NEW YORK (
Bank of New York Mellon
missed Wall Street's earnings expectations on Wednesday and kept its quarterly dividend stable at 9 cents per share.
The New York-based trust bank reported net income of $694 million, or 54 cents per share, a 17% climb year-over-year. Excluding discontinued operations, the bank earned 55 cents per share. Revenue came in at $3.8 billion, up 14% from the previous year, driven largely by an increase in fee income.
The average equity analyst had been expecting earnings of 57 cents per share, on average, with revenue of $3.6 billion, according to
Investors were also watching Bank of New York Mellon closely to see whether the firm would raise its dividend. The
has reviewed the capital plans of the 19 largest banks, including BoNY Mellon. As a firm without much exposure to consumer lending which appears to have plenty of capital, Wall Street has been expecting BoNY Mellon to be among the first to announce a dividend hike.
"We delivered 12% growth in fee revenue this quarter, reflecting improving markets, the underlying strength of our business model and continued investment in our businesses," Chairman and CEO Robert Kelly said in a statement. "Asset quality was exceptionally strong throughout the year and our regulatory capital ratios grew, reflecting our strong capital generation."
-- Written by Lauren Tara LaCapra in New York
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