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Mar 31, 2022
BNY Mellon Q1 2022 Earnings Report
Reported first quarter earnings with flat revenue and decreased EPS.
Key Takeaways
BNY Mellon reported flat revenue and a decrease in EPS for Q1 2022. Total revenue was $3.9 billion, and net income applicable to common shareholders was $699 million, or $0.86 per common share. AUC/A increased by 9% to $45.5 trillion, and AUM increased by 2% to $2.3 trillion.
Total revenue of $3.9 billion, was flat; or increased 2% excluding a reduction related to Russia.
Fee revenue decreased 3%; or was flat excluding an $88 million reduction related to Russia.
Net interest revenue increased 7%.
AUC/A of $45.5 trillion, increased 9%.
BNY Mellon
BNY Mellon
Forward Guidance
BNY Mellon anticipates that higher interest rates will positively impact both fee and net interest revenue moving forward.
Positive Outlook
- Expects higher interest rates to be a positive for both fee and net interest revenue going forward.
- The company generated a significant amount of capital and returned close to 60% of earnings to shareholders.
- Healthy underlying momentum across most of company's businesses.
- Took actions in the investment securities portfolio to temper the immediate impact to capital from higher interest rates.
- Strong, lower risk balance sheet and the resiliency of the business model differentiates BNY Mellon.
Challenges Ahead
- Increasingly uncertain environment, including the war in Ukraine, volatile markets, and persistently higher inflation which will require more meaningful monetary policy adjustments.
- Fee revenue decreased 3% including an $88 million reduction primarily due to accelerated amortization of deferred costs for depositary receipts services related to Russia.
- Total noninterest expense of $3.0 billion, increased ~ 5.5%
- Income before taxes decreased 33% for Securities Services
- Income before taxes decreased 24% for Investment and Wealth Management