As part of its growth strategy, NY-based
The Bank of New York Mellon Corporation
) announced its intention to expand the workforce at its wealth
management unit. The company plans to strengthen the unit by
roughly 100 additional positions.
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The major 2-year recruiting campaign is expected to increase BNY
Mellon's workforce at the wealth management unit by 50% by the
end of 2014. BNY Mellon plans to hire portfolio managers, private
bankers and mortgage bankers as well as wealth strategists at its
wealth management unit. Furthermore, the company intends to
recruit extra sales support staff at the unit.
Through its 2-year hiring plan, BNY Mellon will recruit employees
equaling approximately 5% of its current workforce of 1,900
In the past, BNY Mellon's wealth management unit made strategic
acquisitions to expand its global footprint. Further, the unit is
now more focused on increasing its workforce. Moreover, it
intends to enter new markets by expanding its geographic
footprint and has therefore opened new offices in cities
including Dallas, Washington and the Cayman Islands.
BNY Mellon plans to bolster its workforce by opening new offices
at its present locations besides operating new offices in other
important wealth markets.
In 2008, when U.S. was battered by the financial crisis, the new
regulations were implemented. This led to a decline in revenues
generated by the companies including BNY Mellon and banking
JPMorgan Chase & Co
The Goldman Sachs Group, Inc
). Since then, these companies have been focusing more on wealthy
clients to get better regular fees and increase market share.
BNY Mellon's plan to increase its workforce is expected to
strengthen the global distribution capabilities of its wealth
management unit. This is expected to auger well for the organic
growth of the unit.
However, this might hinder the company's cost cutting
initiatives. The company targets to slash its costs by about $700
million by 2015.
BNY Mellon currently carries a Zacks Rank #3 (Hold).
Fifth Third Bancorp
) is a better performing bank with a Zacks Rank #2 (Buy).