Bank of New York Mellon Corp Quarterly Report for Q3 Ended Sep 30, 2013

Summary

The Bank of New York Mellon Corporation (BK) reported solid results for the third quarter of 2013, driven by growth in its core businesses and a significant one-time benefit from a favorable tax court ruling. Assets under custody and/or administration (AUC/A) increased to $27.4 trillion, up 4% year-over-year, while assets under management (AUM) reached a record $1.53 trillion, a 13% increase. This growth contributed to higher investment services fees and investment management and performance fees, signaling continued client engagement and market appreciation. The company's net income applicable to common shareholders was $967 million, or $0.82 per diluted share, bolstered by a $261 million after-tax benefit ($0.22 per diluted share) from the U.S. Tax Court's partial reconsideration of a tax decision. Excluding this benefit, adjusted net income was $706 million, or $0.60 per diluted share. The company also maintained a strong capital position, with its estimated Basel III Tier 1 common equity ratio at 10.1% on a fully phased-in basis, indicating a solid buffer against regulatory requirements.

Key Highlights

• 1Assets Under Custody and/or Administration (AUC/A) grew 4% year-over-year to $27.4 trillion.
• 2Assets Under Management (AUM) reached a record $1.53 trillion, up 13% year-over-year.
• 3Net income applicable to common shareholders was $967 million ($0.82 per diluted share), including a significant tax benefit.
• 4Investment services fees increased 4% year-over-year, driven by higher clearing, asset servicing, and issuer services revenue.
• 5Investment management and performance fees rose 5% year-over-year.
• 6The estimated Basel III Tier 1 common equity ratio (Standardized Approach, fully phased-in) was 10.1% at the end of the quarter.
• 7BNY Mellon repurchased $121 million of common stock during the quarter.

Frequently Asked Questions