BNY Mellon Soars with Record Asset Custody and Quarterly Profit
BNY Mellon's profit climbed 16% in Q3, driven by higher investment services fees as assets under custody hit $52.1 trillion. Economic resilience and expected interest rate cuts boosted investment activities, increasing net interest income by 3%. The bank's strategic moves show promise for future growth.
BNY Mellon reported a significant 16% profit increase in the third quarter, credited to elevated investment services fees. The bank, renowned as the world's largest custodian, achieved a record-breaking $52.1 trillion in assets under custody and administration, thanks to a robust market rally and new client acquisitions.
Economic resilience and predictions of an interest rate cut initiated at the quarter's end have encouraged client investment activities, positively impacting BNY's financial performance. The bank's net interest income also rose by 3%, surpassing analyst expectations which had forecasted a 1.3% decline reported by LSEG.
Profit attributable to shareholders was $1.11 billion, a notable increase from last year's $958 million. Total fee revenue, including contributions from asset servicing and issuer services, rose by 5% to $3.40 billion. CEO Robin Vince expressed confidence in the bank's strategic initiatives and their capacity to foster further growth.
(With inputs from agencies.)
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