Summary
The Bank of New York Mellon Corporation (BK) reported its first quarter 2019 financial results, showing a year-over-year decrease in net income applicable to common shareholders to $910 million, or $0.94 per diluted share, compared to $1.14 billion, or $1.10 per diluted share, in the first quarter of 2018. This decline was primarily driven by a 7% decrease in total revenue, which fell to $3.9 billion. The revenue reduction was attributed to a 9% drop in fee revenue, impacted by foreign currency translation, prior year divestitures, net asset management outflows, and lower foreign exchange revenue. Net interest revenue also decreased by 8% due to lower deposit and loan balances and higher deposit rates. Despite the revenue headwinds, the company managed to reduce non-interest expense by 1% to $2.7 billion, supported by lower incentive and volume-related expenses, although technology investments continued. The CET1 ratio improved to 11.1% from 10.7% at the end of 2018, reflecting solid capital generation. BNY Mellon also returned capital to shareholders through $555 million in common stock repurchases and $270 million in dividends.
Financial Highlights
36 data points| Interest Expense | $1.08B |
| Net Income | $946.00M |
| EPS (Basic) | $0.94 |
| EPS (Diluted) | $0.94 |
| Shares Outstanding (Basic) | 962.40M |
| Shares Outstanding (Diluted) | 965.96M |
Key Highlights
- 1Net income applicable to common shareholders decreased 20% year-over-year to $910 million ($0.94/share) from $1.14 billion ($1.10/share).
- 2Total revenue declined 7% year-over-year to $3.9 billion, primarily due to a 9% decrease in fee revenue and an 8% decrease in net interest revenue.
- 3Fee revenue was impacted by foreign currency translation, prior year divestitures, net asset management outflows, and lower foreign exchange revenue.
- 4Net interest revenue was affected by lower deposit and loan balances and higher deposit rates, partially offset by higher asset yields.
- 5Non-interest expense decreased 1% year-over-year to $2.7 billion, aided by lower incentive and volume-related expenses, despite continued technology investments.
- 6Common equity Tier 1 (CET1) ratio improved to 11.1% from 10.7% at year-end 2018.
- 7BNY Mellon repurchased $555 million of common stock and paid $270 million in dividends during the quarter.