2023-07-18 09:10:07 ET
Bank of New York Mellon ( NYSE: BK ) topped the average analyst estimate for second-quarter earnings as the higher interest rate environment continued to benefit the lender.
Q2 adjusted EPS of $1.38, exceeding the $1.22 consensus estimate, climbed from $1.13 in Q1 and from $1.15 in the year-ago quarter.
Revenue of $4.45B, vs. $4.36B expected, rose from $4.36B in the prior quarter and from $4.25B in Q2 of last year.
During the quarter, "we saw particular strength in Clearance and Collateral Management and Depositary Receipts, and our recently launched solutions, such as Pershing’s innovative Wove advisory platform, give us confidence that revenues will build over time,” President and CEO Robin Vince said in a statement.
Fee revenue of $3.26B advanced 3% sequentially and slipped 2% Y/Y.
Net interest revenue came in at $1.10B, down from $1.13B in Q1 and up from $824M a year before.
BK edged down 0.8% in premarket trading.
Provision for credit losses was $270M compared with $260M in Q1 and $231M in Q2 2022.
Noninterest expense of $3.11B vs. $3.10B in Q1 and $3.11B in Q2 2022.
Assets under custody and/or administration totaled $46.9T at the end of Q2, up 1% from the previous quarter and 9% from the year-earlier period, thanks to market appreciation, client inflows and net new business.
Conference call at 10:30 a.m. ET.
Earlier, the trust bank raised its quarterly dividend by 13.5% to $0.42 a share.
More on BNY Mellon:
- SA's Quant system rates BK a Buy
- Bank of New York Mellon on Catalyst Watch Positive at Citi ahead of Q2 earnings
- Is BNY Mellon A Good Buy Ahead Of Its Q2 Results?
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BNY Mellon Q2 profit tops consensus, helped by higher rates