The Bank of New York Mellon (BNY Mellon) has reported a net income applicable to common shareholders of $804m for the first quarter of 2016, a 4.9% increase compared to $766m in the same period of 2015.
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Total revenues for the first quarter of 2016 were $3.7bn, a 2% decrease, or 1% (Non-GAAP).
The bank’s assets under management stood at $1.64 trillion, down 5% due to net outflows, mainly in 2015 and the unfavourable impact of a stronger US dollar.
Assets under custody and/or administration totalled $29.1 trillion, up 2%, driven by net new business and the favourable impact of a weaker US dollar, partially offset by lower market values.
Non-interest expense was $2.6bn, a drop of 3% on a reported and adjusted basis (Non-GAAP).
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By GlobalDataThe company attributed the decrease in noninterest expense to lower expenses in almost all categories, driven by the favourable impact of a stronger US dollar, lower staff and legal expenses and the benefit of the business improvement process, partially offset by higher distribution and servicing expense.
Net long-term inflows totalled $1bn due to continued strength in liability-driven investments offset by outflows of index and equity investments, while net short-term outflows totalled $9bn.
The group’s asset servicing fees were $1bn, flat year-on-year, while clearing services fees increased 2% to $350m from a year ago.
Issuer services fees were $244m, a 5% rise from the corresponding quarter of 2015. Investment management and performance fees fell 6% year-over-year to $812m.
BNY Mellon chairman and CEO Gerald Hassell said: "In challenging market conditions, we generated solid earnings growth as we executed on our strategic priorities.
"First quarter earnings per share grew by 9% year-over-year and we generated approximately 250 basis points of positive operating leverage while improving our operating margin to 31%."
