21 October 2016
New York
Reporter: Mark Dugdale

Sec lending revenue boosts BNY Mellon’s Q3

BNY Mellon earned asset servicing fees of $1.1 billion in Q3 2016, thanks in part to a year-over-year increase in securities lending revenue.

Securities lending revenue reached $51 million in Q3 2016, which was down slightly sequentially but up year-over-year. BNY Mellon earned $38 million in Q3 2015.

BNY Mellon’s 1 percent increase in asset servicing fees also reflected higher money market fees. It was partially offset by the unfavourable impact of a stronger US dollar and the downsizing of its UK transfer agency business.

Assets under custody and/or administration at the bank increased by 7 percent to $30.5 trillion in Q3, with new mandate wins in asset servicing estimated to be worth $150 billion over the period.

BNY Mellon was selected by Israeli insurance company Clal Insurance in September to provide global custody and cash management services for its assets, totalling over $7 billion.

The bank also won a mandate in July to provide fund administration and collateral management services to the German-domiciled funds of Nomura Asset Management.

The German funds have €2 billion in assets under management, and are under administration at BNY Mellon’s German affiliate, BNY Mellon Service KAG.

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