BNY Mellon has reported first quarter net income applicable to common shareholders of US$661 million, or US$0.57 per diluted common share, compared to a net loss applicable to common shareholders of US$266 million, or US$0.23 per diluted common share a year ago.
Excluding the charge related to the U.S. Tax Court’s disallowance of certain foreign tax credits of US$854 million, or $0.73 per diluted common share, net income applicable to common shareholders totaled US$588 million, or $0.50 per diluted common share, in the first quarter of 2013.
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The group reported total revenue of US$3.65 billion for the first quarter of 2014, a marginal increase compared to US$3.63 billion reported a year ago.
Investment management and performance fees were US$843 million, an increase of 3% year-over-year and a decrease of 7% sequentially.
Net interest revenue and the net interest margin (FTE) were US$728 million and 1.05% in the first quarter of 2014 compared with $719 million and 1.11% in the first quarter of 2013.
The year-over-year increase in net interest revenue resulted from a change in the asset mix and higher average deposits, partially offset by lower yields on investment securities, the bank said in a statement.
Gerald Hassell, chairman and CEO of BNY Mellon said: "Our performance benefited from strength in Clearing Services, the eighteenth consecutive quarter of positive long-term inflows in Investment Management and the growing contribution from our Global Collateral Services and electronic foreign exchange initiatives.
"The earnings power and strength of our business model allowed us to announce a capital plan that includes share repurchases of up to $1.74 billion, an increase of nearly 30 percent from the prior year’s board authorization, and a 13 percent increase in the quarterly dividend," Hassell added.
"The management team is focused on actively realigning the business model for the new regulatory environment, controlling expenses and generating strong returns on tangible common equity," Mr. Hassell concluded.
