||||||||||
Total revenue | 3,921 | 3,843 | 4,108 | |||||||||||||||||
Provision for credit losses | (83) | 15 | 169 | |||||||||||||||||
Noninterest expense | ||||||||||||||||||||
Staff | 1,602 | 1,554 | 1,482 | |||||||||||||||||
Software and equipment | 362 | 359 | 326 | |||||||||||||||||
Professional, legal and other purchased services | 343 | 381 | 330 | |||||||||||||||||
Sub-custodian and clearing | 124 | 116 | 105 | |||||||||||||||||
Net occupancy | 123 | 173 | 135 | |||||||||||||||||
Distribution and servicing | 74 | 75 | 91 | |||||||||||||||||
Bank assessment charges | 34 | 24 | 35 | |||||||||||||||||
Amortization of intangible assets | 24 | 26 | 26 | |||||||||||||||||
Business development | 19 | 26 | 42 | |||||||||||||||||
Other | 146 | 191 | 140 | |||||||||||||||||
Total noninterest expense | 2,851 | 2,925 | 2,712 | |||||||||||||||||
Income | ||||||||||||||||||||
Income before income taxes | 1,153 | 903 | 1,227 | |||||||||||||||||
Provision for income taxes | 221 | 148 | 265 | |||||||||||||||||
Net income | 932 | 755 | 962 | |||||||||||||||||
Net (income) loss attributable to noncontrolling interests related to consolidated investment management funds | (5) | (5) | 18 | |||||||||||||||||
Net income applicable to shareholders of The Bank of New York Mellon Corporation | 927 | 750 | 980 | |||||||||||||||||
Preferred stock dividends | (69) | (48) | (36) | |||||||||||||||||
Net income applicable to common shareholders of The Bank of New York Mellon Corporation | $ | 858 | $ | 702 | $ | 944 |
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 | ||||||||||||||||||||||
(in millions) | March 31, 2021 | Dec. 31, 2020 | March 31, 2020 | ||||||||||||||||||||
Net income applicable to common shareholders of The Bank of New York Mellon Corporation | $ | 858 | $ | 702 | $ | 944 | |||||||||||||||||
Less: Earnings allocated to participating securities | 1 | 1 | 3 | ||||||||||||||||||||
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 | $ | 857 | $ | 701 | $ | 941 |
Average common shares and equivalents outstanding of The Bank of New York Mellon Corporation | Quarter ended | ||||||||||||||||||||||
(in thousands) | March 31, 2021 | Dec. 31, 2020 | March 31, 2020 | ||||||||||||||||||||
Basic | 882,558 | 889,928 | 894,122 | ||||||||||||||||||||
Common stock equivalents | 3,824 | 2,654 | 3,941 | ||||||||||||||||||||
Less: Participating securities | (727) | (736) | (1,374) | ||||||||||||||||||||
Diluted | 885,655 | 891,846 | 896,689 | ||||||||||||||||||||
Anti-dilutive securities (a)
|
4,133 | 1,493 | 2,584 |
Earnings per share applicable to common shareholders of The Bank of New York Mellon Corporation | Quarter ended | ||||||||||||||||||||||
(in dollars) | March 31, 2021 | Dec. 31, 2020 | March 31, 2020 | ||||||||||||||||||||
Basic | $ | 0.97 | $ | 0.79 | $ | 1.05 | |||||||||||||||||
Diluted | $ | 0.97 | $ | 0.79 | $ | 1.05 |
The Bank of New York Mellon Corporation (and its subsidiaries) |
Quarter ended | |||||||||||||||||||||||
(in millions) | March 31, 2021 | Dec. 31, 2020 | March 31, 2020 | ||||||||||||||||||||
Net income | $ | 932 | $ | 755 | $ | 962 | |||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | (150) | 431 | (369) | ||||||||||||||||||||
Unrealized gain (loss) on assets available-for-sale: | |||||||||||||||||||||||
Unrealized (loss) gain arising during the period | (703) | 33 | 183 | ||||||||||||||||||||
Reclassification adjustment | — | (5) | (7) | ||||||||||||||||||||
Total unrealized (loss) gain on assets available-for-sale | (703) | 28 | 176 | ||||||||||||||||||||
Defined benefit plans: | |||||||||||||||||||||||
Net (loss) arising during the period | — | (107) | — | ||||||||||||||||||||
Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost | 22 | 20 | 18 | ||||||||||||||||||||
Total defined benefit plans | 22 | (87) | 18 | ||||||||||||||||||||
Net unrealized (loss) gain on cash flow hedges | (3) | 4 | (11) | ||||||||||||||||||||
Total other comprehensive (loss) income, net of tax (a)
|
(834) | 376 | (186) | ||||||||||||||||||||
Total comprehensive income | 98 | 1,131 | 776 | ||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | (5) | (5) | 18 | ||||||||||||||||||||
Other comprehensive (income) loss attributable to noncontrolling interests | — | (2) | 2 | ||||||||||||||||||||
Comprehensive income applicable to shareholders of The Bank of New York Mellon Corporation | $ | 93 | $ | 1,124 | $ | 796 |
The Bank of New York Mellon Corporation (and its subsidiaries) |
March 31, 2021 | Dec. 31, 2020 | |||||||
(dollars in millions, except per share amounts) | ||||||||
Assets | ||||||||
Cash and due from banks, net of allowance for credit losses of $3 and $4
|
$ | 5,991 | $ | 6,252 | ||||
Interest-bearing deposits with the Federal Reserve and other central banks | 125,524 | 141,775 | ||||||
Interest-bearing deposits with banks, net of allowance for credit losses of $2 and $3 (includes restricted of $3,379 and $3,167)
|
23,763 | 17,300 | ||||||
Federal funds sold and securities purchased under resale agreements | 28,263 | 30,907 | ||||||
Securities: | ||||||||
Held-to-maturity, at amortized cost, net of allowance for credit losses of less than $1 and less than $1 (fair value of $48,489 and $49,224)
|
48,032 | 47,946 | ||||||
Available-for-sale, at fair value (amortized cost of $106,156 and $105,141, net of allowance for credit losses of $10 and $11)
|
107,812 | 108,495 | ||||||
Total securities | 155,844 | 156,441 | ||||||
Trading assets | 16,884 | 15,272 | ||||||
Loans | 60,732 | 56,469 | ||||||
Allowance for credit losses | (327) | (358) | ||||||
Net loans | 60,405 | 56,111 | ||||||
Premises and equipment | 3,521 | 3,602 | ||||||
Accrued interest receivable | 485 | 510 | ||||||
Goodwill | 17,469 | 17,496 | ||||||
Intangible assets | 2,983 | 3,012 | ||||||
Other assets, net of allowance for credit losses on accounts receivable of $4 and $4 (includes $1,159 and $1,009, at fair value) (a)
|
23,852 | 20,955 | ||||||
Total assets | $ | 464,984 | $ | 469,633 | ||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest-bearing (principally U.S. offices) | $ | 95,306 | $ | 83,854 | ||||
Interest-bearing deposits in U.S. offices | 132,558 | 133,479 | ||||||
Interest-bearing deposits in non-U.S. offices | 108,904 | 124,212 | ||||||
Total deposits | 336,768 | 341,545 | ||||||
Federal funds purchased and securities sold under repurchase agreements | 15,150 | 11,305 | ||||||
Trading liabilities | 4,566 | 6,031 | ||||||
Payables to customers and broker-dealers | 23,827 | 25,085 | ||||||
Other borrowed funds | 348 | 350 | ||||||
Accrued taxes and other expenses
|
4,916 | 5,696 | ||||||
Other liabilities (including allowance for credit losses on lending-related commitments of $73 and $121, also includes $441 and $1,110, at fair value) (a)
|
8,656 | 7,517 | ||||||
Long-term debt (includes $400 and $400, at fair value)
|
25,350 | 25,984 | ||||||
Total liabilities | 419,581 | 423,513 | ||||||
Temporary equity | ||||||||
Redeemable noncontrolling interests | 187 | 176 | ||||||
Permanent equity | ||||||||
Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 45,826 and 45,826 shares
|
4,541 | 4,541 | ||||||
Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,387,789,904 and 1,382,306,327 shares
|
14 | 14 | ||||||
Additional paid-in capital | 27,928 | 27,823 | ||||||
Retained earnings | 34,822 | 34,241 | ||||||
Accumulated other comprehensive loss, net of tax | (1,819) | (985) | ||||||
Less: Treasury stock of 512,309,057 and 495,542,796 common shares, at cost
|
(20,532) | (19,833) | ||||||
Total The Bank of New York Mellon Corporation shareholders’ equity | 44,954 | 45,801 | ||||||
Nonredeemable noncontrolling interests of consolidated investment management funds | 262 | 143 | ||||||
Total permanent equity | 45,216 | 45,944 | ||||||
Total liabilities, temporary equity and permanent equity | $ | 464,984 | $ | 469,633 |
The Bank of New York Mellon Corporation (and its subsidiaries) |
Three months ended March 31, | ||||||||||||||
(in millions) | 2021 | 2020 | ||||||||||||
Operating activities | ||||||||||||||
Net income | $ | 932 | $ | 962 | ||||||||||
Net (income) attributable to noncontrolling interests | (5) | 18 | ||||||||||||
Net income applicable to shareholders of The Bank of New York Mellon Corporation | 927 | 980 | ||||||||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||||||||
Provision for credit losses (a)
|
(83) | 169 | ||||||||||||
Pension plan contributions
|
(7) | (6) | ||||||||||||
Depreciation and amortization
|
466 | 354 | ||||||||||||
Deferred tax (benefit)
|
275 | (300) | ||||||||||||
Net securities (gains) | — | (9) | ||||||||||||
Change in trading assets and liabilities | (3,074) | 2,419 | ||||||||||||
Change in accruals and other, net | (1,678) | (5,292) | ||||||||||||
Net cash (used for) operating activities | (3,174) | (1,685) | ||||||||||||
Investing activities | ||||||||||||||
Change in interest-bearing deposits with banks | (6,385) | (6,066) | ||||||||||||
Change in interest-bearing deposits with the Federal Reserve and other central banks | 13,940 | (52,370) | ||||||||||||
Purchases of securities held-to-maturity | (3,425) | (5,151) | ||||||||||||
Paydowns of securities held-to-maturity | 2,969 | 1,503 | ||||||||||||
Maturities of securities held-to-maturity | 161 | 1,310 | ||||||||||||
Purchases of securities available-for-sale | (12,247) | (22,222) | ||||||||||||
Sales of securities available-for-sale | 3,209 | 3,107 | ||||||||||||
Paydowns of securities available-for-sale | 3,498 | 2,042 | ||||||||||||
Maturities of securities available-for-sale | 3,878 | 4,727 | ||||||||||||
Net change in loans | (4,254) | (7,626) | ||||||||||||
Sales of loans and other real estate | 1 | 1 | ||||||||||||
Change in federal funds sold and securities purchased under resale agreements | 2,630 | 2,739 | ||||||||||||
Net change in seed capital investments | (38) | 18 | ||||||||||||
Purchases of premises and equipment/capitalized software | (220) | (264) | ||||||||||||
Dispositions, net of cash | 8 | — | ||||||||||||
Other, net | 953 | (349) | ||||||||||||
Net cash provided by (used for) investing activities | 4,678 | (78,601) | ||||||||||||
Financing activities | ||||||||||||||
Change in deposits | (2,922) | 79,678 | ||||||||||||
Change in federal funds purchased and securities sold under repurchase agreements | 3,936 | 1,775 | ||||||||||||
Change in payables to customers and broker-dealers | (1,229) | 5,329 | ||||||||||||
Change in other borrowed funds | 5 | 961 | ||||||||||||
Change in commercial paper | — | (2,838) | ||||||||||||
Net proceeds from the issuance of long-term debt | 1,196 | 998 | ||||||||||||
Repayments of long-term debt | (1,500) | (1,750) | ||||||||||||
Proceeds from the exercise of stock options | 26 | 30 | ||||||||||||
Issuance of common stock | 3 | 3 | ||||||||||||
Treasury stock acquired | (699) | (985) | ||||||||||||
Common cash dividends paid | (277) | (282) | ||||||||||||
Preferred cash dividends paid | (69) | (36) | ||||||||||||
Other, net | 10 | (3) | ||||||||||||
Net cash (used for) provided by financing activities | (1,520) | 82,880 | ||||||||||||
Effect of exchange rate changes on cash | (33) | (56) | ||||||||||||
