Summary
The Bank of New York Mellon Corporation (BK) announced on June 28, 2018, that it received no objection from the Federal Reserve regarding its 2018 capital plan. This positive regulatory outcome allows the company to proceed with its capital distribution plans for the upcoming year. Key initiatives approved include a significant share repurchase program and an increase in quarterly dividends. Specifically, BK's Board of Directors authorized the repurchase of up to $2.4 billion of common stock over four quarters, starting in Q3 2018. Additionally, the company plans to increase its quarterly cash dividend by approximately 17%, from $0.24 to $0.28 per share, subject to further Board approval. These actions signal confidence in the company's financial strength and commitment to returning capital to shareholders.
Key Highlights
- 1Federal Reserve did not object to BK's 2018 capital plan.
- 2Board approved a share repurchase program of up to $2.4 billion.
- 3Share repurchases are authorized for a four-quarter period beginning Q3 2018.
- 4New share repurchase plan replaces all prior authorizations.
- 5Planned approximately 17% increase in quarterly cash dividend, from $0.24 to $0.28 per share.
- 6Dividend increase subject to further Board approval and commencing as early as Q3 2018.
- 7This 8-K filing contains forward-looking statements regarding capital distributions.