The Bank of New York Mellon Corporation (BK) has reported a 197.42 percent jump in profit for the quarter ended Dec. 31, 2015. The company has earned $693 million, or $0.57 a share in the quarter, compared with $233 million, or $0.18 a share for the same period last year.
Revenue during the quarter went down marginally by 2.72 percent to $3,547 million from $3,646 million in the previous year period. Net interest income for the quarter rose 6.74 percent over the prior year period to $760 million. Non-interest income for the quarter rose 0.51 percent over the last year period to $2,950 million.
The Bank of New York Mellon Corporation has made provision of $163 million for loan losses during the quarter, up 16,200 percent from $1 million in the same period last year.
Net interest margin improved 8 basis points to 0.99 percent in the quarter from 0.91 percent in the last year period.
"Gerald L. Hassell, chairman and chief executive officer, and Thomas P. Gibbons, vice chairman and chief financial officer, "along with other members of executive management from The Bank of New York Mellon Corporation."
Assets outpace liabilities growth
Total assets stood at $393,780 million as on Dec. 31, 2015, up 4.72 percent compared with $376,021 million on Dec. 31, 2014. On the other hand, total liabilities stood at $354,805 million as on Dec. 31, 2015, up 2.37 percent from $346,600 million on Dec. 31, 2014.
Loans outpace deposit growth
Net loans stood at $63,546 million as on Dec. 31, 2015, up 7.81 percent compared with $58,941 million on Dec. 31, 2014. Deposits stood at $279,610 million as on Dec. 31, 2015, up 5.17 percent compared with $265,869 million on Dec. 31, 2014.
Investments stood at $126,547 million as on Dec. 31, 2015, down 2.01 percent or $2,597 million from year-ago. Shareholders equity stood at $38,037 million as on Dec. 31, 2015, up 1.59 percent or $596 million from year-ago.
At the same time, return on equity increased 490 basis points to 7.10 percent in the quarter from 2.20 percent in the last year period.
Credit quality deteriorates
The Bank of New York Mellon Corporation witnessed a deterioration in credit quality during the quarter. Nonperforming assets moved up 128.12 percent or $164 million to $292 million on Dec. 31, 2015 from $128 million on Dec. 31, 2014. Nonperforming assets to total loans was 0.46 percent in the quarter, up from 0.22 percent in the last year period.
Tier-1 leverage ratio stood at 12.30 percent for the quarter, up from 12.20 percent for the previous year quarter. Equity to assets ratio was stable at 9.70 percent in the quarter, when compared with the last year period. Book value per share was $32.69 for the quarter, up 1.87 percent or $0.60 compared to $32.09 for the same period last year.
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