BNY Mellon posts solid Q4 2016 results

BNY Mellon has recorded increases across its business lines in its Q4 2016 figures.

Total Q4 earnings stood at $822 million compared to $637 million in Q4 2015.

Assets under custody (AuC) increased by 3% which has been put down to higher market values offset by the unfavourable impact of a stronger US dollar.

Assets under management (AuM) stood at $1.6 trillion, representing a 1% increase compared to AuM in Q4 2015.

The AuM increase has also been put down to higher market values being offset by the unfavourable impact of a stronger US dollar, principally versus the British pound.

Noninterest expense decreased by 2%, standing at $2.6 billion which BNY Mellon has attributed to lower staff expense, driven by favourable impact of a stronger US dollar, along with lower employee benefits and severance expense.

“We delivered strong fourth-quarter results, capping another year of solid execution against our three-year strategic plan,” said Gerald L. Hassell, chairman and CEO at BNY Mellon.

“For full-year 2016, our earnings per share increased significantly as we delivered a strong return on capital.

“In the fourth quarter, we also generated substantial positive operating leverage, as the investment services business performed well and our business improvement process helped reduce structural costs,” said Hassell.