Early Access

10-QPeriod: Q1 FY2018

Bank of New York Mellon Corp Quarterly Report for Q1 Ended Mar 31, 2018

Filed May 8, 2018For Securities:BKBK-PK

Summary

The Bank of New York Mellon Corporation (BNY Mellon) reported strong first-quarter 2018 results, with net income applicable to common shareholders rising to $1.14 billion, or $1.10 per diluted share, from $880 million, or $0.83 per diluted share, in the prior year. Total revenue increased by 9% to $4.2 billion, driven by a 10% rise in fee revenue and a 16% increase in net interest revenue. This growth was supported by higher equity market values, a weaker U.S. dollar, and increased interest rates and deposits. The company's two primary segments, Investment Services and Investment Management, both demonstrated robust performance. Investment Services saw an 11% revenue increase and a 22% rise in income before taxes, reaching a record $33.5 trillion in Assets Under Custody/Administration (AUC/A). Investment Management also reported a 13% revenue increase and a significant 38% jump in income before taxes, with Assets Under Management (AUM) growing by 8% to $1.9 trillion. BNY Mellon also highlighted a healthy capital position with a CET1 ratio of 10.7% under the Advanced Approach. The company returned capital to shareholders through $644 million in common stock repurchases and $246 million in dividends. The effective tax rate for the quarter was 19.5%, reflecting the lower federal statutory tax rate from the Tax Cuts and Jobs Act of 2017.

Financial Highlights

37 data points
Beta

Revenue

$2.98B

Net Income

$1.17B

0.4% Net Margin

EPS (Diluted)

$1.10

Total Assets

$373.60B

Cash & Equivalents

$4.64B

Free Cash Flow

-$1.02B

Financial Statements
Beta
Revenue$2.98B
Interest Expense$462.00M
Net Income$1.17B
EPS (Basic)$1.11
EPS (Diluted)$1.10
Shares Outstanding (Basic)1.02B
Shares Outstanding (Diluted)1.02B

Key Highlights

  • 1Net income applicable to common shareholders increased 29.5% year-over-year to $1.14 billion ($1.10 per share).
  • 2Total revenue grew 9% to $4.2 billion, driven by a 10% increase in fee revenue and a 16% increase in net interest revenue.
  • 3Investment Services revenue increased 11%, with Assets Under Custody/Administration (AUC/A) reaching a record $33.5 trillion.
  • 4Investment Management revenue increased 13%, with Assets Under Management (AUM) growing 8% to $1.9 trillion.
  • 5The CET1 ratio under the Advanced Approach was a strong 10.7%.
  • 6The company repurchased $644 million of common stock and paid $246 million in dividends.
  • 7The effective tax rate decreased to 19.5% due to the Tax Cuts and Jobs Act of 2017.

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