Bank of New York Mellon (NYSE:BK) reported a bigger-than-expected 11% increase in third-quarter profit on Wednesday and record assets under management.
The bank posted net income of $720 million, or 61 cents a share, compared with a year-earlier $651 million, or 53 cents.
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Excluding the 4-cents-a-share benefit from a lower-than-expected effective tax rate, analysts on average were looking for earnings of 54 cents, according to a Thomson Reuters poll.
Fee revenue was virtually flat at $2.8 billion year-over-year, a reflection of weaker foreign exchange revenue, and total revenue grew by 2% to $3.6 billion, matching the Street’s view.
Investment management and performance fees, however, climbed 7% to $779 million from the year-earlier period. The world’s biggest custody bank booked $9 billion of net long-term inflows and said total assets under management grew by 13% to a record $1.4 trillion.
“We are pleased to report solid earnings growth this quarter, led by the strength of Investment Management, which recorded its twelfth consecutive quarter of long-term inflows,” BNY Mellon CEO Gerald Hassell said in a statement. “New business trends for Asset Servicing were also strong, as we recorded the best quarter in new AUC wins since 2008.”
Shares of BNY Mellon climbed more than 4.6% to $24.63 Wednesday.