BNY Mellon has posted a net income of $991m for the second quarter of 2021, an increase of 10% compared to $901m a year ago.
However, total revenue for the quarter ended 30 June 2021 decreased 1% to $3.96bn.
Fee revenue rose by 4% to $3.22bn but net interest revenue plunged 17% to $$645m due to lower interest rates on interest-earning assets.
The banking group’s assets under custody and/or administration (AUC/A) stood at $45 trillion, which represents a surge of 21%.
Assets under management (AUM) increased 18% to $2.3 trillion.
BNY Mellon CEO Todd Gibbons said: “We delivered another strong quarter with EPS of $1.13 on $4bn of revenue, and generated returns on common equity and tangible common equity of 10% and 19%. Fee revenue was up 4%, or 10% excluding the impact of money market fee waivers, reflecting the benefit of higher market levels as well as continued organic growth, driven by higher client activity levels and net new business momentum.
Gibbons also revealed that the company will offer shareholders a dividend of 34 cents per share and will repurchase up to $6bn of common stock through the fourth quarter of 2022.
Investment and Wealth Management
The Investment and Wealth Management division of the bank posted income before taxes of $326m, a surge of 48% year-on-year.
The division’s revenue rose by 13% to $999m from $886, with Investment Management contributing $700m and Wealth Management contributing $299m.
Recently, BNY Mellon finalised a deal to acquire fund management technology provider Milestone Group to bolster digital solutions capabilities.