Hot Banking Stock to Watch: Bank of New York Mellon Corp (NYSE: BK)

Free $100 Forex No-Deposit Bonus

Bank of New York Mellon Corp (NYSE: BK) stock rose over 1.9% on 16th July, 2021 (as of 13:25:41 UTC-4 · USD; Source: Google finance) after the company posted better than expected results for the second quarter of FY 21. Fee revenue grew 4% mainly due to the positive impact of higher markets, the favorable impact of a weaker U.S. dollar and higher client volumes, partially offset by money market fee waivers. Excluding money market fee waivers, fee revenue increased 10%. Other revenue declined mainly due to lower gains related to seed capital investments. Net interest revenue declined 17% mainly due to lower interest rates on interest-earning assets. This was partially offset by the benefit of lower funding and deposit rates, lower debt balances, a larger securities portfolio and higher deposit balances. The noninterest expense rose 3% primarily due to the unfavorable impact of a weaker U.S. dollar, investments in efficiency and growth initiatives and higher revenue-related expenses.

Moreover, Assets under custody and/or administration (“AUC/A”) of $45.0 trillion, increased 21%, primarily reflecting higher market values, net new business and the favorable impact of a weaker U.S. dollar. Assets under management (AUM) of $2.3 trillion, increased 18%, primarily reflecting higher market values, the favorable impact of a weaker U.S. dollar (principally versus the British pound) and net inflows.

BK in the second quarter of FY 21 has reported the adjusted earnings per share of $1.13, beating the analysts’ estimates for the adjusted earnings per share of $1.02, according to the Zacks Consensus Estimate. The company had reported 1 percent fall in the adjusted revenue growth to $3.96 billion in the second quarter of FY 21, beating the analysts’ estimates for revenue by 1.24%. Investment Services’ total revenue declined 4% and Investment and Wealth Management’s total revenue grew 13% during the second quarter.

Additionally, during the second quarter, the company has repurchased 12.8 million common shares for $618 million. The company has paid dividends of $273 million to common shareholders (including dividend-equivalents on share-based awards). The company has authorized to repurchase up to $6.0 billion of common shares through 4Q22 and increased quarterly dividend 10% to $0.34 per common share in 3Q21. The company posted return on common equity (ROE) of 10% and Return on tangible common equity (ROTCE) of 19%. The company’s Common Equity Tier 1 (CET1) ratio is 12.6%, Tier 1 leverage ratio of 6.0% and Average liquidity coverage ratio (LCR) of 110%.

Copyright © 2021. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.