Bank of New York Mellon Corp Quarterly Report for Q2 Ended Jun 30, 2022

Summary

BNY Mellon reported a net income applicable to common shareholders of $835 million, or $1.03 per diluted common share, for the second quarter of 2022. This represents a decrease from the $991 million, or $1.13 per diluted common share, reported in the same quarter of the previous year. Total revenue saw a 7% increase, reaching $4.3 billion, primarily driven by a 28% surge in net interest revenue, benefiting from higher interest rates. Fee and other revenue increased by 3%, supported by lower money market fee waivers and higher client activity, though partially offset by the stronger U.S. dollar and lower market values. The company also announced a 9% increase in its quarterly cash dividend to $0.37 per share, demonstrating a commitment to returning capital to shareholders.

Key Highlights

• 1Net income applicable to common shareholders decreased to $835 million ($1.03 per share) from $991 million ($1.13 per share) in the prior year's second quarter.
• 2Total revenue increased by 7% to $4.3 billion, largely due to a significant 28% rise in net interest revenue driven by higher interest rates.
• 3Fee and other revenue increased by 3% to $3.4 billion, primarily due to lower money market fee waivers and increased client activity, despite headwinds from a stronger U.S. dollar and lower market values.
• 4Assets Under Custody/Administration (AUC/A) decreased by 4% to $43.0 trillion, primarily due to lower market values and a stronger U.S. dollar.
• 5Assets Under Management (AUM) decreased by 17% to $1.9 trillion, also impacted by lower market values and a stronger U.S. dollar.
• 6Noninterest expense increased by 12% to $3.1 billion, impacted by higher litigation reserves, investments in growth, and inflation.
• 7The company's Common Equity Tier 1 (CET1) ratio was 10.0% at the end of the quarter.

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