BNY Mellon reports a 2% year over year increase in revenue in the fiscal second quarter

on Jul 15, 2020
  • BNY Mellon reports a 2% year over year increase in revenue in the fiscal second quarter.
  • The U.S. financial services holding company sets aside £113.61 million to cover for loan losses.
  • BNY Mellon tops analysts' estimates for earnings and revenue in the fiscal second quarter.

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Bank of New York Mellon Corp (NYSE: BK) published its quarterly financial results on Wednesday that topped analysts’ estimates for earnings and revenue in the fiscal second quarter. PNC Financial also reported a 100% increase in its quarterly profit on Wednesday.

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Shares of the company opened about 5% down on Wednesday and tanked another 3% on market open. At £29 per share, BNY Mellon is roughly 30% down year to date in the stock market after recovering from an even lower £21.85 per share in March. Learn more about how can you start trading on the stock market.

BNY Mellon’s Q2 financial results versus analysts’ estimates

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Experts had forecast the company to print £3.09 billion in revenue in the second quarter. Their estimate for earnings per share (EPS) was capped at 72.30 pence per share. In its report on Wednesday, BNY Mellon topped both estimates posting a higher £3.18 billion in revenue and 80 pence of earnings per share in Q2.

On a year over year basis, the American financial services holding company said that its EPS remained flat, but revenue saw a 2% increase in the recent quarter. CEO of BNY Mellon investment management, Mitchell Harris, recently expressed plans of retiring effective 1st October.

The New York-headquartered bank also highlighted on Wednesday that its total revenue from investment services came in 3% higher that was offset by a 3% decline in its revenue from investment and wealth management segment in the second quarter.

According to BNY Mellon, its financial performance is likely to remain under pressure in 2020 due to the rising Coronavirus uncertainty and added pressure from reduced interest rates.

CEO Todd Gibbons’ remarks on Wednesday

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CEO Todd Gibbons of BNY Mellon commented on the results and said:

“We are seeing momentum across most of our businesses as we continue to drive improved performance and capabilities across the company, and as we benefit from higher volumes and volatility versus a year ago.”

In the fiscal second quarter, the bank’s fee revenue climbed by 2% but its net interest revenue, on the other hand, registered a 3% decline attributed to lower interest rates. BNY Mellon also announced to have set aside £113.61 million to cover for loan losses in its earnings report on Wednesday.

Bank of New York Mellon performed slightly upbeat in the stock market last year with an annual gain of a little under 10%. At the time of writing, the American financial services firm has a market cap of £25.68 billion and a price to earnings ratio of 7.86.

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