BNY Mellon's (BK) Q4 Earnings, Revenues & Costs Decline Y/Y

Bank of New York Mellon Corporation’s (BK Quick Quote BK - Free Report) fourth-quarter 2020 adjusted earnings per share of 96 cents were 5% lower than the prior-year quarter’s level. The Zacks Consensus Estimate for earnings was 93 cents.

Results for the reported quarter reflect growth in asset balances. Also, lower expenses supported results to some extent. However, a decline in revenues was an undermining factor.

Net income applicable to common shareholders (GAAP basis) was $702 million or 79 cents per share, down from $1.39 billion or $1.52 per share recorded in the prior-year quarter.

For 2020, adjusted earnings of $4.01 per share were marginally lower than the previous year’s reported figure. The Zacks Consensus Estimate for earnings was $3.96. Net income applicable to common shareholders (GAAP basis) was $3.42 billion or $3.83 per share, down from $4.27 billion or $4.51 per share recorded in 2019.

Revenues & Expenses Decline

Total quarterly revenues (GAAP basis), excluding income from consolidated investment management funds, declined 20.1% year over year to $3.80 billion. The figure lagged the Zacks Consensus Estimate of $3.85 billion.

For the year, revenues (GAAP basis), excluding income from consolidated investment management funds, declined 4.2% year over year to $15.72 billion. The figure lagged the Zacks Consensus Estimate of $15.78 billion.

Quarterly net interest revenues on a fully taxable-equivalent basis (non-GAAP basis) were $683 million, down 16.4% year over year. The decline was due to lower interest rates on interest-earning assets and the impact of hedging activities, partially offset by benefits from low deposit and funding rates, and higher deposits and securities portfolio.

Non-GAAP net interest margin (FTE basis) contracted 37 basis points year over year to 0.72%.

Total fee and other revenues declined 20.9% year over year to $3.12 billion. The fall was due to a decline in total investment services fees, foreign exchange and other trading revenues, distribution and servicing fees, and investment and other income.

1 2
View single page >> |

Disclaimer: Neither Zacks Investment Research, Inc. nor its Information Providers can guarantee the accuracy, completeness, timeliness, or correct sequencing of any of the Information on the Web ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.