Summary
BNY Mellon's third quarter 2022 results show a mixed financial performance impacted by a significant goodwill impairment charge. While net interest revenue saw a substantial increase of 44% year-over-year, driven by higher interest rates, total revenue grew by 6% to $4.3 billion. This growth was primarily supported by the Securities Services and Market and Wealth Services segments, which reported revenue increases of 13% and 17% respectively. However, the Investment and Wealth Management segment experienced a 16% revenue decline. The company recorded a $680 million non-cash goodwill impairment charge in its Investment Management reporting unit, leading to a reported net income applicable to common shareholders of $319 million ($0.39 per diluted share). Excluding notable items, adjusted net income was $983 million ($1.21 per diluted share), representing a decrease from the prior year's adjusted net income of $926 million ($1.09 per diluted share). BNY Mellon's Assets Under Custody/Administration (AUC/A) decreased by 7% to $42.2 trillion, primarily due to lower market values and a stronger U.S. dollar, though partially offset by client inflows. Assets Under Management (AUM) also saw a significant decline of 23% to $1.8 trillion, attributed to the same factors. Despite these challenges, the company increased its quarterly cash dividend by 9% to $0.37 per share and maintained strong capital ratios, with a CET1 ratio of 10.0%.
Financial Highlights
38 data points| Interest Expense | $1.06B |
| Net Income | $388.00M |
| EPS (Basic) | $0.39 |
| EPS (Diluted) | $0.39 |
| Shares Outstanding (Basic) | 811.30M |
| Shares Outstanding (Diluted) | 814.52M |
Key Highlights
- 1Net interest revenue surged 44% year-over-year, benefiting from higher interest rates.
- 2Total revenue increased by 6% to $4.3 billion, driven by strong performance in Securities Services and Market and Wealth Services.
- 3A significant goodwill impairment charge of $680 million negatively impacted the Investment and Wealth Management segment and overall net income.
- 4Assets Under Custody/Administration (AUC/A) decreased by 7% to $42.2 trillion and Assets Under Management (AUM) fell by 23% to $1.8 trillion, primarily due to market conditions and currency fluctuations.
- 5BNY Mellon increased its quarterly common stock dividend by 9% to $0.37 per share.
- 6Capital ratios remained strong, with the CET1 ratio at 10.0%.
- 7The company completed the sale of BNY Alcentra Group Holdings, Inc. on November 1, 2022.