The Bank of New York Mellon, which trades as BNY, reported second-quarter earnings per share of $2.45, up 27% year on year, on record total revenue of $5.7 billion.
Total revenue grew 13% from the same period a year earlier, with fee revenue up 11%. The firm delivered roughly 600 basis points of positive operating leverage, a pre-tax margin of 40% and a return on tangible common equity of 31%, according to the quarterly earnings release published on its investor relations site. Pre-tax operating margin rose to 39.8% from 36.6% a year earlier, and ROTCE to 31.3% from 27.8%.
BROAD-BASED GROWTH
Chief executive Robin Vince said growth was broad-based across Securities Services, Market and Wealth Services and Investment and Wealth Management, while net interest income rose 20% year on year to $1.4 billion.
Operating leverage, the gap between revenue growth and expense growth, came to about 600 basis points as noninterest expense rose 7% to $3.4 billion.
Vince said the performance was enabled by BNY's new commercial and platform operating models.
CAPITAL RETURNS UNDERPINNED
BNY returned $1.5 billion of capital to common shareholders in the quarter, comprising $371 million of dividends and $1.1 billion of share repurchases, for a total payout ratio of 87% year to date.
The result also lands amid an unusually strong reporting season for large US banks, with peers posting record trading and wealth results.
"Halfway through the year, our performance underscores BNY's strong momentum," Vince said.