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July 20, 2018

BNY Mellon net income rises 14% in Q2

The Bank of New York Mellon (BNY Mellon) has posted net income applicable to common shareholders of $1.05bn for the second quarter of 2018, an increase of 14% compared to $926m in the same period last year.

The group’s total revenue for the quarter ended 30 June 2018 was $4.14bn, up 5% from $3.95bn in the corresponding quarter of 2017.

Noninterest expense rose 3% year-on-year to $2.74bn, driven by investments in technology, costs related to the consolidation of real estate and the unfavourable impact of a weaker US dollar.

The group’s assets under management totalled $1.8 trillion, up 2% compared to a year ago. The firm attributed the rise to higher market values and the favourable impact of a weaker US dollar.

Assets under custody and/or administration totalled $33.6 trillion, up 8% from the previous year.

Compared to last year, asset servicing fees increased 6% to $1.15bn while issuer services fees increased 10% to $266m.

Investment management and performance fees were $910m, up 3% from $879m a year earlier.

BNY Mellon chairman and CEO Charles Scharf said: “While we continued to benefit from the positive impact of higher interest rates and equity markets, albeit at a more modest pace than last quarter, we again saw some underlying franchise growth. Overall, the company remains strong, with some areas performing better than others.

“We saw pockets of strength, in Investment Services, especially where we have differentiated capabilities such as clearance, collateral management, tri-party repo and liquidity services. Investment Management growth moderated as we saw some softness across the board in our asset flows.”

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