NYSE$BK

Bank of New York Mellon Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

BNY Mellon reported Q4 2020 earnings with a net income of $702 million, but revenue decreased 20% year-over-year.

BNY Mellon's Q4 2020 earnings revealed a mixed performance. While the company demonstrated resilience and supported clients amid market volatility, revenue declined due to lower interest rates and notable items. However, investments in technology and operations proved beneficial.

  • Net income applicable to common shareholders was $702 million, or $0.79 per share, which includes a negative impact of $0.18 per share from notable items.
  • Total revenue decreased by 20%, but excluding notable items, the decrease was 2%.
  • Assets under custody and/or administration (AUC/A) increased by 11% to $41.1 trillion, and assets under management (AUM) increased by 15% to $2.2 trillion.
  • The company's business and operational resilience, enhanced by technology and digital capabilities, enabled it to support clients, employees, and the financial system through immense stress and volatility.

Headline financials

Total Revenue

$3.9B

Previous: $3.99B-2.1%
EPS (adj)

$0.96

Previous: $1.01-5.0%
Assets under custody/admin

$41.1T

No prior period
Assets under management

$2.2T

No prior period
Capital Expenditures

$266M

Previous: $98M+171.4%
Free Cash Flow

-$1.13B

Previous: -$2.57B+56.0%
Net Income

$755M

Previous: $1.39B-45.5%
Operating Income

$903M

No prior period
Gross Profit

$3.77B

Previous: $4.69B-19.6%
Cash & Equivalents

$6.25B

No prior period
Total Assets

$470B

No prior period

Revenue & EPS history

BNY Mellon · Revenue · Quarterly

$3.9B

Q4 2020-2.1%vs Q4 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

BNY Mellon · $3.18B total across 6 segments · Q4 2020

  • Asset Servicing
    $1.36B
  • Pershing
    $563M
  • Issuer Services
    $385M
  • Payments and Trade
    $325M
  • Wealth Management
    $276M
  • Clearance & Collateral Mgmt
    $275M

Forward guidance

While the full-year impact of low interest rates will be a significant headwind in 2021, BNY Mellon ended the year with momentum in its core franchise. The company feels good about its business model and the power of the open architecture platforms and solutions it provides to help its clients grow their businesses.

Tailwinds

  • Capital generation
  • Revenue growth
  • Good cost control
  • Driving growth
  • Creating value for clients

Headwinds

  • Full-year impact of low interest rates will be a significant headwind in 2021
  • Lower interest rates
  • Money market fee waivers
  • Credit provisions
  • Impact of hedging activities

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 Q4 2020

Historical avgQ4 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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