Shares of the Bank of New York Mellon Corporation (BK, Financial) is going north over 6% after posting its Q4 2024 earnings results.
Revenue for the quarter reached $4.85 billion, an 11.2% year-over-year increase that surpassed the consensus estimate of $4.66 billion. Net income applicable to common shareholders on a GAAP basis rose dramatically
to $1.13 billion or $1.54 per share, up from $162 million or 21 cents per share in the last year's same quarter.
The earnings per share increased 33.3% to $1.72 per share compared to $1.19 in the same quarter last year. Efficiency plays little role in the rising EPS because the increase is primarily due to share buybacks that reduces
the number of outstanding shares and increases the EPS. In the fourth quarter of 2024, BK repurchased 1.19% of its outstanding shares or equal to 8,630,682 shares.
The bank reported strong growth in assets under custody and/or administration (AUC/A) and assets under management (AUM), driven by a favorable market rally recently.
Higher fee revenues, net interest income, reduction in provisions and non-interest expenses propelled BNY Mellon's strong results and buybacks also help the bank to deliver higher EPS. Together these factors contributed to a quarter of outstanding financial performance for the bank and fortified its leading position in the financial services sector.
