Delaware | 13-2614959 | ||||
(State or other jurisdiction of | (I.R.S. Employer | ||||
incorporation or organization) | 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) | ||||||||
Securities registered pursuant to Section 12(g) of the Act: | ||||||||
None |
PART I | ||
PART II | ||
PART III | ||
Name | Age | Positions and offices | ||||||
Jolen Anderson | 43 | Ms. Anderson has served as Senior Executive Vice President and Global Head of Human Resources of BNY Mellon since September 2019. From 2014 to September 2019, Ms. Anderson served as Senior Vice President, Chief Diversity Officer and Chief Counsel, Employment and Social Responsibility, for Visa Inc. | ||||||
Bridget E. Engle | 58 | Ms. Engle has served as Senior Executive Vice President and Head of Operations and Technology of BNY Mellon since August 2020 and served as Senior Executive Vice President and Chief Information Officer from June 2017 to August 2020. From April 2015 to March 2017, Ms. Engle served as Bank of America Corporation’s Chief Information Officer for Global Commercial Banking and Markets Technology. | ||||||
Thomas P. (Todd) Gibbons | 65 | Mr. Gibbons has served as Chief Executive Officer of BNY Mellon since March 2020 and as interim Chief Executive Officer from September 2019 until March 2020. He was previously Vice Chairman and Chief Executive Officer of Clearing, Markets and Client Management of BNY Mellon from January 2018 to September 2019 and Vice Chairman and Chief Financial Officer of BNY Mellon from July 2008 to January 2018. | ||||||
Hani A. Kablawi | 53 | Mr. Kablawi has served as Senior Executive Vice President and Chairman of International of BNY Mellon since January 2020 and was Senior Executive Vice President and Chairman of EMEA and Chief Executive Officer of Global Asset Servicing from January 2018 to January 2020 and Chief Executive Officer of EMEA Investment Services from July 2016 to January 2018. | ||||||
Catherine Keating | 60 | Ms. Keating has served as Senior Executive Vice President and Chief Executive Officer of Wealth Management at BNY Mellon since July 2018. From February 2015 to June 2018, Ms. Keating was the Chief Executive Officer of Commonfund. | ||||||
Name | Age | Positions and offices | ||||||
Senthil Kumar | 56 | Mr. Kumar has served as Senior Executive Vice President and Chief Risk Officer of BNY Mellon since July 2019. Mr. Kumar served as Chief Risk Officer of the Institutional Clients Group at Citigroup Inc. from April 2014 to June 2019. | ||||||
Kurtis R. Kurimsky | 48 | Mr. Kurimsky has served as Vice President and Controller of BNY Mellon since July 2015. | ||||||
Francis (Frank) La Salla | 58 | Mr. La Salla has served as Senior Executive Vice President and Chief Executive Officer of Issuer Services of BNY Mellon since January 2018 and was Chief Executive Officer of Corporate Trust from May 2017 to January 2018. Mr. La Salla previously served as Chief Executive Officer of Global Structured Products and Alternative Investment Services from March 2014 to May 2017. | ||||||
Jeffrey Landau | 59 | Mr. Landau has served as Senior Executive Vice President and Global Head of Enterprise Initiatives at BNY Mellon since April 2021. Mr. Landau served as Executive Vice President and Chief Lending Officer from March 2012 until March 2021. | ||||||
J. Kevin McCarthy | 57 | Mr. McCarthy has served as Senior Executive Vice President and General Counsel of BNY Mellon since April 2014. | ||||||
Emily Portney | 50 | Ms. Portney has served as Senior Executive Vice President and Chief Financial Officer of BNY Mellon since July 2020 and served as Global Head of Asset Servicing client management, sales and service and Head of the Americas region from October 2018 to July 2020. Ms. Portney was the Chief Financial Officer of Barclays International from September 2016 to May 2018. | ||||||
Roman Regelman | 50 | Mr. Regelman has served as Senior Executive Vice President, Chief Executive Officer of Asset Servicing and Head of Digital of BNY Mellon since January 2020 and served as Senior Executive Vice President and Head of Digital from September 2018 to January 2020. From 2011 to December 2017, Mr. Regelman was partner, managing director and co-leader of the financial institutions digital business at Boston Consulting Group. | ||||||
Akash Shah | 36 | Mr. Shah has served as Senior Executive Vice President and Chief Growth Officer at BNY Mellon since July 2021. Mr. Shah served as Senior Executive Vice President and Head of Strategy and Global Client Management from January 2020 until July 2021 and as Senior Executive Vice President and Head of Strategy from July 2018 to December 2019. From 2006 to July 2018, Mr. Shah worked at McKinsey & Company, most recently as a partner and co-head of the Capital Markets & Investment Banking practice. | ||||||
Hanneke Smits | 55 | Ms. Smits has served as Senior Executive Vice President and Chief Executive Officer of Investment Management at BNY Mellon since October 2020 and served as the Chief Executive Officer of Newton Investment Management from August 2016 to September 2020. | ||||||
Robin Vince | 50 | Mr. Vince has served as Vice Chair and Chief Executive Officer of Global Market Infrastructure at BNY Mellon since October 2020. Previously, Mr. Vince was a Senior Director at Goldman Sachs Group Inc. from January 2020 to September 2020 and a Participating Managing Director at Goldman Sachs Group Inc. from 2006 to 2019. | ||||||
PART IV | ||
(1)(2) | Financial Statements and Schedules | Page No. | ||||||
Consolidated Income Statement | 113-114 | |||||||
Consolidated Comprehensive Income Statement | 115 | |||||||
Consolidated Balance Sheet | 116 | |||||||
Consolidated Statement of Cash Flows | 117 | |||||||
Consolidated Statement of Changes in Equity | 118-120 | |||||||
Notes to Consolidated Financial Statements | 121-197 | |||||||
Report of Independent Registered Public Accounting Firm | 198 | |||||||
(3) | Exhibits | |||||||
See (b) below. |
INDEX TO EXHIBITS | ||
Exhibit | Description | Method of Filing | |||||||||||||||
3.1 | Restated Certificate of Incorporation of The Bank of New York Mellon Corporation. | ||||||||||||||||
3.2 | Certificate of Amendment to The Bank of New York Mellon Corporation’s Restated Certificate of Incorporation, as filed with the Secretary of State of the State of Delaware on April 9, 2019. | ||||||||||||||||
3.3 | Certificate of Designations of The Bank of New York Mellon Corporation with respect to the Series A Noncumulative Preferred Stock, dated June 15, 2007. | ||||||||||||||||
3.4 | Certificate of Designations of The Bank of New York Mellon Corporation with respect to the Series D Noncumulative Perpetual Preferred Stock, dated May 16, 2013. | ||||||||||||||||
3.5 | Certificate of Designations of The Bank of New York Mellon Corporation with respect to the Series F Noncumulative Perpetual Preferred Stock, dated July 29, 2016. | ||||||||||||||||
3.6 | Certificate of Designations of The Bank of New York Mellon Corporation with respect to the Series G Noncumulative Perpetual Preferred Stock, dated May 15, 2020. | ||||||||||||||||
3.7 | Certificate of Designations of The Bank of New York Mellon Corporation with respect to the Series H Noncumulative Perpetual Preferred Stock, dated Nov. 2, 2020. |
INDEX TO EXHIBITS (continued) | ||
Exhibit | Description | Method of Filing | |||||||||||||||
3.8 | Certificate of Designations of The Bank of New York Mellon Corporation with respect to the Series I Noncumulative Perpetual Preferred Stock, dated Nov. 8, 2021. | ||||||||||||||||
3.9 | Amended and Restated By-Laws of The Bank of New York Mellon Corporation, as amended and restated on Feb. 12, 2018. | ||||||||||||||||
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 Dec. 31, 2021. The Company hereby agrees to furnish to the Commission, upon request, a copy of any such instrument. | N/A | |||||||||||||||
4.2 | Description of the Company’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934. | ||||||||||||||||
10.1 | * | The Bank of New York Company, Inc. Excess Benefit Plan as amended through Dec. 8, 1992. | Previously filed as Exhibit 10(d) to The Bank of New York Company, Inc.’s Annual Report on Form 10-K (File No. 001-06152) for the year ended Dec. 31, 1992, and incorporated herein by reference. | ||||||||||||||
10.2 | * | Amendment effective as of Aug. 11, 1994 to The Bank of New York Company, Inc. Excess Benefit Plan. | |||||||||||||||
10.3 | * | Amendment effective as of Nov. 1, 1995 to The Bank of New York Company, Inc. Excess Benefit Plan. | |||||||||||||||
10.4 | * | Amendment effective as of July 1, 1996 to The Bank of New York Company, Inc. Excess Benefit Plan. | |||||||||||||||
10.5 | * | The Bank of New York Company, Inc. Supplemental Executive Retirement Plan. | Previously filed as Exhibit 10(n) to The Bank of New York Company, Inc.’s Annual Report on Form 10-K (File No. 001-06152) for the year ended Dec. 31, 1992, and incorporated herein by reference. |
INDEX TO EXHIBITS (continued) | ||
Exhibit | Description | Method of Filing | |||||||||||||||
10.6 | * | Amendment effective as of March 9, 1993 to The Bank of New York Company, Inc. Supplemental Executive Retirement Plan. | |||||||||||||||
10.7 | * | Amendment effective as of Oct. 11, 1994 to The Bank of New York Company, Inc. Supplemental Executive Retirement Plan. | |||||||||||||||
10.8 | * | Amendment effective as of July 1, 1996 to The Bank of New York Company, Inc. Supplemental Executive Retirement Plan. | |||||||||||||||
10.9 | * | Amendment effective as of Nov. 12, 1996 to The Bank of New York Company, Inc. Supplemental Executive Retirement Plan. | |||||||||||||||
10.10 | * | Amendment effective as of July 11, 2000 to The Bank of New York Company, Inc. Supplemental Executive Retirement Plan. | |||||||||||||||
10.11 | * | Amendment effective as of Feb. 13, 2001 to The Bank of New York Company, Inc. Supplemental Executive Retirement Plan. | |||||||||||||||
10.12 | * | Amendment effective as of Jan. 1, 2006 to The Bank of New York Company, Inc. Supplemental Executive Retirement Plan. | |||||||||||||||
10.13 | * | Deferred Compensation Plan for Non-Employee Directors of The Bank of New York Company, Inc. | |||||||||||||||
10.14 | * | Amendment effective as of Nov. 8, 1994 to Deferred Compensation Plan for Non-Employee Directors of The Bank of New York Company, Inc. |
INDEX TO EXHIBITS (continued) | ||
Exhibit | Description | Method of Filing | |||||||||||||||
10.15 | * | Amendment effective Feb. 11, 1997 to Deferred Compensation Plan for Non-Employee Directors of The Bank of New York Company, Inc. | |||||||||||||||
10.16 | * | Amendment to Deferred Compensation Plan for Non-Employee Directors of The Bank of New York Company, Inc. effective as of July 11, 2000. | |||||||||||||||
10.17 | * | Amendment effective as of Nov. 12, 2002 to Deferred Compensation Plan for Non-Employee Directors of The Bank of New York Company, Inc. | |||||||||||||||
10.18 | * | Mellon Financial Corporation Director Equity Plan (2006). | |||||||||||||||
10.19 | * | The Bank of New York Mellon Corporation Deferred Compensation Plan for Directors, effective Jan. 1, 2008. | |||||||||||||||
10.20 | * | The Bank of New York Mellon Corporation Deferred Compensation Plan for Employees. | |||||||||||||||
10.21 | * | Form of Long Term Incentive Plan Deferred Stock Unit Agreement for Directors of The Bank of New York Mellon Corporation. | |||||||||||||||
10.22 | * | Amendment to The Bank of New York Company, Inc. Supplemental Executive Retirement Plan, effective as of Jan. 1, 2009. | |||||||||||||||
10.23 | * | Amendment to The Bank of New York Company, Inc. Excess Benefit Plan, effective as of Jan. 1, 2009. | |||||||||||||||
10.24 | * | The Bank of New York Mellon Corporation Policy Regarding Shareholder Approval of Future Senior Officers Severance Arrangements, effective July 12, 2010. |
INDEX TO EXHIBITS (continued) | ||
Exhibit | Description | Method of Filing | |||||||||||||||
10.25 | * | 2011 Form of Executive Stock Option Agreement. | |||||||||||||||
10.26 | * | The Bank of New York Mellon Corporation Long-Term Incentive Plan. | |||||||||||||||
10.27 | * | Amended and Restated Long-Term Incentive Plan of The Bank of New York Mellon Corporation. | |||||||||||||||
10.28 | * | 2012 Form of Nonstatutory Stock Option Agreement. | |||||||||||||||
10.29 | * | Amendment to The Bank of New York Company, Inc. Supplemental Executive Retirement Plan, effective as of Dec. 31, 2014. | |||||||||||||||
10.30 | * | The Bank of New York Mellon Corporation Defined Contribution IRC 401(a)(17) Plan (as amended and restated). | |||||||||||||||
10.31 | * | Amendment effective as of June 30, 2015 to The Bank of New York Company, Inc. Excess Benefit Plan. | |||||||||||||||
10.32 | * | Form of Amended and Restated Indemnification Agreement with Directors of The Bank of New York Mellon Corporation. | |||||||||||||||
10.33 | * | Form of Amended and Restated Indemnification Agreement with Executive Officers of The Bank of New York Mellon Corporation. | |||||||||||||||
10.34 | * | The Bank of New York Mellon Corporation Executive Severance Plan, as amended on Feb. 12, 2018. |
INDEX TO EXHIBITS (continued) | ||
Exhibit | Description | Method of Filing | |||||||||||||||
10.35 | * | 2018 Form of Performance Share Unit Agreement. | |||||||||||||||
10.36 | * | 2018 Form of Restricted Stock Unit Agreement. | |||||||||||||||
10.37 | * | Amendment effective as of Nov. 1, 2018 to The Bank of New York Company, Inc. Excess Benefit Plan. | |||||||||||||||
10.38 | * | The Bank of New York Mellon Corporation 2019 Long-Term Incentive Plan. | |||||||||||||||
10.39 | * | 2019 Form of Performance Share Unit Agreement. | |||||||||||||||
10.40 | * | 2019 Form of Restricted Stock Unit Agreement. | |||||||||||||||
10.41 | * | The Bank of New York Mellon Corporation 2019 Executive Incentive Compensation Plan. | |||||||||||||||
10.42 | * | 2020 Form of Performance Share Unit Agreement. | |||||||||||||||
10.43 | * | 2020 Form of Restricted Stock Unit Agreement. | |||||||||||||||
10.44 | * | Letter Agreement, dated Aug. 19, 2020, between The Bank of New York Mellon Corporation and Robin Vince. | |||||||||||||||
10.45 | * | 2021 Form of Performance Share Unit Agreement. |
INDEX TO EXHIBITS (continued) | ||
Exhibit | Description | Method of Filing | |||||||||||||||
10.46 | * | 2021 Form of Restricted Stock Unit Agreement. | |||||||||||||||
13.1 | All portions of The Bank of New York Mellon Corporation 2021 Annual Report to Shareholders that are incorporated herein by reference. The remaining portions are furnished for the information of the SEC and are not “filed” as part of this filing. | ||||||||||||||||
21.1 | Primary subsidiaries of the Company. | ||||||||||||||||
22.1 | Subsidiary Issuer of Guaranteed Securities. | ||||||||||||||||
23.1 | Consent of KPMG LLP. | ||||||||||||||||
24.1 | Power of Attorney. | ||||||||||||||||
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. | This 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. |
INDEX TO EXHIBITS (continued) | ||
Exhibit | Description | Method of Filing | |||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | Filed herewith. | |||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | Filed herewith. | |||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | Filed herewith. | |||||||||||||||
104 | The cover page of The Bank of New York Mellon Corporation’s Annual Report on Form 10-K for the year ended Dec. 31, 2021, formatted in inline XBRL. | The cover page interactive data file is embedded within the inline XBRL document and included in Exhibit 101. | |||||||||||||||
* Management contract or compensatory plan, contract or arrangement. |
The Bank of New York Mellon Corporation | ||||||||
By: | /s/ Thomas P. Gibbons | |||||||
Thomas P. Gibbons | ||||||||
Chief Executive Officer | ||||||||
DATED: February 25, 2022 |
Signature | Capacities | |||||||||||||
By: | /s/ Thomas P. Gibbons | Director and Principal Executive Officer | ||||||||||||
Thomas P. Gibbons | ||||||||||||||
Chief Executive Officer | ||||||||||||||
By: | /s/ Emily Portney | Principal Financial Officer | ||||||||||||
Emily Portney | ||||||||||||||
Chief Financial Officer | ||||||||||||||
By: | /s/ Kurtis R. Kurimsky | Principal Accounting Officer | ||||||||||||
Kurtis R. Kurimsky | ||||||||||||||
Corporate Controller | ||||||||||||||
Linda Z. Cook; Joseph J. Echevarria; M. Amy Gilliland; Jeffrey A. Goldstein; K. Guru Gowrappan; Ralph Izzo; Edmund F. Kelly; Sandra E. O’Connor; Elizabeth E. Robinson; Samuel C. Scott III; Frederick O. Terrell; Alfred W. Zollar | Directors | |||||||||||||
By: | /s/ J. Kevin McCarthy | DATED: February 25, 2022 | ||||||||||||
J. Kevin McCarthy | ||||||||||||||
Attorney-in-fact |
Page | |||||
Financial Summary | |||||
Management’s Discussion and Analysis of Financial Condition and Results of Operations: | |||||
Results of Operations: | |||||
General | |||||
Overview | |||||
Human capital | |||||
Summary of financial highlights | |||||
Impact of coronavirus pandemic on our business | |||||
Fee and other revenue | |||||
Net interest revenue | |||||
Noninterest expense | |||||
Income taxes | |||||
International operations | |||||
Critical accounting estimates | |||||
Consolidated balance sheet review | |||||
Liquidity and dividends | |||||
Capital | |||||
Trading activities and risk management | |||||
Asset/liability management | |||||
Risk Management | |||||
Supervision and Regulation | |||||
Other Matters | |||||
Risk Factors | |||||
Supplemental Information (unaudited): | |||||
Explanation of GAAP and Non-GAAP financial measures (unaudited) | |||||
Rate/volume analysis (unaudited) | |||||
Forward-looking Statements | |||||
Glossary | |||||
Report of Management on Internal Control Over Financial Reporting | |||||
Report of Independent Registered Public Accounting Firm | |||||
(dollars in millions, except per share amounts and unless otherwise noted) | 2021 | 2020 | 2019 | ||||||||
Selected income statement information: | |||||||||||
Fee and other revenue (a) | $ | 13,313 | $ | 12,831 | $ | 13,274 | |||||
Net interest revenue | 2,618 | 2,977 | 3,188 | ||||||||
Total revenue | 15,931 | 15,808 | 16,462 | ||||||||
Provision for credit losses | (231) | 336 | (25) | ||||||||
Noninterest expense | 11,514 | 11,004 | 10,900 | ||||||||
Income before income taxes | 4,648 | 4,468 | 5,587 | ||||||||
Provision for income taxes | 877 | 842 | 1,120 | ||||||||
Net income | 3,771 | 3,626 | 4,467 | ||||||||
Net (income) attributable to noncontrolling interests related to consolidated investment management funds | (12) | (9) | (26) | ||||||||
Preferred stock dividends | (207) | (194) | (169) | ||||||||
Net income applicable to common shareholders of The Bank of New York Mellon Corporation | $ | 3,552 | $ | 3,423 | $ | 4,272 | |||||
Earnings per share applicable to common shareholders of The Bank of New York Mellon Corporation: | |||||||||||
Basic | $ | 4.17 | $ | 3.84 | $ | 4.53 | |||||
Diluted | $ | 4.14 | $ | 3.83 | $ | 4.51 | |||||
Average common shares and equivalents outstanding (in thousands): | |||||||||||
Basic | 851,905 | 890,839 | 939,623 | ||||||||
Diluted | 856,359 | 892,514 | 943,109 | ||||||||
At Dec. 31 | |||||||||||
Assets under custody and/or administration (“AUC/A”) (in trillions) (b) | $ | 46.7 | $ | 41.1 | $ | 37.1 | |||||
Assets under management (“AUM”) (in billions) (c) | 2,434 | 2,211 | 1,910 | ||||||||
Selected ratios: | |||||||||||
Return on common equity | 8.9 | % | 8.7 | % | 11.4 | % | |||||
Return on tangible common equity – Non-GAAP (d) | 17.1 | 17.0 | 23.2 | ||||||||
Pre-tax operating margin | 29 | 28 | 34 | ||||||||
Net interest margin | 0.68 | 0.84 | 1.10 | ||||||||
Cash dividends per common share | $ | 1.30 | $ | 1.24 | $ | 1.18 | |||||
Common dividend payout ratio (e) | 32 | % | 33 | % | 26 | % | |||||
Common dividend yield | 2.2 | % | 2.9 | % | 2.3 | % | |||||
At Dec. 31 | |||||||||||
Closing stock price per common share | $ | 58.08 | $ | 42.44 | $ | 50.33 | |||||
Market capitalization | $ | 46,705 | $ | 37,634 | $ | 45,331 | |||||
Book value per common share | $ | 47.50 | $ | 46.53 | $ | 42.12 | |||||
Tangible book value per common share – Non-GAAP (d) | $ | 24.31 | $ | 25.44 | $ | 21.33 | |||||
Full-time employees | 49,100 | 48,500 | 48,400 | ||||||||
Common shares outstanding (in thousands) | 804,145 | 886,764 | 900,683 | ||||||||
Regulatory capital ratios (f) | |||||||||||
Common Equity Tier 1 (“CET1”) ratio | 11.2 | % | 13.1 | % | 11.5 | % | |||||
Tier 1 capital ratio | 14.0 | 15.8 | 13.7 | ||||||||
Total capital ratio | 14.9 | 16.7 | 14.4 | ||||||||
Tier 1 leverage ratio | 5.5 | 6.3 | 6.6 | ||||||||
Supplementary leverage ratio (“SLR”) (g) | 6.6 | 8.6 | 6.1 | ||||||||
Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||
Results of Operations |
Results of Operations (continued) |
Results of Operations (continued) |
Results of Operations (continued) |
Results of Operations (continued) |
Fee and other revenue | 2021 | 2020 | |||||||||||||||
vs. | vs. | ||||||||||||||||
(dollars in millions, unless otherwise noted) | 2021 | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Investment services fees | $ | 8,284 | $ | 8,047 | $ | 7,900 | 3 | % | 2 | % | |||||||
Investment management and performance fees (a) | 3,588 | 3,367 | 3,389 | 7 | (1) | ||||||||||||
Foreign exchange revenue (b) | 799 | 774 | 564 | 3 | 37 | ||||||||||||
Financing-related fees | 194 | 212 | 196 | (8) | 8 | ||||||||||||
Distribution and servicing fees | 112 | 115 | 129 | (3) | (11) | ||||||||||||
Total fee revenue (b) | 12,977 | 12,515 | 12,178 | 4 | 3 | ||||||||||||
Investment and other revenue (b) | 336 | 316 | 1,096 | N/M | N/M | ||||||||||||
Total fee and other revenue | 13,313 | 12,831 | 13,274 | 4 | % | (3) | % | ||||||||||
Fee revenue as a percentage of total revenue (b) | 81 | % | 79 | % | 74 | % | |||||||||||
AUC/A at period end (in trillions) (c) | $ | 46.7 | $ | 41.1 | $ | 37.1 | 14 | % | 11 | % | |||||||
AUM at period end (in billions) (d) | $ | 2,434 | $ | 2,211 | $ | 1,910 | 10 | % | 16 | % |
Results of Operations (continued) |
Money market fee waivers | ||||||||
(in millions) | 2021 | 2020 | ||||||
Investment services fees | $ | (547) | $ | (209) | ||||
Investment management and performance fees (a) | (429) | (142) | ||||||
Distribution and servicing fees | (51) | (17) | ||||||
Total fee revenue | (1,027) | (368) | ||||||
Less: Distribution and servicing expense | 111 | 31 | ||||||
Net impact of money market fee waivers | $ | (916) | $ | (337) | ||||
Impact to investment services fees by line of business (b): | ||||||||
Asset Servicing | $ | (105) | $ | (10) | ||||
Issuer Services | (62) | (9) | ||||||
Pershing | (343) | (186) | ||||||
Treasury Services | (37) | (4) | ||||||
Total impact to investment services fees by line of business | $ | (547) | $ | (209) | ||||
Impact to fee revenue by line of business (b): | ||||||||
Asset Servicing | $ | (176) | $ | (18) | ||||
Issuer Services | (83) | (13) | ||||||
Pershing | (401) | (227) | ||||||
Treasury Services | (52) | (6) | ||||||
Investment Management (a) | (303) | (100) | ||||||
Wealth Management | (12) | (4) | ||||||
Total impact to fee revenue by line of business | $ | (1,027) | $ | (368) |
Results of Operations (continued) |
Investment and other revenue | |||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||
