Bank of New York Mellon Corp (NYSE:BK) saw its shares jump Friday morning, after the company announced a huge buyback and an enhanced quarterly dividend.
It was on Thursday that the bank announced its board of directors approved the repurchase of up to $3.94 billion of its common stock starting in the third quarter of 2019 and continuing through the second quarter of 2020, an increase of approximately 20% versus the prior four-quarter period.
The company also intends to increase BNY Mellon's quarterly cash dividend on common stock by approximately 11% from $0.28 to $0.31 per share, commencing as early as the third quarter of 2019, subject to board approval.
According to CEO Charlie Scharf, "We are pleased to announce our intention to increase our dividend and significantly increase our share buyback program.
"We remain committed to maintaining strong capital ratios while delivering a substantial amount of capital back to shareholders. We continue to focus on improving the way we operate to better serve our clients, investing for growth and we remain confident in our future."
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.
As of March 31, BNY Mellon had $34.5 trillion in assets under custody and/or administration, and $1.8 trillion in assets under management.
BK shares climbed 85 cents, or 2%, to $44.24.
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