BNY Mellon third-quarter earnings top expectations

Net income attributable to common shareholders came in at $974m, or $0.90m per diluted common share, up from $820m, or $0.74 in the same period a year ago. Total revenue was up 4% to $3.94bn, beatings analysts’ estimates of $3.86bn.

Excluding items, income was $979m, or $0.90 a share, versus expectations of $0.81.

Assets under management rose 5.5% from a year ago and 3.1% from the second quarter to $1.72trn, reflecting higher market values offset by the unfavourable impact of a stronger US dollar, mostly against the British pound.

Chairman and chief executive officer Gerald L Hassell said: “We delivered strong results for the quarter, once again meeting or exceeding our three-year Investor Day goals. Each of our businesses performed well, as total revenue was up 4% and our business improvement process continued to pay off, generating more than 500 basis points of positive operating leverage. Our strategy is benefiting our clients and shareholders through all market environments.

“We also strengthened our capital ratios while returning significant capital to shareholders through repurchases and dividends, and made progress in our resolution planning to ensure that BNY Mellon can be resolved without posing systemic risk to the financial system.”

At 1240 BST, BNY Mellon shares were up 1% to $40.85 in pre-market trade.