On Thursday, the Bank of New York Mellon Corporation (NYSE: BK) announced its financial results for the fourth quarter. Shares of the bank dropped 4.2% to $55.43 per share in today’s early trading, after the bank announcing its fourth-quarter results, in which the severance and litigation charges of $246 million, or $0.24 per share, were recorded.
For the fourth quarter, net income increased from $822 million, or $0.77 per share, for the same period last year, to $1.13 billion, or $1.08 per share. Revenue for the fourth quarter was down 2% to $3.7 billion from $3.8 billion.
Additionally, the bank reported a benefit of $427 million, or $0.41 per share, related to the new federal tax laws. Excluding tax benefit and charges, the bank posted a profit of $0.91 per share, which was in line with analysts’ estimates.
For the full year, the bank’s revenue increased 2% from $15.2 billion to $15.5 billion. Profits for the full year rose 14% from $3.43 billion, or $3.15 per share, for 2016, to $3.92 billion, or $3.72 per share for 2017.
“Our fourth quarter results were impacted by new tax legislation and actions that we took to strengthen our firm for the longer term. Aside from these items, our results were favorably impacted by strong equity markets and the underlying businesses continued to show modest growth in revenues and profits,” Charles W. Scharf, the chairman and chief executive officer of BNY Mellon, said in the statement on Thursday.