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BNY Mellon (BK) Set to Expand Collaboration With SNB Capital

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The Bank of New York Mellon Corporation BK is expanding its collaboration with SNB Capital (the Securities, Asset Management and Investment Banking arm of Saudi National Bank, the Kingdom of Saudi Arabia’s largest commercial bank). SNB Capital and BNY Mellon announced a transformative data management solutions collaboration in Saudi Arabia to help build a robust, market-leading and inclusive capital market ecosystem.

Following the announcement of the news, shares of BNY Mellon lost 1.8%. However, the next day, the company’s shares gained 2.5%.

Notably, in October 2020, NCB Capital (which is now SNB Capital, following the merger with Samba Capital) entered an alliance with BNY Mellon to address the demand to adopt global best practices of segregated asset management, brokerage and custody functions, following the launch of the Kingdom’s Independent Custody Model in 2017.

In August 2021, BNY Mellon and SNB Capital began arranging and providing integrated world-class global securities service capabilities to institutional and large asset owners based in the Kingdom of Saudi Arabia.

Thus, building on this strategic alliance, SNB Capital will now deploy BNY Mellon’s data platform within its IT infrastructure in the Kingdom.

BNY Mellon’s data platform enables organizations to transform their data landscapes by centralizing and effectively managing complex investment assets. Capabilities include providing user-centric solutions designed to deliver accurate and timely data, gauge risk exposure, and provide system-wide security via a centralized data repository.

The latest collaboration is a significant development for Saudi Arabia’s financial sector. It is set to deliver institutional clients of SNB Capital a single, unified solution for local and global assets.

Akash Shah, the chief growth officer of BNY Mellon, said, “As capital markets shift towards a digital future, we are delighted to further our alliance with SNB Capital by providing a future-ready data analytics solution to help build the leading global capital markets infrastructure in the Kingdom and drive growth. Our collaboration combines the strengths of leading institutions to support the demands of Saudi Arabia’s growing financial sector and vision of a sustainable diversified economic ecosystem.”

The CEO of SNB Capital, Rashed Sharif, commented, “Our leading role in growing and developing the Kingdom’s capital markets and the financial sector in line with Vision 2030 is highly dependent on having the right technology, capabilities and partners. This deployment reinforces our top market position when it comes to serving the complex data management and reporting needs of institutions and large asset owners in the Kingdom. The strength of our partnership with BNY Mellon will be a driver for continued growth in our Custody and Asset Servicing business.”

Over the past year, shares of BNY Mellon have gained 41.3% compared with 29.2% growth of the industry.

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Currently, BNY Mellon carries a Zacks Rank #3 (Hold).

A couple of better-ranked stocks from the same space are Fifth Third Bancorp FITB and Wells Fargo & Company WFC. Both Fifth Third Bancorp and Wells Fargo currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fifth Third Bancorp’s current-year earnings estimates have been revised upward by 1.9% over the past 60 days. Its shares have gained 53.3% in the past year.

The Zacks Consensus Estimate for Wells Fargo’s 2021 earnings has been revised marginally upward over the past 60 days. Its shares have gained 57.6% in the past year.


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The Bank of New York Mellon Corporation (BK) : Free Stock Analysis Report

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