BNY Mellon profit beats expectations
Bank of New York Mellon's first-quarter profit fell but beat expectations as revenue declined and the company released money set aside for bad debts.
Net income dropped 9% to $858m in the three months to the end of March and diluted earnings per share fell 8% to $0.97. Net income rose 22% compared with the final quarter of 2020.
Analysts had expected the company to earn $0.87 per share, according to figures compiled by Thomson Reuters.
Revenue fell 5% to $3.92bn from a year earlier as net interest income fell by a fifth to $655m with interest rates near zero. Fee revenue rose 1% to $3.26bn. The bank released $83m from its credit loss provisions based on the improved outlook for the US economy.
Todd Gibbons, BNY Mellon's chief executive, said: "We delivered a strong quarter and continue to see momentum across our businesses despite the ongoing impact of low interest rates.
"As we move from a period of resilience to a period of recovery and growth, there is a confluence of factors that are encouraging indicators for economic momentum. This includes progress on vaccine deployment, extraordinary levels of consumer savings, and monetary stimulus and further government spending – all of which are likely to accelerate GDP growth."
BNY Mellon is the latest US bank to beat forecasts and publish an upbeat outlook as the US economy recovers from the Covid-19 crisis helped by a successful vaccination programme and the Biden administration's $2tn fiscal stimulus. Citigroup, JP Morgan and Bank of America have all reported strong numbers for the first quarter.