Income from consolidated investment management funds | $ | 32 | $ | 84 | $ | 56 | |||||
Seed capital gains (a) | 40 | 23 | 14 | ||||||||
Other trading revenue | 6 | 13 | 77 | ||||||||
Renewable energy investment (losses) | (201) | (129) | (120) | ||||||||
Corporate/bank-owned life insurance | 140 | 148 | 138 | ||||||||
Other investment gains (b) | 159 | 35 | 841 | ||||||||
Disposal gains (losses) | 13 | (61) | — | ||||||||
Expense reimbursements from joint venture | 96 | 85 | 79 | ||||||||
Other income | 46 | 85 | 29 | ||||||||
Net securities gains (losses) | 5 | 33 | (18) | ||||||||
Total investment and other revenue | $ | 336 | $ | 316 | $ | 1,096 |
Results of Operations (continued) |
Net interest revenue | 2021 | 2020 | |||||||||||||||
vs. | vs. | ||||||||||||||||
(dollars in millions) | 2021 | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net interest revenue – GAAP | $ | 2,618 | $ | 2,977 | $ | 3,188 | (12) | % | (7) | % | |||||||
Add: Tax equivalent adjustment | 13 | 9 | 13 | N/M | N/M | ||||||||||||
Net interest revenue on a fully taxable equivalent (“FTE”) basis – Non-GAAP (a) | $ | 2,631 | $ | 2,986 | $ | 3,201 | (12) | % | (7) | % | |||||||
Average interest-earning assets | $ | 387,023 | $ | 354,526 | $ | 290,489 | 9 | % | 22 | % |
Net interest margin – GAAP | 0.68 | % | 0.84 | % | 1.10 | % | (16) | bps | (26) | bps | |||||||
Net interest margin (FTE) – Non-GAAP (a) | 0.68 | % | 0.84 | % | 1.10 | % | (16) | bps | (26) | bps |
Results of Operations (continued) |
Average balances and interest rates | 2021 | 2020 | |||||||||||||||||||||||||||
(dollars in millions) | Average balance | Interest | Average rate | Average balance | Interest | Average rate | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||
Interest-bearing deposits with the Federal Reserve and other central banks: | |||||||||||||||||||||||||||||
Domestic offices | $ | 47,070 | $ | 60 | 0.13 | % | $ | 45,186 | $ | 121 | 0.27 | % | |||||||||||||||||
Foreign offices | 66,276 | (137) | (0.21) | 49,246 | (71) | (0.14) | |||||||||||||||||||||||
Total interest-bearing deposits with the Federal Reserve and other central banks | 113,346 | (77) | (0.07) | 94,432 | 50 | 0.05 | |||||||||||||||||||||||
Interest-bearing deposits with banks (primarily foreign banks) | 20,757 | 48 | 0.23 | 19,165 | 134 | 0.70 | |||||||||||||||||||||||
Federal funds sold and securities purchased under resale agreements (a) | 28,530 | 120 | 0.42 | 30,768 | 545 | 1.77 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Domestic offices | 55,073 | 892 | 1.62 | 44,137 | 942 | 2.13 | |||||||||||||||||||||||
Foreign offices | 5,741 | 66 | 1.15 | 11,091 | 200 | 1.81 | |||||||||||||||||||||||
Total loans (b) | 60,814 | 958 | 1.58 | 55,228 | 1,142 | 2.07 | |||||||||||||||||||||||
Securities: | |||||||||||||||||||||||||||||
U.S. government obligations | 34,383 | 261 | 0.76 | 27,242 | 278 | (c) | 1.02 | (c) | |||||||||||||||||||||
U.S. government agency obligations | 72,552 | 985 | 1.36 | 75,430 | 1,328 | (c) | 1.76 | (c) | |||||||||||||||||||||
State and political subdivisions (d) | 2,623 | 54 | 2.01 | 1,418 | 36 | (c) | 2.51 | (c) | |||||||||||||||||||||
Other securities: | |||||||||||||||||||||||||||||
Domestic offices (d) | 17,145 | 333 | 1.94 | 14,335 | 300 | (c) | 2.09 | (c) | |||||||||||||||||||||
Foreign offices | 30,183 | 123 | 0.41 | 29,402 | 212 | (c) | 0.72 | (c) | |||||||||||||||||||||
Total other securities (d) | 47,328 | 456 | 0.96 | 43,737 | 512 | (c) | 1.17 | (c) | |||||||||||||||||||||
Total investment securities (d) | 156,886 | 1,756 | 1.12 | 147,827 | 2,154 | 1.46 | |||||||||||||||||||||||
Trading securities (primarily domestic) (d) | 6,690 | 53 | 0.80 | 7,106 | 93 | 1.31 | |||||||||||||||||||||||
Total securities (d) | 163,576 | 1,809 | 1.11 | 154,933 | 2,247 | 1.45 | |||||||||||||||||||||||
Total interest-earning assets (d) | $ | 387,023 | $ | 2,858 | 0.74 | % | $ | 354,526 | $ | 4,118 | 1.16 | % | |||||||||||||||||
Noninterest-earning assets | 65,209 | 58,792 | |||||||||||||||||||||||||||
Total assets | $ | 452,232 | $ | 413,318 | |||||||||||||||||||||||||
Liabilities and equity | |||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||
Domestic offices | $ | 124,716 | $ | (27) | (0.02) | % | $ | 105,984 | $ | 176 | 0.17 | % | |||||||||||||||||
Foreign offices | 112,493 | (148) | (0.13) | 106,836 | (15) | (0.01) | |||||||||||||||||||||||
Total interest-bearing deposits | 237,209 | (175) | (0.07) | 212,820 | 161 | 0.08 | |||||||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements (a) | 13,716 | (4) | (0.03) | 14,862 | 283 | 1.90 | |||||||||||||||||||||||
Trading liabilities | 2,590 | 8 | 0.31 | 2,177 | 15 | 0.68 | |||||||||||||||||||||||
Other borrowed funds: | |||||||||||||||||||||||||||||
Domestic offices | 160 | 5 | 2.99 | 849 | 15 | 1.81 | |||||||||||||||||||||||
Foreign offices | 223 | 3 | 1.48 | 199 | 1 | 0.26 | |||||||||||||||||||||||
Total other borrowed funds | 383 | 8 | 2.11 | 1,048 | 16 | 1.52 | |||||||||||||||||||||||
Commercial paper | 3 | — | 0.07 | 1,082 | 7 | 0.66 | |||||||||||||||||||||||
Payables to customers and broker-dealers | 16,887 | (2) | (0.01) | 17,789 | 28 | 0.16 | |||||||||||||||||||||||
Long-term debt | 25,788 | 392 | 1.52 | 26,888 | 622 | 2.31 | |||||||||||||||||||||||
Total interest-bearing liabilities | $ | 296,576 | $ | 227 | 0.08 | % | $ | 276,666 | $ | 1,132 | 0.41 | % | |||||||||||||||||
Total noninterest-bearing deposits | 86,606 | 69,124 | |||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 24,381 | 23,879 | |||||||||||||||||||||||||||
Total liabilities | 407,563 | 369,669 | |||||||||||||||||||||||||||
Total The Bank of New York Mellon Corporation shareholders’ equity | 44,358 | 43,430 | |||||||||||||||||||||||||||
Noncontrolling interests | 311 | 219 | |||||||||||||||||||||||||||
Total liabilities and equity | $ | 452,232 | $ | 413,318 | |||||||||||||||||||||||||
Net interest revenue (FTE) – Non-GAAP (d)(e) | $ | 2,631 | $ | 2,986 | |||||||||||||||||||||||||
Net interest margin (FTE) – Non-GAAP (d)(e) | 0.68 | % | 0.84 | % | |||||||||||||||||||||||||
Less: Tax equivalent adjustment | 13 | 9 | |||||||||||||||||||||||||||
Net interest revenue – GAAP | $ | 2,618 | $ | 2,977 | |||||||||||||||||||||||||
Net interest margin – GAAP | 0.68 | % | 0.84 | % | |||||||||||||||||||||||||
Percentage of assets attributable to foreign offices (f) | 30 | % | 30 | % | |||||||||||||||||||||||||
Percentage of liabilities attributable to foreign offices (f) | 31 | % | 32 | % |
Results of Operations (continued) |
Average balances and interest rates | 2019 | |||||||||||||||||||
(dollars in millions) | Average balance | Interest | Average rate | |||||||||||||||||
Assets | ||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||
Interest-bearing deposits with the Federal Reserve and other central banks: | ||||||||||||||||||||
Domestic offices | $ | 20,288 | $ | 433 | 2.13 | % | ||||||||||||||
Foreign offices | 41,451 | 15 | 0.04 | |||||||||||||||||
Total interest-bearing deposits with the Federal Reserve and other central banks | 61,739 | 448 | 0.73 | |||||||||||||||||
Interest-bearing deposits with banks (primarily foreign banks) | 14,666 | 265 | 1.81 | |||||||||||||||||
Federal funds sold and securities purchased under resale agreements (a) | 36,705 | 2,154 | 5.87 | |||||||||||||||||
Loans: | ||||||||||||||||||||
Domestic offices (b) | 40,439 | 1,459 | 3.61 | |||||||||||||||||
Foreign offices | 10,884 | 330 | 3.03 | |||||||||||||||||
Total loans (b)(c) | 51,323 | 1,789 | 3.49 | |||||||||||||||||
Securities: | ||||||||||||||||||||
U.S. government obligations | 20,040 | 409 | (d) | 2.04 | (d) | |||||||||||||||
U.S. government agency obligations | 66,519 | 1,663 | (d) | 2.50 | (d) | |||||||||||||||
State and political subdivisions (e) | 1,569 | 46 | (d) | 2.89 | (d) | |||||||||||||||
Other securities: | ||||||||||||||||||||
Domestic offices (e) | 10,504 | 383 | (d) | 3.65 | (d) | |||||||||||||||
Foreign offices | 21,616 | 248 | (d) | 1.15 | (d) | |||||||||||||||
Total other securities (e) | 32,120 | 631 | (d) | 1.97 | (d) | |||||||||||||||
Total investment securities (e) | 120,248 | 2,749 | 2.29 | |||||||||||||||||
Trading securities (primarily domestic) (e) | 5,808 | 156 | 2.69 | |||||||||||||||||
Total securities (e) | 126,056 | 2,905 | 2.30 | |||||||||||||||||
Total interest-earning assets (b)(e) | $ | 290,489 | $ | 7,561 | 2.60 | % | ||||||||||||||
Noninterest-earning assets | 55,466 | |||||||||||||||||||
Total assets | $ | 345,955 | ||||||||||||||||||
Liabilities and equity | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||
Domestic offices | $ | 78,698 | $ | 958 | 1.22 | % | ||||||||||||||
Foreign offices | 93,191 | 636 | 0.68 | |||||||||||||||||
Total interest-bearing deposits | 171,889 | 1,594 | 0.93 | |||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements (a) | 12,463 | 1,437 | 11.53 | |||||||||||||||||
Trading liabilities | 1,479 | 35 | 2.33 | |||||||||||||||||
Other borrowed funds: | ||||||||||||||||||||
Domestic offices | 1,655 | 59 | 3.54 | |||||||||||||||||
Foreign offices | 240 | — | 0.20 | |||||||||||||||||
Total other borrowed funds | 1,895 | 59 | 3.11 | |||||||||||||||||
Commercial paper | 2,485 | 55 | 2.22 | |||||||||||||||||
Payables to customers and broker-dealers | 15,595 | 238 | 1.53 | |||||||||||||||||
Long-term debt | 28,110 | 942 | 3.35 | |||||||||||||||||
Total interest-bearing liabilities | $ | 233,916 | $ | 4,360 | 1.86 | % | ||||||||||||||
Total noninterest-bearing deposits | 51,529 | |||||||||||||||||||
Other noninterest-bearing liabilities | 19,244 | |||||||||||||||||||
Total liabilities | 304,689 | |||||||||||||||||||
Total The Bank of New York Mellon Corporation shareholders’ equity | 41,047 | |||||||||||||||||||
Noncontrolling interests | 219 | |||||||||||||||||||
Total liabilities and equity | $ | 345,955 | ||||||||||||||||||
Net interest revenue (FTE) – Non-GAAP (b)(e)(f) | $ | 3,201 | ||||||||||||||||||
Net interest margin (FTE) – Non-GAAP (b)(e)(f) | 1.10 | % | ||||||||||||||||||
Less: Tax equivalent adjustment | 13 | |||||||||||||||||||
Net interest revenue – GAAP | $ | 3,188 | ||||||||||||||||||
Net interest margin – GAAP | 1.10 | % | ||||||||||||||||||
Percentage of assets attributable to foreign offices (g) | 31 | % | ||||||||||||||||||
Percentage of liabilities attributable to foreign offices (g) | 34 | % |
Results of Operations (continued) |
Noninterest expense | 2021 | 2020 | |||||||||||||||
vs. | vs. | ||||||||||||||||
(dollars in millions) | 2021 | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Staff | $ | 6,337 | $ | 5,966 | $ | 6,063 | 6 | % | (2) | % | |||||||
Software and equipment | 1,478 | 1,370 | 1,222 | 8 | 12 | ||||||||||||
Professional, legal and other purchased services | 1,459 | 1,403 | 1,345 | 4 | 4 | ||||||||||||
Sub-custodian and clearing | 505 | 460 | 450 | 10 | 2 | ||||||||||||
Net occupancy | 498 | 581 | 564 | (14) | 3 | ||||||||||||
Distribution and servicing | 298 | 336 | 374 | (11) | (10) | ||||||||||||
Bank assessment charges | 133 | 124 | 125 | 7 | (1) | ||||||||||||
Business development | 107 | 105 | 213 | 2 | (51) | ||||||||||||
Amortization of intangible assets | 82 | 104 | 117 | (21) | (11) | ||||||||||||
Other | 617 | 555 | 427 | 11 | 30 | ||||||||||||
Total noninterest expense | $ | 11,514 | $ | 11,004 | $ | 10,900 | 5 | % | 1 | % | |||||||
Full-time employees at year-end | 49,100 | 48,500 | 48,400 | 1 | % | — | % |
Results of Operations (continued) |
Results of Operations (continued) |
2021 | 2020 | ||||||||||||||||
vs. | vs. | ||||||||||||||||
(dollars in millions, unless otherwise noted) | 2021 | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenue: | |||||||||||||||||
Investment services fees: | |||||||||||||||||
Asset Servicing | $ | 3,876 | $ | 3,635 | $ | 3,565 | 7 | % | 2 | % | |||||||
Issuer Services | 1,061 | 1,100 | 1,129 | (4) | (3) | ||||||||||||
Total investment services fees | 4,937 | 4,735 | 4,694 | 4 | 1 | ||||||||||||
Foreign exchange revenue | 574 | 602 | 457 | (5) | 32 | ||||||||||||
Other fees (a) | 113 | 182 | 176 | (38) | 3 | ||||||||||||
Total fee revenue | 5,624 | 5,519 | 5,327 | 2 | 4 | ||||||||||||
Investment and other revenue | 194 | 159 | 134 | N/M | N/M | ||||||||||||
Total fee and other revenue | 5,818 | 5,678 | 5,461 | 2 | 4 | ||||||||||||
Net interest revenue | 1,426 | 1,697 | 1,896 | (16) | (10) | ||||||||||||
Total revenue | 7,244 | 7,375 | 7,357 | (2) | — | ||||||||||||
Provision for credit losses | (134) | 215 | (11) | N/M | N/M | ||||||||||||
Noninterest expense (excluding amortization of intangible assets) | 5,820 | 5,522 | 5,416 | 5 | 2 | ||||||||||||
Amortization of intangible assets | 32 | 34 | 41 | (6) | (17) | ||||||||||||
Total noninterest expense | 5,852 | 5,556 | 5,457 | 5 | 2 | ||||||||||||
Income before income taxes | $ | 1,526 | $ | 1,604 | $ | 1,911 | (5) | % | (16) | % | |||||||
Pre-tax operating margin | 21 | % | 22 | % | 26 | % | |||||||||||
Securities lending revenue (b) | $ | 173 | $ | 170 | $ | 163 | 2 | % | 4 | % | |||||||
Total revenue by line of business: | |||||||||||||||||
Asset Servicing | $ | 5,699 | $ | 5,705 | $ | 5,634 | — | % | 1 | % | |||||||
Issuer Services | 1,545 | 1,670 | 1,723 | (7) | (3) | ||||||||||||
Total revenue by line of business | $ | 7,244 | $ | 7,375 | $ | 7,357 | (2) | % | — | % | |||||||
Selected average balances: | |||||||||||||||||
Average loans | $ | 8,756 | $ | 9,225 | $ | 8,323 | (5) | % | 11 | % | |||||||
Average deposits | $ | 200,482 | $ | 177,853 | $ | 143,176 | 13 | % | 24 | % | |||||||
Selected metrics: | |||||||||||||||||
AUC/A at period end (in trillions) (c) | $ | 34.6 | $ | 30.6 | $ | 27.4 | 13 | % | 12 | % | |||||||
Market value of securities on loan at period end (in billions) (d) | $ | 447 | $ | 435 | $ | 378 | 3 | % | 15 | % |
Results of Operations (continued) |
Results of Operations (continued) |
2021 | 2020 | ||||||||||||||||
vs. | vs. | ||||||||||||||||
(dollars in millions, unless otherwise noted) | 2021 | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenue: | |||||||||||||||||
Investment services fees: | |||||||||||||||||
Pershing | $ | 1,737 | $ | 1,734 | $ | 1,668 | — | % | 4 | % | |||||||
Treasury Services | 662 | 641 | 584 | 3 | 10 | ||||||||||||
Clearance and Collateral Management | 918 | 896 | 904 | 2 | (1) | ||||||||||||
Total investment services fees | 3,317 | 3,271 | 3,156 | 1 | 4 | ||||||||||||
Foreign exchange revenue | 88 | 79 | 69 | 11 | 14 | ||||||||||||
Other fees (a) | 131 | 166 | 184 | (21) | (10) | ||||||||||||
Total fee revenue | 3,536 | 3,516 | 3,409 | 1 | 3 | ||||||||||||
Investment and other revenue | 47 | 62 | 56 | N/M | N/M | ||||||||||||
Total fee and other revenue | 3,583 | 3,578 | 3,465 | — | 3 | ||||||||||||
Net interest revenue | 1,158 | 1,228 | 1,230 | (6) | — | ||||||||||||
Total revenue | 4,741 | 4,806 | 4,695 | (1) | 2 | ||||||||||||
Provision for credit losses | (67) | 100 | (5) | N/M | N/M | ||||||||||||
Noninterest expense (excluding amortization of intangible assets) | 2,655 | 2,577 | 2,600 | 3 | (1) | ||||||||||||
Amortization of intangible assets | 21 | 37 | 39 | (43) | (5) | ||||||||||||
Total noninterest expense | 2,676 | 2,614 | 2,639 | 2 | (1) | ||||||||||||
Income before income taxes | $ | 2,132 | $ | 2,092 | $ | 2,061 | 2 | % | 2 | % | |||||||
Pre-tax operating margin | 45 | % | 44 | % | 44 | % | |||||||||||
Total revenue by line of business: | |||||||||||||||||
Pershing | $ | 2,314 | $ | 2,332 | $ | 2,287 | (1) | % | 2 | % | |||||||
Treasury Services | 1,293 | 1,327 | 1,275 | (3) | 4 | ||||||||||||
Clearance and Collateral Management | 1,134 | 1,147 | 1,133 | (1) | 1 | ||||||||||||
Total revenue by line of business | $ | 4,741 | $ | 4,806 | $ | 4,695 | (1) | % | 2 | % | |||||||
Selected average balances: | |||||||||||||||||
Average loans | $ | 38,344 | $ | 32,432 | $ | 29,021 | 18 | % | 12 | % | |||||||
Average deposits | $ | 102,948 | $ | 83,442 | $ | 57,515 | 23 | % | 45 | % | |||||||
Selected metrics: | |||||||||||||||||
AUC/A at period end (in trillions) (b) | $ | 11.8 | $ | 10.2 | $ | 9.5 | 16 | % | 7 | % | |||||||
Pershing: | |||||||||||||||||
AUC/A at period end (in trillions) | $ | 2.6 | $ | 2.5 | $ | 2.1 | 4 | % | 19 | % | |||||||
Net new assets (U.S. platform) (in billions) (c) | $ | 161 | $ | 116 | $ | 111 | N/M | N/M | |||||||||
Average active clearing accounts (in thousands) | 7,257 | 6,883 | 6,555 | 5 | % | 5 | % | ||||||||||
Treasury Services: | |||||||||||||||||
Average daily U.S. dollar payment volumes | 235,971 | 221,755 | 225,145 | 6 | % | (2) | % | ||||||||||
Clearance and Collateral Management: | |||||||||||||||||
Average tri-party collateral management balances (in billions) | $ | 4,260 | $ | 3,566 | $ | 3,446 | 19 | % | 3 | % |
Results of Operations (continued) |
Results of Operations (continued) |
2021 | 2020 | ||||||||||||||||
vs. | vs. | ||||||||||||||||
(dollars in millions) | 2021 | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenue: | |||||||||||||||||
Investment management fees | $ | 3,483 | $ | 3,261 | $ | 3,307 | 7 | % | (1) | % | |||||||
Performance fees | 107 | 107 | 83 | — | 29 | ||||||||||||
Investment management and performance fees (a) | 3,590 | 3,368 | 3,390 | 7 | (1) | ||||||||||||
Distribution and servicing fees | 112 | 137 | 178 | (18) | (23) | ||||||||||||
Other fees (b) | 80 | (58) | (101) | N/M | N/M | ||||||||||||
Total fee revenue | 3,782 | 3,447 | 3,467 | 10 | (1) | ||||||||||||
Investment and other revenue (c) | 67 | 48 | 18 | N/M | N/M | ||||||||||||
Total fee and other revenue (c) | 3,849 | 3,495 | 3,485 | 10 | — | ||||||||||||
Net interest revenue | 193 | 197 | 222 | (2) | (11) | ||||||||||||
Total revenue | 4,042 | 3,692 | 3,707 | 9 | — | ||||||||||||
Provision for credit losses | (13) | 20 | (1) | N/M | N/M | ||||||||||||
Noninterest expense (excluding amortization of intangible assets) | 2,796 | 2,668 | 2,610 | 5 | 2 | ||||||||||||
Amortization of intangible assets | 29 | 33 | 37 | (12) | (11) | ||||||||||||
Total noninterest expense | 2,825 | 2,701 | 2,647 | 5 | 2 | ||||||||||||
Income before income taxes | $ | 1,230 | $ | 971 | $ | 1,061 | 27 | % | (8) | % | |||||||
Pre-tax operating margin | 30 | % | 26 | % | 29 | % | |||||||||||
Adjusted pre-tax operating margin – Non-GAAP (d) | 33 | % | 29 | % | 32 | % | |||||||||||
Total revenue by line of business: | |||||||||||||||||
Investment Management | $ | 2,834 | $ | 2,596 | $ | 2,562 | 9 | % | 1 | % | |||||||
Wealth Management | 1,208 | 1,096 | 1,145 | 10 | (4) | ||||||||||||
Total revenue by line of business | $ | 4,042 | $ | 3,692 | $ | 3,707 | 9 | % | — | % | |||||||
Selected average balances: | |||||||||||||||||
Average loans | $ | 12,120 | $ | 11,728 | $ | 12,143 | 3 | % | (3) | % | |||||||
Average deposits | $ | 18,068 | $ | 17,340 | $ | 14,923 | 4 | % | 16 | % |
Results of Operations (continued) |
AUM trends | |||||||||||
(in billions) | 2021 | 2020 | 2019 | ||||||||
AUM by product type (a): | |||||||||||
Equity | $ | 187 | $ | 170 | $ | 154 | |||||
Fixed income | 267 | 259 | 224 | ||||||||
Index | 467 | 393 | 339 | ||||||||
Liability-driven investments | 890 | 855 | 728 | ||||||||
Multi-asset and alternative investments | 228 | 209 | 192 | ||||||||
Cash | 395 | 325 | 273 | ||||||||
Total AUM | $ | 2,434 | $ | 2,211 | $ | 1,910 | |||||
Changes in AUM (a): | |||||||||||
Beginning balance of AUM | $ | 2,211 | $ | 1,910 | $ | 1,722 | |||||
Net inflows (outflows): | |||||||||||
Long-term strategies: | |||||||||||
Equity | (12) | (10) | (16) | ||||||||
Fixed income | 17 | 10 | 6 | ||||||||
Liability-driven investments | 36 | 22 | (1) | ||||||||
Multi-asset and alternative investments | (2) | (4) | (1) | ||||||||
Total long-term active strategies inflows (outflows) | 39 | 18 | (12) | ||||||||
Index | (7) | 6 | (32) | ||||||||
Total long-term strategies inflows (outflows) | 32 | 24 | (44) | ||||||||
Short-term strategies: | |||||||||||
Cash | 70 | 49 | 8 | ||||||||
Total net inflows (outflows) | 102 | 73 | (36) | ||||||||
Net market impact | 143 | 186 | 191 | ||||||||
Net currency impact | (22) | 42 | 33 | ||||||||
Ending balance of AUM | $ | 2,434 | $ | 2,211 | $ | 1,910 | |||||
Wealth Management client assets (b) | $ | 321 | $ | 286 | $ | 266 |
Results of Operations (continued) |
Results of Operations (continued) |
(in millions) | 2021 | 2020 | 2019 | |||||||||||
Fee revenue (a) | $ | 36 | $ | 34 | $ | (24) | ||||||||
Investment and other revenue (a) | 15 | 37 | 861 | (b) | ||||||||||
Total fee and other revenue | 51 | $ | 71 | $ | 837 | |||||||||
Net interest expense | (159) | (145) | (160) | |||||||||||
Total revenue | (108) | (74) | 677 | |||||||||||
Provision for credit losses | (17) | 1 | (8) | |||||||||||
Noninterest expense | 161 | 133 | 157 | |||||||||||
(Loss) income before income taxes | $ | (252) | $ | (208) | $ | 528 | ||||||||
Average loans and leases | $ | 1,594 | $ | 1,843 | $ | 1,836 |
Results of Operations (continued) |
Foreign exchange rates vs. U.S. dollar | 2021 | 2020 | 2019 | ||||||||
Spot rate (at Dec. 31): | |||||||||||
British pound | $ | 1.3543 | $ | 1.3663 | $ | 1.3199 | |||||
Euro | 1.1373 | 1.2267 | 1.1231 | ||||||||
Yearly average rate: | |||||||||||
British pound | $ | 1.3755 | $ | 1.2836 | $ | 1.2770 | |||||
Euro | 1.1994 | 1.1414 | 1.1195 |
Results of Operations (continued) |
Country risk exposure at Dec. 31, 2021 | Interest-bearing deposits | Total exposure | |||||||||||||||||||||||||||||||||
(in billions) | Central banks | Banks | Lending (a) | Securities (b) | Other (c) | ||||||||||||||||||||||||||||||
Top 10 country exposure: | |||||||||||||||||||||||||||||||||||
Germany | $ | 21.0 | $ | 1.2 | $ | 0.7 | $ | 4.4 | $ | 0.4 | $ | 27.7 | |||||||||||||||||||||||
United Kingdom (“UK”) | 13.1 | 0.2 | 1.0 | 4.2 | 3.1 | 21.6 | |||||||||||||||||||||||||||||
Japan | 7.8 | 1.0 | — | 0.5 | 0.1 | 9.4 | |||||||||||||||||||||||||||||
Belgium | 8.2 | 0.9 | 0.1 | 0.1 | — | 9.3 | |||||||||||||||||||||||||||||
Canada | — | 2.6 | 0.4 | 3.7 | 1.2 | 7.9 | |||||||||||||||||||||||||||||
Netherlands | 4.1 | — | 0.2 | 1.8 | 0.1 | 6.2 | |||||||||||||||||||||||||||||
China | — | 2.0 | 1.5 | — | 0.2 | 3.7 | |||||||||||||||||||||||||||||
Luxembourg | 1.4 | 0.1 | 0.8 | — | 1.4 | 3.7 | |||||||||||||||||||||||||||||
Ireland | 0.9 | 0.2 | 0.3 | 0.2 | 1.5 | 3.1 | |||||||||||||||||||||||||||||
France | — | — | — | 2.8 | 0.2 | 3.0 | |||||||||||||||||||||||||||||
Total Top 10 country exposure | $ | 56.5 | $ | 8.2 | $ | 5.0 | $ | 17.7 | $ | 8.2 | $ | 95.6 | (d) | ||||||||||||||||||||||
Select country exposure: | |||||||||||||||||||||||||||||||||||
Brazil | $ | — | $ | — | $ | 0.8 | $ | 0.1 | $ | 0.2 | $ | 1.1 | |||||||||||||||||||||||
Russia | — | 0.1 | — | (e) | — | — | 0.1 |
Results of Operations (continued) |
Results of Operations (continued) |
Results of Operations (continued) |
Results of Operations (continued) |
Results of Operations (continued) |
Securities portfolio | Dec. 31, 2020 | 2021 change in unrealized gain (loss) | Dec. 31, 2021 | Fair value as a % of amortized cost (a) | Unrealized gain (loss) | % Floating rate (b) | Ratings (c) | |||||||||||||||||||||||||||||||||||||||||||
BBB+/ BBB- | BB+ and lower | |||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | Fair value | Amortized cost (a) | Fair value | AAA/ AA- | A+/ A- | Not rated | ||||||||||||||||||||||||||||||||||||||||||||
