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BK NYSE· Bank Of New York Mellon Corp
Earnings report Q3 2023

Bank of New York Mellon Reports Steady Revenue Growth in Q3 2023

Segments of revenue

Bank of New York Mellon Corporation (BK) reported total revenue of $4.37 billion for the third quarter of 2023. The breakdown of revenue by segment is as follows:

  • Fee and other revenue: The company generated $3.36 billion in fee and other revenue, which includes investment services fees, investment management and performance fees, foreign exchange revenue, financing-related fees, distribution and servicing fees, and investment and other revenue.

  • Net interest revenue: Bank of New York Mellon recorded net interest revenue of $1.02 billion, comprising interest revenue of $5.52 billion and interest expense of $4.50 billion.

Strengths

Bank of New York Mellon demonstrated steady revenue growth in the third quarter of 2023. Fee and other revenue remained consistent compared to the previous quarter and the same quarter of the previous year. The increase in fee and other revenue compared to the third quarter of 2022 can be attributed to higher investments and the impact of inflation, partially offset by efficiency savings. Net interest revenue also remained stable, contributing to the overall revenue growth.

Challenges

While Bank of New York Mellon reported steady revenue growth, there were no significant weaknesses or challenges identified in the financial report.

Noteworthy

Bank of New York Mellon's total revenue for the first nine months of 2023 increased by 10% compared to the same period in 2022. This growth was primarily driven by higher asset servicing revenue, reflecting increased net interest revenue, net new business, and the abatement of money market fee waivers. Issuer services revenue also saw a significant increase, mainly due to higher net interest revenue and the accelerated amortization of deferred costs for depositary receipts services related to Russia.

Summary

Bank of New York Mellon Corporation delivered a solid performance in the third quarter of 2023, with steady revenue growth. The company's fee and other revenue remained consistent, while net interest revenue contributed to the overall revenue growth. Bank of New York Mellon's strong financial performance can be attributed to higher investments, the impact of inflation, and efficiency savings. The company also demonstrated strong year-to-date revenue growth, driven by increased asset servicing and issuer services revenue. Overall, Bank of New York Mellon's financial performance reflects its resilience and ability to navigate market challenges effectively.

Source documents

Form 10-Q  filed on Nov 03, 2023
70 pages scanned

Reference data

Company financials Q3 revenue 4.23B
Analyst estimates Q3 EPS beat by 14.03%
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