BNY Mellon has revealed a total revenue of $4.1 billion for Q1 2020, a 5 percent increase compared to last year’s Q1 results.
Of the total revenue, BNY Mellon’s asset servicing Q1 revenues increased to $1.5 billion compared to $1.4 billion in Q1 2019, marking an 8 percent increase. Asset servicing revenues also increased
9 percent from year-end 2019.
BNY Mellon explained that both increases primarily reflect higher foreign exchange and other trading revenue.
It noted that the year-over-year increase also reflects higher volumes from existing clients, partially offset by lower net interest revenue.
Additionally, BNY Mellon identified a decrease in asset servicing net interest revenue, which primarily reflects lower rates, partially offset by higher deposits and loans.
Assets under custody reached $35.2 trillion, which shows an increase of 2 percent compared to last year’s Q1 results.
Commenting on the Q1 2020 results, BNY Mellon said the increase primarily reflects higher client inflows, partially offset by lower market values and the unfavourable impact of a stronger US dollar.
Assets under management, however, saw a 2 percent decrease with $1.8 trillion for Q1 2020, which BNY Mellon said was a reflection of the unfavourable impact of a stronger US dollar, principally versus the British pound.
BNY Mellon’s treasury services total revenue came in at $339 million for Q1 2020 compared to $317 million for the same period last year, representing an increase of 7 percent.
Elsewhere, securities lending revenue came in at $46 million in Q1 2020 compared to $44 million for the same period last year, an increase of 5 percent.
Further takeaways from the report demonstrate that clearance and collateral management increased 9 percent in Q1 2020 compared last year’s Q1 figure, and 7 percent compared to year-end 2019.
BNY Mellon said both increases primarily reflect growth in collateral management and clearance volumes and higher net interest revenue.
Commenting on the Q1 results, BNY Mellon’s newly appointed CEO, Todd Gibbons, said: “Throughout the coronavirus crisis, we remain focused on the health and wellbeing of our people, providing continuity of service to our clients and maintaining our balance sheet so we are able to assist our clients.”
Gibbons added: “Despite the unprecedented global market disruption, we have stayed fully operational, demonstrating our resiliency and our commitment and capacity to support our clients when they need us most.”
