Bank of NY Mellon Reports 43% Profit Drop - TheStreet

Bank of NY Mellon Reports 43% Profit Drop

Bank of NY Mellon said profit fell 43% thanks to write-downs and losses.
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Bank of New York Mellon

(BK) - Get Report

announced this morning that its second-quarter profit dropped, largely on losses and write-downs.

The bank reported that net income for common shareholders fell off 43% to $176 million, or 15 cents a share, compared to $309 million, or 27 cents, in the year-earlier period. Net income from continuing operations came to $267 million, or 23 cents per share, against $303 million, or 26 cents a share, a year ago.

But charges and items, including one related to paying back monies received under the government's Troubled Asset Relief Program, dragged on the final results.

The street consensus had anticipated an EPS of around 52 cents per share.

While CEO Robert Kelly noted that revenue largely stabilized in the quarter, he also noted in a press release that "investment losses remain stubbornly high primarily due to continued deterioration in the residential housing market."

Bank of New York said it wrote-down $256 million in its securities portfolio, which is more than the $152 million loss last year, based largely on losses in mortgage-backed securities. The company's provision for credit losses also grew to $61 million compared to $13 million in the second quarter last year.

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