Early Access

10-QPeriod: Q2 FY2018

Bank of New York Mellon Corp Quarterly Report for Q2 Ended Jun 30, 2018

Filed August 3, 2018For Securities:BKBK-PK

Summary

In the second quarter of 2018, Bank of New York Mellon (BK) demonstrated robust financial performance, driven by an 8% increase in Investment Services revenue and a 3% rise in Investment Management revenue, contributing to a 5% overall revenue increase to $4.1 billion. Net income applicable to common shareholders grew to $1.06 billion, or $1.03 per diluted share, up from $926 million, or $0.88 per diluted share, in the prior year's second quarter. This growth was fueled by higher equity market values, a weaker U.S. dollar, and increased net interest revenue driven by higher rates. The company also strengthened its capital position, with the CET1 ratio improving to 11.0% from 10.7% at the end of the first quarter. BNY Mellon's commitment to shareholder returns was evident with the board approving a significant 17% increase in its quarterly cash dividend on common stock to $0.28 per share, alongside a new $2.4 billion share repurchase program. These capital actions, combined with strong operational performance, highlight the company's focus on enhancing shareholder value. Investments in technology and real estate consolidation were noted as key drivers of a 3% increase in non-interest expense, which the company expects to continue as it enhances its technological infrastructure.

Financial Highlights

37 data points
Beta

Revenue

$2.89B

Net Income

$1.10B

0.4% Net Margin

EPS (Diluted)

$1.03

Total Assets

$352.93B

Cash & Equivalents

$5.36B

Free Cash Flow

$2.09B

Financial Statements
Beta
Revenue$2.89B
Interest Expense$637.00M
Net Income$1.10B
EPS (Basic)$1.04
EPS (Diluted)$1.03
Shares Outstanding (Basic)1.01B
Shares Outstanding (Diluted)1.01B

Key Highlights

  • 1Total revenue increased 5% year-over-year to $4.1 billion, driven by growth in both Investment Services (8%) and Investment Management (3%) segments.
  • 2Net income applicable to common shareholders rose to $1.06 billion ($1.03 per diluted share) from $926 million ($0.88 per diluted share) in the prior year's second quarter.
  • 3Net interest revenue saw an 11% increase due to higher interest rates.
  • 4The CET1 ratio improved to 11.0% at June 30, 2018, up from 10.7% at March 31, 2018.
  • 5BNY Mellon's Board of Directors approved a 17% increase in the quarterly cash dividend to $0.28 per share.
  • 6A new share repurchase program of up to $2.4 billion was authorized, commencing in Q3 2018.
  • 7Non-interest expense increased 3% to $2.7 billion, primarily due to investments in technology and real estate consolidation.

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