BANK of New York Mellon (BNY Mellon) saw its first quarter profits rocket 74 per cent year-on-year.
Recovery in the market sent the bank’s asset and wealth management business into overdrive as it clawed back business lost during the downturn.
BNY Mellon said the first-quarter profit was even higher than its expectations. The trust bank reported a profit of $601m, or 49 cents a share, in the quarter, compared with earnings of $363m, or 31 cents a share a year earlier.
Robert Kelly, BNY Mellon’s chief executive, said: “The economic outlook is clearly improving as demonstrated by the performance of the equity and credit markets.”
Reflecting the improved market, money set aside to cover souring loans dropped 41 per cent to $35m.
BNY Mellon’s total assets under custody and administration were $22.4 trillion at the end of the first quarter, up 15 per cent from a year earlier but flat compared to the fourth quarter.
The New York-based bank took a 10-cent-per-share charge in the quarter, as it put aside $164m for litigation and other matters.
The bank said the reserve relates to restructuring, merger and integration expenses and intangible amortisation.
Excluding the charge, earnings beat analysts’ average expected profit of 53 cents a share.