Agency RMBS | $ | 61,740 | $ | (1,231) | $ | 50,500 | $ | 50,735 | 100 | % | $ | 235 | 12 | % | 100 | % | — | % | — | % | — | % | — | % | ||||||||||||||||||||||||||
U.S. Treasury | 26,958 | (464) | 40,583 | 40,582 | 100 | (1) | 46 | 100 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Sovereign debt/sovereign guaranteed (d) | 13,452 | (177) | 14,289 | 14,312 | 100 | 23 | 13 | 80 | 4 | 15 | 1 | — | ||||||||||||||||||||||||||||||||||||||
Agency commercial mortgage-backed securities (“MBS”) | 11,685 | (300) | 12,170 | 12,291 | 101 | 121 | 23 | 100 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Supranational | 7,208 | (74) | 7,653 | 7,646 | 100 | (7) | 53 | 100 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Foreign covered bonds (e) | 6,725 | (65) | 6,236 | 6,238 | 100 | 2 | 38 | 100 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Collateralized loan obligations (“CLOs”) | 4,703 | — | 5,424 | 5,421 | 100 | (3) | 100 | 99 | — | — | 1 | — | ||||||||||||||||||||||||||||||||||||||
U.S. government agencies | 6,577 | (123) | 5,462 | 5,420 | 99 | (42) | 24 | 100 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Non-agency commercial MBS | 2,992 | (97) | 3,083 | 3,114 | 101 | 31 | 25 | 100 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Non-agency RMBS | 2,387 | (42) | 2,684 | 2,793 | 104 | 109 | 43 | 80 | 3 | — | 8 | 9 | ||||||||||||||||||||||||||||||||||||||
Foreign government agencies (f) | 4,132 | (54) | 2,694 | 2,686 | 100 | (8) | 17 | 92 | 8 | — | — | — | ||||||||||||||||||||||||||||||||||||||
State and political subdivisions | 2,324 | (67) | 2,557 | 2,529 | 99 | (28) | 5 | 89 | 10 | — | — | 1 | ||||||||||||||||||||||||||||||||||||||
Other asset-backed securities (“ABS”) | 3,164 | (44) | 2,205 | 2,190 | 99 | (15) | 12 | 100 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Corporate bonds | 1,994 | (82) | 2,099 | 2,066 | 98 | (33) | 16 | 16 | 67 | 17 | — | — | ||||||||||||||||||||||||||||||||||||||
Commercial paper/CDs | 249 | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Other | 1 | — | 1 | 1 | 100 | — | — | — | — | — | — | 100 | ||||||||||||||||||||||||||||||||||||||
Total securities | $ | 156,291 | (g) | $ | (2,820) | $ | 157,640 | $ | 158,024 | (g) | 100 | % | $ | 384 | (g)(h) | 29 | % | 96 | % | 2 | % | 2 | % | — | % | — | % |
Results of Operations (continued) |
Net premium amortization and discount accretion of securities (a) | |||||||||||
(dollars in millions) | 2021 | 2020 | 2019 | ||||||||
Amortizable purchase premium (net of discount) relating to securities: | |||||||||||
Balance at year-end | $ | 1,972 | $ | 2,283 | $ | 1,319 | |||||
Estimated average life remaining at year-end (in years) | 4.4 | 3.9 | 4.3 | ||||||||
Amortization | $ | 698 | $ | 568 | $ | 364 | |||||
Accretable discount related to the prior restructuring of the securities portfolio: | |||||||||||
Balance at year-end | $ | 109 | $ | 130 | $ | 163 | |||||
Estimated average life remaining at year-end (in years) | 6.1 | 5.6 | 6.3 | ||||||||
Accretion | $ | 43 | $ | 38 | $ | 54 |
Results of Operations (continued) |
Total exposure – consolidated | Dec. 31, 2021 | Dec. 31, 2020 (a) | |||||||||||||||||||||
(in billions) | Loans | Unfunded commitments | Total exposure | Loans | Unfunded commitments | Total exposure | |||||||||||||||||
Financial institutions | $ | 10.2 | $ | 30.6 | $ | 40.8 | $ | 11.1 | $ | 32.8 | $ | 43.9 | |||||||||||
Commercial | 2.1 | 11.9 | 14.0 | 1.4 | 12.7 | 14.1 | |||||||||||||||||
Wealth management loans | 9.8 | 0.5 | 10.3 | 8.3 | 0.7 | 9.0 | |||||||||||||||||
Wealth management mortgages | 8.2 | 0.4 | 8.6 | 8.1 | 0.3 | 8.4 | |||||||||||||||||
Commercial real estate | 6.0 | 3.3 | 9.3 | 6.0 | 3.2 | 9.2 | |||||||||||||||||
Lease financings | 0.7 | — | 0.7 | 1.0 | — | 1.0 | |||||||||||||||||
Other residential mortgages | 0.3 | — | 0.3 | 0.4 | — | 0.4 | |||||||||||||||||
Overdrafts | 3.1 | — | 3.1 | 2.7 | — | 2.7 | |||||||||||||||||
Capital call financing | 2.3 | 1.5 | 3.8 | 0.2 | 0.1 | 0.3 | |||||||||||||||||
Other | 2.6 | — | 2.6 | 1.9 | — | 1.9 | |||||||||||||||||
Margin loans | 22.5 | — | 22.5 | 15.4 | 0.1 | 15.5 | |||||||||||||||||
Total | $ | 67.8 | $ | 48.2 | $ | 116.0 | $ | 56.5 | $ | 49.9 | $ | 106.4 |
Financial institutions portfolio exposure (dollars in billions) | Dec. 31, 2021 | Dec. 31, 2020 | |||||||||||||||||||||||||||
Loans | Unfunded commitments | Total exposure | % Inv. grade | % due <1 yr. | Loans | Unfunded commitments | Total exposure | ||||||||||||||||||||||
Securities industry | $ | 1.7 | $ | 17.5 | $ | 19.2 | 97 | % | 99 | % | $ | 2.3 | $ | 21.6 | $ | 23.9 | |||||||||||||
Asset managers (a) | 1.7 | 7.1 | 8.8 | 99 | 89 | 1.3 | 6.4 | 7.7 | |||||||||||||||||||||
Banks | 5.8 | 1.5 | 7.3 | 88 | 99 | 6.7 | 1.1 | 7.8 | |||||||||||||||||||||
Insurance | 0.2 | 3.4 | 3.6 | 100 | 10 | 0.1 | 2.8 | 2.9 | |||||||||||||||||||||
Government | 0.1 | 0.2 | 0.3 | 100 | 61 | 0.1 | 0.2 | 0.3 | |||||||||||||||||||||
Other | 0.7 | 0.9 | 1.6 | 98 | 60 | 0.6 | 0.7 | 1.3 | |||||||||||||||||||||
Total (a) | $ | 10.2 | $ | 30.6 | $ | 40.8 | 96 | % | 87 | % | $ | 11.1 | $ | 32.8 | $ | 43.9 |
Results of Operations (continued) |
Commercial portfolio exposure | Dec. 31, 2021 | Dec. 31, 2020 | |||||||||||||||||||||||||||
(dollars in billions) | Loans | Unfunded commitments | Total exposure | % Inv. grade | % due <1 yr. | Loans | Unfunded commitments | Total exposure | |||||||||||||||||||||
Manufacturing | $ | 0.6 | $ | 3.9 | $ | 4.5 | 96 | % | 21 | % | $ | 0.5 | $ | 4.1 | $ | 4.6 | |||||||||||||
Energy and utilities | 0.4 | 3.9 | 4.3 | 93 | 3 | 0.3 | 3.9 | 4.2 | |||||||||||||||||||||
Services and other | 1.0 | 3.2 | 4.2 | 95 | 37 | 0.6 | 3.8 | 4.4 | |||||||||||||||||||||
Media and telecom | 0.1 | 0.9 | 1.0 | 91 | 8 | — | 0.9 | 0.9 | |||||||||||||||||||||
Total | $ | 2.1 | $ | 11.9 | $ | 14.0 | 94 | % | 19 | % | $ | 1.4 | $ | 12.7 | $ | 14.1 |
Investment grade percentages | Dec. 31, | ||||||||||
2021 | 2020 | 2019 | |||||||||
Financial institutions | 96 | % | 95 | % | 95 | % | |||||
Commercial | 94 | % | 92 | % | 96 | % |
Results of Operations (continued) |
Composition of commercial real estate portfolio by asset class | Dec. 31, 2021 | Dec. 31, 2020 | |||||||||||||||
Total exposure | Percentage secured (a) | Total exposure | Percentage secured (a) | ||||||||||||||
(dollars in billions) | |||||||||||||||||
Residential | $ | 3.6 | 81 | % | $ | 3.3 | 86 | % | |||||||||
Office | 2.6 | 77 | 2.8 | 75 | |||||||||||||
Retail | 0.9 | 58 | 1.0 | 52 | |||||||||||||
Mixed-use | 0.7 | 37 | 0.7 | 22 | |||||||||||||
Hotels | 0.5 | 23 | 0.6 | 20 | |||||||||||||
Healthcare | 0.4 | 25 | 0.4 | 25 | |||||||||||||
Other (b) | 0.6 | 45 | 0.4 | 27 | |||||||||||||
Total commercial real estate (b) | $ | 9.3 | 66 | % | $ | 9.2 | 65 | % |
Results of Operations (continued) |
Maturity of loan portfolio at Dec. 31, 2021 | Within 1 year | Between 1 and 5 years | Between 5 and 15 years | After 15 years | Total | ||||||||||||
(in millions) | |||||||||||||||||
Commercial | $ | 1,496 | $ | 584 | $ | 48 | $ | — | $ | 2,128 | |||||||
Commercial real estate | 711 | 3,603 | 1,715 | 4 | 6,033 | ||||||||||||
Financial institutions | 9,162 | 1,029 | 41 | — | 10,232 | ||||||||||||
Lease financings | 55 | 147 | 529 | — | 731 | ||||||||||||
Wealth management loans | 9,544 | 189 | 59 | — | 9,792 | ||||||||||||
Wealth management mortgages | 6 | 42 | 436 | 7,716 | 8,200 | ||||||||||||
Other residential mortgages | — | 10 | 175 | 114 | 299 | ||||||||||||
Overdrafts | 3,060 | — | — | — | 3,060 | ||||||||||||
Capital call financing | 727 | 1,460 | 97 | — | 2,284 | ||||||||||||
Other | 2,523 | — | 18 | — | 2,541 | ||||||||||||
Margin loans | 22,487 | — | — | — | 22,487 | ||||||||||||
Total | $ | 49,771 | $ | 7,064 | $ | 3,118 | $ | 7,834 | $ | 67,787 |
Results of Operations (continued) |
Allowance for credit losses activity | 2021 | 2020 | |||||||||
(dollars in millions) | |||||||||||
Beginning balance of allowance for credit losses | $ | 501 | $ | 216 | |||||||
Impact of adopting ASU 2016-13 | N/A | (55) | (a) | ||||||||
Provision for credit losses | (231) | 336 | |||||||||
Charge-offs: | |||||||||||
Loans: | |||||||||||
Wealth management mortgages | (1) | — | |||||||||
Other residential mortgages | (1) | (1) | |||||||||
Other loans | (16) | — | |||||||||
Other financial instruments | — | (1) | |||||||||
Total charge-offs | (18) | (2) | |||||||||
Recoveries: | |||||||||||
Loans: | |||||||||||
Financial institutions | 2 | — | |||||||||
Other residential mortgages | 6 | 5 | |||||||||
Other financial instruments | — | 1 | |||||||||
Total recoveries | 8 | 6 | |||||||||
Net (charge-offs) recoveries | (10) | 4 | |||||||||
Ending balance of allowance for credit losses | $ | 260 | $ | 501 | |||||||
Allowance for loan losses | $ | 196 | $ | 358 | |||||||
Allowance for lending-related commitments | 45 | 121 | |||||||||
Allowance for financial instruments (b) | 19 | 22 | |||||||||
Total allowance for credit losses | $ | 260 | $ | 501 | |||||||
Total loans | $ | 67,787 | $ | 56,469 | |||||||
Average loans outstanding | $ | 60,814 | $ | 55,228 | |||||||
Net (charge-offs) recoveries of loans to average loans outstanding | (0.02) | % | 0.01 | % | |||||||
Net (charge-offs) recoveries of loans to total allowance for loan losses and lending-related commitments | (4.15) | 0.84 | |||||||||
Allowance for loan losses as a percentage of total loans | 0.29 | 0.63 | |||||||||
Allowance for loan losses and lending-related commitments as a percentage of total loans | 0.36 | 0.85 | |||||||||
Net (charge-offs) to average loans by loan category (c): | |||||||||||
Wealth management mortgages: | (0.01) | % | N/A | ||||||||
Net (charge-offs) during the year | $ | (1) | N/A | ||||||||
Average loans outstanding | $ | 8,046 | N/A | ||||||||
Other loans: | (0.77) | % | N/A | ||||||||
Net (charge-offs) during the year | $ | (16) | N/A | ||||||||
Average loans outstanding | $ | 2,088 | N/A |
Results of Operations (continued) |
Nonperforming assets | Dec. 31, | |||||||
(dollars in millions) | 2021 | 2020 | ||||||
Nonperforming loans: | ||||||||
Other residential mortgages | $ | 39 | $ | 57 | ||||
Wealth management mortgages | 25 | 30 | ||||||
Commercial real estate | 54 | 1 | ||||||
Total nonperforming loans | 118 | 88 | ||||||
Other assets owned | 2 | 1 | ||||||
Total nonperforming assets | $ | 120 | $ | 89 | ||||
Nonperforming assets ratio | 0.18 | % | 0.16 | % | ||||
Allowance for loan losses/nonperforming loans | 166.1 | 406.8 | ||||||
Allowance for loan losses/nonperforming assets | 163.3 | 402.2 | ||||||
Allowance for loan losses and lending-related commitments/nonperforming loans | 204.2 | 544.3 | ||||||
Allowance for loan losses and lending-related commitments/nonperforming assets | 200.8 | 538.2 |
Results of Operations (continued) |
Uninsured time deposits at Dec. 31, 2021 | ||||||||
(in millions) | Domestic | Foreign | ||||||
Less than 3 months | $ | 168 | $ | 279 | ||||
3 to 6 months | 36 | 6 | ||||||
6-12 months | 21 | 12 | ||||||
Over 12 months | — | — | ||||||
Total | $ | 225 | $ | 297 |
Results of Operations (continued) |
Available funds | Dec. 31, 2021 | Dec. 31, 2020 | Average | ||||||||||||||
(dollars in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Cash and due from banks | $ | 6,061 | $ | 6,252 | $ | 5,922 | $ | 4,506 | $ | 5,084 | |||||||
Interest-bearing deposits with the Federal Reserve and other central banks | 102,467 | 141,775 | 113,346 | 94,432 | 61,739 | ||||||||||||
Interest-bearing deposits with banks | 16,630 | 17,300 | 20,757 | 19,165 | 14,666 | ||||||||||||
Federal funds sold and securities purchased under resale agreements | 29,607 | 30,907 | 28,530 | 30,768 | 36,705 | ||||||||||||
Total available funds | $ | 154,765 | $ | 196,234 | $ | 168,555 | $ | 148,871 | $ | 118,194 | |||||||
Total available funds as a percentage of total assets | 35 | % | 42 | % | 37 | % | 36 | % | 34 | % |
Results of Operations (continued) |
Credit ratings at Dec. 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 |
Debt issuances | |||||
(in millions) | 2021 | ||||
Senior notes: | |||||
0.75% senior notes due 2026 | $ | 700 | |||
0.85% senior notes due 2024 | 700 | ||||
0.50% senior notes due 2024 | 600 | ||||
1.05% senior notes due 2026 | 500 | ||||
1.65% senior notes due 2031 | 500 | ||||
1.65% senior notes due 2028 | 500 | ||||
1.80% senior notes due 2031 | 500 | ||||
1.90% senior notes due 2029 | 400 | ||||
SOFR +26bps senior notes due 2024 | 400 | ||||
SOFR +20bps senior notes due 2024 | 400 | ||||
Total debt issuances | $ | 5,200 |
Results of Operations (continued) |
Consolidated HQLA and LCR | Dec. 31, 2021 | ||||
(dollars in billions) | |||||
Securities (a) | $ | 124 | |||
Cash (b) | 102 | ||||
Total consolidated HQLA (c) | $ | 226 | |||
Total consolidated HQLA – average (c) | $ | 227 | |||
Average LCR | 109 | % |
Results of Operations (continued) |
Capital data (dollars in millions, except per share amounts; common shares in thousands) | 2021 | 2020 | ||||||
At Dec. 31: | ||||||||
BNY Mellon shareholders’ equity to total assets ratio | 9.7 | % | 9.8 | % | ||||
BNY Mellon common shareholders’ equity to total assets ratio | 8.6 | % | 8.8 | % | ||||
Total BNY Mellon shareholders’ equity | $ | 43,034 | $ | 45,801 | ||||
Total BNY Mellon common shareholders’ equity | $ | 38,196 | $ | 41,260 | ||||
BNY Mellon tangible common shareholders’ equity – Non-GAAP (a) | $ | 19,547 | $ | 22,563 | ||||
Book value per common share | $ | 47.50 | $ | 46.53 | ||||
Tangible book value per common share – Non-GAAP (a) | $ | 24.31 | $ | 25.44 | ||||
Closing stock price per common share | $ | 58.08 | $ | 42.44 | ||||
Market capitalization | $ | 46,705 | $ | 37,634 | ||||
Common shares outstanding | 804,145 | 886,764 | ||||||
Full-year: | ||||||||
Cash dividends per common share | $ | 1.30 | $ | 1.24 | ||||
Common dividend payout ratio (b) | 32 | % | 33 | % | ||||
Common dividend yield | 2.2 | % | 2.9 | % |
Results of Operations (continued) |
Results of Operations (continued) |
Consolidated and largest bank subsidiary regulatory capital ratios | Dec. 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 | % | 11.4 | % | 13.1 | % | |||||||||||||||
Tier 1 capital ratio | 6 | % | 10 | 14.2 | 15.8 | ||||||||||||||||||
Total capital ratio | 10 | 12 | 15.0 | 16.7 | |||||||||||||||||||
Standardized Approach: | |||||||||||||||||||||||
CET1 ratio | N/A | (c) | 8.5 | % | 11.2 | % | 13.4 | % | |||||||||||||||
Tier 1 capital ratio | 6 | % | 10 | 14.0 | 16.1 | ||||||||||||||||||
Total capital ratio | 10 | 12 | 14.9 | 17.1 | |||||||||||||||||||
Tier 1 leverage ratio | N/A | (c) | 4 | 5.5 | 6.3 | ||||||||||||||||||
SLR (d)(e) | N/A | (c) | 5 | 6.6 | 8.6 | ||||||||||||||||||
The Bank of New York Mellon regulatory capital ratios: (b) | |||||||||||||||||||||||
Advanced Approaches: | |||||||||||||||||||||||
CET1 ratio | 6.5 | % | 7 | % | 16.5 | % | 17.1 | % | |||||||||||||||
Tier 1 capital ratio | 8 | 8.5 | 16.5 | 17.1 | |||||||||||||||||||
Total capital ratio | 10 | 10.5 | 16.5 | 17.3 | |||||||||||||||||||
Tier 1 leverage ratio | 5 | 4 | 6.0 | 6.4 | |||||||||||||||||||
SLR (d) | 6 | 3 | 7.6 | 8.5 |
Results of Operations (continued) |
Capital components and risk-weighted assets | Dec. 31, | |||||||
(in millions) | 2021 | 2020 | ||||||
CET1: | ||||||||
Common shareholders’ equity | $ | 38,196 | $ | 41,260 | ||||
Adjustments for: | ||||||||
Goodwill and intangible assets (a) | (18,649) | (18,697) | ||||||
Net pension fund assets | (400) | (319) | ||||||
Equity method investments | (300) | (306) | ||||||
Deferred tax assets | (55) | (54) | ||||||
Other | (46) | (9) | ||||||
Total CET1 | 18,746 | 21,875 | ||||||
Other Tier 1 capital: | ||||||||
Preferred stock | 4,838 | 4,541 | ||||||
Other | (99) | (106) | ||||||
Total Tier 1 capital | $ | 23,485 | $ | 26,310 | ||||
Tier 2 capital: | ||||||||
Subordinated debt | $ | 1,248 | $ | 1,248 | ||||
Allowance for credit losses | 250 | 490 | ||||||
Other | (11) | (10) | ||||||
Total Tier 2 capital – Standardized Approach | 1,487 | 1,728 | ||||||
Excess of expected credit losses | — | 247 | ||||||
Less: Allowance for credit losses | 250 | 490 | ||||||
Total Tier 2 capital – Advanced Approaches | $ | 1,237 | $ | 1,485 | ||||
Total capital: | ||||||||
Standardized Approach | $ | 24,972 | $ | 28,038 | ||||
Advanced Approaches | $ | 24,722 | $ | 27,795 | ||||
Risk-weighted assets: | ||||||||
Standardized Approach | $ | 167,608 | $ | 163,848 | ||||
Advanced Approaches: | ||||||||
Credit Risk | $ | 98,310 | $ | 98,262 | ||||
Market Risk | 3,069 | 4,226 | ||||||
Operational Risk | 63,688 | 63,938 | ||||||
Total Advanced Approaches | $ | 165,067 | $ | 166,426 | ||||
Average assets for Tier 1 leverage ratio | $ | 430,102 | $ | 417,982 | ||||
Total leverage exposure for SLR | $ | 354,033 | $ | 304,823 |
CET1 generation | 2021 | ||||
(in millions) | |||||
CET1 – Beginning of period | $ | 21,875 | |||
Net income applicable to common shareholders of The Bank of New York Mellon Corporation | 3,552 | ||||
Goodwill and intangible assets, net of related deferred tax liabilities | 48 | ||||
Gross CET1 generated | 3,600 | ||||
Capital deployed: | |||||
Common stock repurchases | (4,567) | ||||
Common stock dividend payments | (1,126) | ||||
Total capital deployed | (5,693) | ||||
Other comprehensive loss: | |||||
Unrealized loss on assets available-for-sale | (1,151) | ||||
Foreign currency translation | (378) | ||||
Unrealized loss on cash flow hedges | (6) | ||||
Defined benefit plans | 307 | ||||
Total other comprehensive loss | (1,228) | ||||
Additional paid-in capital (a) | 305 | ||||
Other additions (deductions): | |||||
Net pension fund assets | (81) | ||||
Embedded goodwill | 6 | ||||
Deferred tax assets | (1) | ||||
Other | (37) | ||||
Total other deductions | (113) | ||||
Net CET1 deployed | (3,129) | ||||
CET1 – End of period | $ | 18,746 |
Results of Operations (continued) |
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 | Dec. 31, 2021 | ||||||||||
Minimum required | Minimum ratios with buffers | ||||||||||
Ratios | |||||||||||
Eligible external TLAC: | |||||||||||
As a percentage of RWA | 18.0 | % | 21.5 | % | 28.0 | % | |||||
As a percentage of total leverage exposure | 7.5 | % | 9.5 | % | 13.3 | % | |||||
Eligible external LTD: | |||||||||||
As a percentage of RWA | 7.5 | % | N/A | 11.9 | % | ||||||
As a percentage of total leverage exposure | 4.5 | % | N/A | 5.6 | % |
Results of Operations (continued) |
Share repurchases – fourth 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 Dec. 31, 2021 | ||||||||||||||||||||||||
(dollars in millions, except per share amounts; common shares in thousands) | Total shares repurchased | Average price per share | ||||||||||||||||||||||||
October 2021 | 17,359 | $ | 55.95 | 17,359 | $ | 3,028 | ||||||||||||||||||||
November 2021 | 4,547 | 59.48 | 4,547 | 2,757 | ||||||||||||||||||||||
December 2021 | 126 | 56.93 | 126 | 2,750 | ||||||||||||||||||||||
Fourth quarter of 2021 (a) | 22,032 | $ | 56.68 | 22,032 | $ | 2,750 | (b) |
VaR (a) | 2021 | Dec. 31, 2021 | ||||||||||||
(in millions) | Average | Minimum | Maximum | |||||||||||
Interest rate | $ | 2.1 | $ | 1.5 | $ | 3.5 | $ | 1.7 | ||||||
Foreign exchange | 2.6 | 1.9 | 4.1 | 2.7 | ||||||||||
Equity | 0.1 | — | 0.9 | 0.1 | ||||||||||
Credit | 1.7 | 1.1 | 2.8 | 1.7 | ||||||||||
Diversification | (3.2) | N/M | N/M | (2.7) | ||||||||||
Overall portfolio | 3.3 | 2.4 | 5.2 | 3.5 |
Results of Operations (continued) |
VaR (a) | 2020 | Dec. 31, 2020 | ||||||||||||
(in millions) | Average | Minimum | Maximum | |||||||||||
Interest rate | $ | 3.1 | $ | 1.7 | $ | 11.3 | $ | 1.8 | ||||||
Foreign exchange | 2.9 | 1.7 | 6.3 | 3.0 | ||||||||||
Equity | 0.6 | — | 2.3 | 0.7 | ||||||||||
Credit | 2.7 | 1.2 | 12.1 | 2.1 | ||||||||||
Diversification | (4.8) | N/M | N/M | (3.7) | ||||||||||
Overall portfolio | 4.5 | 2.3 | 14.3 | 3.9 |
Results of Operations (continued) |
Results of Operations (continued) |
Estimated changes in net interest revenue (in millions) | Dec. 31, 2021 | Sept. 30, 2021 | Dec. 31, 2020 | ||||||||
Up 100 bps rate shock vs. baseline | $ | 688 | $ | 840 | $ | 777 | |||||
Long-term up 100 bps, short-term unchanged | 204 | 239 | 239 | ||||||||
Short-term up 100 bps, long-term unchanged | 483 | 601 | 538 | ||||||||
Long-term down 50 bps, short-term unchanged | (98) | (117) | (131) | ||||||||
Down 100 bp rate shock vs. baseline | 392 | 794 | 687 |
Estimated changes in EVE | Dec. 31, 2021 | ||||
Rate change: | |||||
Up 200 bps vs. baseline | (8.9) | % | |||
Up 100 bps vs. baseline | (2.0) | % |
Risk Management |
Risk Management (continued) |
Risk Committee of the Board of Directors | Audit Committee of the Board of Directors | |||||||||||||||||||
Senior Risk and Control Committee (“SRCC”) | ||||||||||||||||||||
Anti-Money Laundering Oversight Committee | Asia Pacific Senior Risk Control Committee | Asset Liability Committee | Balance Sheet Risk Committee | |||||||||||||||||
Compliance and Ethics Oversight Committee | Contract Management Committee | Credit Portfolio Management Committees | EMEA Senior Risk and Control Committee | |||||||||||||||||
Enterprise Program Management Committee | Operational Risk Committee | Pershing Business Risk Committee | Product Approval and Review Committee | |||||||||||||||||
Regulatory Oversight Committee | Resolvability Steering Committee | Strategic Risk Committee | Technology Risk Committee |
Risk Management (continued) |
Risk Management (continued) |
Type of risk | Description | ||||
Operational | The risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. Operational risk includes compliance and technology risks. | ||||
Market | The potential loss in value for the BNY Mellon financial portfolio caused by adverse movements for market prices, rates, spreads. | ||||
Credit | The risk of loss if any of our borrowers or other counterparties were to default on their obligations to us. Credit risk is present in the majority of our assets, but primarily concentrated in the loan and securities books, as well as off-balance sheet exposures such as lending commitments, letters of credit and securities lending indemnifications. | ||||
Liquidity | The risk that BNY Mellon cannot meet its cash and collateral obligations at a reasonable cost for both expected and unexpected cash flows, without adversely affecting daily operations or financial conditions. Liquidity risk can arise from cash flow mismatches, market constraints from the inability to convert assets to cash, the inability to raise cash in the markets, deposit run-off or contingent liquidity events. | ||||
Model | The potential loss arising from incorrectly designing / applying a model approach or inaccuracies caused by market, credit or liquidity stress. | ||||
Strategic | The risk arising from adverse business decisions, poor implementation of business decisions or lack of responsiveness to changes in the financial industry and operating environment. Strategic and/or business risks may also arise from the acceptance of new businesses, the introduction or modification of products, strategic finance and risk management decisions, business process changes, complex transactions, acquisitions/divestitures/joint ventures and major capital expenditures/investments. |
Risk Management (continued) |
Risk Management (continued) |
Risk Management (continued) |
Supervision and Regulation |
Supervision and Regulation (continued) |
Supervision and Regulation (continued) |
