The Bank of New York Mellon Corporation provides financial products and services to institutions, corporations, and high net worth individuals in the United States and internationally. It operates through two segments, Investment Management and Investment Services. The company offers investment management; trust and custody; foreign exchange; fund administration; global collateral services; securities lending; depositary receipts; corporate trust; global payment/cash management; banking services; and clearing services. It also provides mutual funds, separate accounts, wealth management, and private banking services; and broker-dealer services and registered investment advisory services. In addition, the company is involved in credit-related activities, business exits, leasing operations, corporate treasury activities, and derivatives and other trading, as well as corporate and bank-owned life insurance and renewable energy investments activities. Further, it provides global markets services. The Bank of New York Mellon Corporation was founded in 1784 and is headquartered in New York, New York.
Business Analysis of Bank Of New York Mellon
The Financial Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Bank Of New York Mellon compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Bank Of New York Mellon to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Bank Of New York Mellon with an interactive chart.
- Revenue Growth: Bank Of New York Mellon reported a revenue growth of 1.9% year-on-year during 2016. Investment Services Industry grew at -6.5% in the same period
- COGS share of Revenues: Bank Of New York Mellon COGS share of Revenues details are not available because either company does not share the data or we do not have it
- R&D share of Revenues: Bank Of New York Mellon R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, Bank Of New York Mellon spent 52.5% of its total revenues on Sales, Marketing, and General Administration (SG&A). Investment Services industry average SG&A spending in the same period was 54.3%
- Inventory share of Revenues: Bank Of New York Mellon Inventory share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Payable share of Revenues: As a percentage of revenue, Bank Of New York Mellon invested 137.7% of its total revenues on Accounts Payable (A/P) Investment Services industry average Accounts Payable investment in the same period was 214.5%
- Accounts Receivable share of Revenues: Bank Of New York Mellon Accounts Receivable share of Revenues details are not available because either company does not share the data or we do not have it
- PP&E share of Revenues: As a percentage of revenue, Bank Of New York Mellon invested 8.6% of its total revenues on Property, Plants, and Equipments (PP&E). Investment Services industry average PPE investment in the same period was 6.6%
- Intangibles share of Revenues: As a percentage of revenue, Bank Of New York Mellon invested 137.3% of its total revenues on Intangibles. Investment Services industry average Intangibles investment in the same period was 74.6%
- Net Margins: Bank Of New York Mellon Net Margins in the year 2016 were 23.3%. Investment Services industry average Net Margins in the same period were 17.8%
Sector and Industry Association of Bank Of New York Mellon
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
Bank Of New York Mellon is associated with Financials Sector Group, Financial Services Sector, and Investment Services Industry.
Financial Services sector is comprised of the following industries: Investment Services; Consumer Finance; Payment and Transaction Processing Services; Financial News, Research and Data. The definitions for each of the industries is as follows:
- Investment Services industry includes investment banking companies, asset management companies, securities brokers and dealers, online brokers, and security/commodity exchanges.
- Consumer Finance industry includes companies providing credit services and mortgage finance services.
- Payment and Transaction Processing Services industry includes companies providing financial news, research, and data services.
- Financial News, Research and Data industry includes companies providing payments and transaction processing services.
Industry Ranking of Bank Of New York Mellon
With $15.2 billion revenues, Bank Of New York Mellon ranked number 3 of all the companies in the US Investment Services industry. There were a total of 143 public companies in the US Investment Services industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Investment Services industry by revenues during 2016 were:
- Morgan Stanley ($34.6 billion)
- Goldman Sachs ($30.6 billion)
- Bank Of New York Mellon ($15.2 billion)
- INTL FCStone ($14.8 billion)
- Ameriprise Financial ($11.7 billion)
- BlackRock ($11.2 billion)
- State Street ($10.2 billion)
- Charles Schwab ($7.5 billion)
- Franklin Templeton Investments ($6.6 billion)
- Intercontinental Exchange ($6 billion)
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.
- Conduct a holistic benchmarking; to identify and target additional sources of value
- Get in touch with us to learn more about Business Model Analysis Framework
- Get free data, charts, and analysis of Bank Of New York Mellonand its peers on select key performance indicators by clicking the reports provided below