Tax setback drags BNY Mellon into a loss for the first quarter

City A.M. Reporter
BNY Mellon yesterday said that first-quarter revenue fell one per cent, as the world’s largest custody bank reported a loss due to a high-stakes tax battle with the US Internal Revenue Service.

BNY Mellon’s net loss of $266m (£174m) reflected a US Tax Court decision announced in February that triggered a previously announced $854m charge against profits.

In the year-earlier quarter, BNY Mellon reported net income of $619m

Revenue totaled $3.61bn, down one per cent from a year ago. Bright spots included 10 per cent gains in both investment management and performance fees, and foreign exchange trading.

Net interest revenue fell six per cent to $719m, reflecting lower yields on reinvested securities and the elimination of interest on European Central Bank deposits.