Summary
Bank of New York Mellon Corporation (BK) reported a decrease in net income applicable to common shareholders to $876 million ($0.98 per diluted share) in Q3 2020, down from $1.0 billion ($1.07 per diluted share) in Q3 2019. This decline was primarily attributed to lower net interest revenue, which was impacted by prevailing low interest rates, partially offset by higher deposit and securities portfolio balances. Total revenue remained relatively flat, decreasing less than 1%, driven by a slight dip in fee revenue due to higher money market fee waivers, though partially offset by increased client activity and stronger market values. The company maintained a strong capital position with a CET1 ratio of 13.0% at September 30, 2020. During the quarter, BNY Mellon continued its focus on technology investments and prudent balance sheet management amidst the ongoing economic uncertainties, including those stemming from the COVID-19 pandemic. The report also highlighted regulatory developments, including the Federal Reserve's announcement of BNY Mellon's stress capital buffer (SCB) requirement at the regulatory minimum of 2.5%, effective October 1, 2020. However, limitations on common stock repurchases and dividend increases remained in place through the fourth quarter of 2020 due to the Federal Reserve's capital plan review. Despite these restrictions, the company paid its regular quarterly dividend of $0.31 per share. Management expressed an intention to resume common stock repurchases as soon as market conditions and regulatory approvals permit.
Financial Highlights
36 data points| Interest Expense | $117.00M |
| Net Income | $937.00M |
| EPS (Basic) | $0.98 |
| EPS (Diluted) | $0.98 |
| Shares Outstanding (Basic) | 889.50M |
| Shares Outstanding (Diluted) | 891.07M |
Key Highlights
- 1Net income applicable to common shareholders decreased by 12.4% year-over-year to $876 million in Q3 2020.
- 2Total revenue slightly decreased by 0.3% to $3.8 billion in Q3 2020 compared to Q3 2019.
- 3Net interest revenue decreased by 4.0% year-over-year to $703 million, impacted by lower interest rates.
- 4Fee and other revenue remained relatively stable, decreasing by 0.9% to $3.1 billion in Q3 2020.
- 5The Common Equity Tier 1 (CET1) ratio improved to 13.0% at September 30, 2020, from 12.6% at June 30, 2020.
- 6BNY Mellon's Stress Capital Buffer (SCB) requirement was set at the regulatory minimum of 2.5%, effective October 1, 2020.
- 7Open market common stock repurchases remained suspended through Q4 2020, as per Federal Reserve guidelines.