Analyst Note| Rajiv Bhatia, CFA |
Low interest rates continue to take a bite out of wide-moat rated Bank of New York Mellon’s profits through lower net interest income and higher money market fee waivers. Revenue of $3.92 billion beat the FactSet consensus estimate of $3.84 billion and diluted earnings per share of $0.97 beat the consensus of $0.87. We attribute the EPS beat to equity market appreciation, elevated client activity, and provision releases. We will maintain our fair value estimate of $48 on BNY Mellon’s shares.