BNY Mellon asset servicing vital to valuation
06 June 2012 New York
Image: Shutterstock
Forbes declared BNY Mellon’s asset servicing business crucial to its $27 per share market valuation.
Maintaining a price estimate of $27 for a BNY Mellon share, nearly 26 percent above the current market price, Forbes stated that it believed that this premium is largely due to the “weak short-term outlook for global custody banking”. It added: “The bank’s foreign-exchange related lawsuits are also a bitter pill for investors to swallow.”
Asset servicing represents 30 percent of the company’s stock value, with Forbes noting that BNY Mellon’s assets under custody have grown at "well over" 7 percent annually over the last five years, with approximate expected growth of 5 percent in coming years, due to consolidation in the industry and expansion in developing economies.
Maintaining a price estimate of $27 for a BNY Mellon share, nearly 26 percent above the current market price, Forbes stated that it believed that this premium is largely due to the “weak short-term outlook for global custody banking”. It added: “The bank’s foreign-exchange related lawsuits are also a bitter pill for investors to swallow.”
Asset servicing represents 30 percent of the company’s stock value, with Forbes noting that BNY Mellon’s assets under custody have grown at "well over" 7 percent annually over the last five years, with approximate expected growth of 5 percent in coming years, due to consolidation in the industry and expansion in developing economies.
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