EFTA02376144.pdf

From: Richard Kahn O. Sent: Thursday, April 20, 2017 12:04 PM To: Jeffrey Epstein Subject: Fwd: BNY Mellon: 1417 First Pass: Tax Beat with Disappointing Expenses Richard Kahn HBRK Associates Inc. 575 =exington Avenue, 4th Floor New =ork, NY 10022 Begin forwarded message: From: =/b>"Morgan Stanley" Subject: qb>BNY Mellon: 1Q17 =irst Pass: Tax Beat with Disappointing Expenses Date: =/b>April 20, 2017 at 8:01:08 AM =DT To: =A Reply-To: =/b l <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> Wealth =anagement <http://www.morganstanley.com/> <http://www.morganstanley.com/img/cs/spacer.gif> BNY Mellon: 1Q17 =irst Pass: Tax Beat with Disappointing =xpenses <http://www.morganstanley.com/img/cs/spacer.gif> EFTA_R1_01385224 EFTA02376144 Betsy L. Graseck, =FA — Morgan Stanley April =0, 2017 11:59 AM GMT Beat on Revenues and Taxes, =artially Offset by Expense Miss BK reported operating EPS of $0.82, =eat consensus' and our estimates of $0.80 on higher fees (4c), lower =axes (2c), lower provision (lc), partially offset by higher expenses =4c) and lower NIl (1c). Expense miss disappointing as BK had been an =xpense-save story. Expenses up <1% y/y and gig v. our estimates of =% down q/q and y/y. Management has attributed such increase to =egulatory and compliance costs. We look to the call for more color. =xpense ratio stood at 69.0%, 80bps lower than our estimate of 68.2%; =till an improvement from prior quarters: 47bps improvement q/q, and =30bps improvement y/y. NIM in line with our estimate at 1.13%, up 3bps =/q on an adjusted basis (4Q16 had a few one-offs). Earning assets =hrank faster than we expected at -2% q/q (v. MSe of flat q/q).Higher =ees primarily driven by clearing services fees (2c beat), asset =anagement fees (lc beat) and others (2c), partially offset by FX =rading (lc miss)Tax rate lower at 23.4% v. MSe of 25.0%, primarily =riven by new accounting guidance (ASU 2016-09) on stock awards.Volume: =ixed with AUC miss and AUM beat: AUC up 2.3% q/q (MSe +3.0%) and up =.2% y/y (MSe +5.8%) AUM up 4.8% gig (MSe +3.5%) and up 5.4% y/y (MSe =4.1%)Key Questions for the Call:Expense miss, fee pressure, NEXEN =onetization, asset management boutique model, NIM outlook, excess =eposit runoff, duration extension opportunities, implications of tax =epatriationCall Details:Today at Sam eastern. (800) 390-5696; Passcode: =45371 This alert is sent from: Andrew Atlas, You received this because you requested =hat you receive content and reports from: THE BANK OF =EW YORK MELLON CORPORATION Please =ontact your FA if you want to unsubscribe from the alerts. <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> Disclosures: Please see =he full report for risks, disclosures and other important =nformation. Important disclosures regarding the =elationship between the companies that are referenced in Morgan Stanley =esearch and Morgan Stanley Wealth Management research are available on =he Morgan Stanley Wealth Management 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 municipal =dvisor to any municipal entity or obligated person within the meaning =f Section 158 of the Securities Exchange Act (the "Municipal Advisor =ule") and the opinions or views contained herein are not intended to =e, and do not constitute, advice within the meaning of the Municipal =dvisor Rule. Copyright The =opyright in materials provided by Morgan Stanley is owned by Morgan =tanley & Co. LLC. Morgan Stanley Wealth Management is the trade =ame of Morgan Stanley Smith Barney LLC, a registered broker-dealer in =he United States. 2 EFTA_R1_01385225 EFTA02376145 © 2017 Morgan Stanley Smith Barney LLC. Member =IPC. <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> <http://www.morganstanley.com/img/cs/spacergif> <http://www.morganstanley.com/imgjcs/spacer.gif> <http://www.morganstanley.com/img/cs/spacer.gif> 3 EFTA_R1_01385226 EFTA02376146