The Bank of New York Mellon (BNY Mellon) has posted net income applicable to common shareholders of $1.13bn for the fourth quarter of 2017, an increase of 37% compared to $822m a year ago, benefitting from a one-time gain of $427m due to the recent changes in US tax rule.

For the quarter ended 31 December 2017, the group’s total revenue was $3.72bn, down 2% compared to the fourth quarter of 2016, both on a GAAP and adjusted basis.

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Noninterest expense increased 14% year-on-year to $3bn, driven by higher staff, litigation, software and equipment and professional, legal and other purchased services expenses.

The group’s assets under management totalled $1.9 trillion at the end of December 2017, up 15% compared to the fourth quarter of 2016. The company attributed the rise to higher market values, the favourable impact of a weaker US dollar and net inflows.

Assets under custody and/or administration increased 11% year-on-year to $33.3 trillion.

Compared to the previous year, asset servicing fees increased 6% to $1.13bn while issuer services fees dipped 7% to $197m.

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Investment management and performance fees were $962m, an increase of 13% over $848m reported a year earlier.

BNY Mellon chairman and CEO Charles Scharf said: “Our fourth quarter results were impacted by new tax legislation and actions that we took to strengthen our firm for the longer term. Aside from these items, our results were favorably impacted by strong equity markets and the underlying businesses continued to show modest growth in revenues and profits.

“We saw strength in asset servicing along with growth in collateral management and clearing services – areas where we see continued client demand. Additionally, our investment management business performed well due to an uplift from global equity markets, net inflows and improved investment performance fees, resulting from good investment performance, especially in fixed income.”