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BNY Mellon Squeezes Earnings Beat Out of Tough Market

Bank of New York Mellon surprises analysts, posting earnings and revenue beats for the first three tumultuous months of 2020.

Bank of New York Mellon  (BK) - Get The Bank of New York Mellon Corporation Report rose Thursday as the financial services giant emerged as a bright spot in a banking sector battered by the coronavirus downturn, posting stronger than expected quarterly numbers.

BNY Mellon's stock price jumped 3.7% to $35.91 a share in trading Thursday after the bank scored beats on both earnings and revenue for the first quarter of 2020.

The bank posted earnings of $1.05 a share for the first quarter, blowing past the 91-cents-a-share estimate of analysts surveyed by Zacks Investment Research, while also coming in well above 94 cents a share the bank reported during the same quarter last year.

BNY Mellon also saw revenue increase 5% in the first quarter, rising to $4.1 billion. That also came in well above the Zacks' estimate, which had predicted a 1.3% decline to $3.82 billion.

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A 10% jump in transaction fees amid a tumultuous quarter for the markets and the economy helped buoy the bank's bottom line. Fee revenue hit $3.3 billion for the quarter, up from $3 billion during the first quarter of 2019.

The big increase in fee revenue reflects "higher foreign exchange and other trading revenue, higher transaction volumes across investment services businesses and higher performance fees," the bank said in a press statement.

The gains were offset by equity losses as markets tumbled, as well as a 3% decline in net interest revenue as already historically low interest rates sank even lower.

"Despite the unprecedented global market disruption, we have stayed fully operational," said Todd Gibbons, BNY Mellon's CEO.