Early Access

10-QPeriod: Q3 FY2014

Bank of New York Mellon Corp Quarterly Report for Q3 Ended Sep 30, 2014

Filed November 7, 2014For Securities:BKBK-PK

Summary

The Bank of New York Mellon Corporation (BK) reported solid results for the third quarter of 2014, driven by strong performance in its Investment Services and Investment Management businesses. Total revenue saw a significant increase year-over-year, largely due to substantial gains from the sale of its equity investment in Wing Hang Bank and the One Wall Street office building. Fee and other revenue benefited from increases in asset servicing fees and investment management fees, reflecting higher market values and net new business. Net interest revenue experienced a year-over-year decrease due to lower asset yields, although this was partially offset by higher average interest-earning assets. The company also highlighted its strategic exit from the derivatives sales and trading business and the acquisition of Cutwater Asset Management, which is expected to close in early 2015. BNY Mellon maintained strong capital ratios, exceeding regulatory requirements and expressing confidence in its ability to meet upcoming Basel III and Supplementary Leverage Ratio (SLR) requirements.

Financial Highlights

38 data points
Beta

Revenue

$4.59B

Net Income

$1.08B

0.2% Net Margin

EPS (Diluted)

$0.93

Total Assets

$386.30B

Cash & Equivalents

$6.41B

Free Cash Flow

$698.00M

Financial Statements
Beta
Revenue$4.59B
Operating Income$2.33B
Interest Expense$88.00M
Net Income$1.08B
EPS (Basic)$0.93
EPS (Diluted)$0.93
Shares Outstanding (Basic)1.13B
Shares Outstanding (Diluted)1.13B

Key Highlights

  • 1Total revenue increased significantly due to substantial gains from asset sales (Wing Hang and One Wall Street).
  • 2Investment Services fees increased 5% year-over-year, driven by organic growth, higher market values, and net new business.
  • 3Investment Management and performance fees rose 7% year-over-year, reflecting higher equity markets and a weaker U.S. dollar.
  • 4Net interest revenue decreased 7% year-over-year due to lower asset yields, partially offset by higher interest-earning assets.
  • 5BNY Mellon announced plans to exit its derivatives sales and trading business and acquired Cutwater Asset Management.
  • 6The company reported strong capital ratios, with an estimated Basel III CET1 ratio of 10.2% under the Advanced Approach and 10.8% under the Standardized Approach.
  • 7BNY Mellon repurchased 11.0 million common shares for $431 million in the third quarter.

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