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BNY Mellon reports YOY dip in Q2 net income, ups quarterly common stock dividend

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BNY Mellon reports YOY dip in Q2 net income, ups quarterly common stock dividend

Bank of New YorkMellon Corp. on July 21 reported second-quarter net income applicableto common shareholders of $825 million, or 75 cents per share, compared to $830million, or 73 cents per share, in the year-ago period. Adjusted for merger andintegration, litigation and restructuring charges, the company's second-quarternet income applicable to common shareholders was $830 million, or 76 cents per share,compared to $868 million, or 77 cents per share, for the same period in 2015.

The S&P Capital IQ consensus estimate for normalized EPSwas 75 cents for the latest quarter.

On a fully taxable equivalent basis, BNY Mellon's net interestmargin was 0.98%, compared to 1.01% for the previous period and 1.00% for the secondquarter of 2015.

The company's nonperforming assets totaled $289 million at June30, compared to $292 million at March 31 and $127 million at June 30, 2015. BNYMellon noted in a news release that nonperforming loans include its claim in thebankruptcy proceedings of SentinelManagement Group Inc. On July 13, a settlement agreement between BNY Mellon and Sentinel's liquidationtrustee was accepted by the bankruptcy court. This is expected to become effectivein the third quarter and result in release of trust assets to BNY Mellon in an amountthat should exceed the company's carrying value of $171 million.

Net recoveries for the period were $2 million, same as the priorquarter and up from the $1 million recorded for the second quarter of 2015. Theallowance for credit losses was $280 million at June 30, compared to $287 millionat March 31 and $278 million at June 30, 2015.

The company also reported that it repurchased 12.5 million commonshares for $509 million in the second quarter of 2016.

BNY Mellon declared a quarterly common stock dividend of 19 centsper share, an increase from the prior dividend amount of 17 cents per share. Thedividend is payable Aug. 12 to shareholders of record as of the close of businesson Aug. 2. Additionally, the company disclosed that its board approved the of up to approximately$2.7 billion of common stock.