Group 1 - The core focus of the article is on the upcoming earnings reports from major banks and their potential impact on the stock market, alongside the significance of the December CPI report [1] - Major banks including JPMorgan Chase and BNY Mellon are set to release their earnings today, with JPMorgan's CEO Jamie Dimon expected to share insights on the market and the U.S. economy [1] - Other banks such as Bank of America, Citigroup, and Wells Fargo will report their earnings tomorrow, while Morgan Stanley, Goldman Sachs, and BlackRock will follow on Thursday [1] Group 2 - Delta Air Lines is also scheduled to announce its earnings today, indicating a broader interest in the performance of the airline sector [1] - Taiwan Semiconductor Manufacturing Company (TSMC) will disclose its fourth-quarter earnings on Thursday, which is particularly noteworthy given its role as a bellwether for the semiconductor industry amid prevailing AI valuation risks [1]

Core Viewpoint - The Bank of New York Mellon Corporation (BK) is expected to report increased quarterly revenues and earnings for the fourth quarter and 2025 results on January 13, before market open [1][9]. Financial Performance - In the last reported quarter, BK's earnings exceeded the Zacks Consensus Estimate, driven by a rise in fee revenues and net interest income (NII), along with a provision benefit [2]. - The consensus estimate for fourth-quarter earnings is $1.97 per share, reflecting a 14.5% increase from the previous year [3]. - The consensus estimate for 2025 earnings is $7.40 per share, indicating a year-over-year growth of 22.7% [4]. Revenue Estimates - The consensus estimate for total investment services fees is $2.61 billion, suggesting a 7.1% increase from the year-ago quarter [5]. - Financing-related fees are estimated at $56 million, indicating a 5.7% year-over-year rise [5]. - The total fees and other revenues are projected to be $3.85 billion, reflecting a 5.3% increase from the previous year [7]. Net Interest Income (NII) - The consensus estimate for NII is $1.27 billion, indicating a 6.5% year-over-year rise [10]. - Despite recent interest rate cuts, NII is expected to increase due to robust loan growth and stable funding costs [9][10]. Expense Outlook - Overall expenses are anticipated to rise due to inflationary pressures and technology upgrades, with fourth-quarter non-interest expenses estimated at $3.34 billion, suggesting a marginal year-over-year decline [11]. - Management expects 2025 expenses to increase by 3% from $12.5 billion in 2024, driven by higher revenue-related expenses [12]. Earnings Surprise Potential - BK has a strong earnings surprise history, with an average beat of 9.1% over the trailing four quarters [3]. - The Earnings ESP for BK is +1.25%, indicating a high likelihood of beating the Zacks Consensus Estimate [13].

Core Viewpoint - The Bank of New York Mellon Corporation (BK) is experiencing positive sentiment among analysts, with an increasing average price target and strong earnings performance, indicating a favorable outlook for the company. Group 1: Price Target and Analyst Sentiment - The average price target for BK has risen to $133.67, reflecting positive sentiment among analysts [2][6] - A year ago, the average price target was $118.38, showing a steady increase over time, suggesting strong belief in BK's ability to deliver shareholder value [4] Group 2: Earnings Performance - BK reported a non-GAAP earnings per share (EPS) of $1.91 in the third quarter, surpassing the consensus estimate of $1.77, with a year-over-year revenue growth of 9% [3][6] - The company is anticipated to see an increase in fourth-quarter earnings, driven by rising fee income and higher net interest income [2] Group 3: Growth Projections - BK's management has raised guidance through 2025, expecting a bottom line growth of 10% to 12%, supporting continued investment in the stock [4] - The positive momentum in bank stocks is expected to continue into 2026, with BK highlighted as a key player in the S&P 500 [5]

JPM stock slides in a buy zone as President Donald Trump aims to cap credit card interest rates. JPMorgan reports earnings Tuesday. ...

