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July 19, 2019

BNY Mellon net income slips in second quarter

The Bank of New York Mellon (BNY Mellon) has reported net income applicable to common shareholders of $969m for the second quarter of 2019.

This is a decrease of 8% from the previous year’s income of $1.05bn.

The firm’s total revenue for the three-month period ended 30 June 2019 was $3.92bn, down 5% from $4.14bn in the comparable quarter last year.

Noninterest expense dropped 4% year-on-year to $2.65bn. This was said to be due to a reduction in staff expenses along with the favourable impact of a stronger US dollar.

The group’s assets under management totalled $1.8 trillion at the end of June 2019, up 2% from a year ago.

The firm attributed the rise to higher market values.

Assets under custody and/or administration were $35.5 trillion as at 30 June 2019, a 6% increase from the previous year.

Asset servicing fees dipped 8% to $1.39bn from $1.52bn. Issuer services fees of $446m were 3% higher than the year earlier.

Investment management and performance fees fell 8% to $833m from $901m.

BNY Mellon chairman and CEO Charlie Scharf said: “The impact of the level and shape of the yield curve, as well as continued low levels of volatility and muted market activity, negatively impacted our results.

“This was partially offset by a decline in expenses as we continue to manage the company prudently – even more so, given the current environment. Market conditions drove a decline in foreign exchange and securities lending activities within Asset Servicing while prior-year outflows and divestitures negatively impacted Asset Management.

“However, we saw fee growth in Issuer Services, Clearance and Collateral Management and Pershing.”

 

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