What was the main driver for the decrease in net income compared to the prior year?

The primary driver for the decrease in net income was a 5% year-over-year decline in total revenue, largely influenced by a 20% drop in net interest revenue due to lower interest rates. This was partially offset by growth in fee revenue.

What is the outlook for net interest revenue?

BNY Mellon expects net interest revenue to continue decreasing in 2021 compared to 2020 due to persistently low interest rates. The company's net interest margin also saw a decrease year-over-year.

How did the company manage its expenses during the quarter?

Noninterest expense increased by 5% year-over-year, mainly due to higher staff expenses, technology-related expenses, and the unfavorable impact of a weaker U.S. dollar. The company expects total reported noninterest expense to increase slightly for the full year 2021.

BK/BK-PK 10-Q Quarterly Report Q1 FY2021 — Revenue, Net Income, EPS

Q: How did the company's AUM and AUC/A perform in the first quarter of 2021?

The company saw significant growth in its assets under custody/administration (AUC/A), which increased by 18% to $41.7 trillion, and assets under management (AUM), which rose by 23% to $2.2 trillion. This growth was attributed to higher market values, net new business, and a weaker U.S. dollar.

Summary

The Bank of New York Mellon Corporation (BK) reported a decrease in net income applicable to common shareholders to $858 million ($0.97 per diluted common share) for the first quarter of 2021, down from $944 million ($1.05 per diluted common share) in the prior year's first quarter. This decline was primarily driven by a 5% decrease in total revenue to $3.9 billion, impacted by a 20% drop in net interest revenue due to lower interest rates, which was only partially offset by growth in fee revenue. The company experienced an 5% increase in noninterest expense, mainly due to higher staff, technology, and unfavorable currency impacts. Despite the year-over-year decline in profitability, the company saw robust growth in Assets Under Custody/Administration (AUC/A) which increased by 18% to $41.7 trillion, and Assets Under Management (AUM) which grew by 23% to $2.2 trillion. The Investment and Wealth Management segment demonstrated strong performance with a 10% revenue increase and a 43% rise in income before taxes. The provision for credit losses benefited the quarter with a $83 million release, reflecting an improved macroeconomic forecast. BNY Mellon also continued its capital return program, repurchasing $699 million of its common stock.

Financial Highlights

38 data points

Beta

Net Income

$927.00M

EPS (Diluted)

$0.97

Total Assets

$464.98B

Cash & Equivalents

$5.99B

Free Cash Flow

-$3.39B

Financial Statements

Beta

Interest Expense	$83.00M
Net Income	$927.00M
EPS (Basic)	$0.97
EPS (Diluted)	$0.97
Shares Outstanding (Basic)	882.56M
Shares Outstanding (Diluted)	885.65M

Key Highlights

1Net income applicable to common shareholders decreased by 8.9% year-over-year to $858 million.
2Total revenue decreased by 5% year-over-year to $3.9 billion, primarily due to a 20% decline in net interest revenue.
3Assets Under Custody/Administration (AUC/A) increased by 18% to $41.7 trillion.
4Assets Under Management (AUM) increased by 23% to $2.2 trillion.
5Investment and Wealth Management segment revenue grew by 10% and income before taxes increased by 43%.
6Noninterest expense increased by 5% year-over-year, driven by higher staff, technology, and unfavorable currency impacts.
7BNY Mellon repurchased $699 million of common stock and paid $277 million in common stock dividends during the quarter.

Bank of New York Mellon Corp Quarterly Report for Q1 Ended Mar 31, 2021

Summary

Financial Highlights

Key Highlights

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