EFTA01782578.pdf

From: Richard Kahn Sent: Thursday, April 21, 2016 8:35 PM To: jeffrey E. Subject: Fwd: BNY Mellon: 1Q16 First Pass: Beat on Lower Expenses Richard Kahn HBRK Associates Inc. 575 Lexington =venue 4th Floor New York, NY 10022 Begin forwarded message: From: =/b>"Morgan Stanley" Subject: =/b>BNY Mellon: 1Q16 =irst Pass: Beat on Lower Expenses Date: =/b>April 21, 2016 at 8:43:41 AM =DT To: qb><[email protected]> Reply-To: =/b><[email protected]> Wealth management Subscription Notification: April 21 BNY =ellon: 1Q16 First Pass: Beat on Lower Expenses 1 EFTA_R1_00102494 EFTA01782578 Betsy L. Graseck, CFA — =organ Stanley April 21, 2016 12:42 PM =MT 1Q16 Earnings:3c beat (operating EPS of =0.73 vs. MSe $0.70 and cons $0.68) on lower expenses and slightly =igher fees.5c expense beat due to stronger dollar, staff reductions, =nd business improvement process cost saves. Investors will give more =redit to the latter 2 vs. strong dollar; clear that BK is focused on =anaging towards Investor Day targets in a tough top-line =nvironment.Nll is light on slightly lower NIM (0.99% vs. MSe 1.00%).Fee =ncome is better on higher clearing revs.Credit in-line with lower NCOs =ut higher reserve build ($12mn vs. MSe flat). Taxes lc worse.AUC/AUM up =n a challenged market, in-line with Northern Trust report on Tuesday. =nflows in LDI were partially offset by outflows in Equity, Index, and =ash.Expect stock trades up on strong expense management and client =sset growth in a tough operating environment.Positives:Fee income beat =y icon higher clearing revs.5c expense beat on stronger dollar and =ost save initiatives.Negatives:Nll 1c lower on slightly lower NIM =0.99% vs. MSe 1.00%).Taxes lc worse.Key Questions for the Call:Excess =eposit runoff and resultant SLR progress, NIM outlook, BlockChain =nitiatives, Massachusetts settlement from NAV malfunction, asset =anagement boutique expansion plans, plans to manage client AUM ahead of =ct MMF reform, opportunity to return additional capital through 1% de =inimis provision, NPR on Single-Counterparty Credit Limits.Call =etails:Today at Sam eastern. Dial-in: (888) 898-7224; Passcode: 619690. Click here=to see the full report. This alert is sent =rom: Andrew Atlas, [email protected] You received this because you asked =o be alerted to: THE BANK OF NEW YORK MELLON CORPORATION =br class=""> Please contact your FA if you want to unsubscribe from the =lerts. Disclosures: Please see the full report for risks, disclosures and =ther important information. Important disclosures regarding the relationship between the companies =hat are referenced in Morgan Stanley research and Morgan Stanley Wealth =anagement research are available on the Morgan Stanley Wealth =anagement disclosure website at https://www.morganstanley.com/online/researchdisclosures. Morgan Stanley Wealth Management Not Acting as Municipal =dvisor Morgan Stanley Wealth Management is not acting as a =unicipal advisor to any municipal entity or obligated person within the =eaning of Section 15B of the Securities Exchange Act (the "Municipal =dvisor Rule") and the opinions or views contained herein are not =ntended to be, and do not constitute, advice within the meaning of the =unicipal Advisor Rule. Copyright 2 EFTA_R1_00102495 EFTA01782579 The copyright in materials provided by Morgan Stanley is =wned by Morgan Stanley & Co. LLC. Morgan Stanley Wealth Management =s the trade name of Morgan Stanley Smith Barney LLC, a registered =roker-dealer in the United States. © 2016 Morgan Stanley Smith =arney LLC. Member SIPC. = 3 EFTA_R1_00102496 EFTA01782580