Bank of New York Mellon buys two firms to boost its recovery

BANK of New York Mellon continued its recovery during 2010, based in part on its acquisition of two companies that provide back-office services – deals which took assets under administration 10 per cent higher year-on-year to $24.4 trillion (£15.5 trillion).

The bank yesterday reported third quarter operating profit of $625m, or $0.51 per share, compared with a loss of $2.4bn, or $2.04 per share, a year earlier as the bank dealt with $4.18bn in losses on risky investments.

The figure was slightly below the previous quarter’s income of $668m, or $0.55 per share, as well as being a little below analysts’ expectations of $0.54 per share.

Assets under management (AUM) increased by 18 per cent year-on-year to $1.41 trillion, the bank added. AUM were also up nine per cent on the quarter.

Fee revenue increased two per cent to $2.66bn as net interest revenue fell 0.6 per cent to $718m.

Robert Kelly, chairman and chief executive officer of BNY Mellon said the bank’s two recent acquisitions, of GIS and BHF Asset Servicing, had helped to offset weakness in the capital markets.