By Ben Glickman
Bank of New York Mellon’s profit topped forecasts in the recently completed quarter as interest revenue surged and the bank worked to lower expenses.
The bank reported a profit of $1.031 billion, or $1.30 a share, in the quarter ended June 30, compared with $835, or $1.03 a share, in the same period a year earlier. Analysts polled by FactSet had expected per-share earnings of $1.22.
Total revenue rose 5% to $4.5 billion, beating the $4.371 billion forecast by analysts. Sharp increases in revenue from net interest more than offset slight declines in proceeds from fees.
Net interest revenue rose 33% to $1.1 billion in the quarter, while fee revenue declined 2% to $3.257 billion.
Assets under management fell 2% compared with a year earlier, driven by lower market values for assets and the divestiture of Alcentra.
The bank provisioned $5 million for credit losses, anticipating a downturn in the broader economy and increasing reserves related to commercial real estate.
Write to Ben Glickman at [email protected]
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