What's Going On With Bank Of New York Mellon Shares After Reporting Q1 Results?

The Bank Of New York Mellon Corporation BK shares are trading higher in the premarket session on Tuesday.

The finance behemoth reported first-quarter adjusted earnings per share of $1.29, beating the street view of $1.19.

Quarterly revenue of $4.527 billion outpaced the analyst consensus of $4.388 billion.

“In the first quarter, we delivered double-digit EPS growth as well as pre-tax margin and ROTCE expansion on the back of positive operating leverage,” said President and Chief Executive Officer Robin Vince. 

Net interest income decreased 8%, primarily reflecting changes in balance sheet mix, partially offset by higher interest rates. 

Total fee revenue in the quarter under review grew 5% year over year to $3.305 billion, while net interest income fell 8% to $1.04 billion.

Investment and other revenue increased in the quarter, primarily reflecting higher investment, other trading and seed capital results. 

Noninterest expense of $3.2 billion increased 2% in the quarter under review, or 1% excluding notable items.

Provision for credit losses in the quarter under review totaled $27 million, primarily driven by reserve increases related to commercial real estate exposure.

The Bank Of New York Mellon reported average deposits of $279 billion, increasing 2% year over year and 2% sequentially.

The company said that the first-quarter tier 1 leverage ratio of 5.9% increased eight bps year over year and decreased seven bps sequentially. Pre-tax operating margin totaled 29% (or 30%, excluding notable items).

Dividend: The company declared a quarterly common stock dividend of $0.42 per share, payable on May 9, 2024.

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Price Action: BK shares are trading higher by 2% to $56.19 premarket on the last check Tuesday.

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