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Core Viewpoint - The Bank of New York Mellon Corp. has agreed to divest BNY Trust Company of Canada to Computershare, aligning with its strategy to expand in foreign markets while Computershare aims to enhance its corporate trust business in North America [1][2]. Company Summary - The divestiture is expected to be completed in the second quarter of 2024, pending customary and regulatory approvals, with financial terms undisclosed [1]. - BNY Trust Company of Canada, established in 2001, provides a variety of trust and agency services to clients in Canada, managing approximately 1,800 corporate trust mandates [1]. - All relevant staff will transition to Computershare, ensuring a smooth business and employee transition [2]. - BNY Mellon remains focused on strategic acquisitions and divestitures to penetrate overseas markets and improve profitability, having previously divested BNY Alcentra Group Holdings in 2022 and acquired Optimal Asset Management in 2021 [2]. Industry Context - Other financial services firms are also pursuing similar divestiture strategies, such as HSBC's sale of its Argentina business for $550 million to focus on Asian operations, incurring a $1 billion pre-tax loss [5]. - Goldman Sachs completed the sale of GreenSky, a home-improvement lending platform, as part of a major restructuring initiative, having acquired it for $1.7 billion in 2022 [6].

The Bank of New York Mellon Corporation’s (BK) first-quarter 2024 adjusted earnings of $1.29 per share handily outpaced the Zacks Consensus Estimate of $1.19. Also, the figure reflected a rise of 14% from the prior-year quarter.Further, BK’s total revenues grew 3% year over year to $4.53 billion. The top line also beat the Zacks Consensus Estimate of $4.38 billion.The primary driver for the increase in top line was an improvement in fee income and assets under custody and/or administration (AUC/A) and asset ...

Financial Data and Key Metrics Changes - BNY Mellon reported earnings per share (EPS) of $1.25, an 11% increase year-over-year, and $1.29 excluding notable items, up 14% [8][21] - Total revenue reached $4.5 billion, a 3% increase year-over-year, with investment services fees growing by 8% [8][19] - Expenses were $3.2 billion, up 2% year-over-year, with a pre-tax margin of 29% and a return on tangible common equity (ROTCE) of 21% [9][21] Business Line Data and Key Metrics Changes - Security Services reported total revenue of $2.1 billion, up 1% year-over-year, with investment services fees increasing by 8% [25] - Market and Wealth Services generated $1.5 billion in revenue, a 3% increase year-over-year, with investment services fees up 7% [28] - Investment and Wealth Management reported total revenue of $846 million, up 2% year-over-year, with assets under management increasing by 6% [30][31] Market Data and Key Metrics Changes - Firm-wide assets under custody and administration were $48.8 trillion, up 5% year-over-year, while assets under management reached $2 trillion, up 6% [19] - Foreign exchange revenue declined by 14% due to lower market volatility [19][27] - Net interest income decreased by 8% year-over-year, primarily due to changes in deposit composition [20][23] Company Strategy and Development Direction - The company is focused on three strategic pillars: enhancing client services, improving operational efficiency, and fostering a strong corporate culture [10][18] - BNY Mellon is investing in AI technologies to enhance processing capacity and improve client solutions [16][57] - The firm aims to deliver integrated solutions across its business lines, exemplified by recent partnerships and product innovations [12][67] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, citing growth in equity and credit markets despite geopolitical risks [6][7] - The transformation of the company is viewed as a multi-year endeavor, with early signs of progress noted in Q1 2024 [18][34] - The company expects to return 100% or more of 2024 earnings to shareholders through dividends and buybacks [35] Other Important Information - The company has authorized a new $6 billion share repurchase program [10] - The adoption of new accounting guidance for renewable energy investments resulted in a $50 million increase in investment and other revenue [19][20] Q&A Session Summary Question: What are the firm's organic growth rate aspirations for the next couple of years? - Management is focused on generating positive operating leverage and driving growth through various investments, with a positive start to the year noted [38] Question: Can you help size what is transitory versus recurrent in Clearance and Collateral Management? - Management indicated that the recent activity in Clearance and Collateral Management is largely sustainable, driven by strong trading volumes in the US Treasury market [41][42] Question: What are the drivers of RWA growth in Q1? - RWA growth was attributed to temporary increases related to overdrafts and strong demand for agency securities lending [46] Question: How should we think about the cadence of buybacks? - Management reiterated the commitment to return 100% or more of earnings, but cautioned that the pace may vary based on market conditions [47] Question: How is AI expected to impact the expense ratio? - Management believes the significant benefits from AI will materialize beyond 2024, focusing on streamlining processes and enhancing productivity [53][57]

Key TakeawaysThe Bank of New York Mellon reported earnings and revenue that exceeded forecasts on higher investment services fees.The oldest U.S. bank's total fees and other revenue jumped 6% in the first quarter from a year ago.BNY Mellon announced an additional $6 billion stock buyback program. The Bank of New York Mellon (BK) posted better-than-expected results as the oldest U.S. bank reported higher investment services fees. It also boosted its stock buyback program. The bank founded by Alexander Hamilt ...

