UPDATE: Bank of New York Mellon Q4 Profit Misses Estimates

reported downbeat earnings for the fourth quarter. The New York-based bank posted a quarterly profit of $807 million, compared to $513 million, in the year-ago period. On a per-share basis, the bank's earnings surged to $0.70 from $0.44. Excluding certain items, the bank's earnings rose to $0.58 per share from $0.54 per share. Its revenue rose around 2% to $3.69 billion. However, analysts were expecting earnings of $0.59 per share on revenue of $3.81 billion. Net interest margin shrank to 0.91% from 1.09%, while net interest income declined 6%. Total fees and other revenue surged 4.3% to $2.94 billion, while foreign exchange revenue increased to $151 million from $146 million. Other trading loss came in at $14 million in the quarter, versus other trading revenue of $20 million in the year-ago quarter. During the quarter, the bank repurchased 11.0 million common shares for $432 million and declared common stock dividend of $0.17 per share. "Our fourth quarter and full-year results cap solid performance for our shareholders. Throughout 2014, we demonstrated our focus on and commitment to controlling expenses to create positive operating leverage, strengthening our capital position, and creating value for our clients and shareholders. We generated positive operating leverage for the full year - even while absorbing elevated regulatory compliance costs and investing in our business to enhance future growth," said Gerald L. Hassell, chairman and chief executive officer of BNY Mellon. Bank of New York Mellon shares gained 3.12% to close at $38.72 yesterday.