BNY Mellon custody a standout among poor first quarter
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BNY Mellon custody a standout among poor first quarter 19 April 2012New York Reporter: Georgina Lavers
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Though the bank reported lower first quarter earnings, with net income for the quarter declining one per cent from $625 million to $619 million, assets under custody or administration rose 4 per cent over the year to a record $26.6 trillion as of 31 March.
Among the biggest positives, according to Jefferies analyst Ken Usdin were a 13 per cent rise in asset servicing, and a nine per cent increase in clearing services.
Foreign currency exchange revenue fell to $136 million, a 21 per cent drop from a year ago, because of volatile markets, said CEO Gerald Hassell during a conference call with analysts.
BNY's legal expenses increased $70 million year-on-year. BNY Mellon was recently fined $6 million by the Federal Reserve Board for misstating the collateral it pledged to a government lending program in 2008.
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