• BNY Mellon’s assets under management hit $2.02 trillion, marking a 5.5% increase year-on-year, and aligning with the estimates.
• The bank recorded total deposits worth $309.02 billion, presenting an 8.9% quarter-on-quarter growth, well beyond the estimated value of $280.16 billion.
• The average total deposits also exceeded estimates at $279 billion.
• There was a 10% increase in net loans quarter-on-quarter, reaching $73.29 billion, higher than the $66.67 billion estimated.
• Despite the 4.7% year-on-year increase, assets under administration failed to meet estimates as they stood at $48.8 trillion.
• Both the adjusted and unadjusted EPS values beat expectations at $1.29 and $1.25 respectively.
• Net interest revenue was reported at $1.04 billion, a decrease of 7.8% year-on-year, however, it still surpassed the estimated $1.02 billion.
• Even though the net interest margin declined year-on-year to 1.19%, it was close to the predicted 1.21%.
• The provision for credit losses remained unchanged year-on-year at $27 million, significantly higher than the estimated $8.18 million.
• The common equity Tier 1 ratio was reported at 10.8%, falling short of the estimated 11.6%.
• The liquidity coverage ratio remained consistent quarter-on-quarter at 117%.
• Adjusted and unadjusted revenue both exceeded estimates at $4.53 billion.
• Total fee and other revenue surpassed estimates at $3.49 billion, driven by increased market values and client activity.
• Clearance and collateral management fees, issuer services fees, and treasury services fees all outperformed their respective estimates.
• Non-interest expenses displayed a slight increase of 2.5% year-on-year to reach $3.18 billion.
• The return on equity performed better than estimated at 10.7%.
• The provision for credit losses was driven up to $27 million, largely due to reserve increases related to commercial real estate exposure.
A look at Bank Of New York Mellon Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have provided a favorable long-term outlook for Bank of New York Mellon based on its impressive Smart Scores. The company has received high ratings in value, momentum, and resilience, indicating strong fundamentals and a solid financial position. With a focus on asset and wealth management, BNY Mellon is positioned to deliver sustainable growth over the long term.
Being rated highly in value and momentum signifies that BNY Mellon offers shareholders a compelling investment opportunity with growth potential. Moreover, the company’s resilience score underscores its ability to weather market fluctuations and economic downturns effectively. With a diverse range of financial services catering to various clients, BNY Mellon is well-positioned for long-term success in the ever-evolving financial industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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