BNY Q4 Earnings: Higher Revenue, Lower Costs, And 102% Payout Ratio To Shareholders

The Bank Of New York Mellon Corporation BK shares are trading higher in the premarket session on Wednesday after the company reported fourth-quarter 2024 results.

The finance behemoth reported fourth-quarter adjusted earnings per share of $1.72 (+33% YoY), beating the street view of $1.56.

Quarterly revenue of $4.847 billion, an increase of 11% year-over-year, surpassed the analyst consensus of $4.653 billion.

Fee revenue in the quarter grew 9% YoY to $3.513 billion. Net interest income rose 8% YoY, reflecting higher portfolio yields and balance growth, offset by deposit mix shifts.

Noninterest expense fell 16% YoY, driven by FDIC adjustments, savings, and lower severance costs, partially offset by merit increases and investments. Excluding notable items, noninterest expenses rose 2%.

The provision for credit losses totaled $20 million for the quarter, mainly due to reserve increases tied to commercial real estate exposure.

The Bank of New York Mellon reported average deposits of $286 billion, which increased 5% year over year and declined 1% sequentially.

The company stated that its fourth-quarter tier 1 leverage ratio of 5.7% decreased 23 bps year over year and 29 bps sequentially. Adjusted pre-tax operating margin totaled 34% (vs. 29% a year ago).

At December 31, 2024, CET1 capital was $18.8 billion and Tier 1 capital was $23.0 billion, both down from September 30, 2024, due to lower comprehensive income and capital returns, partially offset by earnings.

BNY declared a common stock dividend of $0.47 per share, payable on February 7, 2025, to shareholders of record as of the close of business on January 27, 2025.

The bank returned $1.1 billion to common shareholders, including $349 million in dividends and $750 million in share repurchases, achieving a total payout ratio of 102% for full-year 2024.

“We launched a new commercial coverage model, developed new products and solutions for our clients, completed a brand refresh, announced and closed our first acquisition in several years, and commenced the phased transition to our strategic platforms operating model. We also continued to invest in our culture and attracted top talent to further strengthen our team,” commented President and Chief Executive Officer Robin Vince.

Fiscal 2024 revenue rose 5% YoY, with fee revenue up 6% from higher market values, new business, and client activity.

FY24 Net interest income fell 1% due to deposit mix changes, offset by higher yields and balance growth. Credit loss provisions hit $70 million, driven by real estate reserves and forecasts. Noninterest expenses dropped 4% from FDIC adjustments and savings.

Price Action: BK shares are trading higher by 2.57% to $77.89 premarket at the last check Wednesday.

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