BNY Mellon in 1.5bn loss on writedowns
BANK of New York Mellon took a hefty charge during the third quarter following the restructuring of its securities portfolio, resulting in a net loss of $2.5bn (£1.52bn) – but the earnings season got off to an upbeat start elsewhere on Wall Street.
The New York-based trust bank said the $4.8bn charge would reduce the risk of future securities losses over time.
But shares in the company jumped almost three per cent after the bank’s earnings topped expectations.
Elsewhere on Wall Street, the US earnings season got off to a positive start, with internet giant Yahoo trebling third quarter profits thanks to cost cutting. It earned $186m compared with $54m in the same period last year while revenue fell 12 per cent to $1.58bn.
Caterpillar, the heavy equipment maker and industrial bellwether, reported a profit of $404m for the third quarter, down 53 per cent on last year – but well ahead of expectations.
And drug maker Pfizer reported a third-quarter net profit of $2.9bn, up 26 per cent from a year earlier, despite sales sliding three per cent to $11.6bn.
Meanwhile, Coca-cola reported falling sales in the US and Europe but managed to keep earnings flat at $1.9bn thanks to double digit growth in China and India.