BNY Mellon posts higher Q2 profit on strong client activity

Bank of New York Mellon Corp

Bank of New York Mellon Corp

BNY

0.00


Overview

  • US custody bank's Q2 revenue rose 13% yr/yr to $5.7 bln

  • Diluted EPS for Q2 increased 27% yr/yr to $2.45

  • Company returned $1.5 bln to shareholders via dividends and buybacks


Outlook

  • Company did not provide specific guidance for current or future quarters


Result Drivers

  • BROAD-BASED SEGMENT GROWTH - Co said revenue growth was driven by increases across Securities Services, Market and Wealth Services, and Investment and Wealth Management

  • HEALTHY CLIENT ACTIVITY - Co attributed results to healthy client activity and record sales

  • ONGOING INVESTMENTS - Co cited continuous investments and strategic actions as supporting financial performance


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

$5.70 bln

Q2 EPS

$2.45

Q2 Net Income applicable to common shareholders

$1.696 bln

Q2 Net Interest Income

$1.45 bln

Q2 CET1 Capital Ratio

11.00%

Q2 Fee Revenue

$4.04 bln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the investment management & fund operators peer group is "buy"

  • Wall Street's median 12-month price target for Bank of New York Mellon Corp is $160.00, about 3.6% above its July 14 closing price of $154.50

  • The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago


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