Change in cash and due from banks and restricted cash | ||||||||||||||
Change in cash and due from banks and restricted cash | (49) | 2,538 | ||||||||||||
Cash and due from banks and restricted cash at beginning of period | 9,419 | 7,267 | ||||||||||||
Cash and due from banks and restricted cash at end of period | $ | 9,370 | $ | 9,805 | ||||||||||
Cash and due from banks and restricted cash | ||||||||||||||
Cash and due from banks at end of period (unrestricted cash) | $ | 5,991 | $ | 5,091 | ||||||||||
Restricted cash at end of period | 3,379 | 4,714 | ||||||||||||
Cash and due from banks and restricted cash at end of period | $ | 9,370 | $ | 9,805 | ||||||||||
Supplemental disclosures | ||||||||||||||
Interest paid | $ | 126 | $ | 851 | ||||||||||
Income taxes paid | 122 | 185 | ||||||||||||
Income taxes refunded | 4 | 10 |
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, 2020 | $ | 4,541 | $ | 14 | $ | 27,823 | $ | 34,241 | $ | (985) | $ | (19,833) | $ | 143 | $ | 45,944 | (a) | $ | 176 | |||||||||||||
Shares issued to shareholders of noncontrolling interests | — | — | — | — | — | — | — | — | 23 | |||||||||||||||||||||||
Redemption of subsidiary shares from noncontrolling interests | — | — | — | — | — | — | — | — | (30) | |||||||||||||||||||||||
Other net changes in noncontrolling interests | — | — | (33) | — | — | — | 114 | 81 | 18 | |||||||||||||||||||||||
Net income | — | — | — | 927 | — | — | 5 | 932 | — | |||||||||||||||||||||||
Other comprehensive income | — | — | — | — | (834) | — | — | (834) | — | |||||||||||||||||||||||
Dividends: | ||||||||||||||||||||||||||||||||
Common stock at $0.31 per
share (b)
|
— | — | — | (277) | — | — | — | (277) | — | |||||||||||||||||||||||
Preferred stock | — | — | — | (69) | — | — | — | (69) | — | |||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | (699) | — | (699) | — | |||||||||||||||||||||||
Common stock issued under employee benefit plans | — | — | 5 | — | — | — | — | 5 | — | |||||||||||||||||||||||
Stock awards and options exercised | — | — | 133 | — | — | — | — | 133 | — | |||||||||||||||||||||||
Balance at March 31, 2021 | $ | 4,541 | $ | 14 | $ | 27,928 | $ | 34,822 | $ | (1,819) | $ | (20,532) | $ | 262 | $ | 45,216 | (a) | $ | 187 |
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 Sept. 30, 2020 | $ | 4,532 | $ | 14 | $ | 27,741 | $ | 33,821 | $ | (1,359) | $ | (19,832) | $ | 251 | $ | 45,168 | (a) | $ | 179 | |||||||||||||
Shares issued to shareholders of noncontrolling interests
|
— | — | — | — | — | — | — | — | 25 | |||||||||||||||||||||||
Redemption of subsidiary shares from noncontrolling interests
|
— | — | — | — | — | — | — | — | (14) | |||||||||||||||||||||||
Other net changes in noncontrolling interests
|
— | — | 17 | — | — | — | (113) | (96) | (16) | |||||||||||||||||||||||
Net income | — | — | — | 750 | — | — | 5 | 755 | — | |||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 370 | — | — | 370 | 2 | |||||||||||||||||||||||
Dividends: | ||||||||||||||||||||||||||||||||
Common stock at $0.31 per
share
|
— | — | — | (278) | — | — | — | (278) | — | |||||||||||||||||||||||
Preferred stock | — | — | — | (33) | — | — | — | (33) | — | |||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | (1) | — | (1) | — | |||||||||||||||||||||||
Common stock issued under employee benefit plans | — | — | 5 | — | — | — | — | 5 | — | |||||||||||||||||||||||
Preferred stock redemption | (583) | — | — | — | — | — | — | (583) | — | |||||||||||||||||||||||
Preferred stock issued | 577 | — | — | — | — | — | — | 577 | — | |||||||||||||||||||||||
Stock awards and options exercised | — | — | 60 | — | — | — | — | 60 | — | |||||||||||||||||||||||
Amortization of preferred stock discount | 15 | — | — | (15) | — | — | — | — | — | |||||||||||||||||||||||
Other | — | — | — | (4) | 4 | — | — | — | — | |||||||||||||||||||||||
Balance at Dec. 31, 2020 | $ | 4,541 | $ | 14 | $ | 27,823 | $ | 34,241 | $ | (985) | $ | (19,833) | $ | 143 | $ | 45,944 | (a) | $ | 176 |
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, 2019 | $ | 3,542 | $ | 14 | $ | 27,515 | $ | 31,894 | $ | (2,638) | $ | (18,844) | $ | 102 | $ | 41,585 | (a) | $ | 143 | |||||||||||||
Impact of adopting ASU 2016-13, Financial Instruments – Credit Losses
|
— | — | — | 45 | (5) | — | — | 40 | — | |||||||||||||||||||||||
Adjusted balance at Jan. 1, 2019 | 3,542 | 14 | 27,515 | 31,939 | (2,643) | (18,844) | 102 | 41,625 | 143 | |||||||||||||||||||||||
Shares issued to shareholders of noncontrolling interests
|
— | — | — | — | — | — | — | — | 17 | |||||||||||||||||||||||
Redemption of subsidiary shares from noncontrolling interests
|
— | — | — | — | — | — | — | — | (16) | |||||||||||||||||||||||
Other net changes in noncontrolling interests
|
— | — | (5) | — | — | — | 10 | 5 | (2) | |||||||||||||||||||||||
Net income | — | — | — | 980 | — | — | (18) | 962 | — | |||||||||||||||||||||||
Other comprehensive income
|
— | — | — | — | (184) | — | — | (184) | (2) | |||||||||||||||||||||||
Dividends: | ||||||||||||||||||||||||||||||||
Common stock at $0.31 per
share
|
— | — | — | (282) | — | — | — | (282) | — | |||||||||||||||||||||||
Preferred stock | — | — | — | (36) | — | — | — | (36) | — | |||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | (985) | — | (985) | — | |||||||||||||||||||||||
Common stock issued under employee benefit plans
|
— | — | 9 | — | — | — | — | 9 | — | |||||||||||||||||||||||
Stock awards and options exercised
|
— | — | 125 | — | — | — | — | 125 | — | |||||||||||||||||||||||
Balance at March 31, 2020 | $ | 3,542 | $ | 14 | $ | 27,644 | $ | 32,601 | $ | (2,827) | $ | (19,829) | $ | 94 | $ | 41,239 | (a) | $ | 140 |
Notes to Consolidated Financial Statements | ||
Consolidated income statement reclassifications | Quarter ended | ||||||||||||||||
Dec. 31, 2020 | March 31, 2020 | ||||||||||||||||
(in millions) | |||||||||||||||||
Before reclassifications | |||||||||||||||||
Foreign exchange and other trading revenue | $ | 167 | $ | 319 | |||||||||||||
Total fee revenue | $ | 3,116 | $ | 3,323 | |||||||||||||
Investment and other income | $ | 22 | $ | 11 | |||||||||||||
Income (loss) from consolidated investment management funds | $ | 41 | $ | (38) | |||||||||||||
After reclassifications | |||||||||||||||||
Foreign exchange revenue | $ | 187 | $ | 245 | |||||||||||||
Total fee revenue | $ | 3,114 | $ | 3,238 | |||||||||||||
Investment and other income | $ | 43 | $ | 47 | |||||||||||||
Consolidated balance sheet reclassifications | Dec. 31, 2020 | |||||||||||||
(in millions) | ||||||||||||||
Before reclassifications | ||||||||||||||
Other assets | $ | 20,468 | ||||||||||||
Assets of consolidated investment management funds, at fair value | $ | 487 | ||||||||||||
Other liabilities | $ | 7,514 | ||||||||||||
Liabilities of consolidated investment management funds, at fair value | $ | 3 | ||||||||||||
After reclassifications | ||||||||||||||
Other assets | $ | 20,955 | ||||||||||||
Other liabilities | $ | 7,517 |
Notes to Consolidated Financial Statements (continued)
|
||
Business segment reclassifications | ||||||||||||||
(in millions) | 4Q20 | 3Q20 | 2Q20 | 1Q20 | ||||||||||
Investment Services business | ||||||||||||||
Before reclassifications | ||||||||||||||
Foreign exchange and other trading revenue | $ | 180 | $ | 146 | $ | 178 | $ | 261 | ||||||
Other revenue | $ | 94 | $ | 100 | $ | 145 | $ | 146 | ||||||
After reclassifications | ||||||||||||||
Foreign exchange revenue | $ | 163 | $ | 126 | $ | 164 | $ | 228 | ||||||
Other revenue | $ | 111 | $ | 120 | $ | 159 | $ | 179 | ||||||
Other segment | ||||||||||||||
Before reclassifications | ||||||||||||||
Fee (loss) revenue | $ | (23) | $ | 11 | $ | 29 | $ | 21 | ||||||
Net securities gains | $ | 6 | $ | 9 | $ | 9 | $ | 9 | ||||||
After reclassifications | ||||||||||||||
Fee revenue | $ | 11 | $ | 7 | $ | 10 | $ | 6 | ||||||
Other (loss) revenue | $ | (28) | $ | 13 | $ | 28 | $ | 24 |
Securities at March 31, 2021 |
Gross
unrealized |
Fair
value |
||||||||||||
Amortized cost | ||||||||||||||
(in millions) | Gains | Losses | ||||||||||||
Available-for-sale: | ||||||||||||||
U.S. Treasury | $ | 27,474 | $ | 730 | $ | 276 | $ | 27,928 | ||||||
Agency residential mortgage-backed securities (“RMBS”) | 19,501 | 405 | 60 | 19,846 | ||||||||||
Sovereign debt/sovereign guaranteed | 13,453 | 141 | 34 | 13,560 | ||||||||||
Agency commercial mortgage-backed securities (“MBS”) | 8,797 | 446 | 27 | 9,216 | ||||||||||
Supranational | 7,414 | 44 | 20 | 7,438 | ||||||||||
Foreign covered bonds | 6,491 | 55 | 4 | 6,542 | ||||||||||
Collateralized loan obligations (“CLOs”) | 4,751 | 7 | 4 | 4,754 | ||||||||||
Non-agency commercial MBS | 2,907 | 80 | 28 | 2,959 | ||||||||||
U.S. government agencies | 2,823 | 113 | 17 | 2,919 | ||||||||||
Foreign government agencies | 2,678 | 24 | 4 | 2,698 | ||||||||||
State and political subdivisions | 2,650 | 19 | 35 | 2,634 | ||||||||||
Other asset-backed securities (“ABS”) | 2,617 | 20 | 9 | 2,628 | ||||||||||
Non-agency RMBS (a)
|
2,310 | 156 | 15 | 2,451 | ||||||||||
Corporate bonds | 2,289 | 32 | 83 | 2,238 | ||||||||||
Other debt securities | 1 | — | — | 1 | ||||||||||
Total securities available-for-sale (b)(c)
|
$ | 106,156 | $ | 2,272 | $ | 616 | $ | 107,812 | ||||||
Held-to-maturity: | ||||||||||||||
Agency RMBS | $ | 38,606 | $ | 728 | $ | 346 | $ | 38,988 | ||||||
U.S. Treasury | 2,938 | 72 | — | 3,010 | ||||||||||
Agency commercial MBS | 2,687 | 69 | 30 | 2,726 | ||||||||||
U.S. government agencies | 2,675 | 1 | 68 | 2,608 | ||||||||||
Sovereign debt/sovereign guaranteed | 1,001 | 30 | 2 | 1,029 | ||||||||||
Non-agency RMBS | 55 | 3 | — | 58 | ||||||||||
Supranational | 55 | — | — | 55 | ||||||||||
State and political subdivisions | 15 | 1 | 1 | 15 | ||||||||||
Total securities held-to-maturity | $ | 48,032 | $ | 904 | $ | 447 | $ | 48,489 | ||||||
Total securities | $ | 154,188 | $ | 3,176 | $ | 1,063 | $ | 156,301 |
Notes to Consolidated Financial Statements (continued)
|
||
Securities at Dec. 31, 2020 |
Gross
unrealized |
|||||||||||||
Amortized cost |
Fair
value |
|||||||||||||
(in millions) | Gains | Losses | ||||||||||||
Available-for-sale: | ||||||||||||||
U.S. Treasury | $ | 23,557 | $ | 1,358 | $ | 21 | $ | 24,894 | ||||||
Agency RMBS | 21,919 | 479 | 51 | 22,347 | ||||||||||
Sovereign debt/sovereign guaranteed
|
12,202 | 190 | 1 | 12,391 | ||||||||||
Agency commercial MBS
|
8,605 | 625 | 2 | 9,228 | ||||||||||
Supranational | 7,086 | 75 | 1 | 7,160 | ||||||||||
Foreign covered bonds
|
6,658 | 68 | 1 | 6,725 | ||||||||||
CLOs | 4,706 | 7 | 10 | 4,703 | ||||||||||
Foreign government agencies
|
4,086 | 49 | — | 4,135 | ||||||||||
U.S. government agencies
|
3,680 | 174 | 1 | 3,853 | ||||||||||
Other ABS
|
3,135 | 32 | 3 | 3,164 | ||||||||||
Non-agency commercial MBS
|
2,864 | 159 | 6 | 3,017 | ||||||||||
Non-agency RMBS (a)
|
2,178 | 157 | 9 | 2,326 | ||||||||||
State and political subdivisions
|
2,270 | 39 | 1 | 2,308 | ||||||||||
Corporate bonds | 1,945 | 50 | 1 | 1,994 | ||||||||||
Commercial paper/certificates of deposit (“CDs”) | 249 | — | — | 249 | ||||||||||
Other debt securities | 1 | — | — | 1 | ||||||||||
Total securities available-for-sale (b)(c)
|
$ | 105,141 | $ | 3,462 | $ | 108 | $ | 108,495 | ||||||
