Early Access

10-QPeriod: Q2 FY2012

Bank of New York Mellon Corp Quarterly Report for Q2 Ended Jun 30, 2012

Filed August 8, 2012For Securities:BKBK-PK

Summary

The Bank of New York Mellon Corporation (BK) reported net income applicable to common shareholders of $466 million, or $0.39 per diluted share, for the second quarter of 2012. This figure includes a significant litigation charge of $212 million after-tax ($0.18 per share). Excluding this charge, the company's performance reflects a challenging operating environment. Total revenue declined year-over-year, primarily driven by lower fee and other revenue, particularly within Investment Services fees and Foreign exchange and other trading revenue. Net interest revenue saw a slight increase year-over-year, but the net interest margin continued to compress. Despite a record $27.1 trillion in assets under custody and administration, the company navigated market pressures, including lower equity market values and increased client deposits invested in lower-yielding assets. Capital ratios remain robust, with an estimated Basel III Tier 1 common equity ratio of 8.7% at quarter-end.

Financial Highlights

38 data points
Beta

Revenue

$3.59B

Net Income

$466.00M

0.1% Net Margin

EPS (Diluted)

$0.39

Total Assets

$330.28B

Cash & Equivalents

$4.52B

Free Cash Flow

$113.00M

Financial Statements
Beta
Revenue$3.59B
Operating Income$1.08B
Interest Expense$141.00M
Net Income$466.00M
EPS (Basic)$0.39
EPS (Diluted)$0.39
Shares Outstanding (Basic)1.18B
Shares Outstanding (Diluted)1.18B

Key Highlights

  • 1Net income applicable to common shareholders was $466 million ($0.39 per diluted share), impacted by a $212 million after-tax litigation charge.
  • 2Total revenue decreased 6% year-over-year to $3.6 billion, primarily due to a 8% decline in fee and other revenue.
  • 3Assets under custody and administration (AUC) reached a record $27.1 trillion, up 3% year-over-year, driven by net new business.
  • 4Assets under management (AUM) were $1.30 trillion, up 2% year-over-year, reflecting net inflows partially offset by lower equity market values.
  • 5Net interest revenue increased slightly to $734 million year-over-year, but the net interest margin (FTE) decreased to 1.25% from 1.41% in the prior year period.
  • 6Noninterest expense increased 8% year-over-year to $3.0 billion, primarily due to the litigation charge.
  • 7The company's estimated Basel III Tier 1 common equity ratio was 8.7% at June 30, 2012, an increase from the previous quarter.

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