Does this 8-K change BNY Mellon's reported net income or earnings per share?

Only marginally. Restated FY23 net income is $3,304 million, up $16 million from the previously reported $3,288 million, and FY23 diluted EPS is $3.89 versus $3.87. FY22 diluted EPS moves from $2.90 to $2.88. The company states the ASU adoption did not materially affect consolidated net income or EPS.

What is ASU 2023-02 and why does it matter here?

ASU 2023-02 allows companies to use the proportional amortization method for certain tax credit investments that meet eligibility criteria. For BNY Mellon, it applies to renewable energy projects. Under this method, the investment's amortization is recorded within income tax expense rather than as a reduction of investment revenue. The result is higher reported investment and other revenue and a higher tax provision, with a small net effect on income.

Did the business realignments change the company's overall financial results?

No. The realignments moved certain products and services between lines of business within the Securities Services, Market and Wealth Services, and Investment and Wealth Management segments. Consolidated results were unchanged. For example, Pershing revenue was reduced and Clearance and Collateral Management revenue was increased in the restated Market and Wealth Services data, so segment comparisons should use the revised figures.

What drove the weak fourth quarter 2023 results?

4Q23 pre-tax income was $279 million, versus $1,328 million in 3Q23. The main driver was a $670 million bank assessment charge, which includes the FDIC special assessment, along with a $127 million additional revision to that estimate. Noninterest expense rose to $3,995 million, and provision for credit losses increased to $84 million. Net income attributable to common shareholders was $162 million, or $0.21 per diluted share.

Should investors change their view of the company based on this filing?

The filing is largely a presentational update that improves comparability of segment data and does not alter the company's economic position. Investors should focus on the underlying trends: full-year FY23 results were solid, while the 4Q23 decline reflects a one-time, industry-wide regulatory assessment rather than a change in operating performance. The filing provides no new guidance, so forward-looking views should rest on the 10-K and subsequent earnings disclosures.

Bank of New York Mellon Corp 8-K SEC Disclosure

01—Abstract

Summary

Summary of the 8-K filed March 26, 2024. Cited figures are marked; the original filing is the authoritative source.

On March 26, 2024, BNY Mellon filed a supplemental 8-K to republish five quarters of segment and consolidated financial data (4Q22 through 4Q23, plus FY22 and FY23) reflecting two changes: the retrospective adoption on Jan.

1, 2024 of ASU 2023-02 for its renewable energy tax credit investments, and realignments of products across its lines of business. The company states the realignments did not change consolidated results, and the ASU adoption did not materially change consolidated net income or EPS for 2022 or 2023. The exhibit also incorporates a $127 million^a pre-tax ($97 million after-tax) increase in FDIC special assessment expense, included in the 10-K filed Feb.

28, 2024. The main effect of the ASU change is a reclassification between investment and other revenue and income tax provision: FY23 investment and other revenue rises by $195 million to $480 million^b, and the tax provision rises by $179 million to $979 million, with net income up only $16 million to $3,304 million. For investors, the restatement is largely presentational.

Reported FY23 diluted EPS is essentially unchanged at $3.89^c (previously $3.87), and FY22 diluted EPS moves from $2.90 to $2.88. Quarterly changes are small, with 4Q23 net income rising from $203 million to $206 million. Because the exhibit reflects the full-year and quarterly figures as they will be presented going forward, it provides a cleaner baseline for comparing segment performance, especially in Investment and Wealth Management, where the realignment shifts revenue and expense between Investment Management and Wealth Management.

The headline 4Q23 figures remain weak relative to prior quarters, driven by the $670 million^d bank assessment charge (including the FDIC special assessment), which pushed 4Q23 pre-tax margin to 6% and diluted EPS to $0.21. Full-year FY23 results were solid, with net income of $3.3 billion, total revenue up 7% to $17.7 billion, and a CET1 ratio of 11.5% at year-end. The 8-K itself carries no new guidance and no new strategic announcements.

02—Key points

Key Highlights

ASU 2023-02 adoption (effective Jan. 1, 2024, applied retrospectively) raises FY23 investment and other revenue by $195 million to $480 million and FY23 income tax provision by $179 million to $979 million.
Net income impact is minimal: FY23 net income rises $16 million to $3,304 million; FY23 diluted EPS is $3.89 versus $3.87 previously reported.
Business realignments (e.g., Pershing and Clearance and Collateral Management moving between lines) shift segment revenue and expense but do not change consolidated results.
A $127 million pre-tax ($97 million after-tax) increase in FDIC special assessment expense for 4Q23 and FY23 is reflected, based on February 2024 FDIC guidance.
4Q23 diluted EPS was $0.21 on a $670 million bank assessment charge, versus $1.23 in 3Q23, reflecting a pre-tax margin of 6%.
FY23 total revenue grew 7% to $17.7 billion and year-end CET1 ratio was 11.5%, with AUC/A at $47.8 trillion and AUM at $1.97 trillion at Dec. 31, 2023.

03—Questions

Frequently Asked Questions

Does this 8-K change BNY Mellon's reported net income or earnings per share?
Only marginally. Restated FY23 net income is $3,304 million, up $16 million from the previously reported $3,288 million, and FY23 diluted EPS is $3.89 versus $3.87. FY22 diluted EPS moves from $2.90 to $2.88. The company states the ASU adoption did not materially affect consolidated net income or EPS.
What is ASU 2023-02 and why does it matter here?
ASU 2023-02 allows companies to use the proportional amortization method for certain tax credit investments that meet eligibility criteria. For BNY Mellon, it applies to renewable energy projects. Under this method, the investment's amortization is recorded within income tax expense rather than as a reduction of investment revenue. The result is higher reported investment and other revenue and a higher tax provision, with a small net effect on income.
Did the business realignments change the company's overall financial results?
No. The realignments moved certain products and services between lines of business within the Securities Services, Market and Wealth Services, and Investment and Wealth Management segments. Consolidated results were unchanged. For example, Pershing revenue was reduced and Clearance and Collateral Management revenue was increased in the restated Market and Wealth Services data, so segment comparisons should use the revised figures.
What drove the weak fourth quarter 2023 results?
4Q23 pre-tax income was $279 million, versus $1,328 million in 3Q23. The main driver was a $670 million bank assessment charge, which includes the FDIC special assessment, along with a $127 million additional revision to that estimate. Noninterest expense rose to $3,995 million, and provision for credit losses increased to $84 million. Net income attributable to common shareholders was $162 million, or $0.21 per diluted share.
Should investors change their view of the company based on this filing?
The filing is largely a presentational update that improves comparability of segment data and does not alter the company's economic position. Investors should focus on the underlying trends: full-year FY23 results were solid, while the 4Q23 decline reflects a one-time, industry-wide regulatory assessment rather than a change in operating performance. The filing provides no new guidance, so forward-looking views should rest on the 10-K and subsequent earnings disclosures.

04—Continue

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