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Bank of New York Mellon Corp BK

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Some Positives for BNY Mellon, but Net Interest Revenue Not Yet Bottomed

Rajiv Bhatia, CFA Equity Analyst

Analyst Note

| Rajiv Bhatia, CFA |

Wide-moat-rated BNY Mellon reported decent second-quarter results with revenue and earnings per share edging out the FactSet consensus. Revenue for the quarter was $3.96 billion, 2% above the consensus of $3.88 billion, and diluted EPS came in at $1.13, $0.13 above the consensus estimate of $1.00. Though we’re encouraged by fee revenue growth, interest-rate-related headwinds show little sign of abating. We will maintain our $49 fair value estimate.

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Company Profile

Business Description

BNY Mellon is a global investment company involved in managing and servicing financial assets throughout the investment lifecycle. The bank provides financial services for institutions, corporations, and individual investors and delivers investment management and investment services in 35 countries and more than 100 markets. BNY Mellon is the largest global custody bank in the world, with about $41.1 trillion in under custody and administration (as of Dec. 31, 2020), and can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute, or restructure investments. BNY Mellon’s asset-management division manages about $2.2 trillion in assets.

Contact
240 Greenwich Street
New York, NY, 10286
T +1 212 495-1784
Sector Financial Services
Industry Asset Management
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 48,000

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