Held-to-maturity: | ||||||||||||||
Agency RMBS | $ | 38,355 | $ | 1,055 | $ | 14 | $ | 39,396 | ||||||
U.S. Treasury | 2,938 | 90 | — | 3,028 | ||||||||||
U.S. government agencies
|
2,816 | 4 | 6 | 2,814 | ||||||||||
Agency commercial MBS
|
2,659 | 105 | 2 | 2,762 | ||||||||||
Sovereign debt/sovereign guaranteed
|
1,050 | 42 | — | 1,092 | ||||||||||
Non-agency RMBS | 58 | 3 | — | 61 | ||||||||||
Supranational
|
55 | — | — | 55 | ||||||||||
State and political subdivisions
|
15 | 1 | — | 16 | ||||||||||
Total securities held-to-maturity
|
$ | 47,946 | $ | 1,300 | $ | 22 | $ | 49,224 | ||||||
Total securities | $ | 153,087 | $ | 4,762 | $ | 130 | $ | 157,719 |
Net securities gains (losses) | ||||||||||||||||||||
(in millions) | 1Q21 | 4Q20 | 1Q20 | |||||||||||||||||
Realized gross gains | $ | 12 | $ | 8 | $ | 12 | ||||||||||||||
Realized gross losses | (12) | (2) | (3) | |||||||||||||||||
Total net securities gains | $ | — | $ | 6 | $ | 9 |
Net securities gains (losses) | ||||||||||||||||||||
(in millions) | 1Q21 | 4Q20 | 1Q20 | |||||||||||||||||
U.S. Treasury | $ | (4) | $ | 1 | $ | 5 | ||||||||||||||
Other | 4 | 5 | 4 | |||||||||||||||||
Total net securities gains | $ | — | $ | 6 | $ | 9 |
Notes to Consolidated Financial Statements (continued)
|
||
Available-for-sale securities in an unrealized loss position without an allowance for credit losses at March 31, 2021 (a)
|
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair
value |
Unrealized
losses |
Fair
value |
Unrealized
losses |
Fair
value |
Unrealized
losses |
|||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Agency RMBS | $ | 1,452 | $ | 22 | $ | 604 | $ | 38 | $ | 2,056 | $ | 60 | ||||||||||||||
U.S. Treasury | 9,032 | 276 | — | — | 9,032 | 276 | ||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 3,751 | 34 | 190 | — | 3,941 | 34 | ||||||||||||||||||||
Agency commercial MBS | 1,164 | 26 | 233 | 1 | 1,397 | 27 | ||||||||||||||||||||
Foreign covered bonds | 849 | 4 | 14 | — | 863 | 4 | ||||||||||||||||||||
Supranational | 1,818 | 20 | 133 | — | 1,951 | 20 | ||||||||||||||||||||
CLOs | 749 | 1 | 451 | 3 | 1,200 | 4 | ||||||||||||||||||||
Foreign government agencies | 698 | 4 | — | — | 698 | 4 | ||||||||||||||||||||
U.S. government agencies | 829 | 17 | — | — | 829 | 17 | ||||||||||||||||||||
Other ABS | 1,031 | 8 | 138 | 1 | 1,169 | 9 | ||||||||||||||||||||
Non-agency commercial MBS | 998 | 27 | 104 | 1 | 1,102 | 28 | ||||||||||||||||||||
Non-agency RMBS (b)
|
1,114 | 11 | 263 | 4 | 1,377 | 15 | ||||||||||||||||||||
State and political subdivisions | 1,420 | 35 | 2 | — | 1,422 | 35 | ||||||||||||||||||||
Corporate bonds | 1,559 | 83 | — | — | 1,559 | 83 | ||||||||||||||||||||
Total securities available-for-sale (c)
|
$ | 26,464 | $ | 568 | $ | 2,132 | $ | 48 | $ | 28,596 | $ | 616 |
Available-for-sale securities in an unrealized loss position without an allowance for credit losses at Dec. 31, 2020 (a)
|
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair
value |
Unrealized
losses |
Fair
value |
Unrealized
losses |
Fair
value |
Unrealized
losses |
|||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||
Agency RMBS | $ | 850 | $ | 4 | $ | 1,965 | $ | 47 | $ | 2,815 | $ | 51 | ||||||||||||||
U.S. Treasury | 4,253 | 21 | — | — | 4,253 | 21 | ||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 1,349 | 1 | 135 | — | 1,484 | 1 | ||||||||||||||||||||
Agency commercial MBS | 440 | 1 | 266 | 1 | 706 | 2 | ||||||||||||||||||||
Foreign covered bonds | 468 | 1 | 90 | — | 558 | 1 | ||||||||||||||||||||
Supranational | 1,041 | 1 | 132 | — | 1,173 | 1 | ||||||||||||||||||||
CLOs | 1,849 | 6 | 579 | 4 | 2,428 | 10 | ||||||||||||||||||||
U.S. government agencies | 160 | 1 | — | — | 160 | 1 | ||||||||||||||||||||
Other ABS | 449 | 2 | 226 | 1 | 675 | 3 | ||||||||||||||||||||
Non-agency commercial MBS | 468 | 4 | 170 | 2 | 638 | 6 | ||||||||||||||||||||
Non-agency RMBS (b)
|
973 | 3 | 103 | 6 | 1,076 | 9 | ||||||||||||||||||||
State and political subdivisions | 273 | 1 | 2 | — | 275 | 1 | ||||||||||||||||||||
Corporate bonds | 282 | 1 | — | — | 282 | 1 | ||||||||||||||||||||
Total securities available-for-sale (c)
|
$ | 12,855 | $ | 47 | $ | 3,668 | $ | 61 | $ | 16,523 | $ | 108 | ||||||||||||||
Notes to Consolidated Financial Statements (continued)
|
||
Held-to-maturity securities portfolio at March 31, 2021
|
Ratings (a)
|
|||||||||||||||||||||||||||||||
Net unrealized gain |
BB+
and lower |
A1+/A2/SP-1 | ||||||||||||||||||||||||||||||
(dollars in millions) |
Amortized
cost |
AAA/
AA- |
A+/
A- |
BBB+/
BBB- |
Not
rated |
|||||||||||||||||||||||||||
Agency RMBS
|
$ | 38,606 | $ | 382 | 100 | % | — | % | — | % | — | % | — | % | — | % | ||||||||||||||||
U.S. Treasury | 2,938 | 72 | 100 | — | — | — | — | — | ||||||||||||||||||||||||
U.S. government agencies
|
2,675 | (67) | 100 | — | — | — | — | — | ||||||||||||||||||||||||
Agency commercial MBS
|
2,687 | 39 | 100 | — | — | — | — | — | ||||||||||||||||||||||||
Sovereign debt/sovereign guaranteed (b)
|
1,001 | 28 | 100 | — | — | — | — | — | ||||||||||||||||||||||||
Non-agency RMBS | 55 | 3 | 28 | 56 | 1 | 14 | — | 1 | ||||||||||||||||||||||||
Supranational | 55 | — | 100 | — | — | — | — | — | ||||||||||||||||||||||||
State and political subdivisions
|
15 | — | 6 | 2 | 5 | — | — | 87 | ||||||||||||||||||||||||
Total held-to-maturity securities
|
$ | 48,032 | $ | 457 | 100 | % | — | % | — | % | — | % | — | % | — | % |
Held-to-maturity securities portfolio at Dec. 31, 2020
|
Ratings (a)
|
|||||||||||||||||||||||||||||||
Net unrealized gain |
BB+
and lower |
A1+/A2/SP-1 | ||||||||||||||||||||||||||||||
(dollars in millions) |
Amortized
cost |
AAA/
AA- |
A+/
A- |
BBB+/
BBB- |
Not
rated |
|||||||||||||||||||||||||||
Agency RMBS | $ | 38,355 | $ | 1,041 | 100 | % | — | % | — | % | — | % | — | % | — | % | ||||||||||||||||
U.S. Treasury | 2,938 | 90 | 100 | — | — | — | — | — | ||||||||||||||||||||||||
U.S. government agencies | 2,816 | (2) | 100 | — | — | — | — | — | ||||||||||||||||||||||||
Agency commercial MBS | 2,659 | 103 | 100 | — | — | — | — | — | ||||||||||||||||||||||||
Sovereign debt/sovereign guaranteed (b)
|
1,050 | 42 | 98 | — | — | — | 2 | — | ||||||||||||||||||||||||
Non-agency RMBS | 58 | 3 | 28 | 55 | 2 | 14 | — | 1 | ||||||||||||||||||||||||
Supranational | 55 | — | 100 | — | — | — | — | — | ||||||||||||||||||||||||
State and political subdivisions | 15 | 1 | 6 | 2 | 6 | — | — | 86 | ||||||||||||||||||||||||
Total held-to-maturity securities | $ | 47,946 | $ | 1,278 | 100 | % | — | % | — | % | — | % | — | % | — | % |
Notes to Consolidated Financial Statements (continued)
|
||
Maturity distribution and yields on securities at March 31, 2021
|
U.S. Treasury |
U.S. government
agencies |
State and political
subdivisions |
Other bonds, notes and debentures |
Mortgage/
asset-backed |
|||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | Amount |
Yield (a)
|
Amount |
Yield (a)
|
Amount |
Yield (a)
|
Amount |
Yield (a)
|
Amount |
Yield (a)
|
Total | |||||||||||||||||||||||||||||||||||||||
Securities available-for-sale:
|
||||||||||||||||||||||||||||||||||||||||||||||||||
One year or less | $ | 3,637 | 1.36 | % | $ | — | — | % | $ | 702 | 1.27 | % | $ | 9,028 | 0.46 | % | $ | — | — | % | $ | 13,367 | ||||||||||||||||||||||||||||
Over 1 through 5 years | 11,763 | 1.11 | 1,382 | 0.86 | 531 | 2.72 | 18,095 | 0.56 | — | — | 31,771 | |||||||||||||||||||||||||||||||||||||||
Over 5 through 10 years | 9,784 | 1.34 | 1,400 | 2.38 | 1,079 | 1.50 | 5,181 | 0.77 | — | — | 17,444 | |||||||||||||||||||||||||||||||||||||||
Over 10 years | 2,744 | 3.11 | 137 | 1.98 | 322 | 2.24 | 173 | 0.72 | — | — | 3,376 | |||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | — | — | — | — | — | — | — | — | 34,472 | 2.18 | 34,472 | |||||||||||||||||||||||||||||||||||||||
Asset-backed securities | — | — | — | — | — | — | — | — | 7,382 | 1.55 | 7,382 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 27,928 | 1.42 | % | $ | 2,919 | 1.64 | % | $ | 2,634 | 1.77 | % | $ | 32,477 | 0.57 | % | $ | 41,854 | 2.07 | % | $ | 107,812 | ||||||||||||||||||||||||||||
Securities held-to-maturity:
|
||||||||||||||||||||||||||||||||||||||||||||||||||
One year or less | $ | 1,429 | 2.03 | % | $ | — | — | % | $ | — | — | % | $ | 48 | 0.23 | % | $ | — | — | % | $ | 1,477 | ||||||||||||||||||||||||||||
Over 1 through 5 years | 1,509 | 1.93 | 880 | 0.68 | 2 | 5.62 | 925 | 0.69 | — | — | 3,316 | |||||||||||||||||||||||||||||||||||||||
Over 5 through 10 years | — | — | 1,530 | 1.07 | — | — | 83 | 0.60 | — | — | 1,613 | |||||||||||||||||||||||||||||||||||||||
Over 10 years | — | — | 265 | 2.18 | 13 | 4.76 | — | — | — | — | 278 | |||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | — | — | — | — | — | — | — | — | 41,348 | 2.38 | 41,348 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 2,938 | 1.98 | % | $ | 2,675 | 1.05 | % | $ | 15 | 4.90 | % | $ | 1,056 | 0.66 | % | $ | 41,348 | 2.38 | % | $ | 48,032 |
Notes to Consolidated Financial Statements (continued)
|
||
Loans | March 31, 2021 | Dec. 31, 2020 | ||||||
(in millions) | ||||||||
Domestic: | ||||||||
Commercial | $ | 1,428 | $ | 1,356 | ||||
Commercial real estate | 5,876 | 6,056 | ||||||
Financial institutions | 4,431 | 4,495 | ||||||
Lease financings | 399 | 431 | ||||||
Wealth management loans and mortgages
|
16,460 | 16,211 | ||||||
Other residential mortgages | 364 | 389 | ||||||
Overdrafts | 954 | 651 | ||||||
Other | 1,780 | 1,823 | ||||||
Margin loans | 15,514 | 13,141 | ||||||
Total domestic | 47,206 | 44,553 | ||||||
Foreign: | ||||||||
Commercial | 16 | 73 | ||||||
Commercial real estate | 6 | — | ||||||
Financial institutions | 6,531 | 6,750 | ||||||
Lease financings | 561 | 559 | ||||||
Wealth management loans and mortgages
|
123 | 146 | ||||||
Other (primarily overdrafts) | 3,910 | 2,113 | ||||||
Margin loans | 2,379 | 2,275 | ||||||
Total foreign | 13,526 | 11,916 | ||||||
Total loans (a)
|
$ | 60,732 | $ | 56,469 |
Allowance for credit losses activity for the quarter ended March 31, 2021
|
Wealth management loans and mortgages |
Other
residential mortgages |
||||||||||||||||||||||||||||||
(in millions) | Commercial |
Commercial
real estate |
Financial
institutions |
Lease
financings |
Total | |||||||||||||||||||||||||||
Beginning balance | $ | 16 | $ | 430 | $ | 10 | $ | 2 | $ | 8 | $ | 13 | $ | 479 | ||||||||||||||||||
Charge-offs | — | — | — | — | (1) | — | (1) | |||||||||||||||||||||||||
Recoveries | — | — | — | — | — | 2 | 2 | |||||||||||||||||||||||||
Net (charge-offs) recoveries | — | — | — | — | (1) | 2 | 1 | |||||||||||||||||||||||||
Provision (a)
|
(5) | (65) | (3) | — | (1) | (6) | (80) | |||||||||||||||||||||||||
Ending balance (b)
|
$ | 11 | $ | 365 | $ | 7 | $ | 2 | $ | 6 | $ | 9 | $ | 400 | ||||||||||||||||||
Allowance for: | ||||||||||||||||||||||||||||||||
Loan losses | $ | 4 | $ | 303 | $ | 4 | $ | 2 | $ | 5 | $ | 9 | $ | 327 | ||||||||||||||||||
Lending-related commitments | 7 | 62 | 3 | — | 1 | — | 73 | |||||||||||||||||||||||||
Individually evaluated for impairment: | ||||||||||||||||||||||||||||||||
Loan balance (c)
|
$ | — | $ | 26 | $ | — | $ | — | $ | 18 | $ | 1 | $ | 45 | ||||||||||||||||||
