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

  • 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