21 April 2017
New York
Reporter: Stephanie Palmer

BNY Mellon suffers Q1 blip


BNY Mellon’s securities lending revenue hit $49 million in Q1 2017.

This was down from the previous quarter’s revenue of $54 million, and also a marginal decrease on Q1 2016, which saw securities lending revenue of $50 million.

Asset servicing fees for Q1 2017 overall reached $1.06 billion, a marginal decrease on the $1.07 billion seen in the previous quarter.

This is a 2 percent increase on Q1 2016, which saw asset servicing fees totalling $1.04 billion.

In total, investment services fees totalled $1.829 billion, a 3 percent increase on $1.774 billion earned in Q4 2016. This is also a 4 percent increase on the total investment services fees recorded in Q1 2016, which totalled $1.765.

According to BNY Mellon, the increases reflect net new business, including growth of its collateral optimisation solutions. The results are also partially attributed to higher money market fees, net new business and higher equity market values.

BNY Mellon saw record breaking levels of assets under custody and/or administration in Q1 2017, reaching a total of $30.6 trillion.

The record high reflects a 5 percent increase on assets under custody and/or administration in Q1 2016, which reached $29.1 trillion, and a 2 percent increase on the figure for Q4 2016, which reached just shy of $30 trillion.

New custody business for Q1 2017 reached a preliminary total of $109 million. Although this is down on the previous quarter, which saw new custody business of $141 million, it is a significant increase on Q1 2016, in which new custody business totalled $40 million.

Gerald Hassell, chairman and CEO of BNY Mellon, said: “Our performance in the quarter benefited from our investments in capabilities that address growing client demands in areas such as collateral optimisation for both the buy and sell side and middle-office services for asset managers.”

“In addition, our overall asset management flows improved to their highest levels since 2014 and assets under custody and/or administration hit a record level.”

He added: “The progress we are making in digitising our firm and harnessing emerging technologies should result in an increasingly distinctive client experience, new sources of value for our clients and reduced structural costs for our company. We see ourselves as being an investments platform company that integrates the best of what we and others have to offer for the benefit of our clients and the marketplace.”

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