BNY Mellon's Earnings Increase Shows Strength of Fee-Based Model
Over the past two weeks, most of the biggest banks in the U.S. have reported earnings. Every one reported large earnings-per-share declines from increased provisioning for credit losses due to the new current expected credit loss (CECL) framework and the novel coronavirus pandemic. But Bank of New York Mellon (NYSE: BK) has a business model that relies heavily on recurring fee income along with taking credit risk. This creates a bank that is in a strong position to weather storms like the current one.
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Source Fool.com
