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Earnings Review and Free Research Report: Bank of New York Mellon Reported Better than Expected Revenue and Earnings Results

Research Desk Line-up: Moelis Post Earnings Coverage

LONDON, UK / ACCESSWIRE / July 26, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on The Bank of New York Mellon Corp. (NYSE: BK) ("BK"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=BK, following the Company's announcement of its financial results on July 20, 2017, for the second quarter fiscal 2017. The Company's total assets under management (AUM) increased 6% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Asset Management industry. Pro-TD has currently selected Moelis & Company (NYSE: MC) for due-diligence and potential coverage as the Company reported on July 24, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Moelis when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on BK; also brushing on MC. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=BK

http://protraderdaily.com/optin/?symbol=MC

Earnings Reviewed

For three months ended June 30, 2017, BK's total revenue increased 4.8% on a y-o-y basis to $3.96 billion. The total revenue surpassed analysts' expectations of $3.85 billion.

During Q2 FY17, BK's non-interest expenses increased 1% on a y-o-y basis to $2.66 billion. The increase was mainly due to higher professional, legal and other purchased services, and software and litigation expenses, and was partially offset by the impact of a stronger US dollar and lower net occupancy expense.

For the reported quarter, BK's net income increased 12.2% on a y-o-y basis to $926 million. During Q2 FY17, BK's diluted EPS increased 17.3% on a y-o-y basis to $0.88. The diluted EPS surpassed analysts' expectations of $0.84.

On July 17, 2017, BK appointed Charles W. Scharf as the Company's Chief Executive Officer (CEO).

On July 20, 2017, BK's Board of Directors declared a quarterly common stock dividend of $0.24 per share payable on August 11, 2017, to shareholders of record as of the close of business on August 01, 2017. During Q2 FY17, the Company also repurchased 11 million common shares for $506 million.

Segment Details

Fee and Other Revenue -For the reported quarter, BK's fee and other revenue segment's total revenue increased 4% to $3.12 billion on a y-o-y basis. The segment's asset pricing fee increased 1% to $1.09 billion on a y-o-y basis, attributable to net new business, including growth of collateral management solutions and higher equity market values.

During Q2 FY17, BK's fee and other revenue segment's clearing services fee increased 13% to $394 million on a y-o-y basis, primarily due to higher money market fees and growth in long-term mutual fund assets. For the reported quarter, the segment's issuer services fee increased 3% to $241 million on a y-o-y basis, reflecting higher payment volumes.

For the reported quarter, BK's fee and other revenue segment's investment management and performance fees increased 6% to $140 million on a y-o-y basis, primarily due to higher market values, money market fees and performance fees.

Net Interest Revenue - During Q2 FY17, BK's net interest revenue increased 7.8% to $826 million on a y-o-y basis. The increase was primarily driven by higher interest rates and lower premium amortization. For the reported quarter, the adjusted net interest revenue increased 7% to $838 million on a y-o-y basis.

For the reported quarter, BK's net interest margin increased 17 basis points to 1.14% on a y-o-y basis, and the adjusted net interest margin increased 18 basis points to 1.16% on a y-o-y basis.

Balance Sheet

As on June 30, 2017, BK's total AUM increased 6% on a y-o-y basis to $1.77 trillion. The increase was mainly due to higher market values and net inflows. For the reported quarter, the Company's assets under custody increased 5% on a y-o-y basis to $31.1 trillion.

During Q2 FY17, BK's common equity tier 1 ratio decreased 20 basis points on a sequential basis to 11.8%, and the Company's non-GAAP common equity tier 1 ratio decreased 10 basis points on a sequential basis to 11.4%. For the reported quarter, the Company's tier 1 capital ratio decreased 30 basis points on a sequential basis to 14.1%.

For the reported quarter, BK's return on tangible common equity ratio increased 152 basis points on a y-o-y basis to 21.9%. During Q2 FY17, BK's SLR ratio decreased 10 basis points on a sequential basis to 6.2%, and the Company's non-GAAP SLR ratio increased 10 basis points on a sequential basis to 6%.

Credit Quality

During Q2 FY17, BK's nonperforming assets decreased 6.5% on a sequential basis to $100 million. The decrease was due to lower other assets and other residential mortgages.

For the reported quarter, BK's allowance for loan losses increased 4.4% to $165 million on a y-o-y basis.

Stock Performance

On Tuesday, July 25, 2017, the stock closed the trading session at $53.73, slightly rising 0.49% from its previous closing price of $53.47. A total volume of 3.63 million shares has exchanged hands. Bank of New York Mellon's stock price soared 13.76% in the last three months, 20.39% in the past six months, and 37.59% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 13.40%. The stock is trading at a PE ratio of 15.96 and has a dividend yield of 1.41%. At Tuesday's closing price, the stock's net capitalization stands at $56.45 billion.

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SOURCE: Pro-Trader Daily