How did BNY Mellon's revenue performance compare to the prior year's second quarter?

BNY Mellon's total revenue decreased by 1% year-over-year to $4.0 billion. This was primarily driven by a 17% decrease in net interest revenue due to lower interest rates, which was partially offset by a 4% increase in fee revenue. Fee revenue benefited from higher market values, a weaker U.S. dollar, and increased client volumes.

What was the performance of BNY Mellon's key business segments?

The Investment Services segment's total revenue decreased by 4%, but income before taxes increased by 3%. The Investment and Wealth Management segment performed strongly, with total revenue up 13% and income before taxes up significantly by 48%.

What actions did BNY Mellon take regarding capital returns to shareholders?

BNY Mellon's Board of Directors approved a significant $6.0 billion share repurchase program, which will begin in the third quarter of 2021 and continue through the fourth quarter of 2022. Additionally, the Board approved a 10% increase in the quarterly cash dividend on common stock, from $0.31 to $0.34 per share, payable in August 2021.

How did BNY Mellon's capital ratios fare in the quarter?

BNY Mellon maintained a strong capital position. The CET1 ratio was 12.6% at June 30, 2021, remaining unchanged from the previous quarter. The Tier 1 leverage ratio improved to 6.0% from 5.8% at March 31, 2021, reflecting capital generation and lower average assets.

What was the impact of money market fee waivers on the company's revenue?

The net impact of money market fee waivers was $252 million in the second quarter of 2021, an increase from $188 million in the first quarter of 2021. This increase was driven by lower short-term interest rates and higher money market balances. The company expects the net impact to approximate $225 million in the third quarter of 2021, based on current rates and balances.

BK/BK-PK 10-Q Quarterly Report Q2 FY2021 — Revenue, Net Income, EPS

Summary

The Bank of New York Mellon Corporation (BK) reported solid results for the second quarter of 2021, demonstrating resilience despite a challenging interest rate environment. Total revenue saw a slight decrease of 1%, primarily due to lower net interest revenue, which was impacted by persistently low interest rates. However, this was offset by a 4% increase in fee revenue, driven by stronger market values and favorable foreign exchange impacts. The company's Investment Services segment experienced a 4% revenue decline but saw a 3% increase in income before taxes, while the Investment and Wealth Management segment posted robust growth with a 13% increase in total revenue and a significant 48% rise in income before taxes. The company also returned capital to shareholders through a 10% increase in its quarterly dividend and announced a substantial $6.0 billion share repurchase program, signaling confidence in its financial position and future outlook. BNY Mellon's capital and liquidity positions remained strong, with a CET1 ratio of 12.6% and a Tier 1 leverage ratio of 6.0% at the end of the quarter.

Financial Highlights

38 data points

Beta

Net Income

$1.02B

EPS (Diluted)

$1.13

Total Assets

$466.96B

Cash & Equivalents

$5.15B

Free Cash Flow

$2.58B

Financial Statements

Beta

Interest Expense	$40.00M
Net Income	$1.02B
EPS (Basic)	$1.14
EPS (Diluted)	$1.13
Shares Outstanding (Basic)	869.46M
Shares Outstanding (Diluted)	873.48M

Key Highlights

1BNY Mellon reported Net Income applicable to common shareholders of $991 million, or $1.13 per diluted common share, an increase from $901 million, or $1.01 per diluted common share, in the prior year's second quarter.
2Total revenue decreased 1% year-over-year to $4.0 billion, primarily impacted by a 17% decrease in net interest revenue due to lower interest rates.
3Fee revenue increased 4% year-over-year to $3.2 billion, driven by higher investment management and performance fees, asset servicing fees, and treasury services fees, benefiting from higher markets and a weaker U.S. dollar.
4Investment and Wealth Management segment showed strong performance with total revenue up 13% to $999 million and income before taxes up 48% to $326 million.
5Assets Under Custody/Administration (AUC/A) increased 21% to $45.0 trillion, and Assets Under Management (AUM) increased 18% to $2.3 trillion, reflecting higher market values and net new business.
6The company announced a $6.0 billion share repurchase program and a 10% increase in its quarterly cash dividend to $0.34 per share, demonstrating a commitment to returning capital to shareholders.
7The CET1 ratio remained strong at 12.6%, while the Tier 1 leverage ratio improved to 6.0%, indicating a solid capital position.

Bank of New York Mellon Corp Quarterly Report for Q2 Ended Jun 30, 2021

Summary

Financial Highlights

Key Highlights

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