Bank of New York Mellon
Market Cap
US$40.6b
Last Updated
2020/02/24 02:38 UTC
Data Sources
Company Financials +
Executive Summary
The Bank of New York Mellon Corporation provides a range of financial products and services to institutions, corporations, and high net worth individuals in the United States and internationally.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -5.6% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet established dividend payer.
Similar Companies
Share Price & News
How has Bank of New York Mellon's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: BK has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.9%
BK
-1.5%
US Capital Markets
-1.1%
US Market
1 Year Return
-14.9%
BK
15.4%
US Capital Markets
17.8%
US Market
Return vs Industry: BK underperformed the US Capital Markets industry which returned 15.4% over the past year.
Return vs Market: BK underperformed the US Market which returned 17.8% over the past year.
Shareholder returns
| BK | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.9% | -1.5% | -1.1% |
| 30 Day | -2.0% | 1.0% | 1.5% |
| 90 Day | -7.7% | 3.9% | 6.6% |
| 1 Year | -12.7%-14.9% | 17.6%15.4% | 20.2%17.8% |
| 3 Year | 1.9%-4.4% | 37.5%29.8% | 47.5%38.1% |
| 5 Year | 25.3%13.6% | 78.9%62.4% | 71.2%52.4% |
Price Volatility Vs. Market
How volatile is Bank of New York Mellon's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
How Much Of The Bank of New York Mellon Corporation (NYSE:BK) Do Institutions Own?1 month ago | Simply Wall St
Is Now The Time To Put Bank of New York Mellon (NYSE:BK) On Your Watchlist?1 month ago | Simply Wall St
The Bank of New York Mellon Corporation (NYSE:BK) Vies For A Place In Your Dividend Portfolio: Here's WhyValuation
Is Bank of New York Mellon undervalued compared to its fair value and its price relative to the market?
12.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BK ($45.04) is trading below our estimate of fair value ($51.72)
Significantly Below Fair Value: BK is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: BK is good value based on its PE Ratio (9.9x) compared to the Capital Markets industry average (33.9x).
PE vs Market: BK is good value based on its PE Ratio (9.9x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: BK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: BK is good value based on its PB Ratio (1.1x) compared to the US Capital Markets industry average (6.6x).
Next Steps
Future Growth
How is Bank of New York Mellon forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
-5.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BK's earnings are forecast to decline over the next 3 years (-5.6% per year).
Earnings vs Market: BK's earnings are forecast to decline over the next 3 years (-5.6% per year).
High Growth Earnings: BK's earnings are forecast to decline over the next 3 years.
Revenue vs Market: BK's revenue is expected to decline over the next 3 years (-1.5% per year).
High Growth Revenue: BK's revenue is forecast to decline over the next 3 years (-1.5% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BK's Return on Equity is forecast to be low in 3 years time (9.7%).
Next Steps
Past Performance
How has Bank of New York Mellon performed over the past 5 years?
10.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BK has high quality earnings.
Growing Profit Margin: BK's current net profit margins (25.9%) are higher than last year (24.8%).
Past Earnings Growth Analysis
Earnings Trend: BK's earnings have grown by 10% per year over the past 5 years.
Accelerating Growth: BK's earnings growth over the past year (5%) is below its 5-year average (10% per year).
Earnings vs Industry: BK earnings growth over the past year (5%) underperformed the Capital Markets industry 8.4%.
Return on Equity
High ROE: BK's Return on Equity (10.7%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Bank of New York Mellon's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: BK has a low level of unsold assets or inventory.
Debt Coverage by Assets: BK's debt is covered by short term assets (assets are 2.6x debt).
Financial Institutions Analysis
Asset Level: BK's level of assets compared to its equity is low.
Allowance for Bad Loans: BK has a sufficient allowance for bad loans.
Low Risk Liabilities: BK's liabilities are made up of primarily low risk sources of funding.
Loan Level: BK has an acceptable proportion of non-loan assets held.
Low Risk Deposits: BK's loans are broadly funded by customer deposits.
Level of Bad Loans: BK has an appropriate level of bad loans (0.16%)
Next Steps
Dividend
What is Bank of New York Mellon's current dividend yield, its reliability and sustainability?
2.75%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BK's dividend (2.75%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: BK's dividend (2.75%) is low compared to the top 25% of dividend payers in the US market (3.73%).
Stability and Growth of Payments
Stable Dividend: BK's dividends per share have been stable in the past 10 years.
