Shares of Bank of New York Mellon (NYSE:BK) rose 1.8% in premarket trading Tuesday following better-than-expected second-quarter results, driven by robust revenue growth across multiple divisions.
The company reported adjusted earnings per share of $1.94, comfortably above analyst projections of $1.75. Revenue topped forecasts as well, reaching $5.03 billion versus an expected $4.78 billion. This marked a 9% year-over-year increase and the first time quarterly revenue surpassed the $5 billion mark.
BNY Mellon delivered a pre-tax operating margin of 37% alongside a strong return on tangible common equity (ROTCE) of 27.8%, showcasing notable operating leverage. Assets under custody and/or administration (AUC/A) expanded 13% year-over-year to $55.8 trillion, while assets under management (AUM) grew 3% to $2.1 trillion.
CEO Robin Vince highlighted the quarter’s success: “Our total revenue grew 9% year-over-year, breaking the $5 billion quarterly threshold for the first time. We also sustained positive operating leverage, improving our pre-tax margin and ROTCE to 37% and 28%, respectively.”
Net interest income rose 17% to $1.2 billion, fueled by reinvestment of maturing securities at higher yields and balance sheet expansion. Fee income climbed 7%, supported by new business wins, rising market valuations, and heightened client activity.
The bank maintained a strong capital base with a Common Equity Tier 1 ratio of 11.5% and returned $1.2 billion to shareholders through dividends and share buybacks during the quarter.
Bank of New York Mellon Corporation stock price
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.