Wednesday, October 24, 2012

BNY Mellon Earnings Review: Multi-Year High!

BNY Mellon reported QE September 2012 financial results on October 17

CEO Gerald Hassell delivered a multi-year, if not all-time, high for earnings per share of $0.61. This is an impressive turnaround after the prior quarter was a disappointing $0.39, which included a litigation charge of $212 million after-tax or an $0.18 loss per share. The slow, long-term decline in financial performance was reversed this quarter. Financial position is stable with a strong capital position. Risk management appears very good.

At QE 9-30-12 I have rated Bank of New York Mellon a "B" on a scale of A+ to G-. This is no change in the rating from the prior QE 6-30-12. The median rating is "D" and the average rating at QE 6-30-12 was "C". Financial position strength is weighted more than financial performance. The QE 6-30-12 bank ratings review is here.

“We are pleased to report solid earnings growth this quarter, led by the strength of Investment Management, which recorded its twelfth consecutive quarter of long-term inflows. New business trends for Asset Servicing were also strong, as we recorded the best quarter in new AUC wins since 2008, a testament to the breadth and quality of our capabilities. We remain focused on reducing expense growth through our operational excellence initiatives. During the quarter we completed the client integration for our BHF Asset Servicing acquisition in Germany, an example of our progress in integrating systems and retiring legacy platforms,” said Gerald L. Hassell, chairman, president and chief executive officer of BNY Mellon.


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