GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Bank of New York Mellon Corp (NYSE:BK) » Definitions » ROE %

BK (Bank of New York Mellon) ROE % : 11.48% (As of Jun. 2024)


View and export this data going back to 1969. Start your Free Trial

What is Bank of New York Mellon ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Bank of New York Mellon's annualized net income for the quarter that ended in Jun. 2024 was $4,672 Mil. Bank of New York Mellon's average Total Stockholders Equity over the quarter that ended in Jun. 2024 was $40,706 Mil. Therefore, Bank of New York Mellon's annualized ROE % for the quarter that ended in Jun. 2024 was 11.48%.

The historical rank and industry rank for Bank of New York Mellon's ROE % or its related term are showing as below:

BK' s ROE % Range Over the Past 10 Years
Min: 6.14   Med: 8.42   Max: 10.82
Current: 8.72

During the past 13 years, Bank of New York Mellon's highest ROE % was 10.82%. The lowest was 6.14%. And the median was 8.42%.

BK's ROE % is ranked worse than
53.23% of 1546 companies
in the Banks industry
Industry Median: 9.29 vs BK: 8.72

Bank of New York Mellon ROE % Historical Data

The historical data trend for Bank of New York Mellon's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Bank of New York Mellon ROE % Chart

Bank of New York Mellon Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.82 8.29 8.46 6.14 8.05

Bank of New York Mellon Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.14 2.00 10.07 11.48 11.42

Competitive Comparison of Bank of New York Mellon's ROE %

For the Banks - Diversified subindustry, Bank of New York Mellon's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Bank of New York Mellon's ROE % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Bank of New York Mellon's ROE % distribution charts can be found below:

* The bar in red indicates where Bank of New York Mellon's ROE % falls into.



Bank of New York Mellon ROE % Calculation

Bank of New York Mellon's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=3286/( (40734+40874)/ 2 )
=3286/40804
=8.05 %

Bank of New York Mellon's annualized ROE % for the quarter that ended in Jun. 2024 is calculated as

ROE %=Net Income (Q: Jun. 2024 )/( (Total Stockholders Equity (Q: Mar. 2024 )+Total Stockholders Equity (Q: Jun. 2024 ))/ count )
=4672/( (40569+40843)/ 2 )
=4672/40706
=11.48 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jun. 2024) net income data. ROE % is displayed in the 30-year financial page.


Bank of New York Mellon  (NYSE:BK) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Jun. 2024 )
=Net Income/Total Stockholders Equity
=4672/40706
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(4672 / 18036)*(18036 / 431633.5)*(431633.5 / 40706)
=Net Margin %*Asset Turnover*Equity Multiplier
=25.9 %*0.0418*10.6037
=ROA %*Equity Multiplier
=1.08 %*10.6037
=11.48 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Jun. 2024 )
=Net Income/Total Stockholders Equity
=4672/40706
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (4672 / 6108) * (6108 / 18036) * (18036 / 431633.5) * (431633.5 / 40706)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.7649 * 33.87 % * 0.0418 * 10.6037
=11.48 %

Note: The net income data used here is four times the quarterly (Jun. 2024) net income data. The Revenue data used here is four times the quarterly (Jun. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Bank of New York Mellon ROE % Related Terms

Thank you for viewing the detailed overview of Bank of New York Mellon's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Bank of New York Mellon Business Description

Address
240 Greenwich Street, New York, NY, USA, 10286
BNY Mellon is a global investment company involved in managing and servicing financial assets throughout the investment lifecycle. The bank provides financial services for institutions, corporations, and individual investors and delivers investment management and investment services in 35 countries and more than 100 markets. BNY Mellon is the largest global custody bank in the world, with $47.8 trillion in under custody or administration (as of Dec. 31, 2023), and can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute, or restructure investments. BNY Mellon's asset-management division manages about $2.0 trillion in assets.
Executives
Hanneke Smits officer: Sr. Exec. Vice President 160 QUEEN VICTORIA STREET, THE BANK OF NEW YORK MELLON CENTRE, LONDON X0 EC4V 4LA
Senthilkumar Santhanakrishnan officer: Senior Exec VP 240 GREENWICH STREET, NEW YORK NY 10286
Kurtis R. Kurimsky officer: Acting Controller 225 LIBERTY STREET, NEW YORK NY 10286
J Kevin Mccarthy director, officer: SEVP & General Counsel THE BANK OF NEW YORK MELLON CORPORATION, 225 LIBERTY STREET, NEW YORK NY 10286
Catherine Keating officer: Sr. Exec. Vice President 75 STATE ST, BOSTON MA 02109
Jayee Koffey officer: Sr. Exec. Vice President 240 GREENWICH STREET, NEW YORK NY 10286
Dermot Mcdonogh officer: Sr. Executive Vice President 240 GREENWICH STREET, NEW YORK NY 10286
Thomas P Gibbons officer: Sr. Executive Vice President THE BANK OF NEW YORK MELLON CORPORATION, 225 LIBERTY STREET, NEW YORK NY 10286
Sandie O'connor director C/O TEREX CORPORATION, 200 NYALA FARM ROAD, WESTPORT CT 06880
La Salla Francis J. officer: Sr. Executive Vice President 101 BARCLAY STREET, NEW YORK NY 10286
Jeffrey D Landau officer: Sr. Exec Vice President 200 PARK AVENUE, NEW YORK NY 10166
Marguerite Amy Gilliland director 2941 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Kumara Guru Gowrappan director 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Robin A. Vince officer: Vice Chair 240 GREENWICH STREET, `, NEW YORK NY 10286
Ralph Izzo director PSEG 80 PARK PLAZA, T6B NEWARK NJ 07102-4194