Bank of New York Mellon (BNY Mellon) reported better-than-expected profits in the second quarter of the year. The bank’s earnings reached $1.031 billion, or $1.30 per share, compared to $835 million, or $1.03 per share, during the same period last year. Analysts surveyed by FactSet had predicted per-share earnings of $1.22.
Strong Revenue Growth
Total revenue for BNY Mellon rose by 5% to $4.5 billion, surpassing analysts’ forecast of $4.371 billion. The increase in revenue was mainly driven by a significant surge in net interest revenue, which climbed by 33% to $1.1 billion. However, fee revenue experienced a slight decline of 2%, totaling $3.257 billion.
Decline in Assets Under Management
BNY Mellon experienced a 2% decrease in assets under management compared to the previous year. This decline was primarily due to lower market values for assets and the divestiture of Alcentra.
Building Reserves and Preparing for Economic Slowdown
Anticipating a potential downturn in the broader economy and aiming to increase reserves related to commercial real estate, the bank provisioned $5 million for credit losses.
For more information on BNY Mellon’s financial performance, visit their website or contact their Investor Relations department.