Allowance for loan losses | — | 5 | — | — | — | — | 5 |
Notes to Consolidated Financial Statements (continued)
|
||
Allowance for credit losses activity for the quarter ended Dec. 31, 2020
|
Wealth management loans and mortgages |
Other
residential mortgages |
||||||||||||||||||||||||||||||
(in millions) | Commercial |
Commercial
real estate |
Financial
institutions |
Lease
financings |
Total | |||||||||||||||||||||||||||
Beginning balance | $ | 27 | $ | 386 | $ | 11 | $ | 3 | $ | 15 | $ | 18 | $ | 460 | ||||||||||||||||||
Charge-offs | — | — | — | — | — | (1) | (1) | |||||||||||||||||||||||||
Recoveries | — | — | — | — | — | 1 | 1 | |||||||||||||||||||||||||
Net (charge-offs) recoveries | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Provision (a)
|
(11) | 44 | (1) | (1) | (7) | (5) | 19 | |||||||||||||||||||||||||
Ending balance (b)
|
$ | 16 | $ | 430 | $ | 10 | $ | 2 | $ | 8 | $ | 13 | $ | 479 | ||||||||||||||||||
Allowance for: | ||||||||||||||||||||||||||||||||
Loan losses | $ | 6 | $ | 324 | $ | 6 | $ | 2 | $ | 7 | $ | 13 | $ | 358 | ||||||||||||||||||
Lending-related commitments | 10 | 106 | 4 | — | 1 | — | 121 | |||||||||||||||||||||||||
Individually evaluated for impairment: | ||||||||||||||||||||||||||||||||
Loan balance | $ | — | $ | — | $ | — | $ | — | $ | 20 | (c) | $ | — | $ | 20 | |||||||||||||||||
Allowance for loan losses | — | — | — | — | — | — | — |
Allowance for credit losses activity for the quarter ended March 31, 2020
|
Wealth management loans and mortgages |
Other
residential mortgages |
Foreign | Total | ||||||||||||||||||||||||||||||||||
(in millions) | Commercial |
Commercial
real estate |
Financial
institutions |
Lease
financings |
(a) | |||||||||||||||||||||||||||||||||
Balance at Dec. 31, 2019 | $ | 60 | $ | 76 | $ | 20 | $ | 3 | $ | 20 | $ | 13 | $ | 24 | $ | 216 | ||||||||||||||||||||||
Impact of adopting ASU 2016-13 | (43) | 14 | (6) | — | (12) | 2 | (24) | (69) | ||||||||||||||||||||||||||||||
Balance at Jan. 1, 2020 | 17 | 90 | 14 | 3 | 8 | 15 | — | 147 | ||||||||||||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Recoveries | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Net (charge-offs) recoveries | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Provision (b)
|
9 | 118 | 4 | 10 | 1 | (1) | — | 141 | ||||||||||||||||||||||||||||||
Ending balance (c)
|
$ | 26 | $ | 208 | $ | 18 | $ | 13 | $ | 9 | $ | 14 | $ | — | $ | 288 | ||||||||||||||||||||||
Allowance for: | ||||||||||||||||||||||||||||||||||||||
Loan losses | $ | 13 | $ | 83 | $ | 10 | $ | 13 | $ | 7 | $ | 14 | $ | — | $ | 140 | ||||||||||||||||||||||
Lending-related commitments | 13 | 125 | 8 | — | 2 | — | — | 148 | ||||||||||||||||||||||||||||||
Individually evaluated for impairment: | ||||||||||||||||||||||||||||||||||||||
Loan balance | $ | — | $ | — | $ | — | $ | — | $ | 18 | (d) | $ | — | $ | — | $ | 18 | |||||||||||||||||||||
Allowance for loan losses | — | — | — | — | — | — | — | — |
Notes to Consolidated Financial Statements (continued)
|
||
Nonperforming assets | March 31, 2021 | Dec. 31, 2020 | |||||||||||||||||||||
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 | $ | 55 | $ | 1 | $ | 56 | $ | 57 | $ | — | $ | 57 | |||||||||||
Wealth management loans and mortgages
|
10 | 18 | 28 | 10 | 20 | 30 | |||||||||||||||||
Commercial real estate | 26 | — | 26 | 1 | — | 1 | |||||||||||||||||
Total nonperforming loans | 91 | 19 | 110 | 68 | 20 | 88 | |||||||||||||||||
Other assets owned | — | 2 | 2 | — | 1 | 1 | |||||||||||||||||
Total nonperforming assets
|
$ | 91 | $ | 21 | $ | 112 | $ | 68 | $ | 21 | $ | 89 |
Past due loans and still accruing interest | March 31, 2021 | Dec. 31, 2020 | |||||||||||||||||||||||||||
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 and mortgages | $ | 56 | $ | — | $ | — | $ | 56 | $ | 54 | $ | 1 | $ | — | $ | 55 | |||||||||||||
Financial institutions | 11 | 8 | — | 19 | 11 | — | — | 11 | |||||||||||||||||||||
Other residential mortgages | 7 | — | — | 7 | 3 | 1 | — | 4 | |||||||||||||||||||||
Commercial real estate | 4 | — | — | 4 | 19 | 16 | — | 35 | |||||||||||||||||||||
Total past due loans | $ | 78 | $ | 8 | $ | — | $ | 86 | $ | 87 | $ | 18 | $ | — | $ | 105 |
Notes to Consolidated Financial Statements (continued)
|
||
Credit profile of the loan portfolio | March 31, 2021 | |||||||||||||||||||||||||||||||
Revolving loans | ||||||||||||||||||||||||||||||||
Originated, at amortized cost | Amortized cost | Converted to term loans – Amortized cost |
Accrued
interest receivable |
|||||||||||||||||||||||||||||
(in millions) | 1Q21 | 2020 | 2019 | 2018 | 2017 | Prior to 2017 |
Total (a)
|
|||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||
Investment grade | $ | 392 | $ | 20 | $ | — | $ | — | $ | 208 | $ | 57 | $ | 589 | $ | — | $ | 1,266 | ||||||||||||||
Non-investment grade | 98 | 23 | — | — | — | — | 57 | — | 178 | |||||||||||||||||||||||
Total commercial | 490 | 43 | — | — | 208 | 57 | 646 | — | 1,444 | $ | 1 | |||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Investment grade | 892 | 457 | 818 | 175 | 319 | 542 | 123 | — | 3,326 | |||||||||||||||||||||||
Non-investment grade | 525 | 179 | 591 | 439 | 117 | 471 | 208 | 26 | 2,556 | |||||||||||||||||||||||
Total commercial real estate | 1,417 | 636 | 1,409 | 614 | 436 | 1,013 | 331 | 26 | 5,882 | 8 | ||||||||||||||||||||||
Financial institutions: | ||||||||||||||||||||||||||||||||
Investment grade | 409 | 159 | — | — | — | 97 | 8,582 | — | 9,247 | |||||||||||||||||||||||
Non-investment grade | 43 | 20 | — | — | — | — | 1,652 | — | 1,715 | |||||||||||||||||||||||
Total financial institutions | 452 | 179 | — | — | — | 97 | 10,234 | — | 10,962 | 14 | ||||||||||||||||||||||
Wealth management loans and mortgages:
|
||||||||||||||||||||||||||||||||
Investment grade | 7 | 16 | 77 | 5 | 150 | 171 | 8,070 | — | 8,496 | |||||||||||||||||||||||
Non-investment grade | — | — | — | — | — | — | 58 | — | 58 | |||||||||||||||||||||||
Wealth management mortgages | 437 | 1,089 | 982 | 616 | 1,113 | 3,750 | 42 | — | 8,029 | |||||||||||||||||||||||
Total wealth management loans and mortgages
|
444 | 1,105 | 1,059 | 621 | 1,263 | 3,921 | 8,170 | — | 16,583 | 27 | ||||||||||||||||||||||
Lease financings | 5 | 100 | 17 | 13 | 7 | 818 | — | — | 960 | — | ||||||||||||||||||||||
Other residential mortgages | — | — | — | — | — | 364 | — | — | 364 | 1 | ||||||||||||||||||||||
Other loans | — | — | — | — | — | — | 1,842 | — | 1,842 | 1 | ||||||||||||||||||||||
Margin loans | 3,265 | 2,800 | — | — | — | — | 11,828 | — | 17,893 | 8 | ||||||||||||||||||||||
Total loans | $ | 6,073 | $ | 4,863 | $ | 2,485 | $ | 1,248 | $ | 1,914 | $ | 6,270 | $ | 33,051 | $ | 26 | $ | 55,930 | $ | 60 |
Notes to Consolidated Financial Statements (continued)
|
||
Credit profile of the loan portfolio | Dec. 31, 2020 | |||||||||||||||||||||||||||||||
Revolving loans | ||||||||||||||||||||||||||||||||
Originated, at amortized cost | Amortized cost | Converted to term loans – Amortized cost |
Accrued
interest receivable |
|||||||||||||||||||||||||||||
(in millions) | 2020 | 2019 | 2018 | 2017 | 2016 | Prior to 2016 |
Total (a)
|
|||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||
Investment grade | $ | 128 | $ | 18 | $ | 71 | $ | 420 | $ | 57 | $ | — | $ | 493 | $ | — | $ | 1,187 | ||||||||||||||
Non-investment grade | 142 | — | 6 | — | — | — | 94 | — | 242 | |||||||||||||||||||||||
Total commercial | 270 | 18 | 77 | 420 | 57 | — | 587 | — | 1,429 | $ | 2 | |||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Investment grade | 778 | 1,010 | 458 | 543 | 312 | 346 | 127 | — | 3,574 | |||||||||||||||||||||||
Non-investment grade | 285 | 619 | 643 | 159 | 376 | 144 | 229 | 27 | 2,482 | |||||||||||||||||||||||
Total commercial real estate | 1,063 | 1,629 | 1,101 | 702 | 688 | 490 | 356 | 27 | 6,056 | 8 | ||||||||||||||||||||||
Financial institutions: | ||||||||||||||||||||||||||||||||
Investment grade | 132 | 146 | 47 | 125 | 13 | 156 | 8,760 | — | 9,379 | |||||||||||||||||||||||
Non-investment grade | 84 | 36 | — | — | — | — | 1,746 | — | 1,866 | |||||||||||||||||||||||
Total financial institutions | 216 | 182 | 47 | 125 | 13 | 156 | 10,506 | — | 11,245 | 12 | ||||||||||||||||||||||
Wealth management loans and mortgages: | ||||||||||||||||||||||||||||||||
Investment grade | 18 | 85 | 11 | 147 | 59 | 112 | 7,786 | — | 8,218 | |||||||||||||||||||||||
Non-investment grade | — | — | — | — | — | — | 54 | — | 54 | |||||||||||||||||||||||
Wealth management mortgages | 1,117 | 1,044 | 637 | 1,188 | 1,515 | 2,546 | 38 | — | 8,085 | |||||||||||||||||||||||
Total wealth management loans and mortgages | 1,135 | 1,129 | 648 | 1,335 | 1,574 | 2,658 | 7,878 | — | 16,357 | 27 | ||||||||||||||||||||||
Lease financings | 116 | 18 | 14 | 9 | 20 | 813 | — | — | 990 | — | ||||||||||||||||||||||
Other residential mortgages | — | — | — | — | — | 389 | — | — | 389 | 1 | ||||||||||||||||||||||
Other loans | — | — | — | — | — | — | 1,904 | — | 1,904 | 1 | ||||||||||||||||||||||
Margin loans | 4,614 | — | — | — | — | — | 10,802 | — | 15,416 | 8 | ||||||||||||||||||||||
Total loans | $ | 7,414 | $ | 2,976 | $ | 1,887 | $ | 2,591 | $ | 2,352 | $ | 4,506 | $ | 32,033 | $ | 27 | $ | 53,786 | $ | 59 |
Notes to Consolidated Financial Statements (continued)
|
||
Goodwill by business
(in millions)
|
Investment
Services |
Investment
and Wealth Management |
Other | Consolidated | ||||||||||
Balance at Dec. 31, 2020 | $ | 8,456 | $ | 9,040 | $ | — | $ | 17,496 | ||||||
Dispositions | — | (5) | — | (5) | ||||||||||
Foreign currency translation | (28) | 6 | — | (22) | ||||||||||
Balance at March 31, 2021 | $ | 8,428 | $ | 9,041 | $ | — | $ | 17,469 |
Notes to Consolidated Financial Statements (continued)
|
||
Goodwill by business
(in millions)
|
Investment
Services |
Investment
and Wealth Management |
Other | Consolidated | ||||||||||
Balance at Dec. 31, 2019 | $ | 8,332 | $ | 9,007 | $ | 47 | $ | 17,386 | ||||||
Foreign currency translation | (43) | (103) | — | (146) | ||||||||||
Other (a)
|
47 | — | (47) | — | ||||||||||
Balance at March 31, 2020 | $ | 8,336 | $ | 8,904 | $ | — | $ | 17,240 |
Intangible assets – net carrying amount by business
(in millions) |
Investment
Services |
Investment and Wealth Management | Other | Consolidated | ||||||||||
Balance at Dec. 31, 2020 | $ | 608 | $ | 1,555 | $ | 849 | $ | 3,012 | ||||||
Disposition | — | (6) | — | (6) | ||||||||||
Amortization | (17) | (7) | — | (24) | ||||||||||
Foreign currency translation | (1) | 2 | — | 1 | ||||||||||
Balance at March 31, 2021 | $ | 590 | $ | 1,544 | $ | 849 | $ | 2,983 |
Intangible assets | March 31, 2021 | Dec. 31, 2020 | ||||||||||||||||||||||||
(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—Investment Services | $ | 1,431 | $ | (1,212) | $ | 219 | 10 years | $ | 1,435 | $ | (1,199) | $ | 236 | |||||||||||||
Customer relationships—Investment and Wealth Management | 697 | (567) | 130 | 9 years | 705 | (564) | 141 | |||||||||||||||||||
Other | 59 | (17) | 42 | 14 years | 59 | (15) | 44 | |||||||||||||||||||
Total subject to amortization | 2,187 | (1,796) | 391 | 10 years | 2,199 | (1,778) | 421 | |||||||||||||||||||
Not subject to amortization: (b)
|
||||||||||||||||||||||||||
