Summary
The Bank of New York Mellon Corporation (BK) reported its third-quarter 2019 financial results, showing a net income applicable to common shareholders of $1.0 billion, or $1.07 per diluted share, a slight decrease from the prior year's $1.08 billion, or $1.06 per diluted share. Total revenue declined by 5% to $3.9 billion, primarily driven by a 1% decrease in fee revenue and a significant 18% drop in net interest revenue. The decline in net interest revenue was notably impacted by a $70 million lease-related impairment. Despite the revenue pressures, BNY Mellon demonstrated effective expense management, with noninterest expense decreasing by 5% to $2.6 billion, largely due to a reduction in reserves for tax-related exposures and lower litigation expenses. The company also maintained a strong capital position, with a CET1 ratio of 11.1% under the Advanced Approaches, consistent with the previous quarter. During the period, BNY Mellon returned capital to shareholders through $981 million in common stock repurchases and $294 million in dividends.
Financial Highlights
36 data points| Interest Expense | $1.21B |
| Net Income | $1.04B |
| EPS (Basic) | $1.07 |
| EPS (Diluted) | $1.07 |
| Shares Outstanding (Basic) | 933.26M |
| Shares Outstanding (Diluted) | 935.68M |
Key Highlights
- 1Net income applicable to common shareholders was $1.0 billion ($1.07 per diluted share) for Q3 2019, compared to $1.08 billion ($1.06 per diluted share) in Q3 2018.
- 2Total revenue decreased 5% to $3.9 billion, driven by a 1% decline in fee revenue and an 18% decrease in net interest revenue.
- 3Net interest revenue was significantly impacted by an 8% reduction from a $70 million lease-related impairment.
- 4Noninterest expense decreased 5% to $2.6 billion, primarily due to reduced reserves for tax-related exposure and lower litigation expenses.
- 5The Common Equity Tier 1 (CET1) ratio remained strong at 11.1% (Advanced Approaches) as of September 30, 2019.
- 6BNY Mellon repurchased $981 million of common stock and paid $294 million in dividends during the quarter, demonstrating capital return to shareholders.
- 7The company announced a definitive agreement to sell its interest in Promontory Interfinancial Network, LLC, expecting an after-tax gain of approximately $600 million upon closing in Q4 2019.