BNY Mellon's Profit Surges on Higher Fee Income

The Bank of New York Mellon Corporation (BNY Mellon) reported a significant increase in its fourth-quarter profit, driven by a surge in fee income. The oldest U.S. bank's earnings per share (EPS) came in at $1.29, with revenue up 3% from a year ago to $4.53 billion. Total fees and other revenue increased 6% to $3.45 billion, all of which beat analyst expectations. Net interest income declined 8% to $1.04 billion but still surpassed forecasts.



BNY Mellon's assets under control/administration (AUC/A) rose 5%, and assets under management (AUM) were up 6%. The primary reason for these gains was higher market values, which led to increased fees and potential new client acquisitions. CEO Robin Vince attributed the bank's strong performance to its growth initiatives, stating that the firm was "off to an encouraging start for the year."

The bank also announced an additional $6 billion stock buyback program, returning $988 million to shareholders through share repurchases in the period. Shares of BNY Mellon rose in early trading before paring back gains later in the session, closing 1.9% lower at $54.09 as of 12:45 p.m. ET.



BNY Mellon's fee income growth appears to be sustainable despite market volatility, supported by strong client inflows, market appreciation, and increased trading activity. The bank's consistent earnings performance, with earnings surpassing the Zacks Consensus Estimate in each of the trailing four quarters, further indicates that its fee income growth is sustainable even in volatile market conditions.

In conclusion, BNY Mellon's fourth-quarter profit rise on higher fee income demonstrates the bank's resilience and ability to adapt to changing market conditions. With a strong earnings history and a positive outlook for the future, BNY Mellon is well-positioned to continue its growth trajectory.