BNY Mellon Q2 Results Top Estimates

(RTTNews) - Bank of New York Mellon Corp. or BNY Mellon (BK) Tuesday said its second-quarter profit increased from the previous year, supported by higher revenues. Both earnings and revenues topped Wall Street estimates.

For the custody bank, net income applicable to common shareholders climbed to $830 million, or $0.73 per common share from $554 million, or $0.48 per common share in the previous year.

Adjusted for litigation and restructuring charges, latest earnings were $868 million, or $0.77 per common share. In the prior year, adjusted earnings totaled $715 million, or $0.62 per common share, when charges related to investment management funds and severance were excluded.

On average, 18 analysts polled by Thomson Reuters expected earnings of $0.66 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue grew 4 percent to $3.9 billion from last year's $3.75 billion. Adjusted revenue totaled $3.85 billion, while it was $3.73 billion last year. Analysts expected revenues of $3.82 billion.

Investment services fees grew 4 percent, reflecting organic growth, primarily in Global Collateral Services and Asset Servicing, higher clearing services revenue, net new business and higher market values.

Investment management and performance fees slid 1 percent, or increased 5 percent in constant currency, driven by higher equity market values, the impact of the acquisition of Cutwater Asset Management and strategic initiatives.

Foreign exchange revenue increased 40 percent, driven by higher volumes and volatility, as well as higher Depositary Receipts-related activity.

The company recorded a provision for credit losses of a credit of $6 million, compared to a credit of $12 million last year.

Assets under custody and/or administration or AUC/A were $28.6 trillion, up slightly reflecting higher market values and organic growth.

Assets Under Management or AUM grew 5 percent to $1.72 trillion, driven by higher market values, net new business and the Cutwater acquisition, partially offset by the unfavorable impact of a stronger U.S. dollar.

Gerald Hassell, chairman and CEO of BNY Mellon, said, "We are growing our earnings, investing in next-generation operating platforms and risk management controls, attracting new clients and driving the long-term value of our firm for the benefit of our clients and shareholders."

BK rose 0.4 percent on Monday to close at $42.98.