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Bank of New York Mellon Profit Halved In Third Quarter

The Bank of New York Mellon Thursday reported sharply lower third-quarter earnings, as the financial crisis slowed business activity and pressured margins, but still managed to beat analysts' EPS expectations.

The company said it earned 26 cents a share, or $305 million dollars, on a continuing operations basis, vs. 56 cents, or $642 million, in the year-ago period. Revenue was $3.63 billion.

Excluding one-time charges, profit totaled $908 million, or 79 cents per share.

Thomson Reuters' consensus forecast was 66 cents a share on revenue of $3.69 billion forecast.

The company said results included costs of 46 cents a share for merger and integration expense. It also took a hit from securities investments related to Lehman Brothers' chapter 11 filing.

Bank of New York Mellon's Tier-1 capital ratio, which measures its ability to cover losses, ended Sept 30 at 9.33 percent, above the 6 percent regulatory minimum


"In the face of unprecedented market volatility our operating performance exceeded expectations, driven by the strength and diversity of our securities servicing and asset management businesses,:" the company said in a statement.

Bank of New York Mellon is one of nine big institutions talking part in the federal government's recently announced redcapitlaization plan. It also won the bidding to run the Treasury's auction of bad mortgage debt.

Citigroup Thursday reported a loss that nearly matched market expectations, coming in at 71 cents a share in the third quarter, on big writedowns.

JPMorgan Chase Wednesday reported better than-expected earnings.

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