The Bank of New York has reported a third quarter income of $325 million and diluted earnings of 46 cents per share for merger and integration costs. The after-tax charges were $74 million or 10 cents per share. Excluding merger and integration costs, on an operating basis the third-quarter saw an increase of 10 percent from 2005’s third quarter with a net income of $426 million and a diluted earning per share at 56 cents.
The bank saw a similar pattern at the end of the nine month term on September 30. The net income was $1,222 million and diluted earnings per share were $1.59, including after-tax charges of $74 million or 10 cents per share for merger and integration costs. The year-to-date net income on an operating basis, excluding merger and integration costs was $1,296 million and diluted earnings per share of $1.69, an increase of more than 12 percent from the previous year.
“The breadth of our securities servicing platform was instrumental in achieving strong growth in operating earnings, despite a pronounced seasonal decline in market activity and exceptionally low market volatility,” says Thomas A. Renyi, chairman and CEO. “We benefited from our market-leading positions in global depositary receipts and broker-dealer services as well as our continued focus on managing our expense base, which helped offset the impact of lower transaction volumes. Credit quality remained excellent, reflecting the actions we have taken over the past few years to improve our risk profile and realign our use of credit in support of our core businesses. Of great importance to our future results was the recent completion of two strategic transactions that sharpen our focus on securities servicing and asset management, and enhance our ability to grow and generate attractive returns for our shareholders,” Renyi said. “We anticipate a smooth integration and are enthusiastic about the long-term potential of our franchise.”