Analyst Note
| Rajiv Bhatia |Wide-moat-rated Bank of New York Mellon finished 2022 on a high note. Adjusted revenue of $4.38 billion and adjusted earnings per share of $1.30 for the fourth quarter topped the FactSet consensus estimates of $4.20 billion and $1.01, respectively. The bank is benefiting from higher interest rates as net interest margin expanded from 1.05% in the prior quarter to 1.19%, resulting in net interest income increasing 14% sequentially and 56% from the year-ago period. Monetary tightening is affecting average deposits, which were down 2% sequentially and 12% from the year-ago period. As we update our model, we anticipate raising our $55 fair value estimate by a single-digit percentage.