BNY Mellon reported strong Q2 results that surpassed analyst estimates and increased its dividend by 12%, driven by solid fee growth and increases in total deposits and assets under management.
The bank posted an adjusted earnings per share (EPS) of $1.51, beating the estimated $1.43. Revenue for the quarter came in at $4.6 billion, exceeding expectations of $4.52 billion.
CEO Robin Vince highlighted, "BNY delivered another quarter of improved financial performance, with positive operating leverage on the back of solid fee growth and continued expense discipline."
Key financial metrics for the quarter included total fee revenue of $3.4 billion, up 4% year-over-year, and net income of $1.143 billion, up 10% year-over-year. Assets under management (AUM) increased to $2 trillion, a 7% rise year-over-year. The bank's pre-tax operating margin stood at 33%, with a return on equity (ROE) of 12.7% and a return on tangible common equity (ROTCE) of 24.6%.
Despite a slight shortfall in net loans at $70.36 billion against an expected $70.68 billion, total deposits were significantly higher at $304.31 billion, compared to the estimated $288.77 billion.
Shares of BNY Mellon were slightly higher in early Friday trading following the announcement.