Friday, January 25, 2013

BNY Mellon Earnings Review: Another Average Quarter

BNY Mellon reported QE December 2012 financial results on January 16

BNY Mellon earnings per share were about average at $0.53, compared to the 13-quarter average of $0.51. Net revenues ($3.62 billion), operating income ($853 million), and net income ($646 million) were also near the long-term averages.

CEO Gerald Hassell continues a conservative strategy and financial position which minimizes volatility and surprises in the long-run. Financial position is stable with a strong capital position. Risk management appears very good. A share repurchase program continues in effect.

At QE 12-31-12 I have rated Bank of New York Mellon a "B+" on a scale of A+ to G-. This is an upgrade from "B" at the prior QE 9-30-12. The median rating is "D" and the average rating at QE 9-30-12 was "C". Financial position strength is weighted more than financial performance. The QE 9-30-12 bank ratings review is here.

“We are pleased to report strong year-over-year growth in fees in our Investment Management, Asset Servicing, Clearing and Treasury Services businesses. We benefited from the improvement in market values and, more importantly, from our relentless focus on generating organic growth with our broad client base. We are also driving our operational excellence initiatives to improve our efficiency and help mitigate the impact on our high margin revenues due to the low interest rate environment and tepid capital markets activity. Our balance sheet and capital ratios strengthened in 2012 even after giving effect to the repurchase of approximately $1.1 billion of our common shares in 2012,” said Gerald L. Hassell, chairman and chief executive officer of BNY Mellon.

“I wish to thank all of my colleagues across the company for their tremendous dedication and ongoing focus on improving our performance, delivering excellence to our clients and creating shareholder value,” added Mr. Hassell.


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