8-KOther EventsExhibits & Filings

Bank of New York Mellon Corp 8-K Report, Corporate Update (Feb 12, 2013)

Filed February 12, 2013For Securities:BKBK-PKBNYBNY-PK

Summary

The Bank of New York Mellon Corporation (BK) has filed an 8-K report on February 12, 2013, disclosing a significant event related to a U.S. Tax Court ruling. The ruling pertains to the disallowance of certain foreign tax credits claimed by BNY Mellon for the 2001 and 2002 tax years. This is expected to result in an after-tax charge of approximately $850 million in the first quarter of 2013. Despite this substantial charge, BNY Mellon anticipates maintaining its well-capitalized status. The report also indicates that the charge is expected to impact the company's Basel III Tier 1 common equity ratio by approximately 55 basis points. Investors should note that while BNY Mellon is providing forward-looking statements regarding its capital position and the impact of the charge, these are subject to risks and uncertainties that could cause actual results to differ.

Key Highlights

  • 1BNY Mellon expects an after-tax charge of approximately $850 million due to a U.S. Tax Court ruling on foreign tax credits.
  • 2The charge relates to the disallowance of foreign tax credits claimed for the 2001 and 2002 tax years.
  • 3The company anticipates this charge will be recognized in the first quarter of 2013.
  • 4BNY Mellon expects to remain well capitalized following the charge.
  • 5The Basel III Tier 1 common equity ratio is projected to be impacted by approximately 55 basis points.
  • 6The company has attached a press release dated February 11, 2013, as Exhibit 99.1 to this filing.
  • 7Forward-looking statements are included, subject to risks and uncertainties detailed in other SEC filings.

Frequently Asked Questions

The charge of approximately $850 million (after-tax) is a result of a U.S. Tax Court ruling that disallowed certain foreign tax credits previously claimed by BNY Mellon for the 2001 and 2002 tax years.

BNY Mellon expects to recognize this charge during the first quarter of 2013.

Despite the significant charge, BNY Mellon expects to continue to be well capitalized. The company also anticipates that its Basel III Tier 1 common equity ratio will be reduced by approximately 55 basis points.

Yes, the report contains forward-looking statements concerning the charge and its impact on capital. These statements are subject to significant risks and uncertainties, and actual results could differ materially. Investors are advised to review the risk factors outlined in BNY Mellon's other SEC filings, including its Form 10-K for the year ended December 31, 2011, and its Form 10-Q filings for subsequent quarters.