EFTA02384911.pdf

From: Richard Kahn Sent: Thursday, July 21, 2016 12:12 PM To: Jeffrey Epstein Subject: Fwd: BNY Mellon: 2416 First Pass: In Line as Gross Margins Offset Expense Beat Sent from my iPhone =br>Begin forwarded message: =rom: "Morgan Stanley Date: Jul 21, 2016 at 8:04:13 A= EDT To: Subject: BNY Mellon: 2416 First Pass: In=Line as Gross Margins Offset Expense Beat Reply-To: <mswmir-cie-feedback@morg=nstanley.com> <http://www.morganstanley.com/img/cs/=pacer.gif> chttp://www.morganstanley.com/img/cs/=pacer.gif> <http://www.morganstanley.com/img/cs/=pacer.gif> <http://www.morganstanley.com/img/cs/=pacer.gif> <http://www.morganstanley.com/img/cs/=pacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/=pacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www=morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/i=g/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.g=f> Wealth management <http://www.morganstanley.com/img/cs/spacer.g=f> <http://www.morganstanley.com/img/cs/spacer.g=f> <http://www.morganstanley.com/i=g/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.g=f> Subscription N=tification: July 21 <http://www.morganstanley.com/i=g/cs/spacer.gif> <http://www=morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.g=f> BNY Mellon: 2Q16 First Pass: In Line as Gross Margins Offset Expense Bea= <http://linkback.morganstanley.com/web=sendlink/webapp/f/7ctqq780-3pif-g000-9a31- 005056028300?store=l&d=Uw=SZKNIYYJjaF9NUwBkYjIkNDE3OC00ZDQyLTExZTYtODI4Zi03YTRmNAMzEzMmQ%3D&use ==iwbt68jbgq60t3-0&_gda_=1532261053_e1045fbld18a68f90cf7bc7ecbSb48=f> Betsy L. Graseck, CFA — Morgan Stanley4=2> July 21, 2016 12:02 PM GMT EFTA_R1_01402840 EFTA02384911 2Q16 Earnings:BK reported operating EPS of $0.76=(vs. MSe/cons $0.75) on better expenses ($2.61bn vs. MSe $2.63bn) and bette= credit (provision of -$9mn vs. MSe +$8mn).Top-line 3c weaker on lower NIM (=.97% vs. MSe 1.02%) and weaker than expected FX revs (BK calling out lower v=lumes).AUC/AUM beat estimates, with inflows into LDI and market appreciatio= offsetting outflows in index.Estimates likely unchanged given expense disc=pline is offsetting challenged top-line. Mgmt commentary on back half of 20=6 trajectory, and any lumpy items on the expense front for 'Living Will' an= other reg initiatives, will be closely watched.Positives:Expenses lc bette= as BK reduced staff expenses in the quarter.Provision lc better at -$9mn (=s. MSe +$8mn), similar to NTRS yesterday. Don't expect investors to give mu=h credit here, given the relatively volatile nature of the provision line a= trust banks.Taxes is better.Negatives:Nll lc worse as NIM came in weaker t=an expected (0.97% vs. MSe 1.02%).Fee income 2c worse on weaker FX revs and=other fee income.Key Questions for the Call:Excess deposit runoff and resul=ant SLR progress, NIM outlook, BlockChain initiatives, asset management bou=ique expansion plans, plans to manage client AUM ahead of Oct MMF reform, p=an/timing for additional pref issuance (BK included pref for common swap in=its 2016 capital plan).Call Details:Today at 8am eastern. Dial-in: (888) 89=-7224; Passcode: 619690. Click here</=> to see the full report. <http://linkback.morganstanley.com/web/sendlink/=ebapp/f/7ctqq780-3pif-g000- 9a31- 005056028300?store=l&d=UwBSZXNIYM=F9NUwBkYjIkNDE3OC00ZDQyLTExZTYtODI4Zi03YTRmNjljMzEzMmQ%3D&us er=iwbt68=bgq60t3-0&_gda =1532261053_e1045fbld18a68f90cf7bc7ecbSb48df> This alert is sent from: Andrew Atlas, =20 You received this because you asked to be=alerted to: THE BANK OF NEW YORK MELLON CORPORATION Please contact your FA if you want to unsubscribe from the alert=. Disclosures: Please see the full report for risks, disclosures and oth=r important information. Important disclosures regarding the relationship between the companies that a=e referenced in Morgan Stanley research and Morgan Stanley Wealth Managemen= research are available on the Morgan Stanley Wealth Management disclosure w=bsite at https://www.morganstanley.com/online/researchdisclosures <https://www.morganstanley.com/online/researchdisclosure=> . Morgan Stanley Wealth Management Not Acting as Municipal Advisor Morgan Stanley Wealth Management is not acting as a municipal advisor t= any municipal entity or obligated person within the meaning of Section 15B=of the Securities Exchange Act (the "Municipal Advisor Rule") and the opini=ns or views contained herein are not intended to be, and do not constitute,=advice within the meaning of the Municipal Advisor Rule. Copyright The copyright in materials provided by Morgan Stanley is owned by Morga= Stanley & Co. LLC. Morgan Stanley Wealth Management is the trade name o= Morgan Stanley Smith Barney LLC, a registered broker-dealer in the United S=ates. 2 EFTA_R1_01402841 EFTA02384912 © 2016 Morgan Stanley Smith Barney LIX. 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