Growing Dividend: BK's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (26%), BK's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: BK's dividends in 3 years are forecast to be well covered by earnings (32.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.1yrs
Average management tenure
CEO
Todd Gibbons (62yo)
0.4yrs
Tenure
US$7,446,178
Compensation
Mr. Thomas P. Gibbons, also known as Todd, has been an Interim Chief Executive Officer and Director of Bank of New York Mellon Corporation since September 27, 2019. Mr. Gibbons served as Chief Executive O ...
CEO Compensation Analysis
Compensation vs Market: Todd's total compensation ($USD7.45M) is below average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Todd's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Interim CEO & Director | 0.4yrs | US$7.45m | 0.036% $14.6m | |
| Chief Financial Officer | 2.1yrs | US$2.61m | 0.012% $4.9m | |
| Senior Executive VP & Chief Information Officer | 2.7yrs | US$5.58m | 0.0052% $2.1m | |
| Senior EVP & CEO of Investment Management | 8.8yrs | US$8.88m | 0.0097% $3.9m | |
| Senior EVP & Head of Operations | 1yrs | no data | 0.0017% $689.6k | |
| Chief Technology Officer | 1.3yrs | no data | no data | |
| Global Head of Investor Relations | 0.9yrs | no data | no data | |
| Chief Compliance & Ethics Officer | 0yrs | no data | no data | |
| Senior EVP & General Counsel | 5.8yrs | no data | 0.0077% $3.1m | |
| Global Head of Corporate Communications | 2.8yrs | no data | no data |
2.1yrs
Average Tenure
58yo
Average Age
Experienced Management: BK's management team is considered experienced (2.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Interim CEO & Director | 0.4yrs | US$7.45m | 0.036% $14.6m | |
| Independent Director | 12.6yrs | US$279.96k | 0.00049% $198.8k | |
| Independent Director | 12.6yrs | US$270.79k | 0.00044% $178.5k | |
| Independent Director | 0.8yrs | no data | no data | |
| Independent Director | 5.8yrs | US$269.96k | 0.0020% $811.3k | |
| Independent Director | 3.2yrs | US$249.96k | no data | |
| Independent Director | 3.3yrs | US$374.96k | 0.000070% $28.4k | |
| Independent Chairman of the Board | 0.4yrs | US$329.96k | 0.0023% $920.9k | |
| Independent Director | 3.2yrs | US$249.96k | 0.00041% $166.3k |
3.2yrs
Average Tenure
62yo
Average Age
Experienced Board: BK's board of directors are considered experienced (3.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
The Bank of New York Mellon Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: The Bank of New York Mellon Corporation
- Ticker: BK
- Exchange: NYSE
- Founded: 1784
- Industry: Asset Management and Custody Banks
- Sector: Diversified Financials
- Market Cap: US$40.567b
- Shares outstanding: 900.68m
- Website: https://www.bnymellon.com
Number of Employees
Location
- The Bank of New York Mellon Corporation
- 240 Greenwich Street
- New York
- New York
- 10286
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BK | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1969 |
| BN9 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1969 |
| BK * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1969 |
| 0HLQ | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1969 |
| BN9 | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Jan 1969 |
| BONY | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 1969 |
| BK.PRC | NYSE (New York Stock Exchange) | DP1/4000 PFD-C | US | USD | Sep 2012 | |
| A1HK20 | DB (Deutsche Boerse AG) | PERP JR D NT4.5% | DE | USD | May 2013 | |
| BONY34 | BOVESPA (Bolsa de Valores de Sao Paulo) | EACH BDR REPR 1 COM STK USD0.01 | BR | BRL | Aug 2015 |
Biography
The Bank of New York Mellon Corporation provides a range of financial products and services to institutions, corporations, and high net worth individuals in the United States and internationally. The company operates through two segments, Investment Management and Investment Services. It offers investment management, custody, foreign exchange, fund broker-dealer, collateral and liquidity, clearing, corporate trust, global payment, trade finance, and cash management services, as well as securities finance and depositary receipts. The company also provides mutual funds, separate accounts, and wealth management and private banking services; and trust and registered investment advisory services. In addition, it engages in leasing, corporate treasury, derivative and other trading, corporate and bank-owned life insurance, renewable energy investment, and business exit activities. The Bank of New York Mellon Corporation was founded in 1784 and is headquartered in New York, New York.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/24 02:38 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.