BNY Mellon, State Street and Northern Trust reported mixed results on their earnings statements for the first quarter of 2011, which were released today.
BNY Mellon reported total earnings of $625 million for the first quarter of 2011, a slight decrease in net income per common share, from $0.55 in the fourth quarter of 2010 to $0.50 in the first quarter of 2011. Net income per common share was up one penny compared to its $0.49 in the first quarter of 2010.
Assets under custody and administration at BNY Mellon were $25.5 trillion at the end of the first quarter of 2011, an increase of 2% over the fourth quarter and 14% over the first quarter of 2010. The boost takes into account assets under custody and administration of Global Investment Servicing and BHF Asset Servicing GmbH, the service providers acquired by BNY Mellon last year.
State Street reported a decline in net income for the first quarter this year of $471 million, with first-quarter 2011 earnings of $0.93 per common share, compared to $0.99 in the first quarter of 2011 and $0.16 in the fourth quarter of 2010. The $0.16 net earnings included a $0.67 net loss per share as a result of a repositioning of State Streets investment portfolio.
Jay Hooley, appointed CEO of State Street last year, laid out $414 million of second-quarter earnings to make whole investors in cash collateral investment pools managed by fund management arm SSgA. In November, he announced a 4-year cost-cutting program that will cost somewhere between $400 million and $450 million, the first tranche of which ate another $165 million of fourth quarter earnings.
Total assets under custody and administration at State Street were on the rise, with $22.6 trillion at the end of the first quarter of 2011, compared with $21.5 trillion for the fourth quarter of 2010 and $19.0 trillion for the first quarter of 2010. Assets under custody alone were $16.7 trillion at the end of the first quarter of 2011; $15.9 trillion at the end of the fourth quarter of 2010; and $14.1 trillion at the end of the first quarter of 2010.
Northern Trust also reported a decline in net income with $151 million, resulting in a decrease in earnings per common share with $0.61 compared to $0.64 in both the first and fourth quarters of 2010. Assets under custody were $3.97 trillion at the end of the first quarter this year, compared with $3.71 trillion at the end of the fourth quarter and $3.37 trillion at the end of the first quarter in 2010.
Northern Trust recently bought Bank of Irelands securities services business for approximately 60 million.