People enter a Bank of New York Mellon office building in New York.
Gabriela Bhaskar/Bloomberg
Bank of New York Mellon posted third-quarter earnings better than analysts’ estimates but higher expenses and a decline in net interest income sent the stock tumbling Tuesday.
Bank of New York (ticker: BK) earned an adjusted $1.04 a share in the quarter, beating analysts’ forecasts of $1.01. Revenue of $4 billion also topped expectations of $3.95 billion.
Net interest revenue fell $641 million from $703 million in the year-earlier quarter. The growth in non-interest expenses for the third quarter was $2.9 billion, up roughly 9% from $2.6 billion in the quarter last year.
The stock was down 1.9% to $56.32 on Tuesday.
The company attributed growth in expenses to higher litigation reserves, revenue-related expenses and investments in growth, infrastructure and efficiency initiatives.
“Our financial performance this quarter reflects healthy and broad-based organic growth across our businesses as well as a supportive global markets backdrop,” said CEO Todd Gibbons.
Shares of Bank of New York have gained 35.25% this year through Monday’s close, while the S&P 500 has advanced 19.45% and the Dow Jones Industrial Average has gained 15.2%.
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