- BNY Mellon’s 4Q Adjusted EPS beat estimates with $1.28 versus the estimated $1.10.
- The company saw net inflows of $1 billion, a significant improvement from the outflows of $8 billion in the previous quarter.
- Total deposits increased by 2.2% quarter on quarter, reaching $283.67 billion, which surpassed the estimate of $274.52 billion.
- Average deposits rose by 4.2% quarter on quarter to $273 billion, again beating the estimate of $259.22 billion.
- Net loans slightly increased by 0.8% quarter on quarter to $66.58 billion, slightly above the estimate of $65.6 billion.
- Assets under management grew by 7.1% year on year to $1.97 trillion, exceeding the estimate of $1.88 trillion.
- Assets under administration increased by 7.9% year on year to $47.8 trillion, slightly lower than the estimated $48.84 trillion.
- Net Interest revenue was $1.10 billion, surpassing the estimate of $975.3 million.
- The net interest margin was 1.26%, higher than the estimated 1.15%.
- The provision for credit losses was $84 million, significantly higher than the estimated $6.53 million.
- The common equity Tier 1 ratio was 11.6%, slightly higher than the estimated 11.4%.
- The liquidity coverage ratio dropped to 117% from 121% in the previous quarter.
- Revenue reached $4.31 billion, slightly beating the estimate of $4.3 billion.
- Total fee and other revenue increased by 12% year on year to $3.21 billion, slightly lower than the estimated $3.29 billion.
- Clearance and collateral management fees were $288 million, higher than the estimated $274 million.
- Issuer services fees were $285 million, surpassing the estimated $264.3 million.
- Treasury services fees were $179 million, higher than the estimated $173.9 million.
- Non-interest expenses increased by 20% year on year to $3.87 billion, significantly higher than the estimated $3.14 billion.
- The return on equity was 2.8%, lower than the estimated 7.01% and the previous year’s 5.7%.
- BNY Mellon stated that they exceeded the financial outlook they communicated at the beginning of the year and are announcing improved financial targets for their business segments and the firm overall in the medium term.
Bank Of New York Mellon on Smartkarma
According to Baptista Research on Smartkarma, Bank of New York Mellon Corp has been given an overall bullish outlook. In their report, titled “Bank of New York Mellon Corp: Initiation of Coverage – Business Strategy & Other Drivers“, the analysts discuss the company’s position as a global custodian and asset management giant. They note that despite recent market fluctuations, BNY Mellon saw a surge in deposit balances and ended the quarter on a positive note. The company’s liquidity platform, which manages over $1.3 trillion, also saw growth in most channels.
BNY Mellon’s strong performance has been attributed to its business strategy and other drivers, as highlighted by Baptista Research. The independent analysts on Smartkarma provide valuable insights on the company’s growth potential and future prospects. With their in-depth research and analysis, investors can make informed decisions about their investments in Bank of New York Mellon Corp.
A look at Bank Of New York Mellon Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma Smart Scores, the long-term outlook for Bank Of New York Mellon is looking positive. The company has received high scores of 4 for value, indicating that it is a financially sound investment, and 5 for both resilience and momentum, suggesting that it is well-equipped to handle challenges and has strong potential for growth in the future.
As a global financial services company, Bank Of New York Mellon offers a range of services including asset and wealth management, asset servicing, and treasury services. With a score of 3 for both dividend and growth, the company is also committed to providing returns to its shareholders while continuing to expand its business. Overall, based on the Smartkarma Smart Scores, Bank Of New York Mellon appears to be a solid choice for long-term investors seeking a stable and potentially lucrative investment in the financial sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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