BNY Mellon sees asset servicing total revenue increase
23 July 2018 New York
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Total revenue for BNY Mellon’s asset servicing business increased both year-over-year and sequentially for Q2 this year, according to the bank’s Q2 2018 Earnings Release report.
BNY Mellon’s Q2 total revenue for asset servicing stood at $1.5 billion, compared to its $1.3 billion for Q2 last year.
The year-over-year increase in asset servicing reflected higher net interest revenue, foreign exchange, and securities lending volumes.
Additionally, equity market values and the favourable impact of a weaker US dollar also reflected the increase, BNY Mellon revealed.
The bank’s Pershing total revenue reached $558 million compared with $547 in the same Q2 period last year.
According to BNY Mellon, the pershing year-over-year increase reflected higher net interest revenue and higher fees due to growth in long-term mutual fund balances.
Revenue in issuer services stood at $431 million whereas last year the figure stood at $398 million, the increase conveyed higher net interest in corporate trust and higher depositary receipts revenue.
Treasury services increased with $329 million as opposed to $311 million last year, which reflected higher net interest revenue and payment volumes.
Clearance and collateral management had $269 million in revenue compared with last year’s Q2 figure of $242 million.
Growth in collateral management, higher clearance volumes, and net interest value reflected the increase in this area.
Meanwhile, record assets under custody and administration of $33.6 trillion -an 8 percent increase- reflected higher market values and business growth.
Charles Scharf, chairman and CEO of BNY Mellon, commented: “While we continued to benefit from the positive impact of higher interest rates and equity markets, albeit at a more modest pace than last quarter, we again saw some underlying franchise growth.”
“Overall, the company remains strong, with some areas performing better than others. We remain focused on driving organic growth across our businesses.”
He concluded: “The opportunities in our new business pipeline are encouraging. We are confident that we are taking the right actions to realise them and expect the results to build over time.”
BNY Mellon’s Q2 total revenue for asset servicing stood at $1.5 billion, compared to its $1.3 billion for Q2 last year.
The year-over-year increase in asset servicing reflected higher net interest revenue, foreign exchange, and securities lending volumes.
Additionally, equity market values and the favourable impact of a weaker US dollar also reflected the increase, BNY Mellon revealed.
The bank’s Pershing total revenue reached $558 million compared with $547 in the same Q2 period last year.
According to BNY Mellon, the pershing year-over-year increase reflected higher net interest revenue and higher fees due to growth in long-term mutual fund balances.
Revenue in issuer services stood at $431 million whereas last year the figure stood at $398 million, the increase conveyed higher net interest in corporate trust and higher depositary receipts revenue.
Treasury services increased with $329 million as opposed to $311 million last year, which reflected higher net interest revenue and payment volumes.
Clearance and collateral management had $269 million in revenue compared with last year’s Q2 figure of $242 million.
Growth in collateral management, higher clearance volumes, and net interest value reflected the increase in this area.
Meanwhile, record assets under custody and administration of $33.6 trillion -an 8 percent increase- reflected higher market values and business growth.
Charles Scharf, chairman and CEO of BNY Mellon, commented: “While we continued to benefit from the positive impact of higher interest rates and equity markets, albeit at a more modest pace than last quarter, we again saw some underlying franchise growth.”
“Overall, the company remains strong, with some areas performing better than others. We remain focused on driving organic growth across our businesses.”
He concluded: “The opportunities in our new business pipeline are encouraging. We are confident that we are taking the right actions to realise them and expect the results to build over time.”
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