CUSTODY

BNY Mellon hits record assets under custody in Q1

World's largest custody bank reveals it has continued to grow its assets under custody in 2017.

By Joe Parsons editors@globalcustodian.com April 20, 2017 11:13 AM GMT

BNY Mellon has reached a new record of $30.6 trillion in assets under custody (AUC), further cementing its position as the world’s largest custodian bank.

According to its first quarter earnings release, it estimated it achieved new custody mandates of $109 billion for the first three months of the year.

BNY Mellon saw total revenues of $3.8 billion in the first quarter, up 3% year-on-year, boosted by increased revenues from investment services fees and investment management fees.

Asset servicing fees increased 2% year-on-year to just over $1 billion, in which the custody bank stated this was as a result of new business, and growth in its collateral optimisation services.

“Our performance in the quarter benefited from our investments in capabilities that address growing client demands in areas such as collateral optimisation for both the buy and sell side and middle-office services for asset manager,” said Gerald Hassell, chairman and CEO, BNY Mellon.

The improved performance from BNY Mellon follows JP Morgan’s 4% uptick in securities services revenues in the first quarter to $916 million. In comparison, Citi reported a 3% year-on-year decline in its securities services revenue of $543 million.