BNY Mellon Q1 earnings helped by strong client activity, market appreciation

• Bank of New York Mellon's (NYSE:BK) Pershing, Asset Servicing and foreign exchange businesses benefited from "healthy client activity and market levels," said BK CEO Todd Gibbons.
• Meanwhile, Investment and Wealth Management also benefited from market appreciation as well as continued investment in its products and services.
• Q1 EPS of 97 cents beats the average analyst estimate of 86 cents and increased from 79 cents in Q4 2020; declined from $1.05 in Q1 2020.
• BK stock rises 0.8% in premarket trading.
• Provision for credit losses was a benefit of $83M vs. provision for credit loss of $15M in Q4 and $169M in Q1 2020.
• Repurchased 16.8M common shares for $699M during Q1.
• Fee revenue of $3.26B increased 5% Q/Q and 1% Y/Y; excluding money market fee waivers, fee revenue rose 6% Y/Y.
• Net interest revenue of $655M fell 4% Q/Q and 20% Y/Y.
• Total revenue of $3.92B exceeds the consensus of $3.85B and rose 3% Q/Q; fell 1% Y/Y.
• Pretax operating margin of 29% increased from 24% in Q4 and slipped from 30% in Q1 2020.
• Assets under custody and/or administration were $41.7T, up 18% Y/Y, mostly due to higher market values, net new business and the favorable impact of a weaker U.S. dollar.
• Assets under management of $2.2T rose 23% Y/Y, reflecting higher market values, favorable impact of a weaker U.S. dollar (mainly against the British pound), and net inflows.
• Investment Services revenue of $2.99B increased 3% Q/Q and fell 8% Y/Y.
• Investment and Wealth Management revenue of $991M was roughly flat vs. $990M in Q4 2020 and up 10% Y/Y.
• Conference call at 8:00 AM ET.
• Previously (April 16): Bank of New York Mellon EPS beats by $0.29, beats on revenue