Summary
The Bank of New York Mellon Corporation (BK) reported its first quarter 2013 financial results, marked by a net loss of $266 million, or $0.23 per diluted share. This loss was significantly impacted by a substantial $854 million after-tax charge related to a U.S. Tax Court ruling that disallowed certain foreign tax credits for the 2001 and 2002 tax years. Excluding this one-time charge, the company would have reported a net income of $588 million, or $0.50 per diluted share, which is a slight decrease compared to the $619 million in net income reported in the first quarter of 2012. Despite the net loss, key business metrics showed growth. Assets under custody and/or administration (AUC/A) reached $26.3 trillion, a 2% increase year-over-year, driven by new business and market appreciation. Assets under management (AUM) hit a record $1.43 trillion, up 9% year-over-year, also benefiting from net new business and higher market values. Fee and other revenue remained stable year-over-year at $2.8 billion, with growth in investment management and asset servicing fees offsetting declines in other areas. Importantly, the company received Federal Reserve approval for its 2013 capital plan, leading to an increase in share repurchases and a dividend increase.
Financial Highlights
38 data points| Revenue | $3.61B |
| Operating Income | -$253.00M |
| Interest Expense | $96.00M |
| Net Income | -$253.00M |
| EPS (Basic) | $-0.23 |
| EPS (Diluted) | $-0.23 |
| Shares Outstanding (Basic) | 1.16B |
| Shares Outstanding (Diluted) | 1.16B |
Key Highlights
- 1Reported a net loss of $266 million ($0.23/share) due to an $854 million after-tax charge from a tax court ruling on foreign tax credits.
- 2Adjusted net income was $588 million ($0.50/share), a slight decrease from $619 million ($0.52/share) in Q1 2012.
- 3Assets Under Custody and/or Administration (AUC/A) grew 2% year-over-year to $26.3 trillion.
- 4Assets Under Management (AUM) reached a record $1.43 trillion, up 9% year-over-year.
- 5Fee and other revenue remained flat year-over-year at $2.8 billion, with growth in Investment Management and Asset Servicing offsetting declines elsewhere.
- 6Received Federal Reserve approval for the 2013 capital plan, enabling a 16% increase in share repurchase authorization and a 15% dividend increase.
- 7Noninterest expense was flat year-over-year at $2.8 billion, though adjusted noninterest expense increased 6% due to specific provisions and integration costs.