BNY Mellon Releases Results of the 2020 Comprehensive Capital Analysis and Review and Dodd-Frank Act Stress Test

Rhea-AI Summary

BNY Mellon announced that its Stress Capital Buffer (SCB) requirement will be 2.5%, effective October 1, 2020, the minimum regulatory level. The Federal Reserve's 2020 Dodd-Frank Act Stress Test results showcase BNY Mellon's strong capital position, with the lowest peak-to-trough reduction in CET1 capital compared to peers. The company plans to maintain its quarterly cash dividend of $0.31 per share, subject to board approval, and will not repurchase common stock in Q3 2020. The company emphasizes its commitment to balance sheet strength and operational resiliency.

Positive

• Stress Capital Buffer requirement set at 2.5%, the regulatory minimum, indicating compliance.
• DFAST results indicate a strong capital position with low peak-to-trough reduction in CET1 capital compared to peers.
• Intention to maintain a quarterly cash dividend of $0.31 per share, reflecting confidence in financial stability.

Negative

• No common stock repurchases planned for Q3 2020, indicating potential limitations on shareholder returns.

NEW YORK, June 29, 2020 /PRNewswire/ -- BNY Mellon announced that the Federal Reserve has notified the company that its Stress Capital Buffer (SCB) requirement will be 2.5%¹, equal to the regulatory minimum, effective as of October 1, 2020.  Additionally, on June 25, 2020, the Federal Reserve released the results of the 2020 Dodd-Frank Act Stress Test (DFAST), which demonstrate the resiliency and strength of BNY Mellon's business model and capital position.

"We are pleased with the DFAST results and believe that our business model positions us well in this uncertain environment.  These results demonstrate how our company performs in times of stress – we experienced the lowest peak-to-trough reduction in CET1 capital², well below the minimum SCB requirement.  We are confident in our ability to maintain our balance sheet strength, continue to support employees and clients, invest for future growth and deliver operational resiliency during this challenging period," said Todd Gibbons, Chief Executive Officer of BNY Mellon.

The company intends to maintain its quarterly cash dividend on common stock of $0.31 per share, subject to approval by its board of directors.

The company will not conduct open market common stock repurchases during the third quarter of 2020 and will resume our common share repurchase program as early as possible, depending on factors such as prevailing market conditions, our outlook for the economic environment, and the additional capital analysis required by the Federal Reserve. The latter is required of all participating CCAR firms and will occur later this year.

About BNY Mellon
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries. As of March 31, 2020, BNY Mellon had $35.2 trillion in assets under custody and/or administration, and $1.8 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.

¹ BNY Mellon expects that its final SCB will be confirmed by the Federal Reserve later in 2020.
² Relative to all other DFAST participating peer U.S. Global Systemically Important Banks.

Contacts:

Media
Jennifer Hendricks Sullivan
+1 212 635 1374
jennifer.h.sullivan@bnymellon.com

Analysts
Magda Palczynska 
+1 212 635 8529 
magda.palczynska@bnymellon.com  

View original content:http://www.prnewswire.com/news-releases/bny-mellon-releases-results-of-the-2020-comprehensive-capital-analysis-and-review-and-dodd-frank-act-stress-test-301085397.html

SOURCE BNY Mellon

FAQ

What is BNY Mellon's Stress Capital Buffer requirement?

BNY Mellon's Stress Capital Buffer requirement is set at 2.5%, effective October 1, 2020.

What did the 2020 Dodd-Frank Act Stress Test reveal for BNY Mellon?

The 2020 Dodd-Frank Act Stress Test revealed BNY Mellon's strong capital position, with a low reduction in CET1 capital.

What is BNY Mellon's quarterly cash dividend for 2020?

BNY Mellon intends to maintain its quarterly cash dividend at $0.31 per share, pending board approval.

Will BNY Mellon conduct stock repurchases in Q3 2020?

BNY Mellon will not conduct open market common stock repurchases during the third quarter of 2020.