Core Viewpoint - The Bank of New York Mellon Corporation reported a revenue increase of 3.8% year-over-year for Q1 2024, with earnings per share (EPS) also showing a positive trend, indicating strong financial performance compared to market expectations [1] Financial Performance Summary - Revenue for the quarter was $4.53 billion, exceeding the Zacks Consensus Estimate of $4.4 billion by 2.91% [1] - EPS was reported at $1.29, surpassing the consensus estimate of $1.19 by 8.40% [1] - Average balance of total interest-earning assets was $346.13 billion, slightly above the estimated $342.26 billion [2] - Net Interest Margin (FTE Basis) remained stable at 1.2%, matching analyst expectations [2] - Tier 1 Leverage Ratio was reported at 5.9%, below the estimated 6% [2] - Tier 1 Capital Ratio (Standardized Approach) was 13.4%, lower than the 14% average estimate [2] Revenue Breakdown - Market and Wealth Services total revenue was $1.52 billion, exceeding the estimate of $1.46 billion, with a year-over-year increase of 3.4% [2] - Securities Services total fee and other revenue reached $1.56 billion, above the $1.51 billion estimate, reflecting a 7.3% year-over-year increase [2] - Securities Services net interest revenue was $583 million, below the estimated $614.06 million, showing a decline of 12.5% year-over-year [2] - Total revenue for Securities Services was $2.14 billion, slightly above the estimate of $2.13 billion, with a year-over-year change of 1.1% [2] - Investment and Wealth Management total revenue was $846 million, exceeding the estimate of $819.01 million, representing a 2.3% year-over-year increase [2] - Market and Wealth Services total fee and other revenue was $1.09 billion, above the estimated $1.04 billion, with a year-over-year increase of 7.9% [2] - Investment and Wealth Management net interest revenue was $41 million, below the estimate of $44.10 million, reflecting an 8.9% year-over-year decline [2] - Investment and Wealth Management total fee and other revenue was $805 million, exceeding the estimate of $745.80 million, with a year-over-year increase of 2.9% [2] Stock Performance - The Bank of New York Mellon shares have returned +0.3% over the past month, outperforming the Zacks S&P 500 composite, which declined by -0.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

The Bank of New York Mellon Corporation’s (BK) first-quarter 2024 adjusted earnings of $1.29 per share surpassed the Zacks Consensus Estimate of $1.19. Also, the bottom line reflects a rise of 14% from the prior-year quarter.Shares of BK have gained more than 1% pre-market trading on better-than-expected results.Results have been primarily aided by a rise in fee revenues, particularly investment services fees. The assets under custody and/or administration (AUC/A) and assets under management (AUM) balance g ...

The Bank of New York Mellon Corporation (BK) came out with quarterly earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.19 per share. This compares to earnings of $1.13 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 8.40%. A quarter ago, it was expected that this company would post earnings of $1.12 per share when it actually produced earnings of $1.28, delivering a surprise of 14.29%. Over the last four ...

NEW YORK, April 16, 2024 /PRNewswire/ -- BNY Mellon (NYSE: BK) has reported financial results for the first quarter 2024. The company's earnings release along with the quarterly financial highlights and other earnings-related documents are available at www.bnymellon.com/investorrelations. Management will host a conference call and simultaneous live audio webcast at 11:00 a.m. ET today. This conference call and audio webcast will include forward-looking statements and may include other material information. ...

The Bank of New York Mellon Corporation Financial Supplement First Quarter 2024 Table of Contents Consolidated Results Page Consolidated Financial Highlights 3 Condensed Consolidated Income Statement 4 Condensed Consolidated Balance Sheet 5 Fee and Other Revenue 6 Average Balances and Interest Rates 7 Capital and Liquidity 8 Business Segment Results Securities Services Business Segment 9 Market and Wealth Services Business Segment 11 Investment and Wealth Management Business Segment 13 AUM by Product Type, ...