BNY Mellon (BK.US) released its Q3 2024 earnings report today ahead of the Wall Street session, revealing it has become the first bank in history to surpass $50 trillion in assets under custody and administration. The shares gained 1.3% in pre-market. BNY Mellon reported better-than-expected Q3 results in several key areas, including adjusted EPS, revenue, and net interest revenue. The bank's investment services fees rose 5% to $2.34 billion, while income from foreign exchange jumped 14% to $175 million. BNY Mellon's total assets under custody and/or administration reached $52.1 trillion, significantly exceeding analysts' expectations and marking a historic milestone for the banking industry. Implied one day move for the company based on historical data was 3.35%, with an average surprise of 6.57% above consensus for adjusted EPS. It has also declared a quarterly common stock dividend of $0.47 per share, payable on November 1, 2024 to shareholders of record as of the close of business on October 21, 2024.
Highlights
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app- Assets under custody and/or administration reached a record $52.1 trillion, becoming the first bank to surpass $50 trillion
- Assets under management grew to $2.14 trillion, exceeding estimates
- Adjusted EPS of $1.52, beating expectations
- Revenue rose to $4.65 billion, surpassing estimates
BNY Mellon Q3 2024 Results
- Assets under custody and/or administration: $52.1 trillion vs $51.08 trillion expected
- Assets under management: $2.14 trillion vs $2.08 trillion expected
- Adjusted EPS: $1.52 vs $1.42 expected
- Revenue: $4.65 billion vs $4.55 billion expected
- Net interest revenue: $1.05 billion vs $1 billion expected
Segment Breakdown
- Investment services fees: $2.34 billion (+5% YoY)
- Foreign exchange income: $175 million (+14% YoY)
- Issuer services fees: $285 million vs $286.6 million expected
- Treasury services fees: $200 million vs $197.6 million expected
Other Key Metrics
- Net interest margin: 1.16% vs 1.13% expected
- Return on equity: 12% vs 11.3% expected
- Common equity Tier 1 ratio: 11.9% vs 11.5% expected
- Provision for credit losses: $23 million vs $11.4 million expected
- Non-interest expenses: $3.10 billion vs $3.07 billion expected
- Total deposits: $296.44 billion vs $296.46 billion expected
- Net loans: $69.16 billion vs $70.35 billion expected
- Liquidity coverage ratio: 116%
Additional Notes
- BNY Mellon became the first bank in history to surpass $50 trillion in assets under custody and administration
- The bank's stock is up 76% over the past year, outpacing the average growth of 48% seen by other American banks
- BNY Mellon recently announced it would custody Washington D.C.-based Wisdom Tree's $80 billion worth of U.S. listed ETFs, including one of the first U.S. bitcoin ETFs
- The bank's proprietary artificial intelligence is already being used by 14,000 of its 55,000 employees
- BNY Mellon is in the midst of an overhaul aimed at cutting costs, streamlining operations, and focusing on higher margin-businesses
- The bank declared a quarterly common stock dividend of $0.47 per share, payable on November 1, 2024
Source: xStation
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
