Bank of New York (BK) Tops Q4 EPS by 17c, Revs Miss

Bank of New York (NYSE: BK) reported Q4 EPS of $1.08, $0.17 better than the analyst estimate of $0.91. Revenue for the quarter came in at $3.7 billion versus the consensus estimate of $4 billion.

"Our fourth quarter results were impacted by new tax legislation and actions that we took to strengthen our firm for the longer term. Aside from these items, our results were favorably impacted by strong equity markets and the underlying businesses continued to show modest growth in revenues and profits," Charles W. Scharf, chairman and chief executive officer, said.

"We saw strength in asset servicing along with growth in collateral management and clearing services – areas where we see continued client demand. Additionally, our investment management business performed well due to an uplift from global equity markets, net inflows and improved investment performance fees, resulting from good investment performance, especially in fixed income," Mr. Scharf continued.

"The actions that resulted in the severance and other charges during the quarter are part of an ongoing review of our performance. We expect this review to be completed by our March 8th Investor Day where we intend to provide a comprehensive update of the review and have a broader discussion about our firm."

"In addition, we have thought how best to use the ongoing benefit from lower taxes and we believe that we have a responsibility to our employees to share the benefit, as well as to invest as much as we intelligently can to build the company for the future so we can serve our clients, communities, and shareholders for the long term. At this point, we are anticipating that the impact of the lower tax rate would be almost entirely offset by actions that we will take to reinvest this benefit in our employees and our business," Mr. Scharf concluded.

For earnings history and earnings-related data on Bank of New York (BK) click here.

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