The Bank of New York Mellon (BNY Mellon) has posted a fourth quarter net income applicable to common shareholders of $637m, a surge of 207% compared to $209m a year ago.
Total revenues for the fourth quarter of 2015 increased 1% to $3.72bn from $3.66bn in the corresponding quarter of 2014.
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The bank’s assets under management fell 4% year-on-year to $1.63tn, driven by the unfavorable impact of a stronger US dollar, net outflows and lower market values, partially offset by the January 2015 acquisition of Cutwater Asset Management.
Assets under custody and/or administration totalled $28.9trn, up 1% year-on-year, due to net new business, partially offset by the unfavorable impact of a stronger US dollar and lower market values.
Noninterest expense slumped 24% or 2% (Non-GAAP) to $2.7bn, excluding litigation and restructuring charges as well as amortisation of intangible assets.
For the fourth quarter of 2015, net long-term outflows totalled $11bn due to index and equity investments offset by continued strength in liability-driven investments.
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By GlobalDataThe group’s asset servicing fees increased 1% year-over-year to $1bn, reflecting growth in the Global Collateral Services and Broker-Dealer Services and higher securities lending revenue, partially offset by the unfavorable impact of a stronger U.S. dollar.
Clearing services fees were down by 2% to $339m year-over-year, reflecting lost business due to industry consolidations.
Issuer services fees were $199m, a rise of 3% compared to the prior year quarter. The rise was driven by net new business and lower money market fee waivers in Corporate Trust, partially offset by the unfavorable impact of a stronger U.S. dollar in Corporate Trust.
The company said that investment management and performance fees declined 2%, or increased 1% on a constant currency basis (Non-GAAP), due to lower money market fee waivers and higher performance fees, partially offset by net outflows and lower market values.
BNY Mellon chairman and CEO Gerald Hassell said: "Our results in 2015 demonstrated that our strategic plan has positioned us well to perform in all operating environments. Even with geopolitical instability, emerging market weakness, higher regulatory compliance requirements and low interest rates, we executed on our strategic priorities and focused on what was within our control.
"For full-year 2015, our earnings per share increased by 19 percent on an adjusted basis as we generated more than 400 basis points of positive operating leverage and achieved a return on tangible common equity of 21 percent. Importantly, we are on track to achieve our three-year goals."