Tradename | 1,295 | N/A | 1,295 | N/A | 1,295 | N/A | 1,295 | |||||||||||||||||||
Customer relationships | 1,297 | N/A | 1,297 | N/A | 1,296 | N/A | 1,296 | |||||||||||||||||||
Total not subject to amortization | 2,592 | N/A | 2,592 | N/A | 2,591 | N/A | 2,591 | |||||||||||||||||||
Total intangible assets | $ | 4,779 | $ | (1,796) | $ | 2,983 | N/A | $ | 4,790 | $ | (1,778) | $ | 3,012 |
Notes to Consolidated Financial Statements (continued)
|
||
For the year ended
Dec. 31, |
Estimated amortization expense
(in millions)
|
|||||||
2021 | $ | 81 | ||||||
2022 | 63 | |||||||
2023 | 53 | |||||||
2024 | 45 | |||||||
2025 | 38 |
Other assets | March 31, 2021 | Dec. 31, 2020 | ||||||
(in millions) | ||||||||
Corporate/bank-owned life insurance | $ | 5,325 | $ | 5,301 | ||||
Accounts receivable | 4,390 | 3,619 | ||||||
Fails to deliver | 3,042 | 1,371 | ||||||
Software | 1,905 | 1,884 | ||||||
Prepaid pension assets | 1,602 | 1,556 | ||||||
Equity in a joint venture and other investments | 1,283 | 1,259 | ||||||
Renewable energy investments | 1,134 | 1,206 | ||||||
Qualified affordable housing project investments | 1,113 | 1,145 | ||||||
Income taxes receivable | 807 | 599 | ||||||
Prepaid expense | 540 | 477 | ||||||
Assets of consolidated investment management funds (a)
|
508 | 487 | ||||||
Federal Reserve Bank stock | 480 | 479 | ||||||
Seed capital | 263 | 215 | ||||||
Fair value of hedging derivatives | 85 | 19 | ||||||
Other (b)
|
1,375 | 1,338 | ||||||
Total other assets (a)
|
$ | 23,852 | $ | 20,955 |
Adjustments on non-readily marketable equity securities | Life-to-date | |||||||||||||||||||
(in millions) | 1Q21 | 4Q20 | 1Q20 | |||||||||||||||||
Upward adjustments | $ | — | $ | 11 | $ | 4 | $ | 53 | ||||||||||||
Downward adjustments | — | — | — | (4) | ||||||||||||||||
Net adjustments | $ | — | $ | 11 | $ | 4 | $ | 49 |
Notes to Consolidated Financial Statements (continued)
|
||
Investments valued using NAV | March 31, 2021 | Dec. 31, 2020 | |||||||||||||||||||||||||||||||||
(in millions) | Fair value |
Unfunded
commitments |
Fair value |
Unfunded
commitments |
|||||||||||||||||||||||||||||||
Seed capital (a)
|
$ | 53 | $ | 20 | $ | 52 | $ | 22 | |||||||||||||||||||||||||||
Private equity investments (SBICs) (b)
|
110 | 54 | 102 | 52 | |||||||||||||||||||||||||||||||
Other (c)
|
43 | — | 47 | — | |||||||||||||||||||||||||||||||
Total | $ | 206 | $ | 74 | $ | 201 | $ | 74 |
Notes to Consolidated Financial Statements (continued)
|
||
Disaggregation of contract revenue by business segment | ||||||||||||||||||||||||||||||||||||||||||||
Quarter ended | ||||||||||||||||||||||||||||||||||||||||||||
March 31, 2021 | Dec. 31, 2020 | March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||
(in millions) | IS | IWM | Other | Total | IS | IWM | Other | Total | IS | IWM | Other | Total | ||||||||||||||||||||||||||||||||
Fee and other revenue – contract revenue: | ||||||||||||||||||||||||||||||||||||||||||||
Investment services fees: | ||||||||||||||||||||||||||||||||||||||||||||
Asset servicing fees | $ | 1,175 | $ | 25 | $ | (18) | $ | 1,182 | $ | 1,115 | $ | 22 | $ | (14) | $ | 1,123 | $ | 1,127 | $ | 23 | $ | (11) | $ | 1,139 | ||||||||||||||||||||
Clearing services fees | 455 | — | — | 455 | 418 | — | — | 418 | 470 | — | — | 470 | ||||||||||||||||||||||||||||||||
Issuer services fees | 245 | — | — | 245 | 257 | — | — | 257 | 263 | — | — | 263 | ||||||||||||||||||||||||||||||||
Treasury services fees | 159 | — | 1 | 160 | 156 | — | 1 | 157 | 149 | — | — | 149 | ||||||||||||||||||||||||||||||||
Total investment services
fees
|
2,034 | 25 | (17) | 2,042 | 1,946 | 22 | (13) | 1,955 | 2,009 | 23 | (11) | 2,021 | ||||||||||||||||||||||||||||||||
Investment management and performance fees | 4 | 883 | (5) | 882 | 4 | 881 | (5) | 880 | 5 | 862 | (4) | 863 | ||||||||||||||||||||||||||||||||
Financing-related fees | 20 | — | — | 20 | 13 | — | — | 13 | 28 | — | — | 28 | ||||||||||||||||||||||||||||||||
Distribution and servicing | 1 | 28 | — | 29 | (1) | 29 | — | 28 | (12) | 43 | — | 31 | ||||||||||||||||||||||||||||||||
Investment and other income | 36 | (11) | — | 25 | 48 | (24) | — | 24 | 72 | (50) | — | 22 | ||||||||||||||||||||||||||||||||
Total fee and other revenue – contract revenue | 2,095 | 925 | (22) | 2,998 | 2,010 | 908 | (18) | 2,900 | 2,102 | 878 | (15) | 2,965 | ||||||||||||||||||||||||||||||||
Fee and other revenue – not in scope of Accounting Standards Codification (“ASC”) 606 (a)(b)
|
250 | 18 | (5) | 263 | 225 | 32 | 1 | 258 | 334 | (32) | 45 | 347 | ||||||||||||||||||||||||||||||||
Total fee and other revenue | $ | 2,345 | $ | 943 | $ | (27) | $ | 3,261 | $ | 2,235 | $ | 940 | $ | (17) | $ | 3,158 | $ | 2,436 | $ | 846 | $ | 30 | $ | 3,312 |
Notes to Consolidated Financial Statements (continued)
|
||
Net interest revenue | Quarter ended | |||||||||||||||||||
(in millions) | March 31, 2021 | Dec. 31, 2020 | March 31, 2020 | |||||||||||||||||
Interest revenue | ||||||||||||||||||||
Deposits with the Federal Reserve and other central banks | $ | (16) | $ | (13) | $ | 80 | ||||||||||||||
Deposits with banks | 14 | 16 | 58 | |||||||||||||||||
Federal funds sold and securities purchased under resale agreements | 32 | 40 | 396 | |||||||||||||||||
Margin loans | 45 | 43 | 87 | |||||||||||||||||
Non-margin loans | 185 | 193 | 309 | |||||||||||||||||
Securities: | ||||||||||||||||||||
Taxable | 450 | 469 | 594 | |||||||||||||||||
Exempt from federal income taxes | 9 | 9 | 6 | |||||||||||||||||
Total securities | 459 | 478 | 600 | |||||||||||||||||
Trading securities | 19 | 19 | 40 | |||||||||||||||||
Total interest revenue | 738 | 776 | 1,570 | |||||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | (37) | (33) | 240 | |||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | (3) | 1 | 275 | |||||||||||||||||
Trading liabilities | 3 | 4 | 7 | |||||||||||||||||
Other borrowed funds | 2 | 2 | 4 | |||||||||||||||||
Commercial paper | — | — | 6 | |||||||||||||||||
Customer payables | (1) | (1) | 30 | |||||||||||||||||
Long-term debt | 119 | 123 | 194 | |||||||||||||||||
Total interest expense | 83 | 96 | 756 | |||||||||||||||||
Net interest revenue | 655 | 680 | 814 | |||||||||||||||||
Provision for credit losses | (83) | 15 | 169 | |||||||||||||||||
Net interest revenue after provision for credit losses | $ | 738 | $ | 665 | $ | 645 |
Net periodic benefit (credit) cost
|
Quarter ended | ||||||||||||||||||||||||||||||||||
March 31, 2021 | March 31, 2020 | ||||||||||||||||||||||||||||||||||
(in millions) | Domestic pension benefits | Foreign pension benefits | Health care benefits | Domestic pension benefits | Foreign pension benefits | Health care benefits | |||||||||||||||||||||||||||||
Service cost | $ | — | $ | 4 | $ | — | $ | — | $ | 3 | $ | — | |||||||||||||||||||||||
Interest cost | 34 | 6 | 1 | 39 | 7 | 1 | |||||||||||||||||||||||||||||
Expected return on assets | (75) | (9) | (2) | (80) | (10) | (1) | |||||||||||||||||||||||||||||
Other | 25 | 4 | — | 22 | 3 | (1) | |||||||||||||||||||||||||||||
Net periodic benefit (credit) cost
|
$ | (16) | $ | 5 | $ | (1) | $ | (19) | $ | 3 | $ | (1) |
Notes to Consolidated Financial Statements (continued)
|
||
Consolidated investments | March 31, 2021 | Dec. 31, 2020 | |||||||||||||||||||||||||||
(in millions) |
Investment
Management funds |
Securitization |
Total
consolidated investments |
Investment
Management funds |
Securitization |
Total
consolidated investments |
|||||||||||||||||||||||
Trading assets | $ | 483 | $ | 400 | $ | 883 | $ | 482 | $ | 400 | $ | 882 | |||||||||||||||||
Other assets | 25 | — | 25 | 5 | — | 5 | |||||||||||||||||||||||
Total assets | $ | 508 | (a) | $ | 400 | $ | 908 | $ | 487 | (b) | $ | 400 | $ | 887 | |||||||||||||||
Other liabilities | $ | 10 | $ | 400 | $ | 410 | $ | 3 | $ | 400 | $ | 403 | |||||||||||||||||
Total liabilities | $ | 10 | (a) | $ | 400 | $ | 410 | $ | 3 | (b) | $ | 400 | $ | 403 | |||||||||||||||
Nonredeemable noncontrolling interests | $ | 262 | (a) | $ | — | $ | 262 | $ | 143 | (b) | $ | — | $ | 143 |
Notes to Consolidated Financial Statements (continued)
|
||
Preferred stock summary (a)
|
Total shares issued and outstanding |
Carrying value (b)
|
||||||||||||||||||
(in millions) | ||||||||||||||||||||
March 31, 2021 | Dec. 31, 2020 | March 31, 2021 | Dec. 31, 2020 | |||||||||||||||||
Per annum dividend rate | ||||||||||||||||||||
Series A |
Greater of (i) three-month LIBOR plus 0.565% for the related distribution period or (ii) 4.000%
|
5,001 | 5,001 | $ | 500 | $ | 500 | |||||||||||||
Series D |
4.500% to but excluding June 20, 2023, then a floating rate equal to the three-month LIBOR plus 2.46%
|
5,000 | 5,000 | 494 | 494 | |||||||||||||||
Series E |
4.950% to but excluding June 20, 2020, then a floating rate equal to the three-month LIBOR plus 3.42%
|
10,000 | 10,000 | 990 | 990 | |||||||||||||||
Series F |
4.625% to but excluding Sept. 20, 2026, then a floating rate equal to the three-month LIBOR plus 3.131%
|
10,000 | 10,000 | 990 | 990 | |||||||||||||||
Series G |
4.700% to but excluding Sept. 20, 2025, then a floating rate equal to the five-year treasury rate plus 4.358%
|
10,000 | 10,000 | 990 | 990 | |||||||||||||||
Series H |
3.700% to but excluding March 20, 2026, then a floating rate equal to the five-year treasury rate plus 3.352%
|
5,825 | 5,825 | 577 | 577 | |||||||||||||||
Total | 45,826 | 45,826 | $ | 4,541 | $ | 4,541 |
Preferred dividends paid | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions, except per share amounts) |
Depositary shares
per share |
1Q21 | 4Q20 | 1Q20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share |
Total
dividend |
Per share |
Total
dividend |
Per share |
Total
dividend |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A | 100 | (a) | $ | 1,011.11 | $ | 5 | $ | 1,011.11 | $ | 5 | $ | 1,011.11 | $ | 5 | |||||||||||||||||||||||||||||||||||||||||||||
Series C | 4,000 | N/A | N/A | 1,300.00 | 23 | (b) | 1,300.00 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Series D | 100 | N/A | — | 2,250.00 | 11 | N/A | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Series E | 100 | 924.82 | 9 | 921.98 | 9 | N/A | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Series F | 100 | 2,312.50 | 23 | N/A | — | 2,312.50 | 23 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Series G | 100 | 2,350.00 | 24 | N/A | — | N/A | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Series H | 100 | 1,408.06 | 8 | N/A | — | N/A | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 69 | $ | 48 | $ | 36 |
Notes to Consolidated Financial Statements (continued)
|
||
Components of other comprehensive income (loss) | Quarter ended | ||||||||||||||||||||||||||||||||||
March 31, 2021 | Dec. 31, 2020 | March 31, 2020 | |||||||||||||||||||||||||||||||||
(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)
|
$ | (127) | $ | (23) | $ | (150) | $ | 340 | $ | 91 | $ | 431 | $ | (265) | $ | (104) | $ | (369) | |||||||||||||||||
Total foreign currency translation | (127) | (23) | (150) | 340 | 91 | 431 | (265) | (104) | (369) | ||||||||||||||||||||||||||
Unrealized (loss) gain on assets available-for-sale: | |||||||||||||||||||||||||||||||||||
