Summary
The Bank of New York Mellon Corporation (BK) reported its third quarter 2007 results, marked significantly by the completion of its merger with Mellon Financial Corporation on July 1, 2007. This merger, accounted for as a purchase, dramatically impacted the company's financial figures, with the current quarter's results reflecting the combined entity. Reported net income was $640 million, with diluted EPS of $0.56. Excluding merger and integration expenses of $218 million, adjusted diluted EPS from continuing operations reached $0.67. The company saw substantial growth in its key business segments due to the merger. Assets under custody and administration surged to $20.8 trillion, and assets under management grew to $1.106 trillion. Fee and other revenue, comprising 81% of total revenue, increased by 132% year-over-year, largely driven by growth in asset servicing, issuer services, and asset and wealth management fees. Net interest revenue also saw a significant increase, primarily due to the merger and higher average interest-earning assets.
Key Highlights
- 1Completed merger with Mellon Financial Corporation on July 1, 2007, significantly impacting financial results.
- 2Reported net income of $640 million, with diluted EPS of $0.56.
- 3Excluding merger and integration expenses, adjusted diluted EPS from continuing operations was $0.67.
- 4Assets under custody and administration reached $20.8 trillion, and assets under management grew to $1.106 trillion, driven by the merger.
- 5Fee and other revenue increased by 132% year-over-year, representing 81% of total revenue, boosted by strong performance in asset servicing and asset/wealth management.
- 6Net interest revenue increased significantly due to the merger and higher average interest-earning assets.
- 7Capital ratios remained strong, with Tier I capital ratio at 9.12% and Total capital ratio at 13.05%.