The Bank Of New York Mellon Corporation BK posted better-than-expected third-quarter results on Friday.The finance behemoth reported third-quarter adjusted earnings per share of $1.52 (+20% YoY), beating the street view of $1.42. Quarterly revenue of $4.648 billion, an increase of 5% year-over-year, surpassed the analyst consensus of $4.542 billion."BNY reported strong third quarter results, reflecting growth across our three business segments and consistent execution against our strategic priorities, with ...

Financial Data and Key Metrics Changes - BNY reported earnings per share of $1.50, up 22% year-over-year, and $1.52 excluding notable items, up 20% [8][18] - Total revenue of $4.6 billion increased by 5% year-over-year, with reported expenses flat at $3.1 billion [8][18] - Pre-tax margin improved to 33%, and return on tangible common equity rose to 23% [8][18] Business Line Data and Key Metrics Changes - Security Services revenue was $2.2 billion, up 6% year-over-year, with investment services fees up 4% [20][21] - Market and Wealth Services reported revenue of $1.5 billion, up 7% year-over-year, with investment services fees also up 7% [23] - Investment and Wealth Management revenue was $849 million, up 2% year-over-year, with assets under management increasing by 18% to $2.1 trillion [27][28] Market Data and Key Metrics Changes - Firm-wide assets under custody and/or administration reached $52.1 trillion, up 14% year-over-year [16][18] - Foreign exchange revenue increased by 14%, driven by higher volumes [17] - Net interest income rose by 3% year-over-year, reflecting improved yields and balance sheet growth [19] Company Strategy and Development Direction - The company is focused on enhancing its client coverage model and operational efficiency through a platform operating model [12][14] - BNY announced the acquisition of Archer, aimed at expanding its managed account solutions and enhancing asset servicing capabilities [10][68] - The company is leveraging its position in the growing alternatives market and has introduced Alts Bridge to facilitate investments in alternatives [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged risks and uncertainties in the macroeconomic environment, including geopolitical tensions and regulatory impacts [7] - The company remains optimistic about its growth trajectory, expecting to return 100% or more of 2024 earnings to shareholders through dividends and buybacks [30][71] - Management emphasized the importance of a multi-faceted strategy to capitalize on market growth and client needs [42][44] Other Important Information - The company reported a consolidated liquidity coverage ratio of 116% and a net stable funding ratio of 132% [19] - BNY's liquidity ecosystem reached an all-time high of over $1.5 trillion [20][64] Q&A Session Summary Question: ETF wins and revenue dynamics - Management noted that the strong ETF growth is part of a broader market trend and revenue from new clients is ramping up gradually [34][36] Question: Deposit beta and growth expectations - Management indicated that the first rate cut was fully passed on, and it is too early to predict deposit growth trends [38] Question: Client growth and revenue generation - Management highlighted that growth is driven by a combination of market conditions and deliberate strategies to enhance client relationships [40][42] Question: Revenue sensitivity to market changes - Management confirmed that a 5% change in equity or fixed income markets would impact revenue by approximately $60 million and $40 million respectively [52][72] Question: Future acquisition outlook - Management expressed a focus on improving existing businesses while remaining open to opportunistic acquisitions that align with strategic goals [69][70]

| --- | --- | |-------|-------| | | | | | | | | | | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------| | | | | | | | 3Q24 Financial Highlights | | | | | | Revenue Growth: | 5 % | | Expense Growth: | 0 % | | Pre-tax Margin: | 33 % | | ...

The Bank of New York Mellon Corporation (BK) reported $4.65 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 6.3%. EPS of $1.52 for the same period compares to $1.27 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $4.52 billion, representing a surprise of +2.76%. The company delivered an EPS surprise of +7.80%, with the consensus EPS estimate being $1.41.While investors scrutinize revenue and earnings changes year-over-year and ho ...

The Bank of New York Mellon Corporation (BK) came out with quarterly earnings of $1.52 per share, beating the Zacks Consensus Estimate of $1.41 per share. This compares to earnings of $1.27 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 7.80%. A quarter ago, it was expected that this company would post earnings of $1.43 per share when it actually produced earnings of $1.51, delivering a surprise of 5.59%. Over the last four ...