Unrealized (loss) gain arising during period | (926) | 223 | (703) | 44 | (11) | 33 | 243 | (60) | 183 | ||||||||||||||||||||||||||
Reclassification adjustment (b)
|
— | — | — | (6) | 1 | (5) | (9) | 2 | (7) | ||||||||||||||||||||||||||
Net unrealized (loss) gain on assets available-for-sale | (926) | 223 | (703) | 38 | (10) | 28 | 234 | (58) | 176 | ||||||||||||||||||||||||||
Defined benefit plans: | |||||||||||||||||||||||||||||||||||
Net (loss) arising during the period | — | — | — | (138) | 31 | (107) | — | — | — | ||||||||||||||||||||||||||
Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost (b)
|
28 | (6) | 22 | 23 | (3) | 20 | 24 | (6) | 18 | ||||||||||||||||||||||||||
Total defined benefit plans | 28 | (6) | 22 | (115) | 28 | (87) | 24 | (6) | 18 | ||||||||||||||||||||||||||
Unrealized (loss) gain on cash flow hedges: | |||||||||||||||||||||||||||||||||||
Unrealized hedge gain (loss) arising during period | 1 | — | 1 | 6 | (2) | 4 | (13) | 3 | (10) | ||||||||||||||||||||||||||
Reclassification of net loss (gain) to net income: | |||||||||||||||||||||||||||||||||||
FX contracts – staff expense | (5) | 1 | (4) | (1) | 1 | — | (1) | — | (1) | ||||||||||||||||||||||||||
Total reclassifications to net income | (5) | 1 | (4) | (1) | 1 | — | (1) | — | (1) | ||||||||||||||||||||||||||
Net unrealized (loss) gain on cash flow hedges | (4) | 1 | (3) | 5 | (1) | 4 | (14) | 3 | (11) | ||||||||||||||||||||||||||
Total other comprehensive (loss) income | $ | (1,029) | $ | 195 | $ | (834) | $ | 268 | $ | 108 | $ | 376 | $ | (21) | $ | (165) | $ | (186) |
Notes to Consolidated Financial Statements (continued)
|
||
Assets and liabilities measured at fair value on a recurring basis at March 31, 2021
|
Total carrying
value |
||||||||||||||||
(dollars in millions) | Level 1 | Level 2 | Level 3 |
Netting (a)
|
|||||||||||||
Assets:
|
|||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
U.S. Treasury | $ | 27,928 | $ | — | $ | — | $ | — | $ | 27,928 | |||||||
Agency RMBS | — | 19,846 | — | — | 19,846 | ||||||||||||
Sovereign debt/sovereign guaranteed | 5,941 | 7,619 | — | — | 13,560 | ||||||||||||
Agency commercial MBS | — | 9,216 | — | — | 9,216 | ||||||||||||
Supranational | — | 7,438 | — | — | 7,438 | ||||||||||||
Foreign covered bonds | — | 6,542 | — | — | 6,542 | ||||||||||||
CLOs | — | 4,754 | — | — | 4,754 | ||||||||||||
Non-agency commercial MBS | — | 2,959 | — | — | 2,959 | ||||||||||||
U.S. government agencies | — | 2,919 | — | — | 2,919 | ||||||||||||
Foreign government agencies | — | 2,698 | — | — | 2,698 | ||||||||||||
State and political subdivisions | — | 2,634 | — | — | 2,634 | ||||||||||||
Other ABS | — | 2,628 | — | — | 2,628 | ||||||||||||
Non-agency RMBS (b)
|
— | 2,451 | — | — | 2,451 | ||||||||||||
Corporate bonds | — | 2,238 | — | — | 2,238 | ||||||||||||
Other debt securities | — | 1 | — | — | 1 | ||||||||||||
Total available-for-sale securities | 33,869 | 73,943 | — | — | 107,812 | ||||||||||||
Trading assets: | |||||||||||||||||
Debt instruments | 2,777 | 3,225 | — | — | 6,002 | ||||||||||||
Equity instruments (c)
|
7,495 | — | — | — | 7,495 | ||||||||||||
Derivative assets not designated as hedging: | |||||||||||||||||
Interest rate | 6 | 3,344 | — | (1,496) | 1,854 | ||||||||||||
Foreign exchange | — | 6,940 | — | (5,418) | 1,522 | ||||||||||||
Equity and other contracts | 1 | 82 | — | (72) | 11 | ||||||||||||
Total derivative assets not designated as hedging | 7 | 10,366 | — | (6,986) | 3,387 | ||||||||||||
Total trading assets | 10,279 | 13,591 | — | (6,986) | 16,884 | ||||||||||||
Other assets: | |||||||||||||||||
Derivative assets designated as hedging: | |||||||||||||||||
Foreign exchange | — | 85 | — | — | 85 | ||||||||||||
Total derivative assets designated as hedging | — | 85 | — | — | 85 | ||||||||||||
Other assets (d)
|
453 | 415 | — | — | 868 | ||||||||||||
Assets measured at NAV (d)
|
206 | ||||||||||||||||
Total assets | $ | 44,601 | $ | 88,034 | $ | — | $ | (6,986) | $ | 125,855 | |||||||
Percentage of total assets prior to netting | 34 | % | 66 | % | — | % |
Liabilities:
|
|||||||||||||||||
Trading liabilities: | |||||||||||||||||
Debt instruments | $ | 2,010 | $ | 25 | $ | — | $ | — | $ | 2,035 | |||||||
Equity instruments | 52 | — | — | — | 52 | ||||||||||||
Derivative liabilities not designated as hedging: | |||||||||||||||||
Interest rate | 2 | 2,925 | — | (1,925) | 1,002 | ||||||||||||
Foreign exchange | — | 6,266 | — | (4,796) | 1,470 | ||||||||||||
Equity and other contracts | 1 | 22 | — | (16) | 7 | ||||||||||||
Total derivative liabilities not designated as hedging | 3 | 9,213 | — | (6,737) | 2,479 | ||||||||||||
Total trading liabilities | 2,065 | 9,238 | — | (6,737) | 4,566 | ||||||||||||
Long-term debt (c)
|
— | 400 | — | — | 400 | ||||||||||||
Other liabilities – derivative liabilities designated as hedging: | |||||||||||||||||
Interest rate | — | 282 | — | — | 282 | ||||||||||||
Foreign exchange | — | 149 | — | — | 149 | ||||||||||||
Total other liabilities – derivative liabilities designated as hedging | — | 431 | — | — | 431 | ||||||||||||
Other liabilities | 1 | 9 | — | — | 10 | ||||||||||||
Total liabilities | $ | 2,066 | $ | 10,078 | $ | — | $ | (6,737) | $ | 5,407 | |||||||
Percentage of total liabilities prior to netting | 17 | % | 83 | % | — | % |
Notes to Consolidated Financial Statements (continued)
|
||
Assets measured at fair value on a recurring basis at Dec. 31, 2020
|
Total carrying
value |
||||||||||||||||
(dollars in millions) | Level 1 | Level 2 | Level 3 |
Netting (a)
|
|||||||||||||
Assets:
|
|||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
U.S. Treasury | $ | 24,894 | $ | — | $ | — | $ | — | $ | 24,894 | |||||||
Agency RMBS | — | 22,347 | — | — | 22,347 | ||||||||||||
Sovereign debt/sovereign guaranteed | 5,909 | 6,482 | — | — | 12,391 | ||||||||||||
Agency commercial MBS | — | 9,228 | — | — | 9,228 | ||||||||||||
Supranational | — | 7,160 | — | — | 7,160 | ||||||||||||
Foreign covered bonds | — | 6,725 | — | — | 6,725 | ||||||||||||
CLOs | — | 4,703 | — | — | 4,703 | ||||||||||||
Foreign government agencies | — | 4,135 | — | — | 4,135 | ||||||||||||
U.S. government agencies | — | 3,853 | — | — | 3,853 | ||||||||||||
Other ABS | — | 3,164 | — | — | 3,164 | ||||||||||||
Non-agency commercial MBS | — | 3,017 | — | — | 3,017 | ||||||||||||
Non-agency RMBS (b)
|
— | 2,326 | — | — | 2,326 | ||||||||||||
State and political subdivisions | — | 2,308 | — | — | 2,308 | ||||||||||||
Corporate bonds | — | 1,994 | — | — | 1,994 | ||||||||||||
Commercial paper/CDs | — | 249 | — | — | 249 | ||||||||||||
Other debt securities | — | 1 | — | — | 1 | ||||||||||||
Total available-for-sale securities | 30,803 | 77,692 | — | — | 108,495 | ||||||||||||
Trading assets: | |||||||||||||||||
Debt instruments | 1,803 | 3,868 | — | — | 5,671 | ||||||||||||
Equity instruments (c)
|
5,775 | — | — | — | 5,775 | ||||||||||||
Derivative assets not designated as hedging: | |||||||||||||||||
Interest rate | 5 | 4,477 | — | (1,952) | 2,530 | ||||||||||||
Foreign exchange | — | 7,688 | — | (6,392) | 1,296 | ||||||||||||
Equity and other contracts | — | 2 | — | (2) | — | ||||||||||||
Total derivative assets not designated as hedging | 5 | 12,167 | — | (8,346) | 3,826 | ||||||||||||
Total trading assets | 7,583 | 16,035 | — | (8,346) | 15,272 | ||||||||||||
Other assets:
|
|||||||||||||||||
Derivative assets designated as hedging: | |||||||||||||||||
Foreign exchange | — | 19 | — | — | 19 | ||||||||||||
Total derivative assets designated as hedging | — | 19 | — | — | 19 | ||||||||||||
Other assets (d)(e)
|
504 | 285 | — | — | 789 | ||||||||||||
Assets measured at NAV (d)
|
201 | ||||||||||||||||
Total assets | $ | 38,890 | $ | 94,031 | $ | — | $ | (8,346) | $ | 124,776 | |||||||
Percentage of total assets prior to netting
|
29 | % | 71 | % | — | % |
Notes to Consolidated Financial Statements (continued)
|
||
Liabilities measured at fair value on a recurring basis at Dec. 31, 2020
|
Total carrying
value |
||||||||||||||||
(dollars in millions) | Level 1 | Level 2 | Level 3 |
Netting (a)
|
|||||||||||||
Liabilities:
|
|||||||||||||||||
Trading liabilities: | |||||||||||||||||
Debt instruments | $ | 2,287 | $ | 35 | $ | — | $ | — | $ | 2,322 | |||||||
Equity instruments | 11 | — | — | — | 11 | ||||||||||||
Derivative liabilities not designated as hedging: | |||||||||||||||||
Interest rate | 2 | 3,878 | — | (2,348) | 1,532 | ||||||||||||
Foreign exchange | — | 7,622 | — | (5,484) | 2,138 | ||||||||||||
Equity and other contracts | 7 | 34 | — | (13) | 28 | ||||||||||||
Total derivative liabilities not designated as hedging | 9 | 11,534 | — | (7,845) | 3,698 | ||||||||||||
Total trading liabilities | 2,307 | 11,569 | — | (7,845) | 6,031 | ||||||||||||
Long-term debt (c)
|
— | 400 | — | — | 400 | ||||||||||||
Other liabilities – derivative liabilities designated as hedging: | |||||||||||||||||
Interest rate | — | 666 | — | — | 666 | ||||||||||||
Foreign exchange | — | 441 | — | — | 441 | ||||||||||||
Total other liabilities – derivative liabilities designated as hedging | — | 1,107 | — | — | 1,107 | ||||||||||||
Other liabilities (e)
|
1 | 2 | — | — | 3 | ||||||||||||
Total liabilities | $ | 2,308 | $ | 13,078 | $ | — | $ | (7,845) | $ | 7,541 | |||||||
Percentage of total liabilities prior to netting | 15 | % | 85 | % | — | % |
Notes to Consolidated Financial Statements (continued)
|
||
Details of certain available-for-sale securities measured at fair value on a recurring basis
|
March 31, 2021 | Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||
Total
carrying value |
Ratings (a)
|
Total
carrying value |
Ratings (a)
|
||||||||||||||||||||||||||||||||||||||
AAA/
AA- |
A+/
A- |
BBB+/
BBB- |
BB+ and
lower |
AAA/
AA- |
A+/
A- |
BBB+/
BBB- |
BB+ and
lower |
||||||||||||||||||||||||||||||||||
(dollars in millions) | (b) | (b) | |||||||||||||||||||||||||||||||||||||||
Non-agency RMBS (c), originated in:
|
|||||||||||||||||||||||||||||||||||||||||
2008-2021 | $ | 1,727 | 100 | % | — | % | — | % | — | % | $ | 1,548 | 100 | % | — | % | — | % | — | % | |||||||||||||||||||||
2007 | 166 | 12 | 3 | — | 85 | 179 | 12 | 3 | — | 85 | |||||||||||||||||||||||||||||||
2006 | 223 | — | 23 | — | 77 | 237 | — | 23 | — | 77 | |||||||||||||||||||||||||||||||
2005 | 208 | 3 | — | 7 | 90 | 227 | 3 | — | 7 | 90 | |||||||||||||||||||||||||||||||
2004 and earlier | 127 | 18 | 9 | 6 | 67 | 135 | 19 | 10 | 11 | 60 | |||||||||||||||||||||||||||||||
Total non-agency RMBS | $ | 2,451 | 72 | % | 3 | % | 1 | % | 24 | % | $ | 2,326 | 69 | % | 3 | % | 1 | % | 27 | % | |||||||||||||||||||||
Non-agency commercial MBS originated in: | |||||||||||||||||||||||||||||||||||||||||
2009-2021 | $ | 2,959 | 99 | % | 1 | % | — | % | — | % | $ | 3,017 | 99 | % | 1 | % | — | % | — | % | |||||||||||||||||||||
Foreign covered bonds: | |||||||||||||||||||||||||||||||||||||||||
Canada | $ | 2,354 | 100 | % | — | % | — | % | — | % | $ | 2,552 | 100 | % | — | % | — | % | — | % | |||||||||||||||||||||
UK | 1,299 | 100 | — | — | — | 1,259 | 100 | — | — | — | |||||||||||||||||||||||||||||||
Australia | 900 | 100 | — | — | — | 951 | 100 | — | — | — | |||||||||||||||||||||||||||||||
