The Bank of New York Mellon Corporation (NYSE:BK) released the results from the first quarter of the year, posting earnings of $661 million or 57 cents per share on revenue of $3.63 billion. Analysts had been expecting the bank to post earnings of 54 cents per share on revenue of $3.73 billion.
Comparing Bank of New York Mellon’s results
In the same quarter a year ago, The Bank of New York Mellon Corporation (NYSE:BK) posted net losses of $26 million or 23 cents per share. Excluding a one-time charge from the U.S. Tax Court’s disallowance of some foreign tax credits, last year’s first quarter earnings would have been 50 cents per share. In the fourth quarter of 2013, the bank posted earnings of $513 million or 44 cents per share. Excluding losses from an equity investment, earnings from that quarter would have been 54 cents per share.
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Breaking down Bank of New York Mellon’s earnings
The Bank of New York Mellon Corporation (NYSE:BK) reports that pretax earnings rose 12% year over year. Fees from investment services increased 3%, while assets under administration rose 6% year over year. The bank’s asset service revenue rose 4%, while its clearing services revenue increased 7%. The company’s investment management and performance fees increased 3% as well. Assets under management rose 14% to a new record of $1.6 trillion, while net long-term inflows reached $21 billion in the first quarter.
“Our performance benefitted from strength in Clearing Services, the eighteenth consecutive quarter of positive long-term inflows in Investment Management and the growing contribution from our Global Collateral Services and electronic foreign exchange initiatives,” said Gerald L. Hassell, chairman and CEO of BNY Mellon, in a statement. “The management team is focused on actively realigning the business model for the new regulatory environment, controlling expenses and generating strong returns on tangible common equity,” he added.
Bank of New York Mellon returns capital to shareholders
The bank posted an 18% return on tangible common equity for the quarter.
According to this morning’s release, The Bank of New York Mellon Corporation (NYSE:BK) repurchased 11.6 million common shares for a total of $375 million during the first quarter. The bank’s board of directors also approved a 13% increase in the common stock dividend and the repurchase of up to $1.74 billion worth of additional shares.
The Bank of New York Mellon Corporation (NYSE:BK) will host an earnings call with a live audio web cast at 8 a.m. Eastern. The webcast will be available on the bank’s website at BNYMellon.com