Summary
The Bank of New York Mellon Corporation (BK) reported solid financial performance for the first quarter of 2015, demonstrating growth in key business segments and effective expense management. Net income applicable to common shareholders increased year-over-year to $766 million, or $0.67 per diluted share, compared to $661 million, or $0.57 per diluted share, in the prior year quarter. This improvement was driven by robust growth in assets under custody/administration (AUC/A) and assets under management (AUM), which reached $28.5 trillion and $1.7 trillion, respectively, reflecting higher market values and net new business. Fee and other revenue saw a 4% increase year-over-year, supported by strong performance in investment services and foreign exchange trading. BNY Mellon also made significant strides in its capital management and strategic initiatives. The company received a non-objection from the Federal Reserve for its 2015 capital plan, paving the way for an approved share repurchase program of up to $3.1 billion. Furthermore, the company resolved substantially all foreign exchange-related legal actions for $714 million, which was covered by existing reserves, indicating a proactive approach to managing legal contingencies. While noninterest expense remained controlled, the company continues to invest in compliance and risk functions, reflecting the evolving regulatory landscape.
Financial Highlights
39 data points| Revenue | $3.76B |
| Operating Income | $779.00M |
| Interest Expense | $79.00M |
| Net Income | $779.00M |
| EPS (Basic) | $0.67 |
| EPS (Diluted) | $0.67 |
| Shares Outstanding (Basic) | 1.12B |
| Shares Outstanding (Diluted) | 1.13B |
Key Highlights
- 1Net income applicable to common shareholders rose to $766 million ($0.67/share) from $661 million ($0.57/share) in Q1 2014.
- 2Assets under custody and/or administration (AUC/A) increased 2% year-over-year to $28.5 trillion.
- 3Assets under management (AUM) grew 7% year-over-year to a record $1.74 trillion.
- 4Investment services fees increased 3% year-over-year to $1.75 billion.
- 5Foreign exchange and other trading revenue increased significantly by 67% year-over-year to $229 million.
- 6The company's 2015 capital plan received a non-objection from the Federal Reserve, allowing for significant share repurchases.
- 7BNY Mellon resolved substantially all foreign exchange-related litigation for $714 million, covered by existing reserves.