Bank of New York Mellon reported third quarter net income of $651 million, a lift of 4.6 per cent from $622 million versus the same period in 2010, on the back of new business wins, net long-term asset flows and increased deposits.
Investment services fees totaled $1.8 billion, an increase of 11 per cent year on year and two per cent from the previous quarter. Asset servicing during the third quarter generated over half of these fees, at $928 million, a rise of 6.7 per cent versus the third quarter of 2010. Year-to-date, asset servicing fees have totaled $2.8 billion, an increase of some 30 per cent for the same period in 2010.
"The increases primarily resulted from seasonally higher depositary receipts revenue, which had traditionally been generated in the fourth quarter. Both increases also reflect net new business, partially offset by higher money market fee waivers. Additionally, the sequential increase was partially offset by seasonally lower securities lending revenue and the impact of lower equity market values," wrote BNY Mellon.
Assets under custody and administration were at $25.9 trillion at the end of the third quarter this year, up 6.1 per cent from the same quarter the year previous but still a drop of 1.5 per cent from this year's second quarter. The increase over last year was driven by net new business and the decrease from the second quarter reflects lower equity market values, partially offset by net new business.
The market value of securities on loan was at $250 billion in the third quarter 2011, a 10.4 per cent drop versus the same quarter in 2010.