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The Bank of New York Reports Second Quarter Continuing EPS of $.59, Excluding Merger and Integration Expenses Continuing EPS of $.63
Asset Management and Securities Servicing Fee Revenue increased 21% vs. year ago period
MELLON REPORTS SECOND QUARTER CONTINUING EPS OF $.67, Asset Management and Securities Servicing Fee Revenue increased 20% vs. year ago period
Merger of THE BANK OF NEW YORK and MELLON Closed July 1, Strong revenue and earnings momentum from both companies
The Bank of New York Company, Inc., which on July 1, 2007 merged with Mellon Financial Corporation creating The Bank of New York Mellon Corporation (NYSE:BK) , reported second quarter income from continuing operations of $448 million and diluted earnings per share of 59 cents. The second quarter of 2007 included merger and integration expenses ($47 million) that amounted to approximately four cents per share. Excluding this amount, earnings per share from continuing operations in the second quarter of 2007 was 63 cents per share, an increase of 21% compared with income from continuing operations of $391 million, or 52 cents per share, in the second quarter of 2006. Income from continuing operations was $437 million, or 57 cents per share, in the first quarter of 2007, and excluding merger and integration expenses ($15 million) was 59 cents per share.
Since the fourth quarter of 2006, The Bank of New York's results have included the results of the corporate trust business acquired in a swap for The Bank of New York's retail and middle market banking businesses. This swap transaction closed on Oct. 1, 2006. The results for prior periods include the retail and middle market banking businesses in discontinued operations.
"The Bank of New York's second quarter results reflect continued revenue momentum in asset management and securities servicing," said Thomas A. Renyi, executive chairman of The Bank of New York Mellon. "The results in these businesses demonstrate our success in maintaining focus on our clients while successfully closing the merger with Mellon. We are now executing the disciplined, thoughtful integration plan that will support our goals for new business development and merger synergies."
Mellon Financial Corporation reported income from continuing operations of $281 million, or 67 cents per share, in the second quarter of 2007. Mellon's results for the second quarter of 2007 include the impact of pre-tax charges associated with merger and integration expenses ($116 million), early redemption of junior subordinated debentures ($46 million), exit costs associated with excess office space ($30 million), and a litigation reserve charge ($5 million), as well as the net benefit of a tax settlement and other discrete tax items ($122 million). Together, these amounts reduced earnings per share for the second quarter of 2007 by approximately two cents. Excluding these amounts, earnings per share from continuing operations in the second quarter of 2007 was 69 cents and increased 28% compared to income from continuing operations of $223 million, or 54 cents per share, in the second quarter of 2006. Income from continuing operations was $243 million, or 58 cents per share, in the first quarter of 2007.
"Mellon enjoyed an excellent quarter with strong momentum in both revenue and earnings, including substantial operating leverage. Together with our colleagues from The Bank of New York, we have created a global financial services growth company whose future prospects are outstanding," said Robert P. Kelly, chief executive officer of The Bank of New York Mellon. "It was encouraging to note strong and continuing business momentum in both companies, a key goal going forward."
On July 10, 2007, The Bank of New York Mellon declared a quarterly common stock dividend of 24 cents per share. This cash dividend is payable on Aug. 3, 2007, to shareholders of record as of the close of business on July 25, 2007.
For more information: http://www.bnymellon.com/

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