BNY Mellon third-quarter profit rises on money management fees


BNY Mellon Corp said on Wednesday that third-quarter earnings rose 11 percent, beating analysts' expectations, on stronger money management and performance fees.

Investment management and performance fees rose 7 percent to $779 million from year-ago levels as the world's largest custody bank booked $9 billion of long-term inflows into bond funds in the third quarter.

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Total assets under management rose to a record level of $1.4 trillion, up 13 percent from year-ago levels.

Net income was $720 million, or 61 cents a share, including a benefit of 4 cents per share from a lower-than-expected effective tax rate. That compared with $651 million, or 53 cents a share, a year earlier.

Analysts, on average, expected the bank to earn 54 cents a share, according to Thomson Reuters I/B/E/S.

Total fee revenue was nearly flat at $2.88 billion, hurt by a 9 percent decline in foreign exchange and other trading revenue.

Assets under custody and administration totaled $27.9 trillion, up 3 percent from the second quarter and 8 percent from the year-ago period.

(Reporting by Tim McLaughlin in Boston; Editing by Lisa Von Ahn and Jeffrey Benkoe)