BNY Mellon sees asset servicing revenue drop
17 April 2019 New York
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BNY Mellon reported $1,407 million of total revenue for asset servicing for Q1 2019, which compares to $1,519 million in Q1 last year, marking a 7 percent decrease.
This also marks a 2 percent decrease from Q4 2018, which saw $1,435 million in total revenue for asset servicing.
BNY Mellon explained that both decreases primarily reflect lower foreign exchange revenue, net interest revenue due to lower deposits, and lower client activity.
The year-over-year decrease also reflects the unfavourable impact of a stronger US dollar.
In the report, BNY Mellon noted that total revenue decreased year-over-year and sequentially.
Total revenue of $3.9 billion, decreased 7 percent, while fee revenue decreased percent and net interest revenue decreased percent.
Commenting on the report, Charlie Scharf, chairman and CEO, said: “Our performance this quarter was mixed. Several of our fee-based metrics in investment services were consistent with recent results, while we experienced weakness in investment management and net interest income.”
“The year-over-year declines in revenue and earnings per share were primarily driven
by the changing mix and cost of our deposits and the impact of the prior year asset management outflows.”
Elsewhere in the report, Scharf concluded: “During the quarter, we generated more than $900 million of earnings and continued to return a significant portion of that to our shareholders. Our capital remains strong with a CET1 ratio of 11 percent. We are progressing on our priorities and remain confident in our future.”
This also marks a 2 percent decrease from Q4 2018, which saw $1,435 million in total revenue for asset servicing.
BNY Mellon explained that both decreases primarily reflect lower foreign exchange revenue, net interest revenue due to lower deposits, and lower client activity.
The year-over-year decrease also reflects the unfavourable impact of a stronger US dollar.
In the report, BNY Mellon noted that total revenue decreased year-over-year and sequentially.
Total revenue of $3.9 billion, decreased 7 percent, while fee revenue decreased percent and net interest revenue decreased percent.
Commenting on the report, Charlie Scharf, chairman and CEO, said: “Our performance this quarter was mixed. Several of our fee-based metrics in investment services were consistent with recent results, while we experienced weakness in investment management and net interest income.”
“The year-over-year declines in revenue and earnings per share were primarily driven
by the changing mix and cost of our deposits and the impact of the prior year asset management outflows.”
Elsewhere in the report, Scharf concluded: “During the quarter, we generated more than $900 million of earnings and continued to return a significant portion of that to our shareholders. Our capital remains strong with a CET1 ratio of 11 percent. We are progressing on our priorities and remain confident in our future.”
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