Bank of New York (NYSE: BK) reported Q3 EPS of $0.98, $0.04 better than the analyst estimate of $0.94. Revenue for the quarter came in at $3.8 billion versus the consensus estimate of $3.83 billion.

CEO Commentary

“Our third quarter results reflect the resilience of our business model despite the significant impact of lower rates and associated money market fee waivers, as we reported EPS of 98 cents, down 8 percent year on year. Our operating margin was 30 percent as we controlled costs, and our return on tangible common equity was solid at 17 percent,” Todd Gibbons, Chief Executive Officer, said.

“Our pipeline is strong as we continue to win new mandates by differentiating ourselves with clients and addressing a broader set of their needs. While remaining focused on improving organic fee growth, we are also managing structural expenses by investing in automation and executing other efficiency programs to enhance the client experience. Our business model continues to generate significant excess capital. We look forward to recommencing share buybacks as soon as possible, which we expect to be meaningfully accretive to EPS,” Mr. Gibbons added.

“While uncertainty lies ahead in terms of how the pandemic evolves and its impact on the global economy, I believe the underlying strength of our franchise will become more apparent next year, as we expect to have most of the run-rate impact of lower rates and associated money market fee waivers in our earnings. At that point, we can start to more clearly demonstrate the progress we are making around our key priorities of driving organic growth, optimizing the balance sheet and executing on our efficiency priorities,” Mr. Gibbons further noted.

“I am also proud that our employees across the company have worked diligently throughout this unprecedented time to provide great client service and am confident the team we have in place will continue to navigate the challenges we face. We entered this crisis from a position of strength and have an unwavering focus on building ever greater value for all our stakeholders going forward,” Mr. Gibbons concluded.

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