BNY Mellon now authorized to repurchase $2.4B in shares by mid-2019
While we continued to benefit from the positive impact of higher interest rates and equity markets, albeit at a more modest pace than last quarter, we again saw some underlying franchise growth. Overall, the company remains strong, with some areas performing better than others," Charles Scharf, chairman and CEO, said. "We saw pockets of strength, in Investment Services, especially where we have differentiated capabilities such as clearance, collateral management, tri-party repo and liquidity services. Investment Management growth moderated as we saw some softness across the board in our asset flows," Scharf continued. "We remain disciplined and focused on deploying our resources. Currency translation and real estate costs impacted expense growth by 2 percent and, despite an increase in our investment in technology, all other expenses were up modestly," Scharf added. "Following the release of our CCAR results, we are now authorized to repurchase $2.4B in common shares by mid-2019, and we increased our common dividend 17% starting this quarter. While we were not surprised by the outcome given the severity of the assumptions in this year's test, our expectations for returning capital to shareholders over time have not changed," Scharf also noted.