Core Insights - The Bank of New York Mellon Corporation (BK) is expected to report fourth-quarter and 2025 results on January 13, with anticipated year-over-year increases in revenues and earnings [1][9]. Financial Performance - In the last reported quarter, BK's earnings exceeded the Zacks Consensus Estimate, driven by increased fee revenues and net interest income (NII), along with a provision benefit [2]. - The consensus estimate for fourth-quarter earnings is $1.97 per share, reflecting a 14.5% increase from the previous year [3]. - The 2025 earnings estimate is $7.40 per share, indicating a year-over-year growth of 22.7% [4]. Revenue Estimates - The consensus estimate for total investment services fees is $2.61 billion, suggesting a 7.1% increase from the previous year [5]. - Financing-related fees are estimated at $56 million, indicating a 5.7% year-over-year rise [5]. - Total fees and other revenues are projected at $3.85 billion, reflecting a 5.3% increase from the prior year [7]. Net Interest Income (NII) - The consensus estimate for NII is $1.27 billion, indicating a 6.5% year-over-year rise, supported by robust loan growth and stable funding costs despite recent interest rate cuts [10]. - Management expects fourth-quarter 2025 NII to remain flat sequentially, with full-year NII projected to rise 12% year-over-year [10]. Expense Outlook - Overall expenses are expected to increase due to inflationary pressures and technology upgrades, with fourth-quarter non-interest expenses estimated at $3.34 billion, suggesting a marginal year-over-year decline [11]. - For 2025, expenses are expected to rise 3% from $12.5 billion in 2024, driven by higher revenue-related expenses and continued investments [12]. Earnings Surprise Potential - BNY Mellon has a strong earnings surprise history, with an average beat of 9.1% over the last four quarters [3]. - The Earnings ESP for BNY Mellon is +1.25%, indicating a high likelihood of beating the Zacks Consensus Estimate [13]. - The company currently holds a Zacks Rank 2 (Buy) [14].

Core Insights - The bank earnings season is set to begin with major banks like JPMorgan Chase and Bank of New York Mellon reporting first, followed by Citigroup, Wells Fargo, and Bank of America, with Goldman Sachs and Morgan Stanley following later [1] - Investment banking revenue is expected to boost Q4 performance, with Dealogic forecasting a 15% year-over-year increase in global investment banking revenue to $103 billion and a 42% rise in M&A deal volume to $5.1 trillion [1] - Consensus estimates for Q4 earnings per share (EPS) show Citigroup leading with a 21% year-over-year growth among global systemically important banks, while Bank of America is expected to see a 16.1% increase [1][4] Investment Banking Outlook - Morgan Stanley's model predicts a 9% year-over-year increase in investment banking fees for Q4, slightly below the market expectation of 11%, with M&A advisory fees expected to rise by 15% [2] - Market revenue is anticipated to grow by 8% year-over-year, surpassing the market expectation of 7%, with equity trading revenue projected to increase by 12% [2] - Analysts favor Bank of New York Mellon and State Street for positive earnings guidance due to their potential for improved tangible common equity returns and clearer operational leverage sustainability [2] M&A and Market Activity - M&A deal volume is projected to surge by 65% year-over-year in Q4, with the impact of completed transactions expected to extend into the following year [1] - Goldman Sachs reported a 40% increase in sponsor-led transaction volume for 2025, indicating a robust M&A environment [1] Earnings Estimates - The consensus EPS estimates for major banks include JPMorgan Chase at $4.98 (3.5% increase), Citigroup at $1.62 (20.7% increase), and Goldman Sachs at $11.54 (-3.4% decrease) [4] - Notable revisions in EPS expectations show significant upward adjustments for PNC Financial Services and Northern Trust, while Citigroup's estimates have been notably reduced [2][4] Future Projections - Looking ahead to 2026, growth in trading, wealth management, and investment banking is expected, although net interest income growth may slow due to declining interest rates [3] - Analysts highlight Bank of America, JPMorgan Chase, and Bank of New York Mellon as having the best prospects for net interest income growth in the coming year [3]

