Bank of New York Mellon Corp BK
Q2 2013 Earnings Call Transcript

Transcript Call Date 07/17/2013

Operator: Good morning, ladies and gentlemen, and welcome to the Second Quarter 2013 Earnings Conference Call hosted by BNY Mellon. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. In the question-and-answer session please limit your questions to no more than two which will permit multiple participants with questions for the management team to have an opportunity to ask them. You may return to the queue if you have a follow-up question. Please note that this conference call webcast will be recorded and will consist of copyrighted materials. You may not record or rebroadcast these materials without BNY Mellon's consent.

I would now turn the call over to Mr. Andy Clark. Mr. Clark, you may begin.

Andy Clark - IR: Thanks, Wendy, and welcome, everyone. With us today are Gerald Hassell, our Chairman and CEO; Todd Gibbons, our CFO; as well as several members of our executive management team.

Before we begin, let me remind you that our remarks today may include forward-looking statements. Actual results may differ materially from those indicated or implied by the forward-looking statements as a result of various factors.

These factors include those identified in the cautionary statement on Page 15 of the press release, and those identified in our documents filed with the SEC that are available on our website, Forward-looking statements in this call speak only as of today, July 17, 2013 and we will not update forward-looking statements.

Our press release and earnings review are available on our website and we will be using the earnings review to discuss our results.

Now, I'd like to turn the call over to Gerald. Gerald?

Gerald L. Hassell - Chairman and CEO: Thanks, Andy and good morning, everybody and welcome. As you saw from the release for the second quarter we reported earnings of $0.71 per share. This included an after-tax gain of $0.09 per share related to an equity investment.

Now looking at how our business model performed, we believe we earned about $0.58, $0.59 per share on a core basis. Todd will take you through the numbers in just a moment and how we get there. Clearly, the headline for the quarter was strong revenue growth across all of our businesses without exception. Total revenues reached a record $4 billion for the quarter. After excluding the impact of the investment gain, revenues were up 6%. It’s a clear sign of how our business model benefitted from better market conditions during the quarter. But more importantly it’s a sign of our success and then collaborating across our businesses to deliver solutions our clients need.

Earnings from investment management continue to have strong revenue growth again in the quarter. This quarter investment management benefitted from the 15th consecutive quarter of long-term inflows and improved equity value. We had net long-term flows of $21 billion with particular strength in the liability-driven investment area, certain equity and fixed income funds. Our success in attracting new assets helped drive a 10% increase in assets under management year-over-year to a record $1.43 trillion.

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