We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BNY Mellon Stock Up 8% on Q4 Earnings Beat, AUM & Fee Income Rise
Read MoreHide Full Article
The Bank of New York Mellon Corporation’s (BK - Free Report) fourth-quarter 2024 adjusted earnings of $1.72 per share outpaced the Zacks Consensus Estimate of $1.56. Also, the figure reflected a jump of 33.3% from the prior-year quarter.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Further, BK’s total revenues grew 11.2% year over year to $4.85 billion. The top line also beat the Zacks Consensus Estimate of $4.66 billion.
The primary driver of the top line was an improvement in fee income and assets under custody and/or administration (AUC/A) and assets under management (AUM) balance.
The Bank of New York Mellon Corporation Price, Consensus and EPS Surprise
BNY Mellon shares jumped 8% during yesterday’s trading session.
Increase in Fee Income Boosts BNY Mellon’s Revenues
Total fee revenues were $3.51 billion, up 9.3% from the prior-year quarter. The increase was particularly driven by all the components except distribution and servicing fees.
BK’s investment services fees (the largest revenue component) grew 8.7% to $2.44 billion in the fourth quarter. Investment management and performance fees rose 8.7% to $808 million.
The rise in both the abovementioned metrics was driven by improvement in AUM and AUC/A balances. As of Dec. 31, 2024, AUM was $2.03 trillion, up 3% year over year, and AUC/A was $52.1 trillion, up 9%. The growth primarily reflected higher market values driven by a global market rally in the quarter, partially offset by an unfavorable impact of a strong U.S. dollar.
Similar to BK, its peers – JPMorgan (JPM - Free Report) and Citigroup (C - Free Report) – witnessed improvements in non-interest income in the fourth quarter. This resulted in a rise in revenues for both companies.
For BK, other fee income components, financing-related fees and foreign exchange revenues jumped 17.8% and 23.8%, respectively, in the fourth quarter of 2024. However, distribution and servicing fees declined 9.8%.
Additionally, BK’s net interest income (NII) on a fully taxable-equivalent (FTE) basis increased 8.4% to $1.20 billion on a year-over-year basis. The rise was driven by higher investment securities portfolio yields and balance sheet growth, partly offset by changes in the deposit mix.
Further, total non-interest expenses (GAAP basis) were $3.36 billion for BNY Mellon, down 16%. The decline was due to a fall in costs related to staff charges, net occupancy charges, distribution and servicing costs, business development costs and bank assessment charges. Adjusted expenses rose 2.4% from the prior-year quarter to $3.19 billion.
In the fourth quarter, this Zacks Rank #3 (Hold) company recorded a provision for credit losses of $20 million, declining 76.2% year over year. Likewise, JPM and C recorded a decline in their provisions for the quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
BNY Mellon Stock Up 8% on Q4 Earnings Beat, AUM & Fee Income Rise
The Bank of New York Mellon Corporation’s (BK - Free Report) fourth-quarter 2024 adjusted earnings of $1.72 per share outpaced the Zacks Consensus Estimate of $1.56. Also, the figure reflected a jump of 33.3% from the prior-year quarter.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Further, BK’s total revenues grew 11.2% year over year to $4.85 billion. The top line also beat the Zacks Consensus Estimate of $4.66 billion.
The primary driver of the top line was an improvement in fee income and assets under custody and/or administration (AUC/A) and assets under management (AUM) balance.
The Bank of New York Mellon Corporation Price, Consensus and EPS Surprise
The Bank of New York Mellon Corporation price-consensus-eps-surprise-chart | The Bank of New York Mellon Corporation Quote
BNY Mellon shares jumped 8% during yesterday’s trading session.
Increase in Fee Income Boosts BNY Mellon’s Revenues
Total fee revenues were $3.51 billion, up 9.3% from the prior-year quarter. The increase was particularly driven by all the components except distribution and servicing fees.
BK’s investment services fees (the largest revenue component) grew 8.7% to $2.44 billion in the fourth quarter. Investment management and performance fees rose 8.7% to $808 million.
The rise in both the abovementioned metrics was driven by improvement in AUM and AUC/A balances. As of Dec. 31, 2024, AUM was $2.03 trillion, up 3% year over year, and AUC/A was $52.1 trillion, up 9%. The growth primarily reflected higher market values driven by a global market rally in the quarter, partially offset by an unfavorable impact of a strong U.S. dollar.
Similar to BK, its peers – JPMorgan (JPM - Free Report) and Citigroup (C - Free Report) – witnessed improvements in non-interest income in the fourth quarter. This resulted in a rise in revenues for both companies.
For BK, other fee income components, financing-related fees and foreign exchange revenues jumped 17.8% and 23.8%, respectively, in the fourth quarter of 2024. However, distribution and servicing fees declined 9.8%.
Additionally, BK’s net interest income (NII) on a fully taxable-equivalent (FTE) basis increased 8.4% to $1.20 billion on a year-over-year basis. The rise was driven by higher investment securities portfolio yields and balance sheet growth, partly offset by changes in the deposit mix.
Further, total non-interest expenses (GAAP basis) were $3.36 billion for BNY Mellon, down 16%. The decline was due to a fall in costs related to staff charges, net occupancy charges, distribution and servicing costs, business development costs and bank assessment charges. Adjusted expenses rose 2.4% from the prior-year quarter to $3.19 billion.
In the fourth quarter, this Zacks Rank #3 (Hold) company recorded a provision for credit losses of $20 million, declining 76.2% year over year. Likewise, JPM and C recorded a decline in their provisions for the quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.