The **increase in cash in Q3 2024** was driven by **liquidity management adjustments**. Specifically, there was a reduction in **interest-bearing deposits with the Federal Reserve and other central banks** (which decreased from **$111,550 million at December 31, 2023** to **$102,231 million at September 30, 2024**) and an increase in **federal funds sold and securities purchased under resale agreements** (which increased from **$28,900 million to $36,164 million**) that helped optimize available funds.  **[0001390777-24-000133_bk-20240930.htm:64]** **[0001390777-24-000133_bk-20240930.htm:39]** 

What drove the increase in cash in Q3 2024?

The spike in total assets in Q1 2024 was primarily driven by **higher securities**, **increased interest-bearing deposits with the Federal Reserve and other central banks**, and **higher loans**. Specifically, securities grew due to increases in non-U.S. government securities, U.S. Treasury securities, and agency RMBS; interest-bearing deposits rose from **$112 billion** to **$119 billion**; and loans expanded from **$67 billion** to **$74 billion**, largely from higher overdrafts and loans in the financial institutions portfolio.  **[0001390777-24-000075_bk-20240331.htm:23]** **[0001390777-24-000075_bk-20240331.htm:59]** 

What contributed to the spike in total assets in Q1 2024?

The noticeable rise in long-term debt during Q3 2024 was primarily due to additional debt issuances totaling **$5.0 billion** and an increase in the fair value of hedged long-term debt. These factors, however, were partially offset by **maturities and redemptions of $3.5 billion** during the period, with **$1.7 billion** expected to mature in the remaining part of 2024.  **[0001390777-24-000133_bk-20240930.htm:41]** 

Why did long-term debt rise noticeably in Q3 2024?

The higher net loans in Q1 2024 were primarily driven by a temporary factor known as the **"Good Friday effect."** This factor occurred when clients leveraged their overdraft facilities heading into the Good Friday weekend, which resulted in a spike in spot balances at the end of the quarter.  **[0001390777-24-000075_bk-20240331.htm:59]** **[BK_3379865_21]** 

What factors led to higher net loans in Q1 2024?

The jump in U.S. interest-bearing deposits in Q1 2024 was driven by several factors. **Higher overall deposit balances** increased by **9%** to **$309.0 billion**, thanks in part to a **4% rise** in interest-bearing deposits (which reached **$245.6 billion**), offsetting a **5% reduction** in noninterest-bearing deposits. Additionally, **higher interest rates** encouraged clients to hold more interest-bearing deposits, and this shift was supported by favorable **market and seasonal trends** and enhanced **liquidity management** practices with available funds rising from **$158 billion** to **$165 billion**.  **[0001390777-24-000075_bk-20240331.htm:32]** **[0001390777-24-000075_bk-20240331.htm:23]** **[BK_3379865_5]** 

What caused the jump in U.S. interest-bearing deposits in Q1 2024?

f573bc199aec14c8638da886880a0135178ed659c40633088c26b3cc67397d45

The **negative operating cash flow** in Q4 2023 was largely driven by several factors. There was a **provision for credit losses of $84 million** and a dramatic increase in **noninterest expenses, reaching $3.9 billion**—including about **$752 million** for FDIC special assessments, severance, and litigation reserves. In addition, volatile changes in trading assets and liabilities as well as adjustments from accruals also contributed to the significant cash outflows during that quarter.  **[0001390777-24-000003_ex991_earningsreleasex4q23.htm:0]** 

Why was operating cash flow so negative in Q4 2023?

The sharp decline in FY 2023 operating cash flow was primarily driven by **changes in accruals and other, net** and a **decrease in the favorable impact of changes in trading assets and liabilities** compared to FY 2022.  **[0001390777-24-000051_bk-20231231_d2.htm:48]** **[0001390777-24-000051_bk-20231231_d2.htm:216]** 

What factors drove the sharp decline in full-year operating cash flow in FY 2023?

Operating cash flow turned negative in Q1 2024 primarily because **changes in trading assets and liabilities** and **changes in accruals and other, net** had a substantial negative impact, which more than offset the earnings during the period.  **[0001390777-24-000075_bk-20240331.htm:60]** **[0001390777-24-000075_bk-20240331.htm:37]** **[0001390777-24-000075_bk-20240331.htm:36]** 

What caused operating cash flow to turn negative in Q1 2024?

The operating cash flow dropped from **$2,129.00 million** in Q2 2024 to **($312.00) million** in Q3 2024 primarily due to adverse changes in working capital. Specifically, there was a **$4,318 million decrease** in cash flow from changes in trading assets and liabilities, coupled with a **$1,243 million decrease** from changes in accruals and other, net, which more than offset the positive contributions from earnings.  **[0001390777-24-000105_bk-20240630.htm:66]** **[0001390777-24-000133_bk-20240930.htm:65]** 

Why did operating cash flow drop from Q2 2024 to Q3 2024?