Supervision and Regulation (continued) |
Supervision and Regulation (continued) |
Supervision and Regulation (continued) |
Supervision and Regulation (continued) |
Supervision and Regulation (continued) |
Supervision and Regulation (continued) |
Supervision and Regulation (continued) |
Supervision and Regulation (continued) |
Supervision and Regulation (continued) |
Supervision and Regulation (continued) |
Supervision and Regulation (continued) |
Supervision and Regulation (continued) |
Supervision and Regulation (continued) |
Supervision and Regulation (continued) |
Other Matters |
Risk Factors |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Risk Factors (continued) |
Supplemental Information (unaudited) |
Return on common equity and tangible common equity reconciliation | 2021 | 2020 | 2019 | ||||||||
(dollars in millions) | |||||||||||
Net income applicable to common shareholders of The Bank of New York Mellon Corporation – GAAP | $ | 3,552 | $ | 3,423 | $ | 4,272 | |||||
Add: Amortization of intangible assets | 82 | 104 | 117 | ||||||||
Less: Tax impact of amortization of intangible assets | 20 | 25 | 28 | ||||||||
Adjusted net income applicable to common shareholders of The Bank of New York Mellon Corporation, excluding amortization of intangible assets – Non-GAAP | $ | 3,614 | $ | 3,502 | $ | 4,361 | |||||
Average common shareholders’ equity | $ | 39,695 | $ | 39,200 | $ | 37,505 | |||||
Less: Average goodwill | 17,492 | 17,331 | 17,329 | ||||||||
Average intangible assets | 2,979 | 3,051 | 3,162 | ||||||||
Add: Deferred tax liability – tax deductible goodwill | 1,178 | 1,144 | 1,098 | ||||||||
Deferred tax liability – intangible assets | 676 | 667 | 670 | ||||||||
Average tangible common shareholders’ equity – Non-GAAP | $ | 21,078 | $ | 20,629 | $ | 18,782 | |||||
Return on common shareholders’ equity – GAAP | 8.9 | % | 8.7 | % | 11.4 | % | |||||
Return on tangible common shareholders’ equity – Non-GAAP | 17.1 | % | 17.0 | % | 23.2 | % |
Supplemental Information (unaudited) (continued) |
Book value and tangible book value per common share reconciliation | Dec. 31, | ||||||||||
(dollars in millions, except per share amounts and unless otherwise noted) | 2021 | 2020 | 2019 | ||||||||
BNY Mellon shareholders’ equity at year end – GAAP | $ | 43,034 | $ | 45,801 | $ | 41,483 | |||||
Less: Preferred stock | 4,838 | 4,541 | 3,542 | ||||||||
BNY Mellon common shareholders’ equity at year end – GAAP | 38,196 | 41,260 | 37,941 | ||||||||
Less: Goodwill | 17,512 | 17,496 | 17,386 | ||||||||
Intangible assets | 2,991 | 3,012 | 3,107 | ||||||||
Add: Deferred tax liability – tax deductible goodwill | 1,178 | 1,144 | 1,098 | ||||||||
Deferred tax liability – intangible assets | 676 | 667 | 670 | ||||||||
BNY Mellon tangible common shareholders’ equity at year end – Non-GAAP | $ | 19,547 | $ | 22,563 | $ | 19,216 | |||||
Year-end common shares outstanding (in thousands) | 804,145 | 886,764 | 900,683 | ||||||||
Book value per common share – GAAP | $ | 47.50 | $ | 46.53 | $ | 42.12 | |||||
Tangible book value per common share – Non-GAAP | $ | 24.31 | $ | 25.44 | $ | 21.33 |
Fee revenue reconciliation | 2021 vs. | ||||||||||
(dollars in millions) | 2021 | 2020 | 2020 | ||||||||
Fee revenue | $ | 12,977 | $ | 12,515 | 4 | % | |||||
Less: Money market fee waivers | (1,027) | (368) | |||||||||
Fee revenue, excluding money market fee waivers – Non-GAAP | $ | 14,004 | $ | 12,883 | 9 | % |
Constant currency reconciliation – Consolidated | 2021 vs. | ||||||||||
(dollars in millions) | 2021 | 2020 | 2020 | ||||||||
Investment management and performance fees – GAAP | $ | 3,588 | $ | 3,367 | 7 | % | |||||
Impact of changes in foreign currency exchange rates | — | 70 | |||||||||
Adjusted investment management and performance fees – Non-GAAP | $ | 3,588 | $ | 3,437 | 4 | % |
Constant currency reconciliation – Investment and Wealth Management business segment | 2021 vs. | ||||||||||
(dollars in millions) | 2021 | 2020 | 2020 | ||||||||
Investment management and performance fees – GAAP | $ | 3,590 | $ | 3,368 | 7 | % | |||||
Impact of changes in foreign currency exchange rates | — | 70 | |||||||||
Adjusted investment management and performance fees – Non-GAAP | $ | 3,590 | $ | 3,438 | 4 | % |
Supplemental Information (unaudited) (continued) |
Pre-tax operating margin reconciliation – Investment and Wealth Management business segment | |||||||||||
(dollars in millions) | 2021 | 2020 | 2019 | ||||||||
Income before income taxes – GAAP | $ | 1,230 | $ | 971 | $ | 1,061 | |||||
Total revenue – GAAP | $ | 4,042 | $ | 3,692 | $ | 3,707 | |||||
Less: Distribution and servicing expense | 300 | 338 | 376 | ||||||||
Adjusted total revenue, net of distribution and servicing expense – Non-GAAP | $ | 3,742 | $ | 3,354 | $ | 3,331 | |||||
Pre-tax operating margin – GAAP (a) | 30 | % | 26 | % | 29 | % | |||||
Adjusted pre-tax operating margin, net of distribution and servicing expense – Non-GAAP (a) | 33 | % | 29 | % | 32 | % |
Supplemental Information (unaudited) (continued) |
Rate/volume analysis (a) | 2021 over (under) 2020 | 2020 over (under) 2019 | |||||||||||||||||||||||||||
Due to change in | Due to change in | ||||||||||||||||||||||||||||
(in millions) | Average balance | Average rate | Net change | Average balance | Average rate | Net change | |||||||||||||||||||||||
Interest revenue | |||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||
Interest-bearing deposits with the Federal Reserve and other central banks: | |||||||||||||||||||||||||||||
Domestic offices | $ | 5 | $ | (66) | $ | (61) | $ | 260 | $ | (572) | $ | (312) | |||||||||||||||||
Foreign offices | (29) | (37) | (66) | 2 | (88) | (86) | |||||||||||||||||||||||
Total interest-bearing deposits with the Federal Reserve and other central banks | (24) | (103) | (127) | 262 | (660) | (398) | |||||||||||||||||||||||
Interest-bearing deposits with banks (primarily foreign banks) | 10 | (96) | (86) | 65 | (196) | (131) | |||||||||||||||||||||||
Federal funds sold and securities purchased under resale agreements | (37) | (388) | (425) | (302) | (1,307) | (1,609) | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Domestic offices | 205 | (255) | (50) | 123 | (640) | (517) | |||||||||||||||||||||||
Foreign offices | (76) | (58) | (134) | 6 | (136) | (130) | |||||||||||||||||||||||
Total loans | 129 | (313) | (184) | 129 | (776) | (647) | |||||||||||||||||||||||
Securities: | |||||||||||||||||||||||||||||
U.S. government obligations | 64 | (81) | (17) | 117 | (248) | (b) | (131) | (b) | |||||||||||||||||||||
U.S. government agency obligations | (49) | (294) | (343) | 202 | (537) | (b) | (335) | (b) | |||||||||||||||||||||
State and political subdivisions (c) | 26 | (8) | 18 | (4) | (6) | (b) | (10) | (b) | |||||||||||||||||||||
Other securities: | |||||||||||||||||||||||||||||
Domestic offices (c) | 55 | (22) | 33 | 112 | (195) | (b) | (83) | (b) | |||||||||||||||||||||
Foreign offices | 6 | (95) | (89) | 73 | (109) | (36) | |||||||||||||||||||||||
Total other securities (c) | 61 | (117) | (56) | 185 | (304) | (b) | (119) | (b) | |||||||||||||||||||||
Total investment securities (c) | 102 | (500) | (398) | 500 | (1,095) | (595) | |||||||||||||||||||||||
Trading securities (primarily domestic) (c) | (5) | (35) | (40) | 29 | (92) | (63) | |||||||||||||||||||||||
Total securities (c) | 97 | (535) | (438) | 529 | (1,187) | (658) | |||||||||||||||||||||||
Total interest revenue (c) | $ | 175 | $ | (1,435) | $ | (1,260) | $ | 683 | $ | (4,126) | $ | (3,443) | |||||||||||||||||
Interest expense | |||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||
Domestic offices | $ | 26 | $ | (229) | $ | (203) | $ | 250 | $ | (1,032) | $ | (782) | |||||||||||||||||
Foreign offices | (1) | (132) | (133) | 81 | (732) | (651) | |||||||||||||||||||||||
Total interest-bearing deposits | 25 | (361) | (336) | 331 | (1,764) | (1,433) | |||||||||||||||||||||||
Federal funds purchased and securities sold under repurchase agreements | (21) | (266) | (287) | 234 | (1,388) | (1,154) | |||||||||||||||||||||||
Trading liabilities | 2 | (9) | (7) | 11 | (31) | (20) | |||||||||||||||||||||||
Other borrowed funds: | |||||||||||||||||||||||||||||
Domestic offices | (16) | 6 | (10) | (22) | (22) | (44) | |||||||||||||||||||||||
Foreign offices | — | 2 | 2 | — | 1 | 1 | |||||||||||||||||||||||
Total other borrowed funds | (16) | 8 | (8) | (22) | (21) | (43) | |||||||||||||||||||||||
Commercial paper | (4) | (3) | (7) | (21) | (27) | (48) | |||||||||||||||||||||||
Payables to customers and broker-dealers | (1) | (29) | (30) | 30 | (240) | (210) | |||||||||||||||||||||||
Long-term debt | (24) | (206) | (230) | (39) | (281) | (320) | |||||||||||||||||||||||
Total interest expense | $ | (39) | $ | (866) | $ | (905) | $ | 524 | $ | (3,752) | $ | (3,228) | |||||||||||||||||
Changes in net interest revenue (c) | $ | 214 | $ | (569) | $ | (355) | $ | 159 | $ | (374) | $ | (215) |
Forward-looking Statements | ||
Forward-looking Statements (continued) | ||
Glossary |
Report of Management on Internal Control Over Financial Reporting |
The Bank of New York Mellon Corporation (and its subsidiaries) |
Year ended Dec. 31, | |||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||
Fee and other revenue | |||||||||||
Investment services fees | $ | 8,284 | $ | 8,047 | $ | 7,900 | |||||
Investment management and performance fees | 3,588 | 3,367 | 3,389 | ||||||||
Foreign exchange revenue (a) | 799 | 774 | 564 | ||||||||
Financing-related fees | 194 | 212 | 196 | ||||||||
Distribution and servicing fees | 112 | 115 | 129 | ||||||||
Total fee revenue (a) | 12,977 | 12,515 | 12,178 | ||||||||
Investment and other revenue (a) | 336 | 316 | 1,096 | ||||||||
Total fee and other revenue | 13,313 | 12,831 | 13,274 | ||||||||
Net interest revenue | |||||||||||
Interest revenue | 2,845 | 4,109 | 7,548 | ||||||||
Interest expense | 227 | 1,132 | 4,360 | ||||||||
Net interest revenue | 2,618 | 2,977 | 3,188 | ||||||||
Total revenue | 15,931 | 15,808 | 16,462 | ||||||||
Provision for credit losses | (231) | 336 | (25) | ||||||||
Noninterest expense | |||||||||||
Staff | 6,337 | 5,966 | 6,063 | ||||||||
Software and equipment | 1,478 | 1,370 | 1,222 | ||||||||
Professional, legal and other purchased services | 1,459 | 1,403 | 1,345 | ||||||||
Sub-custodian and clearing | 505 | 460 | 450 | ||||||||
Net occupancy | 498 | 581 | 564 | ||||||||
Distribution and servicing | 298 | 336 | 374 | ||||||||
Bank assessment charges | 133 | 124 | 125 | ||||||||
Business development | 107 | 105 | 213 | ||||||||
Amortization of intangible assets | 82 | 104 | 117 | ||||||||
Other | 617 | 555 | 427 | ||||||||
Total noninterest expense | 11,514 | 11,004 | 10,900 | ||||||||
Income | |||||||||||
Income before income taxes | 4,648 | 4,468 | 5,587 | ||||||||
Provision for income taxes | 877 | 842 | 1,120 | ||||||||
Net income | 3,771 | 3,626 | 4,467 | ||||||||
Net (income) attributable to noncontrolling interests related to consolidated investment management funds | (12) | (9) | (26) | ||||||||
Net income applicable to shareholders of The Bank of New York Mellon Corporation | 3,759 | 3,617 | 4,441 | ||||||||
Preferred stock dividends | (207) | (194) | (169) | ||||||||
Net income applicable to common shareholders of The Bank of New York Mellon Corporation | $ | 3,552 | $ | 3,423 | $ | 4,272 |
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 | Year ended Dec. 31, | ||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||
Net income applicable to common shareholders of The Bank of New York Mellon Corporation | $ | 3,552 | $ | 3,423 | $ | 4,272 | |||||
Less: Earnings allocated to participating securities | 2 | 6 | 18 | ||||||||
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 | $ | 3,550 | $ | 3,417 | $ | 4,254 |
Earnings per share applicable to common shareholders of The Bank of New York Mellon Corporation | Year ended Dec. 31, | ||||||||||
(in dollars) | 2021 | 2020 | 2019 | ||||||||
Basic | $ | 4.17 | $ | 3.84 | $ | 4.53 | |||||
Diluted | $ | 4.14 | $ | 3.83 | $ | 4.51 |
The Bank of New York Mellon Corporation (and its subsidiaries) |
Year ended Dec. 31, | |||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||
Net income | $ | 3,771 | $ | 3,626 | $ | 4,467 | |||||
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments | (376) | 508 | 151 | ||||||||
Unrealized (loss) gain on assets available-for-sale: | |||||||||||
Unrealized (loss) gain arising during the period | (1,147) | 1,202 | 512 | ||||||||
Reclassification adjustment | (4) | (25) | 14 | ||||||||
Total unrealized (loss) gain on assets available-for-sale | (1,151) | 1,177 | 526 | ||||||||
Defined benefit plans: | |||||||||||
Prior service cost arising during the period | — | — | (1) | ||||||||
Net gain (loss) arising during the period | 219 | (107) | (87) | ||||||||
Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost | 88 | 77 | 34 | ||||||||
Total defined benefit plans | 307 | (30) | (54) | ||||||||
Net unrealized (loss) gain on cash flow hedges | (6) | 5 | 3 | ||||||||
Total other comprehensive (loss) income, net of tax (a) | (1,226) | 1,660 | 626 | ||||||||
Total comprehensive income | 2,545 | 5,286 | 5,093 | ||||||||
Net (income) attributable to noncontrolling interests | (12) | (9) | (26) | ||||||||
Other comprehensive (income) attributable to noncontrolling interests | (2) | (2) | (3) | ||||||||
Comprehensive income applicable to shareholders of The Bank of New York Mellon Corporation | $ | 2,531 | $ | 5,275 | $ | 5,064 |
The Bank of New York Mellon Corporation (and its subsidiaries) |
Dec. 31, | ||||||||
(dollars in millions, except per share amounts) | 2021 | 2020 | ||||||
Assets | ||||||||
Cash and due from banks, net of allowance for credit losses of $3 and $4 | $ | 6,061 | $ | 6,252 | ||||
Interest-bearing deposits with the Federal Reserve and other central banks | 102,467 | 141,775 | ||||||
Interest-bearing deposits with banks, net of allowance for credit losses of $2 and $3 (includes restricted of $3,822 and $3,167) | 16,630 | 17,300 | ||||||
Federal funds sold and securities purchased under resale agreements | 29,607 | 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 $56,775 and $49,224) | 56,866 | 47,946 | ||||||
Available-for-sale, at fair value (amortized cost of $100,774 and $105,141, net of allowance for credit losses of $10 and $11) | 101,839 | 108,495 | ||||||
Total securities | 158,705 | 156,441 | ||||||
Trading assets | 16,577 | 15,272 | ||||||
Loans | 67,787 | 56,469 | ||||||
Allowance for credit losses | (196) | (358) | ||||||
Net loans | 67,591 | 56,111 | ||||||
Premises and equipment | 3,431 | 3,602 | ||||||
Accrued interest receivable | 457 | 510 | ||||||
Goodwill | 17,512 | 17,496 | ||||||
Intangible assets | 2,991 | 3,012 | ||||||
Other assets, net of allowance for credit losses on accounts receivable of $4 and $4 (includes $1,187 and $1,009, at fair value) (a) | 22,409 | 20,955 | ||||||
Total assets | $ | 444,438 | $ | 469,633 | ||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest-bearing (principally U.S. offices) | $ | 93,695 | $ | 83,854 | ||||
Interest-bearing deposits in U.S. offices | 120,903 | 133,479 | ||||||
Interest-bearing deposits in non-U.S. offices | 105,096 | 124,212 | ||||||
Total deposits | 319,694 | 341,545 | ||||||
Federal funds purchased and securities sold under repurchase agreements | 11,566 | 11,305 | ||||||
Trading liabilities | 5,469 | 6,031 | ||||||
Payables to customers and broker-dealers | 25,150 | 25,085 | ||||||
Commercial paper | — | — | ||||||
Other borrowed funds | 749 | 350 | ||||||
Accrued taxes and other expenses | 5,767 | 5,696 | ||||||
Other liabilities (including allowance for credit losses on lending-related commitments of $45 and $121, also includes $496 and $1,110, at fair value) (a) | 6,721 | 7,517 | ||||||
Long-term debt (includes $— and $400, at fair value) | 25,931 | 25,984 | ||||||
Total liabilities | 401,047 | 423,513 | ||||||
Temporary equity | ||||||||
Redeemable noncontrolling interests | 161 | 176 | ||||||
Permanent equity | ||||||||
Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 48,826 and 45,826 shares | 4,838 | 4,541 | ||||||
Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,389,397,912 and 1,382,306,327 shares | 14 | 14 | ||||||
Additional paid-in capital | 28,128 | 27,823 | ||||||
Retained earnings | 36,667 | 34,241 | ||||||
Accumulated other comprehensive loss, net of tax | (2,213) | (985) | ||||||
Less: Treasury stock of 585,252,546 and 495,542,796 common shares, at cost | (24,400) | (19,833) | ||||||
Total The Bank of New York Mellon Corporation shareholders’ equity | 43,034 | 45,801 | ||||||
Nonredeemable noncontrolling interests of consolidated investment management funds | 196 | 143 | ||||||
Total permanent equity | 43,230 | 45,944 | ||||||
Total liabilities, temporary equity and permanent equity | $ | 444,438 | $ | 469,633 |
The Bank of New York Mellon Corporation (and its subsidiaries) |
Year ended Dec. 31, | |||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||
Operating activities | |||||||||||
Net income | $ | 3,771 | $ | 3,626 | $ | 4,467 | |||||
Net (income) attributable to noncontrolling interests | (12) | (9) | (26) | ||||||||
Net income applicable to shareholders of The Bank of New York Mellon Corporation | 3,759 | 3,617 | 4,441 | ||||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||||||||
Provision for credit losses (a) | (231) | 336 | (25) | ||||||||
Pension plan contributions | (6) | (25) | (45) | ||||||||
Depreciation and amortization | 1,867 | 1,630 | 1,315 | ||||||||
Deferred tax (benefit) | 257 | (193) | (69) | ||||||||
Net securities (gains) losses | (5) | (33) | 18 | ||||||||
Change in trading assets and liabilities | (1,898) | (496) | (5,167) | ||||||||
Change in accruals and other, net | (905) | 202 | (372) | ||||||||
Net cash provided by operating activities | 2,838 | 5,038 | 96 | ||||||||
Investing activities | |||||||||||
Change in interest-bearing deposits with banks | 1,225 | (1,393) | (970) | ||||||||
Change in interest-bearing deposits with the Federal Reserve and other central banks | 35,073 | (42,857) | (26,763) | ||||||||
Purchases of securities held-to-maturity | (8,921) | (29,651) | (8,822) | ||||||||
Paydowns of securities held-to-maturity | 11,339 | 9,291 | 5,149 | ||||||||
Maturities of securities held-to-maturity | 1,872 | 7,097 | 3,192 | ||||||||
Purchases of securities available-for-sale | (54,239) | (68,430) | (46,435) | ||||||||
Sales of securities available-for-sale | 13,545 | 13,316 | 11,444 | ||||||||
Paydowns of securities available-for-sale | 12,775 | 10,476 | 7,516 | ||||||||
Maturities of securities available-for-sale | 17,221 | 27,592 | 26,504 | ||||||||
Net change in loans | (11,350) | (1,271) | 1,486 | ||||||||
Sales of loans and other real estate | 1 | 15 | 147 | ||||||||
Change in federal funds sold and securities purchased under resale agreements | 1,233 | (708) | 16,615 | ||||||||
Net change in seed capital investments | 171 | 18 | 74 | ||||||||
Purchases of premises and equipment/capitalized software | (1,215) | (1,222) | (1,210) | ||||||||
Proceeds from the sale of premises and equipment | 34 | — | — | ||||||||
Proceeds from the sale of an equity method investment | — | — | 849 | ||||||||
Acquisitions, net of cash | (170) | — | — | ||||||||
Dispositions, net of cash | 8 | — | — | ||||||||
Other, net | 1,070 | (728) | 676 | ||||||||
Net cash provided by (used for) investing activities | 19,672 | (78,455) | (10,548) | ||||||||
Financing activities | |||||||||||
Change in deposits | (17,896) | 77,523 | 20,663 | ||||||||
Change in federal funds purchased and securities sold under repurchase agreements | 418 | (361) | (2,822) | ||||||||
Change in payables to customers and broker-dealers | 128 | 5,977 | (981) | ||||||||
Change in other borrowed funds | 397 | (270) | (2,651) | ||||||||
Change in commercial paper | — | (3,959) | 2,020 | ||||||||
Net proceeds from the issuance of long-term debt | 5,186 | 2,993 | 2,993 | ||||||||
Repayments of long-term debt | (4,650) | (5,200) | (5,250) | ||||||||
Proceeds from the exercise of stock options | 50 | 46 | 65 | ||||||||
Issuance of common stock | 13 | 12 | 21 | ||||||||
Issuance of preferred stock | 1,287 | 1,567 | — | ||||||||
Treasury stock acquired | (4,567) | (989) | (3,327) | ||||||||
Preferred stock redemption | (1,000) | (583) | — | ||||||||
Common cash dividends paid | (1,126) | (1,117) | (1,120) | ||||||||
Preferred cash dividends paid | (197) | (179) | (169) | ||||||||
Amortization of preferred stock discount | 10 | 15 | — | ||||||||
Other, net | (15) | 33 | 17 | ||||||||
Net cash (used for) provided by financing activities | (21,962) | 75,508 | 9,459 | ||||||||
Effect of exchange rate changes on cash | (84) | 61 | 2 | ||||||||
Change in cash and due from banks and restricted cash | |||||||||||
Change in cash and due from banks and restricted cash | 464 | 2,152 | (991) | ||||||||
Cash and due from banks and restricted cash at beginning of period | 9,419 | 7,267 | 8,258 | ||||||||
Cash and due from banks and restricted cash at end of period | $ | 9,883 | $ | 9,419 | $ | 7,267 | |||||
Cash and due from banks and restricted cash | |||||||||||
Cash and due from banks at end of period (unrestricted cash) | $ | 6,061 | $ | 6,252 | $ | 4,830 | |||||
Restricted cash at end of period | 3,822 | 3,167 | 2,437 | ||||||||
Cash and due from banks and restricted cash at end of period | $ | 9,883 | $ | 9,419 | $ | 7,267 | |||||
Supplemental disclosures | |||||||||||
Interest paid | $ | 233 | $ | 1,236 | $ | 4,400 | |||||
Income taxes paid | 473 | 1,341 | 989 | ||||||||
Income taxes refunded | 42 | 60 | 669 |
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 | — | — | — | — | — | — | — | — | 48 | |||||||||||||||||||||||
Redemption of subsidiary shares from noncontrolling interests | — | — | — | — | — | — | — | — | (94) | |||||||||||||||||||||||
Other net changes in noncontrolling interests | — | — | (36) | — | — | — | 41 | 5 | 29 | |||||||||||||||||||||||
Net income | — | — | — | 3,759 | — | — | 12 | 3,771 | — | |||||||||||||||||||||||
Other comprehensive (loss) income | — | — | — | — | (1,228) | — | — | (1,228) | 2 | |||||||||||||||||||||||
Dividends: | ||||||||||||||||||||||||||||||||
Common stock at $1.30 per share (b) | — | — | — | (1,126) | — | — | — | (1,126) | — | |||||||||||||||||||||||
Preferred stock | — | — | — | (197) | — | — | — | (197) | — | |||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | (4,567) | — | (4,567) | — | |||||||||||||||||||||||
Common stock issued under employee benefit plans | — | — | 18 | — | — | — | — | 18 | — | |||||||||||||||||||||||
Preferred stock redemption | (1,000) | — | — | — | — | — | — | (1,000) | — | |||||||||||||||||||||||
Preferred stock issued | 1,287 | — | — | — | — | — | — | 1,287 | — | |||||||||||||||||||||||
Stock awards and options exercised | — | — | 323 | — | — | — | — | 323 | — | |||||||||||||||||||||||
Amortization of preferred stock discount | 10 | — | — | (10) | — | — | — | — | — | |||||||||||||||||||||||
Balance at Dec. 31, 2021 | $ | 4,838 | $ | 14 | $ | 28,128 | $ | 36,667 | $ | (2,213) | $ | (24,400) | $ | 196 | $ | 43,230 | (a) | $ | 161 |
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 | |||||||||||||
— | — | — | 45 | (5) | — | — | 40 | — | ||||||||||||||||||||||||
