Summary
The Bank of New York Mellon Corporation (BK) announced on March 11, 2015, that its 2015 capital plan received a non-objection from the Federal Reserve's Board of Governors as part of the Comprehensive Capital Analysis and Review (CCAR). This is a significant positive development, indicating the Federal Reserve's confidence in BNY Mellon's capital adequacy and risk management practices. This approval allows the company to proceed with its capital return strategy. Following the CCAR non-objection, BNY Mellon's Board of Directors approved a new share repurchase program totaling up to $2.4 billion of common stock over five quarters, commencing in Q2 2015 through Q2 2016. An additional $700 million in common stock repurchases may occur if the company issues $1 billion of noncumulative perpetual preferred stock. The company's quarterly dividend of $0.17 per share remains unchanged. Additionally, a summary of BNY Mellon's Dodd-Frank Act stress test results, under a severely adverse scenario, was made available on the company's website.
Key Highlights
- 1Federal Reserve did not object to BNY Mellon's 2015 capital plan submitted for CCAR.
- 2Board of Directors approved a new common stock repurchase program of up to $2.4 billion.
- 3Repurchase program is set to commence in Q2 2015 and conclude in Q2 2016 (a five-quarter period).
- 4Potential for an additional $700 million in share repurchases contingent on issuing $1 billion in preferred stock.
- 5Quarterly common stock dividend remains stable at $0.17 per share.
- 6Company-run Dodd-Frank stress test results under a severely adverse scenario were published on the company's website.