Bank of New York Mellon -- Earnings Review
January 18 2018 - 7:44AM
Dow Jones News
By Cara Lombardo
The Bank of New York Mellon Corp. (BK) reported its
fourth-quarter earnings Thursday. Here's what you need to know:
EARNINGS: Bank of New York Mellon reported a profit of $1.18
billion, or $1.08 a share. Analysts had expected earnings of 91
cents a share, according to FactSet. Results included a $427
estimated net benefit related to the Tax Cuts and Jobs Act.
REVENUE: Revenue decreased 2% to $3.73 billion, missing
analysts' estimates of $4 billion. The difference is about the size
of a charge related to the new tax law, which the bank said
decreased total revenue growth by about 8%. Investment management
and performance fees increased 13%.
TAX HIT: The company recorded a $320 million charge related to
the new tax law. Investors aren't making much of the charges many
banks have been recording because they are anticipated and are
expected to be outweighed by the benefits of corporate tax cuts
taking effect this year.
SEVERANCE CHARGES: Expenses grew 11%, partly due to $282 million
of severance, litigation and other charges. Chief Executive Charles
Scharf said the charges stemmed from an ongoing review of the
bank's performance that it expects to complete by its investor
event on March 8.
Write to Cara Lombardo at cara.lombardo@wsj.com
(END) Dow Jones Newswires
January 18, 2018 07:29 ET (12:29 GMT)
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