By Chelsey Dulaney
Bank of New York Mellon Corp. posted better-than-expected profit
in its first quarter, boosted by higher revenues and lower
expenses.
BNY Mellon, which acts as an investment manager while
safeguarding trillions of dollars for money managers and other
clients, has faced pressure in recent months from investors who
criticized it as slow to change and in need of a retrenchment. The
2007 purchase of Mellon Financial Corp. didn't produce the benefits
shareholders had expected.
In the latest quarter, BNY Mellon posted a profit of $779
million, up from $674 million in the prior-year period. On a
per-share basis, which excludes preferred dividends, earnings rose
to 67 cents from 57 cents a year ago.
Revenue grew 5.6% to $3.85 billion.
Analysts had projected 59 cents a share in earnings and $3.75
billion in revenue, according to Thomson Reuters.
Fee and other revenue grew 4.1% to $3 billion, amid a 68% surge
in foreign exchange and other trading revenue.
Investment services fees grew 3%, while financing-related fees
were up 5% from a year earlier.
BNY Mellon said its net interest margin, a measure of lending
profitability, edged down to 0.97% from 1.05% in the same period a
year ago.
Noninterest expense was down 1% from a year earlier to $2.7
billion, amid lower distribution and servicing expenses, business
development costs and amortization charges.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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