Yesterday, BNY Mellon reported its financial results for the first quarter of 2022 (Q1 2022). The financial services provider posted a sharp decline of nearly 11% in EPS as the number reached $0.86, compared to $0.97 in the first quarter of 2021.
Total revenue for the mentioned period came in at $3.9 billion, which is a marginal increase of almost 2% excluding a reduction related to Russia. Fee revenue decreased by 3%. However, net interest revenue climbed by almost 7% in Q1 2022.
As far as BNY Mellon’s market and wealth services are concerned, the total revenue remained flat. Income before taxes dipped by 10%. A revenue dip of 3% was observed across BNY Mellon’s Investment and Wealth Management division.
"We continued to see healthy underlying momentum across most of our businesses. Reported revenue of $3.9 billion was flat year-over-year or up 2% excluding an approximate $90 million reduction resulting from government sanctions and our actions related to Russia. We generated a significant amount of capital and returned close to 60% of earnings to our shareholders, primarily through common dividends. Throughout the quarter, we took actions in the investment securities portfolio to temper the immediate impact to capital from higher interest rates,” Todd Gibbons, the Chief Executive Officer at BNY Mellon, said.
Earlier this year, BNY Mellon announced a partnership with Chainalysis, a blockchain data platform, for crypto compliance.
Uncertain Environment
According to Gibbons, the uncertain environment across the global economy including the war in Ukraine and volatile markets present massive challenges for the financial sector.
“We are in an increasingly uncertain environment, including the war in Ukraine, volatile markets, and persistently higher inflation which will require more meaningful monetary policy adjustments. It is in times like these that our strong, lower risk balance sheet and the resiliency of our business model differentiates us,” Gibbons added.
