Bank Of New York Mellon Corporation (BK) has reported a 25.54 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $870 million, or $0.77 a share in the quarter, compared with $693 million, or $0.57 a share for the same period last year. On an adjusted basis, net profit for the quarter was $867 million, when compared with $797 million in the last year period.
Revenue during the quarter went up marginally by 1.72 percent to $3,790 million from $3,726 million in the previous year period. Net interest income for the quarter rose 9.34 percent over the prior year period to $831 million. Non-interest income for the quarter rose 0.14 percent over the last year period to $2,954 million.
Bank Of New York Mellon Corp has made provision of $7 million for loan losses during the quarter, down 95.71 percent from $163 million in the same period last year.
Net interest margin improved 18 basis points to 1.17 percent in the quarter from 0.99 percent in the last year period.
"We delivered strong fourth-quarter results, capping another year of solid execution against our three-year strategic plan. For full-year 2016, our earnings per share increased significantly as we delivered a strong return on capital. In the fourth quarter, we also generated substantial positive operating leverage, as the Investment Services business performed well and our business improvement process helped reduce structural costs," Gerald L. Hassell, chairman and chief executive officer, said.
Assets, liabilities fall
Total assets stood at $333,469 million as on Dec. 31, 2016, down 15.32 percent compared with $393,780 million on Dec. 31, 2015. On the other hand, total liabilities stood at $293,889 million as on Dec. 31, 2016, down 17.17 percent from $354,805 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $64,289 million as on Dec. 31, 2016, up 1.17 percent compared with $63,546 million on Dec. 31, 2015. Deposits stood at $221,490 million as on Dec. 31, 2016, down 20.79 percent compared with $279,610 million on Dec. 31, 2015.
Investments stood at $120,460 million as on Dec. 31, 2016, down 4.81 percent or $6,087 million from year-ago. Shareholders equity stood at $39,429 million as on Dec. 31, 2016, up 1.69 percent or $654 million from year-ago.
At the same time, return on equity increased 220 basis points to 9.30 percent in the quarter from 7.10 percent in the last year period.
Nonperforming assets moved down 63.36 percent or $185 million to $107 million on Dec. 31, 2016 from $292 million on Dec. 31, 2015.
Capital ratios improve
Bank Of New York Mellon Corp recorded an improvement in capital ratios during the quarter. Tier-1 leverage ratio stood at 6.60 percent for the quarter, up from 6 percent for the previous year quarter. Equity to assets ratio was 11.60 percent for the quarter, up from 9.70 percent for the previous year quarter. Book value per share was $33.67 for the quarter, up 3 percent or $0.98 compared to $32.69 for the same period last year.
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