Bank of New York Mellon (BK) shows strong Q4 earnings with revenue and EPS exceeding expectations
New York: The Bank of New York Mellon Corporation (BK) just reported its Q4 earnings for December 2024. They brought in $4.85 billion in revenue, which is a solid 12.4% increase from last year. Their earnings per share (EPS) hit $1.72, up from $1.28 a year ago.
They even beat the Zacks Consensus Estimate for revenue, which was $4.66 billion, by about 3.92%. The EPS also surprised analysts, who expected $1.56, showing a 10.26% increase instead.
Investors usually keep an eye on these headline numbers, but some key metrics give a clearer picture of how the company is really doing. These metrics help in understanding the overall performance and can guide investors on stock price movements.
So, how did The Bank of New York Mellon stack up in the latest quarter? Here are some important metrics that analysts watch closely:
- Total interest-earning assets – Average balance: $357.77 billion, slightly above the $356.67 billion estimate.
- Net Interest Margin (FTE Basis): 1.3%, beating the 1.2% estimate.
- Tier 1 Leverage Ratio: 5.7%, just below the 5.8% estimate.
- Tier 1 Capital Ratio (Standardized Approach): 13.7%, below the 14% estimate.
- Revenue- Market and Wealth Services- Total revenue: $1.67 billion, exceeding the $1.55 billion estimate.
- Revenue- Securities Services- Total fee and other revenue: $1.64 billion, slightly above the $1.63 billion estimate.
- Revenue- Securities Services- Net interest income: $681 million, beating the $611.38 million estimate.
- Revenue- Securities Services- Total revenue: $2.32 billion, above the $2.24 billion estimate.
- Revenue- Investment and Wealth Management- Total revenue: $873 million, surpassing the $855.66 million estimate.
- Revenue- Market and Wealth Services- Total fee and other revenue: $1.19 billion, above the $1.13 billion estimate.
- Revenue- Investment and Wealth Management- Net interest income: $47 million, slightly above the $45.25 million estimate.
- Revenue- Investment and Wealth Management- Total fee and other revenue: $826 million, exceeding the $810.41 million estimate.
Overall, shares of The Bank of New York Mellon have dipped about 3.2% over the past month, while the S&P 500 composite has seen a similar decline of 3.3%. Currently, the stock holds a Zacks Rank #3 (Hold), suggesting it might perform in line with the market soon.
