Bank of New York (BK) Tops Q1 EPS by 10c, Revenues Beat

Bank of New York (NYSE: BK) reported Q1 EPS of $0.97, $0.10 better than the analyst estimate of $0.87. Revenue for the quarter came in at $3.92 billion versus the consensus estimate of $3.85 billion.

CEO Commentary

"We delivered a strong quarter and continue to see momentum across our businesses, despite the ongoing impact of low interest rates. In the first quarter of 2021, on a year-over-year basis, we delivered a 1% increase in fee revenue, or 6% excluding the impact of money market fee waivers. This included strong organic growth driven by new business and higher activity levels. Our business model has proven to be resilient and operating margin was essentially flat at 29%, compared to the first quarter of 2020 when we saw exceptional pandemic-related volumes and volatility," Todd Gibbons, Chief Executive Officer, said.

Mr. Gibbons added, "Our Pershing, Asset Servicing and foreign exchange businesses benefited from healthy client activity and market levels. Investment and Wealth Management also benefited from market appreciation, as well as continued investment in our products and services. In addition, we gained traction in the data and analytics space, Clearing and Collateral Management and Treasury Services, driven by ongoing investments in innovation and digitization."

"We were pleased to resume share repurchases in the first quarter, and look forward to the implementation of the stress capital buffer regime, which will provide more flexibility in returning our excess capital to our shareholders. As we move from a period of resilience to a period of recovery and growth, there is a confluence of factors that are encouraging indicators for economic momentum. This includes progress on vaccine deployment, extraordinary levels of consumer savings, and monetary stimulus and further government spending – all of which are likely to accelerate GDP growth," Mr. Gibbons concluded.

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

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