BNY Posts $2.34 Q3 EPS, Up 24% on 12% Revenue Growth
BNY sits 35% above its 52-week low of $103.11 on elevated volume (2.3× avg).
Summary
BNY reported Q3 EPS of $2.34, up 24% year-over-year, on revenue of $5.7 billion, up 12%. The company returned $1.4 billion to shareholders in the quarter. This follows record Q2 revenue of $5.7 billion and EPS of $2.45, when the board raised the quarterly dividend 19% to $0.63 per share. The 24% EPS growth shows the fee and net interest income momentum is holding, not fading. The quarter included return on common equity of 16%, total fee revenue of $4.08 billion, average deposits of $311.08 billion, up 4%, and quarter-end assets under custody and administration of $63.4 trillion and assets under management of $2.2 trillion. The stock trades near $139 with a roughly $93 billion market cap, so a quarter this strong supports the recent run.
Updates
· ShareCast — BNY's Q3 revenue of $5.68bn beat consensus of $5.55bn and adjusted EPS of $2.37 beat expectations of $2.27; shares fell 1.3% to $135.79.
- Earnings Beat — Net income attributable to common shareholders jumped 20% to $1.61bn. Pre-tax operating margin improved to 38.5% from 36.4% a year earlier.
- Revenue by Segment — Securities services division revenue increased 15% to $2.82bn. Market and wealth services revenue grew 12% to $1.98bn. Investment and wealth management revenues were up 4% at $857m.
- Net Interest Income — Net interest income rose 15% to $1.42bn, helped by the reinvestment of securities at higher yields and balance sheet growth, partly offset by pressure on deposit margins.
- Fee Revenue — Fee revenue increased 12% to $4.08bn, reflecting new business, higher client activity and stronger market values.
- Expenses — Non-interest expenses climbed 8% to $3.49bn.
- Assets — Assets under custody and administration rose 10% to $63.4trn. Assets under management increased 2% to $2.2trn.
- Capital Returns — Shareholder returns comprised $937m of share buybacks and $436m in dividends.
- Management Comment — CEO Robin Vince commented on resilience and healthy sales pipelines.
All 13 details
- Net income attributable to common shareholders jumped 20% to $1.61bn.
- Non-interest expenses climbed 8% to $3.49bn.
- Pre-tax operating margin improved to 38.5% from 36.4% a year earlier.
- Net interest income rose 15% to $1.42bn.
- Securities services division revenue increased 15% to $2.82bn.
- Market and wealth services revenue grew 12% to $1.98bn.
- Investment and wealth management revenues were up 4% at $857m.
- Assets under custody and administration rose 10% to $63.4trn.
- Assets under management increased 2% to $2.2trn.
- Shareholder returns comprised $937m of share buybacks and $436m in dividends.
- CEO Robin Vince commented on resilience and healthy sales pipelines.
- Fee revenue increased 12% to $4.08bn, reflecting new business, higher client activity and stronger market values.
- Net interest income rose 15% to $1.42bn, helped by the reinvestment of securities at higher yields and balance sheet growth, partly offset by pressure on deposit margins.
At the time of this announcement, BNY was trading at $138.93 on NYSE in the Finance sector, with a market capitalization of approximately $93.4B. The 52-week trading range was $103.11 to $165.84. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.