LONDON, UK / ACCESSWIRE / January 23, 2018 / Active-Investors.com has just released a free earnings report on The Bank of New York Mellon Corp. (NYSE: BK) ("BNY Mellon"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=BK. The banking and financial services Company posted its financial results for the fourth quarter fiscal 2017 (Q4 FY17) and full year 2017 (FY17) on January 18, 2018. BNY Mellon's annual total revenues increased% y-o-y; while diluted EPS grew 18% y-o-y. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, The Bank of New York Mellon most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
During Q4 FY17, BNY Mellon's GAAP total revenue was $3.73 billion compared to $3.79 billion in Q4 FY16. The bank's non-GAAP total revenue for Q4 FY17 was $3.72 billion versus $3.79 billion in the prior year's same quarter. Non-GAAP total revenues for the reported quarter fell short of the market consensus estimates of $3.98 billion. Fee and other revenue for Q4 FY17 came in at $2.86 billion compared to $2.95 million in Q4 FY16. Meanwhile, the Company's GAAP net interest income were up by 2% to $851 million in Q4 FY17 from $831 million in the prior year's comparable quarter.
The New York-based bank reported GAAP net income applicable to common shareholders of $1.13 billion, or $1.08 per diluted share, in Q4 FY17 compared to $822 million, or $0.77 per diluted share, in Q4 FY16. Furthermore, GAAP net income applicable to common shareholders for the reported quarter included US tax legislation of $0.41 per common share and Severance, litigation, and other charges of $0.24 per common share. Wall Street had expected the Company to report net income applicable to common shareholders of $0.91 per diluted share.
In full year FY17, total revenue was $15.54 billion, up from $15.24 billion a year ago. The Company's net income applicable to common shareholders in FY17 was $3.92 billion, or $3.72 per diluted share, rising from $3.43 billion, or $3.15 per diluted share, in the last year.
Earnings Metrics
During the reported quarter, GAAP return on common equity was 12.1%, which came in above 9.3% reported in the year ago same period. Adjusted return on common equity for Q4 FY17 stood at 13.2% compared to 9.8% in Q4 FY16. Non-GAAP return on tangible common equity came in at 25.9% in Q4 FY17 compared to 20.4% in Q4 FY16. Adjusted return on tangible common equity for Q4 FY17 was 27.4% versus 20.5% in Q4 FY16.
The Company's GAAP net interest margin fell two basis points in the reported quarter to 1.14% from 1.16% in Q4 FY16. Non-GAAP net interest margin on Fully Tax Equivalent (FTE) for the reported quarter was 1.16% compared to 1.17% in Q4 FY16. Average interest-earning assets grew to $297.17 billion in Q4 FY17 from $287.95 billion in the previous year's same quarter. Furthermore, the bank's yield on average interest-earning assets was 1.65% for Q4 FY17 versus 1.30% in the prior year's comparable quarter.
As on December 31, 2017, the Company's Common Equity Tier 1 ratio was 12.0% compared to 12.3% as on December 31, 2016. Furthermore, supplementary leverage ratio stood at 6.1% as on December 31, 2017, versus 6.0% as on December 31, 2016.
The Bank of New York Mellon's Segment Performance
BNY Mellon's total investment services fees rose 5% to $1.86 billion in Q4 FY17 from $1.77 billion in Q4 FY16. Furthermore, the segment reported non-GAAP income before taxes of $896 million, or 30% of the segment's revenues in Q4 FY17 compared to $959 million, or 35% of the segment's revenues in the prior year's comparable quarter.
For Q4 FY17, investment management fees were $898 million compared to $801 million in Q4 FY16. Additionally, the segment's non-GAAP income before taxes grew 3% to $291 million, or 31% of the segment's revenues, in Q4 FY17 from $282 million, or 33% of the segment's revenues, in the past year's corresponing quarter.
Balance Sheet Analyzed
BNY Mellon's net loan balance fell to $61.38 billion during the quarter ended December 31, 2017, from $64.29 billion as on December 31, 2016. Total deposits were $244.32 billion as on December 31, 2017, compared to $221.49 billion recorded as on December 31, 2016.
The bank's non-performing assets stood at $86 million as on December 31, 2017, compared to $103 million as on December 31, 2016. Non-performing assets ratio also improved to 0.15% at the end of Q4 FY17 from 0.17% at the end of prior year's same quarter.
Dividend and Share Repurchase
In its earnings press release, BNY Mellon's Board of Directors declared a quarterly common stock dividend of $0.24 per common share. This cash dividend is payable on February 09, 2018, to shareholders of record as of the close of business on January 30, 2018.
In Q4 FY17, the Company repurchased 12 million common shares costing $651 million and paid dividends to its common shareholders amounting to $248 million. Furthermore, BNY Mellon has repurchased a total of 55 million common shares for $2.7 billion in full year FY17, and the Company has also paid a total of $901 million as dividends in full year FY17.
Stock Performance Snapshot
January 22, 2018 - At Monday's closing bell, The Bank of New York Mellon's stock advanced 1.96%, ending the trading session at $57.72.
Volume traded for the day: 5.54 million shares, which was above the 3-month average volume of 4.60 million shares.
Stock performance in the last month – up 6.49%; previous three-month period – up 9.21%; past twelve-month period – up 29.53%; and year-to-date – up 7.17%
After yesterday's close, The Bank of New York Mellon's market cap was at $59.76 billion.
Price to Earnings (P/E) ratio was at 15.50.
The stock has a dividend yield of 1.66%.
The stock is part of the Financial sector, categorized under the Asset Management industry. This sector was up 0.8% at the end of the session.
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