Norway | 715 | 100 | — | — | — | 703 | 100 | — | — | — | |||||||||||||||||||||||||||||||
Germany | 500 | 100 | — | — | — | 494 | 100 | — | — | — | |||||||||||||||||||||||||||||||
Other | 774 | 100 | — | — | — | 766 | 100 | — | — | — | |||||||||||||||||||||||||||||||
Total foreign covered bonds | $ | 6,542 | 100 | % | — | % | — | % | — | % | $ | 6,725 | 100 | % | — | % | — | % | — | % | |||||||||||||||||||||
Sovereign debt/sovereign guaranteed: | |||||||||||||||||||||||||||||||||||||||||
Germany | $ | 3,504 | 100 | % | — | % | — | % | — | % | $ | 2,222 | 100 | % | — | % | — | % | — | % | |||||||||||||||||||||
Italy | 1,827 | — | — | 100 | — | 2,010 | — | — | 100 | — | |||||||||||||||||||||||||||||||
France | 1,826 | 100 | — | — | — | 1,697 | 100 | — | — | — | |||||||||||||||||||||||||||||||
Spain | 1,383 | — | 7 | 93 | — | 1,920 | — | 5 | 95 | — | |||||||||||||||||||||||||||||||
Singapore | 1,040 | 100 | — | — | — | 984 | 100 | — | — | — | |||||||||||||||||||||||||||||||
UK | 1,015 | 100 | — | — | — | 1,089 | 100 | — | — | — | |||||||||||||||||||||||||||||||
Canada | 660 | 100 | — | — | — | 572 | 100 | — | — | — | |||||||||||||||||||||||||||||||
Netherlands | 487 | 100 | — | — | — | 491 | 100 | — | — | — | |||||||||||||||||||||||||||||||
Hong Kong | 455 | 100 | — | — | — | 29 | 100 | — | — | — | |||||||||||||||||||||||||||||||
Japan | 429 | — | 100 | — | — | 408 | — | 100 | — | — | |||||||||||||||||||||||||||||||
Austria | 251 | 100 | — | — | — | 256 | 100 | — | — | — | |||||||||||||||||||||||||||||||
Ireland | 240 | — | 100 | — | — | 252 | — | 100 | — | — | |||||||||||||||||||||||||||||||
Other (d)
|
443 | 76 | — | — | 24 | 461 | 73 | — | — | 27 | |||||||||||||||||||||||||||||||
Total sovereign debt/sovereign guaranteed | $ | 13,560 | 71 | % | 5 | % | 23 | % | 1 | % | $ | 12,391 | 62 | % | 6 | % | 31 | % | 1 | % | |||||||||||||||||||||
Foreign government agencies: | |||||||||||||||||||||||||||||||||||||||||
Netherlands | $ | 796 | 100 | % | — | % | — | % | — | % | $ | 847 | 100 | % | — | % | — | % | — | % | |||||||||||||||||||||
Canada | 547 | 77 | 23 | — | — | 511 | 75 | 25 | — | — | |||||||||||||||||||||||||||||||
France | 310 | 100 | — | — | — | 305 | 100 | — | — | — | |||||||||||||||||||||||||||||||
Sweden | 305 | 100 | — | — | — | 281 | 100 | — | — | — | |||||||||||||||||||||||||||||||
Finland | 224 | 100 | — | — | — | 225 | 100 | — | — | — | |||||||||||||||||||||||||||||||
Germany | 49 | 100 | — | — | — | 1,473 | 100 | — | — | — | |||||||||||||||||||||||||||||||
Other | 467 | 79 | 21 | — | — | 493 | 80 | 20 | — | — | |||||||||||||||||||||||||||||||
Total foreign government agencies | $ | 2,698 | 92 | % | 8 | % | — | % | — | % | $ | 4,135 | 95 | % | 5 | % | — | % | — | % |
Notes to Consolidated Financial Statements (continued)
|
||
Assets measured at fair value on a nonrecurring basis
|
March 31, 2021 | Dec. 31, 2020 | ||||||||||||||||||||||||||||||
Total carrying
value |
Total carrying
value |
|||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Loans (a)
|
$ | — | $ | 47 | $ | — | $ | 47 | $ | — | $ | 48 | $ | — | $ | 48 | ||||||||||||||||
Other assets (b)(c)
|
— | 138 | 41 | 179 | — | 131 | — | 131 | ||||||||||||||||||||||||
Total assets at fair value on a nonrecurring basis | $ | — | $ | 185 | $ | 41 | $ | 226 | $ | — | $ | 179 | $ | — | $ | 179 |
Summary of financial instruments | March 31, 2021 | ||||||||||||||||
(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
|
$ | — | $ | 125,524 | $ | — | $ | 125,524 | $ | 125,524 | |||||||
Interest-bearing deposits with banks | — | 23,772 | — | 23,772 | 23,763 | ||||||||||||
Federal funds sold and securities purchased under resale agreements | — | 28,263 | — | 28,263 | 28,263 | ||||||||||||
Securities held-to-maturity | 4,039 | 44,450 | — | 48,489 | 48,032 | ||||||||||||
Loans (a)
|
— | 59,741 | — | 59,741 | 59,445 | ||||||||||||
Other financial assets | 5,991 | 1,142 | — | 7,133 | 7,133 | ||||||||||||
Total | $ | 10,030 | $ | 282,892 | $ | — | $ | 292,922 | $ | 292,160 | |||||||
Liabilities: | |||||||||||||||||
Noninterest-bearing deposits | $ | — | $ | 95,306 | $ | — | $ | 95,306 | $ | 95,306 | |||||||
Interest-bearing deposits | — | 240,778 | — | 240,778 | 241,462 | ||||||||||||
Federal funds purchased and securities sold under repurchase agreements | — | 15,150 | — | 15,150 | 15,150 | ||||||||||||
Payables to customers and broker-dealers | — | 23,827 | — | 23,827 | 23,827 | ||||||||||||
Borrowings | — | 518 | — | 518 | 518 | ||||||||||||
Long-term debt | — | 26,107 | — | 26,107 | 24,950 | ||||||||||||
Total | $ | — | $ | 401,686 | $ | — | $ | 401,686 | $ | 401,213 |
Notes to Consolidated Financial Statements (continued)
|
||
Summary of financial instruments | Dec. 31, 2020 | ||||||||||||||||
(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
|
$ | — | $ | 141,775 | $ | — | $ | 141,775 | $ | 141,775 | |||||||
Interest-bearing deposits with banks | — | 17,310 | — | 17,310 | 17,300 | ||||||||||||
Federal funds sold and securities purchased under resale agreements | — | 30,907 | — | 30,907 | 30,907 | ||||||||||||
Securities held-to-maturity | 4,120 | 45,104 | — | 49,224 | 47,946 | ||||||||||||
Loans (a)
|
— | 53,586 | — | 53,586 | 55,121 | ||||||||||||
Other financial assets | 6,252 | 1,160 | — | 7,412 | 7,412 | ||||||||||||
Total | $ | 10,372 | $ | 289,842 | $ | — | $ | 300,214 | $ | 300,461 | |||||||
Liabilities: | |||||||||||||||||
Noninterest-bearing deposits | $ | — | $ | 83,854 | $ | — | $ | 83,854 | $ | 83,854 | |||||||
Interest-bearing deposits | — | 257,287 | — | 257,287 | 257,691 | ||||||||||||
Federal funds purchased and securities sold under repurchase agreements | — | 11,305 | — | 11,305 | 11,305 | ||||||||||||
Payables to customers and broker-dealers | — | 25,085 | — | 25,085 | 25,085 | ||||||||||||
Borrowings | — | 563 | — | 563 | 563 | ||||||||||||
Long-term debt | — | 27,306 | — | 27,306 | 25,584 | ||||||||||||
Total | $ | — | $ | 405,400 | $ | — | $ | 405,400 | $ | 404,082 |
Assets and liabilities of consolidated investment
management funds, at fair value
|
||||||||
March 31, 2021 | Dec. 31, 2020 | |||||||
(in millions) | ||||||||
Assets of consolidated investment management funds: | ||||||||
Trading assets | $ | 483 | $ | 482 | ||||
Other assets | 25 | 5 | ||||||
Total assets of consolidated investment management funds | $ | 508 | $ | 487 | ||||
Liabilities of consolidated investment management funds: | ||||||||
Other liabilities | 10 | 3 | ||||||
Total liabilities of consolidated investment management funds | $ | 10 | $ | 3 |
Change in fair value of long-term debt (a)
|
||||||||||||||||||||
(in millions) | 1Q21 | 4Q20 | 1Q20 | |||||||||||||||||
Investment and other income – other trading revenue
|
$ | — | $ | — | $ | (10) |
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) |
1Q21 | 4Q20 | 1Q20 | |||||||||||||||||||
Interest rate fair value hedges of available-for-sale securities | |||||||||||||||||||||||
Derivative | Interest revenue | $ | 791 | $ | 237 | $ | (1,033) | ||||||||||||||||
Hedged item | Interest revenue | (785) | (232) | 1,011 | |||||||||||||||||||
Interest rate fair value hedges of long-term debt | |||||||||||||||||||||||
Derivative | Interest expense | (353) | (106) | 714 | |||||||||||||||||||
Hedged item | Interest expense | 351 | 105 | (708) | |||||||||||||||||||
Foreign exchange fair value hedges of available-for-sale securities | |||||||||||||||||||||||
Derivative (a)
|
Foreign exchange revenue | 8 | 2 | (7) | |||||||||||||||||||
Hedged item | Foreign exchange revenue | (7) | (2) | 7 | |||||||||||||||||||
Cash flow hedges of forecasted FX exposures | |||||||||||||||||||||||
Gain reclassified from OCI into income | Staff expense | 5 | 1 | 1 | |||||||||||||||||||
Gain (loss) recognized in the consolidated income statement due to fair value and cash flow hedging relationships | $ | 10 | $ | 5 | $ | (15) |
Hedged items in fair value hedging relationships |
Carrying amount of hedged
asset or liability |
Hedge accounting basis adjustment increase (decrease) (a)
|
|||||||||||||||
(in millions) | March 31, 2021 | Dec. 31, 2020 | March 31, 2021 | Dec. 31, 2020 | |||||||||||||
Available-for-sale securities (b)(c)
|
$ | 20,571 | $ | 17,536 | $ | 634 | $ | 1,428 | |||||||||
Long-term debt | $ | 15,635 | $ | 14,784 | $ | 450 | $ | 783 |
Notes to Consolidated Financial Statements (continued)
|
||
Impact of derivative instruments on the balance sheet | Notional value |
Asset derivatives
fair value |
Liability derivatives
fair value |
|||||||||||||||||||||||
March 31, 2021 | Dec. 31, 2020 | March 31, 2021 | Dec. 31, 2020 | March 31, 2021 | Dec. 31, 2020 | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Derivatives designated as hedging instruments: (a)(b)
|
||||||||||||||||||||||||||
Interest rate contracts | $ | 35,689 | $ | 31,360 | $ | — | $ | — | $ | 282 | $ | 666 | ||||||||||||||
Foreign exchange contracts | 8,803 | 8,706 | 85 | 19 | 149 | 441 | ||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 85 | $ | 19 | $ | 431 | $ | 1,107 | ||||||||||||||||||
Derivatives not designated as hedging instruments: (b)(c)
|
||||||||||||||||||||||||||
Interest rate contracts | $ | 221,043 | $ | 198,865 | $ | 3,350 | $ | 4,482 | $ | 2,927 | $ | 3,880 | ||||||||||||||
Foreign exchange contracts | 913,156 | 813,003 | 6,940 | 7,688 | 6,266 | 7,622 | ||||||||||||||||||||
Equity contracts | 6,709 | 5,142 | 83 | 2 | 19 | 37 | ||||||||||||||||||||
Credit contracts | 165 | 165 | — | — | 4 | 4 | ||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 10,373 | $ | 12,172 | $ | 9,216 | $ | 11,543 | ||||||||||||||||||
Total derivatives fair value (d)
|
$ | 10,458 | $ | 12,191 | $ | 9,647 | $ | 12,650 | ||||||||||||||||||
Effect of master netting agreements (e)
|
(6,986) | (8,346) | (6,737) | (7,845) | ||||||||||||||||||||||
Fair value after effect of master netting agreements | $ | 3,472 | $ | 3,845 | $ | 2,910 | $ | 4,805 |
Foreign exchange revenue and other trading revenue | ||||||||||||||||||||
(in millions) | 1Q21 | 4Q20 | 1Q20 | |||||||||||||||||
Foreign exchange revenue (a)
|
$ | 231 | $ | 187 | $ | 245 | ||||||||||||||
Other trading (loss) revenue (a)
|
(7) | (31) | 66 | |||||||||||||||||
Notes to Consolidated Financial Statements (continued)
|
||
March 31, 2021 | Dec. 31, 2020 | |||||||
(in millions) | ||||||||
Aggregate fair value of OTC derivatives in net liability positions (a)
|
$ | 3,785 | $ | 5,235 | ||||
Collateral posted | $ | 4,325 | $ | 5,568 |
Potential close-out exposures (fair value) (a)
|
||||||||
March 31, 2021 | Dec. 31, 2020 | |||||||
(in millions) | ||||||||
If The Bank of New York Mellon’s rating changed to: (b)
|
||||||||
A3/A- | $ | 73 | $ | 79 | ||||
Baa2/BBB | $ | 333 | $ | 813 | ||||
Ba1/BB+ | $ | 1,829 | $ | 2,859 |
Notes to Consolidated Financial Statements (continued)
|
||
Notes to Consolidated Financial Statements (continued)
|
||
Offsetting of derivative liabilities and financial liabilities at March 31, 2021 | 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 | $ | 3,168 | $ | 1,925 | $ | 1,243 | $ | 1,168 | $ | — | $ | 75 | |||||||||||
Foreign exchange contracts | 5,810 | 4,796 | 1,014 | 173 | — | 841 | |||||||||||||||||
Equity and other contracts | 19 | 16 | 3 | — | — | 3 | |||||||||||||||||
