BNY Mellon's third-quarter 2014 earnings outpaced the Zacks
Consensus Estimate. Higher investment management & performance
fees lifted the results, while lower net interest revenues as well
as elevated expenses acted as dampeners. Moreover, sustained growth
in assets remained a major strength. The restructuring initiatives
and acquisitions undertaken by the company will likely result in
improved revenue generation going forward. Moreover, a sturdy
capital position and enhanced capital deployment activities will
continue to boost investors' confidence. Though litigation costs
and restructuring expenses will keep the top line under strain, the
company's cost control initiatives are expected to eventually ease
off the pressure. However, a persistently low interest rate
environment and slow economic recovery continue to slightly weigh
on the company's profitability.
Headquartered in New York and formed as a holding company for
The Bank of New York Mellon, The Bank of New York Mellon
Corporation (popularly known as BNY Mellon) is a financial services
company that has been in business since 1784. The company was
incorporated on Jul 1, 2007, following the merger of The Bank of
New York Company Inc. and Mellon Financial Corporation. As of Sep
30, 2014, BNY Mellon and its subsidiaries had around 50,900
The company operates in 35 countries and provides various
products and services to individuals and institutions in more than
100 markets worldwide. The company's global client base consists of
financial institutions, corporations, government agencies,
endowments and foundations as well as high-net-worth
BNY Mellon presents operations through the following
The Investment Management segment provides investment management
services to institutional and retail investors and investment
management, wealth and estate planning and private banking
solutions to high-net-worth individuals and families, as well as
foundations and endowments.
The Investment Services segment provides global custody and
related services, broker-dealer services, alternative investment
services, corporate trust, depositary receipt and shareowner
services, as well as clearing services and global payment/working
capital solutions to global financial institutions.
The Other segment primarily consists of credit-related services,
the leasing portfolio, corporate treasury activities, business
exits, M&I expenses, as well as other corporate revenues and
In 2009, BNY Mellon acquired Insight Investment Management
Limited for 235 million ($377 million of cash and stock).
In 2010, BNY Mellon sold Mellon United National Bank, its
national bank subsidiary located in Florida. In the same year the
company acquired Delaware-based PNC Financial's Global Investment
Servicing (GIS) business, Germany's BHF Asset Servicing GmbH and
Toronto-based I3 Advisors.
In 2011, BNY Mellon acquired Chicago-based Talon Asset
Management's wealth management business and Australia-based Penson
Financial Services Australia Pty Ltd.
In 2012, BNY Mellon completed the sale of the Shareowner
Services business to Computershare for $550 million and concluded
the 100% stake buyout of WestLB Mellon Asset Management JV.
In May 2014, BNY Mellon acquired a 65% ownership stake in
HedgeMark International, LLC. The remaining 35% stake has been held
by the company since 2011.
In Jul 2014, BNY Mellon completed the sale of its equity
investment in Wing Hang Bank Ltd. This resulted in an after-tax
gain of nearly $315 million in the third quarter of 2014.
In Sep 2014, BNY Mellon completed the sale of its One Wall
Street headquarter building to a group led by Macklowe Properties,
a New York-based real estate developer. The deal, valued at $585
million, resulted in an after-tax gain of $204 million in the third
quarter of 2014.
BNY Mellon's businesses benefit from global growth in financial
assets, the globalization of the investment process and the growth
and concentration of wealth segments. As of Sep 30, 2014, BNY
Mellon had total assets of $386.3 billion, net loans of $57.3
billion, total deposits of $264.9 billion and total equity of $39.4
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