Record AuC figures for BNY Mellon
21 July 2017 New York
Image: Shutterstock
BNY Mellon recorded high levels of assets under custody and administration in Q2 2017, reaching $31.1 trillion.
The figure represents an increase of 5 percent over the same quarter in 2016, and a 2 percent increase over Q1 2017.
New assets under custody and administration are estimated to total around $152 billion, generating asset servicing fees of $152 billion, a 1 percent increase over Q2 2016, and 2 percent over Q1 2017.
Assets under management also reached a record high of $1.77 trillion, representing a 6 percent increase over Q2 last year, and a 3 percent over Q1 2017.
BNY Mellon saw a total revenue increase of 5 percent, a result that it attributed to growth in the investment management and investment services businesses.
Investment services fees as a whole increased by 4 percent, an increase that BNY Mellon attributed to net new business, including in collateral management solutions, as well as higher equity market values.
It was partially offset, however, by the impact of a stronger US dollar, in particular compared to the British pound.
Gerald Hassell, chairman of BNY Mellon, said: “During the second quarter, healthy revenue growth in both our investment management and investment services businesses and the more favourable rate environment helped us maintain double-digit earnings per share growth and drive substantial positive operating leverage on a year-over-year basis."
"We and our clients are just beginning to capitalise on the benefits of our strategy and investments in growth. We have distinctive capabilities in areas such as collateral management solutions, middle-office outsourcing and liability-driven investments, and made an early commitment to delivering an industry-leading digital investment platform.”
“We believe we are well positioned to help our clients meet regulatory requirements and navigate today’s financial marketplace while at the same time make it easier for them to access the insights and information they need.”
The Q2 results follow the announcement last week that former Visa CEO Charles Scharf has taken over from Hassell as CEO and director of BNY Mellon. He will also replace Hassell as chairman of the board of directors on 1 January 2018.
The figure represents an increase of 5 percent over the same quarter in 2016, and a 2 percent increase over Q1 2017.
New assets under custody and administration are estimated to total around $152 billion, generating asset servicing fees of $152 billion, a 1 percent increase over Q2 2016, and 2 percent over Q1 2017.
Assets under management also reached a record high of $1.77 trillion, representing a 6 percent increase over Q2 last year, and a 3 percent over Q1 2017.
BNY Mellon saw a total revenue increase of 5 percent, a result that it attributed to growth in the investment management and investment services businesses.
Investment services fees as a whole increased by 4 percent, an increase that BNY Mellon attributed to net new business, including in collateral management solutions, as well as higher equity market values.
It was partially offset, however, by the impact of a stronger US dollar, in particular compared to the British pound.
Gerald Hassell, chairman of BNY Mellon, said: “During the second quarter, healthy revenue growth in both our investment management and investment services businesses and the more favourable rate environment helped us maintain double-digit earnings per share growth and drive substantial positive operating leverage on a year-over-year basis."
"We and our clients are just beginning to capitalise on the benefits of our strategy and investments in growth. We have distinctive capabilities in areas such as collateral management solutions, middle-office outsourcing and liability-driven investments, and made an early commitment to delivering an industry-leading digital investment platform.”
“We believe we are well positioned to help our clients meet regulatory requirements and navigate today’s financial marketplace while at the same time make it easier for them to access the insights and information they need.”
The Q2 results follow the announcement last week that former Visa CEO Charles Scharf has taken over from Hassell as CEO and director of BNY Mellon. He will also replace Hassell as chairman of the board of directors on 1 January 2018.
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