83514f5f1172bf88985b21f62fcbca506e42dfac7de0f8e6f71a39e7aaef8f6a

The significant drop in net income in Q4 2023 was driven by several factors. **Notable items impacting noninterest expense**—including a **$505 million FDIC special assessment**, **$200 million in severance costs**, and **$47 million in litigation reserves**—substantially increased expenses.  **[0001390777-24-000003_ex991_earningsreleasex4q23.htm:0]** **[0001390777-24-000003_ex993_financialhighlight.htm:10]**  Additionally, there was a **reduction in investment and other revenue** of **$150 million** due to a fair value adjustment related to a prior-year divestiture.  **[0001390777-24-000003_ex991_earningsreleasex4q23.htm:0]** **[0001390777-24-000003_ex993_financialhighlight.htm:10]**  The **provision for credit losses** also spiked to **$84 million** from **$3 million** in the previous quarter and **$20 million** in Q4 2022, further impacting profitability.  **[0001390777-24-000003_ex991_earningsreleasex4q23.htm:9]** **[0001390777-24-000003_ex991_earningsreleasex4q23.htm:0]**  Lastly, **lower fee revenue** compounded these issues, leading to the overall **73% drop** in net income compared to Q3 2023.  **[0001390777-24-000003_ex991_earningsreleasex4q23.htm:9]** **[0001390777-24-000003_ex991_earningsreleasex4q23.htm:0]** 

Why did net income drop so significantly in Q4 2023?

The sharp decline in **Investment and other revenue** in **Q4 2023** was mainly caused by several factors. First, there was a **$150 million reduction** arising from a **fair value adjustment of a contingent consideration receivable**. Additionally, the quarter experienced **$48 million in net securities losses** and a **$118 million loss** in the "Other (loss) income" category. Losses from **renewable energy investments** amounting to **$45 million** also contributed to the overall decline. Combined, these factors resulted in a negative **$4 million** in total investment and other revenue for Q4 2023 compared to **$113 million** in Q3 2023.  **[BK_3370239_3]** **[0001390777-24-000003_ex992_financialsupplementx.htm:4]** 

What caused the sharp decline in Investment and other revenue in Q4 2023?

The spike in **Provision for credit losses** in **Q4 2023** was primarily driven by **reserve builds for commercial real estate exposure** and changes in the **macroeconomic forecast**.  **[BK_3370239_3]** **[0001390777-24-000003_ex992_financialsupplementx.htm:14]** **[0001390777-24-000003_ex992_financialsupplementx.htm:1]** 

Why did the Provision for credit losses spike in Q4 2023?

The **dramatic increase** in Bank assessment charges in Q4 2023 was attributed to the **FDIC special assessment**, which significantly contributed to the rise in noninterest expenses that quarter.  **[0001390777-24-000051_bk-20231231_d2.htm:11]** **[0001390777-24-000003_ex992_financialsupplementx.htm:2]** **[0001390777-24-000055_ex991_revisedfinancialsupp.htm:8]** 

What led to the dramatic increase in Bank assessment charges in Q4 2023?

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Net cash (used for)/provided by operating activities (USD, millions)

Net cash (used for)/provided by investing activities (USD, millions)

Net cash provided by/(used for) financing activities (USD, millions)

Change in cash and due from banks and restricted cash (USD, millions)

Cash and due from banks and restricted cash at beginning of period (USD, millions)

Cash and due from banks and restricted cash at end of period (USD, millions)

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Net income applicable to common shareholders of The Bank of New York Mellon Corporation (USD, millions)

Total fee and other revenue (USD, millions)

Net interest income (USD, millions)

Total revenue (USD, millions)

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Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

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Total Revenue (USD, millions)

Cost of Goods Sold (COGS) (USD, millions)

Selling, General, and Administrative Expenses (SG&A) (USD, millions)

Research and Development (R&D) (USD, millions)

Depreciation and Amortization (D&A) (USD, millions)

Interest Expense (USD, millions)

Operating Income (EBIT) (USD, millions)

Net Income (USD, millions)

Earnings Per Share (EPS) - Basic (USD)

Earnings Per Share (EPS) - Diluted (USD)

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Securities Services

- Total Fee and Other Revenue

- Net Interest Income

- Total Revenue

Market and Wealth Services

Investment and Wealth Management

Other

- Net Interest Income (Expense)

- Fee Revenue

- Investment and Other Revenue

Total Revenue

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Domestic

International

- EMEA

- APAC

- Other International

- UK

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Bank of New York Mellon (BK)

Financials