Adjusted balance at Jan. 1, 2020 | 3,542 | 14 | 27,515 | 31,939 | (2,643) | (18,844) | 102 | 41,625 | 143 | |||||||||||||||||||||||
Shares issued to shareholders of noncontrolling interests | — | — | — | — | — | — | — | — | 80 | |||||||||||||||||||||||
Redemption of subsidiary shares from noncontrolling interests | — | — | — | — | — | — | — | — | (31) | |||||||||||||||||||||||
Other net changes in noncontrolling interests | — | — | 12 | — | — | — | 32 | 44 | (18) | |||||||||||||||||||||||
Net income | — | — | — | 3,617 | — | — | 9 | 3,626 | — | |||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 1,654 | — | — | 1,654 | 2 | |||||||||||||||||||||||
Dividends: | ||||||||||||||||||||||||||||||||
Common stock at $1.24 per share (b) | — | — | — | (1,117) | — | — | — | (1,117) | — | |||||||||||||||||||||||
Preferred stock | — | — | — | (179) | — | — | — | (179) | — | |||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | (989) | — | (989) | — | |||||||||||||||||||||||
Common stock issued under employee benefit plans | — | — | 26 | — | — | — | — | 26 | — | |||||||||||||||||||||||
Preferred stock redemption | (583) | — | — | — | — | — | — | (583) | — | |||||||||||||||||||||||
Preferred stock issued | 1,567 | — | — | — | — | — | — | 1,567 | — | |||||||||||||||||||||||
Stock awards and options exercised | — | — | 270 | — | — | — | — | 270 | — | |||||||||||||||||||||||
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, 2018 | $ | 3,542 | $ | 14 | $ | 27,118 | $ | 28,652 | $ | (3,171) | $ | (15,517) | $ | 101 | $ | 40,739 | (a) | $ | 129 | |||||||||||||
— | — | — | 90 | (90) | — | — | — | — | ||||||||||||||||||||||||
Adjusted balance at Jan. 1, 2019 | 3,542 | 14 | 27,118 | 28,742 | (3,261) | (15,517) | 101 | 40,739 | 129 | |||||||||||||||||||||||
Shares issued to shareholders of noncontrolling interests | — | — | — | — | — | — | — | — | 77 | |||||||||||||||||||||||
Redemption of subsidiary shares from noncontrolling interests | — | — | — | — | — | — | — | — | (48) | |||||||||||||||||||||||
Other net changes in noncontrolling interests | — | — | 6 | — | — | — | (25) | (19) | (18) | |||||||||||||||||||||||
Net income | — | — | — | 4,441 | — | — | 26 | 4,467 | — | |||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 623 | — | — | 623 | 3 | |||||||||||||||||||||||
Dividends: | ||||||||||||||||||||||||||||||||
Common stock at $1.18 per share (b) | — | — | — | (1,120) | — | — | — | (1,120) | — | |||||||||||||||||||||||
Preferred stock | — | — | — | (169) | — | — | — | (169) | — | |||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | (3,327) | — | (3,327) | — | |||||||||||||||||||||||
Common stock issued under: | ||||||||||||||||||||||||||||||||
Employee benefit plans | — | — | 28 | — | — | — | — | 28 | — | |||||||||||||||||||||||
Direct stock purchase and dividend reinvestment plan | — | — | 11 | — | — | — | — | 11 | — | |||||||||||||||||||||||
Stock awards and options exercised | — | — | 352 | — | — | — | — | 352 | — | |||||||||||||||||||||||
Balance at Dec. 31, 2019 | $ | 3,542 | $ | 14 | $ | 27,515 | $ | 31,894 | $ | (2,638) | $ | (18,844) | $ | 102 | $ | 41,585 | (a) | $ | 143 |
Notes to Consolidated Financial Statements | ||
Notes to Consolidated Financial Statements (continued) | ||
Equity method investments at Dec. 31, 2021 | |||||||||||
(dollars in millions) | Percentage ownership | Book value | |||||||||
CIBC Mellon Global Securities Services Company (“CIBC Mellon”) | 50 | % | $ | 687 | |||||||
Siguler Guff | 20 | % | $ | 252 |
Notes to Consolidated Financial Statements (continued) | ||
Notes to Consolidated Financial Statements (continued) | ||
Notes to Consolidated Financial Statements (continued) | ||
Notes to Consolidated Financial Statements (continued) | ||
Notes to Consolidated Financial Statements (continued) | ||
Notes to Consolidated Financial Statements (continued) | ||
Notes to Consolidated Financial Statements (continued) | ||
Notes to Consolidated Financial Statements (continued) | ||
Notes to Consolidated Financial Statements (continued) | ||
Notes to Consolidated Financial Statements (continued) | ||
Notes to Consolidated Financial Statements (continued) | ||
Notes to Consolidated Financial Statements (continued) | ||
Consolidated income statement reclassifications | ||||||||
Year ended Dec. 31, | ||||||||
(in millions) | 2020 | 2019 | ||||||
Before reclassifications | ||||||||
Foreign exchange and other trading revenue | $ | 789 | $ | 654 | ||||
Total fee revenue | $ | 12,714 | $ | 13,236 | ||||
Investment and other income | $ | 184 | $ | 968 | ||||
Net securities gains (losses) | $ | 33 | $ | (18) | ||||
Income from consolidated investment management funds | $ | 84 | $ | 56 | ||||
After reclassifications | ||||||||
Foreign exchange revenue | $ | 774 | $ | 564 | ||||
Total fee revenue | $ | 12,515 | $ | 12,178 | ||||
Investment and other revenue | $ | 316 | $ | 1,096 |
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) | ||
Securities at Dec. 31, 2021 | Gross unrealized | Fair value | ||||||||||||
Amortized cost | ||||||||||||||
(in millions) | Gains | Losses | ||||||||||||
Available-for-sale: | ||||||||||||||
U.S. Treasury | $ | 28,966 | $ | 771 | $ | 328 | $ | 29,409 | ||||||
Agency residential mortgage-backed securities (“RMBS”) | 14,333 | 270 | 73 | 14,530 | ||||||||||
Sovereign debt/sovereign guaranteed | 13,367 | 79 | 67 | 13,379 | ||||||||||
Agency commercial mortgage-backed securities (“MBS”) | 8,102 | 345 | 42 | 8,405 | ||||||||||
Supranational | 7,599 | 24 | 50 | 7,573 | ||||||||||
Foreign covered bonds | 6,236 | 25 | 23 | 6,238 | ||||||||||
Collateralized loan obligations (“CLOs”) | 4,441 | 3 | 5 | 4,439 | ||||||||||
Non-agency commercial MBS | 3,083 | 65 | 23 | 3,125 | ||||||||||
Non-agency RMBS | 2,641 | 132 | 25 | 2,748 | ||||||||||
Foreign government agencies | 2,694 | 9 | 17 | 2,686 | ||||||||||
U.S. government agencies | 2,464 | 99 | 27 | 2,536 | ||||||||||
State and political subdivisions | 2,543 | 11 | 40 | 2,514 | ||||||||||
Other asset-backed securities (“ABS”) | 2,205 | 7 | 22 | 2,190 | ||||||||||
Corporate bonds | 2,099 | 19 | 52 | 2,066 | ||||||||||
Other debt securities | 1 | — | — | 1 | ||||||||||
Total securities available-for-sale (a)(b) | $ | 100,774 | $ | 1,859 | $ | 794 | $ | 101,839 | ||||||
Held-to-maturity: | ||||||||||||||
Agency RMBS | $ | 36,167 | $ | 428 | $ | 388 | $ | 36,207 | ||||||
U.S. Treasury | 11,617 | 36 | 103 | 11,550 | ||||||||||
Agency commercial MBS | 4,068 | 41 | 52 | 4,057 | ||||||||||
U.S. government agencies | 2,998 | — | 71 | 2,927 | ||||||||||
CLOs | 983 | — | 1 | 982 | ||||||||||
Sovereign debt/sovereign guaranteed | 922 | 18 | 2 | 938 | ||||||||||
Supranational | 54 | — | — | 54 | ||||||||||
Non-agency RMBS | 43 | 2 | — | 45 | ||||||||||
State and political subdivisions | 14 | 1 | — | 15 | ||||||||||
Total securities held-to-maturity | $ | 56,866 | $ | 526 | $ | 617 | $ | 56,775 | ||||||
Total securities | $ | 157,640 | $ | 2,385 | $ | 1,411 | $ | 158,614 |
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 | 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 (a)(b) | $ | 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 |
Notes to Consolidated Financial Statements (continued) | ||
Net securities gains (losses) | |||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||
Realized gross gains | $ | 28 | $ | 46 | $ | 23 | |||||
Realized gross losses | (23) | (13) | (39) | ||||||||
Recognized gross impairments | — | — | (2) | ||||||||
Total net securities gains (losses) | $ | 5 | $ | 33 | $ | (18) |
Net securities gains (losses) | |||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||
Foreign government agencies | $ | 1 | $ | 8 | $ | (3) | |||||
Supranational | 1 | 7 | (2) | ||||||||
U.S. Treasury | (3) | 8 | (13) | ||||||||
Other | 6 | 10 | — | ||||||||
Total net securities gains (losses) | $ | 5 | $ | 33 | $ | (18) |
Notes to Consolidated Financial Statements (continued) | ||
Available-for-sale securities in an unrealized loss position without an allowance for credit losses at Dec. 31, 2021 | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
U.S. Treasury | $ | 16,855 | $ | 235 | $ | 1,944 | $ | 93 | $ | 18,799 | $ | 328 | ||||||||||||||
Sovereign debt/sovereign guaranteed | 6,040 | 66 | 58 | 1 | 6,098 | 67 | ||||||||||||||||||||
Agency RMBS | 4,089 | 44 | 457 | 29 | 4,546 | 73 | ||||||||||||||||||||
Supranational | 3,093 | 44 | 305 | 6 | 3,398 | 50 | ||||||||||||||||||||
Agency commercial MBS | 2,233 | 39 | 585 | 3 | 2,818 | 42 | ||||||||||||||||||||
Foreign covered bonds | 2,694 | 23 | — | — | 2,694 | 23 | ||||||||||||||||||||
CLOs | 1,808 | 3 | 318 | 2 | 2,126 | 5 | ||||||||||||||||||||
Non-agency RMBS | 1,573 | 20 | 345 | 5 | 1,918 | 25 | ||||||||||||||||||||
State and political subdivisions | 1,848 | 40 | 13 | — | 1,861 | 40 | ||||||||||||||||||||
U.S. government agencies | 1,780 | 27 | — | — | 1,780 | 27 | ||||||||||||||||||||
Other ABS | 1,383 | 20 | 201 | 2 | 1,584 | 22 | ||||||||||||||||||||
Foreign government agencies | 1,446 | 17 | 15 | — | 1,461 | 17 | ||||||||||||||||||||
Corporate bonds | 1,247 | 42 | 198 | 10 | 1,445 | 52 | ||||||||||||||||||||
Non-agency commercial MBS | 947 | 16 | 222 | 7 | 1,169 | 23 | ||||||||||||||||||||
Total securities available-for-sale (a) | $ | 47,036 | $ | 636 | $ | 4,661 | $ | 158 | $ | 51,697 | $ | 794 |
Available-for-sale securities in an unrealized loss position without an allowance for credit losses at Dec. 31, 2020 | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
U.S. Treasury | $ | 4,253 | $ | 21 | $ | — | $ | — | $ | 4,253 | $ | 21 | ||||||||||||||
Agency RMBS | 850 | 4 | 1,965 | 47 | 2,815 | 51 | ||||||||||||||||||||
CLOs | 1,849 | 6 | 579 | 4 | 2,428 | 10 | ||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 1,349 | 1 | 135 | — | 1,484 | 1 | ||||||||||||||||||||
Supranational | 1,041 | 1 | 132 | — | 1,173 | 1 | ||||||||||||||||||||
Non-agency RMBS | 973 | 3 | 103 | 6 | 1,076 | 9 | ||||||||||||||||||||
Agency commercial MBS | 440 | 1 | 266 | 1 | 706 | 2 | ||||||||||||||||||||
Other ABS | 449 | 2 | 226 | 1 | 675 | 3 | ||||||||||||||||||||
Non-agency commercial MBS | 468 | 4 | 170 | 2 | 638 | 6 | ||||||||||||||||||||
Foreign covered bonds | 468 | 1 | 90 | — | 558 | 1 | ||||||||||||||||||||
Corporate bonds | 282 | 1 | — | — | 282 | 1 | ||||||||||||||||||||
State and political subdivisions | 273 | 1 | 2 | — | 275 | 1 | ||||||||||||||||||||
U.S. government agencies | 160 | 1 | — | — | 160 | 1 | ||||||||||||||||||||
Total securities available-for-sale (a) | $ | 12,855 | $ | 47 | $ | 3,668 | $ | 61 | $ | 16,523 | $ | 108 | ||||||||||||||
Notes to Consolidated Financial Statements (continued) | ||
Held-to-maturity securities portfolio at Dec. 31, 2021 | Ratings (a) | |||||||||||||||||||||||||||||||
Net unrealized gain (loss) | BB+ and lower | A1+/A2/SP-1 | ||||||||||||||||||||||||||||||
(dollars in millions) | Amortized cost | AAA/ AA- | A+/ A- | BBB+/ BBB- | Not rated | |||||||||||||||||||||||||||
Agency RMBS | $ | 36,167 | $ | 40 | 100 | % | — | % | — | % | — | % | — | % | — | % | ||||||||||||||||
U.S. Treasury | 11,617 | (67) | 100 | — | — | — | — | — | ||||||||||||||||||||||||
Agency commercial MBS | 4,068 | (11) | 100 | — | — | — | — | — | ||||||||||||||||||||||||
U.S. government agencies | 2,998 | (71) | 100 | — | — | — | — | — | ||||||||||||||||||||||||
CLOs | 983 | (1) | 100 | — | — | — | — | — | ||||||||||||||||||||||||
Sovereign debt/sovereign guaranteed (b) | 922 | 16 | 100 | — | — | — | — | — | ||||||||||||||||||||||||
Supranational | 54 | — | 100 | — | — | — | — | — | ||||||||||||||||||||||||
Non-agency RMBS | 43 | 2 | 23 | 59 | 2 | 15 | — | 1 | ||||||||||||||||||||||||
State and political subdivisions | 14 | 1 | 5 | 2 | 5 | — | — | 88 | ||||||||||||||||||||||||
Total held-to-maturity securities | $ | 56,866 | $ | (91) | 100 | % | — | % | — | % | — | % | — | % | — | % |
Held-to-maturity securities portfolio at Dec. 31, 2020 | Ratings (a) | |||||||||||||||||||||||||||||||
Net unrealized gain (loss) | 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 Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Within 1 year | 1-5 years | 5-10 years | After 10 years | Total | ||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | Amount | Yield (a) | Amount | Yield (a) | Amount | Yield (a) | Amount | Yield (a) | Amount | Yield (a) | ||||||||||||||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 1,352 | 1.32 | % | $ | 13,637 | 1.00 | % | $ | 11,413 | 1.13 | % | $ | 3,007 | 3.06 | % | $ | 29,409 | 1.25 | % | ||||||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 3,615 | 0.64 | 8,038 | 0.52 | 1,718 | 0.37 | 8 | (0.12) | 13,379 | 0.53 | ||||||||||||||||||||||||||||||||||
Supranational | 793 | 0.63 | 5,518 | 0.51 | 1,240 | 0.65 | 22 | (0.09) | 7,573 | 0.54 | ||||||||||||||||||||||||||||||||||
Foreign covered bonds | 1,511 | 1.07 | 3,826 | 0.49 | 901 | 0.03 | — | — | 6,238 | 0.56 | ||||||||||||||||||||||||||||||||||
Foreign government agencies | 770 | 0.90 | 1,783 | 0.60 | 133 | 0.22 | — | — | 2,686 | 0.67 | ||||||||||||||||||||||||||||||||||
U.S. government agencies | — | — | 1,783 | 0.91 | 639 | 1.66 | 114 | 1.91 | 2,536 | 1.13 | ||||||||||||||||||||||||||||||||||
State and political subdivisions | 197 | 3.37 | 559 | 1.79 | 1,495 | 1.56 | 263 | 2.27 | 2,514 | 1.82 | ||||||||||||||||||||||||||||||||||
Corporate bonds | 153 | 2.20 | 380 | 2.67 | 1,494 | 1.60 | 39 | 2.00 | 2,066 | 1.84 | ||||||||||||||||||||||||||||||||||
Other debt securities | — | — | — | — | — | — | 1 | 3.73 | 1 | 3.37 | ||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||
Agency RMBS | 14,530 | 1.51 | ||||||||||||||||||||||||||||||||||||||||||
Non-agency RMBS | 2,748 | 3.43 | ||||||||||||||||||||||||||||||||||||||||||
Agency commercial MBS | 8,405 | 2.08 | ||||||||||||||||||||||||||||||||||||||||||
Non-agency commercial MBS | 3,125 | 2.30 | ||||||||||||||||||||||||||||||||||||||||||
CLOs | 4,439 | 1.30 | ||||||||||||||||||||||||||||||||||||||||||
Other ABS | 2,190 | 1.63 | ||||||||||||||||||||||||||||||||||||||||||
Total securities available-for-sale | $ | 8,391 | 0.94 | % | $ | 35,524 | 0.76 | % | $ | 19,033 | 1.06 | % | $ | 3,454 | 2.90 | % | $ | 101,839 | 1.27 | % | ||||||||||||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 1,469 | 1.84 | % | $ | 7,748 | 1.37 | % | $ | 2,400 | 1.13 | % | $ | — | — | % | $ | 11,617 | 1.38 | % | ||||||||||||||||||||||||
U.S. government agencies | — | — | 970 | 1.31 | 1,880 | 1.58 | 148 | 1.88 | 2,998 | 1.51 | ||||||||||||||||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 173 | 0.30 | 668 | 1.00 | 81 | 0.59 | — | — | 922 | 0.83 | ||||||||||||||||||||||||||||||||||
Supranational | — | — | 54 | 0.54 | — | — | — | — | 54 | 0.54 | ||||||||||||||||||||||||||||||||||
State and political subdivisions | 1 | 5.57 | 1 | 5.70 | 4 | 4.65 | 8 | 4.80 | 14 | 4.89 | ||||||||||||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||||||||
Agency RMBS | 36,167 | 2.34 | ||||||||||||||||||||||||||||||||||||||||||
Non-agency RMBS | 43 | 1.47 | ||||||||||||||||||||||||||||||||||||||||||
Agency commercial MBS | 4,068 | 2.32 | ||||||||||||||||||||||||||||||||||||||||||
CLOs | 983 | 1.28 | ||||||||||||||||||||||||||||||||||||||||||
Total securities held-to-maturity | $ | 1,643 | 1.68 | % | $ | 9,441 | 1.33 | % | $ | 4,365 | 1.32 | % | $ | 156 | 2.04 | % | $ | 56,866 | 2.06 | % | ||||||||||||||||||||||||
Total securities | $ | 10,034 | 1.06 | % | $ | 44,965 | 0.88 | % | $ | 23,398 | 1.11 | % | $ | 3,610 | 2.86 | % | $ | 158,705 | 1.55 | % |
Notes to Consolidated Financial Statements (continued) | ||
Loans | Dec. 31, | |||||||
(in millions) | 2021 | 2020 (a) | ||||||
Commercial | $ | 2,128 | $ | 1,429 | ||||
Commercial real estate | 6,033 | 6,020 | ||||||
Financial institutions | 10,232 | 11,131 | ||||||
Lease financings | 731 | 990 | ||||||
Wealth management loans | 9,792 | 8,202 | ||||||
Wealth management mortgages | 8,200 | 8,085 | ||||||
Other residential mortgages | 299 | 389 | ||||||
Capital call financing | 2,284 | 220 | ||||||
Other | 2,541 | 1,904 | ||||||
Overdrafts | 3,060 | 2,683 | ||||||
Margin loans | 22,487 | 15,416 | ||||||
Total loans (b) | $ | 67,787 | $ | 56,469 |
Notes to Consolidated Financial Statements (continued) | ||
Allowance for credit losses activity for the year ended Dec. 31, 2021 (a) | Wealth management loans | Wealth management mortgages | Other residential mortgages | Capital call financing | Other | Total | ||||||||||||||||||||||||||
(in millions) | Commercial | Commercial real estate | Financial institutions | Lease financings | ||||||||||||||||||||||||||||
Beginning balance | $ | 16 | $ | 430 | $ | 10 | $ | 2 | $ | 1 | $ | 7 | $ | 13 | $ | — | $ | — | $ | 479 | ||||||||||||
Charge-offs | — | — | — | — | — | (1) | (1) | — | (16) | (18) | ||||||||||||||||||||||
Recoveries | — | — | 2 | — | — | — | 6 | — | — | 8 | ||||||||||||||||||||||
Net recoveries | — | — | 2 | — | — | (1) | 5 | — | (16) | (10) | ||||||||||||||||||||||
Provision (b) | (4) | (231) | 1 | (1) | — | — | (11) | 2 | 16 | (228) | ||||||||||||||||||||||
Ending balance | $ | 12 | $ | 199 | $ | 13 | $ | 1 | $ | 1 | $ | 6 | $ | 7 | $ | 2 | $ | — | $ | 241 | ||||||||||||
Allowance for: | ||||||||||||||||||||||||||||||||
Loan losses | $ | 3 | $ | 171 | $ | 6 | $ | 1 | $ | 1 | $ | 5 | $ | 7 | $ | 2 | $ | — | $ | 196 | ||||||||||||
Lending-related commitments | 9 | 28 | 7 | — | — | 1 | — | — | — | 45 | ||||||||||||||||||||||
Individually evaluated for impairment: | ||||||||||||||||||||||||||||||||
Loan balance (c) | $ | — | $ | 111 | $ | — | $ | — | $ | — | $ | 18 | $ | 1 | $ | — | $ | — | $ | 130 | ||||||||||||
Allowance for loan losses | — | 5 | — | — | — | — | — | — | — | 5 |
Allowance for credit losses activity for the year ended Dec. 31, 2020 (a) | Wealth management loans (b) | Wealth management mortgages | Other residential mortgages | Foreign (c) | Total | |||||||||||||||||||||||||||
(in millions) | Commercial | Commercial real estate | Financial institutions | Lease financings | (b) | |||||||||||||||||||||||||||
Beginning at Dec. 31, 2019 | $ | 60 | $ | 76 | $ | 20 | $ | 3 | $ | 5 | $ | 15 | $ | 13 | $ | 24 | $ | 216 | ||||||||||||||
Impact of adopting ASU 2016-13 | (43) | 14 | (6) | — | (5) | (7) | 2 | (24) | (69) | |||||||||||||||||||||||
Balance at Jan. 1, 2020 | 17 | 90 | 14 | 3 | — | 8 | 15 | — | 147 | |||||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | (1) | — | (1) | |||||||||||||||||||||||
Recoveries | — | — | — | — | — | — | 5 | — | 5 | |||||||||||||||||||||||
Net recoveries | — | — | — | — | — | — | 4 | — | 4 | |||||||||||||||||||||||
Provision (d) | (1) | 340 | (4) | (1) | 1 | (1) | (6) | — | 328 | |||||||||||||||||||||||
Ending balance | $ | 16 | $ | 430 | $ | 10 | $ | 2 | $ | 1 | $ | 7 | $ | 13 | $ | — | $ | 479 | ||||||||||||||
Allowance for: | ||||||||||||||||||||||||||||||||
Loan losses | $ | 6 | $ | 324 | $ | 6 | $ | 2 | $ | 1 | $ | 6 | $ | 13 | $ | — | $ | 358 | ||||||||||||||
Lending-related commitments | 10 | 106 | 4 | — | — | 1 | — | — | 121 | |||||||||||||||||||||||
Individually evaluated for impairment: | ||||||||||||||||||||||||||||||||
Loan balance | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 20 | (e) | $ | — | $ | — | $ | 20 | |||||||||||||
Allowance for loan losses | — | — | — | — | — | — | — | — | — |
Notes to Consolidated Financial Statements (continued) | ||
Allowance for credit losses activity for the year ended Dec. 31, 2019 | Lease financing | Wealth management loans and mortgages | Other residential mortgages | All Other | Foreign | Total | ||||||||||||||||||||||||||
(in millions) | Commercial | Commercial real estate | Financial institutions | |||||||||||||||||||||||||||||
Beginning balance | $ | 81 | $ | 75 | $ | 22 | $ | 5 | $ | 21 | $ | 16 | $ | — | $ | 32 | $ | 252 | ||||||||||||||
Charge-offs | (12) | — | — | — | (1) | (1) | — | — | (14) | |||||||||||||||||||||||
Recoveries | — | — | — | — | — | 3 | — | — | 3 | |||||||||||||||||||||||
Net (charge-offs) recoveries | (12) | — | — | — | (1) | 2 | — | — | (11) | |||||||||||||||||||||||
Provision | (9) | 1 | (2) | (2) | — | (5) | — | (8) | (25) | |||||||||||||||||||||||
Ending balance | $ | 60 | $ | 76 | $ | 20 | $ | 3 | $ | 20 | $ | 13 | $ | — | $ | 24 | $ | 216 | ||||||||||||||
Allowance for: | ||||||||||||||||||||||||||||||||
Loan losses | $ | 11 | $ | 57 | $ | 5 | $ | 3 | $ | 18 | $ | 13 | $ | — | $ | 15 | $ | 122 | ||||||||||||||
Lending-related commitments | 49 | 19 | 15 | — | 2 | — | — | 9 | 94 | |||||||||||||||||||||||
Individually evaluated for impairment: | ||||||||||||||||||||||||||||||||
Loan balance | $ | — | $ | — | $ | — | $ | — | $ | 15 | $ | — | $ | — | $ | — | $ | 15 | ||||||||||||||
Allowance for loan losses | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Collectively evaluated for impairment: | ||||||||||||||||||||||||||||||||
Loan balance | $ | 1,442 | $ | 5,575 | $ | 4,852 | $ | 537 | $ | 16,035 | $ | 494 | $ | 13,598 | (a) | $ | 12,405 | $ | 54,938 | |||||||||||||
Allowance for loan losses | 11 | 57 | 5 | 3 | 18 | 13 | — | 15 | 122 |
Nonperforming assets | Dec. 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 | $ | 38 | $ | 1 | $ | 39 | $ | 57 | $ | — | $ | 57 | |||||||||||
Wealth management mortgages | 8 | 17 | 25 | 10 | 20 | 30 | |||||||||||||||||
Commercial real estate | 12 | 42 | 54 | 1 | — | 1 | |||||||||||||||||
Total nonperforming loans | 58 | 60 | 118 | 68 | 20 | 88 | |||||||||||||||||
Other assets owned | — | 2 | 2 | — | 1 | 1 | |||||||||||||||||
Total nonperforming assets | $ | 58 | $ | 62 | $ | 120 | $ | 68 | $ | 21 | $ | 89 |
Past due loans and still accruing interest | Dec. 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 mortgages | $ | 24 | $ | — | $ | — | $ | 24 | $ | 12 | $ | 1 | $ | — | $ | 13 | |||||||||||||
Wealth management loans | 33 | — | — | 33 | 42 | — | — | 42 | |||||||||||||||||||||
Commercial real estate | 3 | — | — | 3 | 19 | 16 | — | 35 | |||||||||||||||||||||
Financial institutions | 31 | — | — | 31 | 11 | — | — | 11 | |||||||||||||||||||||
Other residential mortgages | 2 | 1 | — | 3 | 3 | 1 | — | 4 | |||||||||||||||||||||
Total past due loans | $ | 93 | $ | 1 | $ | — | $ | 94 | $ | 87 | $ | 18 | $ | — | $ | 105 |
Notes to Consolidated Financial Statements (continued) | ||
Credit profile of the loan portfolio | Dec. 31, 2021 | |||||||||||||||||||||||||||||||
Revolving loans | ||||||||||||||||||||||||||||||||
Originated, at amortized cost | Amortized cost | Converted to term loans – Amortized cost | Accrued interest receivable | |||||||||||||||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior to 2017 | Total (a) | |||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||||||||||
Investment grade | $ | 348 | $ | 20 | $ | — | $ | 8 | $ | 145 | $ | — | $ | 1,450 | $ | — | $ | 1,971 | ||||||||||||||
Non-investment grade | 81 | — | — | — | — | — | 76 | — | 157 | |||||||||||||||||||||||
Total commercial | 429 | 20 | — | 8 | 145 | — | 1,526 | — | 2,128 | $ | 1 | |||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Investment grade | 1,577 | 528 | 683 | 173 | 298 | 601 | 205 | — | 4,065 | |||||||||||||||||||||||
Non-investment grade | 660 | 97 | 568 | 351 | 50 | 95 | 121 | 26 | 1,968 | |||||||||||||||||||||||
Total commercial real estate | 2,237 | 625 | 1,251 | 524 | 348 | 696 | 326 | 26 | 6,033 | 7 | ||||||||||||||||||||||
Financial institutions: | ||||||||||||||||||||||||||||||||
