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Company Profile: New York City-based Bank of New York Mellon is a global financial services company, through its subsidiaries is engaged in trust and custody activities, investment management services, banking services and securities-related activities.
On March 22
Bank of New York Mellon announced a 44.4% increase of its quarterly dividend to 13 cents per share
, from 9 cents.
The higher dividend will be payable on May 10 to holders of record as of the close of business on April 29.
Bank of New York Mellon also announced it would increase its current share repurchase program
to bring the total number of common shares available for repurchase to 47 million shares. The bank plans to repurchase as much as $1.3 billion of its stock through the end of 2011.
CEO Robert Kelly said that following the completion of the Federal Reserve's latest round of stress tests, Bank of New York Mellon's first capital priority will be to reward our shareholders by increasing the dividend and resuming our share repurchase program," adding that the company expects to "exceed the Tier I common Basel III requirement by the end of this year."
On April 19 Bank of New York Mellon posted an 11.8% increase in first-quarter earnings as an improving equities market boosted assets and its fees for managing them. Net income rose to $625 million, or 50 cents per share, lower than expectations for a profit of 56 cents per share.
"The fee-based banks like Bank of New York have real revenue growth at a time when other banks don't," RBC Capital Markets analyst Gerard Cassidy told
Bank of New York Mellon said assets under custody and administration rose 14% last quarter to $25.5 trillion, working to offset softer profits from money funds and fixed-income investments.
On April 28 Bank of New York Mellon said its wealth management arm would acquire Chicago money manager, Talon Asset Management's wealth management business and its more than $800 million in client assets under management, as it continues its expansion across the U.S. and Canada.
Analysts at Morgan Stanley downgraded shares of Bank of New York Mellon to an equal weight rating.
-- Written by Miriam Marcus Reimer in New York.