BNY Mellon Reports 11% Increase in EPS

BNY Mellon Corporation ("BNY Mellon") (NYSE: BK) has reported its financial results for the first quarter of 2024, showing promising growth and positive momentum. The key financial information from the press release is as follows:

  • Earnings per common share stood at $1.25, or $1.29 as adjusted, marking an increase of 11% from the previous period.
  • Total fee revenue increased by 3% year-over-year, reaching $3.3 billion.
  • Total revenue saw a 3% increase year-over-year, reaching $4.5 billion.
  • Net income applicable to common shareholders soared by 488% to $953 million.
  • The pre-tax operating margin was reported at 29%, or 30% as adjusted.
  • Return on equity (ROE) was 10.7%, or 21.3% as adjusted.
  • Assets under custody and/or administration (AUC/A) stood at $48.8 trillion, marking a 2% increase from the previous period.
  • Assets under management (AUM) reached $2.0 trillion, reflecting a 6% increase from the previous period.
  • The total payout ratio year-to-date was reported at 138%.
  • The board of directors authorized a new common share repurchase program of $6 billion.

In the securities services business segment: Investment services fees in asset servicing, issuer services, and clearance and collateral management showed growth of 4%, 8%, and 2% respectively. Total investment services fees increased by 1% year-over-year. Foreign exchange revenue increased by 5%, while other fees increased by 9%. The pre-tax operating margin for this segment was reported at 28%.

In the market and wealth services business segment: Pershing saw a 2% increase in investment services fees, while treasury services and clearance and collateral management showed 3% and 2% growth respectively. The pre-tax operating margin for this segment was reported at 45%.

In the investment and wealth management business segment: Investment management fees saw a significant increase of 6%. Average loans increased by 1%, while average deposits decreased by 6%. * Assets under management (AUM) reached $2.015 trillion, reflecting a 2% increase from the previous period.

These figures reflect BNY Mellon's strong financial performance and growth across its various business segments, indicating a positive start to the year and a promising outlook for the future. Following these announcements, the company's shares moved -1.9%, and are now trading at a price of $54.05. For more information, read the company's full 8-K submission here.

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