NYSE$BK

Bank of New York Mellon Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported strong second-quarter earnings with increased EPS and solid returns on equity

BNY Mellon reported a solid second quarter with an EPS of $1.13 and revenue of $4 billion. The company saw a fee revenue increase of 4%, or 10% excluding money market fee waivers, and generated returns on common equity and tangible common equity of 10% and 19% respectively.

  • EPS of $1.13 on $4 billion of revenue.
  • Fee revenue increased 4%, or 10% excluding the impact of money market fee waivers.
  • Investments in digitization and open-architecture modular solutions continued to pay off.
  • Increased common dividend by 10 percent to 34 cents per share and authorized repurchase of up to $6 billion of common stock through the fourth quarter of 2022.

Headline financials

Total Revenue

$3.96B

Previous: $3.96B+0.1%
EPS (adj)

$1.13

Previous: $1.01+11.9%
Assets under custody/admin

$45T

Previous: $37.3T+20.6%
Assets under management

$2.3T

Previous: $2T+15.0%
Capital Expenditures

-$465M

Previous: -$623M+25.4%
Free Cash Flow

$557M

Previous: $327M+70.3%
Net Income

$1.02B

Previous: $950M+7.6%
Operating Income

$2.94B

Previous: $2.78B+5.7%
Gross Profit

$3.87B

Previous: $3.81B+1.6%
Cash & Equivalents

$5.15B

Previous: $4.78B+7.9%
Total Assets

$467B

Previous: $442B+5.6%

Revenue & EPS history

BNY Mellon · Revenue · Quarterly

$3.96B

Q2 2021+0.1%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

BNY Mellon · $3.28B total across 6 segments · Q2 2021

  • Asset Servicing
    $1.38B-5.5%
  • Pershing
    $590M+2.1%
  • Issuer Services
    $405M-6.0%
  • Payments and Trade
    $319M-6.2%
  • Wealth Management
    $299M+12.8%
  • Clearance & Collateral Mgmt
    $283M-4.1%

Forward guidance

BNY Mellon is focused on returning excess capital to shareholders, with plans to repurchase shares and increase dividends. The company aims to leverage its investments in digitization and open-architecture modular solutions to drive future growth and efficiency.

Tailwinds

  • Authorization to repurchase up to $6 billion of common stock through 4Q22.
  • Increased quarterly dividend by 10% to $0.34 per common share in 3Q21.
  • Investments in digitization are paying off.
  • Being recognized as a leading innovator.
  • Enabling clients to optimize, scale and grow their businesses.

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 2021

Historical avgQ2 2021

+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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