[Consolidated Results](index=3&type=section&id=Consolidated%20Results) [Consolidated Financial Highlights](index=3&type=section&id=Consolidated%20Financial%20Highlights) Q3 2024 saw The Bank of New York Mellon Corporation's net income rise 14% to $1.2 billion, diluted EPS grow 22% to $1.50, and total revenue increase 5% to $4.6 billion, with significant AUC/A and AUM growth Q3 2024 Key Financial Metrics (Amounts in Millions, AUC/A and AUM in Trillions) | Metric | Q3 2024 | Q2 2024 | Q3 2023 | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $4,648 | $4,597 | $4,420 | 5% | 1% | | Net Income | $1,189 | $1,170 | $1,043 | 14% | 2% | | Diluted EPS | $1.50 | $1.52 | $1.23 | 22% | (1)% | | AUC/A | $52.1 | $49.5 | $45.7 | 14% | 5% | | AUM | $2.14 | $2.05 | $1.82 | 18% | 5% | | CET1 Ratio | 11.9% | 11.4% | 11.3% | +60 bps | +50 bps | [Condensed Consolidated Income Statement](index=4&type=section&id=Condensed%20Consolidated%20Income%20Statement) Q3 2024 total revenue increased 5% to $4.65 billion, driven by a 6% rise in fee and other revenue, resulting in a 14% increase in net income to $1.19 billion Q3 2024 Income Statement Highlights (in millions) | Item | Q3 2024 | Q3 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Total Fee Revenue | $3,404 | $3,245 | 5% | | Investment and Other Revenue | $196 | $159 | 23% | | **Total Fee and Other Revenue** | **$3,600** | **$3,404** | **6%** | | Net Interest Income | $1,048 | $1,016 | 3% | | **Total Revenue** | **$4,648** | **$4,420** | **5%** | | Total Noninterest Expense | $3,100 | $3,089 | — | | **Net Income** | **$1,189** | **$1,043** | **14%** | [Condensed Consolidated Balance Sheet](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) As of September 30, 2024, total assets were $427.5 billion, up 5.5% YoY, with total deposits at $296.4 billion and shareholders' equity increasing to $42.0 billion Balance Sheet Highlights (in millions) | Item | Sept 30, 2024 | June 30, 2024 | Sept 30, 2023 | | :--- | :--- | :--- | :--- | | **Total Assets** | **$427,461** | **$428,539** | **$405,052** | | Net Loans | $69,155 | $70,356 | $66,079 | | **Total Liabilities** | **$385,071** | **$387,418** | **$364,029** | | Deposits | $296,438 | $304,311 | $277,467 | | **Total Shareholders' Equity** | **$41,992** | **$40,843** | **$40,858** | [Fee and Other Revenue](index=6&type=section&id=Fee%20and%20Other%20Revenue) Q3 2024 total fee and other revenue increased 6% to $3.6 billion, driven by a 5% rise in investment services fees and 14% growth in foreign exchange revenue Fee and Other Revenue Breakdown (in millions) | Revenue Category | Q3 2024 | Q3 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Investment Services Fees | $2,344 | $2,230 | 5% | | Investment Management & Performance Fees | $794 | $777 | 2% | | Foreign Exchange Revenue | $175 | $154 | 14% | | **Total Fee Revenue** | **$3,404** | **$3,245** | **5%** | | Investment and Other Revenue | $196 | $159 | 23% | | **Total Fee and Other Revenue** | **$3,600** | **$3,404** | **6%** | [Average Balances and Interest Rates](index=7&type=section&id=Average%20Balances%20and%20Interest%20Rates) In Q3 2024, average interest-earning assets increased to $356.9 billion, while net interest margin slightly decreased to 1.16% from 1.18% YoY Q3 2024 Average Balances and Net Interest Margin (in millions) | Metric | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | Average Interest-Earning Assets | $356,934 | $353,633 | $339,044 | | Average Interest-Bearing Liabilities | $302,935 | $300,155 | $280,335 | | Net Interest Margin | 1.16% | 1.15% | 1.18% | [Capital and Liquidity](index=8&type=section&id=Capital%20and%20Liquidity) As of September 30, 2024, the company maintained strong capital with a CET1 ratio of 11.9% and a healthy average Liquidity Coverage Ratio of 116% Key Capital and Liquidity Ratios (Period End) | Ratio | Sept 30, 2024 | June 30, 2024 | Sept 30, 2023 | | :--- | :--- | :--- | :--- | | CET1 Ratio (Standardized) | 11.9% | 11.4% | 11.9% | | Tier 1 Capital Ratio (Standardized) | 14.5% | 14.0% | 15.0% | | Total Capital Ratio (Standardized) | 15.6% | 15.0% | 16.0% | | Tier 1 Leverage