The Bank of New York Mellon Corporation (BNY) has reported its financial results for the second quarter of 2024, with earnings per common share coming in at $1.52, representing a 16% increase year-over-year. Adjusted earnings per share, excluding notable items, were $1.51, marking a 9% increase from the same period last year.
Total revenue for the quarter reached $4.6 billion, a 2% increase from the previous year. Noninterest expense decreased by 1%, or increased by 1% excluding notable items. Net income applicable to common shareholders rose by 20% year-over-year to $1.143 billion.
The company's financial ratios also demonstrated positive trends, with the pre-tax operating margin at 33%, an improvement from the previous quarter's 29%, and return on tangible common equity (ROTCE) at 24.6%, an increase from the previous quarter's 22.8%.
In terms of assets under custody and/or administration (AUC/A), BNY saw a 1% increase to $49.5 trillion, while assets under management (AUM) rose by 1% to $2.0 trillion.
The bank also increased its common dividend by 12% following the release of the Federal Reserve's 2024 bank stress test results in June.
Looking at the business segments, the securities services business reported a 2% increase in total revenue, driven by a 3% increase in investment services fees and a 16% increase in foreign exchange revenue.
Meanwhile, the market and wealth services business segment saw a 1% increase in total revenue, with a 2% increase in investment services fees and a 10% increase in foreign exchange revenue.
The investment and wealth management business segment experienced a 1% decrease in total revenue, with a 2% decrease in investment management fees and a 10% decrease in net interest income.
Following these announcements, the company's shares moved 5.3%, and are now trading at a price of $64.75. For the full picture, make sure to review Bank of New York Mellon's 8-K report.
