NEW YORK, June 28, 2017 /PRNewswire/ -- BNY Mellon, a global leader in investment management and investment services, today announced that the Federal Reserve did not object to the 2017 capital plan in its Comprehensive Capital Analysis and Review ("CCAR"). As a result, the company's board of directors has approved the repurchase of up to $2.6 billion of its common stock starting in the third quarter of 2017 and continuing through the second quarter of 2018. The board also approved the repurchase of up to an additional $500 million of common stock contingent upon the company issuing $500 million of preferred stock. The 2017 capital plan also includes an approximately 26 percent increase to BNY Mellon's quarterly cash dividend on common stock from $0.19 to $0.24 per share, commencing as early as the third quarter of 2017, subject to board approval.
Gerald L. Hassell, Chairman and Chief Executive Officer of BNY Mellon, said, "As our business model continues to generate high levels of capital, we intend to return significant value to shareholders through the continuation of our share repurchase program plus a 26 percent dividend increase. During 2017, we intend to maintain our strong capital base to meet regulatory requirements and to remain a strong and trusted counterparty to our clients. This CCAR result demonstrates our resiliency through highly stressed market scenarios."
The timing and exact amount of any common stock repurchases will depend on various factors, including market conditions and the common stock trading price; the company's capital position, liquidity and financial performance; alternative uses of capital; and legal and regulatory considerations.
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 and more than 100 markets. As of March 31, 2017, BNY Mellon had $30.6 trillion in assets under custody and/or administration, and $1.7 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.
The information presented in this news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, which may be expressed in a variety of ways, including the use of future or present tense language, relate to, among other things, BNY Mellon's capital plan, including expectations with respect to common stock repurchases, the issuance of preferred stock, the level of dividend distributions, the capital base and BNY Mellon's ability to meet regulatory requirements and performance. These statements are based upon current beliefs and expectations and are subject to significant risks and uncertainties (some of which are beyond BNY Mellon's control). Actual outcomes may differ materially from those expressed or implied as a result of risks and uncertainties, including, but not limited to, the risk factors and other uncertainties set forth in BNY Mellon's Annual Report on Form 10-K for the year ended Dec. 31, 2016, the Quarterly Report on Form 10-Q for the period ended March 31, 2017 and BNY Mellon's other filings with the Securities and Exchange Commission. All statements in this news release speak only as today, and BNY Mellon undertakes no obligation to update any statement to reflect events or circumstances after today or to reflect the occurrence of unanticipated events.
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