8-KOther EventsExhibits & Filings

Bank of New York Mellon Corp 8-K Report, Corporate Update (Mar 14, 2013)

Filed March 14, 2013For Securities:BKBK-PKBNYBNY-PK

Summary

The Bank of New York Mellon Corporation (BK) filed an 8-K on March 14, 2013, to announce positive developments regarding its capital planning and shareholder returns. The Federal Reserve did not object to BNY Mellon's 2013 capital plan, which is a significant regulatory hurdle for large financial institutions. This non-objection from the Federal Reserve signals confidence in the company's financial stability and capital adequacy. Following this approval, BNY Mellon's Board of Directors has authorized a substantial share repurchase program of up to $1.35 billion, effective from the second quarter of 2013 through the first quarter of 2014. This new plan supersedes all prior repurchase authorizations. Additionally, the capital plan includes a proposed 15% increase to the quarterly common stock dividend, to be considered by the Board in April 2013. These actions collectively demonstrate BNY Mellon's commitment to returning capital to shareholders and reflect management's positive outlook.

Key Highlights

  • 1Federal Reserve did not object to BNY Mellon's 2013 capital plan submitted as part of the Comprehensive Capital Analysis and Review (CCAR).
  • 2Board of Directors approved a new share repurchase program of up to $1.35 billion.
  • 3Share repurchases are authorized to begin in Q2 2013 and continue through Q1 2014.
  • 4The new share repurchase plan replaces all previous authorizations.
  • 5The 2013 capital plan includes a proposed 15% increase in the quarterly common stock dividend.
  • 6The dividend increase is expected to be considered by the Board in April 2013.
  • 7The attached press release dated March 14, 2013, contains the details of these announcements.

Frequently Asked Questions

The Federal Reserve's non-objection to BNY Mellon's 2013 capital plan, as part of the Comprehensive Capital Analysis and Review (CCAR), is a critical regulatory approval. It indicates that the Federal Reserve is satisfied with the bank's capital levels and its ability to withstand stressful economic conditions, which is essential for financial stability and allows the company to proceed with its capital distribution plans.

BNY Mellon's Board of Directors has approved a new share repurchase program allowing the company to buy back up to $1.35 billion of its common stock. This program is set to begin in the second quarter of 2013 and will run through the first quarter of 2014. The repurchases can be executed through various methods, including open market purchases.

BNY Mellon's 2013 capital plan includes a proposal for a 15% increase to its quarterly common stock dividend. The Board of Directors is expected to formally consider and vote on this dividend increase at their April 2013 meeting.

Yes, the newly approved share repurchase program of up to $1.35 billion explicitly replaces all previously authorized share repurchase plans. Investors should focus on this new authorization for future buyback activities.