BNY Mellon’s revenue tanks 5% in the fiscal first quarter

Bank of New York Mellon Corp. (NYSE: BK) published its earnings report for the fiscal first quarter on Friday that came in better than what analysts had anticipated. Its profit and revenue, however, was weaker than the same quarter last year due to low-interest rates.

Bank of New York Mellon shares were reported about 2.5% down in premarket trading on Friday. Including the price action, the stock is now exchanging hands at £34 per share versus a year to date low of £28.87 per share in the last week of January. In comparison, BNY Mellon had started the year 2021 at a per-share price of £30.22.

BNY Mellon’s Q1 financial results versus analysts’ estimates

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

Bank of New York Mellon reported £621.87 million of net income in the first quarter that translates to 70.30 pence per share. In Q1 of 2020, its net income stood at a higher £684.22 million, or 76 pence per share.

The news comes on the same day when peer Morgan Stanley said its profit jumped over 100% in the fiscal first quarter.

BNY Mellon generated £2.84 billion of revenue in the recent quarter that represents a 5% annualised decline. According to FactSet, experts had forecast the company to post £2.78 billion of revenue in Q1. Their estimate for per-share earnings was capped at a lower 63.06 pence.

At £2.37 billion, the corporate investment banking company said its total fee revenue in the first quarter slid 1%. Net interest income in the recent quarter registered at £474.73 million or 20% lower than last year. The U.S. firm’s profit had also fallen short of estimates in the prior quarter (Q4).

Other prominent figures in BNY Mellon’s earnings report

Other notable figures in BNY Mellon’s earnings report on Friday include an 8% annualised decline in revenue from investment services business, and a 10% growth in revenue from the wealth management segment.

The New York-based company resumed share buyback and repurchased £506.62 million of stock in Q1. The American investment banking services holding company declared 22.47 pence per share of a quarterly common stock dividend on Friday.

Bank of New York Mellon performed fairly downbeat in the stock market last year with an annual decline of close to 15%. At the time of writing, the bank that was founded in 1784 is valued at £30.51 billion and has a price to earnings ratio of 12.54.