The Bank of New York Mellon Corporation (NYSE: BK) released its earnings report for the First Quarter of 2012. The Bank of New York Mellon Corporation (NYSE: BK)’s earnings per share were net 52c ($619 Million) a share versus analyst estimates of 50 cents a share.
The company displayed revenues of $3.65 billion a share for the last quarter, an increase of 3% over Q1.
The company posted unfavorable 4th quarter numbers (Earnings of $505 million or $0.42 per share) that showed heavy decrease in both revenue and stock price in general from the 3rd quarter numbers (Earnings of $651 Million or $0.53 per share).
The CEO commented that “We enjoyed solid sequential growth in investment management and services fees, as we benefited from new business wins and improved equity values. We are seeing the early results of our operational excellence initiatives as we generated significant positive operating leverage relative to the fourth quarter.”
One thing for investors to remember when purchasing stocks in banks is that a hefty amount of their revenue comes from mortgage loans, something that has been down in recent years due to the economic recession.
The Bank of New York Mellon Corporation declared a quarterly common stock dividend of $0.13 per common share. This cash dividend is payable on May 8, 2012 to shareholders of record as of the close of business on April 30, 2012. The company repurchased $371 million of shares during the first quarter.
While the company is doing so well right now, there are chances that the next quarter of BK will not show such positive results. In light of eight lawsuits now set before the company over immoral treatment of its investors through overcharging, the company could face a $1.5 billion bill that will not look good to any investor.
Basel III tier 1 common equity came in at 7.6%, a +150 basis point year over year increase. Assets under management grew 6% to $1.3 trillion.
The company was down close to 5% after the market close yesterday, but could be up on the positive results when the pre-market trading starts shortly.