Bank of New York Mellon profit climbs 29% as expenses fall

Fourth-quarter profit rises to $822 million as expenses fall 2.3 per cent to $2.63 billion

BNY Mellon chairman and chief executive Gerald Hassell. Photograph: Bank of New York Mellon

BNY Mellon chairman and chief executive Gerald Hassell. Photograph: Bank of New York Mellon

 

Bank of New York Mellon said on Thursday fourth-quarter profit increased 29.04 per cent as expenses fell and net interest revenue rose.

The world’s largest custodian bank’s net income attributable to common shareholders rose to $822 million (€773.5 million) in the three months to the end of December from $637 million a year ago.

Excluding items, BNY Mellon earned 77 US cents per share, in line with the average analyst estimate. Total revenue rose 1.75 per cent to $3.79 billion but missed analysts’ average estimate of $3.85 billion.

Provision for credit losses fell 95.7 per cent to $7 million.

Revenue from interest rose nearly 9.3 per cent to $831 million, driven by increase in interest rates and impact of interest rate hedging activities, the bank said.

The bank, which counts big institutional investors as its bread-and-butter clients, said non-interest expenses dropped 2.3 per cent to $2.63 billion, helped by lower staff expenses.

Assets under management amounted to $1.65 trillion as of December 31st, lower than $1.72 trillion as of September 30th.

The bank, whose shares were unchanged in premarket trade, rose 29.21 per cent in the last 12 months. – (Reuters)