01—Abstract
Summary
Summary of the 10-Q filed August 2, 2024. Cited figures are marked; the original filing is the authoritative source.
The Bank of New York Mellon Corporation (BK) reported solid results for the second quarter of 2024, demonstrating resilience and growth across its key business segments.
Total revenue saw a 2%a increase year-over-year, driven by a 4% rise in fee revenue, attributed to higher market values, net new business, and increased client activity. Investment services fees, in particular, grew by 5%. Despite a 6% decrease in net interest income, primarily due to balance sheet mix changes, the company managed noninterest expenses effectively, reporting a 1% decrease year-over-year, aided by efficiency savings and reduced FDIC special assessments.
This cost management, coupled with revenue growth, resulted in a net income applicable to common shareholders of $1,143 millionb, or $1.52 per diluted share, up from $1.31 per diluted share in the prior year. The company also announced a 12% increase in its quarterly cash dividend to $0.47 per share, underscoring its commitment to returning capital to shareholders. Furthermore, BNY Mellon maintained strong capital ratios, with a CET1 ratio of 11.4%, well above regulatory minimums.
02—Key points
Key Highlights
- Total revenue increased by 2% year-over-year to $4.6 billion, primarily driven by a 4% increase in fee revenue, reaching $3.4 billion.
- Net income applicable to common shareholders was $1,143 million ($1.52 per diluted share), an increase from $1,036 million ($1.31 per diluted share) in the second quarter of 2023.
- The company announced a 12% increase in its quarterly cash dividend on common stock, from $0.42 to $0.47 per share.
- Assets Under Custody and/or Administration (AUC/A) grew by 6% to $49.5 trillion, and Assets Under Management (AUM) increased by 7% to $2.0 trillion, both primarily due to higher market values.
- Common equity Tier 1 (CET1) ratio remained strong at 11.4% as of June 30, 2024, up from 10.8% at March 31, 2024, reflecting increased capital and lower risk-weighted assets.
- Noninterest expense decreased by 1% year-over-year, supported by efficiency savings and a reduction in the FDIC special assessment, partially offset by investments and employee costs.
- BNY Mellon returned $923 million to common shareholders through dividends and share repurchases in the quarter.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2024filed August 2, 2024Financial Statements
Q2 FY2024 against Q2 FY2023
| Line item | Q2 FY2024Q2 FY2023 | Change |
|---|---|---|
| Net Income | $1.17B$1.07B | +9.0% |
| EPS (Basic) | $1.53$1.32 | +15.9% |
| EPS (Diluted) | $1.52$1.31 | +16.0% |
| Shares Outstanding (Basic) | 746.90M787.72M | −5.2% |
| Shares Outstanding (Diluted) | 751.60M790.73M | −4.9% |
05—Questions
Frequently Asked Questions
What was BNY Mellon's net income for the second quarter of 2024?
BNY Mellon reported a net income applicable to common shareholders of $1,143 million, or $1.52 per diluted common share, for the second quarter of 2024.
How did BNY Mellon's fee revenue perform in the second quarter?
Fee revenue increased by 4% year-over-year to $3.4 billion, driven by higher market values, net new business, increased foreign exchange revenue, and higher client activity.
What is the outlook for BNY Mellon's capital position?
BNY Mellon maintained a strong capital position, with its CET1 ratio at 11.4% as of June 30, 2024, an improvement from the previous quarter, reflecting increased capital and lower risk-weighted assets.
Did BNY Mellon increase its dividend in this quarter?
Yes, in July 2024, BNY Mellon's Board of Directors approved a 12% increase in the quarterly cash dividend on common stock, from $0.42 to $0.47 per share.
06—Continue