NYSE$BK

Bank of New York Mellon Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

BNY Mellon reported solid results with resilient fee performance and a strong return on tangible common equity.

BNY Mellon's second quarter results showed resilience with a 2% increase in total revenue, driven by fee revenue growth in Investment Services. EPS was flat year-on-year at $1.01, and the company bolstered its CET1 ratio to 12.6% and achieved a ROTCE of 19%.

  • Total revenue increased by 2% driven by fee revenue growth.
  • EPS was flat year-on-year at $1.01.
  • CET1 ratio bolstered to 12.6%.
  • Return on tangible common equity (ROTCE) achieved 19%.

Headline financials

Total Revenue

$3.96B

Previous: $3.91B+1.1%
EPS (adj)

$1.01

Previous: $1.01+0.0%
Assets under custody/admin

$37.3T

Previous: $35.5T+5.1%
Assets under management

$2T

Previous: $1.84T+8.5%
Capital Expenditures

-$623M

Previous: -$717M+13.1%
Free Cash Flow

$327M

Previous: $300M+9.0%
Net Income

$950M

Previous: $1.02B-6.6%
Operating Income

$2.78B

Previous: $1.94B+43.3%
Gross Profit

$3.81B

Previous: $3.91B-2.4%
Cash & Equivalents

$4.78B

Previous: $5.56B-14.0%
Total Assets

$442B

Previous: $381B+16.0%

Revenue & EPS history

BNY Mellon · Revenue · Quarterly

$3.96B

Q2 2020+1.1%vs Q2 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

BNY Mellon · $3.37B total across 6 segments · Q2 2020

  • Asset Servicing
    $1.46B
  • Pershing
    $578M
  • Issuer Services
    $431M
  • Payments and Trade
    $340M
  • Clearance & Collateral Mgmt
    $295M
  • Wealth Management
    $265M

Forward guidance

Looking ahead to the remainder of 2020, downside risks remain from the economic uncertainty and the significant pressure from low interest rates. Despite this, their underlying business remains strong, benefiting from the improving quality and efficiency of their operations and the level of the client experience.

Tailwinds

  • Delivered solid results, with all of our Investment Services businesses demonstrating resilient fee performance.
  • We are seeing momentum across most of our businesses as we continue to drive improved performance and capabilities across the company, and as we benefit from higher volumes and volatility versus a year ago
  • Our underlying business remains strong, benefiting from the improving quality and efficiency of our operations and the level of the client experience.
  • This should provide opportunities to deepen our relationships with clients.
  • Our clients, communities and society at large can continue to rely on BNY Mellon to be a trusted steward.

Headwinds

  • Downside risks remain from the economic uncertainty
  • Significant pressure from low interest rates
  • Impact of the lower interest rate environment
  • Higher allowance for credit losses
  • Faced with the gravity of a global pandemic and with societal unrest spurred by racial injustice.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.3%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+2.1%

Avg return

30 days after

58%

42 / 73 earnings

Positive

+8.3%

Q4 2024

Best reaction

-9.4%

Q1 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.8%+4.5%+2.3%
Q4 2025+2.1%+4.5%+2.3%
Q3 2025-2.1%-1.8%+1.4%
Q2 2025+1.4%-0.8%+4.5%
Q1 2025+1.4%-1.1%+12.1%
Q4 2024+8.3%+9.7%+15.7%
Q3 2024+2.8%+3.8%+3.5%
Q2 2024+6.9%+4.3%+3.8%
Q1 2024-1.1%+2.2%+6.7%
Q4 2023+5.0%+4.0%+4.7%
Q3 2023+3.1%-0.4%+11.1%
Q2 2023+4.7%+3.4%+1.3%
Q1 2023+2.3%-0.4%-7.1%
Q4 2022+3.2%+2.2%+6.7%
Q3 2022+4.0%+4.7%+14.1%
Q2 2022+5.8%+6.7%+11.0%
Q1 2022-1.6%-6.5%-8.5%
Q4 2021-6.9%-10.1%-9.8%
Q3 2021+3.3%+4.0%+0.6%
Q2 2021+0.2%+0.3%+9.3%
Q1 2021-2.5%-1.7%+7.9%
Q4 2020-7.8%-9.9%-7.6%
Q3 2020-0.7%-0.9%+4.0%
Q2 2020-5.7%-7.8%-3.7%
Q1 2020+8.0%+1.7%-7.4%
Q4 2019-8.9%-7.7%-9.4%
Q3 2019+0.0%+3.0%+9.5%
Q2 2019+4.1%+6.3%-1.8%
Q1 2019-9.4%-9.8%-13.8%
Q4 2018+4.3%+6.6%+7.2%
Q3 2018-3.6%-5.8%+0.5%
Q2 2018-5.7%-2.6%-7.1%
Q1 2018+6.0%+6.0%+9.0%
Q4 2017-2.2%-0.3%-2.8%
Q3 2017-2.5%-2.9%-3.7%
Q2 2017+0.6%+1.3%-1.8%
Q1 2017-0.2%+0.8%-0.7%
Q4 2016-3.6%-3.5%+2.0%
Q3 2016+6.5%+7.3%+17.3%
Q2 2016-2.0%-1.0%+0.6%
Q1 2016+3.4%
Q4 2015-0.9%
Q3 2015+1.7%
Q2 2015+4.1%
Q1 2015+3.8%
Q4 2014-3.4%
Q3 2014+0.6%
Q2 2014+1.2%
Q1 2014+1.5%
Q4 2013-2.4%
Q3 2013+1.6%
Q2 2013+3.7%
Q1 2013-3.8%
Q4 2012-1.3%
Q3 2012+6.0%
Q2 2012-2.0%
Q1 2012-2.8%
Q4 2011+0.4%
Q3 2011-4.5%
Q2 2011-7.4%
Q1 2011+2.0%
Q4 2010-1.5%
Q4 2009-1.5%
Q3 2010-1.5%
Q2 2010-0.6%
Q1 2010+1.8%
Q4 2007+0.1%
Q3 2008+2.7%
Q3 2009+2.7%
Q2 2008+0.9%
Q2 2009+0.9%
Q1 2009+0.9%
Q4 2008+0.9%

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