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Financial Sector Update for 04/22/2015: BK,AEC,DFS

Top Financial Stocks

JPM +1.24%

BAC +1.72%

WFC +0.99%

C +1.31%

USB +0.80%

Financial stocks were higher in late Wednesday trading with the NYSE Financial Sector Index adding about 0.8% and the S&P Financial 100 Index also rising about 0.8%.

In company news, the Bank of New York Mellon Corp. ( BK ) rose to a seven-year high Wednesday after the trustee bank company today reported better-than-expected Q1 earnings and revenue.

Net income during the three months ended March 31 was $779 million, or $0.67 per share, up from $647 million during the same quarter last year and topping the Capital IQ consensus by $0.07 per share.

Revenues rose 5.6% year over year to $3.85 billion, also beating the Street view by around $120 million. Investment service fees climbed 3%, reflecting new business driven largely by its Global Collateral Services unit and by securities lending and rising market values.

Assets under management rose 7% from year-ago levels to a record $1.74 trillion.

BK shares were ahead almost 3% at $42.26 each, staying within close range of their highest share price since February 2008 at $42.42 a share. Over the past 12 months, the stock already had risen about 22% prior to today's advance.

In other sector news,

(+) AEC, Agrees to $1.65 bln buyout offer from Brookfield Asset Management, which will pay $28.75 for each AEC share, a 17.4% premium to Tuesday's closing price. BAM also will assume about $2.5 bln of AEC debt.

(-) DFS, Q1 EPS of $1.28 was down compared with $1.31 per share profit last year but still beating Capital IQ consensus by $0.01 per share. Revenue grows 4.3% over last year to $2.17 bln, matching estimates.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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