Bank of New York MellonBank of New York Mellon – Monitor Closely

 

 

On 01/12/2018 (four and a quarter years ago) the stock was selling in the market at $58.42 per share. Today, the stock is selling below $43 per share. Here are the comparatives.

                     Market             Annual                     Per Share                                                             Book                                            Common Equity
Date             Price      Revenue   Expenses   Earnings  Dividends    Loans   Securities   Value/SH  Tangible/SH    Employees      Tier 1 Ratio        Deposits 
01/18/2017   $58.42    $15.5 B      $11.0 B        $3.72         $.96          $57.9 B   $120.3 B        $37.21          $18.24           52,500               10.7%            $244.3 B
01/22/2021   $41.93    $15.8 B      $11.0 B        $3.83       $1.24          $56.5 B   $156.4 B        $46.53          $25.44           48,500               13.1%             $341.5 B
04/29/2022   $42.06    $15.9 B      $11.7 B        $4.04       $1.33          $68.1 B   $153.4 B        $45.76          $22.76           49,600               10.1%             $345.6 B
*04/26/22 Data reflects the four most recent quarters combined.

Bank of New York Mellon’s revenue will be impacted by the Russia-Ukraine war. In general, about $400 Million per year in fees are assessed for transaction activity tied to Russia. Adjusted for related costs, this will impact the bottom line around eight to ten cents per share per year for the foreseeable future. In addition, Bank of New York Mellon’s asset management fees are 73% of the total revenue recorded. In effect, if the market as a whole is performing poorly, the revenue stream tied to gains in the market is affected too. Total fees for asset management services is down $50 Million from the prior quarter. To add more pressure, the fair value of the bank’s securities portfolio fell $6.6 Billion reflecting the overall market as a whole.

© 2022, David J Hoare MSA. All rights reserved.

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