Bank Of New York Mellon Q4 Profit Falls On Equity Loss, AuM Up 14%

(RTTNews) - Bank of New York Mellon Corp., or BNY Mellon (BK) Friday reported a decline in the fourth-quarter profit, reflecting a loss related to an equity investment. Adjusted earnings, however, matched analysts' estimates.

Assets under management or AUM climbed 14 percent from the prior year. Investment Management and Investment Services businesses fees increased 5 percent from the same quarter last year.

Gerald Hassell, chairman and chief executive officer of the company said, "2013 marked a year of strong growth in our core investment services and investment management fees, as we benefitted from improved market conditions and our focus on driving organic growth."

For the fourth quarter, net income applicable to common shareholders declined to $503 million or $0.44 per share from $613 million or $0.53 per share in the previous year.

The company said its recent-quarter results included an after-tax loss of $115 Million or $0.10 per share related to an equity investment.

Excluding item, adjusted earnings were $0.54 per share in the recent period. On average, 21 analysts polled by Thomson Reuters expected earnings per share of $0.54 for the quarter. Analysts' estimates typically exclude one-time items.

Assets under management or AUM totaled $1.58 trillion at December 31, 2013, an increase of 14 percent compared with the prior year and 3 percent sequentially.

Quarterly total revenue was $3.59 billion, down 1 percent from last year's $3.62 billion, and non-GAAP total revenue amounted to $3.75 billion, compared to $3.61 billion last year. Analysts estimated revenues of $3.72 billion for the quarter.

Total fee and other revenue declined to $2.80 billion from $2.85 billion a year earlier. Total investment services fees were $1.68 billion, up 5 percent year-over-year. Investment management and performance fees increased 6 percent to $904 million.

Provision for credit losses was $6 million in the fourth quarter of 2013, compared to a credit of $61 million in the same quarter last year.

The company also declared a quarterly common stock cash dividend of $0.15 per share, to shareholders of record on January 31, 2014, payable on February 7.

BK closed Thursday's regular trading at $33.92 on the NYSE.