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BNY Mellon Sees Jump in Earnings for Q3

During Q3 2017 Bank of New York Mellon Corporation (BNY Mellon) reported a net income of $983 million, or $0.94 per diluted common share. The bank is up year-over-year (in Q3 2016 the bank reported a net income of $974 million per diluted common share) as well as quarter-over-quarter (the bank reported $926 million in common net income in Q2 2017).

In addition to a jump in earnings, during the third quarter the bank also saw a change in leadership, with newly appointed CEO Charles W. Scharf.

"Since arriving in July, I have been spending time with clients, regulators, business leaders, and employees, listening and learning.  Based on what I have seen, I like our business model and what we do,” Scharf said. “While satisfied with our progress, our leadership team is not satisfied with our performance, as we see further opportunities to drive revenue growth and increase our efficiencies. We will do this while maintaining our strong capital position and continuing to deliver high returns to our shareholders.”

Total revenue for the quarter showed a two percent year-over-year increase to $4.02 billion with BNY Mellon returning more than $900 million to shareholders through share repurchases and dividends. The bank had a $6 million provision for credit losses during this time.

In terms of mortgage performance, as of September 20, 2017, BNY Mellon had $80 million in nonperforming residential mortgages, compared to $84 million the previous quarter and $91 million at the end of December 2016. Overall, nonperforming assets decreased by $6 million compared with June 20, 2017 and 13 million compared with December 31, 2016.

"Our third quarter performance was consistent with our expectation and some areas showed reasonable growth, such as asset servicing, clearing services and investment management.  Other areas underperformed, such as depositary receipts, which also reduced foreign exchange trading revenue," Scharf said.

"Our third quarter performance was consistent with our expectation and some areas showed reasonable growth, such as asset servicing, clearing services and investment management.  Other areas underperformed, such as depositary receipts, which also reduced foreign exchange trading revenue," he continued.

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