BNY beats Q3 estimates but shares slip on margin concerns

Investing.com --On Thursday, The Bank of New York Mellon Corporation (NYSE: BNY) reported third quarter earnings that exceeded analyst expectations.

Shares of the financial services company slipped 1.58% in pre-market trading following the results.

The company posted adjusted earnings per share of $2.37, surpassing the analyst consensus of $2.26 by $0.11. Revenue reached $5.68 billion, beating estimates of $5.55 billion and marking a 12% increase from $5.08 billion in the same quarter last year.

The revenue growth was driven by broad-based gains across BNY’s platforms, with fee revenue rising 12% YoY to $4.08 billion and net interest income climbing 15% to $1.42 billion.

The company generated a pre-tax margin of 39% and return on tangible common equity of 29% for the quarter. Total noninterest expense increased 8% YoY to $3.49 billion, reflecting higher revenue-related expenses and investments, partially offset by efficiency savings.

"BNY delivered strong results in the third quarter. With broad-based growth across our platforms, we increased revenue by 12% year-over-year, delivering significant operating leverage and earnings per share growth of 24%," said Robin Vince, Chief Executive Officer.

Assets under custody and administration rose 10% YoY to $63.4 trillion, while assets under management increased 2% to $2.2 trillion. The company returned $1.4 billion to common shareholders during the quarter through $436 million in dividends and $937 million in share repurchases.

BNY’s common equity tier 1 ratio stood at 10.9% at quarter end, down from 11.0% in the prior quarter.

Original Article

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