BNY Mellon Posts Higher-Than-Expected Profits

Features Reuters

BNY Mellon Corp on Wednesday reported a higher-than-expected quarterly profit on rising fees from managing money, increased mutual fund balances and strength in foreign currency trading.

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The world's largest custody bank by assets earned $967 million, or 82 cents a share, in the third quarter, compared with $720 million, or 61 cents a share, a year earlier.

But without a benefit from a U.S. Tax Court decision, BNY Mellon said earnings were 60 cents a share. That beat the analysts' average estimate of 58 cents, according to Thomson Reuters I/B/E/S.

Investment services fees rose 4 percent to $1.7 billion, partly reflecting higher mutual fund and asset-based fees.

Meanwhile, investment management and performance fees rose 5 percent from year-earlier levels to $821 million. The gains reflected new business and a rising stock market in the third quarter.

Foreign exchange revenue surged 27 percent to $154 million on higher volumes and volatility.