The Bank of New York Mellon(BK) - 2023 Q3 - Quarterly Report

Financial Performance - Total revenue for Q3 2023 was $4,374 million, a slight decrease of 1.8$4,454 million in Q2 2023 and an increase of 2.2% from $4,279 million in Q3 2022[204]. - Net income applicable to common shareholders for Q3 2023 was$956 million, down 7.3% from $1,031 million in Q2 2023 and up significantly from$319 million in Q3 2022[206]. - Earnings per share (EPS) for Q3 2023 was $1.23 (basic) and$1.22 (diluted), compared to $1.31 (basic) and$1.30 (diluted) in Q2 2023, and $0.39 in Q3 2022[208]. - Comprehensive income applicable to shareholders for Q3 2023 was$835 million, compared to $1,008 million in Q2 2023 and a loss of$932 million in Q3 2022[210]. - Year-to-date net income applicable to common shareholders reached $2,892 million as of September 30, 2023, compared to$1,853 million for the same period in 2022[206]. - Net income for the nine months ended September 30, 2023, was $3,085 million, compared to$2,017 million for the same period in 2022, representing a 53% increase[215]. - Net income for the quarter ending September 30, 2023, was $1,041 million, compared to$1,068 million for the previous quarter, reflecting a decrease of approximately 2.5%[217]. Revenue Sources - Total fee and other revenue for Q3 2023 was $3,355 million, slightly up from$3,353 million in Q3 2022, reflecting a growth of 0.1%[289]. - Investment services fees for Q3 2023 amounted to $1,259 million, an increase from$1,233 million in Q3 2022, marking a growth of 2.1%[289]. - Total fee and other revenue for the third quarter of 2023 was $4,511 million, compared to$3,082 million in the same quarter of 2022, representing an increase of 46.3%[298]. - Net interest revenue for the third quarter of 2023 was $1,016 million, compared to$926 million in the same quarter of 2022, reflecting a year-over-year increase of 9.7%[298]. Expenses and Provisions - Total noninterest expense for Q3 2023 was $3,089 million, a slight decrease from$3,111 million in Q2 2023 and a significant decrease from $3,679 million in Q3 2022[204]. - The provision for credit losses was$3 million in Q3 2023, compared to $5 million in Q2 2023 and a recovery of$30 million in Q3 2022[204]. - The provision for credit losses for the quarter was $11 million, reflecting a decrease from$30 million in the previous quarter[249]. - Noninterest expense totaled $3,089 million, with the highest allocation to Securities Services at$1,585 million[400]. Assets and Liabilities - Total assets as of September 30, 2023, were $405,248 million, slightly down from$405,783 million at the end of 2022[213]. - Total liabilities decreased to $364,117 million from$364,933 million, reflecting a reduction of about 0.2%[213]. - Total deposits decreased to $277,467 million from$278,970 million, a decline of approximately 0.5%[213]. - Total permanent equity as of September 30, 2023, was $41,022 million, an increase from$40,998 million at June 30, 2023[218]. Securities and Investments - Total available-for-sale securities as of September 30, 2023, amounted to $83,074 million, with gross unrealized losses of$6,170 million[228]. - The total fair value of held-to-maturity securities was $51,007 million, reflecting gross unrealized losses of$6,798 million[228]. - The total market value of securities received that can be sold or repledged was $191 billion as of September 30, 2023, compared to$115 billion at December 31, 2022, showing a significant increase of 66.96%[243]. - The total amount of available-for-sale securities was $77.22 billion with an average yield of 2.97$211 million from $176 million, indicating a rise in provisions for potential loan defaults[213]. - Nonperforming loans totaled$46 million as of September 30, 2023, compared to $107 million as of December 31, 2022[253]. - The total allowance for loan losses was$191 million, an increase from $164 million in the previous quarter[250]. - The total allowance for credit losses for the nine months ended September 30, 2023, was$254 million[251]. Shareholder Returns - The company repurchased $450 million of common stock during the quarter, contributing to a total treasury stock of$(26,696) million[217]. - Dividends paid on common stock were $333 million at a rate of$0.42 per share for the quarter ending September 30, 2023[217]. - Common stock dividends amounted to $860 million at a rate of$1.05 per share[222]. Tax and Regulatory Matters - The effective tax rate for the third quarter of 2023 was 18.8%, down from 38.4% in the same quarter of 2022[302]. - The company’s total tax reserves as of September 30, 2023, were $109 million, compared to$106 million at December 31, 2022[303]. - The company is cooperating with inquiries from the SEC and the Commodity Futures Trading Commission regarding compliance with recordkeeping obligations[393]. Legal and Compliance Issues - BNY Mellon is currently unable to estimate a range of reasonably possible loss for certain legal matters, but the aggregate range of reasonably possible loss is up to $590 million in excess of any accrued liability[389]. - In a lawsuit filed by Postalis, a judgment of approximately$2 million was entered against DTVM and Ativos, which is currently under appeal[390]. - The German tax authorities have issued secondary liability notices totaling approximately $150 million related to pre-acquisition activities in various funds[392].