Investment grade | 705 | — | — | — | — | 60 | 8,015 | — | 8,780 | |||||||||||||||||||||||
Non-investment grade | 20 | — | — | — | — | — | 1,432 | — | 1,452 | |||||||||||||||||||||||
Total financial institutions | 725 | — | — | — | — | 60 | 9,447 | — | 10,232 | 11 | ||||||||||||||||||||||
Wealth management loans | ||||||||||||||||||||||||||||||||
Investment grade | 117 | 18 | 73 | 6 | 104 | 122 | 9,320 | — | 9,760 | |||||||||||||||||||||||
Non-investment grade | 1 | — | — | — | — | — | 31 | — | 32 | |||||||||||||||||||||||
Total wealth management loans | 118 | 18 | 73 | 6 | 104 | 122 | 9,351 | — | 9,792 | 12 | ||||||||||||||||||||||
Wealth management mortgages | 2,058 | 1,008 | 855 | 542 | 885 | 2,838 | 14 | — | 8,200 | 14 | ||||||||||||||||||||||
Lease financings | 25 | 67 | 15 | 10 | 2 | 612 | — | — | 731 | — | ||||||||||||||||||||||
Other residential mortgages | — | — | — | — | — | 299 | — | — | 299 | 1 | ||||||||||||||||||||||
Capital call financing | — | — | — | — | — | — | 2,284 | — | 2,284 | 3 | ||||||||||||||||||||||
Other loans | — | — | — | — | — | — | 2,541 | — | 2,541 | 2 | ||||||||||||||||||||||
Margin loans | 7,697 | — | — | — | — | — | 14,790 | — | 22,487 | 10 | ||||||||||||||||||||||
Total loans | $ | 13,289 | $ | 1,738 | $ | 2,194 | $ | 1,090 | $ | 1,484 | $ | 4,627 | $ | 40,279 | $ | 26 | $ | 64,727 | $ | 61 |
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 | 91 | — | 3,538 | |||||||||||||||||||||||
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 | 320 | 27 | 6,020 | 8 | ||||||||||||||||||||||
Financial institutions: | ||||||||||||||||||||||||||||||||
Investment grade | 132 | 146 | 47 | 125 | 13 | 156 | 8,646 | — | 9,265 | |||||||||||||||||||||||
Non-investment grade | 84 | 36 | — | — | — | — | 1,746 | — | 1,866 | |||||||||||||||||||||||
Total financial institutions | 216 | 182 | 47 | 125 | 13 | 156 | 10,392 | — | 11,131 | 12 | ||||||||||||||||||||||
Wealth management loans | ||||||||||||||||||||||||||||||||
Investment grade | 18 | 85 | 11 | 147 | 59 | 112 | 7,716 | — | 8,148 | |||||||||||||||||||||||
Non-investment grade | — | — | — | — | — | — | 54 | — | 54 | |||||||||||||||||||||||
Total wealth management loans | 18 | 85 | 11 | 147 | 59 | 112 | 7,770 | — | 8,202 | 11 | ||||||||||||||||||||||
Wealth management mortgages | 1,117 | 1,044 | 637 | 1,188 | 1,515 | 2,546 | 38 | — | 8,085 | 16 | ||||||||||||||||||||||
Lease financings | 116 | 18 | 14 | 9 | 20 | 813 | — | — | 990 | — | ||||||||||||||||||||||
Other residential mortgages | — | — | — | — | — | 389 | — | — | 389 | 1 | ||||||||||||||||||||||
Capital call financing | — | — | — | — | — | — | 220 | — | 220 | — | ||||||||||||||||||||||
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) | ||
Notes to Consolidated Financial Statements (continued) | ||
Balance sheet information | Dec. 31, 2021 | Dec. 31, 2020 | |||||||||||||||||||||
(dollars in millions) | Operating leases | Finance leases | Total | Operating leases | Finance leases | Total | |||||||||||||||||
ROU assets (a) | $ | 1,250 | $ | 34 | $ | 1,284 | $ | 1,432 | $ | 11 | $ | 1,443 | |||||||||||
Lease liability (b) | $ | 1,461 | $ | 24 | $ | 1,485 | $ | 1,669 | $ | 11 | $ | 1,680 | |||||||||||
Weighted average: | |||||||||||||||||||||||
Remaining lease term | 10.5 years | 0.9 years | 10.8 years | 1.1 years | |||||||||||||||||||
Discount rate (annualized) | 2.62 | % | 0.97 | % | 2.55 | % | 0.29 | % |
Lease expense | Year ended Dec. 31, | ||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||
Operating lease expense | $ | 236 | $ | 263 | $ | 266 | |||||
Variable lease expense | 39 | 47 | 39 | ||||||||
Sublease income | (33) | (35) | (33) | ||||||||
Finance lease expense: | |||||||||||
Amortization of ROU assets | 3 | 1 | 7 | ||||||||
Total lease expense | $ | 245 | $ | 276 | $ | 279 |
Cash flow information | Year ended Dec. 31, | ||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||
Cash paid for amounts included in measurement of liabilities: | |||||||||||
Operating cash flows from operating leases | $ | 260 | $ | 284 | $ | 285 | |||||
Financing cash flows from finance leases | $ | 13 | $ | 1 | $ | 20 |
Maturities of lease liabilities | Operating leases | Finance leases | ||||||
(in millions) | ||||||||
For the year ended Dec. 31, | ||||||||
2022 | $ | 225 | $ | 24 | ||||
2023 | 194 | — | ||||||
2024 | 147 | — | ||||||
2025 | 139 | — | ||||||
2026 | 146 | — | ||||||
2027 and thereafter | 825 | — | ||||||
Total lease payments | 1,676 | 24 | ||||||
Less: Imputed interest | 215 | — | ||||||
Total | $ | 1,461 | $ | 24 |
Notes to Consolidated Financial Statements (continued) | ||
Goodwill by business segment (a) (in millions) | Securities Services (a) | Market and Wealth Services (a) | Investment and Wealth Management | Other | Consolidated | ||||||||||||
Balance at Dec. 31, 2019 | $ | 6,912 | 1,420 | $ | 9,007 | $ | 47 | $ | 17,386 | ||||||||
Foreign currency translation | 74 | 3 | 33 | — | 110 | ||||||||||||
Other (b) | 47 | — | — | (47) | — | ||||||||||||
Balance at Dec. 31, 2020 | $ | 7,033 | $ | 1,423 | $ | 9,040 | $ | — | $ | 17,496 | |||||||
Acquisitions (dispositions) | 87 | 12 | (5) | — | 94 | ||||||||||||
Foreign currency translation | (58) | — | (20) | — | (78) | ||||||||||||
Balance at Dec. 31, 2021 | $ | 7,062 | $ | 1,435 | $ | 9,015 | $ | — | $ | 17,512 |
Intangible assets – net carrying amount by business segment (a) (in millions) | Securities Services (a) | Market and Wealth Services (a) | Investment and Wealth Management | Other | Consolidated | ||||||||||||
Balance at Dec. 31, 2019 | $ | 227 | $ | 451 | $ | 1,580 | $ | 849 | $ | 3,107 | |||||||
Acquisition | — | — | 2 | — | 2 | ||||||||||||
Amortization | (34) | (37) | (33) | — | (104) | ||||||||||||
Foreign currency translation | 1 | — | 6 | — | 7 | ||||||||||||
Balance at Dec. 31, 2020 | $ | 194 | $ | 414 | $ | 1,555 | $ | 849 | $ | 3,012 | |||||||
Acquisitions (dispositions) | 70 | — | (6) | — | 64 | ||||||||||||
Amortization | (32) | (21) | (29) | — | (82) | ||||||||||||
Foreign currency translation | (2) | (1) | — | — | (3) | ||||||||||||
Balance at Dec. 31, 2021 | $ | 230 | $ | 392 | $ | 1,520 | $ | 849 | $ | 2,991 |
Notes to Consolidated Financial Statements (continued) | ||
Intangible assets | Dec. 31, 2021 | Dec. 31, 2020 | ||||||||||||||||||||||||
(dollars in millions) | Gross carrying amount | Accumulated amortization | Net carrying amount | Remaining weighted- average amortization period | Gross carrying amount | Accumulated amortization | Net carrying amount | |||||||||||||||||||
Subject to amortization: (a) | ||||||||||||||||||||||||||
Customer contracts—Securities Services (b) | $ | 747 | $ | (518) | $ | 229 | 11 years | $ | 683 | $ | (489) | $ | 194 | |||||||||||||
Customer contracts—Market and Wealth Services (b) | 378 | (356) | 22 | 4 years | 752 | (710) | 42 | |||||||||||||||||||
Customer relationships—Investment and Wealth Management | 568 | (456) | 112 | 9 years | 705 | (564) | 141 | |||||||||||||||||||
Other | 47 | (8) | 39 | 13 years | 59 | (15) | 44 | |||||||||||||||||||
Total subject to amortization | 1,740 | (1,338) | 402 | 10 years | 2,199 | (1,778) | 421 | |||||||||||||||||||
Not subject to amortization: (c) | ||||||||||||||||||||||||||
Tradenames | 1,294 | N/A | 1,294 | N/A | 1,295 | N/A | 1,295 | |||||||||||||||||||
Customer relationships | 1,295 | N/A | 1,295 | N/A | 1,296 | N/A | 1,296 | |||||||||||||||||||
Total not subject to amortization | 2,589 | N/A | 2,589 | N/A | 2,591 | N/A | 2,591 | |||||||||||||||||||
Total intangible assets | $ | 4,329 | $ | (1,338) | $ | 2,991 | N/A | $ | 4,790 | $ | (1,778) | $ | 3,012 |
For the year ended Dec. 31, | Estimated amortization expense (in millions) | |||||||
2022 | $ | 68 | ||||||
2023 | 58 | |||||||
2024 | 50 | |||||||
2025 | 43 | |||||||
2026 | 34 |
Notes to Consolidated Financial Statements (continued) | ||
Other assets | Dec. 31, | ||||||||||
(in millions) | 2021 | 2020 | |||||||||
Corporate/bank-owned life insurance | $ | 5,359 | $ | 5,301 | |||||||
Accounts receivable | 4,178 | 3,619 | |||||||||
Software | 2,096 | 1,884 | |||||||||
Prepaid pension assets | 1,946 | 1,556 | |||||||||
Fails to deliver | 1,561 | 1,371 | |||||||||
Qualified affordable housing project investments | 1,153 | 1,145 | |||||||||
Renewable energy investments | 1,027 | 1,206 | |||||||||
Equity method investments | 939 | 921 | |||||||||
Income taxes receivable | 538 | 599 | |||||||||
Prepaid expense | 476 | 477 | |||||||||
Federal Reserve Bank stock | 472 | 479 | |||||||||
Assets of consolidated investment management funds | 462 | 487 | (a) | ||||||||
Other equity investments (b) | 449 | 290 | |||||||||
Seed capital (c) | 357 | 365 | |||||||||
Fair value of hedging derivatives | 206 | 19 | |||||||||
Other (d) | 1,190 | 1,236 | |||||||||
Total other assets | $ | 22,409 | $ | 20,955 | (a) |
Adjustments on non-readily marketable equity securities | Life-to-date | |||||||||||||
(in millions) | 2021 | 2020 | 2019 | |||||||||||
Upward adjustments | $ | 105 | $ | 21 | $ | 4 | $ | 158 | ||||||
Downward adjustments | — | — | (3) | (4) | ||||||||||
Net adjustments | $ | 105 | $ | 21 | $ | 1 | $ | 154 |
Notes to Consolidated Financial Statements (continued) | ||
Investments valued using NAV | Dec. 31, 2021 | Dec. 31, 2020 | |||||||||||||||||||||
(in millions) | Fair value | Unfunded commitments | Fair value | Unfunded commitments | |||||||||||||||||||
Seed capital (a) | $ | 59 | $ | 21 | $ | 52 | $ | 22 | |||||||||||||||
Private equity investments (b) | 113 | 61 | 102 | 52 | |||||||||||||||||||
Other (c) | 46 | — | 47 | — | |||||||||||||||||||
Total | $ | 218 | $ | 82 | $ | 201 | $ | 74 |
Notes to Consolidated Financial Statements (continued) | ||
Disaggregation of contract revenue by business segment | Year ended Dec. 31, 2019 (a) | ||||||||||||||||
(in millions) | Securities Services | Market and Wealth Services | Investment and Wealth Management | Other | Total | ||||||||||||
Fee and other revenue – contract revenue: | |||||||||||||||||
Investment services fees | $ | 4,626 | $ | 3,112 | $ | 86 | $ | (34) | $ | 7,790 | |||||||
Investment management and performance fees | 1 | 16 | 3,389 | (16) | 3,390 | ||||||||||||
Financing-related fees | 14 | 45 | — | 1 | 60 | ||||||||||||
Distribution and servicing fees | 9 | (58) | 178 | — | 129 | ||||||||||||
Investment and other revenue | 150 | 132 | (197) | — | 85 | ||||||||||||
Total fee other revenue – contract revenue | 4,800 | 3,247 | 3,456 | (49) | 11,454 | ||||||||||||
Fee and other revenue – not in scope of ASC 606 (b)(c) | 661 | 218 | 29 | 886 | 1,794 | ||||||||||||
Total fee and other revenue | $ | 5,461 | $ | 3,465 | $ | 3,485 | $ | 837 | $ | 13,248 |
Notes to Consolidated Financial Statements (continued) | ||
Net interest revenue | Year ended Dec. 31, | ||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||
Interest revenue | |||||||||||
Deposits with the Federal Reserve and other central banks | $ | (77) | $ | 50 | $ | 448 | |||||
Deposits with banks | 48 | 134 | 265 | ||||||||
Federal funds sold and securities purchased under resale agreements | 120 | 545 | 2,154 | ||||||||
Loans | 958 | 1,142 | 1,789 | ||||||||
Securities: | |||||||||||
Taxable | 1,702 | 2,118 | 2,701 | ||||||||
Exempt from federal income taxes | 42 | 28 | 36 | ||||||||
Total securities | 1,744 | 2,146 | 2,737 | ||||||||
Trading securities | 52 | 92 | 155 | ||||||||
Total interest revenue | 2,845 | 4,109 | 7,548 | ||||||||
Interest expense | |||||||||||
Deposits in domestic offices | (27) | 176 | 958 | ||||||||
Deposits in foreign offices | (148) | (15) | 636 | ||||||||
Federal funds purchased and securities sold under repurchase agreements | (4) | 283 | 1,437 | ||||||||
Trading liabilities | 8 | 15 | 35 | ||||||||
Other borrowed funds | 8 | 16 | 59 | ||||||||
Commercial paper | — | 7 | 55 | ||||||||
Customer payables | (2) | 28 | 238 | ||||||||
Long-term debt | 392 | 622 | 942 | ||||||||
Total interest expense | 227 | 1,132 | 4,360 | ||||||||
Net interest revenue | 2,618 | 2,977 | 3,188 | ||||||||
Provision for credit losses | (231) | 336 | (25) | ||||||||
Net interest revenue after provision for credit losses | $ | 2,849 | $ | 2,641 | $ | 3,213 |
Notes to Consolidated Financial Statements (continued) | ||
Provision for income taxes | Year ended Dec. 31, | ||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||
Current tax expense: | |||||||||||
Federal | $ | 160 | $ | 465 | $ | 592 | |||||
Foreign | 353 | 407 | 484 | ||||||||
State and local | 107 | 163 | 113 | ||||||||
Total current tax expense | 620 | 1,035 | 1,189 | ||||||||
Deferred tax expense (benefit): | |||||||||||
Federal | 208 | (145) | (3) | ||||||||
Foreign | 22 | 16 | (13) | ||||||||
State and local | 27 | (64) | (53) | ||||||||
Total deferred tax expense (benefit) | 257 | (193) | (69) | ||||||||
Provision for income taxes | $ | 877 | $ | 842 | $ | 1,120 |
Income before taxes | Year ended Dec. 31, | ||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||
Domestic | $ | 2,965 | $ | 2,698 | $ | 3,516 | |||||
Foreign | 1,683 | 1,770 | 2,071 | ||||||||
Income before taxes | $ | 4,648 | $ | 4,468 | $ | 5,587 |
Net deferred tax liability | Dec. 31, | |||||||
(in millions) | 2021 | 2020 | ||||||
Depreciation and amortization | $ | 2,149 | $ | 2,197 | ||||
Pension obligation | 451 | 299 | ||||||
Other liabilities | 260 | 233 | ||||||
Renewable energy investment | 238 | 278 | ||||||
Securities valuation | 81 | 118 | ||||||
Equity investments | 58 | 61 | ||||||
Leasing | (2) | 23 | ||||||
Other assets | (36) | (57) | ||||||
Credit losses on loans | (61) | (118) | ||||||
Reserves not deducted for tax | (126) | (118) | ||||||
Employee benefits | (281) | (259) | ||||||
U.S. foreign tax credits | (83) | (62) | ||||||
Valuation allowance | 83 | 62 | ||||||
Net deferred tax liability | $ | 2,731 | $ | 2,657 |
Effective tax rate | Year ended Dec. 31, | ||||||||||
2021 | 2020 | 2019 | |||||||||
Federal rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||
State and local income taxes, net of federal income tax benefit | 2.3 | 1.8 | 0.9 | ||||||||
Foreign operations | 0.8 | 1.5 | 2.4 | ||||||||
Tax credits | (4.6) | (4.1) | (3.2) | ||||||||
Tax-exempt income | (1.0) | (1.0) | (0.7) | ||||||||
Federal Deposit Insurance Corporation (“FDIC”) assessment | 0.3 | 0.3 | 0.2 | ||||||||
Stock compensation | (0.1) | — | (0.4) | ||||||||
Other – net | 0.2 | (0.7) | (0.2) | ||||||||
Effective tax rate | 18.9 | % | 18.8 | % | 20.0 | % |
Unrecognized tax positions | |||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||
Beginning balance at Jan. 1, – gross | $ | 119 | $ | 173 | $ | 103 | |||||
Prior period tax positions: | |||||||||||
Increases | 18 | 45 | 60 | ||||||||
Decreases | (3) | (14) | (3) | ||||||||
Current period tax positions | 9 | 15 | 17 | ||||||||
Settlements | (5) | (100) | (4) | ||||||||
Ending balance at Dec. 31, – gross | $ | 138 | $ | 119 | $ | 173 |
Notes to Consolidated Financial Statements (continued) | ||
Long-term debt | Dec. 31, 2021 | Dec. 31, 2020 | ||||||||||||||||||
(dollars in millions) | Rate | Maturity | Amount | Rate | Amount | |||||||||||||||
Senior debt: | ||||||||||||||||||||
Fixed rate | 0.35 - 3.95% | 2022 - 2031 | $ | 23,053 | 0.35 - 4.15% | $ | 23,429 | |||||||||||||
Floating rate | 0.01 - 1.26% | 2023 - 2038 | 1,579 | 0.04 - 1.29% | 779 | |||||||||||||||
Subordinated debt (a) | 3.00 - 3.30% | 2028 - 2029 | 1,299 | 3.00 - 7.50% | 1,776 | |||||||||||||||
Total | $ | 25,931 | $ | 25,984 |
Consolidated investments | Dec. 31, 2021 | Dec. 31, 2020 | |||||||||||||||||||||||||||
(in millions) | Investment Management funds | Securitization | Total consolidated investments | Investment Management funds | Securitization | Total consolidated investments | |||||||||||||||||||||||
Trading assets | $ | 443 | $ | — | $ | 443 | $ | 482 | $ | 400 | $ | 882 | |||||||||||||||||
Other assets | 19 | — | 19 | 5 | — | 5 | |||||||||||||||||||||||
Total assets | $ | 462 | (a) | $ | — | $ | 462 | $ | 487 | (b) | $ | 400 | $ | 887 | |||||||||||||||
Other liabilities | $ | 3 | $ | — | $ | 3 | $ | 3 | $ | 400 | $ | 403 | |||||||||||||||||
Total liabilities | $ | 3 | (a) | $ | — | $ | 3 | $ | 3 | (b) | $ | 400 | $ | 403 | |||||||||||||||
Nonredeemable noncontrolling interests | $ | 196 | (a) | $ | — | $ | 196 | $ | 143 | (b) | $ | — | $ | 143 |
Notes to Consolidated Financial Statements (continued) | ||
Non-consolidated VIEs | Dec. 31, 2021 | Dec. 31, 2020 | |||||||||||||||||||||
(in millions) | Assets | Liabilities | Maximum loss exposure | Assets | Liabilities | Maximum loss exposure | |||||||||||||||||
Securities – Available-for-sale (a) | $ | 189 | $ | — | $ | 189 | $ | 217 | $ | — | $ | 217 | |||||||||||
Other | 2,385 | 543 | 2,946 | 2,565 | 514 | 3,096 |
Notes to Consolidated Financial Statements (continued) | ||
Preferred stock summary (a) | Total shares issued and outstanding | Carrying value (b) | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 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 | 4.50% 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 | — | 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 | |||||||||||||||
Series I | 3.750% to but excluding Dec. 20, 2026, then a floating rate equal to the five-year treasury rate plus 2.630% | 13,000 | — | 1,287 | — | |||||||||||||||
Total | 48,826 | 45,826 | $ | 4,838 | $ | 4,541 |
Notes to Consolidated Financial Statements (continued) | ||
Preferred dividends | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions, except per share amounts) | Depositary shares per share | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||
Per share | Total dividend | Per share | Total dividend | Per share | Total dividend | |||||||||||||||||||||||||||||||||||||||
Series A | 100 | (a) | $ | 4,044.44 | $ | 20 | $ | 4,055.55 | $ | 20 | $ | 4,055.55 | $ | 20 | ||||||||||||||||||||||||||||||
Series C | 4,000 | N/A | N/A | 5,200.00 | 46 | (b) | 5,200.00 | 31 | ||||||||||||||||||||||||||||||||||||
Series D | 100 | 4,500.00 | 23 | 4,500.00 | 22 | 4,500.00 | 22 | |||||||||||||||||||||||||||||||||||||
Series E | 100 | 3,630.34 | 47 | (c) | 4,359.63 | 44 | 4,950.00 | 50 | ||||||||||||||||||||||||||||||||||||
Series F | 100 | 4,625.00 | 46 | 4,625.00 | 46 | 4,625.00 | 46 | |||||||||||||||||||||||||||||||||||||
Series G | 100 | 4,700.00 | 47 | 1,579.72 | 16 | N/A | N/A | |||||||||||||||||||||||||||||||||||||
Series H | 100 | 4,183.06 | 24 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||
Total | $ | 207 | $ | 194 | $ | 169 |
Notes to Consolidated Financial Statements (continued) | ||
Consolidated and largest bank subsidiary regulatory capital ratios (a) | Dec. 31, | |||||||
2021 | 2020 | |||||||
Consolidated regulatory capital ratios: | ||||||||
Common Equity Tier 1 (“CET1”) ratio | 11.2 | % | 13.1 | % | ||||
Tier 1 capital ratio | 14.0 | 15.8 | ||||||
Total capital ratio | 14.9 | 16.7 | ||||||
Tier 1 leverage ratio | 5.5 | 6.3 | ||||||
Supplementary leverage ratio (“SLR”) (b)(c) | 6.6 | 8.6 | ||||||
The Bank of New York Mellon regulatory capital ratios: | ||||||||
CET1 ratio | 16.5 | % | 17.1 | % | ||||
Tier 1 capital ratio | 16.5 | 17.1 | ||||||
Total capital ratio | 16.5 | 17.3 | ||||||
Tier 1 leverage ratio | 6.0 | 6.4 | ||||||
SLR (b) | 7.6 | 8.5 |
Regulatory capital ratio components | Dec. 31, | |||||||
(in millions) | 2021 | 2020 | ||||||
CET1: | ||||||||
Common shareholders’ equity | $ | 38,196 | $ | 41,260 | ||||
Adjustments for: | ||||||||
Goodwill and intangible assets (a) | (18,649) | (18,697) | ||||||
Net pension fund assets | (400) | (319) | ||||||
Equity method investments | (300) | (306) | ||||||
Deferred tax assets | (55) | (54) | ||||||
Other | (46) | (9) | ||||||
Total CET1 | 18,746 | 21,875 | ||||||
Other Tier 1 capital: | ||||||||
Preferred stock | 4,838 | 4,541 | ||||||
Other | (99) | (106) | ||||||
Total Tier 1 capital | $ | 23,485 | $ | 26,310 | ||||
Tier 2 capital: | ||||||||
Subordinated debt | $ | 1,248 | $ | 1,248 | ||||
Allowance for credit losses | 250 | 490 | ||||||
Other | (11) | (10) | ||||||
Total Tier 2 capital – Standardized Approach | 1,487 | 1,728 | ||||||
Excess of expected credit losses | — | 247 | ||||||
Less: Allowance for credit losses | 250 | 490 | ||||||
Total Tier 2 capital – Advanced Approaches | $ | 1,237 | $ | 1,485 | ||||
Total capital: | ||||||||
Standardized Approach | $ | 24,972 | $ | 28,038 | ||||
Advanced Approaches | $ | 24,722 | $ | 27,795 | ||||
Risk-weighted assets: | ||||||||
Standardized Approach | $ | 167,608 | $ | 163,848 | ||||
Advanced Approaches: | ||||||||
Credit Risk | $ | 98,310 | $ | 98,262 | ||||
Market Risk | 3,069 | 4,226 | ||||||
Operational Risk | 63,688 | 63,938 | ||||||
Total Advanced Approaches | $ | 165,067 | $ | 166,426 | ||||
Average assets for Tier 1 leverage ratio | $ | 430,102 | $ | 417,982 | ||||
Total leverage exposure for SLR | $ | 354,033 | $ | 304,823 |
Notes to Consolidated Financial Statements (continued) | ||
Components of other comprehensive (loss) income | Year ended Dec. 31, | ||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
(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) | $ | (313) | $ | (63) | $ | (376) | $ | 441 | $ | 67 | $ | 508 | $ | 135 | $ | 16 | $ | 151 | |||||||||||||||||
Total foreign currency translation | (313) | (63) | (376) | 441 | 67 | 508 | 135 | 16 | 151 | ||||||||||||||||||||||||||
Unrealized (loss) gain on assets available-for-sale: | |||||||||||||||||||||||||||||||||||
Unrealized (loss) gain arising during the period | (1,515) | 368 | (1,147) | 1,573 | (371) | 1,202 | 680 | (168) | 512 | ||||||||||||||||||||||||||
Reclassification adjustment (b) | (5) | 1 | (4) | (33) | 8 | (25) | 18 | (4) | 14 | ||||||||||||||||||||||||||
Net unrealized (loss) gain on assets available-for-sale | (1,520) | 369 | (1,151) | 1,540 | (363) | 1,177 | 698 | (172) | 526 | ||||||||||||||||||||||||||
Defined benefit plans: | |||||||||||||||||||||||||||||||||||
Prior service cost arising during the period | — | — | — | — | — | — | (1) | — | (1) | ||||||||||||||||||||||||||
Net gain (loss) arising during the period | 296 | (77) | 219 | (138) | 31 | (107) | (121) | 34 | (87) | ||||||||||||||||||||||||||
Amortization of prior service credit, net loss and initial obligation included in net periodic benefit cost (b) | 113 | (25) | 88 | 95 | (18) | 77 | 52 | (18) | 34 | ||||||||||||||||||||||||||
Total defined benefit plans | 409 | (102) | 307 | (43) | 13 | (30) | (70) | 16 | (54) | ||||||||||||||||||||||||||
Unrealized (loss) gain on cash flow hedges: | |||||||||||||||||||||||||||||||||||
Unrealized hedge gain (loss) arising during the period | 3 | — | 3 | 5 | (1) | 4 | 16 | (7) | 9 | ||||||||||||||||||||||||||
Reclassification of net (gain) loss to net income: | |||||||||||||||||||||||||||||||||||
Interest rate contracts – interest expense | — | — | — | — | — | — | (7) | 2 | (5) | ||||||||||||||||||||||||||
Foreign exchange (“FX”) contracts – staff expense | (12) | 3 | (9) | 1 | — | 1 | (3) | 2 | (1) | ||||||||||||||||||||||||||
Total reclassifications to net income | (12) | 3 | (9) | 1 | — | 1 | (10) | 4 | (6) | ||||||||||||||||||||||||||
Net unrealized (loss) gain on cash flow hedges | (9) | 3 | (6) | 6 | (1) | 5 | 6 | (3) | 3 | ||||||||||||||||||||||||||
Total other comprehensive (loss) income | $ | (1,433) | $ | 207 | $ | (1,226) | $ | 1,944 | $ | (284) | $ | 1,660 | $ | 769 | $ | (143) | $ | 626 |
Notes to Consolidated Financial Statements (continued) | ||
