BNY sees Q4 profit slump

Share with others:

Print Email Read Later

Bank of New York Mellon on Friday said fourth-quarter profit, including a one-time charge, slumped 17 percent to $513 million, or 44 cents per share, compared with $622 million, or 53 cents per share, the previous year.

Excluding an after-tax loss related to a write-down on an equity investment, the New York-based trust, custody and asset management giant saw earnings edge up to $628 million, or 54 cents per share.

The $115 million after-tax loss was on its investment in ConvergEx, a New York broker that paid multimillion-dollar fines and admitted to government charges of overcharging clients through hidden fees.

BNY Mellon's revenue for the final three months of 2013 was flat at $3.6 billion.

For the full year, the company earned $2.05 billion, or $1.74 per share, down about 16 percent from $2.43 billion, or $2.03 per share, in 2012.

Excluding an unfavorable tax court ruling that disallowed certain foreign tax credits, BNY Mellon earned $2.64 billion, or $2.24 per share, in 2013.

Last year "marked a year of strong growth in our core investment services and investment management fees," chairman and CEO Gerald Hassell said in a statement. He said the company exceeded its cost-cutting goals and would remain focused on controlling expenses this year and beyond.

BNY Mellon has maintained a large presence in Pittsburgh since merging with the old Mellon Financial here in 2007.

Results were reported before the opening of the stock market. Shares fell $1.22, or 3.6 percent, on Friday to close at $32.70.

Patricia Sabatini: or 412-263-3066.

Join the conversation:

Commenting policy | How to report abuse
To report inappropriate comments, abuse and/or repeat offenders, please send an email to and include a link to the article and a copy of the comment. Your report will be reviewed in a timely manner. Thank you.
Commenting policy | How to report abuse

Create a free PG account.
Already have an account?

You have 2 remaining free articles this month

Try unlimited digital access

If you are an existing subscriber,
link your account for free access. Start here

You’ve reached the limit of free articles this month.

To continue unlimited reading

If you are an existing subscriber,
link your account for free access. Start here