BNY Mellon sees its revenues jump but misses some forecasts

BANK of New York Mellon (BNY Mellon), the world’s largest trust bank, saw its first-quarter fee revenue rise 12 per cent year-on-year to $2.8bn (£1.7bn), a slip of five per cent from the last quarter.

Its profits climbed to $625m, up from $559m the year before but lagging behind some analysts’ expectations. Its assets under management (AUM) also climbed 14 per cent to $25.5 trillion, offsetting damage done to fixed income funds by near-zero interest rates.

Executives at the bank said yesterday it intends to continue its share buyback scheme. Last month the company said it will raise its quarterly dividend by 44 per cent and buy back $1.3bn worth of shares. The company said it wanted to buy back 47m shares, or about four per cent of shares outstanding. “[It is] a very effective way of returning capital to our shareholders,” a spokesman said.

The bank splashed out around $4.4bn on acquisitions in the last year with a focus on overseas expansion.