Global reach and scale
Breadth of franchise
1 See “Supplemental Information: Explanation of GAAP and non-GAAP financial measures" for the reconciliations
2 Rankings are relative to their respective Morningstar peer categories on a three-year basis.
There’s a productivity problem in the wealth advisory industry, presenting a growth opportunity for firms that can solve it. Just one year after launching Pershing X, our proprietary advisory solution that aims to transform the marketplace, we released a preliminary version to select clients. This is a testament to our ability to execute on a tight timeline. We have set our sights high for 2023, with a broader rollout expected later this year.
Three years ago, we announced the Future of Collateral, an initiative to enhance our capabilities to meet the increasingly complex demands of clients. Following investments in state-of-the-art technology, our collateral platform is more resilient, supports harmonization, and helps clients to optimize, mobilize, and connect collateral around the world. Our enhanced capabilities, together with the complementary services we deliver with leading fintechs, will benefit our clients and should create opportunities in the years to come.
We see real-time payments as enabling a more efficient, transparent and frictionless future for clients, while also saving them money and reducing the financial industry’s carbon footprint. As the first bank to execute a real-time payment in the United States using The Clearing House’s network, BNY Mellon is positioned to help institutions and people around the world make payments instantly and take ownership of their finances. We enjoy a relatively unconflicted position in the U.S. payment industry, without attachment to interchange fees or the bricks and mortar that can inhibit self-disruption. We also see possibilities in the growth of request-for-payment technology for consumers, and we intend to continue making investments in this space.
Our potential as a company depends on cultivating a high-performing and diverse culture. We are focused on empowering employees to act as owners of their individual roles and shareholders of the company as a whole. We recently initiated an equity grant program called “BK Shares” so that almost all employees now own BNY Mellon stock, helping align the firm with our vision. We also took a closer look at annual compensation to commensurately reward the people who consistently deliver commercial success, while ensuring the appropriate shape of our workforce for the road ahead. These changes allow us to run the organization more efficiently and reinvest in new benefits programs and emerging talent — and we expect to break our record for college recruitment in 2023.
a Return on tangible common equity, a non-GAAP measure, excludes goodwill and intangible assets, net of deferred tax liabilities. See “Supplemental information: Explanation of GAAP and non-GAAP financial measures” for a reconciliation.
b Adjusted measures exclude notable items. See “Supplemental information: Explanation of GAAP and non-GAAP financial measures”.
c Consists of AUC/A, primarily from the Asset Servicing line of business and, to a lesser extent, the Clearance and Collateral Management, Issuer Services, Pershing and Wealth Management lines of business. Includes the AUC/A of CIBC Mellon Global Securities Services Company, a joint venture.
d Excludes assets managed outside of the Investment and Wealth Management business segment.
e For our CET1, Tier 1 capital and Total capital ratios, our effective capital ratios under U.S. capital rules are the lower of the ratios as calculated under the Standardized and Advanced Approaches, which for Dec. 31, 2022 was the Advanced Approaches, and for Dec. 31, 2021 was the Standardized Approach.
1 Notable items impacting total revenue in 2022 include the net loss from repositioning the securities portfolio, the accelerated amortization of deferred costs for depositary receipts services related to Russia and net gains on disposals. Notable items impacting total pre-tax income in 2022 also include the goodwill impairment, severance expense and litigation reserves. Notable items impacting total pre-tax income in 2012 include merger and integration charges, litigation reserves, restructuring charges and a charge related to investment management funds, net of incentives.