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October 20, 2021

BNY Mellon’s wealth busines registers 10% jump in Q3 revenues

By Verdict Staff

The wealth management business of BNY Mellon has reported revenues of $305m for the third quarter of 2021, an increase of 10% compared to $277m a year ago.

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GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
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The Investment and Wealth Management division of BNY Mellon generated total revenues of $1.03bn for the quarter, up 12% compared to $918m last year. The investment management business contributed $727 to the division’s quarterly revenue.

Pre-tax operating margin of the Investment and Wealth Management division rose to 34% from 27% in the third quarter of 2020.

The division’s pre-tax income during the quarter rose by 42% to $348m from $245m in the corresponding year-ago period.

At the end of the third quarter, wealth management client assets rose to $307bn from $265bn a year earlier, the company said in its earnings statement.

Overall, the BNY Mellon group reported net income applicable to common shareholders of $881m, a marginal rise of 1% compared to $876m last year. Total revenues stood at $4.03bn, an increase of 5% year-on-year.

BNY Mellon CEO Todd Gibbons said: “Our financial performance this quarter reflects healthy and broad-based organic growth across our businesses as well as a supportive global markets backdrop. Revenue of over $4bn was up 5% year-over-year, and fee revenue was up 6%, or 11% excluding the impact of money market fee waivers.

“Our operating margin of 29% was essentially flat compared to the third quarter of 2020 while we continued to make significant investments in our people, technology, efficiency and growth initiatives.  i.

Gibbons added: “During the quarter we returned $2.3bn of capital to our shareholders, including almost $300m of common dividends and $2bn of share repurchases. We ended the quarter with a Tier 1 leverage ratio of 5.7%, which together with our continued capital generation, provides us meaningful capacity to continue investing in our businesses and returning excess capital to our shareholders.”

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

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