logo
  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
Advertisement

Advertisement


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

rss feed

Latest Stories

article imageHealth Net, Inc. (HNT): Potential to Be Huge Winners Says Bank of America

As of this keystroke, Health Net, Inc. (NYSE: HNT) shares are up around 4% on the day. The managed health read on...

article imageHomeAway, Inc. (AWAY) Q2 Earnings Preview: Top and Bottom Line Bullish Surprise?

HomeAway, Inc. (NASDAQ:AWAY) will report its financial results for the second quarter ended June 30, 2014 read on...

article imageAmazon.com, Inc. (AMZN) Q2 Earnings Preview: Missing on the Top and Bottom Lines, Again?

Amazon.com, Inc. (NASDAQ:AMZN) will release its second quarter financial results after market close on read on...

article imageFord Motor Company (F) Q2 Earnings Preview: Light on the Top Line?

Ford Motor Company (NYSE:F) will release its preliminary second quarter 2014 results at 6:30 a.m. EDT read on...

Advertisement
Popular Articles

Advertisement
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.