The Bank of New York Mellon (BNY Mellon) has reported net income applicable to common shareholders of $825m for the second quarter of 2016, down 0.6% from $830m in the year-ago quarter.
Total revenue was $3.8bn, a fall of 3%, or 2% on an adjusted basis (Non-GAAP).
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Noninterest expense was $2.6bn, a drop of 4%, or 2% on an adjusted basis (Non-GAAP).
The company attributed the decline in noninterest expense to lower expenses in almost all categories, primarily driven by the favourable impact of a stronger US dollar, lower litigation, staff and legal expenses and the benefit of the business improvement process, partially offset by higher net occupancy and distribution and servicing expenses.
The company’s assets under management at the end of the quarter were $1.66 trillion, a decrease of 2% driven by net outflows mainly in 2015 and the unfavorable impact of a stronger US dollar, offset by higher market values.
Assets under custody and/or administration totalled $29.5 trillion, a 3% rise due to net new business and higher market values, partially offset by the unfavourable impact of a stronger US dollar.
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By GlobalDataNet long-term outflows totalled $5bn in the second quarter, driven by index investments, offset by the continued strength in liability-driven investments.
The group's asset servicing fees were $1.1bn, an increase of 1% from the corresponding quarter of 2015.
Issuer services fees were $234 million, unchanged from a year ago, while investment management and performance fees fell 5% year-over-year to $830m.
BNY Mellon chairman and CEO Gerald Hassell said: "Our success in aggressively controlling expenses and executing on our business improvement process helped sustain earnings momentum in a period of market uncertainty.
“We continue to believe our distinctive capabilities in areas such as collateral management and liquidity services, middle-office outsourcing and liability-driven investments, as well as our efforts to build a digital enterprise, will drive revenue growth in the future. Our diversified, lower-risk business model positions us to deliver consistent results and solid risk-adjusted returns for our shareholders."
