BNY Mellon sees boost in servicing fees 21 October 2016New York Reporter: Mark Dugdale
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BNY Mellon has seen a 1 percent increase in its asset servicing fees, which reached $1.1 billion in Q3 2016.
According to BNY Mellon, the increase reflected higher money market fees. It was partially offset by the unfavourable impact of a stronger US dollar and the downsizing of its UK transfer agency business.
Assets under custody and/or administration at the bank increased by 7 percent to $30.5 trillion in Q3, with new mandate wins in asset servicing estimated to be worth $150 billion over the period.
BNY Mellon was selected by Israeli insurance company Clal Insurance in September to provide global custody and cash management services for its assets, totalling over $7 billion.
The bank also won a mandate in July to provide fund administration and collateral management services to the German-domiciled funds of Nomura Asset Management.
The German funds have €2 billion in assets under management, and are under administration at BNY Mellon’s German affiliate, BNY Mellon Service KAG.
The increase was also partially attributed to securities lending revenue, which reached $51 million in Q3 2016, down slightly sequentially but up year-over-year. BNY Mellon earned $38 million in Q3 2015.
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