The company's pretax operating margin for the third quarter was 26%, declining from 30% in the second quarter, and reflecting the revenue decline, as noninterest expenses declined slightly. In the third quarter of 2012, the pretax operating margin was 27%. The adjusted third-quarter return on tangible common equity was a solid 21.5%, although it was down from 25.2% the previous quarter and 22.5% a year earlier. BNY Mellon CEO Gerald Hassell said in the company's earnings release that he was "pleased to report strong year-over-year revenue and earnings growth in our Investment Management and Investment Services businesses." The CEO added the bank continues "to remain ahead of our Operational Excellence initiatives goals, the savings from which have provided us the flexibility to make targeted investments in our platforms and service applications to deliver the full breadth of our global capabilities." "Finally, we continue to strengthen our balance sheet and capital position, as we generated more than $1 billion of estimated Basel III Tier 1 common equity and once again delivered a very healthy return on tangible common equity for our shareholders," he said. Bank of New York Mellon's shares were up over 1% in early trading to $31.25. Jefferies analyst Ken Usdin in a note published soon after the earnings release wrote that "On the surface, core EPS looks to be inline with consensus ($0.57) with a stronger-than-expected spread income result and solid cost control offsetting softness in core fee lines." He added that BNY Mellon's "Basel III Tier 1 common ratios jumped meaningfully and are now above 10%, but share buybacks slowed." The company repurchased $122 million worth of common shares during the third quarter, down from $330 million in the second quarter. Bank of New York Mellon in March received approval from the Federal Reserve for up to $1.35 billion in share repurchases through the first quarter of 2014. Usdin pointed out that BNY Mellon's expenses declined 2% in the third quarter from the second quarter, and that "Compensation increased only $7mm despite digesting an annual merit increase." The analyst rates Bank of New York Mellon a "hold," with a price target of $34.00. BNY data by YCharts Interested in more on Bank of New York Mellon? See TheStreet Ratings' report card for this stock.