The Bank of New York Mellon CorporationNYSE
Tue, Nov. 29, 3:11 PM
- More confidence that rates are rising for real this time, "wide-sweeping" regulatory changes to come, and a better FICC environment have analyst Brian Kleinhanzi upgrading Bank of America (BAC) and Goldman Sachs (GS +0.9%) to Outperform from Market Perform.
- Kleinhanzi keeps JPMorgan (JPM +0.8%) and Bank of New York (BK +0.2%) at Outperform.
- Turning to regional banks, KBW boosts its estimates for 2017 and 2018 for the large players, and upgrades Citizens Financial (CFG +1.9%) and Comerica (CMA +1.6%) to Outperform, while downgrading KeyCorp (KEY +0.3%) and PNC (PNC -0.2%) to Market Perform. The switch comes as KBW turns its focus on those lenders best positioned for a rising rate environment, and from regulatory relief, not to mention other levers should rates not rise.
- Source: Bloomberg
Tue, Nov. 8, 3:04 AM
- The SEC is looking into whether big banks have been mishandling securities in the arcane but sizable market for American depositary receipts, WSJ reports.
- The agency already sent subpoenas to four depositary banks - BNY Mellon (NYSE:BK), Citigroup (NYSE:C), Deutsche Bank (NYSE:DB) and JPMorgan (NYSE:JPM) - as it examines whether the institutions broke controls designed to prevent market abuse and tax fraud.
Fri, Oct. 28, 9:54 AM
Thu, Oct. 20, 6:33 AM
Wed, Oct. 19, 5:30 PM
Wed, Sep. 14, 11:03 AM
- It's no surprise that yield-starved financials are expected to be a big beneficiary of higher base rates, but the team at Goldman has six that stand to gain the most.
- Bank of America (NYSE:BAC), BNY Mellon (NYSE:BK), Citizens Financial (NYSE:CFG), Regions Financial (NYSE:RF), Schwab (NYSE:SCHW), and Zions Bancorp (NASDAQ:ZION) make the cut.
- Goldman sees an average 46% upside to normalized earnings for the group if rates go back to 3% (a long way off for even the most hawkish).
- Used to low and slow as far as rate hikes go, investors may be overlooking the potential for even one Fed move this year to be a positive catalyst. The team suggests taking a look at 6-month and 12-month calls on their recommendation list.
Tue, Sep. 13, 7:39 AM
- BNY Mellon (NYSE:BK) has been appointed by Tel Aviv's Clal Insurance to provide global custody, cash management, forex, and institutional accounting services for more than $7B in assets.
- Mellon's Christopher Porter: "BNY Mellon is seeing significant growth in assets under custody and management in Israel."
Thu, Sep. 1, 4:09 AM
- Despite an increasing regulatory burden and lackluster share performance, the U.S. banking industry just logged its most profitable quarter ever, according to figures from SNL Financial and S&P Global Market Intelligence.
- Earnings for the three-month period totaled $43.6B, compared to the $43.01B in Q2 of 2015, a 1.4% beat.
- On a sequential basis, the April-to-June period topped the previous quarter by $4.56B, an 11.7% rise.
- Related tickers: JPM, C, BAC, WFC, GS, MS, USB, BK, STT, PNC, COF
Wed, Aug. 24, 10:45 AM
- In the kind of development akin to the widespread use of computers, UBS, Deutsche Bank (NYSE:DB), Santander (NYSE:SAN), and Bank of New York Mellon (NYSE:BK) are teaming to develop a new form of digital cash to clear and settle financial trades using blockchain technology, according to the FT.
- While computers are great at first glance - Internet banking and ATM use should boost margins - electronic transactions still require thousands in back offices worldwide to check and process ... This is where blockchain comes in.
- The algorithm systems allows the number of those involved in verification to be significantly reduced. The finance industry spends $80B per year just on settling trades; throw in other electronic transactions, and that figure grows way larger. With digital ledgers, costs could drop to a fraction of that.
Wed, Aug. 24, 4:36 AM
- UBS (NYSE:UBS), Deutsche Bank (NYSE:DB), Santander (NYSE:SAN), BNY Mellon (NYSE:BK) and broker ICAP (OTCPK:IAPLF) have teamed up to create a digital currency called the "utility settlement coin.
- The firms hope that the currency will become an industry standard used to clear and settle financial trades over blockchain, the technology that bitcoin is based on.
- The banks and ICAP are pitching the idea to central banks and hope to launch the utility settlement coin in early 2018.
- The project is competing with similar initiatives from the likes of Citibank, Goldman Sachs and JPMorgan, which are developing separate digital currencies.
