AUC and AUA increase at BNY Mellon 02 May 2014New York Reporter: Mark Dugdale
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Assets under custody and/or administration at BNY Mellon amounted to $27.9 trillion at the end of March, an increase of 6 percent compared to 2013 and 1 percent over the previous quarter.
Both increases were primarily driven by higher market values, according to the bank.
BNY Mellon’s investment services fees totalled $1.7 billion, an increase of 3 percent year-over-year and 1 percent sequentially. Higher asset servicing fees driven by higher market values, net new business and organic growth, as well as higher clearing services and depositary receipts revenue, were behind the year-over-year increase.
The sequential 1 percent increase is a result of higher asset servicing fees primarily driven by organic growth, higher securities lending revenue and net new business.
Both increases were partially offset by the impact of the continued net run-off of high margin securitisations in corporate trust and higher money market fee waivers, according to BNY Mellon.
"Investment management and investment services fees increased 3 percent and we managed our expenses well, resulting in pre-tax earnings growth of 12 percent year over year,” commented BNY Mellon chairman and CEO Gerald Hassell.
“Our performance benefited from strength in clearing services, the eighteenth consecutive quarter of positive long-term inflows in investment management and the growing contribution from our global collateral services and electronic foreign exchange initiatives.”
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