BNY Mellon's first-quarter 2014 earnings outpaced the Zacks
Consensus Estimate. Results benefited from an increase in net
interest revenues and fee income as well as prudent expense
management partially offset by lower benefit from provisions.
Additionally, consistent improvements in asset position as well as
strong capital ratios were the tailwinds. We expect the top line to
continue benefiting from various restructuring initiatives and
acquisitions going forward. Moreover, a strong capital position and
enhanced capital deployment activities will continue to boost
investors' confidence. However, a still low interest rate
environment, slow economic recovery and changing regulations are
expected to dent the company's performance in the near term.
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 Mar
31, 2014, BNY Mellon and its subsidiaries had around 51,400
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 Nov 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 Shareowner Services
business to Computershare for $550 million and concluded the 100%
stake buy-out of WestLB Mellon Asset Management JV.
In May 2014, BNY Mellon acquired of 65% ownership stake in
HedgeMark International, LLC. The remaining 35% stake was held by
the company since 2011.
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 Mar 31, 2014, BNY
Mellon had total assets of $368.2 billion, net loans of $53.8
billion, total deposits of $252.2 billion and total equity of $38.0
The Bank of New York Mellon Corporation (BK): Read
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