Federal Reserve Does Not Object to 2016 Capital Plan, Including Proposed Dividend Increase
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.
"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).