Shares of Bank of New York Mellon Corp. /zigman2/quotes/200171276/composite BK +0.60% dropped 7.0% in midday trading Wednesday, enough to pace the S&P 500's /zigman2/quotes/210599714/realtime SPX +1.95% decliners, after the bank reported fourth-quarter profit that fell more than forecast as continued low interest rates hurt results. The stock was on track for the biggest one-day loss since March 16, 2020, when it plunged 14.5% as the COVID-19 pandemic weighed. The bank reported net income that fell to $702 million, or 79 cents a share, from $876 million, or 98 cents a share, in the year-ago period, missing the consensus analyst EPS estimate of 88 cents, according to FactSet. The bank said the results included $159 million, or 18 cents a share, in litigation, severance, losses on business sales and real estate charges, and a $460 million, or 50 cents a share, gain on the sale of an equity investment. Chief Executive Todd Gibbons said he expects low interest rates will be "a significant headwind" in 2021. The stock has advanced 14.9% over the past three months, while the SPDR Financial Select Sector ETF /zigman2/quotes/209660484/composite XLF +1.90% has rallied 24.3% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.95% has gained 11.6%.
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