BNY Mellon posts better-than-expected Q3 earnings
By Iain Gilbert
Date: Monday 17 Oct 2022
(Sharecast News) - Bank of New York Mellon surpassed analysts' estimates for its third quarter despite incurring in a goodwill impairment charge linked to its Investment Management reporting unit.
.The lender posted a 6% jump in revenues to $4.28bn, for adjusted earnings per share of $1.21, as net interest revenues surged by 44%.
Analysts had forecast topline growth of 4.2% to $4.2bn for EPS of $1.10.
BNY chief executive officer Robin Vince highlighted the 22% improvement in the lender's return on tangible common equity excluding notable items.
Vince attributed BNY's performance over the quarter to the tailwinds from higher interest rates and continued strength in client volumes and balances across its Securities Services and Market and Wealth Services segments.
He also called attention to the continued positive net inflows to its Investment Management arm, despite the continued decline in global market values.
Nevertheless, BNY incurred in a $664m or 81 cent per share non-cash charge for goodwill impairment at its Investment Management reporting unit.
Assets under management ended the period down by 23%, mainly due to market impact.
The lender said the charge refected lower market values and a higher discount rate.
As of 1451 BST, shares in the lender were climbing by 5.44% to $40.50.
Reporting by Iain Gilbert at Sharecast.com
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN