01—Abstract
Summary
Summary of the 10-Q filed November 1, 2024. Cited figures are marked; the original filing is the authoritative source.
The Bank of New York Mellon Corporation (BK) reported solid financial results for the third quarter of 2024, demonstrating resilience and strategic growth.
Total revenue increased by 6% year-over-year, driven by a 5% rise in fee revenue, primarily due to higher market values, net new business, and improved foreign exchange revenue. Net interest income also saw a 3% increase, benefiting from improved investment securities portfolio yields and balance sheet growth. BNY Mellon's assets under custody and/or administration (AUC/A) grew by 14% to $52.1 trilliona, and assets under management (AUM) increased by 18% to $2.1 trillion, reflecting strong market performance and client inflows.
The company also continued its commitment to shareholders, increasing its quarterly cash dividend by 12% and repurchasing $725 millionb in common shares. Capital ratios remain robust, with a CET1 ratio of 11.9% under the Standardized Approach, well above regulatory minimums. The acquisition of Archer Holdco, LLC, closed on November 1, 2024, further strengthening BNY Mellon's managed account solutions capabilities.
02—Key points
Key Highlights
- Total revenue increased 6% year-over-year to $4.6 billion, driven by a 5% increase in fee revenue.
- Assets under custody and/or administration (AUC/A) grew 14% to $52.1 trillion.
- Assets under management (AUM) increased 18% to $2.1 trillion.
- Net income applicable to common shareholders was $1.11 billion ($1.50 per diluted share), with adjusted net income of $1.13 billion ($1.52 per diluted share).
- The company increased its quarterly cash dividend by 12% to $0.47 per share.
- Common share repurchases totaled $725 million in the quarter.
- BNY Mellon completed the acquisition of Archer Holdco, LLC on November 1, 2024.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed November 1, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Net Income | $1.18B$1.04B | +13.7% |
| EPS (Basic) | $1.51$1.23 | +22.8% |
| EPS (Diluted) | $1.50$1.23 | +22.0% |
| Shares Outstanding (Basic) | 736.55M777.81M | −5.3% |
| Shares Outstanding (Diluted) | 742.08M781.78M | −5.1% |
05—Questions
Frequently Asked Questions
What is the overall financial performance of BNY Mellon in Q3 2024?
BNY Mellon reported strong financial performance in Q3 2024, with total revenue up 6% year-over-year. Net income applicable to common shareholders was $1.11 billion, or $1.50 per diluted share. The company saw growth in both fee revenue and net interest income, alongside significant increases in AUC/A and AUM.
How did BNY Mellon manage capital and shareholder returns?
BNY Mellon demonstrated a strong commitment to capital management and shareholder returns. They increased the quarterly cash dividend by 12% and repurchased $725 million of common stock during the quarter. Capital adequacy remained strong, with a CET1 ratio of 11.9%.
What are the key drivers for the growth in assets under custody/administration and assets under management?
The significant growth in AUC/A (14%) and AUM (18%) was primarily driven by higher market values, client inflows, and net new business across BNY Mellon's business segments.
Are there any significant acquisitions or strategic moves mentioned?
Yes, BNY Mellon announced and completed the acquisition of Archer Holdco, LLC, a provider of managed account solutions, on November 1, 2024. This acquisition is expected to enhance their offerings in the asset and wealth management industry.
06—Continue