Bank of New York Mellon Corp Quarterly Report for Q3 Ended Sep 30, 2023

Summary

The Bank of New York Mellon Corporation (BK) reported its third quarter 2023 results, demonstrating resilience and strategic execution. Total revenue reached $4.4 billion, a 2% increase year-over-year, primarily driven by a 10% rise in net interest revenue, benefiting from higher interest rates. Fee revenue remained flat, reflecting mixed impacts from market values, new business, currency fluctuations, and divestitures. The company managed expenses effectively, with total noninterest expense decreasing by 16% year-over-year, largely due to the prior year's goodwill impairment charge. Excluding notable items, adjusted noninterest expense increased by 3%, reflecting investments in growth and inflation impacts, partially offset by efficiency savings. BNY Mellon also returned capital to shareholders through a 14% increase in its quarterly cash dividend to $0.42 per share and $783 million in total capital returned, including $450 million in share repurchases. The company maintained strong capital and liquidity positions, with its CET1 ratio at 11.4% and a Tier 1 leverage ratio of 6.1%. Assets Under Custody/Administration (AUC/A) grew 8% to $45.7 trillion, and Assets Under Management (AUM) increased 3% to $1.8 trillion, indicating continued client trust and market presence. The results highlight BNY Mellon's ability to navigate a complex economic environment while investing in its business and rewarding shareholders.

Key Highlights

• 1Total revenue increased by 2% to $4.4 billion, driven by a 10% increase in net interest revenue due to higher interest rates.
• 2Fee revenue remained flat, impacted by divestitures and currency fluctuations, but supported by higher market values and new business.
• 3Noninterest expense decreased by 16% year-over-year, primarily due to the absence of a significant goodwill impairment charge from the prior year.
• 4Return on common equity (ROE) was 10.5%, and Return on Tangible Common Equity (ROTCE) was 20.5% (Non-GAAP).
• 5Assets Under Custody/Administration (AUC/A) grew 8% to $45.7 trillion, and Assets Under Management (AUM) increased 3% to $1.8 trillion.
• 6The company returned $783 million to common shareholders through dividends and share repurchases, including a 14% dividend increase.
• 7Common Equity Tier 1 (CET1) ratio remained strong at 11.4%.

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