(Bloomberg) -- Bank of New York Mellon Corp. surged to a record high after reporting better-than-expected net interest income and offering a “cautiously optimistic” forecast for the rest of the year.
Net interest income was $1.03 billion in the three-months through June, beating a Bloomberg consensus of analysts’ estimates by about $20 million. The higher-than-expected figure—down 6% year over year—came amid a slowing decline in non-interest bearing deposits, Chief Financial Officer Dermot McDonogh said on the company’s call to discuss results Friday.
“While we are cautiously optimistic, we remain humble as we head into the seasonally low summer months,” McDonogh said. “For now we will therefore keep our NII outlook for the full year 2024 unchanged: down 10% year-over-year.”
Revenue edged up thanks to growth in investment services fees and a big gain in foreign exchange sales. Total revenue rose 2% to $4.6 billion, beating expectations by about $100 million.
BNY rose as much as 5.3% in New York trading to a record $64.74. The stock is up 24% this year, compared with a 14% gain in the KBW Bank Index.
“Halfway through the year, we’re pleased with the progress that we have made and how it is reflected in both improved financial performance to date as well as our building momentum,” Chief Executive Officer Robin Vince said on the call.
The company also entered a collaboration with BlackRock Inc. to overhaul the investment platform of AIA Group Ltd., which Vince cited as an example of BNY combining all of the sectors of its business to improve client experience and operational efficiency.
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