Non-vested PSU, restricted stock and RSU activity | Number of shares (a) | Weighted-average fair value at grant date | ||||||
Non-vested PSUs, restricted stock and RSUs at Dec. 31, 2020 | 12,536,899 | $ | 49.35 | |||||
Granted | 7,557,597 | 42.67 | ||||||
Vested | (4,789,555) | 51.00 | ||||||
Forfeited | (622,954) | 45.24 | ||||||
Non-vested PSUs, restricted stock and RSUs at Dec. 31, 2021 | 14,681,987 | $ | 45.55 |
Notes to Consolidated Financial Statements (continued) | ||
Stock option activity | Shares subject to option | Weighted-average exercise price | Weighted-average remaining contractual term (in years) | |||||||||||
Balance at Dec. 31, 2020 | 2,335,238 | $ | 23.99 | 0.9 | ||||||||||
Granted | — | — | ||||||||||||
Exercised | (1,910,185) | 24.37 | ||||||||||||
Canceled/Expired | (17,148) | 27.63 | ||||||||||||
Balance at Dec. 31, 2021 | 407,905 | $ | 22.03 | 0.1 | ||||||||||
Vested and expected to vest at Dec. 31, 2021 | 407,905 | 22.03 | 0.1 | |||||||||||
Exercisable at Dec. 31, 2021 | 407,905 | 22.03 | 0.1 |
Aggregate intrinsic value of options | |||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||
Outstanding at Dec. 31, | $ | 15 | $ | 43 | $ | 101 | |||||
Exercisable at Dec. 31, | $ | 15 | $ | 43 | $ | 101 |
Notes to Consolidated Financial Statements (continued) | ||
Pension Benefits | Healthcare Benefits | ||||||||||||||||||||||||||||||||||
Domestic | Foreign | Domestic | Foreign | ||||||||||||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations | |||||||||||||||||||||||||||||||||||
Discount rate | 3.03 | % | 2.80 | % | 2.11 | % | 1.59 | % | 3.03 | % | 2.80 | % | 2.15 | % | 1.65 | % | |||||||||||||||||||
Rate of compensation increase | N/A | N/A | 3.43 | 3.12 | 3.00 | 3.00 | N/A | N/A | |||||||||||||||||||||||||||
Cash balance interest crediting rate | 4.00 | 4.00 | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
Change in benefit obligation (a) | |||||||||||||||||||||||||||||||||||
Benefit obligation at beginning of period | $ | (5,030) | $ | (4,659) | $ | (1,614) | $ | (1,394) | $ | (156) | $ | (145) | $ | (4) | $ | (6) | |||||||||||||||||||
Service cost | — | — | (14) | (12) | (1) | (1) | — | — | |||||||||||||||||||||||||||
Interest cost | (137) | (156) | (25) | (27) | (4) | (5) | — | — | |||||||||||||||||||||||||||
Actuarial gain (loss) | 164 | (455) | 112 | (167) | 17 | (14) | — | 2 | |||||||||||||||||||||||||||
Benefits paid | 256 | 240 | 50 | 47 | 10 | 9 | — | — | |||||||||||||||||||||||||||
Foreign exchange adjustment | N/A | N/A | 35 | (61) | N/A | N/A | 1 | — | |||||||||||||||||||||||||||
Benefit obligation at end of period | (4,747) | (5,030) | (1,456) | (1,614) | (134) | (156) | (3) | (4) | |||||||||||||||||||||||||||
Change in fair value of plan assets | |||||||||||||||||||||||||||||||||||
Fair value at beginning of period | 6,132 | 5,738 | 1,786 | 1,529 | 127 | 117 | — | — | |||||||||||||||||||||||||||
Actual return on plan assets | 238 | 619 | 89 | 232 | 17 | 10 | — | — | |||||||||||||||||||||||||||
Employer contributions | 15 | 15 | 12 | 10 | 10 | 9 | — | — | |||||||||||||||||||||||||||
Benefit payments | (256) | (240) | (50) | (47) | (10) | (9) | — | — | |||||||||||||||||||||||||||
Foreign exchange adjustment | N/A | N/A | (30) | 62 | N/A | N/A | — | — | |||||||||||||||||||||||||||
Fair value at end of period | 6,129 | 6,132 | 1,807 | 1,786 | 144 | 127 | — | — | |||||||||||||||||||||||||||
Funded status at end of period | $ | 1,382 | $ | 1,102 | $ | 351 | $ | 172 | $ | 10 | $ | (29) | $ | (3) | $ | (4) | |||||||||||||||||||
Amounts recognized in accumulated other comprehensive loss (income) consist of: | |||||||||||||||||||||||||||||||||||
Net loss | $ | 1,425 | $ | 1,625 | $ | 3 | $ | 184 | $ | 44 | $ | 77 | $ | (1) | $ | (1) | |||||||||||||||||||
Prior service cost (credit) | — | — | 1 | 2 | (20) | (26) | — | — | |||||||||||||||||||||||||||
Total loss (before tax effects) | $ | 1,425 | $ | 1,625 | $ | 4 | $ | 186 | $ | 24 | $ | 51 | $ | (1) | $ | (1) |
Notes to Consolidated Financial Statements (continued) | ||
Net periodic benefit (credit) cost | Pension Benefits | Healthcare Benefits | |||||||||||||||||||||||||||||||||||||||||||||
Domestic | Foreign | Domestic | Foreign | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Weighted-average assumptions as of Jan. 1: | |||||||||||||||||||||||||||||||||||||||||||||||
Market-related value of plan assets | $ | 5,710 | $ | 5,437 | $ | 5,304 | $ | 1,586 | $ | 1,415 | $ | 1,277 | $ | 123 | $ | 116 | $ | 111 | N/A | N/A | N/A | ||||||||||||||||||||||||||
Discount rate | 2.80 | % | 3.45 | % | 4.45 | % | 1.59 | % | 2.02 | % | 2.95 | % | 2.80 | % | 3.45 | % | 4.45 | % | 1.65 | % | 2.10 | % | 3.10 | % | |||||||||||||||||||||||
Expected rate of return on plan assets | 5.375 | 6.00 | 6.50 | 2.17 | 2.85 | 3.54 | 5.375 | 6.00 | 6.50 | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||
Rate of compensation increase | N/A | N/A | N/A | 3.12 | 3.19 | 2.98 | 3.00 | 3.00 | 3.00 | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||
Cash balance interest crediting rate | 4.00 | 4.00 | 4.00 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||
Components of net periodic benefit (credit) cost: | |||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | 14 | $ | 12 | $ | 11 | $ | 1 | $ | 1 | $ | 1 | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Interest cost | 137 | 156 | 178 | 25 | 27 | 32 | 4 | 5 | 6 | — | — | — | |||||||||||||||||||||||||||||||||||
Expected return on assets | (300) | (319) | (337) | (34) | (39) | (45) | (7) | (7) | (7) | — | — | — | |||||||||||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||||||||||||||||
Prior service cost (credit) | — | — | — | 1 | — | — | (6) | (7) | (7) | — | — | — | |||||||||||||||||||||||||||||||||||
Net actuarial loss | 98 | 87 | 53 | 13 | 11 | 2 | 6 | 4 | 4 | — | — | — | |||||||||||||||||||||||||||||||||||
Settlement loss | — | — | — | 1 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Net periodic benefit (credit) cost | $ | (65) | $ | (76) | $ | (106) | $ | 20 | $ | 11 | $ | — | $ | (2) | $ | (4) | $ | (3) | $ | — | $ | — | $ | — |
Changes in other comprehensive (income) loss in 2021 | Pension Benefits | Healthcare Benefits | |||||||||||||||
(in millions) | Domestic | Foreign | Domestic | Foreign | |||||||||||||
Net (gain) arising during period | $ | (102) | $ | (167) | $ | (27) | $ | — | |||||||||
Recognition of prior years’ net (loss) | (98) | (14) | (6) | — | |||||||||||||
Recognition of prior years’ service credit | — | (1) | 6 | — | |||||||||||||
Total recognized in other comprehensive (income) (before tax effects) | $ | (200) | $ | (182) | $ | (27) | $ | — |
Notes to Consolidated Financial Statements (continued) | ||
Domestic | Foreign | ||||||||||||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||
Pension benefits: | |||||||||||||||||
Prepaid benefit cost | $ | 1,535 | $ | 1,272 | $ | 411 | $ | 284 | |||||||||
Accrued benefit cost | (153) | (170) | (60) | (112) | |||||||||||||
Total pension benefits | $ | 1,382 | $ | 1,102 | $ | 351 | $ | 172 | |||||||||
Healthcare benefits: | |||||||||||||||||
Accrued benefit cost | $ | 10 | $ | (29) | $ | (3) | $ | (4) | |||||||||
Total healthcare benefits | $ | 10 | $ | (29) | $ | (3) | $ | (4) |
Plans with obligations in excess of plan assets | Pension Benefits | Healthcare Benefits | |||||||||||||||||||||||||||||||||
Domestic | Foreign | Domestic | Foreign | ||||||||||||||||||||||||||||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||
Projected benefit obligation | $ | 153 | $ | 170 | $ | 100 | $ | 459 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||
Fair value of plan assets | — | — | 39 | 347 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
Accumulated benefit obligation | 153 | 170 | 82 | 196 | $ | 87 | $ | 94 | $ | 3 | $ | 4 | |||||||||||||||||||||||
Fair value of plan assets | — | — | 39 | 113 | — | — | — | — |
Notes to Consolidated Financial Statements (continued) | ||
Asset allocations | Domestic | Foreign | ||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||
Fixed income | 60 | % | 62 | % | 82 | % | 82 | % | ||||||||||||
Equities | 37 | 36 | 8 | 8 | ||||||||||||||||
Alternative investments | 2 | 2 | 9 | 9 | ||||||||||||||||
Cash | 1 | — | (a) | 1 | 1 | |||||||||||||||
Total pension benefits | 100 | % | 100 | % | 100 | % | 100 | % |
Notes to Consolidated Financial Statements (continued) | ||
Notes to Consolidated Financial Statements (continued) | ||
Plan assets measured at fair value on a recurring basis— domestic plans at Dec. 31, 2020 | ||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total fair value | ||||||||||
Common and preferred stock: | ||||||||||||||
U.S. equity | $ | 578 | $ | — | $ | — | $ | 578 | ||||||
Non-U.S. equity | 147 | — | — | 147 | ||||||||||
Collective trust funds: | ||||||||||||||
U.S. equity | — | 1,285 | — | 1,285 | ||||||||||
Commingled | — | 712 | — | 712 | ||||||||||
Fixed income: | ||||||||||||||
U.S. corporate bonds | — | 2,866 | — | 2,866 | ||||||||||
U.S. Treasury securities | 228 | — | — | 228 | ||||||||||
State and political subdivisions | — | 50 | — | 50 | ||||||||||
Sovereign government obligations | — | 47 | — | 47 | ||||||||||
U.S. government agencies | — | 31 | — | 31 | ||||||||||
Other | — | 37 | — | 37 | ||||||||||
Mutual funds | 1 | — | — | 1 | ||||||||||
Total domestic plan assets in the fair value hierarchy | $ | 954 | $ | 5,028 | $ | — | $ | 5,982 | ||||||
Other assets measured at NAV: | ||||||||||||||
Funds of funds | 135 | |||||||||||||
Venture capital and partnership interests | 15 | |||||||||||||
Total domestic plan assets, at fair value | $ | 6,132 |
Notes to Consolidated Financial Statements (continued) | ||
Notes to Consolidated Financial Statements (continued) | ||
Notes to Consolidated Financial Statements (continued) | ||
Year ended Dec. 31, | |||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||
Dividends from bank subsidiaries | $ | 2,490 | $ | 1,485 | $ | 3,209 | |||||
Dividends from nonbank subsidiaries | 1,106 | 1,199 | 2,075 | ||||||||
Interest revenue from bank subsidiaries | — | — | 4 | ||||||||
Interest revenue from nonbank subsidiaries | 30 | 53 | 153 | ||||||||
(Loss) on securities held for sale | — | — | (11) | ||||||||
Other revenue | 56 | 50 | 39 | ||||||||
Total revenue | 3,682 | 2,787 | 5,469 | ||||||||
Interest expense (including $6, $30 and $64, to subsidiaries, respectively) | 339 | 520 | 941 | ||||||||
Other expense | 153 | 168 | 197 | ||||||||
Total expense | 492 | 688 | 1,138 | ||||||||
Income before income taxes and equity in undistributed net income of subsidiaries | 3,190 | 2,099 | 4,331 | ||||||||
(Benefit) for income taxes | (92) | (289) | (208) | ||||||||
Equity in undistributed net income: | |||||||||||
Bank subsidiaries | 282 | 1,278 | (139) | ||||||||
Nonbank subsidiaries | 195 | (49) | 41 | ||||||||
Net income | 3,759 | 3,617 | 4,441 | ||||||||
Preferred stock dividends and redemption charge | (207) | (194) | (169) | ||||||||
Net income applicable to common shareholders of The Bank of New York Mellon Corporation | $ | 3,552 | $ | 3,423 | $ | 4,272 |
Dec. 31, | ||||||||
(in millions) | 2021 | 2020 | ||||||
Assets: | ||||||||
Cash and due from banks | $ | 356 | $ | 330 | ||||
Securities | 4 | 6 | ||||||
Investment in and advances to subsidiaries and associated companies: | ||||||||
Banks | 34,721 | 36,431 | ||||||
Other | 37,748 | 38,064 | ||||||
Subtotal | 72,469 | 74,495 | ||||||
Corporate-owned life insurance | 786 | 782 | ||||||
Other assets | 623 | 202 | ||||||
Total assets | $ | 74,238 | $ | 75,815 | ||||
Liabilities: | ||||||||
Deferred compensation | $ | 435 | $ | 417 | ||||
Affiliate borrowings | 3,585 | 2,176 | ||||||
Other liabilities | 1,283 | 1,866 | ||||||
Long-term debt | 25,901 | 25,555 | ||||||
Total liabilities | 31,204 | 30,014 | ||||||
Shareholders’ equity | 43,034 | 45,801 | ||||||
Total liabilities and shareholders’ equity | $ | 74,238 | $ | 75,815 |
Year ended Dec. 31, | |||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||
Operating activities: | |||||||||||
Net income | $ | 3,759 | $ | 3,617 | $ | 4,441 | |||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||||||||
Equity in undistributed net (income) loss of subsidiaries | (477) | (1,229) | 98 | ||||||||
Change in accrued interest receivable | 75 | (17) | (12) | ||||||||
Change in accrued interest payable | (15) | (26) | (17) | ||||||||
Change in taxes payable (a) | (142) | (281) | 331 | ||||||||
Other, net | (260) | 368 | (107) | ||||||||
Net cash provided by operating activities | 2,940 | 2,432 | 4,734 | ||||||||
Investing activities: | |||||||||||
Acquisitions of, investments in, and advances to subsidiaries (b) | 870 | (1,442) | 1,495 | ||||||||
Net cash provided (used for) by investing activities | 870 | (1,442) | 1,495 | ||||||||
Financing activities: | |||||||||||
Proceeds from issuance of long-term debt | 5,186 | 2,993 | 1,745 | ||||||||
Repayments of long-term debt | (4,250) | (3,950) | (4,250) | ||||||||
Change in advances from subsidiaries | 820 | 1,195 | 242 | ||||||||
Issuance of common stock | 63 | 58 | 86 | ||||||||
Issuance of preferred stock | 1,287 | 1,567 | — | ||||||||
Treasury stock acquired | (4,567) | (989) | (3,327) | ||||||||
Redemption of preferred stock | (1,000) | (583) | — | ||||||||
Cash dividends paid | (1,323) | (1,296) | (1,289) | ||||||||
Net cash (used for) financing activities | (3,784) | (1,005) | (6,793) | ||||||||
Change in cash and due from banks | 26 | (15) | (564) | ||||||||
Cash and due from banks at beginning of year | 330 | 345 | 909 | ||||||||
Cash and due from banks at end of year | $ | 356 | $ | 330 | $ | 345 | |||||
Supplemental disclosures | |||||||||||
Interest paid | $ | 354 | $ | 546 | $ | 958 | |||||
Income taxes paid | — | 3 | 2 | ||||||||
Income taxes refunded | 1 | — | — |
Notes to Consolidated Financial Statements (continued) | ||
Notes to Consolidated Financial Statements (continued) | ||
Notes to Consolidated Financial Statements (continued) | ||
Notes to Consolidated Financial Statements (continued) | ||
Assets measured at fair value on a recurring basis at Dec. 31, 2021 | Total carrying value | ||||||||||||||||
(dollars in millions) | Level 1 | Level 2 | Level 3 | Netting (a) | |||||||||||||
Available-for-sale securities: | |||||||||||||||||
U.S. Treasury | $ | 29,409 | $ | — | $ | — | $ | — | $ | 29,409 | |||||||
Agency RMBS | — | 14,530 | — | — | 14,530 | ||||||||||||
Sovereign debt/sovereign guaranteed | 6,017 | 7,362 | — | — | 13,379 | ||||||||||||
Agency commercial MBS | — | 8,405 | — | — | 8,405 | ||||||||||||
Supranational | — | 7,573 | — | — | 7,573 | ||||||||||||
Foreign covered bonds | — | 6,238 | — | — | 6,238 | ||||||||||||
CLOs | — | 4,439 | — | — | 4,439 | ||||||||||||
Non-agency commercial MBS | — | 3,125 | — | — | 3,125 | ||||||||||||
Non-agency RMBS | — | 2,748 | — | — | 2,748 | ||||||||||||
Foreign government agencies | — | 2,686 | — | — | 2,686 | ||||||||||||
U.S. government agencies | — | 2,536 | — | — | 2,536 | ||||||||||||
State and political subdivisions | — | 2,514 | — | — | 2,514 | ||||||||||||
Other ABS | — | 2,190 | — | — | 2,190 | ||||||||||||
Corporate bonds | — | 2,066 | — | — | 2,066 | ||||||||||||
Other debt securities | — | 1 | — | — | 1 | ||||||||||||
Total available-for-sale securities | 35,426 | 66,413 | — | — | 101,839 | ||||||||||||
Trading assets: | |||||||||||||||||
Debt instruments | 1,447 | 2,750 | — | — | 4,197 | ||||||||||||
Equity instruments | 9,766 | — | — | — | 9,766 | ||||||||||||
Derivative assets not designated as hedging: | |||||||||||||||||
Interest rate | 6 | 3,253 | — | (1,424) | 1,835 | ||||||||||||
Foreign exchange | — | 6,279 | — | (5,501) | 778 | ||||||||||||
Equity and other contracts | — | 49 | — | (48) | 1 | ||||||||||||
Total derivative assets not designated as hedging | 6 | 9,581 | — | (6,973) | 2,614 | ||||||||||||
Total trading assets | 11,219 | 12,331 | — | (6,973) | 16,577 | ||||||||||||
Other assets: | |||||||||||||||||
Derivative assets designated as hedging: | |||||||||||||||||
Foreign exchange | — | 206 | — | — | 206 | ||||||||||||
Total derivative assets designated as hedging | — | 206 | — | — | 206 | ||||||||||||
Other assets (b) | 438 | 325 | — | — | 763 | ||||||||||||
Total other assets | 438 | 531 | — | — | 969 | ||||||||||||
Assets measured at NAV (b) | 218 | ||||||||||||||||
Total assets | $ | 47,083 | $ | 79,275 | $ | — | $ | (6,973) | $ | 119,603 | |||||||
Percentage of total assets prior to netting | 37 | % | 63 | % | — | % |
Notes to Consolidated Financial Statements (continued) | ||
Liabilities measured at fair value on a recurring basis at Dec. 31, 2021 | Total carrying value | ||||||||||||||||
(dollars in millions) | Level 1 | Level 2 | Level 3 | Netting (a) | |||||||||||||
Trading liabilities: | |||||||||||||||||
Debt instruments | $ | 2,452 | $ | 46 | $ | — | $ | — | $ | 2,498 | |||||||
Equity instruments | 40 | — | — | — | 40 | ||||||||||||
Derivative liabilities not designated as hedging: | |||||||||||||||||
Interest rate | 1 | 2,834 | — | (2,028) | 807 | ||||||||||||
Foreign exchange | — | 6,215 | — | (4,111) | 2,104 | ||||||||||||
Equity and other contracts | 5 | 211 | — | (196) | 20 | ||||||||||||
Total derivative liabilities not designated as hedging | 6 | 9,260 | — | (6,335) | 2,931 | ||||||||||||
Total trading liabilities | 2,498 | 9,306 | — | (6,335) | 5,469 | ||||||||||||
Other liabilities | |||||||||||||||||
Derivative liabilities designated as hedging: | |||||||||||||||||
Interest rate | — | 453 | — | — | 453 | ||||||||||||
Foreign exchange | — | 40 | — | — | 40 | ||||||||||||
Total derivative liabilities designated as hedging | — | 493 | — | — | 493 | ||||||||||||
Other liabilities | 1 | 2 | — | — | 3 | ||||||||||||
Total other liabilities | 1 | 495 | — | — | 496 | ||||||||||||
Total liabilities | $ | 2,499 | $ | 9,801 | $ | — | $ | (6,335) | $ | 5,965 | |||||||
Percentage of total liabilities prior to netting | 20 | % | 80 | % | — | % |
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) | |||||||||||||
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 | — | 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 (b) | 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 (c)(d) | 504 | 285 | — | — | 789 | ||||||||||||
Total other assets | 504 | 304 | — | — | 808 | ||||||||||||
Assets measured at NAV (c) | 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) | |||||||||||||
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 (b) | — | 400 | — | — | 400 | ||||||||||||
Other liabilities: | |||||||||||||||||
Derivative liabilities designated as hedging: | |||||||||||||||||
Interest rate | — | 666 | — | — | 666 | ||||||||||||
Foreign exchange | — | 441 | — | — | 441 | ||||||||||||
Total derivative liabilities designated as hedging | — | 1,107 | — | — | 1,107 | ||||||||||||
Other liabilities (d) | 1 | 2 | — | — | 3 | ||||||||||||
Total other liabilities | 1 | 1,109 | — | — | 1,110 | ||||||||||||
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 | Dec. 31, 2021 | Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||
Total carrying value (b) | Ratings (a) | Total carrying value (b) | Ratings (a) | ||||||||||||||||||||||||||||||||||||||
AAA/ AA- | A+/ A- | BBB+/ BBB- | BB+ and lower | Not rated | AAA/ AA- | A+/ A- | BBB+/ BBB- | BB+ and lower | Not rated | ||||||||||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
Non-agency RMBS, originated in: | |||||||||||||||||||||||||||||||||||||||||
2008-2021 | $ | 2,190 | 100 | % | — | % | — | % | — | % | — | % | $ | 1,548 | 100 | % | — | % | — | % | — | % | — | % | |||||||||||||||||
2007 | 114 | — | 4 | — | 39 | 57 | 179 | 12 | 3 | — | 42 | 43 | |||||||||||||||||||||||||||||
2006 | 181 | — | 24 | — | 33 | 43 | 237 | — | 23 | — | 40 | 37 | |||||||||||||||||||||||||||||
2005 | 167 | 3 | 5 | 1 | 37 | 54 | 227 | 3 | — | 7 | 52 | 38 | |||||||||||||||||||||||||||||
2004 and earlier | 96 | 16 | 10 | 5 | 57 | 12 | 135 | 19 | 10 | 11 | 54 | 6 | |||||||||||||||||||||||||||||
Total non-agency RMBS | $ | 2,748 | 81 | % | 2 | % | — | % | 8 | % | 9 | % | $ | 2,326 | 69 | % | 3 | % | 1 | % | 16 | % | 11 | % | |||||||||||||||||
Non-agency commercial MBS originated in: | |||||||||||||||||||||||||||||||||||||||||
2009-2021 | $ | 3,125 | 100 | % | — | % | — | % | — | % | — | % | $ | 3,017 | 99 | % | 1 | % | — | % | — | % | — | % | |||||||||||||||||
Foreign covered bonds: | |||||||||||||||||||||||||||||||||||||||||
Canada | $ | 2,332 | 100 | % | — | % | — | % | — | % | — | % | $ | 2,552 | 100 | % | — | % | — | % | — | % | — | % | |||||||||||||||||
UK | 1,141 | 100 | — | — | — | — | 1,259 | 100 | — | — | — | — | |||||||||||||||||||||||||||||
Australia | 762 | 100 | — | — | — | — | 951 | 100 | — | — | — | — | |||||||||||||||||||||||||||||
Germany | 638 | 100 | — | — | — | — | 494 | 100 | — | — | — | — | |||||||||||||||||||||||||||||
Norway | 457 | 100 | — | — | — | — | 703 | 100 | — | — | — | — | |||||||||||||||||||||||||||||
Other | 908 | 100 | — | — | — | — | 766 | 100 | — | — | — | — | |||||||||||||||||||||||||||||
Total foreign covered bonds | $ | 6,238 | 100 | % | — | % | — | % | — | % | — | % | $ | 6,725 | 100 | % | — | % | — | % | — | % | — | % | |||||||||||||||||
Sovereign debt/sovereign guaranteed: | |||||||||||||||||||||||||||||||||||||||||
Germany | $ | 3,585 | 100 | % | — | % | — | % | — | % | — | % | $ | 2,222 | 100 | % | — | % | — | % | — | % | — | % | |||||||||||||||||
UK | 1,969 | 100 | — | — | — | — | 1,089 | 100 | — | — | — | — | |||||||||||||||||||||||||||||
France | 1,921 | 100 | — | — | — | — | 1,697 | 100 | — | — | — | — | |||||||||||||||||||||||||||||
Italy | 1,382 | — | — | 100 | — | — | 2,010 | — | — | 100 | — | — | |||||||||||||||||||||||||||||
Singapore | 1,018 | 100 | — | — | — | — | 984 | 100 | — | — | — | — | |||||||||||||||||||||||||||||
Spain | 782 | — | 8 | 92 | — | — | 1,920 | — | 5 | 95 | — | — | |||||||||||||||||||||||||||||
Canada | 630 | 100 | — | — | — | — | 572 | 100 | — | — | — | — | |||||||||||||||||||||||||||||
Hong Kong | 531 | 100 | — | — | — | — | 29 | 100 | — | — | — | — | |||||||||||||||||||||||||||||
Japan | 363 | — | 100 | — | — | — | 408 | — | 100 | — | — | — | |||||||||||||||||||||||||||||
Netherlands | 332 | 100 | — | — | — | — | 491 | 100 | — | — | — | — | |||||||||||||||||||||||||||||
Austria | 309 | 100 | — | — | — | — | 256 | 100 | — | — | — | — | |||||||||||||||||||||||||||||
Ireland | 230 | — | 100 | — | — | — | 252 | — | 100 | — | — | — | |||||||||||||||||||||||||||||
Other (c) | 327 | 64 | — | — | 36 | — | 461 | 73 | — | — | 27 | — | |||||||||||||||||||||||||||||
Total sovereign debt/sovereign guaranteed | $ | 13,379 | 78 | % | 5 | % | 16 | % | 1 | % | — | % | $ | 12,391 | 62 | % | 6 | % | 31 | % | 1 | % | — | % | |||||||||||||||||
Foreign government agencies: | |||||||||||||||||||||||||||||||||||||||||
Netherlands | $ | 765 | 100 | % | — | % | — | % | — | % | — | % | $ | 847 | 100 | % | — | % | — | % | — | % | — | % | |||||||||||||||||
Canada | 566 | 78 | 22 | — | — | — | 511 | 75 | 25 | — | — | — | |||||||||||||||||||||||||||||
France | 301 | 100 | — | — | — | — | 305 | 100 | — | — | — | — | |||||||||||||||||||||||||||||
Norway | 269 | 100 | — | — | — | — | 273 | 100 | — | — | — | — | |||||||||||||||||||||||||||||
Finland | 267 | 100 | — | — | — | — | 225 | 100 | — | — | — | — | |||||||||||||||||||||||||||||
Sweden | 252 | 100 | — | — | — | — | 281 | 100 | — | — | — | — | |||||||||||||||||||||||||||||
