Bank of New York Mellon (BNY Mellon) has reported a net income applicable to common shareholders of $319m for the third quarter of 2022, a drop of 64% from $881m a year ago.

Diluted earnings per common share were $0.39 in comparison with $1.04 during the third quarter of 2021.

For the quarter that ended 30 September 2022, BNY Mellon’s total revenue increased by 6% to $4.3bn.

Fee revenue declined 1% to $3.23bn while investment and other revenue declined to $117m from $129m a year ago.

Net interest revenue surged 44% to $926m from $641m in the third quarter of 2021.

The rise in the net interest revenue was attributed to higher interest rates on interest-earning assets. The fall in fee revenue was attributed to lower market values and the unfavourable impact of a stronger US dollar

Specifically, revenue at the market and wealth services increased by 17% to $1.36bn and income before taxes plummeted 21% to $631m on a year-on-year (YoY) basis.

The investment and wealth management line of business reported $862m in revenue, a 16% drop from $1.03bn during Q3 2021.

Assets under management also fell 23% to $1.8 trillion. Noninterest expense at the bank increased 26% to $3.7bn.

BNY Mellon president and CEO Robin Vince said: “While third quarter reported results were impacted by a goodwill impairment charge, return on tangible common equity excluding notable items was 22%.

“Our performance benefitted from higher interest rates and continued strength in client volumes and balances across our Securities Services and Market and Wealth Services segments.

“While Investment and Wealth Management was naturally more affected by the continued decline in global market values, in particular in Investment Management, the business delivered positive net inflows in the quarter and continued to deliver solid investment performance for our clients.”