Bank of New York Mellon Corp (BK) Reports Q3 2023 Earnings of $1.0 Billion, EPS up 213%
Bank of New York Mellon Corp (NYSE:BK) reported Q3 2023 earnings of $1.0 billion, or $1.22 per common share.
The company's revenue increased by 2% and net interest revenue rose by 10%.
Assets under custody and/or administration (AUC/A) increased by 8% to $45.7 trillion.
The company returned $783 million to common shareholders, including $450 million of common share repurchases.
Bank of New York Mellon Corp (NYSE:BK) released its Q3 2023 earnings report on October 17, 2023, revealing a net income applicable to common shareholders of $956 million, a 200% increase from Q3 2022. The company's adjusted net income applicable to common shareholders was $992 million, a 1% increase from the same period last year. The diluted earnings per common share stood at $1.22, a 213% increase from Q3 2022.
Financial Performance
The company reported total revenue of $4.4 billion, a 2% increase, with net interest revenue increasing by 10%. However, fee revenue remained flat. Total noninterest expense of $3.1 billion decreased by 16%, or increased by 3% excluding notable items. The company's assets under custody and/or administration (AUC/A) increased by 8% to $45.7 trillion, and assets under management (AUM) increased by 3% to $1.8 trillion.
CEO Commentary
Robin Vince, President and Chief Executive Officer, commented, BNY Mellon delivered solid financial performance and continued progress on the steady transformation of our company. We generated a return on tangible common equity of 20% on $4.4 billion of revenue, up 2% year-over-year, and a pre-tax margin of 29% in the third quarter.
Capital and Liquidity
The company returned $783 million to common shareholders, including $450 million of common share repurchases. The return on common equity (ROE) was 11%, and the return on tangible common equity (ROTCE) was 20%. The Common Equity Tier 1 (CET1) ratio was 11.4%, and the Tier 1 leverage ratio was 6.1%.
Business Segment Highlights
In the Securities Services segment, total revenue increased by 1%, while income before taxes decreased by 7%. In the Market and Wealth Services segment, total revenue increased by 6%, but income before taxes remained flat. In the Investment and Wealth Management segment, total revenue decreased by 4%, but income before taxes increased to $164 million from $(497) million.
Looking Ahead
Bank of New York Mellon Corp (NYSE:BK) continues to focus on driving higher underlying growth and enhanced operational efficiency. The company is also committed to delivering attractive profitability and capital returns to its shareholders while further strengthening its regulatory capital and liquidity ratios.
This article first appeared on GuruFocus.
