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October 19, 2011 at 12:33 PM
Bank of New York Mellon Corp.’s (BK) Clearing Services unit, which includes Pershing Advisor Services’ (PAS) RIA custody business, outperformed its parent in the third quarter of 2011, reporting a year-over-year rise in profits of 17.9% versus profits of just 4.7% for the larger bank.
BNY Mellon on Wednesday reported earnings per share of $0.53, matching analysts’ consensus estimate. EPS stood at $0.51 in the year-ago quarter and at $0.59 in the second quarter of 2011. The bank also saw net long-term inflows of $4 billion in assets under management in Q3 2011.
The bank saw net income of $651 million, 4.7% higher than the $622 million reported in Q3 2010, but 12.9% lower than the $735 million reported in the second quarter of 2011. That compares to Pershing’s quarterly profits of $297 million, up 17.9% year over year from last year’s quarterly profits of $252 million. Pershing’s profits were up 1.7% from the $292 million reported in Q2 2011.
In a June interview with AdvisorOne, PAS Chief Executive Mark Tibergien said Pershing Advisor Solutions is “carrying the momentum” from last year into 2011. Pershing signed up 98 new RIA relationships in 2010, bringing with them an average of $180 million in AUM.
These firms are attracted by Pershing’s “new-model custodian,” Tibergien said, which he characterized as a “B-to-B platform,” not an outgrowth of a retail model.
In the quarterly report, BNY Mellon Chairman, President and CEO Gerald Hassell took note of the third quarter’s “challenging environment” and pointed to BNY Mellon’s year-over-year 9% rise in fee revenue and 8% rise in total revenue despite the challenges.
