BNY Mellon earnings triple despite fee falls
BANK of New York Mellon saw its earnings more than triple in the second quarter, compared to a period last year when the bank was laid low by writedowns on mortgage-backed securities.
The US custodial bank reported second-quarter profit attributable to shareholders of $658m (£430.2m), up from $176m a year earlier. That was equivalent to 54 cents a share, up from 15 cents a share in 2009, broadly matching analyst expectations.
The bank’s revenue climbed three per cent to $3.3bn.
BNY Mellon, like the other banks which have already started reporting second quarter figures, continues to benefit from a decline in the amount it is forced to put aside as a provision for credit losses. Impairment provisions fell by two thirds to $20m over the period, down from $61m last year and $35m in the first quarter of this year.
However, the bank said its fees had been hit by low interest rates and fragile market sentiment. Foreign exchange and trading fees dropped 7.2 per cent, while securities servicing fees eased to $1.27bn, from $1.29bn in the same period in 2009. Only asset and wealth management fees enjoyed a boost, rising 6.1 per cent to $676m.