Germany | — | — | — | — | — | — | 1,473 | 100 | — | — | — | — | |||||||||||||||||||||||||||||
Other | 266 | 64 | 36 | — | — | — | 220 | 55 | 45 | — | — | — | |||||||||||||||||||||||||||||
Total foreign government agencies | $ | 2,686 | 92 | % | 8 | % | — | % | — | % | — | % | $ | 4,135 | 95 | % | 5 | % | — | % | — | % | — | % |
Notes to Consolidated Financial Statements (continued) | ||
Assets measured at fair value on a nonrecurring basis | Dec. 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) | $ | — | $ | 42 | $ | — | $ | 42 | $ | — | $ | 48 | $ | — | $ | 48 | |||||||||||||
Other assets (b) | — | 265 | — | 265 | — | 131 | — | 131 | |||||||||||||||||||||
Total assets at fair value on a nonrecurring basis | $ | — | $ | 307 | $ | — | $ | 307 | $ | — | $ | 179 | $ | — | $ | 179 |
Summary of financial instruments | Dec. 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 | $ | — | $ | 102,467 | $ | — | $ | 102,467 | $ | 102,467 | |||||||
Interest-bearing deposits with banks | — | 16,636 | — | 16,636 | 16,630 | ||||||||||||
Federal funds sold and securities purchased under resale agreements | — | 29,607 | — | 29,607 | 29,607 | ||||||||||||
Securities held-to-maturity | 12,488 | 44,287 | — | 56,775 | 56,866 | ||||||||||||
Loans (a) | — | 67,026 | — | 67,026 | 66,860 | ||||||||||||
Other financial assets | 6,061 | 1,239 | — | 7,300 | 7,300 | ||||||||||||
Total | $ | 18,549 | $ | 261,262 | $ | — | $ | 279,811 | $ | 279,730 | |||||||
Liabilities: | |||||||||||||||||
Noninterest-bearing deposits | $ | — | $ | 93,695 | $ | — | $ | 93,695 | $ | 93,695 | |||||||
Interest-bearing deposits | — | 224,665 | — | 224,665 | 225,999 | ||||||||||||
Federal funds purchased and securities sold under repurchase agreements | — | 11,566 | — | 11,566 | 11,566 | ||||||||||||
Payables to customers and broker-dealers | — | 25,150 | — | 25,150 | 25,150 | ||||||||||||
Borrowings | — | 956 | — | 956 | 956 | ||||||||||||
Long-term debt | — | 26,701 | — | 26,701 | 25,931 | ||||||||||||
Total | $ | — | $ | 382,733 | $ | — | $ | 382,733 | $ | 383,297 |
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 | ||||||||
Dec. 31, | ||||||||
(in millions) | 2021 | 2020 | ||||||
Assets of consolidated investment management funds: | ||||||||
Trading assets | $ | 443 | $ | 482 | ||||
Other assets | 19 | 5 | ||||||
Total assets of consolidated investment management funds | $ | 462 | $ | 487 | ||||
Liabilities of consolidated investment management funds: | ||||||||
Other liabilities | $ | 3 | $ | 3 | ||||
Total liabilities of consolidated investment management funds | $ | 3 | $ | 3 |
Notes to Consolidated Financial Statements (continued) | ||
Change in fair value of long-term debt (a) | |||||||||||
Year ended Dec. 31, | |||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||
Investment and other revenue - other trading revenue | $ | — | $ | (13) | $ | (16) |
Off-balance sheet credit risks | Dec. 31, 2021 | Dec. 31, 2020 | ||||||
(in millions) | ||||||||
Lending commitments | $ | 46,183 | $ | 47,577 | ||||
Standby letters of credit (“SBLC”) (a) | 1,971 | 2,265 | ||||||
Commercial letters of credit | 56 | 60 | ||||||
Securities lending indemnifications (b)(c) | 487,298 | 469,121 |
Notes to Consolidated Financial Statements (continued) | ||
Standby letters of credit | Dec. 31, 2021 | Dec. 31, 2020 | ||||||
Investment grade | 85 | % | 82 | % | ||||
Non-investment grade | 15 | % | 18 | % |
Financial institutions portfolio exposure (in billions) | Dec. 31, 2021 | ||||||||||
Loans | Unfunded commitments | Total exposure | |||||||||
Securities industry | $ | 1.7 | $ | 17.5 | $ | 19.2 | |||||
Asset managers | 1.7 | 7.1 | 8.8 | ||||||||
Banks | 5.8 | 1.5 | 7.3 | ||||||||
Insurance | 0.2 | 3.4 | 3.6 | ||||||||
Government | 0.1 | 0.2 | 0.3 | ||||||||
Other | 0.7 | 0.9 | 1.6 | ||||||||
Total | $ | 10.2 | $ | 30.6 | $ | 40.8 |
Notes to Consolidated Financial Statements (continued) | ||
Commercial portfolio exposure (in billions) | Dec. 31, 2021 | ||||||||||
Loans | Unfunded commitments | Total exposure | |||||||||
Manufacturing | $ | 0.6 | $ | 3.9 | $ | 4.5 | |||||
Energy and utilities | 0.4 | 3.9 | 4.3 | ||||||||
Services and other | 1.0 | 3.2 | 4.2 | ||||||||
Media and telecom | 0.1 | 0.9 | 1.0 | ||||||||
Total | $ | 2.1 | $ | 11.9 | $ | 14.0 |
Notes to Consolidated Financial Statements (continued) | ||
Notes to Consolidated Financial Statements (continued) | ||
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) | 2021 | 2020 | 2019 | ||||||||||
Interest rate fair value hedges of available-for-sale securities | ||||||||||||||
Derivative | Interest revenue | $ | 786 | $ | (627) | $ | (795) | |||||||
Hedged item | Interest revenue | (785) | 624 | 788 | ||||||||||
Interest rate fair value hedges of long-term debt | ||||||||||||||
Derivative | Interest expense | (646) | 587 | 486 | ||||||||||
Hedged item | Interest expense | 645 | (586) | (483) | ||||||||||
Foreign exchange fair value hedges of available-for-sale securities | ||||||||||||||
Derivative (a) | Foreign exchange revenue | 11 | (9) | 9 | ||||||||||
Hedged item | Foreign exchange revenue | (10) | 11 | (8) | ||||||||||
Cash flow hedge of interest rate risk | ||||||||||||||
Gain reclassified from OCI into income | Interest expense | — | — | 7 | ||||||||||
Cash flow hedges of forecasted FX exposures | ||||||||||||||
Gain (loss) reclassified from OCI into income | Staff expense | 12 | (1) | 3 | ||||||||||
Gain (loss) recognized in the consolidated income statement due to fair value and cash flow hedging relationships | $ | 13 | $ | (1) | $ | 7 |
Notes to Consolidated Financial Statements (continued) | ||
Impact of derivative instruments used in net investment hedging relationships | ||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Derivatives in net investment hedging relationships | Gain or (loss) recognized in accumulated OCI on derivatives Year ended Dec. 31, | Location of gain or (loss) reclassified from accumulated OCI into income | Gain or (loss) reclassified from accumulated OCI into income Year ended Dec. 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||||
FX contracts | $ | 261 | $ | (284) | $ | (19) | Net interest revenue | $ | — | $ | — | $ | — |
Hedged items in fair value hedging relationships | Carrying amount of hedged asset or liability | Hedge accounting basis adjustment increase (decrease) (a) | |||||||||||||||
Dec. 31, | Dec. 31, | ||||||||||||||||
(in millions) | 2021 | 2020 | 2021 | 2020 | |||||||||||||
Available-for-sale securities (b)(c) | $ | 24,400 | $ | 17,536 | $ | 590 | $ | 1,428 | |||||||||
Long-term debt | $ | 22,447 | $ | 14,784 | $ | 183 | $ | 783 |
Impact of derivative instruments on the balance sheet | Notional value | Asset derivatives fair value | Liability derivatives fair value | |||||||||||||||||||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Derivatives designated as hedging instruments: (a)(b) | ||||||||||||||||||||||||||
Interest rate contracts | $ | 46,717 | $ | 31,360 | $ | — | $ | — | $ | 453 | $ | 666 | ||||||||||||||
Foreign exchange contracts | 10,367 | 8,706 | 206 | 19 | 40 | 441 | ||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 206 | $ | 19 | $ | 493 | $ | 1,107 | ||||||||||||||||||
Derivatives not designated as hedging instruments: (b)(c) | ||||||||||||||||||||||||||
Interest rate contracts | $ | 193,747 | $ | 198,865 | $ | 3,259 | $ | 4,482 | $ | 2,835 | $ | 3,880 | ||||||||||||||
Foreign exchange contracts | 915,694 | 813,003 | 6,279 | 7,688 | 6,215 | 7,622 | ||||||||||||||||||||
Equity contracts | 9,659 | 5,142 | 49 | 2 | 211 | 37 | ||||||||||||||||||||
Credit contracts | 190 | 165 | — | — | 5 | 4 | ||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 9,587 | $ | 12,172 | $ | 9,266 | $ | 11,543 | ||||||||||||||||||
Total derivatives fair value (d) | $ | 9,793 | $ | 12,191 | $ | 9,759 | $ | 12,650 | ||||||||||||||||||
Effect of master netting agreements (e) | (6,973) | (8,346) | (6,335) | (7,845) | ||||||||||||||||||||||
Fair value after effect of master netting agreements | $ | 2,820 | $ | 3,845 | $ | 3,424 | $ | 4,805 |
Notes to Consolidated Financial Statements (continued) | ||
Foreign exchange revenue and other trading revenue | Year ended Dec. 31, | ||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | ||||||||||||||
Foreign exchange revenue | $ | 799 | $ | 774 | (a) | $ | 564 | (a) | |||||||||
Other trading revenue | 6 | 13 | (a) | 77 | (a) |
Notes to Consolidated Financial Statements (continued) | ||
Dec. 31, 2021 | Dec. 31, 2020 | |||||||
(in millions) | ||||||||
Aggregate fair value of OTC derivatives in net liability positions (a) | $ | 3,606 | $ | 5,235 | ||||
Collateral posted | $ | 5,388 | $ | 5,568 |
Potential close-out exposures (fair value) (a) | ||||||||
Dec. 31, 2021 | Dec. 31, 2020 | |||||||
(in millions) | ||||||||
If The Bank of New York Mellon’s rating changed to: (b) | ||||||||
A3/A- | $ | 56 | $ | 79 | ||||
Baa2/BBB | $ | 563 | $ | 813 | ||||
Ba1/BB+ | $ | 1,778 | $ | 2,859 |
Notes to Consolidated Financial Statements (continued) | ||
Notes to Consolidated Financial Statements (continued) | ||
Offsetting of derivative liabilities and financial liabilities at Dec. 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 | $ | 3,263 | $ | 2,028 | $ | 1,235 | $ | 1,197 | $ | — | $ | 38 | |||||||||||
Foreign exchange contracts | 5,619 | 4,111 | 1,508 | 29 | — | 1,479 | |||||||||||||||||
Equity and other contracts | 211 | 196 | 15 | — | — | 15 | |||||||||||||||||
Total derivatives subject to netting arrangements | 9,093 | 6,335 | 2,758 | 1,226 | — | 1,532 | |||||||||||||||||
Total derivatives not subject to netting arrangements | 666 | — | 666 | — | — | 666 | |||||||||||||||||
Total derivatives | 9,759 | 6,335 | 3,424 | 1,226 | — | 2,198 | |||||||||||||||||
Repurchase agreements | 64,734 | 54,709 | (b) | 10,025 | 10,025 | — | — | ||||||||||||||||
Securities lending | 1,541 | — | 1,541 | 1,478 | — | 63 | |||||||||||||||||
Total | $ | 76,034 | $ | 61,044 | $ | 14,990 | $ | 12,729 | $ | — | $ | 2,261 |
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 | |||||||||||||||||||||||||||||||||||
Dec. 31, 2021 | Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||
Remaining contractual maturity | Total | Remaining contractual maturity | Total | ||||||||||||||||||||||||||||||||
(in millions) | Overnight and continuous | Up to 30 days | 30-90 days | Over 90 days | Overnight and continuous | Up to 30 days | 30-90 days | Over 90 days | |||||||||||||||||||||||||||
Repurchase agreements: | |||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 56,556 | $ | 304 | $ | 450 | $ | — | $ | 57,310 | $ | 62,381 | $ | — | $ | — | $ | — | $ | 62,381 | |||||||||||||||
Agency RMBS | 2,795 | 1 | — | — | 2,796 | 3,117 | — | 80 | — | 3,197 | |||||||||||||||||||||||||
Corporate bonds | 97 | 77 | 870 | 270 | 1,314 | 190 | 218 | 1,336 | 100 | 1,844 | |||||||||||||||||||||||||
State and political subdivisions | 44 | 16 | 630 | 155 | 845 | 66 | 40 | 864 | — | 970 | |||||||||||||||||||||||||
U.S. government agencies | 503 | — | — | — | 503 | 425 | — | — | — | 425 | |||||||||||||||||||||||||
Sovereign debt/sovereign guaranteed | 160 | — | — | — | 160 | — | — | — | — | — | |||||||||||||||||||||||||
Other debt securities | — | 30 | 245 | — | 275 | 7 | 21 | 138 | — | 166 | |||||||||||||||||||||||||
Equity securities | — | 276 | 1,255 | — | 1,531 | — | 21 | 827 | — | 848 | |||||||||||||||||||||||||
Total | $ | 60,155 | $ | 704 | $ | 3,450 | $ | 425 | $ | 64,734 | $ | 66,186 | $ | 300 | $ | 3,245 | $ | 100 | $ | 69,831 | |||||||||||||||
Securities lending: | |||||||||||||||||||||||||||||||||||
Agency RMBS | $ | 152 | $ | — | $ | — | $ | — | $ | 152 | $ | 161 | $ | — | $ | — | $ | — | $ | 161 | |||||||||||||||
Other debt securities | 88 | — | — | — | 88 | 52 | — | — | — | 52 | |||||||||||||||||||||||||
Equity securities | 1,301 | — | — | — | 1,301 | 822 | — | — | — | 822 | |||||||||||||||||||||||||
Total | $ | 1,541 | $ | — | $ | — | $ | — | $ | 1,541 | $ | 1,035 | $ | — | $ | — | $ | — | $ | 1,035 | |||||||||||||||
Total secured borrowings | $ | 61,696 | $ | 704 | $ | 3,450 | $ | 425 | $ | 66,275 | $ | 67,221 | $ | 300 | $ | 3,245 | $ | 100 | $ | 70,866 |
Notes to Consolidated Financial Statements (continued) | ||
Securities Services segment | ||||||||||||||
Line of business | Primary products and services | Primary types of revenue | ||||||||||||
Asset Servicing | Custody, Trust & Depositary, accounting, ETF services, middle-office solutions, transfer agency, services for private equity and real estate funds, foreign exchange, securities lending, liquidity/lending services, prime brokerage and data analytics | – Investment services fees (includes securities lending revenue) – Net interest revenue – Foreign exchange revenue – Financing-related fees | ||||||||||||
Issuer Services | Corporate Trust (trustee, paying agency, fiduciary, escrow and other financial services) and Depositary Receipts (issuer services and support for brokers and investors) | – Investment services fees – Net interest revenue – Foreign exchange revenue | ||||||||||||
Market and Wealth Services segment | ||||||||||||||
Line of business | Primary products and services | Primary types of revenue | ||||||||||||
Pershing | Clearing and custody, investment, wealth and retirement solutions, technology and enterprise data management, trading services and prime brokerage | – Investment services fees – Net interest revenue | ||||||||||||
Treasury Services | Integrated cash management solutions including payments, foreign exchange, liquidity management, receivables processing and payables management and trade finance and processing | – Investment services fees – Net interest revenue – Foreign exchange revenue | ||||||||||||
Clearance and Collateral Management | Clearance (including U.S. government and global clearing services) and Global Collateral Management (including tri-party services) | – Investment services fees – Net interest revenue | ||||||||||||
Investment and Wealth Management segment | ||||||||||||||
Line of business | Primary products and services | Primary types of revenue | ||||||||||||
Investment Management | Diversified investment management strategies and distribution of investment products | – Investment management fees – Performance fees – Distribution and servicing fees | ||||||||||||
Wealth Management | Investment management, custody, wealth and estate planning, private banking services, investment services and information management | – Investment management fees – Net interest revenue | ||||||||||||
Other segment | Description | Primary types of revenue | ||||||||||||
Includes leasing portfolio, corporate treasury activities including our securities portfolio, derivatives and other trading activity, corporate and bank-owned life insurance, renewable energy and other corporate investments and certain business exits | – Investment and other revenue – Other trading revenue – Net gain (loss) on securities – Net interest revenue (expense) |
Notes to Consolidated Financial Statements (continued) | ||
Notes to Consolidated Financial Statements (continued) | ||
For the year ended Dec. 31, 2021 | Securities Services | Market and Wealth Services | Investment and Wealth Management | Other | Consolidated | |||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||||||
Total fee and other revenue | $ | 5,818 | $ | 3,583 | $ | 3,849 | (a) | $ | 51 | $ | 13,301 | (a) | ||||||||||||||||||||
Net interest revenue (expense) | 1,426 | 1,158 | 193 | (159) | 2,618 | |||||||||||||||||||||||||||
Total revenue (loss) | 7,244 | 4,741 | 4,042 | (a) | (108) | 15,919 | (a) | |||||||||||||||||||||||||
Provision for credit losses | (134) | (67) | (13) | (17) | (231) | |||||||||||||||||||||||||||
Noninterest expense | 5,852 | 2,676 | 2,825 | 161 | 11,514 | |||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 1,526 | $ | 2,132 | $ | 1,230 | (a) | $ | (252) | $ | 4,636 | (a) | ||||||||||||||||||||
Pre-tax operating margin (b) | 21 | % | 45 | % | 30 | % | N/M | 29 | % | |||||||||||||||||||||||
Average assets | $ | 228,915 | $ | 145,123 | $ | 30,980 | $ | 47,214 | $ | 452,232 |
For the year ended Dec. 31, 2020 | Securities Services | Market and Wealth Services | Investment and Wealth Management | Other | Consolidated | |||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||||||
Total fee and other revenue | $ | 5,678 | $ | 3,578 | $ | 3,495 | (a) | $ | 71 | $ | 12,822 | (a) | ||||||||||||||||||||
Net interest revenue (expense) | 1,697 | 1,228 | 197 | (145) | 2,977 | |||||||||||||||||||||||||||
Total revenue (loss) | 7,375 | 4,806 | 3,692 | (a) | (74) | 15,799 | (a) | |||||||||||||||||||||||||
Provision for credit losses | 215 | 100 | 20 | 1 | 336 | |||||||||||||||||||||||||||
Noninterest expense | 5,556 | 2,614 | 2,701 | 133 | 11,004 | |||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 1,604 | $ | 2,092 | $ | 971 | (a) | $ | (208) | $ | 4,459 | (a) | ||||||||||||||||||||
Pre-tax operating margin (b) | 22 | % | 44 | % | 26 | % | N/M | 28 | % | |||||||||||||||||||||||
Average assets | $ | 202,761 | $ | 123,554 | $ | 30,459 | $ | 56,544 | $ | 413,318 |
For the year ended Dec. 31, 2019 | Securities Services | Market and Wealth Services | Investment and Wealth Management | Other | Consolidated | |||||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||||||||||
Total fee and other revenue | $ | 5,461 | $ | 3,465 | $ | 3,485 | (a) | $ | 837 | $ | 13,248 | (a) | ||||||||||||||||||||
Net interest revenue (expense) | 1,896 | 1,230 | 222 | (160) | 3,188 | |||||||||||||||||||||||||||
Total revenue | 7,357 | 4,695 | 3,707 | (a) | 677 | 16,436 | (a) | |||||||||||||||||||||||||
Provision for credit losses | (11) | (5) | (1) | (8) | (25) | |||||||||||||||||||||||||||
Noninterest expense | 5,457 | 2,639 | 2,647 | 157 | 10,900 | |||||||||||||||||||||||||||
Income before income taxes | $ | 1,911 | $ | 2,061 | $ | 1,061 | (a) | $ | 528 | $ | 5,561 | (a) | ||||||||||||||||||||
Pre-tax operating margin (b) | 26 | % | 44 | % | 29 | % | N/M | 34 | % | |||||||||||||||||||||||
Average assets | $ | 167,057 | $ | 95,932 | $ | 29,479 | $ | 53,487 | $ | 345,955 |
Notes to Consolidated Financial Statements (continued) | ||
International operations | International | Total International | Total Domestic | |||||||||||||||||||||||||||||
(in millions) | Europe, the Middle East and Africa | Asia-Pacific region | Other | Total | ||||||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||
Total assets at period end (a) | $ | 94,507 | (b) | $ | 20,280 | $ | 2,519 | $ | 117,306 | $ | 327,132 | $ | 444,438 | |||||||||||||||||||
Total revenue | 4,119 | (b) | 1,144 | 744 | 6,007 | 9,924 | 15,931 | |||||||||||||||||||||||||
Income before income taxes | 1,293 | 572 | 447 | 2,312 | 2,336 | 4,648 | ||||||||||||||||||||||||||
Net income | 1,005 | 445 | 348 | 1,798 | 1,973 | 3,771 | ||||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||
Total assets at period end (a) | $ | 92,374 | (b) | $ | 28,416 | $ | 2,513 | $ | 123,303 | $ | 346,330 | $ | 469,633 | |||||||||||||||||||
Total revenue | 3,964 | (b) | 1,168 | 698 | 5,830 | 9,978 | 15,808 | |||||||||||||||||||||||||
Income before income taxes | 1,549 | 607 | 437 | 2,593 | 1,875 | 4,468 | ||||||||||||||||||||||||||
Net income | 1,179 | 462 | 332 | 1,973 | 1,653 | 3,626 | ||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||
Total assets at period end (a) | $ | 74,504 | (b) | $ | 36,347 | $ | 2,636 | $ | 113,487 | $ | 268,021 | $ | 381,508 | |||||||||||||||||||
Total revenue | 3,833 | (b) | 1,161 | 737 | 5,731 | 10,731 | 16,462 | |||||||||||||||||||||||||
Income before income taxes | 1,447 | 548 | 506 | 2,501 | 3,086 | 5,587 | ||||||||||||||||||||||||||
Net income | 1,116 | 423 | 390 | 1,929 | 2,538 | 4,467 |
Non-cash investing and financing transactions | Year ended Dec. 31, | |||||||||||||||||||
(in millions) | 2021 | 2020 | 2019 | |||||||||||||||||
Transfers from loans to other assets for other real estate owned | $ | 1 | $ | 1 | $ | 2 | ||||||||||||||
Change in assets of consolidated investment management funds | 25 | 242 | 16 | |||||||||||||||||
Change in liabilities of consolidated investment management funds | — | 2 | 1 | |||||||||||||||||
Change in nonredeemable noncontrolling interests of consolidated investment management funds | 53 | 41 | 1 | |||||||||||||||||
Securities purchased not settled | — | 205 | 497 | |||||||||||||||||
Available-for-sale securities transferred to held-to-maturity | 13,800 | 501 | — | |||||||||||||||||
Premises and equipment/capitalized software funded by finance lease obligations | 27 | 10 | 14 | |||||||||||||||||
Premises and equipment/operating lease obligations | 97 | 208 | 1,754 | (a) | ||||||||||||||||
Investment redemptions not settled | — | 9 | 20 |
Directors, Executive Committee and Other Executive Officers |
Performance Graph |
Cumulative shareholder returns | Dec. 31, | ||||||||||||||||||||||||||||||||||
(in dollars) | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||
The Bank of New York Mellon Corporation | $ | 100.0 | $ | 115.7 | $ | 103.1 | $ | 113.0 | $ | 98.4 | $ | 138.3 | |||||||||||||||||||||||
S&P 500 Financials Index (a) | 100.0 | 122.2 | 106.3 | 140.4 | 138.0 | 186.4 | |||||||||||||||||||||||||||||
S&P 500 Index (a) | 100.0 | 121.8 | 116.5 | 153.2 | 181.4 | 233.4 | |||||||||||||||||||||||||||||
Form | Registration Statement | Filer | ||||||||||||
S-8 | 333-233308 | The Bank of New York Mellon Corporation | ||||||||||||
S-8 | 333-198152 | The Bank of New York Mellon Corporation | ||||||||||||
S-8 | 333-174342 | The Bank of New York Mellon Corporation | ||||||||||||
S-8 | 333-171258 | The Bank of New York Mellon Corporation | ||||||||||||
S-8 | 333-150324 | The Bank of New York Mellon Corporation | ||||||||||||
S-8 | 333-150323 | The Bank of New York Mellon Corporation | ||||||||||||
S-8 | 333-149473 | The Bank of New York Mellon Corporation | ||||||||||||
S-8 | 333-144216 | The Bank of New York Mellon Corporation | ||||||||||||
S-3 | 333-228787 | The Bank of New York Mellon Corporation | ||||||||||||
S-3 | 333-261575 | The Bank of New York Mellon Corporation |
/s/ Linda Z. Cook | /s/ Edmund F. Kelly | ||||||||||
Linda Z. Cook, Director | Edmund F. Kelly, Director | ||||||||||
/s/ Joseph J. Echevarria | /s/ Sandra E. O’Connor | ||||||||||
Joseph J. Echevarria, Director | Sandra E. O’Connor, Director | ||||||||||
/s/ M. Amy Gilliland | /s/ Elizabeth E. Robinson | ||||||||||
M. Amy Gilliland, Director | Elizabeth E. Robinson, Director | ||||||||||
/s/ Jeffrey A. Goldstein | /s/ Samuel C. Scott III | ||||||||||
Jeffrey A. Goldstein, Director | Samuel C. Scott III, Director | ||||||||||
/s/ K. Guru Gowrappan | /s/ Frederick O. Terrell | ||||||||||
K. Guru Gowrappan, Director | Frederick O. Terrell, Director | ||||||||||
/s/ Ralph Izzo | /s/ Alfred W. Zollar | ||||||||||
Ralph Izzo, Director | Alfred W. Zollar, Director |
/s/ Thomas P. Gibbons | |||||
Name: Thomas P. Gibbons | |||||
Title: Chief Executive Officer |
/s/ Emily Portney | |||||
Name: Emily Portney | |||||
Title: Chief Financial Officer |
Dated: February 25, 2022 | /s/ Thomas P. Gibbons | |||||||||||||
Name: | Thomas P. Gibbons | |||||||||||||
Title: | Chief Executive Officer |
Dated: February 25, 2022 | /s/ Emily Portney | |||||||||||||
Name: | Emily Portney | |||||||||||||
Title: | Chief Financial Officer |