BNY Mellon earnings boosted by rising management fees

Tim Wallace
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TOP CUSTODY bank BNY Mellon joined the industry’s profits boom yesterday reporting strong investment management and asset servicing revenues.

Profits came in at $720m (£445.4m) in the third quarter, up 11 per cent on the same period of 2011.

Assets under management hit a record $1.4 trillion, up 13 per cent on the year, driving investment management fees up seven per cent, while net long-term inflows came in at $58bn over the last 12 months, compared with $9bn at the same point last year.

Foreign exchange revenue plummeted 45 per cent on the year to $121m, reflecting lower volatility and volumes.

“Foreign exchange is going the route of the equity markets – more electronic, higher-speed and streaming prices to clients on a consistent basis,” said BNY Mellon chief executive Gerald Hassell admitting the area might not stage a complete comeback.

But other trading – predominantly in fixed income – saw revenues of $61m, in contrast with the $21m loss made in the three-month period last year.