NEW YORK, Dec. 18, 2020 /PRNewswire/ -- On December 18, 2020, the Federal Reserve released the results of the second round of bank holding company stress tests during 2020, further demonstrating the resiliency and strength of BNY Mellon's business model and capital position in times of stress. The restriction on open market common share repurchases applicable to BNY Mellon during the third and fourth quarters of 2020 will be modified for the first quarter of 2021.
During the first quarter, BNY Mellon expects to maintain its common stock dividend (subject to the approval of the board of directors) and resume open market repurchases in an amount up to that consistent with the modified distribution limitations.
"We are pleased to announce our intention to resume our common share buyback program. With these modifications, we expect to maintain strong capital ratios while also delivering an attractive capital return back to our shareholders." said Todd Gibbons, Chief Executive Officer of BNY Mellon.
The company's share repurchase program, authorized by its board of directors, may be utilized, at management's discretion, to conduct these repurchases. The timing, manner and amount of repurchases is subject to various factors, including our capital position, capital deployment opportunities, prevailing market conditions, legal and regulatory considerations (including the restriction described above), and our outlook for the economic environment.
ABOUT BNY MELLON
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment and wealth management and investment services in 35 countries. As of Sept. 30, 2020, BNY Mellon had $38.6 trillion in assets under custody and/or administration, and $2.0 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.
The information contained in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, which may be expressed in a variety of ways, including the use of future or present tense language, relate to, among other things, BNY Mellon's capital plan, including expectations with respect to the repurchase of shares of outstanding common stock, the level of dividend distributions, the capital base and BNY Mellon's ability to meet regulatory requirements and performance. These statements are based upon current beliefs and expectations and are subject to significant risks and uncertainties (some of which are beyond BNY Mellon's control). Actual outcomes may differ materially from those expressed or implied as a result of risks and uncertainties, including, but not limited to, the risk factors and other uncertainties set forth in BNY Mellon's Annual Report on Form 10-K for the year ended Dec. 31, 2019, the Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2020 and BNY Mellon's other filings with the Securities and Exchange Commission. All statements in this press release speak only as of the date on which such statements are made, and BNY Mellon undertakes no obligation to update any statement to reflect events or circumstances after the date on which such forward-looking statement is made or to reflect the occurrence of unanticipated events.
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SOURCE BNY Mellon