The Bank of New York Mellon (BK) Q2 2024 earnings summary

Executive summary

• EPS rose to $1.52, up 16% year-over-year, with net income applicable to common shareholders at $1,143 million, up 10% year-over-year.

• Total revenue increased 2% year-over-year to $4.6 billion, driven by higher fee and foreign exchange revenue, while net interest income declined 6%.

• Return on equity was 12.7% and return on tangible common equity reached 24.6%.

• Celebrated major anniversaries and rebranded, with ongoing investments in leadership, client solutions, and brand modernization.

• Capital returns totaled $923 million in Q2, including $601 million in share repurchases and a 12% dividend increase to $0.47 per share.

Financial highlights

• Fee revenue grew 4% year-over-year, investment services fees up 5%, and foreign exchange revenue up 16%.

• Net interest income decreased 6% year-over-year; net interest margin at 1.15%, down 5 bps.

• Noninterest expense decreased 1% year-over-year, reflecting efficiency savings and lower FDIC and litigation costs.

• Pre-tax margin at 33%; operating leverage improved by 489 bps year-over-year.

• Assets under custody/administration (AUC/A) reached $49.5 trillion (+6% YoY); assets under management (AUM) were $2.05 trillion (+7% YoY).

Outlook and guidance

• NII outlook for full year 2024 unchanged at down 10% year-over-year, with expenses excluding notable items expected to remain roughly flat.

• Effective tax rate for 2024 expected between 23% and 24%.

• Plan to return 100% or more of 2024 earnings to shareholders via dividends and buybacks.

• Management remains focused on efficiency, technology investment, and capital returns, with ongoing monitoring of market and regulatory trends.

• Forward-looking statements highlight risks from inflation, interest rates, regulatory changes, and macroeconomic conditions.