23 July 2013
New York
Reporter: Georgina Lavers
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Low lending revenue offsets good quarter for BNY Mellon


Investment services fees for BNY Mellon's second quarter of this year totalled $1.7 billion, an increase of 4 percent year-over-year and 6 percent sequentially, but the year-on-year results were offset by low lending revenue.

Both increases primarily reflect higher asset servicing revenue, driven by organic growth and higher market values; higher issuer services revenue driven by higher corporate actions and expense reimbursements related to customer technology expenditures; and higher clearing services revenue driven by higher mutual fund fees and volumes.

The year-over-year increase was partially offset by lower securities lending revenue while the sequential increase reflects seasonally higher securities lending revenue, said the bank.

Assets under custody and/or administration for BNY Mellon's second quarter amounted to $26.2 trillion at 30 June 2013, an increase of 4 percent compared with the prior year and a slight decrease sequentially.

The year-over-year increase was driven by higher equity market values and net new business, and the slight sequential decrease primarily reflects lower fixed income market values, said the bank.

Foreign exchange and other trading revenue totalled $207 million compared with $180 million in Q2 2012 and $161 million in the Q1 2013. In Q2 2013, foreign exchange revenue totalled $179 million, an increase of 14 percent year-over-year and 20 percent sequentially.

Both increases primarily reflect higher volatility and increased volumes. Other trading revenue was $28 million in Q2 2013 compared with $23 million in Q2 2012 and $12 million in Q1 2013.

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