Bank Of New York Mellon Shares Up After Q4 Earnings Beat, Gears Up To Mark 240th Anniversary In Banking Business
Portfolio Pulse from Nabaparna Bhattacharya
The Bank Of New York Mellon Corporation (NYSE:BK) reported Q4 2023 earnings with a 2% Y/Y adjusted revenue increase to $4.461 billion, surpassing the $4.29 billion consensus. Net interest revenue rose 4% Y/Y to $1.10 billion, while fee revenue remained flat at $3.214 billion. Noninterest expenses increased by 20.4% Y/Y to $3.868 billion, and the adjusted pre-tax operating margin decreased to 28% from 31%. The company's provision for credit losses was $84 million, mainly due to commercial real estate exposure. Adjusted EPS was $1.28, beating the $1.13 consensus. AUM grew by 8% to $2 trillion, and the CET1 ratio improved to 11.6%. The company declared a quarterly dividend of $0.42 per share and highlighted capital returns of $3.9 billion to shareholders in 2023. BK shares rose 3.85% to $54.76.
January 12, 2024 | 2:59 pm
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POSITIVE IMPACT
Bank of New York Mellon surpassed Q4 earnings expectations with higher revenues and EPS, declared a dividend, and showed strong capital returns, leading to a share price increase.
The positive earnings report, with revenue and EPS exceeding expectations, indicates strong financial performance, which typically leads to increased investor confidence and a positive short-term impact on the stock price. The declaration of a dividend and the mention of significant capital returns to shareholders further reinforce the positive outlook for the stock.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100