Group 1: Earnings Reports and Expectations - The earnings season for banks will commence with JPMorgan Chase and Bank of New York Mellon reporting on Tuesday, followed by Citigroup, Wells Fargo, and Bank of America on Wednesday, and Goldman Sachs and Morgan Stanley on Thursday [1] - Consensus expectations for Q4 earnings per share (EPS) show Citigroup leading with a 21% year-over-year growth among global systemically important banks, while Bank of New York Mellon is expected to grow by 15% in the trust bank category [1] - The most significant upward revisions in EPS consensus over the past six months are for Morgan Stanley (16% growth), Bank of New York Mellon (7.1% growth), and U.S. Bancorp [1] Group 2: Investment Banking and Market Activity - Investment banking revenue is projected to support Q4 performance, with Dealogic forecasting a 15% year-over-year increase in global investment banking revenue to $103 billion and a 42% rise in M&A deal volume to $5.1 trillion [1] - Morgan Stanley's model predicts a 9% year-over-year increase in investment banking fees for Q4, slightly below the market expectation of 11%, while M&A advisory fees are expected to rise by 15% [2] - The trading revenue is anticipated to grow by 8% year-over-year, with equity trading expected to increase by 12%, surpassing the 5% growth forecast for fixed income, foreign exchange, and commodities trading [2] Group 3: Future Outlook and Strategic Insights - Analysts expect that transaction, wealth management, and investment banking will drive growth in 2026, with a slowdown in net interest income growth due to declining interest rates [3] - The banks with the best prospects for net interest income growth in the coming year are Bank of America, JPMorgan Chase, and Bank of New York Mellon, while Morgan Stanley and JPMorgan are preferred in trading business [3] - In the M&A sector, Morgan Stanley, Goldman Sachs, and JPMorgan are viewed positively for their performance [3] Group 4: Accounting Changes and Financial Impact - Bank of America announced a change in accounting treatment related to tax-advantaged housing and renewable energy investments, which will minimally impact annualized net income [2] - Following the accounting change, Bank of America's retained earnings as of September 30, 2025, will decrease by $1.7 billion, reflecting cumulative effects from the timing differences in expense recognition [2]

Core Viewpoint - The Bank of New York Mellon Corporation (BK) is positioned as a leading financial institution with optimistic earnings forecasts for its upcoming quarterly report, indicating strong financial performance and strategic initiatives despite market fluctuations [1][2][3]. Financial Performance - Analysts project a 14% increase in earnings per share (EPS) year-over-year, with an expected EPS of $1.97 [2][6]. - Revenue is anticipated to reach $5.15 billion, reflecting a 5.2% growth compared to the same quarter last year [2][6]. Strategic Initiatives - BK has partnered with Google Cloud to enhance its Eliza AI platform, demonstrating a commitment to innovation [3][6]. - Despite this strategic move, BK's shares experienced a slight decline of 0.7%, closing at $120.45, indicating that market dynamics can impact stock performance [3]. Valuation Metrics - The company has a price-to-earnings (P/E) ratio of approximately 16, suggesting investors are willing to pay $16 for every $1 of earnings [4]. - The price-to-sales ratio stands at about 2.05, indicating the stock is valued at just over twice its annual sales [4]. - The enterprise value to sales ratio is 2.78, reflecting the company's overall valuation in relation to its sales [4]. Financial Stability - BK's current ratio is approximately 14.73, indicating a strong liquidity position with significantly more current assets than liabilities [5]. - The debt-to-equity ratio is about 0.79, suggesting a moderate level of debt and a balanced approach to financial management [5].

AWS Amazon Web Services XRP Ledger. Photo by BeInCrypto The Bank of New York (BNY) Mellon has launched a tokenized deposit service that allows institutional clients to convert cash into digital tokens. The initiative brings major crypto players, including Ripple and Circle, onto a private blockchain designed to speed up cash transfers. BNY Targets 'Always-On' Markets With New Digital Deposit Offering The new offering allows the bank’s institutional clients to convert traditional cash deposits into digi ...

Core Insights - BNY has launched a tokenized deposit service that enables clients to transfer funds using blockchain technology, marking a significant move by a major global bank into the digital asset space [1][3]. Group 1: Tokenized Deposits Overview - The new service allows for an on-chain mirrored representation of client deposit balances on BNY's Digital Assets platform, initiating the bank's strategy to tokenize deposits, starting with collateral and margin workflows [3][4]. - Tokenized deposits function as digital book entries that reflect clients' existing demand deposit claims against the bank, while still being recorded on BNY's traditional systems to maintain regulatory and accounting consistency [4]. Group 2: Operational Benefits - The launch aims to facilitate programmable, near-real-time cash movement, aligning with the financial markets' shift towards always-on operating models [5]. - Tokenized deposits are expected to reduce settlement friction, enhance liquidity efficiency, and enable rules-based payments across institutional workflows [5]. Group 3: Industry Participation and Developments - Early participants in the tokenized deposit initiative include notable firms such as Intercontinental Exchange, Citadel Securities, and Ripple Prime, among others [5]. - ICE plans to support tokenized deposits across its clearinghouses in preparation for 24/7 trading and settlement [6]. Group 4: Regulatory Context - BNY's approach to crypto custody has been reviewed by the SEC, which did not object to the bank's decision to exclude these crypto assets as liabilities on its balance sheet, a significant aspect given the SEC's SAB 121 rule [7].