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(Sharecast News) - Bank of New York Mellon lifted its profit targets on Tuesday as fourth-quarter earnings beat expectations.
The bank said it now expects a return on tangible common equity of about 28% in the medium term, up from previous guidance of 23%. It also lifted its medium-term target for pre-tax margin by 5 percentage points to 38%.
For the fourth quarter, BNY Mellon reported diluted earnings per share of $2.02, up 31% on the same period a year earlier and above analysts' expectations of $1.93.
Chief executive Robin Vince said: "Three years ago, we embarked on a multi-year transformation of BNY. Two years ago, we communicated our strategic roadmap and a set of medium-term financial targets for what we viewed as the first, foundation-setting phase of that work. The pace of progress and our results to date demonstrate that the strategy is working.
"Today, we are raising the bar. With the foundations in place, we expect to realize greater scale and growth opportunities across our platforms. Our new medium-term financial targets represent the next milestones on our path to unlocking BNY's full potential over the long-term."
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