21 October 2013
New York
Reporter: Georgina Lavers

Lending revenue hits seasonal low for BNY Mellon

Securities lending revenue for BNY Mellon dropped $15 million from its last quarter, in the bank’s results for Q3 2013.

Asset servicing fees for the custody bank, which include securities lending revenue, were $49 million in Q3 2012. They dropped to $41 million in Q4 2012, and again to $39 million in Q1 2013. The second half of 2013 proved more fruitful for the custodian, with lending revenues of $50 million.

However, revenue dropped both year-on-year and sequentially for this quarter, to $35 million. Investment services fees in general totalled $1.7 billion, an increase of 4 percent year-on-year, but unchanged sequentially.

The year-on-year increase primarily reflects higher clearing services fees driven by higher mutual fund and asset-based fees and volumes, higher asset servicing revenue resulting from higher market values and higher issuer services revenue driven by higher depository receipts revenue.

Sequentially, higher issuer services revenue driven by seasonally higher depository receipts revenue was offset by a seasonal decrease in securities lending revenue, lower activity and lower expense reimbursements, said the bank.

Additionally, higher money market fee waivers decreased investment services revenue both year-on-year and sequentially.

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
J.P. Morgan and Citi collaborate on truePTS post-trade platform
15 December 2017 | New York | Reporter: Zsuzsa Szabo
The New-York-based startup processes ecosystem for the global $700 trillion derivatives market
SIFMA: US market requires improved CCP access
15 December 2017 | Washington DC | Reporter: Jenna Lomax
The Dodd-Frank Act has increased the need for US firms to have access to non US swaps trading venues and central counterparties, according to paper by FIA and SIFMA
France raises spectre of European financial transactions tax
15 December 2017 | Paris | Reporter: Jenna Lomax
French President Emmanuel Macron and several ministers have dismissed concerns over the negative effect of an EU financial transactions tax on securities lending revenue
Vekaria exits Credit Suisse
14 December 2017 | Dublin | Reporter: Zsuzsa Szabo
Head of Credit Suisse's Dublin branch Manish Vekaria has left the bank
Cerberus hires new managing director
14 December 2017 | New York | Reporter: Jenna Lomax
Kimmel was previously global head of prime services at Cantor Fitzgerald
SMEs to face new research costs under MIFID II
14 December 2017 | Frankfurt | Reporter: Zsuzsa Szabo
Research services for SMEs will no longer be free of charge when MiFID II comes into force on 3 January 2018
Hedge funds in sprint finish for record-breaking returns in 2017
14 December 2017 | London | Reporter: Drew Nicol
Hedge funds are on track for their best annual revenue since 2013 with average returns of 7.7 percent, according to eVestment research