The Bank of New York Mellon (BK) Reports Q1 Earnings: What Key Metrics Have to Say

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]