Ratio | 6.0% | 5.8% | 6.1% | | Supplementary Leverage Ratio (SLR) | 7.0% | 6.8% | 7.2% | | Average Liquidity Coverage Ratio (LCR) | 116% | 115% | 121% | [Business Segment Results](index=9&type=section&id=Business%20Segment%20Results) [Securities Services Business Segment](index=9&type=section&id=Securities%20Services%20Business%20Segment) The Securities Services segment reported Q3 2024 total revenue of $2.21 billion, up 6% YoY, with income before taxes surging 38% to $642 million and AUC/A growing 16% to $37.5 trillion Securities Services Financial Performance (in millions) | Item | Q3 2024 | Q3 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | $2,214 | $2,081 | 6% | | Total Noninterest Expense | $1,557 | $1,598 | (3)% | | Income Before Income Taxes | $642 | $464 | 38% | - Asset Servicing revenue grew **9% YoY** to **$1.72 billion**, while Issuer Services revenue remained flat at **$494 million**[10](index=10&type=chunk) - Assets under custody and/or administration (AUC/A) at period end increased to **$37.5 trillion**, up **16%** from **$32.3 trillion** in Q3 2023[11](index=11&type=chunk) [Market and Wealth Services Business Segment](index=11&type=section&id=Market%20and%20Wealth%20Services%20Business%20Segment) The Market and Wealth Services segment generated $1.55 billion in Q3 2024 revenue, up 7% YoY, with income before taxes rising 8% to $704 million and AUC/A increasing 9% to $14.3 trillion Market and Wealth Services Financial Performance (in millions) | Item | Q3 2024 | Q3 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | $1,545 | $1,450 | 7% | | Total Noninterest Expense | $834 | $792 | 5% | | Income Before Income Taxes | $704 | $652 | 8% | - Revenue growth was driven by Clearance and Collateral Management (**+19% YoY**), Treasury Services (**+7% YoY**), while Pershing revenue decreased slightly (**-1% YoY**)[13](index=13&type=chunk) - Average tri-party collateral management balances were **$5.51 trillion**, a **3% decrease** from Q3 2023[16](index=16&type=chunk) [Investment and Wealth Management Business Segment](index=13&type=section&id=Investment%20and%20Wealth%20Management%20Business%20Segment) The Investment and Wealth Management segment's Q3 2024 revenue grew 2% YoY to $849 million, with income before taxes up 7% to $176 million, despite a 26% decrease in average deposits Investment and Wealth Management Financial Performance (in millions) | Item | Q3 2024 | Q3 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | $849 | $830 | 2% | | Total Noninterest Expense | $672 | $675 | — | | Income Before Income Taxes | $176 | $164 | 7% | - Investment Management revenue was up **1% YoY** to **$569 million**, and Wealth Management revenue grew **6% YoY** to **$280 million**[18](index=18&type=chunk) - Average deposits decreased **26% YoY** to **$10.0 billion**, while average loans remained stable at **$13.6 billion**[18](index=18&type=chunk) [AUM and Wealth Management Client Assets](index=14&type=section&id=AUM%20by%20Product%20Type%2C%20Changes%20in%20AUM%20and%20Wealth%20Management%20Client%20Assets) [AUM by Product Type, Changes in AUM and Wealth Management Client Assets](index=14&type=section&id=AUM%20by%20Product%20Type%2C%20Changes%20in%20AUM%20and%20Wealth%20Management%20Client%20Assets) Total Assets Under Management (AUM) reached $2.14 trillion in Q3 2024, an 18% YoY increase driven by broad product growth, with Wealth Management client assets also growing 14% to $333 billion AUM by Product Type (in billions) | Product Type | Q3 2024 | Q3 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Equity | $173 | $133 | 30% | | Fixed income | $235 | $190 | 24% | | Index | $498 | $425 | 17% | | Liability-driven investments | $637 | $534 | 19% | | Cash | $426 | $383 | 11% | | **Total AUM** | **$2,144** | **$1,821** | **18%** | Q3 2024 Changes in AUM (in billions) | Item | Amount | | :--- | :--- | | Beginning balance of AUM | $2,045 | | Total net (outflows) inflows | $0 | | Net market impact | $58 | | Net currency impact | $41 | | **Ending balance of AUM** | **$2,144** | [Other Segment](index=15&type=section&id=Other%20Segment) [Other