Shares of Bank of New York Mellon (NYSE:BK) surged by nearly 2% in today’s early trading session after the financial services major reported better-than-anticipated first-quarter numbers and announced a substantial share buyback. Revenue increased by 3% year-over-year to $4.53 billion. The figure outpaced expectations by $140 million. Similarly, the EPS of $1.29 fared better than the consensus by $0.10.
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A Robust Performance
During the quarter, BK’s total fee revenue increased by 5% year-over-year to $3.3 billion, driven by higher client activity and buoyant markets. However, its net interest income contracted by 8% to $1.04 billion due to changes in the balance sheet mix. Non-interest expenses ticked higher by 2% to $3.18 billion, while its assets under management (AUM) rose by 6% to $2 trillion. Average deposits for the quarter increased by 2% sequentially to $279 billion.
BK’s Bumper Shareholder Returns
The company’s assets under custody or administration (AUC/A) rose by 5% to $48.8 trillion. Notably, BK returned a total of $1.3 billion to investors in the form of dividends and share repurchases in Q1.
The company’s board has now authorized a new stock buyback program, worth $6 billion.
Additionally, BK has announced a quarterly dividend of $0.42 per share. The BK dividend is payable on May 9 to investors of record on April 26.
What Is the Target Price for BK Stock?
Shares of the company have jumped by over 34% over the past six months. Overall, the Street has a Moderate Buy consensus rating on Bank of New York Mellon, alongside an average BK price target of $63.35. However, analysts’ views on the stock could see a revision following today’s earnings report.
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