BNY Mellon earnings boosted by rising management fees
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.