BNY Mellon reports strong Q3 earnings, acquires Archer, and boosts AI investment

From Investing.com: 2024-10-13 05:35:09

BNY Mellon (NYSE: BK) reported strong third-quarter earnings, with EPS of $1.50, a 22% increase year-over-year, and total revenue of $4.6 billion, up 5%. The company announced the acquisition of Archer to enhance asset servicing capabilities and introduced Alts Bridge for wealth advisers. Key stats include assets under custody/administration surpassing $50 trillion and $1.1 billion returned to shareholders in Q3 2024.

The company expects to maintain flat core expenses in 2024, return over 100% of earnings to shareholders, realize net interest income around $1 billion in Q4, and achieve a minimum ROTCE of 23%. Key bullish highlights include a pre-tax margin of 33%, return on tangible common equity of 23%, and increased revenue across segments. Challenges include potential moderation in deposit balances for Q4 and a decline in sponsored programs.

Despite macroeconomic uncertainties, BNY Mellon remains focused on driving growth and efficiency through its platform operating model transition. The introduction of Alts Bridge and strategic acquisitions like Archer demonstrate the company’s commitment to expanding wealth management offerings. With assets under custody/administration surpassing $50 trillion, BNY Mellon’s strong financial performance reflected in Q3 earnings positions it well for continued success and innovation.



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