Bank of New York Mellon Corp. on Tuesday reported a 48% jump in
profit in its second quarter, as the bank kept spending in check
and grew revenue.
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.
In May, the company agreed to pay $180 million to settle a
foreign exchange-related class-action lawsuit, resolving almost all
of its currently pending forex-related actions. The settlement came
two months after the trust bank reached a $714 million settlement
to resolve allegations it defrauded pension funds and other clients
by overcharging them on currency transactions.
For the quarter ended June 30, BNY Mellon posted a profit of
$853 million, up from $577 million in the prior-year period. On a
per-share basis, which excludes preferred dividends, earnings rose
to 73 cents from 48 cents a year ago.
Excluding litigation and restructuring expenses, per-share
earnings were 77 cents.
Revenue grew 3.8% to $3.89 billion.
Analysts had projected 66 cents a share in earnings and $3.82
billion in revenue, according to Thomson Reuters.
Fee and other revenue edged up 2.9% to $3.07 billion.
Assets under management grew to $1.72 trillion, a 5.4% increase
from the same period a year ago.
Noninterest expense fell 7.4% to $2.73 billion, helped by the
stronger U.S. dollar and cost cuts.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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