- "Today trading between banks and institutions is difficult, time-consuming and costly, which is why we all have big back offices," says Julio Faura, head of R&D and innovation at Santander. "This is about streamlining it and making it more efficient.
Fri, Jul. 22, 12:53 PM
- JPMorgan's (JPM +0.5%) departure would leave BNY Mellon (BK +1.4%) as the only bank left handling this niche corner of the $1.6T repo market.
- "This area is not core to our growth strategy," says JPMorgan's Michael Albanese.
- American banks in general have been backing away from what used to be the low cost, high volume repo market thanks to post-crisis rules heightening liquidity requirements and capital expenses.
Thu, Jul. 21, 6:31 AM
Wed, Jul. 20, 5:30 PM| Wed, Jul. 20, 5:30 PM | 13 Comments
Wed, Jun. 29, 5:05 PM
Thu, Jun. 23, 4:51 PM
- Ally Financial (NYSE:ALLY): Actual end of 2015 CET1 ratio of 9.2%, Q1 2018 CET1 ratio under severely adverse scenario of 6.1%, minimum 6.1%.
- American Express (NYSE:AXP): Actual 12.4%, Q1 2018 12.3%, minimum 11.4%.
- Bank of America (NYSE:BAC): Actual 11.6%, Q1 2018 8.1%, minimum 8.1%.
- BNY Mellon (NYSE:BK): Actual 11.5%, Q1 2018 11.2%; minimum 10.5%.
- BB&T (NYSE:BBT): 10.3%, 6.9%, 6.9%
- BBVA Compass (NYSE:BBVA): 10.7%, 6.5%, 6.5%.
- BMO Financial (NYSE:BMO): 11.9%, 5.9%, 5.9%.
- Capital One (NYSE:COF): 11.1%, 8.2%, 8.2%.
- Citigroup (NYSE:C): 15.3%, 9.2%, 9.2%.
- Citizens Financial (NYSE:CFG): 11.7%, 8.8%, 8.8%.
- Comerica (NYSE:CMA): 10.5%, 8.3%, 8.3%.
- Discover (NYSE:DFS): 13.9%, 12.4%, 11.9%.
- Fifth Third (NASDAQ:FITB): 9.8%, 6.8%, 6.8%.
- Goldman Sachs (NYSE:GS): 13.6%, 10.2%, 8.4%.
- HSBC N.A. (NYSE:HSBC): 15.7%, 9.1%, 9.1%.
- Huntington Bancshares (NASDAQ:HBAN): 9.8%, 5%, 5%.
- JPMorgan (NYSE:JPM): 12%, 8.3%, 8.3%.
- KeyCorp (NYSE:KEY): 10.9%, 6.4%, 6.4%.
- M&T (NYSE:MTB): 11.1%, 6.9%, 6.9%.
- Morgan Stanley (NYSE:MS): 16.4%, 10%, 9.1%.
- Northern Trust (NASDAQ:NTRS): 10.8%, 9.6%, 9.6%.
- PNC Financial (NYSE:PNC): 10.6%, 7.6%, 7.6%.
- Regions (NYSE:RF): 10.9%, 7.3%, 7.3%.
- Santander Holdings (NYSE:SAN): 12%, 11.8%, 11.8%
- State Street (NYSE:STT): 13%, 9.6%, 9.6%
- SunTrust (NYSE:STI): 10%, 7.5%, 7.5%.
- TD Group (NYSE:TD): 13.1%, 8.4%, 8.4%.
- U.S. Bancorp (NYSE:USB): 9.6%, 7.5%, 7.5%.
- Wells Fargo (NYSE:WFC): 11.1%, 7.2%, 7.2%.
- Zions (NASDAQ:ZION): 12.2%, 6.6%, 6.6%.
- Previously: All 33 banks pass this year's stress tests (June 23)
Thu, Jun. 16, 12:23 PM
- Increasing costs and weaker capital markets activity are a bad combination, but they're coming should the U.K. vote to exit the EU, says KBW's Brian Kleinhanzl, expecting a two-year transition period with those headwinds.
- Longer-term, though, Brexit should be a wash for the U.S. universal banks.
- As for the shorter-term, banks would need to have presence in both the U.K. and EU - the transition should be a manageable expense, but the run-rate costs would remain.
- Kleinhanzl sees JPMorgan (NYSE:JPM) and Goldman Sachs (NYSE:GS) as most exposed to the fallout thanks to the relatively large amount of income each generates from U.K. units. Citigroup and the custodial banks - BNY Mellon (NYSE:BK), State Street (NYSE:STT), Northern Trust (NASDAQ:NTRS) - should be less impacted since operations in the U.K. are smaller relative to the overall companies.