Early Access

10-QPeriod: Q3 FY2012

Bank of New York Mellon Corp Quarterly Report for Q3 Ended Sep 30, 2012

Filed November 8, 2012For Securities:BKBK-PK

Summary

Bank of New York Mellon Corporation (BK) reported a solid third quarter of 2012, with net income applicable to common shareholders increasing to $720 million, or $0.61 per diluted share, up from $651 million, or $0.53 per share, in the same quarter last year. This performance was driven by record levels in both assets under custody and administration ($27.9 trillion) and assets under management ($1.4 trillion), reflecting higher market values and net new business across its key business segments. The company demonstrated strong capital positioning, with its estimated Basel III Tier 1 common equity ratio improving to 9.3%. Noninterest expense remained well-controlled, decreasing year-over-year primarily due to lower litigation and restructuring charges. Despite a decline in net interest revenue and margin compared to the prior year, likely due to lower reinvestment yields and the elimination of interest on European Central Bank deposits, the overall financial health of the bank appears stable, supported by its fee-based revenue streams.

Financial Highlights

38 data points
Beta

Revenue

$3.65B

Net Income

$725.00M

0.2% Net Margin

EPS (Diluted)

$0.61

Total Assets

$339.94B

Cash & Equivalents

$4.99B

Free Cash Flow

$722.00M

Financial Statements
Beta
Revenue$3.65B
Operating Income$1.81B
Interest Expense$128.00M
Net Income$725.00M
EPS (Basic)$0.61
EPS (Diluted)$0.61
Shares Outstanding (Basic)1.17B
Shares Outstanding (Diluted)1.17B

Key Highlights

  • 1Net income applicable to common shareholders was $720 million, or $0.61 per diluted share, an increase from $651 million, or $0.53 per share, in Q3 2011.
  • 2Assets under custody and administration reached a record $27.9 trillion, up 8% year-over-year.
  • 3Assets under management (excluding securities lending) also hit a record $1.4 trillion, up 13% year-over-year.
  • 4Investment services fees decreased 6% year-over-year to $1.68 billion, primarily due to lower Depositary Receipts revenue and the sale of the Shareowner Services business.
  • 5Investment management and performance fees increased 7% year-over-year to $779 million, driven by higher market values and net new business.
  • 6Net interest revenue decreased 3% year-over-year to $749 million, with the net interest margin (FTE) declining to 1.20% from 1.30% in Q3 2011.
  • 7The estimated Basel III Tier 1 common equity ratio increased to 9.3% from 8.7% at the end of Q2 2012.

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