Segment](index=15&type=section&id=Other%20Segment) The Other segment reported a Q3 2024 pre-tax loss of $4 million, a significant decline from $45 million pre-tax income in Q3 2023, due to lower revenue and higher expenses Other Segment Financials (in millions) | Item | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Total Revenue | $33 | $56 | | Noninterest Expense | $37 | $24 | | **(Loss) Income Before Income Taxes** | **($4)** | **$45** | [Other Financial Information](index=16&type=section&id=Other%20Financial%20Information) [Securities Portfolio](index=16&type=section&id=Securities%20Portfolio) As of September 30, 2024, the securities portfolio had a fair value of $139.4 billion, maintaining high credit quality with 98% rated AAA/AA, despite a net unrealized loss of $4.7 billion Securities Portfolio Composition (Fair Value, in millions) | Security Type | Sept 30, 2024 | | :--- | :--- | | Agency RMBS | $42,779 | | U.S. Treasury | $29,653 | | Non-U.S. government | $29,337 | | Agency commercial MBS | $10,810 | | Other | $26,781 | | **Total Securities** | **$139,360** | - The portfolio maintains high credit quality, with **98% of assets rated AAA/AA**[23](index=23&type=chunk) [Allowance for Credit Losses and Nonperforming Assets](index=17&type=section&id=Allowance%20for%20Credit%20Losses%20and%20Nonperforming%20Assets) At Q3 2024, the allowance for credit losses increased to $401 million with a $23 million provision, while nonperforming assets decreased to $211 million Credit Loss and Nonperforming Asset Data (in millions) | Item | Sept 30, 2024 | June 30, 2024 | Sept 30, 2023 | | :--- | :--- | :--- | :--- | | Allowance for Credit Losses | $401 | $396 | $325 | | Provision for Credit Losses (for the quarter) | $23 | $0 | $3 | | Nonperforming Assets | $211 | $227 | $48 | - The allowance for loan losses as a percentage of total loans was **0.43%** at the end of Q3 2024[25](index=25&type=chunk) [Supplemental Information](index=18&type=section&id=Supplemental%20Information) [Explanation of GAAP and Non-GAAP Financial Measures](index=18&type=section&id=Explanation%20of%20GAAP%20and%20Non-GAAP%20Financial%20Measures) This section defines and reconciles Non-GAAP financial measures, such as return on tangible common equity and tangible book value per common share, used to supplement GAAP information and enhance comparability for investors - The company uses Non-GAAP measures such as return on tangible common equity and tangible book value per common share to present a measure of assets that can generate income, excluding goodwill and intangible assets[26](index=26&type=chunk) Reconciliation of Tangible Book Value per Common Share | Item (in millions, except per share) | Sept 30, 2024 | | :--- | :--- | | BNY Common Shareholders' Equity (GAAP) | $37,649 | | Less: Goodwill & Intangible Assets | ($19,162) | | Add: Deferred Tax Liabilities | $1,876 | | **BNY Tangible Common Shareholders' Equity (Non-GAAP)** | **$20,363** | | Period-end Common Shares Outstanding (thousands) | 727,078 | | **Book Value per Common Share (GAAP)** | **$51.78** | | **Tangible Book Value per Common Share (Non-GAAP)** | **$28.01** |

Shares of Bank of New York Mellon (NYSE: BK ) have been a tremendous performer over the past year, gaining 75%. The company has benefited from a persistently high-rate environment (which may now change), strong equity markets, and very impressive expense discipline. Given such aOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a ...

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The upcoming report from The Bank of New York Mellon Corporation (BK) is expected to reveal quarterly earnings of $1.40 per share, indicating an increase of 10.2% compared to the year-ago period. Analysts forecast revenues of $4.52 billion, representing an increase of 3.3% year over year.The consensus EPS estimate for the quarter has undergone an upward revision of 0.8% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial ...

The market expects The Bank of New York Mellon Corporation (BK) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on October 11, 2024, might help the stock move h ...