The wealth management business of BNY Mellon has reported revenues of $305m for the third quarter of 2021, an increase of 10% compared to $277m a year ago.
The Investment and Wealth Management division of BNY Mellon generated total revenues of $1.03bn for the quarter, up 12% compared to $918m last year. The investment management business contributed $727 to the division’s quarterly revenue.
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Pre-tax operating margin of the Investment and Wealth Management division rose to 34% from 27% in the third quarter of 2020.
The division’s pre-tax income during the quarter rose by 42% to $348m from $245m in the corresponding year-ago period.
At the end of the third quarter, wealth management client assets rose to $307bn from $265bn a year earlier, the company said in its earnings statement.
Overall, the BNY Mellon group reported net income applicable to common shareholders of $881m, a marginal rise of 1% compared to $876m last year. Total revenues stood at $4.03bn, an increase of 5% year-on-year.
BNY Mellon CEO Todd Gibbons said: “Our financial performance this quarter reflects healthy and broad-based organic growth across our businesses as well as a supportive global markets backdrop. Revenue of over $4bn was up 5% year-over-year, and fee revenue was up 6%, or 11% excluding the impact of money market fee waivers.
“Our operating margin of 29% was essentially flat compared to the third quarter of 2020 while we continued to make significant investments in our people, technology, efficiency and growth initiatives. i.
Gibbons added: “During the quarter we returned $2.3bn of capital to our shareholders, including almost $300m of common dividends and $2bn of share repurchases. We ended the quarter with a Tier 1 leverage ratio of 5.7%, which together with our continued capital generation, provides us meaningful capacity to continue investing in our businesses and returning excess capital to our shareholders.”
