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.