The Bank of New York Mellon (BNY Mellon) on Tuesday, April 20, said profit in the first quarter soared 74%, as its asset and wealth management businesses benefited from a resurgent market.
The bank’s profit rose to $601 million, or 49 cents per share, compared with the same quarter a year earlier of $363 million, or 31 cents per share.
BNY Mellon’s asset and wealth management fees rose 13%, to $696 million, over the same quarter last year. Assets under management (AUM) rose 25%, to $1.1 trillion.
The bank’s Clearing Services division, which provides clearing, financing, and custody services for broker/dealers and RIAs, saw a drop of 27% in pretax income to $105 million on a 9% drop in total revenue to $366 million from 2009′s first quarter.
Like many banks, extraordinarily low interest rates have battered the flow of cash into money market accounts. BNY Mellon was not immune, as its money market AUM had outflows of $25 billion from the fourth quarter in 2009.
Robert Kelly, chairman and chief executive of BNY Mellon, said in a statement, “Persistent low interest rates globally continue to be a challenge, but our focus on winning new business together with well-controlled expenses resulted in positive operating leverage.”
Read the full text of BNY Mellon’s earnings report.