Bank of New York Mellon Corp Quarterly Report for Q2 Ended Jun 30, 2024

Summary

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% 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 million, 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.

Key Highlights

• 1Total revenue increased by 2% year-over-year to $4.6 billion, primarily driven by a 4% increase in fee revenue, reaching $3.4 billion.
• 2Net 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.
• 3The company announced a 12% increase in its quarterly cash dividend on common stock, from $0.42 to $0.47 per share.
• 4Assets 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.
• 5Common 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.
• 6Noninterest 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.
• 7BNY Mellon returned $923 million to common shareholders through dividends and share repurchases in the quarter.

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