With over $46 trillion in assets under custody or administration, Bank of New York Mellon is the largest custodian in the world. While core custody can be an undifferentiated offering, scale and the stickiness of clients have helped the firm generate double-digit returns on tangible equity.
Compared with peers State Street and Northern Trust, BNY Mellon is the most diversified with its seven lines of business. It is also less exposed to movements in equity markets.
Fee compression and lower margins in asset management will result in asset managers being more conscious of their costs, limiting the pricing power of custody banks.
|
Metric
|
BK
|
JPM
|
NTRS
|
|---|---|---|---|
Price/Earnings (Normalized) | 9.66 | 9.27 | 12.40 |
Price/Book Value | 1.04 | 1.58 | 1.52 |
Price/Sales | 2.34 | 3.11 | 2.48 |
Price/Cash Flow | 7.13 | 6.91 | 8.77 |
|
Metric
|
BK
|
JPM
|
NTRS
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | — | — | — |
|
Metric
|
BK
|
JPM
|
NTRS
|
|---|---|---|---|
Return on Assets (Normalized) | 0.89% | 1.33% | 0.78% |
Return on Equity (Normalized) | 10.40% | 18.39% | 11.34% |
Return on Invested Capital (Normalized) | — | — | — |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|
BLK
| BlackRock Inc | Jgcj | $110.8 Bil | |
BX
| Blackstone Inc | Pqkhfd | $84.4 Bil | |
KKR
| KKR & Co Inc Ordinary Shares | Jhsdfj | $68.1 Bil | |
AMP
| Ameriprise Financial Inc | Yzpktkt | $36.2 Bil | |
STT
| State Street Corporation | Thz | $22.8 Bil | |
TROW
| T. Rowe Price Group Inc | Szwgp | $22.0 Bil | |
NTRS
| Northern Trust Corp | Dcnk | $16.6 Bil | |
CG
| The Carlyle Group Inc | Hjjdlf | $13.3 Bil | |
BEN
| Franklin Resources Inc | Crhmgf | $12.6 Bil |
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