Bank of New York Mellon rise on strong Q2 earnings beat
The company posted adjusted earnings per share of $1.94, beating analyst estimates of $1.75, while revenue reached $5.03 billion, surpassing the consensus forecast of $4.78 billion. Total revenue increased 9% YoY and for the first time exceeded $5 billion in a quarter.
BNY Mellon (NYSE:BK) delivered a pre-tax operating margin of 37% and return on tangible common equity of 27.8%, reflecting significant positive operating leverage. The bank's assets under custody and/or administration (AUC/A) increased 13% YoY to $55.8 trillion, while assets under management (AUM) rose 3% to $2.1 trillion.
"BNY delivered a strong performance in the second quarter. Total revenue was up 9% year-over-year and for the first time exceeded $5 billion in a quarter," said Robin Vince, Chief Executive Officer. "We also generated another quarter of significant positive operating leverage which resulted in an improved pre-tax margin of 37% and an ROTCE of 28%."
Net interest income grew 17% YoY to $1.2 billion, primarily due to reinvestment of maturing securities at higher yields and balance sheet growth. Fee revenue increased 7%, reflecting net new business, higher market values, and increased client activity.
The bank maintained a solid capital position with a Common Equity Tier 1 ratio of 11.5% and returned $1.2 billion to shareholders through dividends and share repurchases during the quarter.
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