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BNY Mellon to Repurchase up to $2.7 Billion of Common Stock; Federal Reserve Does Not Object to 2016 Capital Plan, Including Proposed Dividend Increase

BK

PR Newswire

NEW YORK, June 29, 2016 /PRNewswire/ -- BNY Mellon, a global leader in investment management and investment services, today announced that the Federal Reserve did not object to the 2016 capital plan in its Comprehensive Capital Analysis and Review. As a result, the company's board of directors has approved the repurchase of up to $2.14 billion of its common stock over a four-quarter period (compared to last year's five-quarter period) starting in the third quarter of 2016 and continuing through the second quarter of 2017. The board also approved the repurchase of up to an additional approximately $560 million of common stock during a portion of the period covered by the repurchase plan, contingent upon the company issuing $750 million of preferred stock. The 2016 capital plan also includes an approximately 12 percent increase to BNY Mellon's quarterly cash dividend on common stock from $0.17 to $0.19 per share, commencing as early as the third quarter of 2016, subject to board approval.

BNY Mellon Logo. (PRNewsFoto/BNY Mellon)

"We are  pleased to announce our intention to increase our dividend as early as the third quarter and to continue our share buyback program. We plan to accomplish this while increasing our capital base to meet higher regulatory requirements and to continue to perform through stressed market scenarios," said Gerald L. Hassell, chairman and chief executive officer of 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 and more than 100 markets. As of March 31, 2016, BNY Mellon had $29.1 trillion in assets under custody and/or administration, and $1.6 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 the repurchase of shares of outstanding common stock, the issuance of preferred stock, the level of dividend distributions, the capital base, securities offerings and BNY Mellon's business model, including expectations regarding the Company's financial strength, flexibility 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). Factors that could cause BNY Mellon's results to differ materially can be found in the risk factors set forth in BNY Mellon's Annual Report on Form 10-K for the year ended December 31, 2015 and BNY Mellon's other filings with the Securities and Exchange Commission. All statements in this news release speak only as of June 29, 2016, and BNY Mellon undertakes no obligation to update any statement to reflect events or circumstances after June 29, 2016 or to reflect the occurrence of unanticipated events.  

Contacts: Media
Kevin Heine  
+ 1 212 635 1590 
kevin.heine@bnymellon.com
Analysts
Valerie Haertel
+1 212 635 8529
valerie.haertel@bnymellon.com

Logo - http://photos.prnewswire.com/prnh/20130130/NY50587LOGO-a

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bny-mellon-to-repurchase-up-to-27-billion-of-common-stock-federal-reserve-does-not-object-to-2016-capital-plan-including-proposed-dividend-increase-300292301.html

SOURCE BNY Mellon



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