Bank of New York Mellon Corp. (BK) on Tuesday reported third-quarter 2010 profits of $625 million, or $0.51 per common share, compared with a loss of $2.44 billion, or $2.04, in the third quarter of 2009.
In BNY Mellon's Clearing Services unit, which includes its correspondent broker-dealer clearing operation and Pershing Advisor Services' RIA custody business, total third-quarter revenue increased to $383 million, paced by an 8% increase in clearing services revenue, which totaled $251 million.
The bank missed analysts’ expectations for earnings per share of $0.55, but nevertheless held its position as the world’s largest custody bank.
In its third-quarter 2010 earnings release, BNY Mellon pointed to its recovery after a debt-restructuring loss in 2009, with takeovers and improved market performance boosting assets in Q3. Profits also were up in the second quarter, at $668 million, or $0.55 per common share.
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“During the quarter, we successfully completed the Global Investment Servicing (GIS) and BHF Asset Servicing GmbH acquisitions,” said Robert Kelly, chairman and chief executive of BNY Mellon, in a statement. “The acquisitions, combined with the underlying resilience of our business model, helped to offset weakness in the capital markets. The strength of our balance sheet and meaningful capital generation position us well to meet the proposed new capital standards.”
BK stock after the earnings release was trading in a range of $25.95 to $26.58 per share versus the prior day’s close of $26.62.