BNY Mellon registered a slight decrease in assets under custody and administration to $25.9 trillion at the end of the third quarter from $26.3 trillion in the second quarter this year.
The figure was up, however, by 6% from $24.4 trillion in the third quarter last year. The firm says lower equity market values were offset by net new business, resulting in the more or less flat figures for assets under custody and administration for the quarter.
Foreign exchange revenues were down over the previous quarter, from $222 million in the second quarter to $194 million in the third quarter this year. In the third quarter of 2010, FX revenues were $146 million. BNY Mellon says the year-over-year increase reflects higher volumes, while quarter-on-quarter volumes were steady.
BNY Mellon says its securities lending revenue was seasonally lower but did not provide exact figures.
Firm-wide, total revenue at BNY Mellon was down 4% compared to the previous quarter and up 8% compared to the third quarter of 2010.
Gerard Cassidy, an analyst at RBC Capital Markets, says BNY Mellons fee revenue was lighter than expected, although on the whole, it was a good quarter for the company given the market uncertainty for the period.
Gerald L. Hassell, chairman, president and CEO of BNY Mellon, says: “Year-over-year, we achieved revenue and earnings growth as we benefited from new business wins, net long-term asset flows and increased deposits. We also delivered positive operating leverage despite higher legal and severance costs, and generated a 22% return on tangible common equity for the quarter.”
(CG)