Summary
In the second quarter of 2013, Bank of New York Mellon Corporation (BK) demonstrated robust performance, driven by increases in key revenue streams and a significant reduction in expenses compared to the prior year. Net income applicable to common shareholders was $833 million, or $0.71 per diluted common share, a substantial improvement from the prior year's $466 million, which was impacted by a significant litigation charge. The company saw strong year-over-year growth in Assets Under Custody/Administration (AUC/A) by 4% to $26.2 trillion and Assets Under Management (AUM) by 10% to $1.43 trillion, reflecting higher market values and net new business. Investment services and management fees also saw healthy increases, supported by higher market values and client inflows. BNY Mellon's operational efficiency was highlighted by a 7% year-over-year decrease in noninterest expense, primarily due to lower litigation charges. The company also benefited from a $109 million after-tax gain from its investment in ConvergEx. Looking ahead, BNY Mellon is navigating evolving regulatory landscapes, including the implementation of Basel III capital rules, and continues to focus on capital management, evidenced by its share repurchase program and dividend increase. The company's capital ratios remain strong, exceeding regulatory requirements.
Financial Highlights
38 data points| Revenue | $3.99B |
| Operating Income | $590.00M |
| Interest Expense | $79.00M |
| Net Income | $843.00M |
| EPS (Basic) | $0.71 |
| EPS (Diluted) | $0.71 |
| Shares Outstanding (Basic) | 1.15B |
| Shares Outstanding (Diluted) | 1.16B |
Key Highlights
- 1Net income applicable to common shareholders was $833 million, or $0.71 per diluted common share, a significant increase from $466 million ($0.39 per share) in Q2 2012.
- 2Assets Under Custody and/or Administration (AUC/A) grew 4% year-over-year to $26.2 trillion.
- 3Assets Under Management (AUM) increased 10% year-over-year to $1.43 trillion.
- 4Investment services fees increased 4% year-over-year, driven by higher asset servicing, issuer services, and clearing services.
- 5Investment management and performance fees rose 6% year-over-year due to higher market values and net new business.
- 6Noninterest expense decreased 7% year-over-year to $2.8 billion, primarily due to lower litigation charges.
- 7The company recognized a $109 million after-tax gain on its investment in ConvergEx in Q2 2013.