The Bank of New York Mellon Corporation (BNY Mellon) has recently released its revised financial supplement, detailing the impact of adopting new accounting guidance and certain business realignments. The report provides a comprehensive overview of the company's performance over the last five quarters leading up to 4Q23, as well as the full years of 2023 and 2022.
One significant change highlighted in the report is the adoption of accounting standards update ("ASU") 2023-02 on January 1, 2024. This update has led to the retrospective application of new accounting guidance for BNY Mellon's investments in renewable energy projects that meet specific eligibility criteria. As a result, there has been an increase in investment and other revenue, alongside a corresponding impact on the provision for income taxes in the consolidated income statement.
In addition to the accounting guidance adoption, BNY Mellon underwent certain business realignments in the first quarter of 2024. These realignments involved the movement of institutional solutions from Pershing to clearance and collateral management within the Market and Wealth Services business segment. Other adjustments included the transfer of activity from asset servicing in the Securities Services business segment to treasury services in the Market and Wealth Services business segment, as well as movements from wealth management and Pershing to investment management within the Investment and Wealth Management business segment.
Furthermore, the revised financial supplement also reflects a subsequent event mentioned in the annual report for the year ended December 31, 2023. This event encompasses an additional $127 million pre-tax ($97 million after-tax) increase in noninterest expense related to a revised estimate of the FDIC special assessment for the fourth quarter and full year ended December 31, 2023, due to new information published by the FDIC in February 2024.
The report provides a detailed breakdown of the impact of these changes on BNY Mellon's consolidated results, including the condensed consolidated income statement, balance sheet, fee and other revenue, average balances and interest rates, as well as capital and liquidity. Additionally, the business segment results for Securities Services, Market and Wealth Services, and Investment and Wealth Management are outlined, shedding light on the implications of the realignments within these segments.
Check out the company's full 8-K submission here.
