The Bank Of New York Mellon Corporation (NYSE:BK) shares are trading higher in the premarket session on Friday after its third-quarter results.

The finance behemoth reported third-quarter adjusted earnings per share of $1.52 (+20% YoY), beating the street view of $1.42.

Quarterly revenue of $4.648 billion, an increase of 5% year-over-year, surpassed the analyst consensus of $4.542 billion.

Net interest income rose by 3% YoY, driven mainly by higher yields from the investment securities portfolio and balance sheet expansion, though partially offset by shifts in the deposit mix.

Fee revenue in the quarter grew 5% year over year to $3.404 billion. Investment revenue rose, reflecting a strategic equity loss in 3Q23 and better seed capital investment performance.

Noninterest expense for the quarter stood at $3.1 billion flat YoY, as higher investments and merit increases were offset by efficiency savings and a reduced FDIC assessment. Excluding notable items, it increased 1%.

The Bank of New York Mellon reported average deposits of $285 billion, which increased 9% year over year and remained flat sequentially.

Related: Higher Fee Income to Aid BNY Mellon’s Q3 Earnings, Subdued NIR to Hurt

The company stated that its third-quarter tier 1 leverage ratio of 6.0% decreased 4 bps year-over-year and increased 19 bps sequentially. Adjusted pre-tax operating margin totaled 33% (vs. 31% a year ago).

As of September-end, CET1 capital was $19.7 billion, and Tier 1 capital was $24.0 billion, up from June-end, due to earnings, partially offset by stock repurchases and dividends.

Dividend: BNY declared a common stock dividend of $0.47 per share, payable on November 1 to shareholders of record as of the close of business on October 21.

The bank returned $1.08 billion to common shareholders, including $353 million in dividends and $725 million in share repurchases, achieving a total payout ratio of 103% year-to-date.

Also Read: Banks Gear Up For Earnings Season: 15 Top Stock Picks Including Citigroup, Morgan Stanley, And Truist

“BNY reported strong third quarter results, reflecting growth across our three business segments and consistent execution against our strategic priorities, with assets under custody and/or administration exceeding $50 trillion for the first time,” commented Robin Vince, President and Chief Executive Officer.

“Our actions to run our company better, including our ongoing transition to a platforms operating model, are starting to deliver progress toward our medium-term financial targets and additional capacity to reinvest for growth through new and enhanced client solutions,” added Vince.

Price Action: BK shares are trading higher by 2.07% to $75.99 premarket at the last check Friday.

Photo by JHVEPhoto via Shutterstock