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January 18, 2019

BNY Mellon reports fall in Q4 profit

The Bank of New York Mellon (BNY Mellon) has reported net income applicable to common shareholders of $832m for the fourth quarter of 2018, a 26% slump compared to $1.12bn a year ago.

The group’s total revenue for the quarter ended 31 December 2018 was $4bn, up 7% from $3.73bn in the same period last year.

Noninterest expense dipped 1% year-on-year to $2.98bn. The fall was said to be the result of investments in technology.

The group’s assets under management (AUM) totalled $1.72 trillion at the end of December 2018, down 9% from $1.89 trillion last year.

The firm said that the decrease in AUM was mainly due to the unfavourable impact of a stronger US dollar, lower market values, net outflows, and the sale of CenterSquare Investment Management.

Assets under custody and/or administration dropped 1% to $33.1 trillion on a year-on-year basis.

Issuer services fees were $286m, a 45% jump compared to the previous year. Asset servicing fees remained unchanged at $1.08bn.

Investment management and performance fees dropped 7% to $893m from $962m a year earlier.

BNY Mellon chairman and CEO Charles Scharf said: “While our reported earnings per share declined 22 percent, our results in this quarter and the fourth quarter of 2017 included a series of notable items that make comparisons difficult. Excluding these items, earnings per share grew by 9 percent.

“The underlying performance of our businesses was mixed as our revenue declined, but we continued to maintain strong expense discipline. In addition, we benefited from a lower tax rate and our ongoing ability to return capital to shareholders through buybacks.”

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