With over $47 trillion in assets under custody or administration, Bank of New York Mellon is the largest custodian in the world. While core custody can be an undifferentiated offering, scale and the stickiness of clients have helped the firm generate double-digit returns on tangible equity.
Compared with peers State Street and Northern Trust, BNY Mellon is the most diversified with its seven lines of business. It is also less exposed to movements in equity markets.
Fee compression and lower margins in asset management will result in asset managers being more conscious of their costs, limiting the pricing power of custody banks.
|
Metric
|
BK
|
NTRS
|
JPM
|
|---|---|---|---|
Price/Earnings (Normalized) | 13.45 | 14.63 | 11.47 |
Price/Book Value | 1.46 | 1.55 | 1.90 |
Price/Sales | 3.14 | 2.44 | 3.61 |
Price/Cash Flow | 10.85 | 4.35 | 9.27 |
|
Metric
|
BK
|
NTRS
|
JPM
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | — | — | — |
|
Metric
|
BK
|
NTRS
|
JPM
|
|---|---|---|---|
Return on Assets (Normalized) | 1.02% | 1.01% | 1.44% |
Return on Equity (Normalized) | 11.87% | 13.93% | 19.14% |
Return on Invested Capital (Normalized) | — | — | — |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| JPMorgan Chase & Co
JPM
| Ftfcbmyznm | Xnpcz | $583.9 Bil | |||
| Bank of America Corp
BAC
| Slqdpggw | Rnjk | $311.2 Bil | |||
| Wells Fargo & Co
WFC
| Qgysdkcf | Yhz | $187.1 Bil | |||
| Royal Bank of Canada
RY
| Kmjvvrkp | Qxrf | $172.3 Bil | |||
| HSBC Holdings PLC ADR
HSBC
| Bbctwnkh | Bqf | $165.4 Bil | |||
| Citigroup Inc
C
| Cncxrytr | Wdxnc | $119.5 Bil | |||
| Mitsubishi UFJ Financial Group Inc ADR
MUFG
| Crkqctzhd | Zng | $115.2 Bil | |||
| The Toronto-Dominion Bank
TD
| Lqkzptqyqm | Mplvk | $111.6 Bil | |||
| UBS Group AG
UBS
| Wfqfsrczv | Ptrbjpt | $99.3 Bil | |||
| Banco Santander SA ADR
SAN
| Nffc | Gdgqmxf | $75.2 Bil |
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United States