BNY Mellon reports US$983 million third quarter earnings
October 19, 2017

The Bank of New York has just reported its third quarter 2017 results. Highlights include the following.

Revenue

Investment management and performance fees increased 5 percent.

Investment services fees increased 1 percent; Asset servicing fees increased 4 percent.

Net interest revenue increased 8 percent.

Expenses

Total non-interest expense up less than 1 percent year-over-year.

Capital

Returned over $900 million to shareholders through share repurchases and dividends.

Return on common equity of 11 percent; Return on tangible common equity of 22 percent.

Key points in greater depth

Asset servicing fees increased 4 percent year-over-year and 2 percent sequentially. The year-over-year increase primarily reflects higher equity market values and net new business, including growth in collateral management, partially offset by the impact of downsizing the retail UK transfer agency business. The sequential increase was primarily driven by the favourable impact of a weaker US dollar and higher equity market values.

Clearing services fees increased 10 percent year-over-year and decreased 3 percent sequentially. The year-over-year increase primarily reflects higher money market fees and growth in long-term mutual fund assets. The sequential decrease primarily reflects lower clearance volumes.

Issuer services fees decreased 15 percent year-over-year primarily reflecting fewer corporate actions, lost business and lower fees due to a reduction in shares outstanding in certain Depositary Receipts programmes, partially offset by higher Corporate Trust revenue. The 20 percent sequential increase primarily reflects seasonality in Depositary Receipts revenue and higher Corporate Trust revenue.

Treasury services fees increased 3 percent year-over-year and 1 percent sequentially, primarily reflecting higher payment volumes, partially offset by higher compensating balance credits provided to clients, which reduce fee revenue and increase net interest revenue.

Investment management and performance fees increased 5 percent year-over-year and 3 percent sequentially, primarily reflecting higher equity market values and money market fees. The year-over-year increase also reflects higher performance fees. The sequential increase also reflects the favourable impact of a weaker US dollar. Changes in currency rates had an insignificant impact on the growth rate of investment management and performance fees on a year-over-year basis.





This site, like many others, uses small files called cookies to customize your experience. Cookies appear to be blocked on this browser. Please consider allowing cookies so that you can enjoy more content across globalcustody.net.

How do I enable cookies in my browser?

Internet Explorer
1. Click the Tools button (or press ALT and T on the keyboard), and then click Internet Options.
2. Click the Privacy tab
3. Move the slider away from 'Block all cookies' to a setting you're comfortable with.

Firefox
1. At the top of the Firefox window, click on the Tools menu and select Options...
2. Select the Privacy panel.
3. Set Firefox will: to Use custom settings for history.
4. Make sure Accept cookies from sites is selected.

Safari Browser
1. Click Safari icon in Menu Bar
2. Click Preferences (gear icon)
3. Click Security icon
4. Accept cookies: select Radio button "only from sites I visit"

Chrome
1. Click the menu icon to the right of the address bar (looks like 3 lines)
2. Click Settings
3. Click the "Show advanced settings" tab at the bottom
4. Click the "Content settings..." button in the Privacy section
5. At the top under Cookies make sure it is set to "Allow local data to be set (recommended)"

Opera
1. Click the red O button in the upper left hand corner
2. Select Settings -> Preferences
3. Select the Advanced Tab
4. Select Cookies in the list on the left side
5. Set it to "Accept cookies" or "Accept cookies only from the sites I visit"
6. Click OK

The Bank of New York has just reported its third quarter 2017 results. Highlights include the following.

Revenue

Investment management and performance fees increased 5 percent.

Investment services fees increased 1 percent; Asset servicing fees increased 4 percent.

Net interest revenue increased 8 percent.

Expenses

Total non-interest expense up less than 1 percent year-over-year.

Capital

Returned over $900 million to shareholders through share repurchases and dividends.

Return on common equity of 11 percent; Return on tangible common equity of 22 percent.

Key points in greater depth

Asset servicing fees increased 4 percent year-over-year and 2 percent sequentially. The year-over-year increase primarily reflects higher equity market values and net new business, including growth in collateral management, partially offset by the impact of downsizing the retail UK transfer agency business. The sequential increase was primarily driven by the favourable impact of a weaker US dollar and higher equity market values.

Clearing services fees increased 10 percent year-over-year and decreased 3 percent sequentially. The year-over-year increase primarily reflects higher money market fees and growth in long-term mutual fund assets. The sequential decrease primarily reflects lower clearance volumes.

Issuer services fees decreased 15 percent year-over-year primarily reflecting fewer corporate actions, lost business and lower fees due to a reduction in shares outstanding in certain Depositary Receipts programmes, partially offset by higher Corporate Trust revenue. The 20 percent sequential increase primarily reflects seasonality in Depositary Receipts revenue and higher Corporate Trust revenue.

Treasury services fees increased 3 percent year-over-year and 1 percent sequentially, primarily reflecting higher payment volumes, partially offset by higher compensating balance credits provided to clients, which reduce fee revenue and increase net interest revenue.

Investment management and performance fees increased 5 percent year-over-year and 3 percent sequentially, primarily reflecting higher equity market values and money market fees. The year-over-year increase also reflects higher performance fees. The sequential increase also reflects the favourable impact of a weaker US dollar. Changes in currency rates had an insignificant impact on the growth rate of investment management and performance fees on a year-over-year basis.



Free subscription - selected news and optional newsletter
Premium subscription
  • All latest news
  • Latest special reports
  • Your choice of newsletter timing and topics
Full-access magazine subscription
  • 7-year archive of news
  • All past special reports
  • Newsletter with your choice of timing and topics
  • Access to more content across the site