Bank of New York Mellon Posts Higher Q1 Earnings

reported a rise in its earnings for the first quarter on Wednesday. The New York-based bank posted quarterly earnings of $766 million, or $0.67 per share, up from $661 million, or $0.57 per share, in the year-earlier period. Its revenue rose 6 percent to $3.9 billion. However, analysts were expecting earnings of $0.59 per share on revenue of $3.75 billion. Investment management and performance fees rose 1 percent. Assets under custody and/or administration rose 2 percent to $28.5 trillion. Return on tangible common equity was 20 percent in the first quarter. Its net interest margin narrowed to 0.97 percent from 1.05 percent in the year-ago period. Noninterest expense slipped 1 percent to $2.7 billion. During the quarter, the bank repurchased 10.3 million common shares for $400 million. "Our first quarter results reflect continued progress in executing on our strategic priorities. Earnings per share growth was driven by higher revenues across all of our businesses, our success in holding our expenses in check and generating positive operating leverage. We also returned significant value to our shareholders in the form of share repurchases and dividends, while increasing our return on equity," said Gerald L. Hassell, chairman and chief executive officer of BNY Mellon. The average estimate among 12 Estimize users was for earnings of $0.60 per share and revenue of $3.74 billion. Bank of New York Mellon shares rose 0.64 percent to close at $41.04 yesterday.