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BNY Mellon Expands in Saudi Arabia, Partners With NCB Capital

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As part of its efforts to expand presence outside the United States and increase share in asset servicing, The Bank of New York Mellon Corporation (BK - Free Report) has entered an alliance with Saudi Arabia’s largest asset manager and investment bank, NCB Capital, which is a unit of National Commercial Bank.

Through this partnership, the bank is seeking institutional investors in Saudi Arabia for its “global custody and associated asset-servicing activities.”

With the help of this arrangement, investors in the region could have all of their custody needs handled by BNY Mellon and NCB Capital instead of them having to use various providers across regions.

BNY Mellon’s chairman of international, Hani Kablawi, stated, “This is about putting their local market reach and client base together with our global connectivity and capability set and giving them and their clients that access that they wouldn’t have otherwise.”

Akash Shah, BNY Mellon’s head of strategy and global client management, said, “This is an opportunity to create a homegrown hero who can extend their capabilities globally through our reach and for us to access the market through our partnership with them.”

Notably, in July, the company received conditional regulatory approval to establish a presence in Riyadh and open an office in the region.

Our Take

BNY Mellon has been continuously trying to gain foothold in foreign markets. Given the huge growth potential of overseas securities markets and a rise in complex new securities; long-term growth prospects of the industry are encouraging.

In fact, over the next few years, the company’s international revenues are expected to continue improving as the demand for personalized services rises across the globe.

Over the past six months, shares of BNY Mellon have lost 1.2% against the industry’s rise of 3.1%.






Currently, the company carries a Zacks Rank #3 (Hold).

A few better-ranked stocks from the finance space are mentioned below.

Moodys Corporation (MCO - Free Report) has witnessed an upward earnings estimate revision of 2% for the current year over the past 60 days. Its shares have lost 2.1% over the past three months. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Interactive Brokers Group, Inc.’s (IBKR - Free Report) earnings estimates have been revised 2.3% upward for the current year over the past 60 days. Over the past three months, the Zacks Rank #2 company has gained 2.8%.

BlackRock, Inc.’s (BLK - Free Report) earnings estimates for the current year have been revised 1.9% upward over the past 60 days. Its shares have witnessed a rise of 4% over the past three months. The company currently carries a Zacks Rank #2.

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