Total derivatives subject to netting arrangements
|
8,997 | 6,737 | 2,260 | 1,341 | — | 919 | |||||||||||||||||
Total derivatives not subject to netting arrangements
|
650 | — | 650 | — | — | 650 | |||||||||||||||||
Total derivatives | 9,647 | 6,737 | 2,910 | 1,341 | — | 1,569 | |||||||||||||||||
Repurchase agreements | 47,516 | 33,544 | (b) | 13,972 | 13,968 | 1 | 3 | ||||||||||||||||
Securities lending | 1,178 | — | 1,178 | 1,153 | — | 25 | |||||||||||||||||
Total | $ | 58,341 | $ | 40,281 | $ | 18,060 | $ | 16,462 | $ | 1 | $ | 1,597 |
Offsetting of derivative liabilities and financial liabilities at Dec. 31, 2020 |
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 | $ | 4,533 | $ | 2,348 | $ | 2,185 | $ | 2,115 | $ | — | $ | 70 | |||||||||||
Foreign exchange contracts | 7,280 | 5,484 | 1,796 | 143 | — | 1,653 | |||||||||||||||||
Equity and other contracts | 37 | 13 | 24 | 7 | — | 17 | |||||||||||||||||
Total derivatives subject to netting arrangements
|
11,850 | 7,845 | 4,005 | 2,265 | — | 1,740 | |||||||||||||||||
Total derivatives not subject to netting arrangements
|
800 | — | 800 | — | — | 800 | |||||||||||||||||
Total derivatives | 12,650 | 7,845 | 4,805 | 2,265 | — | 2,540 | |||||||||||||||||
Repurchase agreements | 69,831 | 59,561 | (b) | 10,270 | 10,270 | — | — | ||||||||||||||||
Securities lending | 1,035 | — | 1,035 | 983 | — | 52 | |||||||||||||||||
Total | $ | 83,516 | $ | 67,406 | $ | 16,110 | $ | 13,518 | $ | — | $ | 2,592 |
Notes to Consolidated Financial Statements (continued)
|
||
Repurchase agreements and securities lending transactions accounted for as secured borrowings | |||||||||||||||||||||||||||||
March 31, 2021 | Dec. 31, 2020 | ||||||||||||||||||||||||||||
Remaining contractual maturity | Total | Remaining contractual maturity | Total | ||||||||||||||||||||||||||
(in millions) | Overnight and continuous | Up to 30 days | 30 days or more | Overnight and continuous | Up to 30 days | 30 days or more | |||||||||||||||||||||||
Repurchase agreements: | |||||||||||||||||||||||||||||
U.S. Treasury | $ | 38,425 | $ | 46 | $ | — | $ | 38,471 | $ | 62,381 | $ | — | $ | — | $ | 62,381 | |||||||||||||
Agency RMBS | 2,518 | — | 2 | 2,520 | 3,117 | — | 80 | 3,197 | |||||||||||||||||||||
Corporate bonds | 243 | 131 | 1,555 | 1,929 | 190 | 218 | 1,436 | 1,844 | |||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 74 | — | 1,879 | 1,953 | — | — | — | — | |||||||||||||||||||||
State and political subdivisions | 31 | 70 | 780 | 881 | 66 | 40 | 864 | 970 | |||||||||||||||||||||
U.S. government agencies | 632 | — | — | 632 | 425 | — | — | 425 | |||||||||||||||||||||
Other debt securities | 23 | 48 | 92 | 163 | 7 | 21 | 138 | 166 | |||||||||||||||||||||
Equity securities | — | 51 | 916 | 967 | — | 21 | 827 | 848 | |||||||||||||||||||||
Total | $ | 41,946 | $ | 346 | $ | 5,224 | $ | 47,516 | $ | 66,186 | $ | 300 | $ | 3,345 | $ | 69,831 | |||||||||||||
Securities lending: | |||||||||||||||||||||||||||||
Agency RMBS | $ | 172 | $ | — | $ | — | $ | 172 | $ | 161 | $ | — | $ | — | $ | 161 | |||||||||||||
Other debt securities | 68 | — | — | 68 | 52 | — | — | 52 | |||||||||||||||||||||
Equity securities | 938 | — | — | 938 | 822 | — | — | 822 | |||||||||||||||||||||
Total | $ | 1,178 | $ | — | $ | — | $ | 1,178 | $ | 1,035 | $ | — | $ | — | $ | 1,035 | |||||||||||||
Total secured borrowings | $ | 43,124 | $ | 346 | $ | 5,224 | $ | 48,694 | $ | 67,221 | $ | 300 | $ | 3,345 | $ | 70,866 |
Notes to Consolidated Financial Statements (continued)
|
||
Off-balance sheet credit risks | March 31, 2021 | Dec. 31, 2020 | ||||||
(in millions) | ||||||||
Lending commitments | $ | 47,758 | $ | 47,577 | ||||
Standby letters of credit (“SBLC”) (a)
|
2,295 | 2,265 | ||||||
Commercial letters of credit | 51 | 60 | ||||||
Securities lending
indemnifications (b)(c)
|
479,719 | 469,121 |
Standby letters of credit | March 31, 2021 | Dec. 31, 2020 | ||||||
Investment grade | 84 | % | 82 | % | ||||
Non-investment grade | 16 | % | 18 | % |
Notes to Consolidated Financial Statements (continued)
|
||
Financial institutions
portfolio exposure
(in billions)
|
March 31, 2021 | ||||||||||
Loans |
Unfunded
commitments |
Total exposure | |||||||||
Securities industry | $ | 2.3 | $ | 21.3 | $ | 23.6 | |||||
Asset managers | 1.4 | 6.5 | 7.9 | ||||||||
Banks | 6.4 | 1.1 | 7.5 | ||||||||
Insurance | 0.1 | 3.0 | 3.1 | ||||||||
Government | 0.1 | 0.2 | 0.3 | ||||||||
Other | 0.7 | 0.7 | 1.4 | ||||||||
Total | $ | 11.0 | $ | 32.8 | $ | 43.8 |
Commercial portfolio
exposure
(in billions)
|
March 31, 2021 | ||||||||||
Loans |
Unfunded
commitments |
Total exposure | |||||||||
Manufacturing | $ | 0.4 | $ | 4.0 | $ | 4.4 | |||||
Energy and utilities | 0.3 | 4.0 | 4.3 | ||||||||
Services and other | 0.7 | 3.5 | 4.2 | ||||||||
Media and telecom | — | 0.8 | 0.8 | ||||||||
Total | $ | 1.4 | $ | 12.3 | $ | 13.7 |
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 March 31, 2021 |
Investment
Services |
Investment
and Wealth Management |
Other | Consolidated | ||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||
Total fee and other revenue (loss) | $ | 2,345 | $ | 943 | (a) | $ | (27) | $ | 3,261 | (a) | ||||||||||||||||
Net interest revenue (expense) | 645 | 48 | (38) | 655 | ||||||||||||||||||||||
Total revenue (loss) | 2,990 | 991 | (a) | (65) | 3,916 | (a) | ||||||||||||||||||||
Provision for credit losses | (79) | 4 | (8) | (83) | ||||||||||||||||||||||
Noninterest expense | 2,101 | 709 | 41 | 2,851 | ||||||||||||||||||||||
Income (loss) before income taxes | $ | 968 | $ | 278 | (a) | $ | (98) | $ | 1,148 | (a) | ||||||||||||||||
Pre-tax operating margin (b)
|
32 | % | 28 | % | N/M | 29 | % | |||||||||||||||||||
Average assets | $ | 385,054 | $ | 32,066 | $ | 43,259 | $ | 460,379 |
Notes to Consolidated Financial Statements (continued)
|
||
For the quarter ended Dec. 31, 2020 |
Investment
Services |
Investment
and Wealth Management |
Other | Consolidated | ||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||
Total fee and other revenue (loss) | $ | 2,235 | $ | 940 | (a) | $ | (17) | $ | 3,158 | (a) | ||||||||||||||||
Net interest revenue (expense) | 670 | 50 | (40) | 680 | ||||||||||||||||||||||
Total revenue (loss) | 2,905 | 990 | (a) | (57) | 3,838 | (a) | ||||||||||||||||||||
Provision for credit losses | 31 | (8) | (8) | 15 | ||||||||||||||||||||||
Noninterest expense | 2,174 | 687 | 64 | 2,925 | ||||||||||||||||||||||
Income (loss) before income taxes | $ | 700 | $ | 311 | (a) | $ | (113) | $ | 898 | (a) | ||||||||||||||||
Pre-tax operating margin (b)
|
24 | % | 32 | % | N/M | 24 | % | |||||||||||||||||||
Average assets | $ | 358,270 | $ | 30,804 | $ | 48,414 | $ | 437,488 |
For the quarter ended March 31, 2020 |
Investment
Services |
Investment
and Wealth Management |
Other | Consolidated | ||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||
Total fee and other revenue | $ | 2,436 | $ | 846 | (a) | $ | 30 | $ | 3,312 | (a) | ||||||||||||||||
Net interest revenue (expense) | 806 | 52 | (44) | 814 | ||||||||||||||||||||||
Total revenue (loss) | 3,242 | 898 | (a) | (14) | 4,126 | (a) | ||||||||||||||||||||
Provision for credit losses | 149 | 9 | 11 | 169 | ||||||||||||||||||||||
Noninterest expense | 1,987 | 695 | 30 | 2,712 | ||||||||||||||||||||||
Income (loss) before income taxes | $ | 1,106 | $ | 194 | (a) | $ | (55) | $ | 1,245 | (a) | ||||||||||||||||
Pre-tax operating margin (b)
|
34 | % | 22 | % | N/M | 30 | % | |||||||||||||||||||
Average assets | $ | 304,089 | $ | 30,543 | $ | 50,646 | $ | 385,278 |
Non-cash investing and financing transactions | Three months ended March 31, | |||||||||||||||||||
(in millions) | 2021 | 2020 | ||||||||||||||||||
Transfers from loans to other assets for other real estate owned | $ | 1 | $ | — | ||||||||||||||||
Change in assets of consolidated investment management funds | 21 | 16 | ||||||||||||||||||
Change in liabilities of consolidated investment management funds | 7 | — | ||||||||||||||||||
Change in nonredeemable noncontrolling interests of consolidated investment management funds | 119 | 8 | ||||||||||||||||||
Securities purchased not settled | 413 | 1,667 | ||||||||||||||||||
Securities sold not settled | 443 | — | ||||||||||||||||||
Securities matured not settled | — | 9 | ||||||||||||||||||
Premises and equipment/operating lease obligations | 24 | 15 | ||||||||||||||||||
Investment redemptions not settled | — | 37 |
Item 4. Controls and Procedures | ||
Forward-looking Statements
|
||
Forward-looking Statements (continued)
|
||
Part II – Other Information
|
||
Share repurchases – first quarter of 2021
|
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 March 31, 2021
|
||||||||||||||||||||||||
(dollars in millions, except per share amounts; common shares in thousands) |
Total shares
repurchased |
Average price
per share |
||||||||||||||||||||||||
January 2021 | 8,608 | $ | 41.12 | 8,608 | $ | 4,095 | ||||||||||||||||||||
February 2021 | 8,142 | 42.27 | 8,142 | 3,751 | ||||||||||||||||||||||
March 2021 | 16 | 43.46 | 16 | 3,751 | ||||||||||||||||||||||
First quarter of 2021 (a)
|
16,766 | $ | 41.68 | 16,766 | $ | 3,751 |
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 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 E Noncumulative Perpetual Preferred Stock, dated April 27, 2015.
|
|||||||||||||
3.6 | 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. | |||||||||||||
3.7 | 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. | |||||||||||||
3.8 | 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. | |||||||||||||
3.9 | Amended and Restated By-Laws of The Bank of New York Mellon Corporation, as amended and restated on Feb. 12, 2018. |
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 March 31, 2021. 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 Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, 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: May 6, 2021 | By: | /s/ Kurtis R. Kurimsky | |||||||||
Kurtis R. Kurimsky | |||||||||||
Corporate Controller | |||||||||||
(Duly Authorized Officer and | |||||||||||
Principal Accounting Officer of | |||||||||||
the Registrant) |
Issuer | Securities | Guarantor | ||||||||||||
Mellon Capital IV, a 100% owned finance subsidiary of The Bank of New York Mellon Corporation (the “Parent”)
|
6.244% Fixed-to-Floating Rate Normal Preferred Capital Securities (the “Normal Preferred Capital Securities”)
|
The Parent’s obligations under the trust and other agreements relating to Mellon Capital IV have the effect of providing a full and unconditional guarantee, on a subordinated basis, of payments due on the Normal Preferred Capital Securities. No other subsidiary of the Parent guarantees the securities of Mellon Capital IV.
|
/s/ Thomas P. Gibbons | |||||
Name: Thomas P. Gibbons | |||||
Title: Chief Executive Officer |
/s/ Emily Portney | |||||
Name: Emily Portney | |||||
Title: Chief Financial Officer |
Dated: May 6, 2021 | /s/ Thomas P. Gibbons | |||||||||||||
Name: | Thomas P. Gibbons | |||||||||||||
Title: | Chief Executive Officer |
Dated: May 6, 2021 | /s/ Emily Portney | |||||||||||||
Name: | Emily Portney | |||||||||||||
Title: | Chief Financial Officer |