By Kimberly Chin 
 

Bank of New York Mellon Corp. (BK) reported its second-quarter earnings Thursday. Here's what you need to know:

 

EARNINGS: The bank reported net income of $1.1 billion, or earnings of $1.03 a share, up 14% from the same period last year. That was slightly more than the $1 billion in net income, or $1.02 a share, analysts polled by Thomson Reuters expected.

 

REVENUE: Revenue increased 5% to $4.1 billion, helped by higher interest rates and stronger markets. This was in line with analysts' expectations. Fee revenue increased 3% and net interest revenue increased 11%, driven by underlying growth in some of its franchises.

 

EXPENSES: Noninterest expense increased 3% to $2.7 billion due to a weaker U.S. dollar, higher real-estate consolidation expenses and technology investments.

 

ASSETS UNDER CUSTODY AND MANAGEMENT: Assets under custody and administration increased 8% to $33.6 trillion, while assets under management increased 2% to $1.8 trillion. This was slightly weaker due to the divestiture of CenterSquare Investment Management earlier in the year.

 

ASSET-SERVICING REVENUE: Much of the custodial bank's revenue is derived from managing the money of big banks, asset managers and the investments of clients. Its asset-servicing revenue was up 10% to $1.5 billion, much of that from Pershing LLC, a subsidiary of the bank. Revenue from Pershing was $558 million.

 

DIVIDENDS: The bank authorized a quarterly common stock dividend of 28 cents a share.

 

Write to Kimberly Chin at kimberly.chin@wsj.com

 

(END) Dow Jones Newswires

July 19, 2018 07:05 ET (11:05 GMT)

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