BNY Mellon Surges: A Closer Look at the Oldest Bank in America

Bank of New York Mellon Corporation (BK), with a market cap of $58.5 billion, stands as America’s oldest bank based in New York City. The institution offers a range of financial services for institutions, corporations, government agencies, endowments, foundations, and high-net-worth individuals globally.

BNY Mellon: A Large-Cap Leader

As a company valued at over $10 billion, BNY Mellon is categorized as a “large-cap stock.” Its long-standing legacy and worldwide client base contribute to its high valuation. The firm operates through various segments, including Securities Services, Market & Wealth Services, and Investment & Wealth Management, employing more than 53,400 people globally.

Impressive Stock Performance

On November 29, BNY Mellon’s stock price peaked at an all-time high of $82.72, currently trading 2.7% lower than that mark. Over the past three months, shares have gained 21.2%, surpassing the 18.8% increase of the SPDR S&P Bank ETF (KBE) during the same period.

Long-Term Growth Trajectory

Looking at the longer timeline, BNY Mellon’s stock performance is even more remarkable. It has risen by 54.7% year-to-date and an astonishing 69.4% in the past 52 weeks, outpacing KBE’s growth of 32.1% in 2024 and 44.8% in the last year.

Strong Financial Performance Fuels Growth

In 2024, BNY Mellon has demonstrated consistent earnings growth. Despite a slight dip after the release of its Q3 results on October 11, attributed to higher provisions for credit losses, the company’s financials remain solid. The increase in fee revenues and interest income contributed to a year-over-year revenue growth of 5.2%, reaching $4.6 billion, and an impressive 19.7% rise in adjusted EPS to $1.52, exceeding analyst estimates by 7.8%.

Adding to their success, BNY Mellon’s assets under custody and/or administration have surpassed $50 trillion for the first time. Their strong balance sheet and wide-ranging portfolio allow the bank to focus on delivering sustainable value for shareholders in the long run.

Outperforming Competitors and Analyst Opinions

In comparison, BNY Mellon has outperformed Bank of America Corporation (BAC), which has seen gains of 38.9% in 2024 and 53.1% over the last year.

According to 15 analysts covering BNY Mellon stock, the consensus rating is a “Moderate Buy.” The average price target is $83.97, indicating a modest potential increase of 4.3% from current levels. Conversely, the highest target of $96 suggests a potential upside of 19.2%.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.