BNY Mellon Boosts Profits 23%: Q4 Earnings

Clearing fees at Pershing unit rise to $294 million in the period and nearly $1.2 billion for 2012

(Photo: AP) (Photo: AP)

The Bank of New York Mellon Corp. (BK) said Wednesday that its fourth-quarter net income was $622 million, or $0.53 per share, in the fourth quarter vs. $505 million, or $0.42 per share, a year ago and $720 million, or $0.61 per share, in the third quarter of 2012—meeting analysts’ expectations.

“We are pleased to report strong year-over-year growth in fees in our Investment Management, Asset Servicing, Clearing and Treasury Services businesses. We benefited from the improvement in market values and, more importantly, from our relentless focus on generating organic growth with our broad client base,” said Gerald L. Hassell, chairman and chief executive officer of BNY Mellon, in a press release.

The bank’s assets under management rose 10% to $1.39 trillion from $1.26 trillion a year earlier. Noninterest income, which includes fees and gains on securities, rose to $2.85 billion from $2.77 billion a year earlier.

Its clearing operations (under the Pershing brand) had quarterly revenue of $294 million vs. $287 million in the third quarter and $278 million a year ago. For the full year, clearing fees were $1.19 billion vs. $1.16 billion in 2011.

Total assets under administration were $26.7 trillion at Dec. 31, 2012, an increase of 9% from a year ago and $100 billion sequentially. Assets under management were $1.4 trillion, up 10% compared with the prior year and 2% sequentially.

Long-term inflows totaled $14 billion and short-term outflows totaled $6 billion for the fourth quarter of 2012, while investment-services fees totaled $1.6 billion, an increase of 1% year-over-year and a decrease of 5% sequentially.

Investment-management and performance fees were $853 million, an increase of 17% year-over-year and 9% sequentially. According to the firm, both increases were impacted by the acquisition of the remaining 50% interest in the West LB Mellon Asset Management joint venture, subsequently renamed Meriten Investment Management.

See the Q4 2012 Earnings Calendar at AdvisorOne.

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