How Much Value Can BNY Mellon’s Shares Gain From A Fed Rate Hike?

+10.00%
Upside
57.00
Market
62.70
Trefis
BK: Bank of New York Mellon logo
BK
Bank of New York Mellon

If the Fed paces the hikes along the lines of similar situations in the past, BNY Mellon’s shares would have an upside of roughly 12%:

Fed_QA_BKNIM

Fed_QA_BK2016

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The forecast assumes that the NIM figure for BNY Mellon will eventually increase to levels seen in 2010. The impact of a rate hike by the Fed on all large U.S. banks can be found in the article: If The Fed Begins Raising Rates, How Will Interest Margins For Large Banks Change Over 2016-17?

Details about the impact of the rate hike on rival State Street can be found here.

See the full Trefis analysis for BNY Mellon

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