Join        Login             Stock Quote

Bank Of New York Mellon (BK) Posts In-Line Q4 Earnings, NIM Falls

 January 16, 2013 06:52 AM

(By Balachander) Bank of New York Mellon Corp. (NYSE: BK) posted an increase in quarterly earnings and revenue, matching market expectations, while net interest margin (NIM) fell due to higher interest-earning assets.

Earnings applicable to common shareholders increased to $622 million or $0.53 per share for the fourth quarter from $505 million or $0.42 per share in the comparable period of last year. In the third quarter, BK earned $720 million or $0.61 per share.

Non-GAAP revenue rose 5 percent to $3.61 billion. On a sequential basis, revenue declined 1 percent.

Wall Street analysts, on average, expected EPS of 53 cents on revenue of $3.60 billion for the three months ended December.

[Related -Warren Buffett's Latest Stock Picks And His Biggest Portfolio Holdings]

"We are pleased to report strong year-over-year growth in fees in our Investment Management, Asset Servicing, Clearing and Treasury Services businesses.  We benefited from the improvement in market values and.... focus on generating organic growth with our broad client base," commented CEO Gerald Hassell.

NIM fell to 1.09 percent from 1.27 percent in the year-ago quarter and $1.20 in the prior quarter reflecting rise in deposits levels, fall in reinvestment yields, the elimination of interest on European Central Bank deposits and lower accretion.

The provision for credit losses was a credit of $61 million in the fourth quarter. The provision for credit losses was $23 million in the comparable period of 2011 and a credit of $5 million in the previous quarter.

[Related -VIX And SPX During The 1994 Interest Rate Hike Cycle]

BK said estimated Basel III Tier 1 common equity ratio was 9.8 percent at Dec. 31, 2012, compared with 9.3 percent at Sept. 30, 2012.  The increase was mainly due to lower risk-weighted assets, the bank noted.

The stock, which has been trading in the 52-week range of $19.30 to $27.32, ended at $26.78 on Tuesday.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageSavings Glut and Financial Imbalances

Martin Wolf in today's Financial Times discusses the reasons for low interest rates and suggests some read on...

article imageA Dividend Aristocrat Is Now On Sale

The bear market investors have been dreading is already here for many individual stocks. While the S&P 500 read on...

article imageTwo Picks to Play Defense in a Slowing Economy

Is the economy slowing? Last Thursday the Institute for Supply Management (ISM) reported that its read on...

article imageUS Jobless Claims Fall, Moving Closer To Multi-Decade Low… Again

US jobless claims continue to cast a positive glow on the outlook for the labor market. Today’s weekly read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.