10-KPeriod: FY2017

Bank of New York Mellon Corp Annual Report, Year Ended Dec 31, 2017

Filed February 28, 2018For Securities:BKBK-PKBNYBNY-PK

Summary

This 10-K filing for The Bank of New York Mellon Corporation (BK) as of December 31, 2017, details the company's robust operations in investment management and investment services, managing $33.3 trillion in assets under custody/administration and $1.9 trillion in assets under management. The report underscores BNY Mellon's extensive history, dating back to 1784, and its two primary U.S. banking subsidiaries responsible for core services. It also highlights the company's global presence with significant operations across Europe, Poland, and India, underscoring its international reach and regulatory oversight by various global authorities. Investors should note BNY Mellon's competitive landscape, which includes a wide array of financial services firms, and the company's strategic focus on service quality and technological innovation. The filing also touches upon risk factors, corporate governance, executive compensation, and detailed financial data, all of which are critical for a comprehensive understanding of the company's financial health and strategic direction. The company's primary banking subsidiaries are subject to FDIC insurance and regulatory oversight from the Federal Reserve and other international bodies, reflecting a well-regulated operational environment.

Financial Highlights

40 data points
Beta

Revenue

$15.54B

Net Income

$4.09B

26.3% Net Margin

EPS (Diluted)

$3.72

Total Assets

$371.76B

Cash & Equivalents

$7.13B

Free Cash Flow

$3.47B

Financial Statements
Beta
Revenue$15.54B
Interest Expense$1.07B
Net Income$4.09B
EPS (Basic)$3.74
EPS (Diluted)$3.72
Shares Outstanding (Basic)1.03B
Shares Outstanding (Diluted)1.04B

Key Highlights

  • 1BNY Mellon is a major global financial services company with significant scale, holding $33.3 trillion in assets under custody/administration and $1.9 trillion in assets under management as of December 31, 2017.
  • 2The company operates through two main segments: Investment Management and Investment Services, supported by a history dating back to 1784.
  • 3BNY Mellon has a substantial global footprint, with significant operations in Europe (including a key subsidiary in Belgium), Poland, and India, indicating broad international reach.
  • 4The filing emphasizes BNY Mellon's commitment to technological innovation and service quality as key competitive differentiators in a highly competitive financial services market.
  • 5The company's financial statements and results of operations are detailed in the Management's Discussion and Analysis (MD&A) and accompanying notes, providing insights into financial condition.
  • 6Disclosure controls and procedures were evaluated by management and deemed effective as of December 31, 2017, with no material changes to internal controls over financial reporting during the fourth quarter of 2017.
  • 7The company is subject to extensive government rulemaking, regulation, and supervision, which can materially impact its business operations and financial condition.

Frequently Asked Questions

BNY Mellon's operations are primarily divided into two business segments: Investment Management and Investment Services. An 'Other' segment includes leasing portfolios, corporate treasury activities, derivatives and trading, corporate and bank-owned life insurance, renewable energy investments, and business exits.

As of December 31, 2017, BNY Mellon reported $33.3 trillion in assets under custody and/or administration and $1.9 trillion in assets under management.

BNY Mellon competes across all areas of its business by focusing on customer service, the quality and range of its products and services, pricing, reputation, rates, lending limits, and customer convenience. The company also emphasizes technological innovation and the ability to recover quickly from unexpected events as key competitive factors.

BNY Mellon and its subsidiaries are subject to extensive government rulemaking, regulation, and supervision. Its principal U.S. banking subsidiaries are regulated by applicable bank regulatory authorities and their deposits are insured by the FDIC. Non-U.S. banking subsidiaries are subject to non-U.S. regulatory authorities in addition to the Board of Governors of the Federal Reserve System. Specific regulations and oversight are detailed in the 'Supervision and Regulation' section of the MD&A.